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Manifestations of conflict

Manifestation of Organized Group Conflict


Manifestations of Unions 1. Non-Cooperation to negotiate 2. Arguments 3. Hostility 4. Stresses and tension 5. Unwillingness to negotiate 6. Resentment 7. Absenteeism 8. Work-to-rule 9. Demonstration, Morcha, Gherao 10. Loss of Production 11. Strike Manifestations of Management 1. Unwillingness withholding 2. Termination 3. Demotion 4. Lay-offs 5. Lockouts

Manifestation of individual and Unorganized Conflict


Workers Unorganized supervision of efforts Intentional waste and inefficiency Labour Turnover Absenteeism complaints Instances of breaking of rules Strike Management 1. Autocratic 2. Over-strict discipline 3. Unnecessary firing 4. Demotion 5. Lay-offs 6. Lockout

1.

2. 3. 4. 5. 6.

Source: Kornhauser,A,Dubin and Ross, A.M., Industrial Conflict, McGraw Hill, 1954, p.14

Strikes
Section 2(q) of ID Act 1947 defines a strike as, a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal under a common understanding of a number of persons who are or have been so employed to continue to work or to accept employment y In this light strike postulates three main elements: 1. Plurality of workmen 2. Cessation of work or refusal to do work 3. Combined or concerted action
y

Typology of strikes
Strikes Primary Strike

Secondary Strike

Others

1. 2. 3. 4. 5. 6. 7. 8. 9.

Stay Away strike Sit-down stay-in strike Tool-down/Pen-down strike Go slow Work to rule Token or Protest strikes Lightening or Cat-call strike Picketing and Boycott Gherao

Sympathy Strikes

1. General 2. Particular 3. Political 4. Bandhs

Right to Strike: When are strikes justified?


The strike must be appropriate for attaining legitimate goals, consistent with subsequent industrial peace y The strike must take into account economic possibilities, keeping the public interest in view y The strike must be necessary in the light of facts and should be used as the last resort-after exhausting all other possibilities and procedures y The strike must be a fair right. It must not have the aim of destroying the opponent. More specifically: y It should be launched only for economic demands, such as basic pay, DA, increment, leave and other fringe benefits which are the primary objectives of a Trade union y The demands of workmen should be reasonable and legitimate so that there is a prima facie justification for the demandsThe demands should not be raised frivolously or for ulterior reasons y When existing facilities are summarily withdrawn or Provident fund is closed , a strike would be justified y If there is any unfair labour practice on the part of management a strike is justified y When there is no response from the management in spite of referring a demand and issuing a reminder, a strike is justified
y

Prevention of strikes
y 1.

2. 3. 4.

5. 6. 7.

If an optimal level of good industrial relation is to be developed and maintained , the incidence and frequency of strikes should be minimized through persistent efforts by the management: The management should adopt well-defined, precise, clear and progressive HRM policies for the maintenance of good industrial relations It should ensure an effective administration and timely implementation of these policies It should ensure that an effective two-way communication system is in operation. It should provide just and humane conditions of work, along with suitable welfare activities for the benefits of workers and develop close personal contacts with the employees at all levels It should evolve and adopt a suitable and speedy grievance redressal procedure for the management of workers problems IT should give recognition to a representative union and should have a pragmatic approach to union activities It should ensure joint consultation at different levels and encourage collective bargaining

Lockouts
Lockout refers to the action of an employer in temporarily closing down or shutting down the undertaking or refusing to provide its employees with work with the intention of forcing them either to accept the demands made by them or withdraw the demands made by them on him. y According to ID Act, lockout means the closing of a place of business or employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him
y

Lockout is a closure of industrial undertaking because of the existence of or apprehension of an industrial dispute, violence and damage to property y It is the suspension of employment in so far as the employer refuses to give work to the workmen until they yield to his demand or withdraw the demands made on him y A lockout is a antithesis of a strike y A lockout is used with some intention i.e. to coerce or force workmen to come to terms
y

What is not a lockout?


