Professional Documents
Culture Documents
MODULE - I
DEFINING IR
Industrial relations encompasses a set of phenomena, both inside and outside the workplace, concerned with determining and regulating employment relationship Relationship between management and employees or among employees and their organization that characterize and grow out of employment.
(1)
Institutional-based definitions: industrial relations are the sum of institutional processes that establish and administer the rules regulating workplace relations
Social Psychology-based definitions: industrial relations are the sum of social psychological interactions between individuals Class-based definitions: industrial relations are the sum of institutions, interactions and processes that are a product of wider social and economic influences, in particular the class divisions of contemporary capitalism
(2)
(3)
These lecture slides are copyright to Eruditions Publishing and may not be used or reproduced without written permission of the publisher, except in those institutions and courses where Petzall, Abbott, Timo, Australian Industrial Relations in Asian Context 2E is a prescribed student textbook.
Approaches Used to Define Industrial Relations (2) Ddefinitions that seek to include all matters contained in the first three definitions within other terms: (4) Human Resource Management: contracts of employment (involving trade unions, worker collectives, labour courts and government agencies), as well as management of conflict arising out of the personal interactions of individuals in the workplace, are part of labour management functions ( i.e. recruitment, selection, training, development, performance management, and so on) (5) Employment Relations (or Employee Relations): contracts of employment (involving trade unions, worker collectives, labour courts and government agencies), as well as the management of conflict arising out of the personal interactions of individuals in the workplace, are part of workplace relations, together with the normal functions of Human Resource Management.
OBJECTIVES OF IR
To enhance economic status of worker To avoid industrial conflicts and their consequences To extend and maintain industrial democracy To provide an opportunity to the worker to have a say in the management decision making To regulate production by minimizing conflicts To provide forum to the workers to solve their problems through mutual negotiations and consultations with management To encourage and develop trade union in order to develop workers collective strength
NATURE OF IR
IR arise out of employer employee relations IR is a web of rules: formed by the interaction of Govt, industry & labor IR is multi dimensional: influenced by complex set of institutional. economic & technological factors IR is dynamic and changing: keep pace with employee expectations, trade unions, employer associations and other economic and social institutions of society IR is characterized by forces of conflict and compromise. Individual differences and disagreements resolved through constructive means. Govt influences and shapes IR: with its laws, rules, agreements through executive and judicial machinery Scope of IR is very wide as it covers grievances, disciplinary measures ethics, standing orders, collective bargaining, participatory schemes and dispute settlement mechanism etc Interactive and consultative in nature: in resolving conflict,controversies and disputes between labor and management.
SCOPE OF IR
Management Union relationship Employer Employee relationship Relationship amongst various groups of employees Effect of extraneous factors like state, socio-political- economic factors on workplace relationships
Unitary
Authoritarian Paternalism
Pluralistic
Co-operation Conflict Approaches to industrial relations
Marxist
Evolution Revolution
Systems
Social action
Comparative
UNITARY APPROACH
IR is grounded in mutual cooperation, individual treatment, team work and shared goals. Work place conflict is seen as temporary aberration, resulting from poor management Employees who do not mix well with organization culture Unions cooperate with the management Managements right to manage is accepted because there is no we they feeling Underlying assumption is that everyone benefits when the focus is on common interest and promotion of harmony Based on reactive strategy. Direct negotiation with employees Participation of Govt, tribunals and unions are not sought or are seen as being necessary for achieving harmonious employee relation
PLURALISM
(CONFLICT APPROACH )
Pluralism is belief in the existence of more than one ruling principle, giving rise to a conflict of interests. The pluralist approach to IR accepts conflict between management and workers as inevitable but containable through various institutional arrangements ( like collective bargaining, conciliation and arbitration etc) and is in fact considered essential for innovation and growth. It perceives organizations as coalitions of competing interests , where the managements role is to mediate among the different interest groups. It perceives trade unions as legitimate representative of employee interests It also perceives stability in IR as the product of concessions and compromises between management and unions. Employees join unions to protect their interests and influence decision making by the management. Unions thus balance the power between management and employees. In pluralistic approach a strong unions is not only desirable but necessary
MARXIST APPROACH
Marxists like pluralists also regard conflict as inevitable but see it as a product of capitalistic society where as pluralist believe that the conflict is inevitable in all organizations For Marxists IR has wider meaning. For them conflict arises not because of rift between management and workers but because of the division in the society between those who own resources and those who have only labor to offer. Marxist approach thus focuses on the type of society in which an organization functions. Industrial conflict is thus equated with political and social unrest Trade Unions are seen both as labor reaction to exploitation by capitalists, as-well-as a weapon to bring about a revolutionary social change. Wage related disputes as secondary For them all strikes are political and they regard state intervention ( via legislations and creation of Industrial Tribunals ) as supporting managements interests, rather than ensuring a balance between the competing groups.
