pesentation on ethics in hrm and problem created
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4/13/12
PRESENTATION ON
PROBLEMS CREATED ANDFACED BY LABOUR UNION
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Trade Unions
Trade unions are organisations thatrepresent people at work. Theirpurpose is to protect and improve
people's pay and conditions ofemployment. They also campaign forlaws and policies which will benefitworking people.
Trade unions exist because anindividual worker has very little
power to influence decisions that are
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ORIGIN & GROWTH OF TRADE UNIONMOVEMENT
Industrialization brought about new economic and
social order in societies. TU emerged as a result ofindustrialization in new social order
First workers union in India under the leadership of
Mr Lokhande was developed in 1890
Beginning of labor movement in the modern sensestarted after the outbreak of World War I
Economic. Political and social conditions influencedthe growth of trade union movement in India.
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In 1920 AITUC( All India Trade Union Congress) wasformed- the 1st All India trade union.
World War II brought splits in AITUC. Efforts of Indian
National Congress resulted in the formation ofINTUC( Indian National Trade Union Congress)
Socialists separated from AITUC formed HMS( HindMazdoor Sabha) in 1948
Some other unions were also formed. They were BMS( Bhartiya Majdoor Sangh) in1955, HMP( Hind MajdoorPanchayat) in 1965, CITU( Centre of Indian TradeUnion ) in 1970
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PRINCIPLE OF TRADE UNION
1. UNITY: Unity is strength
2. EQUALITY: Workers must not bediscriminated wrt caste, creed, sex etc.
Each worker should get equal pay for equal
work
3. SECURITY: Security of their employment
and their families must be safeguarded
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Types of Unions
1. Craft union
Same craft or occupation
1. General union
For unskilled workers
1. Staff union
Non-manual workers
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Types of Unions
4. Industry union
Same industry, regardless of
skills, occupation or job
4. House union (company or
enterprise union) All members are from the same
company regardless of
occupation or job
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Why Workers JoinUnions1. Higher wages and better working
conditions
Collective bargaining with employer
2. Job security
More secured with collective agreement
3. Social need
Meet co-workers from other departments orcom anies
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Why Workers JoinUnions4. Upgrading of skills
Attend training courses organized by
union
5. Peer pressure
Colleagues are members
6. Self-fulfillment
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REASON New members % Members %
Support if I have a
problem at work
81.5 65.9
Improved pay and
conditions
42.0 39.6
Most people at work
are members
15.4 32.5
I believe in trade
unions
18.2 37.5
Industrial
benefits/services
7.4 9.1
Financial services 3.5 2.5
Other 6.8 5.3
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OBJECTIVES/IMPORTANCE OF TRADE UNIONS
Wages & salaries
Policy matter but differences in implementation, so comes therole of trade union
Working conditions
safeguarding workers health: Lighting & ventilation,sanitation, rest rooms, safety equipments ( hazards free
atmosphere , drinking water, refreshments, working hours, leave& rest, holidays with pay, job satisfaction, social security benefitsand other welfare measures
Discipline
Protect workers from victimization by management- transfers,suspensions, dismissals etc
Personal policies
Fighting against improper implementation of personnel
policies.
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Welfare Solving difficulties of workers through collectivebargaining wrt sanitation, hospitals, quarters, schools,
colleges and other basic amenities
Employer- employee relations Bureaucratic attitude and unilateral thinking of mgmt maylead to conflicts
Trade unions go for constant negotiations for industrialdemocracy and peace.
Negotiating machinery Based on give and take principle, negotiations continuetill parties reach an
agreement. Protect interests of workers throughcollective bargaining
Safeguarding organizational health
Methods evolved for grievance redressal, techniquesadopted to reduce
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ACTIVITIES OF TRADE UNIONECONOMIC: Improved economic status, shorter workingday, improvement in living and working conditions,better health & safety standards, upgrading welfarefacilities, reducing inequalities- both internally &externally
POLITICAL: Seeking / obtaining political power throughpolitical affiliations, lobbying activities to influence thecause of labor and legislations, participating &representing workers on bipartite forums,
developing revolutionary ideologies among workers,protesting against Govt. decisions
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SOCIAL: Initiating & developing workers
education system, organizing welfare &recreational facilities, providing monitory andother help during period of strike andeconomic distress, running cooperative
welfare schemes and societies, hosing needs/community development, organizing culturalfunctions & social welfare programmes
NATIONAL / INTERNATIONAL LEVEL:Representing workers at the national level onadvisory committees, associating withnational federations for unity & solidarity,Raising funds in case of national /
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FEATURES OF AN EFFECTIVETRADE UNION
Internally democratic
Have a strong leadership
Exhibit a responsibility towards their workermembers
Committed to promote industrial peace andharmony
Inclined towards collective bargaining that is
collaborative and not competitrive Possess financial security
Adaptable to change
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ow o ra e n onsRecruit Their Members?
Different unions cover different jobsand industries. People are able to jointhe most appropriate union for their jobor sector.
People are recruited to unions indifferent ways. Most people find outabout the union by talking to
colleagues at the workplace and then
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a s e ruc ureOf Trade Unions?
