Download - Employee Relations and Industrial Disputes
-
7/30/2019 Employee Relations and Industrial Disputes
1/42
krishna 1
SHRM-3
Employee Relations
Reasons for disputes
Resolving resolving disputesTrade Unions and Recent Trends in Trade Unions
-
7/30/2019 Employee Relations and Industrial Disputes
2/42
krishna 2
Learning Objectives
To identify major organizational factors and processes that
adversely affect employee relations.
Understand the meaning of terms like discipline ,employee
grievance,job stress. Understand the nature of employment relations and the
place of Unions in the organizations.
Know the importance of Union recognition agreement and
the elements of Collective Bargaining (CB). Familiarize yourself with legal approaches to dealing with
problems of indiscipline and workplace harassment.
-
7/30/2019 Employee Relations and Industrial Disputes
3/42
krishna 3
Employee Relations
Relationship among employees provides the context in
which
Organizational roles assigned to members are performed
Team spirit inculcated
Expectations clarified
Conflicts resolved
Shared norms of behaviour developed.
If organizations have to move towards excellence,
maintenance of harmonious relationship among employees
across the vertical and horizontal levels of the organization
is a necessary condition.
-
7/30/2019 Employee Relations and Industrial Disputes
4/42
krishna 4
Employee RelationsHealthy ER Unhealthy ER
a. Open communication
channelsall directions.
b. Delegation
c. Autonomy
d. Participative
management
e. Self managed teams
f. Quality circles
g. Facilities at work place
a. No communication orOnly top downcommunication
b. Authoritative/Autocraticleadership
c. Only duties
d. Too much power at thetop
e. Unfriendly andunhealthy workenvironment
f. Lack of facilities
-
7/30/2019 Employee Relations and Industrial Disputes
5/42
krishna 5
Employee Relations
Reason for most industrial problems like strikes, grievances,
violence, disputesdue to pooremployee relations.
Managers must have good communication skills,knowledge of local cultureand language, empathy,knowledge of law, and counseling skills.
-
7/30/2019 Employee Relations and Industrial Disputes
6/42
krishna 6
Reasons for dispute
a. Wage demands- . Inflation
Agreement reached in another company. Includes bonusincentives and otherallowances,
Bonus
General validity of wage agreementsthree years
b. Union rivalry :
Multiple unions. Lead to inter-union rivalries. Power ofthe union and ego of the union leaders become the majorissue.
Resultno harmonylow productivitylossesclosedown.
-
7/30/2019 Employee Relations and Industrial Disputes
7/42krishna 7
Reasons for dispute
c. Government interference Mandatoryto pay bonus.
Whom to hire???
d. Political interference- Major trade unions are affiliatedto political parties. When Trade Unions get politicized
Ideology and issues get divided on party lines.
Unions multiply causing Inter-Union rivalry.
Some Unions refuse to sign any agreementsand somelong term agreements.
Organization's objectives and goals take a backseat Political parties and leaders show their strength by
organizing bandhs / strikes and spreading fear.
-
7/30/2019 Employee Relations and Industrial Disputes
8/42krishna 8
Reasons for dispute
e. Multiplicity of labour laws - About 108 acts- mostlabour legislated country- Result : confusion,ambiguity, contradictions.
f. Inter state/ religion / ethnic rivalry
g. Discipline/ Indiscipline- Conformity by the employees,to the expectations of management, in terms of standardsof behaviour and performance, code of conduct.
Desirable actions and behaviour made known to them
through formal, informal, written or verbalcommunication.
Disciplinary action
-
7/30/2019 Employee Relations and Industrial Disputes
9/42krishna 9
Discipline, Grievances, and Dismissal
Discipline without PunishmentA multistage disciplinarytechnique.
(a) Oral reminders of the violated rule (b) written reminders paid one-day leave (d) if the behavior is not corrected,
dismissal.
Grievance - A complaint that an employee lodges against anemployer.
Regarding wages, work hours, or some condition ofemployment like supervisorybehaviour.
