Allama Iqbal Open University

MASTER’S IN BUSINESS
ADMINISTRATION (HRM)
SEMESTER AUTUMN -2009
***

Labor Management Relations (821)

Assignment No. 1

Prepared by:

Muhammad Abdullah Sial

Roll No. 508195684
Registration No. 01PJG0057
Federal Public Service Commission
Aga Khan Road, F-5/1, Islamabad.

Submitted to:

Sir M. Waseem Hayat,

House No. 735, Street No.
3,
Sector I – 10/2,
Islamabad.
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Q. # 1: Describe major labor laws in the world? Explain different

characteristics of Pakistani Labor laws?
Ans:-
A body of laws, administrative rulings, and precedents which address
the legal rights of, and restrictions on, working people and their
organizations is called Labor law or employment law. As such, it mediates
many aspects of the relationship between trade unions, employers and
employees. The labour law has two broad categories.
i. Collective labor law:- The collective labor law relates to the
tripartite relationship between employee, employer and union.
ii. Individual Labor Law:- Individual labor law concerns
employees' rights at work and through the contract for work. The
labor movement has been instrumental in the enacting of laws
protecting labor rights in the 19th and 20th centuries. Labor
rights have been integral to the social and economic
development since the industrial revolution.
INTERNATIONAL LABOR ORGANIZATION (ILO)
Itnerationa Labour Organzition is the specailized body of United
Nations dealing with the labour related matters at the world level. The
International Labor Organization (ILO), whose headquarters are in Geneva, is
one of the oldest surviving international bodies, set up at the time of the
League of Nations following the First World War. Its guiding principle is that
"labour is not a commodity" to be traded in the same way as goods,
services or capital, and that human dignity demands equality of treatment
and fairness in dealing within the workplace.
The ILO has drawn up numerous conventions on what ought to be the
labor standards adopted by countries party to it. Countries are then obliged
to ratify the Conventions in their own national law. However, there is no
enforcement of this, and in practice most conventions are not agreed to,
even if they are adhered to.
 Core Conventions of ILO
While ILO Conventions are not ranked in terms of their order of
importance, there is an underlying hierarchy, which can be differentiated. In
the first category are Conventions dealing with freedom of association and
collective bargaining (Conventions Nos. 87 and 89), forced labour
(Conventions Nos. 29 and 105), non-discrimination in employment
(Conventions Nos. 100 and 111) and child labour (Convention 138).
 Freedom of Association and Protection of the Right to
Organize Convention, 1948 (No.87) : Establishes the right of all
workers and employers to form and join organizations of their own
choosing without prior authorization, and lays down a series of
guarantees for the free functioning of organizations without
interference by the public authorities. In December 1997, 121
countries had ratified this convention.
 Right to Organize and Collective Bargaining Convention,
1949 (No. 98): Provides for protection against anti-union
discrimination, for protection of workers' and employers'
organizations against acts of interference by each other, and for
measures to promote collective bargaining. In December 1997, 137
countries had ratified this convention.
 Forced Labour Convention, 1930 (No. 29):-Requires the
suppression of forced or compulsory labour in all its forms. Certain
exceptions are permitted, such as military service, convict labour
properly supervised, emergencies such as wars, fires, earthquakes,
etc. In December 1997, 145 countries had ratified this convention.
 Abolition of Forced Labour Convention, 1957 (No.105):
Prohibits the use of any form of forced or compulsory labour as a
means of political coercion or education, punishment for the
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expression of political or ideological views, workforce mobilization,
labour discipline, punishment for participation in strikes, or
discrimination. In December 1997, 130 countries had ratified this
convention.
 Discrimination (Employment and Occupation) Convention,
1958 (No. 111): Calls for a national policy to eliminate
discrimination in access to employment, training and working
conditions, on grounds of race, color, sex, religion, political opinion,
national extraction or social origin and to promote equality of
opportunity and treatment. In December 1997, 129 countries had
ratified this convention.
 Equal Remuneration Convention, 1951 (No.100):- Calls for
equal pay for men and women for work of equal value. In December
1997, 135 countries had ratified this convention.

EUROPEAN LABOR LAW

The European Working Time Directive limits the maximum length of a
working week to 48 hours in 7 days, and a minimum rest period of 11 hours
in each 24 hours. Like all EU Directives, this is an instrument which requires
member states to enact its provisions in national legislation. Although the
directive applies to all member states, in the UK it is possible to "opt out" of
the 48 hour working week in order to work longer hours.
In contrast, France has passed more strict legislation, limiting the
maximum working week to 35 hours (but optional hours are still possible).
The controversial Directive on services in the internal market, known as
Bolkestein Directive, was then passed in 2006.
• CHARACTERISTICS OF MAJOR LABOR LAWS IN THE WORLD
Contract of employment:-
The basic feature of labor law in almost every country is that the
rights and obligations of the worker and the employer between one
another are mediated through the contract of employment between
the two. This has been the case since the collapse of feudalism and is
the core reality of modern economic relations. Many terms and
conditions of the contract are however implied by legislation or
common law, in such a way as to restrict the freedom of people to
agree to certain things in order to protect employees, and facilitate a
fluid labor market. In the U.S. for example, majority of state laws allow
for employment to be "at will," meaning the employer can terminate
an employee from a position for any reason, so long as the reason is
not an illegal reason, including a termination in violation of public
policy.
Minimum wage
There may be law stating the minimum amount that a worker
can be paid per hour. Australia, Canada, China, Belgium, France,
Greece, Hungary, India, Ireland, Japan, Korea, Luxembourg, the
Netherlands, New Zealand, Paraguay, Portugal, Poland, Romania,
Spain, Taiwan, the United Kingdom, the United States and others have
laws of this kind. The minimum wage is usually different from the
lowest wage determined by the forces of supply and demand in a free
market, and therefore acts as a price floor. Each country sets its own
minimum wage laws and regulations, and while a majority of
industrialized countries has a minimum wage, many developing
countries have not.
Working time
Before the Industrial Revolution, the workday varied between 11
and 14 hours. With the growth of industrialism and the introduction of
machinery, longer hours became far more common, with 14–15 hours
being the norm, and 16 not at all uncommon. Use of child labor was
commonplace, often in factories. In England and Scotland in 1788,
 4
about two-thirds of persons working in the new water-powered textile
factories were children. The eight-hour movement's struggle finally led
to the first law on the length of a working day, passed in 1833 in
England, limiting miners to 12 hours, and children to 8 hours. The 10-
hour day was established in 1848, and shorter hours with the same pay
were gradually accepted thereafter. The 1802 Factory Act was the first
labor law in the UK.

 Health and safety

Other labor laws involve safety concerning workers. The earliest
English factory law was drafted in 1802 and dealt with the safety and
health of child textile workers.
 Anti-discrimination
This clause means that discrimination against employees is
morally unacceptable and illegal, on a variety of grounds, in particular
racial discrimination or sexist discrimination.
Unfair dismissal
Convention no. 158 of the International Labour Organization
states that an employee "can't be fired without any legitimate motive"
and "before offering him the possibility to defend himself". Thus, on
April 28, 2006, after the unofficial repeal of the French First Employment
Contract (CPE), the Longjumeau (Essonne) conseil des prud'hommes
(labour law court) judged the New Employment Contract (CNE) contrary
to international law, and therefore "illegitimate" and "without any
juridical value". The court considered that the two-years period of "fire
at will" (without any legal motive) was "unreasonable", and contrary to
convention no. 158, ratified by France.
Child labor
Child labor is the employment of children under an age
determined by law or custom. This practice is considered exploitative by
many countries and international organizations. Child labor was not
seen as a problem throughout most of history, only becoming a
disputed issue with the beginning of universal schooling and the
concepts of laborers' and children's rights. Child labor can be factory
work, mining or quarrying, agriculture, helping in the parents' business,
having one's own small business (for example selling food), or doing odd
jobs. Some children work as guides for tourists, sometimes combined
with bringing in business for shops and restaurants (where they may
also work as waiters). Other children are forced to do tedious and
repetitive jobs such as assembling boxes, or polishing shoes. However,
rather than in factories and sweatshops, most child labor occurs in the
informal sector, "selling on the street, at work in agriculture or hidden
away in houses — far from the reach of official inspectors and from
media scrutiny."

• CHARACTERISTICS OF PAKISTANI LABOR LAW

 Constitutional Provisions

The Constitution of Pakistan contains a range of provisions with

regards to labour rights found in Part II: Fundamental Rights and
Principles of Policy.

