web of rules
TRANSCRIPT
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Assignment onWeb of Rules and Ideologies
of Industrial Relations
&
Trade Unions
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RULE-MAKING AND INDUSTRIAL RELATIONS
The network of rules is one of the outputs of industrial relations. These are
considered the centre of attention in IR system. The rules are broadly
grouped into 3 categories:
Rules governing compensation in all its forms,
The duties and performance expected from workers, including rules of
discipline for failure to achieve these standards, and
Rules defining the rights and duties of the workers.
The actors set rules, these may be : trade unions and workers representing
one category, employers, managers and their associations representing 2nd
category and government in 3rd
category constituting the civil servants
concerned with administration of labour matters .
SOURCES OF RULES
These rules originate from different sources such as the following and areshaped by their legal political, economic, social, and historical context:
Constitutional and legislative framework. It is important for both
managements and trade unions to abide by the Constitution, the legislation,
and gazette notifications. International Labour Organization is also
responsible for these rules which reflects that universal and long lasting
peace can be established only if it is based on social justice.
Single party: Unilateral. Employer calling the shots can breed
exploitation. In places here the demand for labour is much more than its
supply; employers can go out of their way to befriend labour. But India is
unlikely to get into such a utopian situation (from labour's point of view) in
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the foreseeable future. Therefore, unilateral rule-making is anathema from
labour's point of view
Two parties:Collective bargaining. Here both the parties of employersand the employees( or their unions) set rules by collective agreement.
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.
Three parties: tr ipar tite accords. Tripartism includes the government,
workers representatives and employers organization that consult each
other on matters of labour related issues.
In India 8 Industrial tripartite committees are created and these are non-
statutory in nature. Usually these are non-binding statements, except those
signed under Section 19 of the Industrial Disputes Act, 1947. Because of
their moralistic tone, they are usually adopted without much questioning .or
critical appraisal of implementation issues. Since their non-compliance
often entails zero consequences, they can be taken lightly.
Third party: arbitration/adjudication. India does not have a proper
system for arbitration. The government's discretionary powers make
adjudication processes suspect in some cases. It includes the process of
http://en.wikipedia.org/wiki/Trade_unionhttp://en.wikipedia.org/wiki/Collective_agreementshttp://en.wikipedia.org/wiki/Overtimehttp://en.wikipedia.org/wiki/Grievance_%28labour%29http://en.wikipedia.org/wiki/Grievance_%28labour%29http://en.wikipedia.org/wiki/Overtimehttp://en.wikipedia.org/wiki/Collective_agreementshttp://en.wikipedia.org/wiki/Trade_union -
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arbitration, conciliation and also the process of adjudication that includes
the National tribunal, Industrial tribunal and the labour courts.
Collective bargaining is considered the ideal form of rule- making,
provided there is balance of power between the parties.
Grey areas: These are areas where there are no fixed rules. Union
recognition is one such area. The rules provide for cooperation and conflict
and lay down the policies, procedures, and practices concerning work place
relations.The fundamental nature of employment or industrial relations is also
influenced by the structural conditions in which managements and
workers/their trade unions find themselves within a society.
ROLE OF GOVERNMENT
Today industrial relations in India stand highly regulated by State. The
Directive Principles of State Policy place on the Government the
responsibility of securing by legislation or economic organization or by
any other way, to all workers, industrial or otherwise, work, living wages,
conditions of work ensuring a decent standard of life, equal pay for equal
work for both men and women, education, human conditions of work,
maternity relief, public assistance in case of unemployment, old age,
sickness, disablement and participation of workers in management..
Part IV Directive Principles of State Policy:
The following directive principles are important in context of Industrial
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relations.
Article 39 {Certain pr inciples of pol icy to be foll owed by the State}
The State shall, in particular, direct its policy towards securing -
a. that the citizen, men and women equally, have the right to an adequate
means of livelihood;
b. that the ownership and control of the material resources of the
community are so distributed as best to subserve the common good;
c. that the operation of the economic system does not result in the
concentration of wealth and means of production to the common
detriment;
d. that there is equal pay for equal work for both men and women;
e. that the health and strength of workers, men and women, and the tender
age of children are not abused and that citizens are not forced by
economic necessity to enter avocations unsuited to their age or strength;
f. that children are given opportunities and facilities to develop in a healthy
manner and in conditions of freedom and dignity and that childhood andyouth are protected against exploitation and against moral and material
abandonment.
Article 39A{Equal justice and free legal aid}
The State shall secure that the operation of the legal system promotes
justice, on a basis of equal opportunity, and shall, in particular, provide free
legal aid, by suitable legislation or schemes or in any other way, to ensurethat opportunities for securing justice are not denied to any citizen by
reason of economic or other disabilities.
