Industrial Relations, Collective Bargaining and Workers Participation in Management

Definition and concept of Industrial RelationsIndustrial relations is an outcome of employer-employee relationship in an organizationIndustrial relations facilitates harmonious relationships in an organization by setting a framework for the management and the employeesIndustrial relations is based on mutual compromise and adjustment, for the benefit of both the parties involvedThe state and the legal system also have a role to play in the maintenance of a conflict-free industrial environmentThe different parties in the system with a well-defined role are the management, the employees and the unions.

Different roles in Industrial RelationsEmployeesTrade UnionsThe Management

The exploitative authoritative styleThe benevolent authoritative styleConsultative management styleParticipative style

The Government

Objectives of Industrial RelationsThe objectives of industrial relations are: To safeguard the interests of the labor and the management by preventing one of the players from getting a strong hold over the other.To develop and secure mutual understanding and good relationships among all the players in the industrial set-up.To maintain industrial peace and harmony by preventing industrial conflicts.To improve the standard of living of the average worker by providing basic and standard amenities.To increase productivity by minimizing industrial conflicts and maintaining harmonious industrial relationsTo ensure discipline in the organization and in the industryTo provide a basic framework for the management and the employees to resolve their differences.To improve the bargaining capacity of the workers through trade unions.

Industrial disputes prevention machineryThere are various means of preventing industrial disputes. They are: Worker ParticipationEmployee Grievance Redressal Machinery Voluntary ArbitrationConciliationCourt of EnquiryTripartite BodiesAdjudicationi. Labor Courtsii. Industrial Tribunalsiii. National Tribunals

Concept of Collective BargainingThe term collective bargaining was coined by Sydney Webb and Beatrice Webb, who believed that collective bargaining was the collective equivalent to individual bargaining, whose primary aim was achieving economic advantage. The following conditions favor collective bargaining:There should be a single union, or in case of multiple unions, a common agreement among them. Clash of interests among unions leads to chaos and uncertainty which would result in a loss to the employees.Management should be open to the requests of the trade unions and should identify the union representativesThe culture of the organization should foster the right spirit for collective bargaining to be successful.The role of a third party should be minimized and agreements should be based on bipartite bargainingAll the parties involved should aim at a win-win situation and not a win-lose situation. The common interests of the organization and its employees should be taken into consideration while reaching any agreement.

Features of Collective BargainingGroup ActivityActivity in LevelsFlexibilityWin-win SituationBuilds RelationshipsAn Art and a Science

Objectives of Collective BargainingCollective bargaining has benefits not only for the present, but also for the future. The objectives of collective bargaining are: To provide an opportunity to the workers, to voice their problems on issues related to employmentTo facilitate reaching a solution that is acceptable to all the parties involvedTo resolve all conflicts and disputes in a mutually agreeable mannerTo prevent any conflicts/disputes in the future through mutually signed contracts To develop a conducive atmosphere to foster good industrial relationsTo resolve issues through third party (government) involvement in case of conflicting interests of the parties involvedTo provide stabile and peaceful industrial relations in the organisationTo enhance the productivity of the organization by prevailing strikes, lock-outs etc.

Collective Bargaining Process Preparation for NegotiationNegotiationContract Administration

Concept of Workers Participation in ManagementInformative participationConsultative participationAssociative participationAdministrative participationDecisive participation

Purpose of Workers ParticipationIt bridges the gap between the management and the workers by authorizing the workers to take part in managerial functions.Workers feel valued and, therefore are more committed to their work.They feel they have the ability to influence organizational decisions and this makes them more responsible in performing their duties. Since they are involved in the process of decision-making, any change in the organization can be implemented without resistance from them. Participation also ensures that each party (workers and management) understands the problems and constraints of the other. This helps in reducing industrial conflictParticipation enables equal distribution of power in industry so that it tends to be shared among all those engaged in organizational workParticipation facilitates effective communication between the workers and the management.The increased use of technology in industry has necessitated the growing co-operation of workers because of the complex operations of production.

Workers Participation in IndiaIncreasing productivity for the general benefit of the enterprise, employees and communityGiving employees a better understanding of their role in the working of the industry and of the process of production;Satisfying the workers urge for self-expression, thus leading to industrial peace, better relations and increase cooperation.

Forms of Worker Participation in IndiaWorks CommitteesJoint Management CouncilsJoint Councils Unit CouncilsPlant Councils Shop Councils

Factors Contributing to the Limited Success of the Workers Participation Schemes in Management in IndiaThe differing perceptions and attitudes of the workers and the management regarding the degree of participation. While the management finds it important to restrict the participation of workers, the workers feel that participation should be extended to all levelsWhile the management considers the bipartite bodies as substitutes for trade unions, the workers see these as rivalsA number of joint bodies such as works committee, joint management council, unit council and plant council exist, whose functions have not been clearly defined. This lead to confusion and duplication of efforts and results in waste of time and energy.In a country like India, the trade unions are poorly fragmented and organized. Further, the inter-union rivalry and influences of different political philosophies have created conditions that are not conducive to workers participation in management. Illiteracy among workers is a major reason for the failure of workers participation schemes in India. Workers do not participate actively as they lack a clear understanding of the concept, rationale and benefits of participation. Delay in implementation of the decisions of the participative bodies creates dissatisfaction and frustration among the workers and results in low confidence and reduced interest in the participation scheme.

Condition Necessary for Effective Working of the SchemeFor workers participation to be successful, there is a need to haveA healthy work atmosphere that motivates employees to participate in the decision-making process. Frequent conflicts in industries frustrate workers and they do not show interest in decision-making as they feel that the management is averse to proposals made by the workers. It is the responsibility of both the workers and the management to put in their best efforts, talents and resources for the realization of their goals. There should be total agreement between both parties regarding the functioning of the participation schemes. This will ensure the willingness of both the parties to participate in the progress and functioning of the schemes. Frequent meetings between the two parties will reduce the communication gap and help in implementing decisions at the right time.The participation schemes in an organization should be introduced at the shop floor and plant level. Until these are underway, the scheme of workers' involvement at the board level should not be introduced. CONTD..

Workers' training and education should be given importance so that the workers can understand the importance of their participation and its beneficial effects for the organization. The programs for training and development should be formulated comprehensively so that the workers are able to comprehend the various aspects of management. To make the employees participate actively, their suggestions should be taken into account and if the suggestions are good, they should be implemented immediately. This would increase employee contribution and cooperation. The management and the workers should trust one another and work towards improving the system. They should be willing to contribute to the fulfillment of organizational goals. Workers' participation schemes should be based on mutual trust and confidence and not enforced by law or compulsion as this would defeat their very purpose. Finally, it is important to evaluate the effectiveness of the worker participation programs from time-to-time and if required, necessary changes should be made to render them more acceptable and effective.