1. 2. 3. 4.

Prohibiting an individual employee Termination of employment by retrenchment Termination of services of more than one person at the same time Declaration of a lockout by an employer merely on ground that the workmen have refrained from attending to work

Conflict Resolution/Settlement of Disputes


Non-Statutory Methods Collective Bargaining Code of Discipline Grievance Procedure Workers Participation ID Act 1947 Statutory Measures Government Machinery Arbitration

Conciliation

State Acts

Adjudication Consultative Machinery

Collective Bargaining:
ILOs Perspective
y

In a bulletin issued by the ILO in 1960, collective bargaining has been defined as, negotiations about working conditions and terms of employment between an employer, a group of employers or one or more employer organizations and one or more representative workers organizations .with a view to reaching agreement wherein the terms of an agreement serve as a code defining the rights and obligations of each party in their employment relations with one another; it fixes a large number of detailed conditions of employment , and during its validity none of the matters it deals with can in normal circumstances give grounds for dispute concerning an individual worker

Collective bargaining is :
y

A process of Accommodation: Acc to Harbinson collective bargaining is a process of accommodation between two institutions which have both common and conflicting interestsIt purports not to attain industrial peace , rather it aims at the attainment of the commonly held goals of a free society..specifically the major function of collective bargaining is to generate pressures for enhancement of the dignity and worth of concerned parties. Performing mutual obligations: Collective bargaining finds a place in the National Labour Relation Act of United States. The Act in section 8(d) defines collective bargaining as, the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable time and confer in good faith with respect to wages, hours and other terms and conditions of employment, or the negotiation of an agreement, or any question arising there under, and the execution of a written contract corroborating any agreement reached if requested by either party A two-way street: It protects the basic interests of the management as well as the legitimate rights of the workers.

Basic Characteristics of Collective Bargaining


y y

y y y y

A political institution in which rules are made by trade unions of workers, employers and corporations/ organizations A negotiation, administration and interpretation of written agreement between the union and management which covers a specific period of time. It is opposed to individual bargaining as it related to group bargaining about wages and salaries and working conditions The extension of the democratic idea into work organization It is a continuous and dynamic activity in the employer and employee relationships It is not a competitive process rather is a complementary process

Collective bargaining: A Model


y

N.W. Chamberlain developed a model of collective bargaining. He defines Bargaining power


as the ability of a party to bargain to secure the agreement of the other party to its own terms. Thus the bargaining power of a trade union will refer to the willingness of the management to agree to unions demands , while managements bargaining power can be defined a unions willingness to agree to managements terms

UBP= MCD/MCA If UBP<1, management choose to disagree and reject


unions terms

MBP=UCD/UCA If MBP<1, union will choose to reject managements offer

Cost of Agreeing and Disagreeing


Managements cost of disagreeing is the estimated loss of profits during the strike which may follow its rejection of unions wage demand y Managements perceived cost of agreeing is the estimated reduction in profits resulting from payment of higher wages as demanded by unions y Unions cost of disagreeing is the estimated loss of wage income during a strike or lockout y Unions cost of agreeing to a lower wage than the one demanded by union is the reduced flow of wage income.
y

Types of Collective bargaining


1. Effort and Productivity bargaining Effort bargaining : where the amount of work to be accomplished for a predetermined wage becomes negotiable Productivity bargaining: a process by which employers minimize or at least stabilize unit labour costs by getting more effective work done and by which employees obtain greater rewards for doing it . 2. Formal bargaining and informal bargaining Frequently informal bargaining assumes more significance than formal bargainingwhile formal bargaining consists of very limited range of issues informal bargaining may embrace wider issues involving tacit arrangements and understandings related to customs and practices

Chamberlain & Kuhn Conjunctive bargaining mutual coercion - indispensable to each other - Lose-lose Cooperative bargaining both accept neither will gain advantages unless the other gains too. Win-Win - willingness to concede - to increase size of cake