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Article 40 {Organisation of vil lage panchayats}
The State shall take steps to organise village panchayats and endow them
with such powers and authority as may be necessary to enable them to
function as units of self-government.
Article 41 {Right to work, to education and to public assistance in certain
cases}
The State shall, within the limits of its economic capacity and development,
make effective provision for securing the right to work, to education and to
public assistance in cases of unemployment, old age, sickness and
disablement, and in other cases of undeserved want.
Article 42 {Provision for just and human conditions of work and
materni ty reli ef }
The State shall make provision for securing just and humane conditions of
work and for maternity relief.
Article 43 {L iving wage, etc., for workers}
The State shall endeavor to secure, by suitable legislation or economic
organisation or in any other way, to all workers agricultural, industrial or
otherwise, work, a living wage, conditions of work ensuring a decent
standard of life and full enjoyment of leisure and social and cultural
opportunities and, in particular, the State shall endeavour to promote
cottage industries on an individual or co-operative basis in rural areas.
Article 43A{Parti cipation of workers in management of industr ies}
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The State shall take steps, by suitable legislation or in any other way, to
secure the participation of workers in the management of undertakings,
establishments or other organisation engaged in any industry
BASIC CONCEPTS AND VALUES
The basic concepts and values that govern sound industrial relations are:
equity and fairness, power and authority, individualism and collectivism,
and integrity, trust, and transparency. These concepts and values are kept
in mind while developing the rules:
Equity and Fairness: Equity refers to equal treatment to one and all
under comparable circumstance. Equity and fairness are used
synonymously in industrial relations.
The concept of fairness is an objective when one applies a technical
yardstick like market forces or job evaluation. The concept of fairness is
utilitarian when one goes by what the majority accepts .The notion of
fairness becomes relative when one considers- - whether or not -one is
getting a fair share of pay in relation to what others with similar
qualifications and experience are receiving.
...Power and Authority: Power is the ability to influence, impose, or
control. It implies. the use of force. Power may emanate from six major
interrelated aspects:
- The - power to reward
- Power to coerce others i.e. power to punish
- Position power due to the position or status of the person
- Reference power due to personal attributes i.e. power to influence others
to satisfy ones needs
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- Expert power due to one's access to information, knowledge, or
experience
- Associational power through membership in trade unions, employers
organizations/ chambers of commerce, networking/ coalitions, etc.Authority is the right to expect and command obedience.
----- Individualism and Collectivism: The fundamental basis of a
democratic society is the freedom of the individual. In an employment
relationship, collectivist basis may negate or limit an individual's freedom.
Collectivism helps an individual to be heard. Ex- the grievances of
individual employees are not heard by the management but collectively
when they are members of some trade union they can put forth their needs
and force the management to satisfy them.
--------An individual should have the right to join a trade union
(Collectivism). Likewise he or she should have the right not to join a union
(Individualism).
Integrity, Trust, and Transparency: Integrity is adhering to what is
professed. This can be promoted by efforts to bridge the gap, if any,
between what is said and what is done or walk the talk and talk the walk.
Trust is established between and among people.
Transparency is promoted through sharing of information, openness in
communication, and willingness to explain and reason out the motives
behind decisions and actions. For an organization to work effectively thesevalues and concept are very important.
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Ideologies of Industrial Relations
Industrial relations scholars have described three major frameworks of
perspectives which contrast in their understanding and analysis of
workplace relations. These are:
Unitary Perspective
In unitarism, the organization is perceived as an integrated and harmonious
system, viewed as one happy family. A core assumption of unitary
approach is that management and staff, and all members of the organization
share the same objectives, interests and purposes; thus working together,
hand-in-hand, towards the shared mutual goals. Furthermore, unitarism hasa paternalistic approach where it demands loyalty of all employees. Trade
unions are deemed as unnecessary and conflict is perceived as disruptive.
From employee point of view, unitary approach means that:
Working practices should be flexible. Individuals should be business
process improvement oriented, multi-skilled and ready to tackle with
efficiency whatever tasks are required.
If a union is recognized, its role is that of a further means of
communication between groups of staff and the company.
The emphasis is on good relationships and sound terms and conditions
of employment.
Employee participation in workplace decisions is enabled. This helps in
empowering individuals in their roles and emphasizes team work,
innovation, creativity, discretion in problem-solving, quality and
improvement groups etc.
Employees should feel that the skills and expertise of managers
supports their endeavors.