http://images.google.co.in/imgres?imgurl=http://www.gifted.uconn.edu/nviews/images/discipline.gif&imgrefurl=http://www.gifted.uconn.edu/nviews/nvam0604.html&start=10&h=911&w=315&sz=11&tbnid=MLhEiRSJZScGnM:&tbnh=147&tbnw=51&hl=en&ei=PdSzRvv9EKX8gQPPjfCdBA&sig2=1rJGcKwdyE6P0IinIq-m4w&prev=/images%3Fq%3Ddiscipline%26gbv%3D1%26svnum%3D10%26hl%3Den%26sa%3DG%26ie%3DUTF-8%26oe%3DISO-8859-1 -
7/30/2019 Employee Relations and Industrial Disputes
10/42krishna 10
Get the Facts
Obtain the Reason for the infraction
Audit the records
Pinpoint Consequences
Identify the Type of infraction before taking remedial
steps
FRACT Model
A multi-step procedure for assessing the need for
discipline:
-
7/30/2019 Employee Relations and Industrial Disputes
11/42krishna 11
Disciplinary Action
Industrial Employment (standing orders) Act isapplicable. The punishment can be awarded accordingto the specification of the standing orders. Among the
penalties are:
A. Warning,Fine , Withholding increments
B. Demotion, Suspension , Dismissal
-
7/30/2019 Employee Relations and Industrial Disputes
12/42krishna 12
-
7/30/2019 Employee Relations and Industrial Disputes
13/42
krishna 13
Reasons for dispute
h. Unfair labour practices - Unwillingness/ attitude of themanagement to talk to workers representatives/TU or
refer to arbitration.
To recognize Trade Union. Not delegating or giving authority to managers to
negotiate with Trade Union.
Unfair /biased stand of the management representatives
during negotiations
-
7/30/2019 Employee Relations and Industrial Disputes
14/42
krishna 14
Industrial Disputes Act 1947Unfair labour Practices
Restraining, preventing, threatening workers fromorganizing, forming, joining unions or similar activities forcollective bargaining and protecting their rights.
Threatening a lockout or closure, if TU is organized.
Granting wage increase at crucial periodsto sabotage theUnity or Union plans.
To dominate, interfere, support or contribute to any TU.
To establish employer-sponsoredTU of workmen.
Favouring one TU when many Trade Unions are trying toorganize their workers.
-
7/30/2019 Employee Relations and Industrial Disputes
15/42
krishna 15
Industrial Disputes Act 1947unfair labour Practices
Victimization. To discharge , dismiss or discriminate - workers for
organizing fellow workers or joining the Union.
Changing seniority ratingDenying promotion for union
activities. To abolish work of regular natureTo give the work to
contractors to break the strike.
To transfer workers under the guise of management policy.During legal strikes
(a) To insist on workers individually signing agreement
(b) To sign a good conduct bond as a precondition toresuming work.
Being partial to one set of workers.
-
7/30/2019 Employee Relations and Industrial Disputes
16/42
krishna 16
Industrial Disputes Act 1947unfair labour Practices
To keep workers in temporary pay rolls permanently.
To discriminate worker/s for filing charges or testifyingagainst an employer during enquiry proceedings.
To recruit workers during a legal strike.
To indulge in acts of force or violence.
To refuse to bargain collectively, in good faith withrecognized TUs.
Proposing or continuing a lockout deemed to be illegalunder IDA 1947.
Falsely implicating workers in criminal cases-concoctevidence
Appointing one sided committees/ commissions ofenquiry.
-
7/30/2019 Employee Relations and Industrial Disputes
17/42
krishna 17
Industrial Disputes Act 1947Unfair labour Practices
Failure to implement award, settlement or agreement.
To indulge in acts of violence or force.
Strike in Maruthi Udyog -2001- management got
undertaking of good behaviour from employees.Terminated the services of 59 employeesdid not paysalary to striking workers for 3 months.
Strike by TN Govt employees -2004-05
Striking work without giving sufficient notice to
employers. Stopping willing workers from carrying theirduties.- JJ made them sign good behaviour agreement sacked many.
-
7/30/2019 Employee Relations and Industrial Disputes
18/42
krishna 18
Unfair practices by labour / TU State Transport workers on flash strikeleaving
passengers and vehicles midway- causing traffic jams.
Power Corporation employeesflash strikedisconnecting powerHeavy damagescostly equipment,
people stuck in lifts and elevators, blood stored in blood
banks .
Municipal corporation workers.
-
7/30/2019 Employee Relations and Industrial Disputes
19/42
krishna 19
Result of Industrial Disputes
Loss due to low productivityaffects organization andnation.
Loss due to violence and destructionaffects organization,society and nation.
Loss of life , income and peaceaffects managementand employees
Animosity and strained relationship among management,society and employees- Affects all concerned and the
nation. Industrial disputes affect all stakeholdersManagement,
Employees, Economy, Society, Nation
-
7/30/2019 Employee Relations and Industrial Disputes
20/42
krishna 20
Resolving disputes
Collective bargaining
Code of discipline
Grievance procedure
Arbitration
Conciliation
Adjudication
Consultative machinery
-
7/30/2019 Employee Relations and Industrial Disputes
21/42
krishna 21The Bargaining Process: Overview
Good-Faith
Bargaining
Preparing forNegotiations
ConductingNegotiations
-
7/30/2019 Employee Relations and Industrial Disputes
22/42
krishna 22
Resolving disputes
Collective bargaining: Trade unions can maintain andimprove their members terms of employment
CB is a trade union initiated process.
