DEFINING IR
Industrial relations encompasses a set of phenomena, both inside and outside the workplace, concerned with determining and regulating employment relationship Relationship between management and employees or among employees and their organization that characterize and grow out of employment.
(1)
Institutional-based definitions: industrial relations are the sum of institutional processes that establish and administer the rules regulating workplace relations
Social Psychology-based definitions: industrial relations are the sum of social psychological interactions between individuals Class-based definitions: industrial relations are the sum of institutions, interactions and processes that are a product of wider social and economic influences, in particular the class divisions of contemporary capitalism
(2)
(3)
Approaches Used to Define Industrial Relations (2) definitions that seek to include all matters contained in the first three definitions within other terms: (4) Human Resource Management: contracts of employment (involving trade unions, worker collectives, labour courts and government agencies), as well as management of conflict arising out of the personal interactions of individuals in the workplace, are part of labour management functions ( i.e. recruitment, selection, training, development, performance management, and so on) (5) Employment Relations (or Employee Relations): contracts of employment (involving trade unions, worker collectives, labour courts and government agencies), as well as the management of conflict arising out of the personal interactions of individuals in the workplace, are part of workplace relations, together with the normal functions of Human Resource Management.
NEEDS
Self actualization needs Esteem needs Love needs Safety needs Physiological need Need for growth Economic needs
Frustration Aggression
IMPACT
Since behavior has a cause effect relation ,the result would be complex attitudes and approaches and ultimately conflicts and uncordial IR. Collective bargaining Trade unions becoming very powerful on the IR scene. Intra union and inter union rivalaries. Trade union conflicts.
MANAGEMENT BY LOVE
Labor welfare officers are becoming more and more important. Dr Michael- Management By Love It is a policy of winning over the workforce by affectionate forgiveness of their pitfalls, wherever possible and providing to their actual needs.
ATTITUDES
An attitude is a hypothetical construct that represents an individual's degree of like or dislike for something. Attitudes are generally positive or negative views of a person, place, thing, or event this is often referred to as the attitude object. People can also be conflicted or ambivalent toward an object, meaning that they simultaneously possess both positive and negative attitudes toward the item in question. Attitudes are judgments. Most attitudes are the result of either direct experience or observational learning from the environment Jung's definition of attitude is a "readiness of the psyche to act or react in a certain way
ATTITUDES
A positive attitude in the workplace can help you whether you own your own business, work as an employee, or manage others within a business environment. Youll enjoy your work more and achieve your workplace or business related goals more easily and faster.
NEGATIVE ATTITUDES
Meetings in which most of the discussion is on what is going wrong rather than about ideas on how to solve the problem. Upper management seems to care only about how they are measured (usually by short-term profits) rather than about the long-term success of the company. Employees backstab each other in attempts to get ahead in the company.
People leave their workplace at the end of the day feeling drained and lifeless from all the negative energy. Customers receive poor service due to the negativity of the company representatives. These customers do not become repeat customers or refer new customers. General conversations occur around the workplace almost daily in which people complain to each other about how this, that, or the entire company is doomed to fail. Or about how much they hate working here.
PERCEPTION
Perception is our sensory experience of the world around us and involves both the recognition of environmental stimuli and actions in response to these stimuli. Through the perceptual process, we gain information about properties and elements of the environment that are critical to our survival. Perception not only creates our experience of the world around us; it allows us to act within our environment.
PERCEPTION
Perception includes the five senses; touch, sight, taste smell and taste. It also includes what is known as proprioception, a set of senses involving the ability to detect changes in body positions and movements. It also involves the cognitive processes required to process information, such as recognizing the face of a friend or detecting a familiar scent
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Perception
Factors in the Target Novelty Motion Sounds Size Background Proximity Similarity
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Figure-Ground Illustration
Field-ground differentiation
The tendency to distinguish and focus on a stimulus that is classified as figure as opposed to background.
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APPROACH/BEHAVIOUR
Conflicting situation- Approach could be avoiding Or compromising Adjusting Revolting
Employment Relations
Dunlops model
PARTIES TO IR
EMPLOYEES
EMPLOYERS
EMPLOYEE ASSOCIATIONS
EMPLOYER-EMPLOYEE RELATIONS
EMPLOYER ASSOCIATION
GOVERNMENT
ROLE OF WORKERS
WORKERS and their ORGANIZATIONS( Trade Unions or Associations ) Trade unions have a protecting role of safeguarding workers interests, Regulating function of ensuring implementation of statutes / Acts Ensuring non-violation of workers rights Trade Union Act provides Status and Authority for the power vested in them This power is used for negotiating Wage Interests, better benefits and service conditions, concessions, more amenities and welfare schemes Structure of Workers organization or Trade unions differs from country to country
ROLE OF MANAGEMENT
An organization is represented through officials designated in the organization structure for coordination of activities relating to: Administering employee benefits Regulating terms and condition of employment Providing welfare and social security benefits Coordination is done through graded hierarchical and formal communication channels of orders and directives Style and manner in which employer organizations get work and regulate the terms and conditions of employment affects the industrial relations of the unit.