 Article 11 of the Constitution prohibits all forms of slavery, forced

labour and child labour;

 Article 17 provides for a fundamental right to exercise the freedom

of association and the right to form unions;
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 Article 18 proscribes the right of its citizens to enter upon any lawful
profession or occupation and to conduct any lawful trade or
business;

 Article 25 lays down the right to equality before the law and
prohibition of discrimination on the grounds of sex alone;

 Article 37(e) makes provision for securing just and humane

conditions of work, ensuring that children and women are not
employed in vocations unsuited to their age or sex, and for
maternity benefits for women in employment.

 Labour Legislation in Pakistan

Pakistans labour laws trace their origination to legislation inherited
from India at the time of partition of the Indo-Pak subcontinent. The laws
have evolved through a continuous process of trial to meet the socio-
economic conditions, state of industrial development, population and
labour force explosion, growth of trade unions, level of literacy,
Government’s commitment to development and social welfare. To meet
the above named objectives, the government of the Islamic Republic of
Pakistan has introduced a number of labour policies, since its
independence to mirror the shifts in governance from martial law to
democratic governance.
Under the Constitution labour is regarded as a ‘concurrent subject’,
which means that it is the responsibility of both the Federal and Provincial
Governments. However, for the sake of uniformity, laws are enacted by
the Federal Government, stipulating that Provincial Governments may
make rules and regulations of their own according to the conditions
prevailing in or for the specific requirements of the Provinces. The total
labour force of Pakistan is comprised of approximately 37.15 million
people, with 47% within the agriculture sector, 10.50% in the
manufacturing & mining sector and remaining 42.50% in various other
professions.
 Major Labour Laws of Pakistan
 The Children (Pledging of Labour) Act, 1933.
 The Employment (Record of Services) ACT, 1951.
 The Employment of Children Rules, 1955.
 The Control of Employment Ordinance, 1965.
 The Control of Employment Rules, 1965.
 The Free-Charging Employment Agencies (Regulations) Act, 1976.
 The Corporation Employees (Special Powers Ordinance, 1978.
 The Employment of Children Act, 1991.
 The Bonded Labour System (Abolitions) Act, 1992

 Industrial Relations Act, 2008 in Pakistan

Industry and workplace relations in Pakistan are now governed by the Industrial
Relations Act, 2008 (IRA-08).
The IRA-08 has removed restrictions on trade union formation in the EOBI, the
WWF, and the Pakistan Mint. Through a presidential order (No. 6), the law banning trade
unionism in Pakistan International Airlines (PIA) has been repealed. The act has removed
the obligation of a CBA to be affiliated with a national trade union federation or
organization. It has withdrawn the right to organize from the workers of the Pakistan
Telecommunication Authority (PTAC).
Though it allows for settlements between a group of workers and an employer, it
is seen as undermining the role played by the trade unions in collective bargaining.
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An industrial relations system may also be said to operate within a set of
constraints involving both the technology available to the economic system and the
ideology of the society as a whole.

 Important Features of Pakistani Labour Laws

 Contract of Employment :- While Article 18 of the Constitution
affords every citizen with the right to enter upon any lawful
profession or occupation, and to conduct any lawful trade or
business, the Industrial and Commercial Employment (Standing
Orders) Ordinance was enacted in 1968 to address the relationship
between employer and employee and the contract of employment.
The Ordinance applies to all industrial and commercial
establishments throughout the country employing 20 or more
workers and provides for security of employment. In the case of
workers in other establishments, domestic servants, farm workers or
casual labour engaged by contractors, their labour contracts are
generally unwritten and can be enforced through the courts on the
basis of oral evidence or past practice.
Every employer in an industrial or commercial establishment is
required to issue a formal appointment letter at the time of
employment of each worker. The obligatory contents of each labour
contract, if written, are confined to the main terms and conditions of
employment, namely nature and tenure of appointment, pay
allowances and other fringe benefits admissible, terms and
conditions of appointment.
 Termination of the Contract:- The services of a permanent worker
cannot be terminated for any reason other than misconduct unless
one month’s notice or wages in lieu thereof has been furnished by
the employer or by the worker if he or she so chooses to leave his or
her service. One month’s wages are calculated on the basis of the
average wage earned during the last three months of service. Other
categories of workers are not entitled to notice or pay in lieu of
notice.

All terminations of service in any form must be documented in

writing stating the reasons for such an act. If a worker is aggrieved
by an order of termination he or she may proceed under Section 46
of the Industrial Relations Ordinance 2002, aimed at regulating the
labour-management relations in the country, and bring his or her
grievance to the attention of his or her employer, in writing, either
him or herself, through the shop steward or through his or her trade
union within three months of the occurrence of the cause of action.
Forms of termination have been described as removed, retrenched,
discharged or dismissed from service. To safeguard against any
colorful exercise of power, victimization or unfair labour practices,
the Labour Courts have been given powers to examine and intervene
to find out whether there has been a violation of the principles of
natural justice and whether any action by the employer was bona
fide or unjust.

 Working Hours:- Under the Factories Act, 1934 no adult

employee, defined as a worker who has completed his or her 18th
year of age, can be required or permitted to work in any
establishment in excess of nine hours a day and 48 hours a week.
Similarly, no young person, under the age of 18, can be required or
permitted to work in excess of seven hours a day and 42 hours a
week. The Factories Act, which governs the conditions of work of
industrial labour, applies to factories, employing ten or more workers.
The Provincial Governments are further empowered to extend the
provisions of the Act, to even five workers.

 Paid Leave:- As provided in the Factories Act, 1934, every worker

who has completed a period of twelve months continuous service in
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a factory shall be allowed, during the subsequent period of twelve
months, holidays for a period of fourteen consecutive days. If a
worker fails in any one such period of twelve months to take the
whole of the holidays allowed to him or her, any holidays not taken
by him or her shall be added to the holidays allotted to him or her in
the succeeding period of twelve months.

A worker shall be deemed to have completed a period of twelve

months continuous service in a factory notwithstanding any
interruption in service during those twelve months brought about by
sickness, accident or authorized leave not exceeding ninety days in
the aggregate for all three, or by a lock-out, or by a strike which is
not an illegal strike, or by intermittent periods of involuntary
unemployment not exceeding thirty days in the aggregate; and
authorized leave shall be deemed not to include any weekly holiday
allowed under section 35 which occurs at beginning or end of an
interruption brought about by the leave.

 Maternity Leave and Maternity Protection:- While article 37 of

the Constitution makes reference to maternity benefits for women in
employment, there are two central enactments, one federal and the
other provincial providing maternity benefits to women employed in
certain occupations. The Maternity Benefit Ordinance, 1958
stipulates that upon the completion of four months employment or
qualifying period, a worker may have up to six weeks prenatal and
postnatal leave during which she is paid a salary drawn on the basis
of her last pay. The Ordinance is applicable to all industrial and
commercial establishments employing women excluding the tribal
areas. It also places restrictions on the dismissal of the woman
during her maternity leave. Similarly, the Mines Maternity Benefit
Act, 1941 is applicable to women employed in the mines in Pakistan.

 Other Leave Entitlements:- In addition to the 14 days of annual

leave with pay, the Factories Act, 1934 provides that every worker is
entitled to 10 days casual leave with full pay and further 16 days sick
or medical leave on half pay. Casual leave is granted upon
contingent situations such as sudden illness or any other urgent
purpose. It should be obtained on prior application unless the
urgency prevents the making of such application. As a customary
practice, causal leave is approved in most cases. Sick leave, on the
other hand, may be availed of on support of a medical certificate.
Management should not refuse the leave asked for if it is supported
by a medical certificate.

In addition to the leave entitlements, workers enjoy festival

holidays as declared by the Federal Government. The Provincial
Government under section 49 of the Factories Act, 1934, states all
festival holidays, approximately 13 or as further declared, in the
Official Gazette. Additionally, every worker is entitled to enjoy all
such holidays with pay on all days declared and notified by the
Provincial Government. If however, a worker is required to work on
any festival holiday, one day's additional compensatory holiday with
full pay and a substitute holiday shall be awarded.

Under agreements made with the Collective Bargaining Agent,

employees who proceed on pilgrimage i.e., Hajj, Umra, Ziarat, are
granted special leave up to 60 days.

 Minimum Age and Protection of Young Workers:- Article

11(3) of Pakistan’s Constitution expressly prohibits the employment
of children below the age of fourteen years in any factory, mine or
other hazardous employment. In addition, the Constitution makes it a
Principle of Policy of the State of Pakistan to protect the child, to
remove illiteracy and provide free and compulsory education within
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the minimum possible period and to make provision for securing just
and human conditions of work, ensuring that children and women are
not employed in vocations unsuited to their age or sex.

