Module 4 - Industrial Relations
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Transcript of Module 4 - Industrial Relations
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Module 4
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Module Outline
Industrial relations Introduction to IR- Concept and approaches-
role of government , employers and trade unions in IR- employer employee relation- union management relations
Industrial disputes – causes and effects IR machinery- collective bargaining-
conciliation- arbitration and adjudication Modern trends in IR
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Industrial Relations
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Meaning
Employment relationships -- relations among workers, employers, their organizations, and government regulators
All aspects of people at work The processes by which human beings and
organizations interact at the workplace and more broadly in society to establish terms and conditions of employment
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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
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Approaches to IR Unitary approach / Unitarism
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 has a paternalistic approach where it demands loyalty of all employees.
Trade unions are deemed as unnecessary and conflict is perceived as disruptive.
Unions cooperate with the management and the management’s right to manage is accepted because there is no “we they” feeling.
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Approaches to IR Pluralistic Approach / Pluralism
- The organization is perceived as being made up of powerful and divergent sub-groups - management and trade unions. Trade unions as legitimate representatives of employee interests
- Stability in IR is the product of concessions & compromises between management and unions
- This approach sees conflicts of interest and disagreements between managers and workers 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.
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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
- 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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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
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Role of Government
1. Evaluation of industrial relations policies Employees and workmen Act of 1860 1920Bombay Committee 1931 Royal Commission on labour 1938 Bombay Industrial Disputes Act The Industrial disputes act in 1947
2. Directives principles (Part IV, constitution of India)3. Promotion of Rights at Work 4. Employment - Creation of greater employment and income
opportunities for women and men as a means to reduce poverty and inequality.
5. Social Protection 6. Social Dialogue7. Wage boards, labor courts, tribunals & enacted laws
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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
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Role of Trade Unions
Representation Negotiation Voice in decisions affecting workers Member services :Education and training Legal assistance Financial Welfare benefits.
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Industrial disputes
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The Industrial Disputes Act,1947
Any conflict Between employees and employers Between employers and employers Between employees and employees- Connected with employment or non employment
issues or terms of employment or with conditions of work of any persons
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The Industrial Disputes Act,1947
Unfair labour practices The Industrial Disputes Act defines the
following as unfair labour practices: refusal by the employer to bargain collectively in
good faith with recognised trade unions, refusal by a union to bargain in good faith with the
employer workers and trade unions engaging in coercive
activities against certification of a bargaining representative
Breaching an industrial ‘settlement’ is punishable under law.
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Causes of disputes Economic causes
Wage & allowances Bonus Working conditions & working hours Modernization & automation Demand for other facilities
Managerial Causes Failure to recognize trade unions Defective recruitment policies Irregular layoffs & retrenchment Defiance of agreements & codes Defective leadership Trade union problems (Multiplicity) Unfair labour practices
Political Causes Other Causes (Inter union rivalry, misbehavior, miscommunication,
Multiplicity of labour laws)
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Forms of industrial disputes
Strikes ( Economic, sympathetic, general, sit down, slow down, lightening, hunger)
Lock outs Gherao Picketing Boycott
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Effects of Industrial Disputes
On the employers Loss of production Increase in cost of production Fall in profit Loss of goodwill
On Employees Loss of income Fear of loosing the job Psychological & physiological effects of forced idleness
On the nation Adverse effect of national productivity Chances of damage to public property
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IR Machinery
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IR Machinery
These are the machinery for handling industrial conflicts so that industrial disputes do not occur.
It is Mainly of 2 types – Preventive Machinery & Settlement Machinery
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Prevention of Industrial Disputes
1. Workers participation in management2. Grievance redresal procedure3. Model Standing orders4. Tripartic bodies (Indian labour conference,
standing labour committees, wage boards)5. National Arbitration Board (Voluntary
Arbitration)6. Grievance Interview7. The Open door Policy
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ID Settlement Machinery
Collective bargaining Conciliation Arbitration Conciliation
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Collective bargaining
Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditions.
It is a resolution to industrial problems between the representatives of employees and freely designated representatives of employers acting with a minimum government direction.
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Features
Group & collective action Strength Continuous process Flexible Voluntary
Dynamic Power relationship Bipartite process
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Approaches to Collective bargaining
As a process of social change As a peace treaty between conflicting parties Industrial Jurisprudence
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Objectives
Maintain cordial relationships Settle disputes or conflicts Protect the interests of the workers Ensure participation of trade unions
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Activities in collective Bargaining / types of collective Bargaining
Distributive Bargaining Integrative Bargaining Attitudinal Restructuring Intra-organizational Bargaining
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Process1. Identification of the problem
Wage related issues Supplementary economic benefits Institutional issues Administrative issues
2. Preparing for negotiations
Employer1. Prepare specific proposals for changes2. Determine the general size of the economic package3. Prepare statistical displays & supportive data4. Prepare bargaining book
Employees5. Financial position of the company & its ability to pay6. Attitude of management towards various issues7. Attitude & desires of employees
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Process
3. Negotiating Procedure 4. Reaching the agreement5. Ratifying the agreement6. Administration of agreement
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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 or
for appointing conciliation officers or for constituting a board of conciliation .
The Central Government or the State Government appoints conciliation officers
who are usually officials of the State Labour Department or the officials of the
Ministry of Labour Government of India
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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.
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Duties of the conciliator
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
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Adjudication The Labour Court/Industrial Tribunal after following the
procedure prescribed under law finally gives its Award. This Award is sent to the Government and becomes
operational thirty days after the date of its publication by the Government.
The Award given by the Labour Court/Indiustrial Tribunal is binding on the parties to the industrial dispute.
However, any one of the parties in the adjudication proceedings before the Labour Court/Industrial Tribunal can challenge the Award by means of a writ petition before the High Court.
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Adjudication
Section 10 of Industrial disputes act The proceedings before the Labour
Court/Industrial Tribunal are called adjudication proceedings.
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
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Arbitration
Arbitration & Industrial Disputes Act, 1974 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.
The parties agree that the issue in dispute between them should be settled by referring the issues for arbitration.
The parties to the dispute can select the person who should arbitrate the issue i.e., the arbitrator.
Solution from Arbitration would be bounded by both the parties
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Types of Arbitration
Voluntary Arbitration
Compulsory Arbitration
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Merits of Arbitration
Confidential Time saving Expert neutral Arbitrators often work faster than a judge to
decide disputes. The parties can select their arbitrator. Appointments are scheduled with the arbitrator
at the mutual convenience of all concerned; no other cases compete for attention.
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Demerits of Arbitration
Workers cannot go on a strike during the discussion. Sometimes arbitrator show result towards one
group due to bias. Two groups of people should agree the result what
the arbitrator said. The parties gives up their power to decide and
leaves their fate in the hands of a third party stranger.
The arbitrator’s settlement is final. The parties, not the court calendar, decide when
and how much time the arbitrator spends on their case.