Systems approach
IR - a social sub-system within the econ. & political systems Components
actors contexts (influences & constraints on decisions & action e.g. market, technology, demography, industrial structure) ideology - beliefs affecting actor views - shared or in conflict rules - regulatory elements i.e. the terms & nature of the employment relationship developed by IR processes
PSYCHOLOGICAL APPROACH Differences in the perceptions of labor and management wrt factors influencing their relations i.e. wages. Benefits, services and working conditions etc Dissatisfaction compels workers to turn aggressive and resort to strike, lockouts and gherao etc. SOCIOLOGICAL APPROACH Sociological factors such as value system, customs and traditions etyc affect the relations between labor and management HUMAN RELATIONS APPROACH Human behavior is influenced by feelings, sentiments and attitudes. As per this approach humans are motivated by variety of social and psychological factors like economic and non-economic awards to be used. GIRI APPROACH Collective bargaining and joint negotiations be used to settle disputes between labor and management. Outside interference to be avoided. GANDHIAN APPROACH worker's right to strike but cautioned that this right be exercised in just cause and in a peaceful and non-violent manner for minimum wages etc like satyagrah- Non violent noncooperation
PARTIES TO IR
EMPLOYEES
EMPLOYERS
EMPLOYEE ASSOCIATIONS
EMPLOYER-EMPLOYEE RELATIONS
EMPLOYER ASSOCIATION
GOVERNMENT
ROLE OF WORKERS
WORKERS and their ORGANIZATIONS( Trade Unions or Associations ) Trade unions have a protecting role of safeguarding workers interests, Regulating function of ensuring implementation of statutes / Acts Ensuring non-violation of workers rights Trade Union Act provides Status and Authority for the power vested in them This power is used for negotiating Wage Interests, better benefits and service conditions, concessions, more amenities and welfare schemes Structure of Workers organization or Trade unions differs from country to country
ROLE OF MANAGEMENT
An organization is represented through officials designated in the organization structure for coordination of activities relating to:
Administering employee benefits Regulating terms and condition of employment Providing welfare and social security benefits Coordination is done through graded hierarchical and formal communication channels of orders and directives Style and manner in which employer organizations get work and regulate the terms and conditions of employment affects the industrial relations of the unit.
ROLE OF GOVERNMENT
Govt or state machinery regulates the relationship between workers organizations and employers organizations. It does it through : - Statutes and legislations, - The judiciary- labor courts industrial tribunals - An executive machinery- that lays down rules, procedures and gives awards and monitors them
Employment Relations
Dunlops model
SOCIAL SECURITY
( IMPACT ON EMPLOYEE RELATIONS )
Social security is one of the key components of labor welfare Labor welfare refers to all such services, amenities and facilities to the employees that improve their working conditions as-well-as their standard of living Social security benefits provided by an organizations should protect not only their employees but also their family members including financial security and health care etc Social security envisages that the employee shall be protected against all types of social risks that may cause undue hardship to them in fulfilling their basic needs. Accidents, job losses, retirement, sickness, death while on dutythese are realities of working life and leave a person and his dependents vulnerable Social security is an attempt by the employer and the state io institute measures that mitigate such social risks
MAJOR LEGISLATIONS
India being a welfare state has taken up itself the responsibility of extending various benefits of social security and social assistance to its citizens. Although the constitution of india is yet to recognize social security as a fundamental right, it does require state to promote the welfare of the people by providing social, economic and political justice Constitution requires companies to make effective provisions for making effective provisions for securing right to work, to educate and public assistance in case of unemployment, old age, sickness and disablement. Securing just and humane conditions of work. Raise level of nutrition and standard of living, improvement of public health etc A social security division has been set up under the ministrybof labor and employment. In the context of labor , social security aims at reducing risks against loss of earnings or earning capacity due to old age,illness or workrelated injuries.
