tumaini university dar es salaam college

TUMAINI UNIVERSITY DAR ES SALAAM COLLEGE

Human Resources Relations [HRM 301]Presented

By Maurus Mpunga

COURSE COVERAGE

This course aims to provide students with a solid grounding in the fundamentals of human resource management and labor relations concepts and practices.

Contents -History and dynamics of Labour Relations Meaning Historical background of Labour relations The world of Labour Market

COURSE COVERAGE

Contents- Labour Relations Process and Practices - Collective Bargaining and Organizational Rights - Negotiation skills - The concepts of workers Participation -Industrial Action - Dispute resolutions

COURSE COVERAGE

Contents-Grievance, Discipline and Retrenchment procedures -Introduction -Grievances and disputes -Meaning of Disciplining -Types of Discipline -Principles of Corrective Disciplining -Why Managers Discipline Employees -Principles of Corrective Disciplining -Disciplinary Policies and Procedure - Legal frame work of discipline in Tanzania

Historical background of Labour relations

What is Labour Relations?________________________________________

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Introduction The relationship between the employers and

employees and trade unions is called Industrial Relations. Harmonious relationship is necessary for both the employers and employees to safeguard the interests of both the parties of production.


What is Labour Relations?Encyclopedia Article for labour relations defined

Labour Relations as “collective relations between the management of an organization and its employees or employees' representatives”


What is Labour Relations?Saleemi(1997) express Industrial Relations to be

that task which brings harmonious relationship between employees and employer,

What is Labour Relations?

'Industrial relationship is the composite result of the attitudes and approaches the employers and employees towards each other with regard to planning, supervision, direction and co-ordination of the activities of an organization with a minimum of human efforts and friction, with an animating sprite of co-operation and with proper regard for the genuine well-being of all the members of the organization[ Tead and Matcal ]

What is Labour Relations?

Therefore It is clear from the analysis of the above definitions that employment relations are generally called industrial relations or Labour relations. It is a relationship between employer and employees employer and employee and trade unions and employees.


Labour relations has its roots in the industrial revolution which created the modern employment relationship by producing free labor markets and large-scale industrial organizations with thousands of wage workers. As society wrestled/struggle with these massive economic and social changes, labor problems arose. Low wages, long working hours, monotonous and dangerous work, and abusive supervisory practices led to high employee turnover, violent strikes, and the threat of social instability.

http://en.wikipedia.org/wiki/Industrial_revolution

http://en.wikipedia.org/wiki/Strike_action


Intellectually, Labour relations was formed at the end of the 19th century as a middle ground between classical economics and Marxism, with Sidney Webb and Beatrice Webb’s Industrial Democracy (1897) being the key intellectual work. Industrial relations thus rejected the classical econ.

http://en.wikipedia.org/wiki/Sidney_Webb

http://en.wikipedia.org/wiki/Beatrice_Webb

Historical Background of Labour relations

In The Origins and Evolution of the Field of Industrial Relations in the United States, Bruce E. Kaufman attributed the popularization of the term "industrial relations" to a Commission on Industrial Relations created by the federal government in 1912. That commission was created to investigate and report on conditions in "industry" that gave rise to labor problems, including conflict between employers and employees (and their organizations) that often erupted in violence and strikes.

Historical………

Thus the term "industrial relations" referred to "relations" between employers and employees in "industry." Better industrial relations were seen as the solution to labor problems.

Historical………

Although the term "industry" or "industrial" (as in "industrial relations") connotes for many "heavy" industry (e.g., steel mills, auto assembly plants), this connotation is much narrower than the field's conception of industrial relations. At least to most industrial relations scholars, the term "industrial" is used broadly, as in distinguishing industrialized societies from agrarian societies

Historical………

Thus industrial relations refers to relations between employers and employees not only in heavy industry but also in retailing, government, financial services, education, and recreational services, for example. In fact, even agricultural production, when organized in a form where an employer relies extensively on the services of hired workers, as is increasingly the case, can be said to fall within the purview of industrial relations.

Historical………

In any case, conceptions of industrial relations as the study of "all aspects of people at work" clearly do not limit the field to formal or legal definitions of employment.

Historical………

The Origin of Labour relations can be traced to the emergence of trade unionism during British colonial rule, when trade unions had to struggle for political and social status in the post-slavery and indentured labour era. Trade unions originally had difficulty in establishing their legal position.

Historical………

Their legal existence was eventually based on Trade Union Laws enacted between 1919 -1950, with subsequent legislation incorporating and maintaining the original protection of their immunities from criminal prosecution for breach of contract, agreement or trust.

Historical………

Trade Unions joined the political struggle for voting rights, public education and social legislation in a fight against the interests and prejudices of the traditional colonial society. They were initially, in essence, part of the nationalist political movements for political independence.

Historical………

In this context, where the trade unions had to fight for political and social status, the labour relations systems reflected a greater degree of political involvement and action to influence public policy. In many instances, their successes could be attributed to their combative and adversarial approaches in alliances with political forces.

Historical………

Labour relations were accordingly shaped by the authoritarian nature of social relations with the plantocracy, which controlled and dominated the way in which labour issues were dealt with in major industries and enterprises. This was countered by political actions on the part of the trade unions

Historical………

Their agitation and protests led to the enactment of labour legislation by the colonial power, which recognized and protected trade unions’ rights, and established state institutions to promote a system of industrial relations designed to manage industrial conflicts, but without a corresponding emphasis and institutions to minimize such conflicts and promote the forging of greater consensus

Historical………

However, given the nature and development of social and political systems, labour relations largely were conducted in an adversarial manner and this approach still persists in contemporary systems among Caribbean countries both in the political and industrial relations arenas

Historical………

Plantation life and poor social conditions for the national communities in the Caribbean provoked unrest and upheavals on a wide scale in the 1930’s throughout the British West Indies. This led to the appointment of a Royal Commission under Lord Moyne in 1938 to investigate and report on the labour and social conditions in the British West Indian colonies.