The Factories Act, 1934 allows for the employment of children

between the ages of 14 and 18 years provided that each adolescent
obtains a certificate of fitness from a certifying surgeon. A certifying
surgeon, per section 52 of the Act, shall on the application of any
child or adolescent who wishes to work in a factory, or, of the parent
or guardian of such person, or of the factory in which such person
wishes to work, examine such person and ascertain his or her fitness
for such work.

Under the Employment of Children Rules, anyone who employs a

child or permits a child to work in contravention of the Constitution is
punishable by imprisonment for a term extending up to one year or
may be fined up to Rs. 20,000 or subject to both.
Repetition of the offense is punishable by imprisonment for a term
extending up to two years and shall not be less than six months.

 Equality:- Article 38 of the Constitution imparts the State’s

obligations aimed at achieving equality in the form of securing the
well-being of the people, irrespective of sex, caste, creed or race, by
raising their standard of living, by preventing the concentration of
wealth and means of production and distribution in the hands of a
few to the detriment of general interest and by ensuring equitable
adjustment of rights between employers and employees, and
landlords and tenants. All citizens are bestowed, within the available
resources of the country, facilities for work and adequate livelihood
with reasonable rest and leisure and the basic necessities of life,
such as food, clothing, housing, education and medical relief, for all
such citizens, irrespective again of their sex, caste, creed or race, as
are permanently or temporarily unable to earn their livelihood on
account of infirmity, sickness or unemployment.

 Pay Issues:- Wages are construed as the total remuneration

payable to an employed person on the fulfillment of his or her
contract of employment. It includes bonuses and any sum payable
for want of a proper notice of discharge, but excludes the value of
accommodations i.e., supply of light, water, medical attendance or
other amenities excluded by the Provincial Government; the
employer’s contribution to a pension or provident fund, traveling
allowance or concession or other special expenses entailed by the
nature of his or her employment; and any gratuity payable on
discharge.

The employer is responsible for the payment of all wages

required to be paid to persons employed by him or her. Similarly any
contractor employing persons in an industry is responsible for
payment of wages to the persons he or she employs. The persons
responsible for payment of wages must fix wage periods not
exceeding one month. Wages should be paid on a working day within
seven days of the end of the wage period, or within ten days if 1,000
or more persons are employed. The wages of a person discharged
should be paid not later than the second working day after his or her
discharge.

 Labour Courts:- The Industrial Relations Ordinance, 2008

permits any CBA or any employer to apply to the Labour Court for the
enforcement of any right guaranteed or secured by law or any award
or settlement. The Provincial Government derives its authority to
establish as many Labour Courts as it considers necessary under
section 44 of the Ordinance. Each Labour Court is subject to
jurisdictional limitations derived by its geographical parameters or
with respect to the industry or the classes of cases allocated. Each
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Labour Court consists of one Presiding Officer appointed by the
Provincial Government.

An award or decision of a Labour Court is produced in writing and

delivered in open Court with two copies subsequently forwarded to
the Provincial Government. Upon receipt, the Provincial Government
within a period of one month publishes the award or decision in the
Official Gazette.

The IRO 2008 abolished the Labour Appellate Tribunal. Any party
aggrieved by an award or a decision given or a sentence passed by
the Labour Court may now submit an appeal to the High Court
(Article 48 of the IRO 2008). The High Court, may vary or modify an
award or decision or decision sanctioned by the Labour Court. It may,
on its own motion at any time, call for the record of any case or
proceedings in which a Labour Court within its jurisdiction has passed
an order, for the purpose of satisfying itself as to the correctness,
legality, or propriety of such order, and may pass such order, in
relation thereto as it thinks fit, provided that the order does not
adversely affect any person without giving such person a reasonable
opportunity of being heard.

 Official Gazette:- The Federal Laws of Pakistan are published by

the Government in a document called the Gazette of Pakistan. The
Ministry of Law, Justice and Human Rights in addition publishes
individual Acts through the Official Gazette.
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Q. # 2:- Write notes on the following:

(a) Models of labour management relations

Ans:-

The industrial relations system is composed of numerous organizations

of management and employees, and different levels and branches of
government. It is deeply embedded in our country’s basic social, economic
and legal systems. The processes of the industrial relations system mold the
terms and conditions of employment and rules about how conflict is to be
expressed and controlled.

Labour Management Relations

Management and labour together determine most of the conditions at

the workplace. In some manner or another, wages and salaries are
established, benefits are provided, hours of work are set, job assignments
are made, and disagreements and disputes are handled.

Often in the past, and in some instances today, a single individual

owned a business establishment personally and would hire and fir people,
setting the conditions of work and inviting employees to ‘take it or leave it.’
But that day is largely past.

Today managers represent a large and often diffuse group of

stockholders who own the company, and policies are set on the owners’
behalf. In many instances workers are organized collectively into unions,
which bargain with management over the terms and conditions of their
employment.

What is Model?

A “Model” is a mental construct/diagrammatical representation with

which people organize their thoughts about a topic.

Parties to Labour Management Models

• Parties Directly Involved in Industrial Relations System:-

Three main parties are directly involved in industrial relations:

 Employers: Employers possess certain rights vis-à-vis labors.

They have the right to hire and fire them. Management can also
affect workers’ interests by exercising their right to relocate, close
or merge the factory or to introduce technological changes.

 Employees: Workers seek to improve the terms and conditions of

their employment. They exchange views with management and
voice their grievances. They also want to share decision making
powers of management. Workers generally unite to form unions
against the management and get support from these unions.
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 Government: The central and state government influences and
regulates industrial relations through laws, rules, agreements,
awards of court ad the like. It also includes third parties and labor
and tribunal courts.

• Labour Management Models

When people consider labour-management relations, they usually think

about a single company dealing with a single local union. This is, of course, a
model but there are three different types of Labour Management Model.

1. ONE TO ONE MODEL

In this model it is supposed that there only two parties to a model i.e.
employer and employee only and there exists no regulator. Therefore, the
Labour Union and Management decides the issue mutually.

Management Labour Union

This model refers to dealing of a single company’s management with

single local union. It may be diagrammatically as in figure below:

Management
of Company
A

Local Union

The above figure represents a model, in that it identifies the parties

involved, indicates heir relationships to each other and excludes other
organizations and relationships as insignificant. It shows that the
management of Company A dealing with a local union that represent
Company A’s Employees. The two arrow headed lines between these two
factors indicates that each side influences the other.

2. TRANSACTIONAL MODEL

Stockholders
Customers Govt regulatory
bodies

Management of
Company

Employees Trade Union

Communities

The transactional model indicates a web of relationships involving

Company A with other organizations. We see that Company A has
responsibilities to its stockholders and customers as well as local union. It
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has also relationships with other companies through an association to which
it belongs; it has obligations imposed by governmental regulatory bodies; it
has commitments to the communities in which it operates; and it has
responsibilities to other unions with which it deals.

This is a more accurate model of the relationship of Company A to the

local union because it shows that the company must also deal with many of
these other groups on issues that affect local union.

For example, in considering, whether to give in to wage demands by

local union or to take strike, company A must consider the impact of its
choice on its customers, its stockholders, the communities in which it
operates, its non-unionized employees, and the other unions with which it
deals. Often the strong preferences of one or more of these groups will
determine Company A’s decisions.

3. LOCAL UNION AND ITS RELATIONSHIP

The local union is also involv3d in a web of relationships. The below

figure show its own activities the views of its national union, other unions,
the community in which it is located, its political friends (whom it should not
embarrass by its activities), other companies with which it has contacts (if
any), and the management of company A itself.

National Union
Management of Company A
Political Friends

Local Union

Other Companies Other Unions Communities

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4. JOHN DUNLOP’S MODEL

The John Dunlop’s Model of the industrial relations system focused on

the devleopment of arrangements for the workplkace as the ultimate
outcome. There are other outcomesof significance, however, including the
polictical activity ofunions, the decisions by companies about where to locate
facilities, and decisions by mangers and unions about lockouts and strikes.

5. SETHI AND DIMMOCK MODEL

In essence, the transaction model implies that management and union

are influneced in their actions by other factors than economics.

This model begins with environimental variables that include not only
ecological factors but also economic, legal, political, social, and technological
factors as well. These factors affect the actors in the industrial relations
system via their own needs, values, goals, power, and other factors.

What individual actors decide to do is also affected by their personal

relationsips with other people. For example, a potential controversy between
an employee and a manager may be avoided if the two people like one
another; or a conflict between a union and a company may be avoided, if the
union leader and the compnay’s top executive trust each other.