Walton & McKersie Distributive bargaining basic conflict over slice of the cake. Fixed-sum game - if you win, I lose. Integrative bargaining (common perception & acceptance of issue) Mgt accept employee influence.TU accepts business responsibility. Cooperate to increase cake. Adversarial- cooperative tension remains Flanders Restrictive bargaining Productivity bargaining

Content of Collective Bargaining


Substantive rules (economic matters) pay (basic, overtime, PBR, guaranteed payments.....bonuses), hours (shifts, shorter week, flexi-time) , holidays, fringe benefits (pension, sick pay etc), Annual negotiations. y Procedural rules grievance, negotiating, disputes, redundancy, consultation, discipline matters y Work methods/arrangements. The nature of work & how it is carried out. Flexibility, multiskilling, productivity, assignments, teams, use of contractors, operating procedures
y

Scope of bargaining
y

A rule making or legislative process: it formulates the terms and conditions under which labour and management will cooperate and work together over certain stated period An executive process: both management and trade union officials share the responsibility of enforcing the rules A judicial process: in every collective agreement there is a grievance procedure to settle any dispute concerning the application of agreement

Collective Bargaining Levels/Structure


Plant Level: Management-Unions in the plant y Industry Level: Several units in same industry form an association/unions and bargain for common cause y National Level: Here the bargaining is between federation(s) of unions and an employers association
y

Pre-requisites for making collective bargaining a viable process


Freedom of Association y Stability of workers organizations y A favourable political climate y Recognition of Trade unions y Willingness to give and take y Avoidance of unfair labour practices y Signing of collective agreement and its implementation
y

Elements of Collective Bargaining


y 1. 2. 3. 4. 5.

Issues for consideration Issues pertaining to union recognition and union security Issues related to employment relationship Wage related issues Supplementary economic benefits Administrative issues

Machinery and procedure through which these issues are considered (Negotiation and bargaining power)
Union tactics like strikes and boycotts Management strategies like lockouts etc. Third party intervention such as arbitration, adjudication

1. 2. 3.

y
1. 2.

The agreement
Voluntary agreements Settlements

Interpretation/Implementation of the agreement

Phases of Collective Bargaining Process


y 1.

2.

Dale Yoder identifies two major phases of Collective bargaining process Negotiation phase: advancing proposals, discussing and criticizing, explaining and exploring their meaning and effects, seeking to secure their acceptance and making counter-proposals or modifications for similar evaluation. Administration phase: Contract administration related to putting the signed agreement into effect.

Phases of Collective bargaining contd.


y 1. 2. 3.

Dunlop and Healy identifies three phases : Bargaining demands The deadline or threat of strike or lockout Changing positions and reaching agreement

The process of Collective Bargaining


y

Phase1: 1.Registration of union 2. Recognition of union Phase 2:Preparation for Negotiations by management and unions Data collection Policy formulation Management strategy planning Union strategy

y
1. 2. 3. 4.

Phase3: Bargaining
Options: rejection of all demands, considering a few, temporary suspension to study the implications , counter demands Criteria for bargaining: give and take, open communication, read the hidden agenda, identify striking point of other side Strategies for bargaining: distributive, integrative, intra organizational bargaining Bargaining power of parties: persuasion, negotiation, coercion

Phase 4:Collective agreement Phase 5: Administration

Hurdles to collective bargaining in India


y y y

y y y

Problems in recognition of Trade unions Trade unions still form a very small portion of the total industrial employment Unions too weak to bargain collectively on account of their small membership, poor finances, multiplicity etc. Inter union and intra-union rivalries Lot of restrictions on the rights of employers and employees to lockout and strikes Unfavourable political and economic climate

Recommendations of the National Commission of Labour for successful functioning of Collective bargaining in India
Government intervention should be reduced particularly in settlements of industrial disputes y Trade unions should be strengthened y Legal provisions may be made either by a separate legislation or by amending existing enactments
y

