CHAPTER : 08EMPLOYEE RELATIONS AND COLLECTIVE BARGAINING

DEFINITION AND CONCEPT OF INDUSTRIAL RELATIONSIndustrial relations can be defined as the relationship between the management and the employees of an industry.

The state and the legal system also have a role to play in the maintenance of a conflict-free industrial environment

DIFFERENT ROLES IN INDUSTRIAL RELATIONSIndustrial development in India led to the emergence of trade unions.The parties who play an important role in industrial relations are:EmployeesTrade UnionsThe ManagementThe Government

OBJECTIVES OF INDUSTRIAL RELATIONSTo safeguard the interests of the labor and the managementPreventing industrial conflicts and increasing productivityTo improve the standard of living of the average worker To improve bargaining capacity of the workers through trade unions

INDUSTRIAL DISPUTES PREVENTION MACHINERYThe various means of preventing industrial disputes are:Worker ParticipationEmployee Grievance Redressal MachineryVoluntary ArbitrationConciliationCourt of EnquiryTripartite BodiesAdjudication

CONCEPT OF COLLECTIVE BARGAININGCollective bargaining takes place when a number of work people enter into a negotiation as a bargaining unit with an employer with the objective of reaching an agreement.

FEATURES OFCOLLECTIVE BARGAINIGGroup activityActivity in LevelsFlexibilityWin-win situationBuilds RelationshipsAn Art and a Science

OBJECTIVES OF COLLECTIVE BARGAININGTo provide an opportunity to the workers to voice their employment related problemsTo resolve all conflicts and disputes in a mutually agreeable mannerTo resolve issues through third party involvement To enhance the productivity by preventing strikes, lock-outs etc.

COLLECTIVE BARGAINING PROCESSPreparation for NegotiationUnderstanding of problem at hand by both the partiesShould possess all the required facts and figuresNegotiationSubmission of the demands of the trade union to the managementInvolvement of a third party may take placeContract administrationThe terms of the contract and the agreement reached is widely circulated among the employees

CONCEPT OF WORKERS` PARTICIPATION IN MANAGEMENTIt aims at providing an opportunity to the workers to take part in the management decision-making.The degree of influence that workers are allowed to exercise are:Informative participationConsultative participationAssociative participationAdministrative participationDecisive participation

Work CommitteesIt comprises of representatives from both the management and the workersBasic objective is to promote harmonious relations in the workplace. Joint Management CouncilsIt consists of representatives of workers and the managementBasic objective is to promote cordial industrial relations, welfare facilities to workers, educating workers etc.Examples are BHEL, TISCO and Indian Aluminum Company and Aluminum Industries of Kundarr.

Recent DevelopmentsESOPS Equity shares to be owned by employees

Workmen Directors on Board

CONCEPT OF GRIEVANCEA grievance is a sign of an employee's discontent, either with the job or the organization.

The gap between employee expectations and organizational rewards normally leads to a grievance.

CAUSES OF GRIEVANCEDissatisfaction with the compensationDenial of promotion or transferDissatisfaction with the supervisors / peersUnhealthy/ / harmful working conditionsMismatch of job assignmentsDenial of leave and other benefits

NEED FOR A GRIEVANCE REDRESSAL PROCEDUREIt keeps a check on arbitrary actions.It helps to maintain harmonious industrial relationsIt helps in upward communicationIt helps the management to win the trust and confidence of the employees

STEPS IN A GRIEVANCE REDRESSAL PROCEDUREGrievant EmployeeForemanSupervisorDepartmental RepresentativesHead of the DepartmentDepartmental RepresentativesGrievance Committee ManagerCommittee of Union & Management Representatives Voluntary ArbitrationN.S.N.S.N.S.N.S.N.S.N.S.N.S. Not SatisfiedConveys Verbally

CONFLICT RESOLUTIONAvoidance AccommodatingWin/LoseArbitrationMediationCompromisingProblem Solving

DISCIPLINARY ACTION

Forming and Issuing a charge sheetConsidering the explanationIssuing the notice of enquiryHolding a full-fledged enquiryFinal order of actionFollow-up

Types of PunishmentsVerbal WarningWritten WarningDemotionPay CutCompulsory RetirementRemovalDismissal