ROLE OF GOVERNMENT
Govt or state machinery regulates the relationship between workers organizations and employers organizations. It does it through : - Statutes and legislations, - The judiciary- labor courts industrial tribunals - An executive machinery- that lays down rules, procedures and gives awards and monitors them
The Industrial Disputes Act, 1947 provides for setting up of Labour Courts, Industrial Tribunals and National Tribunals. Labour Courts deal with matters pertaining to discharge and dismissal of workmen, application and interpretation of Standing Orders, propriety of orders passed under Standing Orders, legality of strikes of lock outs etc. Industrial Tribunals deal with collective disputes such as wages, hours of work, leave, retrenchment, closure as well as all matters which come under the jurisdiction of Labour Courts The Central Government may set up a National Tribunal for adjudication of industrial disputes which in its opinion involve questions of national importance or are of such nature that industrial establishments in more than one State are likely to be interested in such disputes.
SOCIAL SECURITY
( IMPACT ON EMPLOYEE RELATIONS )
Social security is one of the key components of labor welfare Labor welfare refers to all such services, amenities and facilities to the employees that improve their working conditions as-well-as their standard of living Social security benefits provided by an organizations should protect not only their employees but also their family members including financial security and health care etc Social security envisages that the employee shall be protected against all types of social risks that may cause undue hardship to them in fulfilling their basic needs. Accidents, job losses, retirement, sickness, death while on dutythese are realities of working life and leave a person and his dependents vulnerable Social security is an attempt by the employer and the state for the institute measures that mitigate such social risks
SOCIAL SECURITY
Social Security for employees is a concept which over time has gained importance in the industrialized countries. Broadly, it can be defined as measures providing protection to working class against contingencies like retirement, resignation, retrenchment, maternity, old age, unemployment, death, disablement and other similar conditions.
With reference to India, the Constitution levies responsibility on the State to provide social security to citizens of the country
MAJOR ACTS
Social security to the workers is provided through 5 major Acts: 1. 2. 3. 4. 5. The Employees State Insurance act, 1948 Employees provident Fund and Miscellaneous provisions Act The Workers Compensation Act The Maternity Benefit Act The payment of Gratuity Act In addition there are large number of welfare funds also for some specific segments Major thrust of social security relating to labor is on: a) Provisions relating to medical facilities, compensation benefits and insurance coverage incase if accidents, incapacity, illness etc.. b) Provisions relating to provident fund and gratuity
ADOPTION LEAVES
A female member of the service on a adoption of a child may be granted leave of this kind for a period not exceeding 60 days . This facility will not be available for an adoptive mother who is already having two living children at the time of adoption. Commuted Leaves Child less then 1 months-upto 1 year 6 months or more- up to 6 months 9 months or more- up to 3 months
PATERNITY LEAVES
Male staff with less then 2 children may be granted 15 days paternity leaves during the confinement of his wife for child birth. The paternity leaves may be availed for 15 days before or up to 6 months from the date of the delivery of the child. During paternity leave ,salary equal to last pay drawn is admissible.
GRATUITY
Gratuity is a lump sum amount that your employer pays you when you retire or resign from the organization. An Employee does not contribute any portion of his salary towards this amount. Gratuity is paid out at the time of superannuation (if you retire at the age of 58), when you retire (at any other age) or resignation, and in the event of your death or being rendered disable because of an accident or illness. You need to have at least five full years of service with an employer to qualify for gratuity. In the event of your death, the gratuity will be paid to your nominee. Gratuity shall be calculated as per the below formula Gratuity = Last drawn salary x x No. of years of service
GRATUITY
For computation of gratuity, your service period will not be rounded off to the nearest full year. While calculating completed years, any fraction of the year will be ignored. For instance, if the employee has a total service of 20 years, 10 months and 25 days, only 20 years will be factored into the calculation.
PF(Provident fund)
Provident fund is a scheme by the Government of India by which: * A fixed percentage is deducted from your salary and * A fixed percentage added by the company This amount is kept in an account, which accumulates and is then received back after retirement.
