module 4 hrm - industrial relations

Industrial Relations

Meaning The relationship between employees or

trade unions and employers

Objectives of industrial relations

Maintain sound and harmonious relations between employees and employers Safeguard the interests of labour as well as management Raise productivity Avoid industrial conflict Establish and maintain industrial democracy Reduce tendency of higher labour turn over Eliminate strikes, lockouts & gheraos Establish government control over plants which are running on loss Encourage and develop trade unions Ensure healthy and balanced social order

Approaches to IR

Psychological Approach Sociological approach V.V.Giri approach (late president of India

– mutual settlement of disputes, collective bargaining)

Gandhian approach (based on fundamental principles of truth, non violence & non possession)

HRD approach

Approaches to IR

Unitary approachIR is grounded under in mutual co-

operation, individual treatment, team work & shared goals.

Unions cooperate with the management and the management’s right to manage is accepted because there is no “wethey” feeling.

Approaches to IR

Pluralistic Approach-Organizations as a collection of competing intersts, where the management’s role is to mediate among the different interest groups

- Trade unions as legitimate representatives of employee interests

-Stability in IR as the product of concessions & compromises between management and unions

Approaches to IR

Marxist Approach- Industrial conflicts has a wider meaning- Conflict arise not only out of rift between

management and workers but also because of the divisions in the society

- Industrial conflict is equated to social and political intersts

Parties to IR

Employee Employee

association Government

Employer Employer

Associations Courts & tribunals

Role of Government

Till 19th century governments followed laissez faire policy – IR was left to manages & workers

Towards the end of 19th century the approach changed

Government setup wage boards, labour courts, tribunals & enacted laws

Role of employers

Creating & maintaining employee motivation

Obtaining commitment from work force Establishing mutually beneficial channels

of communication Achieving higher levels of efficiency Negotiating terms & conditions of

employment Sharing decision making with employees

Role of trade unions

Representing employees in collective bargaining

Developing machinery for the avoidance of disputes

Providing information on employee relations & give advise

Representing members on national issues

Industrial disputes

Any conflict between employees and employers, between employers and employers, between employees and employees.

Causes of disputes

Wage demandsUnion rivalryPolitical interferenceMultiplicity of labour lawsUnfair labour practices(unwilling to discuss disputes, to recognize a particular trade union, unfair negotiations, lack of power to the employees, unfair disciplinary actions, abolishing works of regular nature)

Effects of industrial disputes

Strikes ( Economic, sympathetic, general, sit down, slow down, lightening, hunger)

Lock outs Gherao Picketing Boycott

IR Machinery

1. Work committees (when more than 100 workers are employed)- Joint management council

- Shop council (manufacturing & mining industries – 500 or more)- Joint council

2. Grievance redresal procedure3. Tripartic bodies (indian labour conference,

standing labour committes, wage boards)4. Grievance settlement authority

Conciliation officer Conciliation board Courts of inquiry- Labour courts, Industrial tribunals,

National Tribunals

Settlement of disputes

Collective bargaining Code of discipline Arbitration Conciliation

Collective bargaining

Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs.

Features

Group & collective actionStrengthContinuous processFlexibleVoluntaryDynamic

Power relationshipBipartite processTwo party process

Approaches to Collective bargaining

As a process of social change As a peace treaty between conflicting

parties Industrial Jurisprudence

Objectives

Maintain cordial relationships Settle disputes or conflicts Protect the interests of the workers Ensure participation of trade unions

Types Distributive (distribution of surplus) Integrative (win – win) Attitudinal structuring Intra-organizational

Process

1. Preparing for negotiations- Employer1. Prepare specific proposals for changes2. Determine the general size of the economic package3. Prepare statistical displays & supportive data4. Prepare bargaining bookEmployees1. Financial position of the company & its ability to pay2. Attitude of management towards various issues3. Attitude & desires of employees

Process

2. Identifying bargaining issues- Wage related issues- Supplementary economic benefits- Institutional issues- Administrative issues

Process3. Negotiating4. Reaching the agreement5. Ratifying the agreement6. Administration of agreement

Arbitration

Refers to a procedure in which a neutral third party studies the dispute, listen to both the parties & collects information, makes recommendations which are binding on both the parties.

Arbitration & Industrial Disputes Act, 1974

Effectiveness of Arbitration:

Establishes by parties themselves Delays are cut down & settlements are

speeded up

Expensive judgment depends on arbitrator Too much arbitration – not a sign of

healthy IR

Conciliation

The process by which representatives of workers & employers are brought together before a third party with a view to persuade them to arrive at an agreement by mutual discussion.

The industrial disputes act 1947 provides for the appointment of conciliators.

It may be one person or a group

Duties of the conciliator

Mediator Hold conciliatory proceedings Investigate the dispute Send a report & memorandum of

settlement to appropriate government To send a full report to the appropriate

government setting for the steps taken in case no settlement is arrived at.

The conciliator shall submit the report within 14 days from the date of commencement

The act prohibits any kind of strikes during the time of conciliation

The conciliator has no powers to force settlement

Adjudication

A mandatory settlement of an industrial dispute by a labour court or a tribunal

Section 10 of Industrial disputes act

Disputes are generally referred to adjudication on the recommendation of the conciliation officer.

The government has discretionary powers to accept the recommendation or not

Criticized because of the delay involved

Future trends in IR

Globalization & Privatization Decentralization of IR Introduction of corporate culture New actors and the emerging dynamics Significant shift from strikes to law suits