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a o n ons o
Representation
Negotiation
Information and advice
Member services
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Trade Unions InIndustrial Disputes?
Most "collective bargaining" takesplace quietly and agreements are
quickly reached by the union and theemployer. Occasionallydisagreements do occur and the two
sides cannot agree. In these cases theunion may decide to take industrialaction.
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FORMS OF UNREST/DISPUTES
STRIKES:
A strike is spontaneous and concertedrefusal of work and withdrawal of laborfrom production temporarily. It is acollective stoppage of work forpressurizing their employers to acceptcertain demands.
TYPES OF STRIKES:
SYMPATHETIC STRIKE: To show sympathy withworkers in other industries
GENERAL STRIKE: Strike by all or most of the
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SECTIONAL STRIKE: Refusal of a section ofa given class of workers to perfor theirnormal duties
BUMPER STRIKES: to paralyze the industryfirm by firm
SIT DOWN /TOOL DOWN/PEN DOWN: Strikewhen unions plan strike and workerscease to perform but do not leave the
place of work
SLOW DOWN STRIKE: Go-slow tactic,
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FORMS OF UNREST/DISPUTESLOCK-OUTS:
It is the counterpart of strike.
It is the weapon available with employer to close down the factory tillthe workers agree to resume work on the conditions laid down byemployer.
If it is impossible to meet the demands of workers, employers maydecide o go for lock-out
An employer may also pull down the shutters so as to bringpsychological pressure on the workers to agree to his conditions orface the closure of unit
GHERAO:
Gherao means to surround
Group of workers initiate collective action aimed at preventingmembers of he management from leaving the office. This can happenoutside the premises too
Persons who atre under gherao are not allowed to move for a long
time, sometime even without food or water
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PICKETING and BOYCOTTWhile picketing workers carry/display signs ,banners and
placards( In connection with dispute), prevent others fromentering the place of work and persuade others to join the strike
Boycott aims at disrupting the normal functioning of anenterprise, Through forceful and negative behavioral acts,strikers prevent others not to cooperate with employer
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MANAGEMENT ACTION TO COUNTER STRIKES
EMPLOYERS ASSOCIATION:
Employers may form their unions to collectively oppose the working classand put pressure on trade unions
LOCKOUT:
It is the counterpart of strike.
An employer may close down the place of employment temporarily. It isvery powerful weapon available with employer to pressurize workers tillthey agree to resume work on the conditions laid down by employer.
If it is impossible to meet the demands of workers, employers may decide ogo for lock-out
An employer may also pull down the shutters so as to bring psychologicalpressure on the workers to agree to his conditions or face the closure ofunit
TERMINATION:
Employer may resort to suspension or disciplinary action leading totermination of workers on strike. The list of employees so suspended or
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Law Over The Last Few YearsAffected Unions?
Since 1979 the ConservativeGovernment has introduced manychanges to the laws on
employment rights and on tradeunion affairs.
Many other European countriesare currently improving theiremployment rights and
increasing employee
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Challenges FacingTrade Unions?
the last two decades trade unions havefaced major economic and politicalchange. The kind of jobs that people do
and the type of industries they work inhave changed dramatically. Themanufacturing sector, which used to beone of the most important industries in
Britain, has shrunk dramatically and newsectors - like the finance and voluntarysectors - are becoming more importantto the British economy.
ow ave n ons
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ow ave n onsResponded To These
Challenges? launching major recruitment drives andtrying to attract new members in jobsand industries which in the past have
not had high union membership. putting education and training high up
the bargaining agenda so that theirmembers have the skills andqualifications to improve theiremployment prospects
forging a new deal at the workplace by
working in partnership with employers
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TRADE UNIONISM IN INDIA TODAY
Unionization according to industry/region/state
70,000 registered trade unions , many not regisered
9 central unions, all affiliated to political parties
2 % of the union force unionized
PSUs: Industrial level collective bargaining in coal/steel,enterprize level elsewhere
Private sector: Plant level collective bargaining
Union density according to the size of of industry
Craft unions in Govt transport sector
Unionization in India under recession
Twin battle against Inter Union Competition and assertive
management
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MAJOR PROBLEMS FACED BY BTRADEUNIONS IN INDIA
Outside or political leadershipMultiplicity of trade unions
Small size of unions
Low membership
Uneven growth
Poor financial position
Low level of knowledge of labor legislation
Fear of victimization
TRADE UNION ACT (1926)
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TRADE UNION ACT (1926)
It legalizes the formation of trade unions by allowing employees the right toform and organize unions and also strengthen bargaining power of
workers
Act aims to provide law for the registration of trade unions and get itregistered under the act
Permits any seven persons to form a union
OBJECTIVES
Lay down conditions governing the registration of trade unions
Defines obligations of trade unions
Prescribe rights and liabilities of a registered trade union
STATUS OF A REGISTERED UNION
It becomes a body corporate
It gets a common seal
It can buy and hold movable and immovable property
TRADE UNION ACT (1926)
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TRADE UNION ACT (1926)
REGISTRATION:
A trade union formed with at least 7 members may apply for registration with following
documents
A copy of the rules of trade union
Name, occupation and addresses of members
Name of trade union and address of its office
Office Bearers of the trade unions
In case already in operation- submit statement of accounts/assets and liability statement
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 andmanner 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
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INDUSTRIAL DISPUTE ACT(1947)Ever expanding complex multi product/project companies with diverse andconflicting interests of workmen and employers, growing labor consciousness,resulting in strikes and lockouts, lead to the outcome of
Industrial dispute Act, 1947
Main provisions of the Act are:
Settlement machinery
-Provides suitable machinery for investigation, just, equitable and peaceful settlement ofindustrial disputes and aims to provide justice both to employers and workmen
- Collective bargaining, Negotiation
Aims at promoting security, amity and good relations between employer andemployee 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 orunlawful.