PF(Provident fund)
Provident fund is basically a retirement benefit scheme. Under this scheme a stipulated sum is deducted from the salary of the employee as his contribution towards the fund. The accumulated sum along with the interest is paid to the employee at the time of his retirement or resignation. In case of death of the employee the accumulated balance is paid to his legal heirs.
WHAT IS NREGA?
NREGA is designed as a safety net to reduce migration by rural poor households in the lean period by providing hundred days of guaranteed unskilled manual labour when demanded on water conservation, land development & drought proofing works.
The Employment Guarantee Act is a step towards the right to work , as an aspect of the Fundamental right to live with dignity.
GOVERNMENT INTERVENTION
The State has a direct interest in preserving industrial peace in a country and, therefore steps have been taken by the State to promote a healthy growth of trade union and a well organised industrial relations machinery to achieve industrial peace and prosperity with the twin object of reducing production losses due to industrial disputes; and of assisting employers and workers towards the settlement of industrial conflicts through the machinery of conciliation
GOVERNMENT INTERVENTION
Where labour organisation, however numerous, were relatively weak and there was, a profound distrust of the employer as profit-seeking exploiter, the Government had to play a major role in delineating certain parameters of industrial relations.
GOVERNMENT INTERVENTION
When the labour situation worsens or law and order situation gets out of hand, the State cannot be expected to be a silent spectator. As the guardian of he people, and of the economy of the country, it has to intervene and adopt industrial relations policies which are likely to ensure social justice and industrial peace.
GOVERNMENT INTERVENTION
The federal nature of Constitution made it imperative for the State to intervene in labour matters to ensure smooth and continuing production. These included the Plantations Act, 1952; the Minimum Wages Act of 1984; the Industrial Disputes Act, 1947, the Payment of Bonus Act 1965; the Contract Labour (Regulation and Abolition Act, 1970; the Payment of Gratuity Act, 1972; the Bonded Labour System (Abolition) Act, 1974; and the Equal Remuneration Act, 1976.
GOVERNMENT INTERVENTION
The Directive Principles of he Constitution, enjoined upon the State to establish a 'Welfare State' and to look after the interests of the weakest sections of society, including the handicapped
MAJOR LEGISLATIONS
India being a welfare state has taken up itself the responsibility of extending various benefits of social security and social assistance to its citizens. Although the constitution of india is yet to recognize social security as a fundamental right, it does require state to promote the welfare of the people by providing social, economic and political justice Constitution requires companies to make effective provisions for securing right to work, to educate and public assistance in case of unemployment, old age, sickness and disablement. Securing just and humane conditions of work. Raise level of nutrition and standard of living, improvement of public health etc A social security division has been set up under the ministry of labor and employment. In the context of labor , social security aims at reducing risks against loss of earnings or earning capacity due to old age, illness or work-related injuries.
Attitudes of management to employees and unions Attitudes of employees to management and unions Attitudes of unions to unions to management and employees Present and likely future strength of unions Effective and agreed procedures for discussing and resolving grievances or handling disputes within the company
FACTORS AFFECTING EMPLOYEE RELATIONS EXTERNAL FACTORS: The extend to which bargaining is carried out at national, local or plant level The effectiveness of any national or local procedure agreements that may exist Employment situation nationally or locally Legal framework within which IR exists
SCOPE OF IR
Of course mainly concerned with Employeremployee relations. Relations between workers themselves& various groups in the industry. Public relations Community relations Relations between industry and society
SCOPE OF IR
Management Union relationship Effect of extraneous factors like state, sociopolitical- economic factors on workplace relationships
CONSEQUENCES
IR is the best weapon for ensuring individual development in the industry, if utilized properly. Enables both Management and workers to establish a link between each other (manpower adaptation to the working environment) Sense of belonging amongst the workers & sense of responsibility in the Management
IN SHORT
Maximum individual development Desirable working relationships Employers Vs Employees and between the employees Effective adaptation of the human resources as per the need. Relating man effectively to his environment.
WAY FORWARD
Establishing and maintaining good personal relations in the industry. Ensuring manpower development. Making a mutual link between various personnel especially between the Management and the workers. Creating a sense of belonging in the minds of the workers. Creating a sense of responsibility in the minds of employers/Management
WAY FORWARD
Creating mutual affection, respect and regard. Establishing a good industrial climate of peace and prosperity. Stimulating production as well as industrial and economic development. Maximizing social welfare Healthy and effective government interventions in the labour Management relations.