Social security to the workers is provided through 5 major Acts: 1. 2. 3. 4. 5. The Employees State Insurance act, 1948 Employees provident Fund and Miscellaneous provisions Act The Workers Compensation Act The Maternity Benefit Act The payment of Gratuity Act In addition there are large number of welfare funds also for some specific segments Major thrust of social security relating to labor is on: a) Provisions relating to medical facilities, compensation benefits and insurance coverage incase if accidents, incapacity, illness etc.. b) Provisions relating to provident fund and gratuity
MODULE II
TRADE UNIONS & INDUSTRIAL DISPUTES
In most countries, there are laws governing the formation, membership and administration of trade unions.
2. Safeguard jobs
Protect jobs of members
5. Social activities
- Support members with recreation facilities and benefits for unemployment, illness, retirement, death
Types of Unions
1. Craft union
Same craft or occupation
2. General union
For unskilled workers
3. Staff union
Non-manual workers
Types of Unions
4. Industry union
Same industry, regardless of skills, occupation or job
2. Job security
More secured with collective agreement
3. Social need
Meet co-workers from other departments or companies
5. Peer pressure
Colleagues are members
6. Self-fulfillment
Serve other members
Working conditions
safeguarding workers health: Lighting & ventilation, sanitation, rest rooms, safety equipments ( hazards free atmosphere , drinking water, refreshments, working hours, leave & rest, holidays with pay, job satisfaction, social security benefits and other welfare measures
Discipline
Protect workers from victimization by management- transfers, suspensions, dismissals etc
Personal policies
Fighting against improper implementation of personnel policies wrt recruitment, selection, promotion, transfer, training etc..
Welfare
Solving difficulties of workers through collective bargaining wrt sanitation, hospitals, quarters, schools, colleges and other basic amenities
Negotiating machinery
Based on give and take principle, negotiations continue till parties reach an agreement. Protect interests of workers through collective bargainINg
FEATURES OF AN EFFECTIVE TRADE UNION Internally democratic Have a strong leadership Exhibit a responsibility towards their worker members Committed to promote industrial peace and harmony Inclined towards collective bargaining that is collaborative and not competitrive Possess financial security Adaptable to change
FORMS OF UNREST/DISPUTES
STRIKES: A strike is spontaneous and concerted refusal of work and withdrawal of labor from production temporarily. It is a collective stoppage of work for pressurizing their employers to accept certain demands. TYPES OF STRIKES:
SYMPATHETIC STRIKE: To show sympathy with workers in other industries GENERAL STRIKE: Strike by all or most of the unions in an industry or a region UNOFFICIAL STRIKE: Strike undertaken without the consent of the unions SECTIONAL STRIKE: Refusal of a section of a given class of workers to perfor their normal duties BUMPER STRIKES: to paralyze the industry firm by firm SIT DOWN /TOOL DOWN/PEN DOWN: Strike when unions plan strike and workers cease to perform but do not leave the place of work: SLOW DOWN STRIKE: Go-slow tactic, workers do not stop working but dot perform at their normal pace LIGHTNING STRIKE: Workers may go on strike without notice or at very short notice with an element of surprise HUNGER STRIKE: To gain sympathy from public and get noticed by employer workers may decide to forego food for a specified period. Such non-violent protests generally bring moral pressure on employers
FORMS OF UNREST/DISPUTES
LOCK-OUTS:
It is the counterpart of strike. It is the weapon available with employer to close down the factory till the workers agree to resume work on the conditions laid down by employer. If it is impossible to meet the demands of workers, employers may decide o go for lock-out An employer may also pull down the shutters so as to bring psychological pressure on the workers to agree to his conditions or face the closure of unit Gherao means to surround Group of workers initiate collective action aimed at preventing members of he management from leaving the office. This can happen outside the premises too Persons who atre under gherao are not allowed to move for a long time, sometime even without food or water National commission on labor has refused to accept it as a form of industrial protest While picketing workers carry/display signs ,banners and placards( In connection with dispute), prevent others from entering the place of work and persuade others to join the strike Boycott aims at disrupting the normal functioning of an enterprise, Through forceful and negative behavioral acts, strikers prevent others not to cooperate with employer
