module 4 hrm - industrial relations
TRANSCRIPT
Industrial Relations
Meaning The relationship between employees or
trade unions and employers
Objectives of industrial relations
Maintain sound and harmonious relations between employees and employers Safeguard the interests of labour as well as management Raise productivity Avoid industrial conflict Establish and maintain industrial democracy Reduce tendency of higher labour turn over Eliminate strikes, lockouts & gheraos Establish government control over plants which are running on loss Encourage and develop trade unions Ensure healthy and balanced social order
Approaches to IR
Psychological Approach Sociological approach V.V.Giri approach (late president of India
– mutual settlement of disputes, collective bargaining)
Gandhian approach (based on fundamental principles of truth, non violence & non possession)
HRD approach
Approaches to IR
Unitary approachIR is grounded under in mutual co-
operation, individual treatment, team work & shared goals.
Unions cooperate with the management and the management’s right to manage is accepted because there is no “wethey” feeling.
Approaches to IR
Pluralistic Approach-Organizations as a collection of competing intersts, where the management’s role is to mediate among the different interest groups
- Trade unions as legitimate representatives of employee interests
-Stability in IR as the product of concessions & compromises between management and unions
Approaches to IR
Marxist Approach- Industrial conflicts has a wider meaning- Conflict arise not only out of rift between
management and workers but also because of the divisions in the society
- Industrial conflict is equated to social and political intersts
Parties to IR
Employee Employee
association Government
Employer Employer
Associations Courts & tribunals
Role of Government
Till 19th century governments followed laissez faire policy – IR was left to manages & workers
Towards the end of 19th century the approach changed
Government setup wage boards, labour courts, tribunals & enacted laws
Role of employers
Creating & maintaining employee motivation
Obtaining commitment from work force Establishing mutually beneficial channels
of communication Achieving higher levels of efficiency Negotiating terms & conditions of
employment Sharing decision making with employees
Role of trade unions
Representing employees in collective bargaining
Developing machinery for the avoidance of disputes
Providing information on employee relations & give advise
Representing members on national issues
Industrial disputes
Any conflict between employees and employers, between employers and employers, between employees and employees.
Causes of disputes
Wage demandsUnion rivalryPolitical interferenceMultiplicity of labour lawsUnfair labour practices(unwilling to discuss disputes, to recognize a particular trade union, unfair negotiations, lack of power to the employees, unfair disciplinary actions, abolishing works of regular nature)
Effects of industrial disputes
Strikes ( Economic, sympathetic, general, sit down, slow down, lightening, hunger)
Lock outs Gherao Picketing Boycott
IR Machinery
1. Work committees (when more than 100 workers are employed)- Joint management council
- Shop council (manufacturing & mining industries – 500 or more)- Joint council
2. Grievance redresal procedure3. Tripartic bodies (indian labour conference,
standing labour committes, wage boards)4. Grievance settlement authority
Conciliation officer Conciliation board Courts of inquiry- Labour courts, Industrial tribunals,
National Tribunals
Settlement of disputes
Collective bargaining Code of discipline Arbitration Conciliation
Collective bargaining
Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs.
Features
Group & collective actionStrengthContinuous processFlexibleVoluntaryDynamic
Power relationshipBipartite processTwo party process
Approaches to Collective bargaining
As a process of social change As a peace treaty between conflicting
parties Industrial Jurisprudence
Objectives
Maintain cordial relationships Settle disputes or conflicts Protect the interests of the workers Ensure participation of trade unions
Types Distributive (distribution of surplus) Integrative (win – win) Attitudinal structuring Intra-organizational
Process
1. Preparing for negotiations- Employer1. Prepare specific proposals for changes2. Determine the general size of the economic package3. Prepare statistical displays & supportive data4. Prepare bargaining bookEmployees1. Financial position of the company & its ability to pay2. Attitude of management towards various issues3. Attitude & desires of employees
Process
2. Identifying bargaining issues- Wage related issues- Supplementary economic benefits- Institutional issues- Administrative issues
Process3. Negotiating4. Reaching the agreement5. Ratifying the agreement6. Administration of agreement
Arbitration
Refers to a procedure in which a neutral third party studies the dispute, listen to both the parties & collects information, makes recommendations which are binding on both the parties.
Arbitration & Industrial Disputes Act, 1974
Effectiveness of Arbitration:
Establishes by parties themselves Delays are cut down & settlements are
speeded up
Expensive judgment depends on arbitrator Too much arbitration – not a sign of
healthy IR
Conciliation
The process by which representatives of workers & employers are brought together before a third party with a view to persuade them to arrive at an agreement by mutual discussion.
The industrial disputes act 1947 provides for the appointment of conciliators.
It may be one person or a group
Duties of the conciliator
Mediator Hold conciliatory proceedings Investigate the dispute Send a report & memorandum of
settlement to appropriate government To send a full report to the appropriate
government setting for the steps taken in case no settlement is arrived at.
The conciliator shall submit the report within 14 days from the date of commencement
The act prohibits any kind of strikes during the time of conciliation
The conciliator has no powers to force settlement
Adjudication
A mandatory settlement of an industrial dispute by a labour court or a tribunal
Section 10 of Industrial disputes act
Disputes are generally referred to adjudication on the recommendation of the conciliation officer.
The government has discretionary powers to accept the recommendation or not
Criticized because of the delay involved
Future trends in IR
Globalization & Privatization Decentralization of IR Introduction of corporate culture New actors and the emerging dynamics Significant shift from strikes to law suits