WAY FORWARD
Scope of IR not confined to common labour management relations or the employeremployee relations or the Union Management Relations. Scope of IR is very vast since their functions are manifold.
FUNCTIONS OF IR
Of course the primary function is to establish cordial relations between the Management and the workers. To bridge the gulf between the employers and the employees. To establish a pipeline between the workers and the Management. To establish rapport between the Management and the Managed
FUNCTIONS OF IR
To enhance economic status of worker To avoid industrial conflicts and their consequences To extend and maintain industrial democracy To provide an opportunity to the worker to have a say in the management decision making To regulate production by minimizing conflicts To provide forum to the workers to solve their problems through mutual negotiations and consultations with management To encourage and develop trade union in order to develop workers collective strength
FUNCTIONS OF IR
To establish and maintain cordial relations between the workers and their employers. To ensure creative contribution of the trade unions. To avoid industrial conflicts. To maintain harmonious relations which are essential for production efficiency.
FUNCTIONS OF IR
To safeguard the interests of both the workers and the Management. To avoid unhealthy atmosphere in the industry, especially direct actions like strikes,lockouts,gheros etc To raise industrial productivity and ultimately contributing to the economic development of the country. To ensure better workers participation in involvement in the production process.
FUNCTIONS OF IR
To bring about government control over the industrial scene etc. Thus good industrial relations can work as an effective weapon in the hands of both management and workers as well as in the hands of the government.
LIMITATIONS OF IR IN INDIA
Sometimes it appears that IR has become just a formality in India. Many of the objectives of IR are seldom achieved especially because of some inherent limitations. Many of the healthy factors expected of IR in India are amazingly lacking. Competition and class struggle are very common scene here.
Individual gains are more valued then collective gain or social good. The core values of India's IR systems appears to be competition, class struggle and compromise. Key parties maximize gains at the cost of others by making use of their power and strength. Employers consider trade unions and their leaders as nuisance/ hurdles
LIMITATIONS OF IR IN INDIA
LIMITATIONS OF IR IN INDIA
Trade unions consider employers as exploiters Workers misled by their trade union leaders making use of the collective strength of the trade union movements for their self interest. Most of the trade unions are the organs of political organisations,where ordinary workers are compelled to follow blindly what their leaders decide.
LIMITATIONS OF IR IN INDIA
Collective bargaining becoming compelled bargaining. General tendency among the Management that even the just and realistic grievances of the working class should wait for their mercy.
LIMITATIONS OF IR IN INDIA
Approaches of both the Management and the workers create a wide gulf between them. Unless differences sorted, cannot think of establishing healthy IR climate in India.
MODULE II
TRADE UNIONS & INDUSTRIAL DISPUTES
Trade Unions
Acc to the Trade Union Section 2(h) of the Trade Unions Act, 1926 "Trade Union" means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices.
2. EQUALITY: Workers must not be discriminated wrt caste, creed, sex etc.
Each worker should get equal pay for equal work
It is an organisation formed by employees or workers. It is formed on a continuous basis It is formed to protect and promote all kinds of interests economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic. It includes federations of trade unions also. It achieves its objectives through collective action and group effort
2. Safeguard jobs
Protect jobs of members
5. Social activities
6. Economic Benefits
-To secure bonus for the employees from the profit of the concern, To resist schemes of the management which reduce employment, e.g., rationalisation and automation.
IN SHORT
(a) (b) (c) (d) Representation Negotiation Voice in decisions affecting workers Member services Education and training Legal assistance Financial discounts Welfare benefits
Fraternal functions
These are another set of activities performed by trade unions that aims at rendering help to its members in times of need, and improving their efficiency. To take up welfare measures for improving the morale of workers, e.g., school for the education of children, library, reading-rooms, in-door and out-door games, and other recreational facilities To generate self confidence among workers To encourage sincerity and discipline among workers To provide opportunities for promotion and growth To protect women workers against discrimination Trade unions try to foster a spirit of cooperation and promote friendly relations and diffuse education and culture among their members
Fraternal functions
They also arrange for legal assistance to its members, if necessary. Some trade unions even undertake publication of some magazine or journal. These activities, which may be called fraternal functions, depend on the availability of funds, which the unions raise by subscription from members and donations from outsiders, and also on their competent and enlightened leadership.
POLITICAL ACTIVITIES
Modern trade unions also take up political activities to achieve their objectives. Such activities may be related to the formation of a political party or those reflecting an attempt to seek influence on public policy relating to matters connected with the interests of working class.