Provide conditions and relief to workmen in the matters of lay-offs,retrenchment, dismissals and victimization
Last in first out in a retrenchment case or specific reasons in case of others
Provides conditions under which an industrial unit can be closed down
60 days notice to be given of intention to close down any undertaking
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Trade Unions OnBusiness?Trade unions have an important role in:
improving communication betweenemployees and managers so that
employees can understand and becommitted to the organisation'sobjectives
negotiating improvements to pay andworking conditions so that people feelmore satisfaction at work and staylonger in their jobs
encouraging companies to invest in
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Between Trade Unions AndPolitical Parties?
Unions try to influence the politicalparties and win support for their policies.They lobby MPs and peers of all parties,
keep them up to date with research andcampaigns and encourage their supportduring parliamentary debates and thescrutiny of bills.
Most unions find that their closestrelationship is with the Labour Party
because of a shared history and
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Between Trade Unions AndGovernment?
Unions seek to work with thegovernment of the day to win support fortheir policies. They put their case to
ministers and civil servants, and someinvite ministers to speak at unionconferences.
While the previous Conservativegovernment brought in legislation hostileto trade union and it was generally
opposed to extending rights at work, it
T d U i P
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Trade Union Power
GOVERNMENT LEGISLATION
Legal Immunity
Before 1979 employers were forbiddenfrom taking civil action in court fordamages resulting from industrial actionby unions. This was a result of the 1974
Trade Union and Labour Relations Act.
However the 1982 Employment Act
made unions liable for any action taken
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The Closed Shop
Under this system employees wereobliged to be a member of the union if a
closed shop agreement existed. Anyonerefusing to join had no defence againstunfair dismissal for that reason.
The 1980 and 1982 Employment Acts
meant that any union agreement cominginto existence after August 1980 had tobe approved by an 80% vote in a secret
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Other Legislation
The 1984 Trade Union Act forced unionsto take secret ballots before action took
place if the action was to be legal.
The 1993 Trade Union Reform and
Employment Rights Act led to thefollowing measures:
The right for workers to have a postal
Ballot on union action and the right to
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PUBLIC OPINION
Union action is likely to be moreeffective if there is support from the
public. In recent years unions havebeen portrayed by the media as beingdisruptive to UK business and unwillingto change in the face of competition, andhave lost support as a result.
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rgan se o c a
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rgan se o c aaction
WORK TO RULE
Means that workers do not carry outduties that are not in their employment
contract. They also may carry outmanagement's orders to the letter. Thiscan mean workers observing safety lawsto the letter, when they are normally
disregarded. Working to rule does notmean that workers are working inbreach of their contract, simply that they
carry out tasks exactly as their contractsstate. This has the im lication that tasks
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OVERTIME BAN
This limits the working hours to theagreed contract of employment for
normal hours. It is used by unions todemonstrate that workers are preparedto take further collective actions if theirdemands are not met. It has the
drawback for workers because it resultsin lost wages. It can lead to a decreasein costs for the business, but it can alsoresult in a fall in the production. It canbe es eciall effective where roduction
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STRIKE
This is seen as the ultimate sanctionthat can be used by the trade unions.
They are normally called in connectionwith terms and conditions ofemployment and wages. They can beofficial or unofficial. Official strikes occur
when the union officially supports itsmembers in accordance with union rulesduring a dispute. Unofficial strikes haveno union backing or support. They havein the ast usuall been called b sho
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PICKETING
Primary Picketing is legal. This involvesmembers of a union on strike standing
outside a firms entrance trying topersuade other workers not to cross it.
Secondary Picketing is not legal. Thisinvolves workers who are on strike fromone firm trying to dissuade workers at afirm not involved with the strike fromgoing to work. Secondary picketing is
pro ems or o
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pro ems or oemployers and
employees:EMPLOYERS PROBLEMS :
A go slow or work to rule can reduce
output. Strike action could meanthreat orders are unfulfilled andrevenue and profits could fall.
If it causes production to stop, thenmachinery and other resources will be
lying idle. Businesses have fixed
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EMPLOYEES PROBLEMS
A work to rule, go slow or a strike can lead to
a loss of wages. Prolonged industrial action may lead to the
closure of the plant. Employees would thenbe made redundant.
If industrial action fails then it can leave theemployees in a weaker position than before.Members may also leave a union if they feel
that the union is unable to support them.
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THANK YOU