All the factors menetioned so far determine the strategy that each
actor will choose for dealing with other actors. The union, employer, and
government each then determine how to proceed to achieve its goals.
Unions and companies try to achieve objectives through bargaining with one
another. They are also concerned to see that conflict does not get out of
hand. The governement passes legislation andacts in the courts to enforce
its laws.

At the level of workplace, the individual is affected by the processes

occuring between the organized entities of management, labour, and
government and to a degree participates in them. The union member, for
example, votes on the union’s leadership and ordinalrily is asked to vote to
approve or disapprove a contract that the ujnion engotiates with
maangement.

Conclusionally, it is important for people in general to know about labour-

managemnet relations because these relations are a significant factor
affectivng the economic, social, and political institutions of our socieity.
 14

Q. # 2 Write notes on the following:

(b) Diversity in the Workplace

Ans:-

Workplace can be defined as ”the environment (as place, tools,

social connections, physical well being) enabling work to be done”.

Workplace diversity refers to the variety of differences between people

in an organization. That sounds simple, but diversity encompasses race,
gender, ethnic group, age, personality, cognitive style, tenure, organizational
function, education, background and more.

Diversity issues related to race, gender, age, disabilities, religion, job

title, physical appearance, sexual orientation, nationality, multi cultures,
competency, training, experience, and personal habits are explored in these
links. The bias is toward valuing diversity.

Diversity not only involves how people perceive themselves, but how
they perceive others. Those perceptions affect their interactions. For a wide
assortment of employees to function effectively as an organization, human
resource professionals need to deal effectively with issues such as
communication, adaptability and change. Diversity will increase significantly
in the coming years. Successful organizations recognize the need for
immediate action and are ready and willing to spend resources on managing
diversity in the workplace now.

Benefits of Workplace Diversity

An organization’s success and competitiveness depends upon its

ability to embrace diversity and realize the benefits. When organizations
actively assess their handling of workplace diversity issues, develop and
implement diversity plans, multiple benefits are reported such as:

• Increased adaptability

Organizations employing a diverse workforce can supply a greater

variety of solutions to problems in service, sourcing, and allocation of
resources. Employees from diverse backgrounds bring individual talents and
experiences in suggesting ideas that are flexible in adapting to fluctuating
markets and customer demands.

• Broader service range

A diverse collection of skills and experiences (e.g. languages, cultural

understanding) allows a company to provide service to customers on a
global basis.

• Variety of viewpoints

A diverse workforce that feels comfortable communicating varying

points of view provides a larger pool of ideas and experiences. The
organization can draw from that pool to meet business strategy needs and
the needs of customers more effectively.

• More effective execution

Companies that encourage diversity in the workplace inspire all of their

employees to perform to their highest ability. Company-wide strategies can
then be executed; resulting in higher productivity, profit, and return on
investment.

Challenges of Diversity in the Workplace

 15
Taking full advantage of the benefits of diversity in the workplace is
not without its challenges. Some of those challenges are:

 Communication - Perceptual, cultural and language barriers need to

be overcome for diversity programs to succeed. Ineffective
communication of key objectives results in confusion, lack of
teamwork, and low morale.

 Resistance to change - There are always employees who will refuse

to accept the fact that the social and cultural makeup of their
workplace is changing. The “we’ve always done it this way” mentality
silences new ideas and inhibits progress.

 Implementation of diversity in the workplace policies - This can

be the overriding challenge to all diversity advocates. Armed with the
results of employee assessments and research data, they must build
and implement a customized strategy to maximize the effects of
diversity in the workplace for their particular organization.

 Successful Management of Diversity in the Workplace - Diversity

training alone is not sufficient for your organization’s diversity
management plan. A strategy must be created and implemented to
create a culture of diversity that permeates every department and
function of the organization.

Recommended steps that have been proven successful in world-class

organizations are:

 Assessment of diversity in the workplace - Top companies make

assessing and evaluating their diversity process an integral part of
their management system. A customizable employee satisfaction
survey can accomplish this assessment for your company efficiently
and conveniently. It can help your management team determine which
challenges and obstacles to diversity are present in your workplace
and which policies need to be added or eliminated. Reassessment can
then determine the success of you diversity in the workplace plan
implementation.

 Development of diversity in the workplace plan - Choosing a

survey provider that provides comprehensive reporting is a key
decision. That report will be the beginning structure of your diversity in
the workplace plan. The plan must be comprehensive, attainable and
measurable. An organization must decide what changes need to be
made and a timeline for that change to be attained.

 Implementation of diversity in the workplace plan - The personal

commitment of executive and managerial teams is a must. Leaders
and managers within organizations must incorporate diversity policies
into every aspect of the organization’s function and purpose. Attitudes
toward diversity originate at the top and filter downward. Management
cooperation and participation is required to create a culture conducive
to the success of your organization’s plan.

Recommended diversity in the workplace solutions include:

 Ward off change resistance with inclusion. - Involve every

employee possible in formulating and executing diversity initiatives
in your workplace.
 Foster an attitude of openness in your organization. -
Encourage employees to express their ideas and opinions and
attribute a sense of equal value to all.
 Promote diversity in leadership positions. - This practice
provides visibility and realizes the benefits of diversity in the
workplace.
 16
 Utilize diversity training. - Use it as a tool to shape your diversity
policy.
 Launch a customizable employee satisfaction survey that
provides comprehensive reporting. - Use the results to build
and implement successful diversity in the workplace policies.
As the economy becomes increasingly global, our workforce becomes
increasingly diverse. Organizational success and competitiveness will depend
on the ability to manage diversity in the workplace effectively. Evaluate your
organization’s diversity policies and plan for the future, starting today.

Q. # 3:- What is industrial relations system? How does industrial

relations systems operate?

Ans:

An industrial relations system is characterized by having certain active

institutions, a context in which they operate, and a certain output. It is
important to think of industrial relations as being a system because the
concept of a system focuses attention on interrelationships among the
system’s parts. In fact, the industrial relation system of each country
constitutes a method of dealing with certain problems of labour relations that
exist in all countries, but that assume different forms as a result of the
particular form in which they occur.

Industrial relations systems can be defined as first the systems is

industrial in nature because we don not include in it the relationships that
exist in the agricultural sector, which explicitly involves the growing of crops
and husbandry of animals. In most countries these activities still consume
most of the labor force.

Industrial relations may be defined as the processes by which human

beings and their organizations interact at the work place and, more broaden.
The process of relations between persons and organizations is stressed, not
just the resulting standards. Finally, a “system” is spoken of in standards in
the industrial environment. Each nation may be said to have some
characteristic fashion of dealing with the social, economic, and legal
problems that arise among its citizen. If each of these areas is conceived to
involve a system then the industrial relations system may be described as an
area in which they overlap. Thus industrial relation system is seen to involve
important aspects of social, economic and legal systems of a country as they
relate to the industrial workplace and the relationships among employees
and managers.

Industrial relation system

Social Economic
system System

Legal
system

The above figure provides a diagrammatic identification of an

industrial relations system. The diagram shows that the industrial relation
system is derived from the intersection of the other, more basic systems. It
also shows that the other systems overlap two by two outside the industrial
relations system. thus in united states, the eco systems over lap broadly
outside industrial relations, including, or examples income maintenance
 17
programs like Social Security and welfare as many persons who make their
livelihood in industrial relations system is deeply embedded in our country’s
basic framework and is not a thing apart. In fact, many persons who make
their livelihood in industrial relations have been broadly trained as trades
people, lawyers or business people and come therefore from the legal or
economic system, bringing their attitudes and practices into the industrial
relations system. Industrial relations matters are not separated from the
broad range of legal activities in the United States, but are in fact deeply
intermingled with them.

Twenty years ago it was reasonably accurate to speak of the industrial

relations system of each nation and to compare and contrast them. In recent
years, however, there has been much change, so that in important instance
today there are greater differences within a nation that between nations.

An industrial relations system consists of the whole gamut of

relationships between employees and employees and employers which are
managed by the means of conflict and cooperation.

A sound industrial relations system is one in which relationships

between management and employees (and their representatives) on the one
hand, and between them and the State on the other, are more harmonious
and cooperative than conflictual and creates an environment conducive to
economic efficiency and the motivation, productivity and development of the
employee and generates employee loyalty and mutual trust.