Lack of education makes the workers narrow-minded, and prevents them from taking long-term views. Thus, anything, which does not result in an immediate reward, becomes unattractive to them. This attitude is responsible for many strikes and lock-outs in industrial concerns. Trade unions may not welcome rationalisation and improved methods of production for the fear that some of the workers will be put out of work. Therefore, they resort to go slow policy that retards industrial progress. When labour unions strike because of illogical grounds, incalculable losses occur to producers, community and the nation. These are harmful to the workers also. They suffer because of the loss of wages. They create artificial scarcity of labour by demanding that only union personnel should be employed. By undue insistence on the payment of standard rates of wages, they have only levelled down the earnings of the efficient workers.
Types of Unions
1. Craft union
Same craft or occupation
2. General union
For unskilled workers
3. Staff union
Non-manual workers
Types of Unions
4. Industry union
Same industry, regardless of skills, occupation or job
2. Sense of Security
More secured with collective agreement. The employees may join the unions because of their belief that it is an effective way to secure adequate protection from various types of hazards and income insecurity such as accident, injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers.
3. Social need
Meet co-workers from other departments or companies
5. Peer pressure
Colleagues are members
6. Self-fulfillment
Serve other members 7. Sense of Participation The employees can participate in management of matters affecting their interests only if they join trade unions. They can influence the decisions that are taken as a result of collective bargaining between the union and the management.
Methods evolved for grievance redressal, techniques adopted to reduce absenteeism and labor turnover. upgrading skills- attend training courses organized by unions Education and training. Legal assistance. Financial discount Welfare Benefits
Workers association in our country is highly fragmented and the consequence is multiplicity of unions, which weakens the bargaining strength of employees. One of the defects of trade union movement in India has been the phenomenon of outside leadership. The fault of outside leadership lies with trade Union Act, 1926 itself. The act permitted outside participation to the extent of 50% of the strength of office bearers in a union. Trade Unions are at cross roads. Their membership is declining, Their political support is waning, public sympathy is receding, their relevance itself is at stake Managements on the other hand are on the offensive. They are able to force unions to accept terms and conditions. Workers,officers and managers are mercilessly terminated in the name of restructuring, downsizing etc Professionalisation of trade unions movement is another trend witnessed, they are trying to upgrade their leadership quality. Topics lie IT, strategic planning, diversity, networking and productivity etc now form inputs in training programmes organized for union leaders
Outside or political leadership-Trade unions in India are led largely by people who themselves are not workers. These outsiders are politicians, intellectuals and professionals having no experience of work in industry. Outsiders continue to dominate the trade unions to advance their personal interests. Small size of unions Low membership-The number of trade unions in India has increased considerably. But this has been followed by the declining membership per union. Uneven growth. The trade unionism in India is characterised by uneven growth, both industry-wise and area-wise. Trade unions are popular in big industries and the degree of unionisation varies widely from industry to industry. Besides, trade union activities are concentrated in a few states and in bigger industrial centres mainly due to concentration of industries in those places Low level of knowledge of labor legislation Fear of victimization
OBLIGATIONS:
It should have a name, clearly laid down objective, membership list readily available, purpose for which funds shall be utilized, members to be the actually working persons , Honorary/temporary office bearers, conditions for benefits/fines, conditions under which rules shall be amended, manner in which office bearers shall be appointed, safe custody of funds and manner in which trade union shall be dissolved
RIGHTS AND LIABILITIES Section 15 of the Act provides for certain obligations and liabilities of registered unions
It also stipulates the purpose for which funds can be utilized
By 1949, four central trade union organizations were functioning in the country: The All India Trade Union Congress, The Indian National Trade Union Congress, The Hindu Mazdoor Sangh, and The United Trade Union Congress
All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS) Centre of Indian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC) National Front of Indian Trade Unions (NFITU) National Labor Organization (NLO) Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC) and United Trade Union Congress - Lenin Sarani (UTUC - LS)
FORMS OF UNREST/DISPUTES
STRIKES: A strike is spontaneous and concerted refusal of work and withdrawal of labor from production temporarily. It is a collective stoppage of work for pressurizing their employers to accept certain demands. TYPES OF STRIKES:
SYMPATHETIC STRIKE: To show sympathy with workers in other industries GENERAL STRIKE: Strike by all or most of the unions in an industry or a region UNOFFICIAL STRIKE: Strike undertaken without the consent of the unions SECTIONAL STRIKE: Refusal of a section of a given class of workers to perfor their normal duties BUMPER STRIKES: to paralyze the industry firm by firm SIT DOWN /TOOL DOWN/PEN DOWN: Strike when unions plan strike and workers cease to perform but do not leave the place of work: SLOW DOWN STRIKE: Go-slow tactic, workers do not stop working but dot perform at their normal pace LIGHTNING STRIKE: Workers may go on strike without notice or at very short notice with an element of surprise HUNGER STRIKE: To gain sympathy from public and get noticed by employer workers may decide to forego food for a specified period. Such non-violent protests generally bring moral pressure on employers
FORMS OF UNREST/DISPUTES
LOCK-OUTS:
It is the counterpart of strike. It is the weapon available with employer to close down the factory till the workers agree to resume work on the conditions laid down by employer. If it is impossible to meet the demands of workers, employers may decide o go for lock-out An employer may also pull down the shutters so as to bring psychological pressure on the workers to agree to his conditions or face the closure of unit Gherao means to surround Group of workers initiate collective action aimed at preventing members of he management from leaving the office. This can happen outside the premises too Persons who atre under gherao are not allowed to move for a long time, sometime even without food or water National commission on labor has refused to accept it as a form of industrial protest While picketing workers carry/display signs ,banners and placards( In connection with dispute), prevent others from entering the place of work and persuade others to join the strike Boycott aims at disrupting the normal functioning of an enterprise, Through forceful and negative behavioral acts, strikers prevent others not to cooperate with employer
GHERAO:
LOCKOUT:
TERMINATION:
Main provisions of the Act are: Settlement machinery -Provides suitable machinery for investigation, just, equitable and peaceful settlement of industrial
disputes and aims to provide justice both to employers and workmen - Collective bargaining, Negotiation
Aims at promoting security, amity and good relations between employer and employee or between employers and workmen or among workmen Prevent illegal strikes and lockouts and explains the contingencies when these can be lawfully resorted to or when these can be declared illegal or unlawful. Provide conditions and relief to workmen in the matters of lay-offs, retrenchment, dismissals and victimization Provides conditions under which an industrial unit can be closed down
60 days notice to be given of intention to close down any undertaking Compensation to workmen in case of closing down
Get the workmen the right of collective bargaining and promote conciliation Lists down unfair labor practices on the part of both parties introduced in 1984
Compulsory Adjudication Reference by the Appropriate Government Sec. 10(1) S. 2-A, 33-A
LC, IT, NT
Publication of award
INDUSTRIAL DISPUTES
Publication of awards
Publication is must Time duration of 30 days is directory Award comes in to operation 30 days after publication Tribunal to recall the award
2. Stability of union
Unions have to be stable for collective bargaining to be effective union is able to honor the agreement.
5. Mutual respect
Relationship affected and process becomes tense and difficult if any party used unfair practices such as victimization.
Negotiations
Process depends on these factors:
1. Subject matter to be discussed 2. Persons involved 3. Circumstances under which the discussion is held.
A Typical Negotiation Process begins with each party stating its position. As discussion progresses, each party adjusts its demands to seek a mutually acceptable agreement.
Steps in Negotiation
1. Preparation
Each party must know what it wants.
2. Presentation
Each party presents its case.
4. Reaching an agreement
Parties sign a written statement on what have been agreed.
Industrial Disputes
An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment It is a disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions. When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes, picketing or gheraos.
As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen and which is connected with the employment or nonemployment or the terms of employment or with the conditions of labor, of any person.
This definition includes all the aspects of a dispute. It, not only includes the disagreement between employees and employers, but also emphasizes the difference of opinion between worker and worker. The disputes generally arise on account of poor wage structure or poor working conditions. This disagreement or difference could be on any matter concerning the workers individually or collectively. It must be connected with employment or nonemployment or with the conditions of labor.
From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production. This results in increase in the average cost of production since fixed expenses continue to be incurred. It also leads to a fall in sales and the rate of turnover, leading to a fall in profits. The employer may also be liable to compensate his customers with whom he may have contracted for regular supply. Apart from the immediate economic effects, loss of prestige and credit, alienation of the labor force, and other non-economic, psychological and social consequences may also arise. Loss due to destruction of property, personal injury and physical intimidation or inconvenience also arises.
Prolonged stoppages of work have also an adverse effect on the national productivity, national income. They cause wastage of national resources. Hatred may be generated resulting in political unrest and disrupting amicable social/industrial relations or community attitudes.
For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical consequences of forced idleness. The threat of loss of employment in case of failure to settle the dispute advantageously, or the threat of reprisal action by employers also exists.