Viewed as a tool for resolving industrial disputes.
Collective Bargaining
Helps increase economic strength of bargaining parties.
Minimizes re-occurrence of disputes.
Lays down rules and norms for dealing with labour.
Helps usher in democratic principles into industrialworld.
-
7/30/2019 Employee Relations and Industrial Disputes
23/42
krishna 23
CB - three perspectives.
1. CB as as a process of social change- Brings a change inbalance of power between employers and employees.Opens doors for better pay, welfare, security and liberty toindividual members.
2. CB as peace treaty- between the conflicting parties:Peace is temporary. Both parties would like to come forward
with new and previously unsatisfied demands.
3. As a system of industrial jurisprudence :Civil rights inthe industryManagement has to deal with labour by rules
than by arbitrary decisions. Basic interests of employees and employers are protected.
4. Participative management- Participation in decisions thataffect their work life - Improves job involvement and jobsatisfaction. Industrial democracy.
-
7/30/2019 Employee Relations and Industrial Disputes
24/42
krishna 24
-
7/30/2019 Employee Relations and Industrial Disputes
25/42
krishna 25
Managers have to.
Interpret situations and decide when to open negotiations.
Know to prioritize issues.
Decide on right management representatives Ensurenegotiation team is a combination of organizing
skills , knowledge, human touch, integrity, tact andtoughness.
Examine possibility of a strike and ways of handling it.
Build inventory and ensure associates have adequate stock
Decide how closely they will follow the agreement.
.
C B--- Managers
-
7/30/2019 Employee Relations and Industrial Disputes
26/42
krishna 26
The Bargaining Process
1. Prepare for negotiations.
2. Develop strategies3. Conduct negotiations
4. Formalize agreement
Pressures on bargaining parties:
Legal requirementsStrikesForms of ProtestLockouts
Boycotts
-
7/30/2019 Employee Relations and Industrial Disputes
27/42
krishna 27
CB Process-1. Preparing for negotiations
A. From managements side :
Prepare specific proposals for alterations in contract.
Determine budget and size of economic package companywants to offer.
Prepare data and other necessary facts and figures. Prioritize itemsas per importance and urgency.
Identify suitable site for negotiation.
B. From employees / unions side :
Financial position of the company and its ability to pay. Attitude of mgmt towards various issues-information of
other companys attitudes and results.
Attitudes and desires of employees.
Identify suitable site for negotiation.
-
7/30/2019 Employee Relations and Industrial Disputes
28/42
krishna 28
CB process-Identifying Bargaining Issues
1. Wage related issues: basic wages, cost of livingadjustment, OT rates etc.
2. Supplementary economic benefits: pension plans, paidholidays, retrenchment pay etc
3. Institutional issues : rights and duties of employers,employees, Unions etc
4. Administrative issues : Seniority, discipline, training ,
job security etc
-
7/30/2019 Employee Relations and Industrial Disputes
29/42
krishna 29
CB Process.2. Negotiating Each side presents initial demandsnegotiations may go
on for days.
It is a Psychological war each one trying the others nerveand strength.
In spite of sincerity negotiations may break down. Restarting becomes more difficult.- Ideal to give some gap.
Ratification ( confirming )of the agreement : Bothparties go back to their people take a consent.
All agreements and contracts have to be written andlegalized.
Administration of the agreement : Agreements have tobe implemented and within the time frame.
-
7/30/2019 Employee Relations and Industrial Disputes
30/42
krishna 30
CB Process.2. Negotiating
Dos.
Do seek more (or offerless ) than you plan toreceive and give.
Negotiate in private. Create a win-win situation
Start with easy issuesappear it is only give
and no take situation. Keep alternatives ready
and open.
Help of police/govt if astrike seems likely
Use good PR
Donts Dont open allyour cards (offer ) first.
Say no unless you are100% sure.
Violate confidence.
Settle too quickly.
Let union go straight totop and/or
let top management come tonegotiations table.
Rush to media for help orwith statements.
-
7/30/2019 Employee Relations and Industrial Disputes
31/42
krishna 31
Environmental Factors affect CB.
1. The type of bargaining structure
One company dealing with a single union
Several companies dealing with a single union.
Several unions with one company Several companies with several unions
2. Union management relationships.
May be co-operative or non co-operative Cooperative spirit facilitates collective bargaining.
Non -cooperative spirit slows down or affects theprocess.