In this context, here is a quick overview of seven predominant factors

that motivate companies, large and small, to diversify their workforces:
 As a Social Responsibility
 As an Economic Payback
 As a Resource Imperative
 As a Legal Requirement
 As a Marketing Strategy
 As a Business Communications Strategy
 As a Capacity-building Strategy

Actors in the IR system:

Three main parties are directly involved in industrial relations:

 Employers: Employers possess certain rights vis-à-vis labors. They

have the right to hire and fire them. Management can also affect
workers’ interests by exercising their right to relocate, close or merge
the factory or to introduce technological changes.

 Employees: Workers seek to improve the terms and conditions of

their employment. They exchange views with management and voice
their grievances. They also want to share decision making powers of
management. Workers generally unite to form unions against the
management and get support from these unions.

 Government: The central and state government influences and

regulates industrial relations through laws, rules, agreements, awards
of court ad the like. It also includes third parties and labor and tribunal
 18
courts.

SCOPE:

The concept of industrial relations has a very wide meaning and

connotation. In the narrow sense, it means that the employer, employee
relationship confines itself to the relationship that emerges out of the day to
day association of the management and the labor. In its wider sense,
industrial relations include the relationship between an employee and an
employer in the course of the running of an industry and may project it to
spheres, which may transgress to the areas of quality control, marketing,
price fixation and disposition of profits among others.

The scope of industrial relations is quite vast. The main issues involved
here include the following:

1. Collective bargaining
2. Machinery for settlement of industrial disputes
3. Standing orders
4. Workers participation in management
5. Unfair labor practices

Importance of Industrial Relations:

The healthy industrial relations are key to the progress and success.
Their significance may be discussed as under –

 Uninterrupted production:– The most important benefit of industrial

relations is that this ensures continuity of production. This means,
continuous employment for all from manager to workers. The
resources are fully utilized, resulting in the maximum possible
production. There is uninterrupted flow of income for all. Smooth
running of an industry is of vital importance for several other
industries; to other industries if the products are intermediaries or
inputs; to exporters if these are export goods; to consumers and
workers, if these are goods of mass consumption.

 Reduction in Industrial Disputes – Good industrial relations reduce

the industrial disputes. Disputes are reflections of the failure of basic
human urges or motivations to secure adequate satisfaction or
expression which are fully cured by good industrial relations. Strikes,
lockouts, go-slow tactics, grievances are some of the reflections of
industrial unrest which do not spring up in an atmosphere of industrial
peace. It helps promoting co-operation and increasing production.
 19
 High morale:-Good industrial relations improve the morale of the
employees. Employees work with great zeal with the feeling in mind
that the interest of employer and employees is one and the same, i.e.
to increase production. Every worker feels that he is a co-owner of the
gains of industry. The employer in his turn must realize that the gains
of industry are not for him along but they should be shared equally and
generously with his workers. In other words, complete unity of thought
and action is the main achievement of industrial peace. It increases the
place of workers in the society and their ego is satisfied. It naturally
affects production because mighty co-operative efforts alone can
produce great results.

 Mental Revolution:- The main object of industrial relation is a

complete mental revolution of workers and employees. The industrial
peace lies ultimately in a transformed outlook on the part of both. It is
the business of leadership in the ranks of workers, employees and
Government to work out a new relationship in consonance with a spirit
of true democracy. Both should think themselves as partners of the
industry and the role of workers in such a partnership should be
recognized. On the other hand, workers must recognize employer’s
authority. It will naturally have impact on production because they
recognize the interest of each other.

 Reduced Wastage:- Good industrial relations are maintained on the

basis of cooperation and recognition of each other. It will help increase
production. Wastages of man, material and machines are reduced to
the minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher

production with minimum cost and higher profits. It also results in increased
efficiency of workers. New and new projects may be introduced for the
welfare of the workers and to promote the morale of the people at work. An
economy organized for planned production and distribution, aiming at the
realization of social justice and welfare of the massage can function
effectively only in an atmosphere of industrial peace. If the twin objectives of
rapid national development and increased social justice are to be achieved,
there must be harmonious relationship between management and labor.

HOW DOES INDUSTRIAL RELATION SYSTEM OPERATE

An industrial relations system involves certain institutions, which we

may term “actor” in the system. The three major actors are

i) Management and management organization.

ii) Employees and their organization

iii) Government and its role as a regular actor and judge.

These actors together determine the output of the system, which we

may describe as a set of arrangements, understandings or rules about terms
and conditions of employment. Described in this way the system seem
simple enough but unfortunately, there are many complications for example
there is not one government in any country but many governments, with
different levels of government (e.g) federal, state and municipal) and many
branches of government (executive, legislative and judicial). We refer to this
separation as the “balance of powers” or “separation of power” doctrine.
Because of this separation, the many agencies of government are each, to a
degree separate actors in our industrial relations system. the actors in our
industrial relations system interact with one another to develop the basic
output of the system, including a set of rules or understanding about working
conditions and standards of employment.

When arrangements have been established, they have an impact on

both management and labour, who with government participated in their
 20
established. Sometimes the impact, or feedback, is what was expected and
intended. When this is the case, the actors in the industrial relations system
may turn their attention to other problems. However, sometimes the
arrangements that have been created have unexpected consequences.
Management or labour may be surprised and upset at the unintended
consequences of a rule. In this case, the actor that is aggrieved is likely to
seek further changes in the rule, or may go to the regulatory agencies to
attempt to get the rule changed.

An industrial relations system may also be said to operate within a set

of constraints involving both the technology available to the economic
system and the ideology of the society as a whole. Technology is very
important, for its helps to determine the types of jobs available and the
amount of output that can be produced and in turn can support living
standards. Improving technology is both a blessing and a curse to the
industrial relations system. it creates the capacity to provide higher living
standards. But it also generates disputes among labour and management
about work assignments, pay levels and similar matter associated with new
processes and equipment.

The ideological direction of a society is also an important constraint on

an industrial relations system. Stability in industrial relations requires a
degree of correspondence among the actor’s views of industrial society,
although the specific nature of the views is less significant.

UNDERSTANDING ABOUT IR SYSTEM ?

There is much to be said about the understandings or arrangements

that tare the product of the industrial relations system. First they may
concern many types of matters, including compensation, discrimination,
hiring and worker’s rights. Second, they may be either substantive or
procedural.

Substantive arrangements establish a matter exactly, as for example,

the amount of compensation, the length of the workday, and the size of the
overtime premium (e.g time and a half).

The arrangements produced by an industrial relations system may be

in several different forms. In many instances they are in the form of the
personnel policies, practices, and procedures of various companies. In many
instances they are found in the collective bargaining agreements between
companies and labour unions. In some instances they are in written form; in
other instances they are in the form of tactic understandings and/or un
written practices.

Some union management agreements are very brief and treat only a
few matters. Main contents are as under:-
• Local working conditions
• Contracting out (i-e subcontracting)
• Recognition and union member ship
• Rates of pay
• Job classifications and incentives
• Hours of work and overtime
• Holidays
• Vacations
• Seniority
• Adjustment of complaints and grievances
• Discharge of employees
• Management functions
• Safety and health
CONSTRAINTS ON INDUSTRIAL RELATIONS SYSTEM

 Unions
 21
 They are a device by which employees band together to
persuadde or compel employers to provide better pay and working
conditions. They also provide employees with a common voice in
delaing with employers, expressing employees’ concerns and
needs.
 Unions serve as a means fo rmembers to improve themselves
through study, educaiton and leadership.
 Technology & Economic System

 An industrial relations system may also be said to

operate witin a set of constraints involving both the technology
available to the economic system and the ideology of the society as
a whole.
 Technology is very important, for it helps to
determine the types of jobs available and the amount of output that
can be produced and in turn can support living standards.
 Improving technology is both a blessing and a curse
to the industrial relations system.
 It creates the capacity to provide higher living
standards, but it also generates disputes among labour and
management about work assignments, pay levels, and similar
maters associated with new processes and euipment.

 Society

 The ideological direction of a socieity is

also an important constraint on an industrial relations system.
 People generally accept privately owned
business as a legitimate part of the present economic system, and
the attempts of mangement to make a reasonable profit for private
stock-holders are accepted.

Legal framework and industrial relations

The constitution of Pakistan contains provisions for the economic and

social well-being of the people and for the promotion of social justice.
Fundamental rights with regard to the security of life or liberty, prohibition of
slavery and forced labour, and the right to form associations or unions,
among others, are enshrined in the constitution; any law, custom, or usage
inconsistent with these fundamental rights is void and the state is prohibited
from making any law which takes away or curtails these fundamental rights.
The constitution thus supports the progress of labour legislation for the
benefit of the working people.

Under articles 141 and 142 of the constitution, both the national
Parliament and the provincial assemblies can make laws with regard to any
matter contained in the Concurrent.