GHERAO:
LOCKOUT:
TERMINATION:
Workers association in our country is highly fragmented and the consequence is multiplicity of unions, which weakens the bargaining strength of employees. One of the defects of trade union movement in India has been the phenomenon of outside leadership. The fault of outside leadership lies with trade Union Act, 1926 itself. The act permitted outside participation to the extent of 50% of the strength of office bearers in a union. Trade Unions are at cross roads. Their membership is declining, Their political support is waning, public sympathy is receding, their relevance itself is at stake Managements on the other hand are on the offensive. They are able to force unions to accept terms and conditions. Workers,officers and managers are mercilessly terminated in the name of restructuring, downsizing etc Professionalisation of trade unions movement is another trend witnessed, they are trying to upgrade their leadership quality. Topics lie IT, strategic planning, diversity, networking and productivity etc now form inputs in training programmes organized for union leaders
Outside or political leadership Multiplicity of trade unions Small size of unions Low membership Uneven growth Poor financial position Low level of knowledge of labor legislation Fear of victimization
OBLIGATIONS:
It should have a name, clearly laid down objective, membership list readily available, purpose for which funds shall be utilized, members to be the actually working persons , Honorary/temporary office bearers, conditions for benefits/fines, conditions under which rules shall be amended, manner in which office bearers shall be appointed, safe custody of funds and manner in which trade union shall be dissolved
RIGHTS AND LIABILITIES Section 15 of the Act provides for certain obligations and liabilities of registered unions
It also stipulates the purpose for which funds can be utilized
Main provisions of the Act are: Settlement machinery -Provides suitable machinery for investigation, just, equitable and peaceful settlement of
industrial disputes and aims to provide justice both to employers and workmen - Collective bargaining, Negotiation
Aims at promoting security, amity and good relations between employer and employee or between employers and workmen or among workmen Prevent illegal strikes and lockouts and explains the contingencies when these can be lawfully resorted to or when these can be declared illegal or unlawful. Provide conditions and relief to workmen in the matters of lay-offs, retrenchment, dismissals and victimization
Last in first out in a retrenchment case or specific reasons in case of others
Get the workmen the right of collective bargaining and promote conciliation Lists down unfair labor practices on the part of both parties introduced in 1984
Compulsory Adjudication Reference by the Appropriate Government Sec. 10(1) S. 2-A, 33-A
LC, IT, NT
Publication of award
INDUSTRIAL DISPUTES
Publication of awards
Publication is must Time duration of 30 days is directory Award comes in to operation 30 days after publication Tribunal to recall the award
2. Stability of union
Unions have to be stable for collective bargaining to be effective union is able to honor the agreement.
5. Mutual respect
Relationship affected and process becomes tense and difficult if any party used unfair practices such as victimization.
Negotiations
Process depends on these factors:
1. Subject matter to be discussed 2. Persons involved 3. Circumstances under which the discussion is held.
A Typical Negotiation Process begins with each party stating its position. As discussion progresses, each party adjusts its demands to seek a mutually acceptable agreement.
Steps in Negotiation
1. Preparation
Each party must know what it wants.
2. Presentation
Each party presents its case.
4. Reaching an agreement
Parties sign a written statement on what have been agreed.