Other machinery for settlement of Industrial disputes


Preventive Approach: 1. Works Committees Legal approach: 1. Conciliation 2. Adjudication Ethical Approach: 1. Code of Discipline 2. Voluntary Arbitration 3. Positive Discipline 4. Management of Grievances

Work Committees
Section 3 of the Industrial Disputes Act, 1947 provides for the setting up of a works committee in all industrial establishments employing one hundred or more workers consisting of representative of management and employees.It is the duty of the employer to form such a committee

Composition
This committee is bipartite with a provision that the number of representative of workmen shall not be less than the number of representatives of employer but the total number shall not exceed 20 The representatives of employer shall be a nomination and the workers representatives shall be elected from among workmen. The committee shall have a chairman to be nominated by the employer, a vice-chairman to be elected by workers, a secretary and joint secretary to be elected by the committee.

The term of office bearers shall be six years, onethird retiring every two years Workers with one year of continuous service are eligible to stand for election..workers with six months of continuous service are eligible to vote.

Objectives
According to the Industrial Disputes Act, the objectives of the works committee are to , promote measures for securing and preserving amity and good relations between the employer and the workmen, and to that end, to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters.Industrial peace will be most enduring where it is founded on voluntary settlement and it is hoped that the works committee will render recourse to the remaining machinery provided for the settlement of industrial disputes

Functions of Works Committees


As enumerated in the 17th session of Indian Labour Conference 1959:
1.

Conditions of work such as ventilation, lighting, temperature and sanitation Amenities such as drinking water, canteens, rest rooms, medical and health services Safety and accident prevention, occupational diseases and protective equipment Adjustment of festivals and national holidays Administration of welfare and fine funds Educational and recreational activities Implementation and review of decisions arrived at in the meetings of works committees

2.

3.

4. 5. 6. 7.

The works committee would not discuss (or deal with) the following:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Wages and allowances Bonus and profit sharing bonus Fixation of work load Retrenchment and lay-off Victimization of trade union activities Leave and holidays Incentive schemes Housing and transport P.F, gratuity and other retirement benefits Collective bargaining

Failure of Works Committee


According to the National Commission of Labour (1969)following points have rendered the Work Committees ineffective:
1.

2.

3. 4. 5. 6. 7.

the advisory nature of the recommendations: no mandatory powers vagueness regarding their exact scope :not clearly defined in the Act the functions inter-union rivalries union opposition and reluctance of employers in this regard. Problems in implementation of the recommendations

Suggestions to improve the effectiveness of Works Committees (The National Commission of Labour 1969)

A more responsive attitude on the part of management Adequate support from unions Proper appreciation of the scope and functions of the Works Committee Whole hearted implementation of the recommendations of the works committees Proper coordination of the functions of the multiple bipartite institutions of the plant level.

Conciliation and Adjudication


According to ILO conciliation can be defined as the practice by which the services of neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution Adjudication involves, compulsory attendance of witness, compulsory powers of investigation and compulsory enforcement of awards with penalties for breaches of these awardsthus adjudication embraces intervention in the dispute by a third party appointed by the government

Composition:
According to the Industrial disputes Act 1947, the conciliation machinery in India consists of
1. 2. 3.

Conciliation Officer (Section 4) Board of conciliation(Section5) Court of Enquiry(Section 6)

The three tier Machinery for the adjudication of industrial disputes as provided by industrial disputes Act 1947 consists of
1. 2. 3.

Labour Court (Section7) Industrial Tribunal(Section 7a) National Tribunal (Section 7b)

Conciliation Officer: Powers and Duties


Holding conciliation proceedings in prescribed manner Investigate the dispute and all matters affecting its merits for promoting a right settlement Initiate appropriate steps to help the parties reach a fair and amicable settlement Send a copy of the report and the memorandum of settlement signed by the parties to the appropriate Government. In case no settlement is arrived at the conciliation officer shall send to the appropriate government a full report setting forth the steps taken by him during conciliation and the reasons for no settlement.

Conciliation

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