Industrial Relations Act, 2008 in Pakistan

Industry and workplace relations in Pakistan are now governed by the

Industrial Relations Act, 2008 (IRA-08).

The IRA-08 has removed restrictions on trade union formation in the

EOBI, the WWF, and the Pakistan Mint. Through a presidential order (No. 6),
the law banning trade unionism in Pakistan International Airlines (PIA) has
 22
been repealed. The act has removed the obligation of a CBA to be affiliated
with a national trade union federation or organization. It has withdrawn the
right to organize from the workers of the Pakistan Telecommunication
Authority (PTAC).

Though it allows for settlements between a group of workers and an

employer, it is seen as undermining the role played by the trade unions in
collective bargaining.

An industrial relations system may also be said to operate within a set

of constraints involving both the technology available to the economic
system and the ideology of the society as a whole.

Conclusion

Where government, unions, and mangers do not accept each other’s

legitimacy, very great difficulties can develop for industrial relations system.
Stability in industrial relations requires a degree of correspondence amon the
actor’s views of industrial socieity, althouth spediic nature of the views (e.g.
favourable or unfavourable to private business or favourable or unfavourable
to unions) is less significant.

. # 4:- Discuss history and philosophy of unions in the world with

examples.

Ans:-

Labor Union

A labor union, or trade union, is an association of fair wage-earners

uniting for the purpose of maintaining and improving the conditions of their
employment. Over a three-hundred-year period, labor unions have
developed into a number of forms, influenced by various political and
economic regimes. Immediate objectives and activities of trade unions often
vary according to industry. Despite such differences, however, the
fundamental ideals upheld by traditional labor unions include the provision of
member benefits, the right to collectively bargain, and the right to take
industrial action. Early trade unions, like Friendly Societies, provided a range
of benefits to accommodate their members in times of unemployment, ill
health, old age, and death, many of which have subsequently been assumed
by the state. Union members are also protected when taking industrial
action, such as striking to achieve particular goals. Unions often promote
political legislation favorable to the interests of their members or workers as
a whole. Thus, provided cooperative relationships are maintained between
management and labor unions, their work is generally beneficial to society,
ensuring that workers are well-cared for and thus able to make their best
contribution to society as a whole.
• Main Objectives
Over the last three hundred years, many trade unions have developed
into a number of forms, influenced by differing political abjectives and
activities of trade unions vary, but may include:
 Provision of benefits to members: Early trade unions, like Friendly
Societies, often provided a range of benefits to insure members
against unemployment, ill health, old age and funeral expenses. In
 23
many developed countries, these functions have been assumed by the
state; however, the provision of professional training, legal advice and
representation for members is still an important benefit of trade union
membership.
• Collective bargaining: Where trade unions are able to operate
openly and are recognized by employers, they may negotiate with
employers over wages.
• Industrial action: Trade unions may enforce strikes or resistance to
lockouts in furtherance of particular goals.
• Political activity: Trade unions may promote legislation favorable to
the interests of their members or workers as a whole. To this end they
may pursue campaigns, undertake lobbying, or financially support
individual candidates or parties (such as the Labour Party in Britain) for
public office.
History
In the eighteenth century, much of Western society witnessed the
world’s first Industrial Revolution and the abandonment of an agrarian
culture with craft based production. The young industrial environment
provided much of the momentum for the establishment and advancement of
the labor union.

The start of the Industrial Revolution sparked a rising fear in the craft
associations of the time, who feared encroachment on their established jobs,
wage changes, and workforce restructuring. The rapid expansion of the
industrial society quickly drew large numbers of women, children, rural
workers, and immigrants into the work force to labor for meager wages in
appalling conditions. These working environments would later prove to be an
important arena for change.

Early History

Trade unions have sometimes been seen as successors to the guilds of

medieval Europe, though the relationship between the two is disputed.
Medieval guilds existed to enhance their members’ livelihoods, through
controlling the instructional capital of artisanship, and the progression of
their members from apprentice to craftsman, journeyman, and eventually
to master and grandmaster of their craft. Guilds also facilitated mobility
by providing accommodation for their members traveling in search of
work. Though guilds exhibited some aspects of the modern trade union,
they also exhibited aspects of modern professional associations and
corporations.

Unlike modern labor unions, guilds were highly selective and offered
membership to only those artisans practicing a specific trade. Labor
unions seek to incorporate a broad array of laborers, to increase
membership numbers and union leverage as a whole.

Since the 1894 publication of Sidney and Beatrice Webb’s History of

Trade Unionism, trade unions have been defined as a collection of
employees working to negotiate pay rates, working conditions, and
member benefits. Others, however, have put forth the view that trade
unions are part of a broader movement to benefit society, to be conceived
of along the lines of freemasons, friendly societies, and various fraternal
organizations.

Later History

In the eighteenth century, most countries deemed labor unions illegal,

and constructed severe penalties, including execution, for the attempt to
organize such affiliations. Despite these measures, labor unions
succeeded in forming, and acquired political powers resulting in the
passage of legislation which legalized organizing efforts. Despite the
awarding of legal stature, trade unions continued to face generations of
opposition.
 24
The right to join a trade union is contained within the Universal
Declaration of Human Rights in Article 23, subsection 4. This clause states
that “Everyone has the right to form and to join trade unions for the
protection of his interests” (1948). This article also prohibits the forcing of
a person to join or form such a union body. The forcing of an individual to
enter into a union, whether by a government or a business, is generally
considered a human rights abuse. Similar allegations can be leveled
against any employer found to be discriminating against employees
based on union membership.

Throughout nineteenth-century continental Europe, socialist parties

and anarchists played a prominent role in the formation and progress of
trade unions. In Britain, New Model Unions dominated the union
movement. There, trade unionism would remain stronger than the
political labor movement until the early years of the twentieth century,
which marked the formation and growth of England’s Labour Party.

The Modern Labor Union

There are three major structures of union organizing: craft unionism,

general unionism, and industrial unionism. Craft unionism is defined by
the organization of a particular section of skilled workers. An organization
of a cross-section of workers from various trades is known as general
unionism. Attempting to organize all workers within a particular industry
is defined as industrial unionism.

Labor unions are often divided into branches, or locals, and are united
through national federations. These federations are affiliated with
international organizations, such as the International Confederation of
Free Trade Unions.

Union functions are also delineated by a service model and an

organizing model. The service model maintains worker rights, provides
member services, and resolves union disputes. The organizing model
typically involves full-time organizers, who foster confidence, build
networks, and promote leaders throughout the workforce. Labor
organizers may also launch confrontational campaigns involving large
numbers of union members and affiliates. Most labor unions are a blend of
these two philosophies. Union leadership is usually achieved through
democratic elections.

Union Operations

Companies that employ workers with a union generally operate on one

of several models called shops. Within the United States, unions can operate
under a closed shop or a union shop. Under a closed shop, a union will
employ only those who are already union members, and employers must
recruit directly from a union pool of applicants. A union shop employs non-
unions workers as well, but establishes a time limit within which new hires
must become union members.

An agency shop requires non-union workers to pay a fee to the union

for its services in negotiating their contracts. This is sometimes referred to as
the Rand formula. In certain situations regarding U.S. government
employees, fair share laws make it easy to require these sorts of payments.

During the 1980s, under Prime Minister Margaret Thatcher, the United
Kingdom was introduced to a series of laws directing the government to
restrict all closed and union shops. All agreements requiring a worker to join
a union have since been deemed illegal. In 1947, the Taft-Hartley Act
outlawed the operation of the closed shop union in the United States, but
permitted the existence of the union shop.

Political Relationships
 25
Unions may also engage in broader political or social struggles. Social
unionism defines the many unions that use their organizational strength to
advocate for social policies and legislation considered favorable for their
members. In some countries, unions maintain close alliances with political
parties. In many countries, labor unions may be closely linked to, or may
even share leadership with, a political party intended to represent the
interests of the working class. Often times, these parties include left-wing
politicians or socialists.

In the United States, labor unions have historically aligned with the
Democratic Party, though their allegiance to the party is by no means
steadfast.

In the United Kingdom, the relationship between the labor movement

and the labor party has disintegrated over the party’s support of
privatization plans, a position at odds with the movement’s perception of
worker interest.