COLLECTIVE BARGAINING
COLLECTIVE BARGAINING
Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry. It is the process of negotiation between firms and workers representatives for the purpose of establishing mutually agreeable conditions of employment. It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation.
COLLECTIVE BARGAINING
ILO has defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment/industrial relations with one another.
COLLECTIVE BARGAINING
Collective bargaining involves discussions and negotiations between two groups as to the terms and conditions of employment. It is called collective because both the employer and the employee act as a group rather than as individuals. It is known as bargaining because the method of reaching an agreement involves proposals and counter proposals, offers and counter offers and other negotiations.
is a continuous process which aims at establishing stable relationships between the parties involved.
not only involves the bargaining agreement, but also involves the implementation of such an agreement.
is a flexible approach, as the parties involved have to adopt a flexible attitude towards negotiations.
Distributive bargaining
It involves haggling (arguing) over the distribution .Under it, the economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one partys gain is another partys loss. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, distributive bargaining tends to be more competitive. This type of bargaining is also known as conjunctive bargaining.
Distributive bargaining
This is a negotiation method in which two parties strive to divide a fixed pool of resources ,often money, each party tries to maximize its share of distribution. The fixed resource is called fixed pie.So this is fixed sum game. The distributive bargaining is also called hard bargaining ,because of its highly competitive nature. Described as a win-lose bargaining.
Distributive Bargaining A competitive negotiation strategy also called claiming value or zero sum Used to decide how to distribute something of value Perception of a fixed pie (a fixed amount of stuff to be divided up) Assumes that the more one side gets, the less the other gets
Winning at Distributive Negotiation 1. Know yourself: Your BATNA (Best Alternative To a Negotiated Agreement) Your goals Your interests Your resource limitations
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Winning at Distributive Negotiation 2. Know your opponent Their BATNA Their goals Their interests Their resource limitations
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Integrative bargaining:
Integrative bargaining:
This involves negotiation of an issue on which both the parties may gain, or at least neither party loses. For example, representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. Here, both the parties are trying to make more of something. In general, it tends to be more cooperative than distributive bargaining. This type of bargaining is also known as cooperative bargaining.
Negotiations between a union and Management when the parties are not in direct conflict over an issue,and when both stand to benefit from continued discussions.
Integrative Bargaining
negotiators attempt to address needs and interests, not positions both parties willingly exchange information and ideas negotiators invent options for mutual gain negotiators use objective criteria for standards of performance
2. Understand the problem and bring interests and needs to the surface 3. Generate alternative solutions to the problem
4. Evaluate those alternatives and select among them
Attitudinal restructuring:
Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management. When there is a backlog of bitterness between both the parties, attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It develops a bargaining environment and creates trust and cooperation among the parties.
Intra-organizational bargaining
Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management. Even within the union, there may be differences between groups. For example, skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. Within the management also, there may be differences. Trade unions maneuver to achieve consensus among the conflicting groups.
Intra-organizational bargaining
is the bargaining that takes place within management or within a trade union before interorganizational bargaining occurs between the two sides. It occurs because there may be different interests and perspectives within each side, and these have to be resolved through bargaining to produce an agreed set of objectives to take to the other side.
Importance to employees
Collective bargaining develops a sense of self respect and responsibility among the employees. It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group. Collective bargaining increases the morale and productivity of employees. Effective collective bargaining machinery strengthens the trade unions movement.
Importance to employees
It restricts managements freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged.
The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.
Importance to employers
It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. Collective bargaining plays a vital role in settling and preventing industrial disputes.
Importance to society
Collective bargaining leads to industrial peace in the country It results in establishment of a harmonious industrial climate which supports which helps the pace of a nations efforts towards economic and social development since the obstacles to such a development can be reduced considerably. The discrimination and exploitation of workers is constantly being checked. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.
INDUSTRIAL DISPUTES
An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment. It is a disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions.
INDUSTRIAL DISPUTES
When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes, picketing or gheraos.
INDUSTRIAL DISPUTES
As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen and which is connected with the employment or nonemployment or the terms of employment or with the conditions of labor, of any person.
INDUSTRIAL DISPUTES
This definition includes all the aspects of a dispute. It, not only includes the disagreement between employees and employers, but also emphasizes the difference of opinion between worker and worker. The disputes generally arise on account of poor wage structure or poor working conditions. This disagreement or difference could be on any matter concerning the workers individually or collectively. It must be connected with employment or non-employment or with the conditions of labor.