From employer point of view, unitary approach means that:
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Staffing policies should try to unify effort, inspire and motivate
employees.
The organization's wider objectives should be properly communicated
and discussed with staff.
Reward systems should be so designed as to foster to secure loyalty andcommitment.
Line managers should take ownership of their team/staffing
responsibilities.
Staff-management conflicts - from the perspective of the unitary
framework - are seen as arising from lack of information, inadequate
presentation of management's policies.
The personal objectives of every individual employed in the business
should be discussed with them and integrated with the organizationsneeds.
Pluralist Perspective
In pluralism the organization is perceived as being made up of powerful
and divergent sub-groups - management and trade unions. This approach
sees conflicts of interest and disagreements between managers andworkers over the distribution of profits as normal and inescapable.
Consequently, the role of management would lean less towards enforcing
and controlling and more toward persuasion and co-ordination. Trade
unions are deemed as legitimate representatives of employees. Conflict is
dealt by collective bargaining and is viewed not necessarily as a bad
thing and if managed could in fact be channeled towards evolution and
positive change.Realistic managers should accept conflict to occur. There
is a greater propensity for conflict rather than harmony.
They should anticipate and resolve this by securing agreed procedures for
settling disputes.
The implications of this approach include:
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The firm should have industrial relations and personnel specialists
who advise managers and provide specialist services in respect of
staffing and matters relating to union consultation and negotiation.
Independent external arbitrators should be used to assist in theresolution of disputes.
Union recognition should be encouraged and union representatives
given scope to carry out their representative duties.
Comprehensive collective agreements should be negotiated withunions
Marxist Perspective
This view ofindustrial relations is a by product of a theory of capitalist
society and social change. Marx argued that:
Weakness and contradiction inherent in the capitalist system would
result in revolution and the ascendancy of socialism over
capitalism.
Capitalism would foster monopolies.
Wages (costs to the capitalist) would be minimized to a subsistencelevel.
Capitalists and workers would compete/be in contention to win
ground and establish their constant win-lose struggles would be
evident.
This perspective focuses on the fundamental division of interest
between capital and labor, and sees workplace relations against this
background. It is concerned with the structure and nature of society and
assumes that the conflict in employment relationship is reflective of the
structure of the society. Conflict is therefore seen as inevitable and trade
unions are a natural response of workers to their exploitation by capital.
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Trade Union and Industrial Relations
Trade Union refers to a combination, whether temporary or permanent, to
regulate relations between:
- Workmen and workmen, or
- Workmen and employer, or- Employer and employer
And impose restrictive conditions on the conduct of a trade or business,and includes the federation of trade unions.
Objectives of Trade Union
Trade unions are formed to protect and promote the interests o
their members. Their primary function is to protect the interests o
workers against discrimination and unfair labor practices. Trade
unions are formed to achieve the following objectives:
- RepresentationTrade unions represent individual workers when they have a
problem at work. If an employee feels he is being unfairly treated,he can ask the union representative to help sort out the difficulty
with the manager or employer. Unions also offer their members
legal representation. Normally this is to help people get financial
compensation for work-related injuries or to assist people who
have to take their employer to court.
NegotiationNegotiation is where union representatives, discuss with
management, the issues which affect people working in an
organization. There may be a difference of opinion between
management and union members. Trade unions negotiate with the
employers to find out a solution to these differences. Pay, working
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hours, holidays and changes to working practices are the sorts of
issues that are negotiated. In many workplaces there is a formal
agreement between the union and the company which states that
the union has the right to negotiate with the employer. In these
organizations, unions are said to be recognized for collectivebargaining purposes.
Voice in decisions affecting workersThe economic security of employees is determined not only by the
level of wages and duration of their employment, but also by the
managements personal policies which include selection of
employees for lay offs, retrenchment, promotion and transfer. These
policies directly affect workers. The evaluation criteria for such
decisions may not be fair. So, the intervention of unions in such
decision making is a way through which workers can have their say
in the decision making to safeguard their interests.
Member services
During the last few years, trade unions have increased the range of
services they offer their members. These include:
o Education and training - Most unions run training courses for
their members on employment rights, health and safety and other
issues. Some unions also help members who have left school with
little education by offering courses on basic skills and courses
leading to professional qualifications.
o Legal assistance - As well as offering legal advice on
employment issues, some unions give help with personal matters,
like housing, wills and debt.
o Financial discounts - People can get discounts on mortgages,
insurance and loans from unions.
o Welfare benefits - One of the earliest functions of trade unions
was to look after members who hit hard times. Some of the older
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unions offer financial help to their members when they are sick orunemployed.