-
7/30/2019 Employee Relations and Industrial Disputes
32/42
krishna 32
Grievances
Grievance is employees dissatisfaction or feeling ofinjustice relating to her/his employment relationship.
Conditions that give rise to grievances Violations of the terms and conditions of employment
Violation of law -Violation of company rules
Change in working conditions or practices
Violation of health / safety standards. When employee files a grievance it has to be resolved as
per procedure.
-
7/30/2019 Employee Relations and Industrial Disputes
33/42
krishna 33
Arbitration
Third-party( neutral) who resolves a labor dispute by issuing
a final decision in the disagreement
Arbritator/sstudies the situation, listens to both parties andmakes recommendations that are binding on both parties.
Arbitration is effective as it results in settlement.
If one party feels arbitrator was heavy handed may
accept decision but conflict will resurface.
-
7/30/2019 Employee Relations and Industrial Disputes
34/42
krishna 34
Arbitration
Merits
Established by the parties &
decision is acceptable to
both.
Delays are cut down and
decisions are quick.
Number of disputes are few-
Decisions are well studied
and just.
Demerits
Expensive.
Expenses need to be shared
by labour and Mgmt.
Selection of arbitrator has to
be done carefully- may go
wrong.
Tendency torush forarbitrationis not healthy
sign of IR
-
7/30/2019 Employee Relations and Industrial Disputes
35/42
krishna 35
Procedures for arbitration
Arbitration & Industrial Disputes Act 1947- Section -10
If both parties agree to refer it to arbitration - they do so inwritten agreement.
Generally Labour Union takes the initiative and notifiesthe management.
Select the arbitrator jointly - study previous decisions.
After arbitrator agrees venue and date is decided.
Sufficient time given to both parties to prepare.
Proper data and information/ evidence given to arbitrator.
After hearing sufficient time for arbitrator to study andgive decisions.
-
7/30/2019 Employee Relations and Industrial Disputes
36/42
krishna 36
Resolving disputes
Mediator: Third party in a labor dispute . Meets
with one party and then the other
To suggest compromise solutions OR
To recommend concessions from each side that will lead toan agreement
Conciliator : ( Mediator ) - Parties brought together beforea third party to persuade them to arrive at an agreement.
Allowed by IDA 1947Section 4 .
Conciliation can be by one person or group of two or three.
Government can appoint the person/s.
-
7/30/2019 Employee Relations and Industrial Disputes
37/42
krishna 37
Resolving disputes -Duties of Conciliation officer
To
Mediate and bring about fair settlement between parties.
Hold conciliatory proceedings. Investigate disputes.
Send reports and memorandum of settlement to appropriateGovt bodies.
Report to Govt bodies (within 14 days from the date ofstarting the proceedings). Informing the steps takenincase no settlement is arrived.
No strike or lockout when conciliation is in progress.
Conciliator has no power to forceany party.
Can work separately with parties, explain positions to eachand help in search of solutions.
-
7/30/2019 Employee Relations and Industrial Disputes
38/42
krishna 38
Resolving disputes-Adjudication Adjudication- Mandatory settlement of an industrial
dispute by a labour court or tribunal .
The verdict is binding on both parties.
Section 10 of the Industrial Disputes Act 1947 - reference
to Labour court or tribunal. Lays down rules regarding thecomposition and powers of labour courts and tribunals.
Problems Time taken for (delay) in decisions.
Expensive for individual worker.
Verdicts make parties involved too strong or too weakduring future disputes.
Deprives Trade Unions of their strengths.
-
7/30/2019 Employee Relations and Industrial Disputes
39/42
krishna 39
Resolving disputes- Consultative Machinery
Consultative Machinery Set by Government to resolve conflicts.
To bring parties together for mutual settlement in a spiritof co-operation and goodwill.
Operates at plant, industry, state and national level. Labour Advisory Boardsat State and National level.
Indian Labour Conference ( ILC)
Standing Labour Committee ( SLC )
These are tripartite in naturerepresenting GovernmentLabour and Management.
-
7/30/2019 Employee Relations and Industrial Disputes
40/42
krishna 40
Trade Unions
-
7/30/2019 Employee Relations and Industrial Disputes
41/42
krishna 41
Why union growth has suffered
Demographics
Jobs: location/industry/occupation
Wage premium grew in 1970s
Increase in Education/knowledge levels Globalization
Lack of worker interest
Lack of trust in union leaders and their organizing efforts
-
7/30/2019 Employee Relations and Industrial Disputes
42/42
Recent Trends in TU
ChangingRelationships
Management
LaborCooperation
ConcessionaryBargaining
New Forms ofCooperation