Employment Laws

Varying structures of employment laws can also affect a union’s

business operations. In many western European countries, wages and
benefits are largely set by a governmental body. The United States takes a
more laissez-faire approach, setting a minimum standard but allowing most
workers' wages and benefits to be decided through collective bargaining and
market forces. South Korea has historically regulated collective bargaining
by requiring employers to participate in bargaining practices. However,
collective bargaining is only legally recognized if the sessions are held before
the lunar New Year. Under totalitarian regimes, such as Nazi Germany and
the Soviet Union, labor unions were typically controlled by de facto
government agencies, devoted to the smooth and efficient operation of
enterprises.

International Operations

Labor unions also engage in international operations. Such

organizations include the World Confederation of Labor and the World
Federation of Trade Unions. The world’s largest international organization,
the Brussels-based International Confederation of Free Trade Unions,
encompasses an estimated 231 affiliated organizations throughout more
than 150 countries and territories, and has a combined membership of 158
million.

National and regional trade unions organizing in specific industry

sectors or occupational groups have also formed global union federations,
such as Union Network International and the International Federation of
Journalists.

Labor Unions in Different Countries

As labor laws remain diverse in different countries, so do the functions

of unions. For example, German labor unions legally may operate only an
open shop policy, and all discrimination based on union membership is
forbidden. German unions also play a large role in the managerial decisions
and co-determination of global unions by participating in corporate boards.

The diversity of labor union operations in several countries, including

Poland, South Africa, the United Kingdom and the United States, is briefly
detailed below.

Poland

Poland’s Independent Self-governing Trade Union or, Solidarnośc

(Solidarity), is a trade union federation founded in 1980. In its earliest years,
Solidarity constituted a broad anti-communist social movement that the
 26
Polish government attempted to destroy through martial law in 1981, and
through a history of repression.

In 1989, roundtable talks between a weakened Polish government and

political opponents led to the establishment of semi-free elections. Later that
year, a Solidarity-led coalition was formed and in December, union leader
Lech Wałęsa was elected president. Since its 1989 inception, Solidarity has
become a more traditional trade union, with relatively little impact on the
Polish political scene of the early 1990s.

The survival of Solidarity was an unprecedented event not only in

Poland, a satellite state of the USSR ruled by a one-party communist regime,
but the whole of Eastern Europe. It meant a change in the hard-line stance of
the communist Polish United Workers' Party, which sought to end a 1970
protest with machine gun fire. The establishment of Poland’s Solidarity also
differed from the broader Soviet communist regime, a coalition which had
quelled both the 1956 Hungarian Uprising and the 1968 Prague Spring with
Soviet-led invasions.

The influence of Solidarity led to the intensification and spread of anti-

communist ideals and movements throughout Eastern Europe, weakening a
series of communist governments. A succession of peaceful anti-communist
counterrevolutions in Central and Eastern Europe were sparked. Various
communist-opposing groups throughout Eastern Europe followed the lead of
Solidarity, eventually leading to the Eastern Bloc's effectual dismantling, and
contributing to the collapse of the Soviet Union in the early 1990s.

South Africa

The history of South African trade unions dates back to the 1880s. At
that time, unions were viewed as a reflection of national racial disunity, as
the earliest unions were established only for white workers. Through the
turbulent years of apartheid, trade unions played an important part in
developing political and economic resistance, and were a driving force in the
establishment of a South African democratic government.

Trade unions continue to represent an important force in South Africa,

encompassing a quarter of the general work force, represented by over 3
million members. The Congress of South African Trade Unions (COSATU) is
the largest of the three major trade unions with a membership of 1.8 million.
COSATU is part of the Tripartite alliance with the ruling African National
Congress (ANC), and the South African Communist Party (SACP).

United Kingdom

British labor unions were often subject to severe repression until the
mid-nineteenth century, but continued to exist throughout the city of
London. During that period, workplace militancy often erupted, as in the
1820 rising in Scotland, where 60,000 workers attempted a general strike. In
1834, a significant attempt to set up a national labor union came in the form
of Robert Owen's Grand National Consolidated Trades Union, which attracted
a range of socialists and revolutionaries. However, facing severe pressures,
the organization would later collapse.

In the 1840s, trade unionism was overshadowed by the political

activities of the British parliament, though the establishment of less radical
trade unions would take hold in the 1850s. In 1860, the London Trades
Council was founded, followed by the establishment of a Royal Commission
on Trade Unions in 1867 and the Trades Union Congress in 1868. Three
years later, legal status would be awarded to British trade unions under the
1871 Trade Union Act.
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Trade union membership increased throughout years of industrial
unrest and World War I, resulting in a widespread recognition of unions and
an increase in management operations.

United States

On September 5, 1882, some 10,000 workers assembled in New York

City to participate in America's first Labor Day parade. After marching from
City Hall, past reviewing stands in Union Square, and then uptown to 42nd
Street, the workers and their families gathered in Wendel's Elm Park for a
picnic, concert, and speeches. This first Labor Day celebration was eagerly
organized and executed by New York’s Central Labor Union, an umbrella
group made up of representatives from many local unions. Debate continues
to this day as to who originated the idea of a workers' holiday, but it
definitely emerged from the ranks of organized labor at a time when they
wanted to demonstrate the strength of their burgeoning movement and
inspire improvements in their working conditions.

United States labor unions arose amidst the nineteenth-century

Industrial Revolution and have revolved around industrial advancement and
the behavior of the U.S. economy. Early historical resistance by employers to
members and affiliates of labor unions marked a long-established
relationship of adversity, and posed a great challenge to union organizers
and members.

Labor unions in the United States now function as a legally recognized

representation of workers from various industries. Recent years have seen
an increase in participation among the union’s service sector and public
sector. Activity by labor unions in the United States is generally focused on
collective bargaining rights, employee benefits, and working conditions.
Unions have also focused on the representation of their members in
violations of contract provisions by employee management. American unions
remain an important political factor through the mobilization of their
memberships and affiliations with like-minded activist organizations. Main
political agendas include immigrant rights, trade policies, health care, and
living wage campaigns.

Other Countries

Some Nordic countries including Belgium, Sweden, and Finland have

strong, centralized labor unions, where each industry represented has a
specific union and together comprises a national union confederation. The
largest Swedish union confederation is Landsorganisationen (LO), and has
approximately two million members totaling more than one-fifth of Sweden's
population. Finland's equivalent, the Central Organization of Finnish Trade
Unions (SAK), has about one million members out of a total country
population of 5.2 million.
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Q. #5: What is changing and why in the new workplace versus

old work place? Discuss with examples.

Ans:-

Today the workplae is changing. A dominant mode of organizaing work came out of the
early 1900s – Taylorism, or “Scientific Management” – but today that system is being
challenged by new forces that are economic, technological, and human in nature.

Workplace can be defined as ”the environment (as place, tools,

social connections, physical well being) enabling work to be done”.
This broader definition, will lead workplace development to include the
determination of:

 where work will be done (such as in an office, at home, in a plane or

car, in an office, or at a conference, all of the above, etc.),
 what processes (such as transaction processing, innovating,
communicating, learning, etc) will define the work to be done,
 how technology will enable those processes to be carried out (such
as data access, groupware, mobileware, etc.)
 what physical environment will support the work (such as office
design and layout, furniture, equipment, temperature, light, etc.)
 when and where people interact to exchange knowledge and
information

Scientific management was expanded and adapted by its adherents

from a theory of productivity improvement to a philosophy holding that

a. workers then to be “lazy” when unsupervised and so require close

supervision at work;
b. asking workers to make conscious decisions about production work
has the potential to disrupt present machine routines; hence,
decisions must be made by those away from the line segment.
c. wages are the most powerful motivator of behaviour, and, as they
rise, people will work harder, hence, profits from productivity
improvement should be shared with workers as increased pay.

The eventual realization that few benefits of automation were flowing

back to assembly workers except in higher wage rates, and that workers
were absorbing the bulk of the psychological and physical punishment of
monotonous work, generated a discontent that unions expressed. But in
recent decades changes in the business environment, in technology, and in
the expectations of employees have compelled companies to begin moving
away from the scientifically engineered workplace.

Over time, scientific management proved both beneficial and costly. It

as beneficial in that it pushed firms to rigorously study their production
process- standardizing machines, jobs and product designs as they did so. As
machines and human labor were more fully integrated into a single whole,
the tremendous potential of mass production was revealed. Wages levels
rose to unprecedented levels, and the wealth of society greatly advanced.
Scientific management became costly, however, when it led to and deskilled,
creating monotony and boredom among those required to perform them.
Further, with machines pacing factories and most of the power and authority
in the hands of management, there was little opportunity for workers to
relieve the stresses of production except on them selves.