INDUSTRIAL DISPUTES
From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production. This results in increase in the average cost of production since fixed expenses continue to be incurred. It also leads to a fall in sales and the rate of turnover, leading to a fall in profits. The employer may also be liable to compensate his customers with whom he may have contracted for regular supply. Apart from the immediate economic effects, loss of prestige and credit, alienation of the labor force, and other non-economic, psychological and social consequences may also arise. Loss due to destruction of property, personal injury and physical intimidation or inconvenience also arises.
INDUSTRIAL DISPUTES
For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical consequences of forced idleness. The threat of loss of employment in case of failure to settle the dispute advantageously, or the threat of reprisal action by employers also exists.
INDUSTRIAL DISPUTES
Prolonged stoppages of work have also an adverse effect on the national productivity, national income. They cause wastage of national resources. Hatred may be generated resulting in political unrest and disrupting amicable social/industrial relations or community attitudes.
STRIKES
A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. When workers collectively cease to work in a particular industry, they are said to be on strike.
STRIKES
According to Industrial Disputes Act 1947, a strike is a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment. This definition throws light on a few aspects of a strike. Firstly, a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Secondly, it also includes the refusal of a number of employees to continue work under their employer.
STRIKES
In a strike, a group of workers agree to stop working to protest against something they think is unfair where they work. Labours withhold their services in order to pressurize their employment or government to meet their demands. Demands made by strikers can range from asking for higher wages or better benefits to seeking changes in the workplace environment. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems.
Causes of strikes:
Strikes can occur because of the following reasons: Dissatisfaction with company policy Salary and incentive problems Increment not up to the mark Wrongful discharge or dismissal of workmen Withdrawal of any concession or privilege Hours of work and rest intervals Leaves with wages and holidays
TYPES OF STRIKE
Economic Strike:
Under this type of strike, labors stop their work to enforce their economic demands such as wages and bonus. In these kinds of strikes, workers ask for increase in wages, allowances like traveling allowance, house rent allowance, dearness allowance, bonus and other facilities such as increase in privilege leave and casual leave.
TYPES OF STRIKE
Sympathetic Strike:
When workers of one unit or industry go on strike in sympathy with workers of another unit or industry who are already on strike, it is called a sympathetic strike. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike.
TYPES OF STRIKE
Sit down Strike:
In this case, workers do not absent themselves from their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for employer to defy the union and take the workers' places. In June 1998, all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the nonacceptance of their demands by the state government.
TYPES OF STRIKE
Slow Down Strike: Employees remain on their jobs under this type of strike. They do not stop work, but restrict the rate of output in an organized manner. They adopt go-slow tactics to put pressure on the employers.
Sick-out (or sick-in): In this strike, all or a significant number of union members call in sick on the same day. They dont break any rules, because they just use their sick leave that was allotted to them on the same day. However, the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike.
TYPES OF STRIKE
Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions. In 2004, a significant number of advocates went on wildcat strike at the City Civil Court premises in Bangalore. They were protesting against some remarks allegedly made against them by an Assistant Commissioner
LOCKOUTS
A lockout is a work stoppage in which an employer prevents employees from working. It is declared by employers to put pressure on their workers. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers weapon while a strike is raised on part of employees. Acc to Industrial Disputes Act 1947, lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.
LOCKOUTS
A lockout may happen for several reasons. When only part of a trade union votes to strike, the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work. For example, if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive, the employer may declare a lockout until the workers end the strike. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement.
PICKETING
PICKETING When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets are workers who are on strike that stand at the entrance to their workplace. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. The purpose of picketing is: to stop or persuade workers not to go to work to tell the public about the strike to persuade workers to take their union's side
GHERAO
Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins. The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent.
STATISTICS
STATISTICS
As can be seen from the chart, there has been a steep decline in the number of strikes and lockouts. This continuous decline in strikes and lockouts indicates that the industrial relations in India are improving. There were 227 strikes in 2005, resulting in the loss of 10.81 million man-days, while the number of lockouts stood at 229 with a loss of 18.86 million man-days. In January-September 2006, there were only 154 strikes and 192 lockouts across the country, as compared to the statistics of 2005, which resulted in the time loss of 3.16 million man-days and 10.60 million man-days respectively.
STATISTICS
The number of strikes and lockouts, taken together, was down by 4.4 per cent in 2005. During 2005, West Bengal experienced the maximum instances of strikes and lockouts (19216) followed by Kerala (3619) and Rajasthan (19247). Industrial disturbances were concentrated mainly in manufacturing (textile), financial intermediation, agriculture and mining and quarrying industries during 2005.