The eventual realization that few benefits of automation were flowing

back to assembly workers except in higher wage rates, and that workers
were
 29
Modern working practices and technologies are typically designed to
shape the nature of work and affect employees’ behavior. They include, for
example, lean manufacturing, advanced manufacturing technology, total
quality management, call centres, supply-chain partnering and knowledge
management. Surveys show that these practices are increasingly in
unintended ways, have deleterious effects on employees and not produce
the hoped for improvements in employee and organizational performance.
Indeed, changing working practices often creates problems for employees at
all levels in the organization. It is therefore essential that we understand the
nature of modern working practices, the extent of their use, and the effects
that they have on employees and organizational performance so that they
can be more effectively designed and managed.

The aims of this topic are therefore to examine:

i. The nature and extent of modern working practices and
technologies.
ii. The impact of modern working practices on how people work
and their experience of work.

THE ESSENTIALS OF THE NEW WORKPLACE

Modern working practice Definition

 Learn manufacturing:- An integrated system of production with a
single production flow that is pulled by the customer. Emphasis on
small batch manufacture, just-in-time, team-based work and
participation to eliminate non-value-adding activities and variabilities.
 Total quality management:- A comprehensive, organization-wide
effort that is an integrated and inter-functional means of improving the
quality of products and services and of sustaining competitive
advantage Advanced manufacturing. The application of computer-
based technology to automate and technology integrate the different
functions in the manufacturing system Supply-chain partnering
Developing long-term, cooperative relationships with suppliers and
customers Team work A collection of individuals who are
interdependent in their tasks and outcomes, who see themselves and
are seen by others as a distinct social entity within a larger social unit
Call centres A work environment in which the main business is
mediated by computer and telephone-based technologies that enable
the efficient distribution of calls (or allocation of outgoing calls) to
available staff, and permits customer–employee interaction to occur
simultaneously with the use of display screen equipment and the
instant access to, and inputting of, information Knowledge
management The use of practices, particularly IT-based technologies
and community- and network-based practices, to centralize,
collectivize and create knowledge so that it can be exploited to
increase organizational performance and to develop new opportunities
Employee involvement The use of practices to increase employee
control, participation and empowerment and involvement, and the
supply of personal and Organizational resources necessary to do the
job Tele working/Virtual working remotely from the home, remote
offices or other sites for all or most of the working week, and
connected to the main organization by telephone and computer
technologies

The Traditional Versus the New Workplace

 Traditional Workplace
A traditional workplace is marked by several features, among them
sharp task specialization and extensive management hierarchy:
 Task specialization: first came to the attention of industry
when economists like Adam Smith showed that separating the steps
in a production process and assigning each one to a different
 30
person, rather than asking each person to perform all the steps as
necessary, greatly enhanced total output.
 Management hierarchy: on the other hand, emerged in
ancient China and Egypt as a device allowing small groups of army
officers to command and coordinate the activities or large groups of
soldiers and thereby impose unity of purpose on them.

Need for Change

 Today the concept to make mass production techniques

machinery is necessary. This also needed management method by
which to structure the supporting human infrastructure in the
factories. This found what managers were looking for in “scientific
management,” a set of concepts for governing industrial workplaces
often associated with Frederick W. Taylor.
 Scientific management was expanded and adapted by its
adherent from a theory of productivity improvement to a philosophy
holding that:
1. Workers tend to be “lazy” when unsupervised and so required
close supervision at work; hence, supervisors arranged in
hierarchies are needed to manage factories.
2. Asking workers to make conscious decisions about productions
work has the potential to disrupt preset machine routines; hence,
those away from the line – management, must make decisions.
3. Wages are the most powerful motivator of behavior, and as they
rise people will work harder; hence, profits from productivity
improvement should be shared with workers as increased pay.
 Concept of New Workplace
 There has emerged a new concept for managing the
workplace. Broad authority is delegated to employee teams,
thereby empowering them to operate largely on their own and
without direct supervision.

 This large-scale elevation of authority permits a reduced

number of managers to successfully lead organizations without
breaking themselves down with overwork. Also brings a new type
of employee to the forefront, one capable of taking initiatives and
working under minimal supervision, and skilled in many tasks
instead of just one-nearly the exact opposite of the desired
attributes of a worker under scientific management.

Main Objectives

 The new system is an attempt by management to improve

competitiveness.

 At its center are programs to improve quality and productivity

and to lower costs. These programs appear under various labels –
including total quality management (TQM) and market-driven
quality (MDO) – but have certain elements in common. For example,
they stress a transformation in management from directing work to
leading employees; from supervising employees at narrow tasks to
empowering them to utilize their own discretion in how to
 31
accomplish their missions in the firm; from having many layers of
management to far fewer managers.

 They even allow team many layers of management to far fewer

managers.

 They allow farms of employees to largely manage themselves.

 Workers are invited or required to participate in processes of

continuous improvement through quality circles or employee
involvement initiatives, which are described.
 32

Old versus New Workplace

1. What management Assumes about workers

OLD WAY Worker wants NEW WAY Worker desires

nothing from the job except changing will seek
pay, avoids responsibility, and responsibility autonomy
must be controlled and agreement permits
coerced.

2. How the-job is designed

OLD WAY Work is fragmented NEW WAY Work is multi skilled

and deskilled. Worker is and perform by teamwork
confined to narrow job. Doing where possible worker can up
and thinking are separated. grade whole system. Doing
and thinking are combined.

3. Management’s organization and style

OLD WAY Top-down military NEW WAY Relatively flat

command with worker at structures with few layers;
bottom of many supervisory worker makes suggestions and
layers; worker is expected to has power to implement
obey orders and has no power. charges.

4. Job training and security

OLD WAY worker is regarded NEW WAY Worker is

as a replaceable part and is
given little initial training or
retraining for new jobs. Layoffs
are routine when business
declines.
considered a valuable source
and is constantly retrained in
new skills. Layoffs are avoided
if possible downturn.

5. How wages are determined

OLD WAY Pay is geared to the NEW WAY Mutual interests are
job, not the person, and is emphasized Group incentive
determined by evaluation and and profit-sharing plant are
job classification systems. used to enhance commitment.

6. Labor relations

OLD WAY Labor and NEW WAY Mutual interests are

management interests are emphasized. Management
considered incompatible. shares information about the
Conflict arises on the shop floor business. Labor shares
and in bargaining. responsibility for making it
succeed.

Causes of the Change

Business Environment

 Today, business environment needs experienced much more

rapid change and also much more intense competition. Economic
conditions alter rapidly from growth to recession; new products and
services are introduced into the marketplace much more frequently
than previously; and competition has developed on a global scale so
 33
that firms must be much more responsive to their customers than
before.
 These factors have put a premium on quality in production and
the delivery of services, on controlling costs, and on being able to
adapt quickly in the marketplace.
 The traditional, or Taylorist system of work and supervision often
falls short on these new requirements.

Technological Pull

 Today, computers capable of doing routine tasks with

only human monitoring are being installed in factories and offices,
mainly to enhance productivity.
 As the role of machines is expanding, human activity
in organizations is shifting along with it. The focus is now on solving
problems for which the computer is not programmed. Instead of
employees being asked to do reutilized tasks under close
supervision, many are now encountering novel situations, whose
resolutions call for initiative and imagination.
 The result of fully utilizing the new technology is:
Productivity went up 20 percent; manufacturing costs went down 30
percent.

Changing Aspirations of People

 The new workplace is also being

encouraged by marked differences in the attitudes of the “baby
boom” generation and those of its parent generation toward the
authority of institutions and the meaning of work in people’s lives.
 Today’s work force is full of baby
boomers accustomed to demanding and receiving freedom from
institutional controls and many of them have been insisting on a
greater role in managing their own live both on and off the job. For
companies running their workplace under traditional management,
the result has been difficulty in recruiting the ‘brightest and best’ of
the new workers.
 Many companies are now trying to avoid
the trap of low education/low motivation/low productivity / high
costs by searching for more imaginative employees.

Among the most important workplace innovations arising from the

interplay of the new forces and the old are qulaity of work life (QWL) and
employee involvement (EI) schemes. The purpose of these programs is to
encourage workers to become more involved in their job, to reduce their
sense of alienation, and to improve productivity.
EI and QL programs require both management and labour to replace
confrontation with a more cooperative relationship. This is sometimes
difficult because of institutional rigidities and the history of conflict between
the two sides.

Referneces:

 Labor Management Reltions (5th Edition) by Daniel Quinn Mills;

 Manual of Employment and Service Coniditons, Buraeu of Labour
laws, Karachi.
 www.wikipeida.com
 http://actrav.itcilo.org/actrav-
english/telearn/global/ilo/law/lablaw.htm
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-: The End :-
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