Historical………

The Commission reported that the conditions were harsh and oppressive for workers whose employment and human rights were virtually unprotected. Among the Commission’s recommendations was one for the enactment of labour laws. Labour Ordinances (Labour Acts) in the English-speaking Caribbean were consequently enacted in the 1940s and provided for the establishment of the Labour Departments under Commissioners of Labour “for the regulation of the relationship between employers and employees and for the settlement of differences between them”.

Historical………

These developments contributed to the foundation and the institutionalized framework for the conduct of industrial relations. Industrial relations is therefore located and anchored within the system of labour administration. The Labour Departments and the social partners, represented by trade unions and employers and their organizations, constitute the tripartite pillars of the industrial relations system.

Historical………

At the national level, the trade unions are organized under national congresses, while the employers are organized under the banner of national employers’ federations. The Labour Departments are required to provide effective labour administration services to workers, trade unions, employers and their organizations.

Historical………

This is done through the Labour Commissioners and the technical staff of the Departments of Labour in their technical and advisory services with respect to national labour policies, labour relations including conciliation/mediation, labour inspection, employment and labour market, tripartism and social dialogue, and other labour administration functions in terms of coordination with state and social partners’ agencies.

The world of Labour Market

A labour market can be understood as the mechanism through which human labour is bought and sold as a commodity and the means by which labour demand (the number and type of available jobs) is matched with labour supply (the number and type of available workers). As such, the labour market constitutes the systematic relationship that exists between workers and work organisations.

Labour Market……..

In order to achieve its strategic objectives, a fundamental concern for an organisation is to ensure that it has the right people with the right skills, knowledge and attributes in the appropriate positions


Like any other market, labour market refers to the place where the bargaining for employing a particular type of labour takes place. It refers to the place where the suppliers of labour i.e. workers and those who are in demand for labour i.e. the producers come into one another’s contact and jostle for their benefits and respective interests


If defined from a purely theoretical aspect, labour market is ‘a process by which suppliers of a particular type of labour and demands for that type of labour balance or seek to obtain a balance”.

Differences between labour market and commodity market.

Labour Market is significantly different from the commodity market. The nature of labour is entirely different from the commodities, for the production of which labour is required. Labour is required for production whereas the commodities are consumed or used up in production. Labour is sensitive to the price paid but the commodities are blocks in this aspect.


Following are the major distinctions between the labour market and the commodity market:

• Labour is highly responsive to the wage and any changes to be brought therein.

• In the commodity market, it is the capitalist who represents the supply side, but in the case of labour market, it is the workers who are the suppliers of he labour.


• In the commodity market, commodities being lifeless objects do not form trade unions but in the case of labour market, trade unions and other workers; organizations play a remarkable part in the determination of wages.

• Ownership of a commodity is ever changing and it happens every time a commodity is sold, but in the case of labour in the labour market, the ownership cannot be changed.

Characteristics of Labour Market.

Relationship between employer and worker is more durable

Unlike the commodity market, where the relationship between the producer and the consumer is short-lived, the employer and the worker enjoy more durable relationship in the labour market. It is expected that this relationship will continue for the time to come. The relationship between the employers and the producers may be affected by several personal factors.


MobilityLabour is immobile owing to various factors.

Unlike the commodities, it is beyond the fact that the labour can move as freely as the commodities. Factors, affecting the mobility of the labour market is given below:

- Job preferences of the labourers.- Wages offered at the different places of work.

Factors, affecting the mobility of the labour market is given below:

- Family considerations.- Future prospects.- Illiteracy and ignorance on the part of the

labourers about the job opportunities and other facilities.

-Nature of work offered at the new place.-Other factors, including the worker’s attitude

towards the new job etc.


Imperfect MarketLabour market is a purely an imperfect market

and there is no ‘normal rate’ of payment. Diversity of wage exists everywhere, in all the trades, for the same type of work.


Monopsony in the labour market is more common.Monopsony means that there is a control of buyer over

the demand for a commodity and the extent of monopsony depends upon the nature of competition for employing the labour. In comparison to the workers, the employers constituting the demand for the commodity are more at ease in employing the type of labour they demand. The labour market becomes more monopsonic, in the overpopulated and under-developed economies.

Peculiarities of labour markets

1. Labor is more than a commodity. That is, unlike inanimate factors of production such as machinery and raw materials, the work of human beings raises questions about the impact of work and work relations upon employees, questions that are societal concerns


2. There are inherent conflicts of interest between employers and employees not only in terms of economic matters (e.g., wages versus profits), but also in terms of inherent friction in superior-subordinate relations.

http://www.referenceforbusiness.com/knowledge/Friction.html


3. There are large areas of common interests between employers and employees despite their conflicting interests, and important interdependencies (e.g., firms need workers and workers need jobs). These compel employers and employees to resolve their conflicting interests for the sake of mutual benefits.


4. There is an inherent inequality of bargaining power in most individual employer-employee relationships, and thus collective representation of employees (e.g., unions) is often necessary to establish true freedom of contract. That is, it is not sufficient to argue that since employer and employee are each legally free to establish or terminate an employment relationship, that they are then on equal footing.

Labour Relations Process and Practices

Collective Bargaining and Negotiation skills Meaning Collective bargaining is a process of negotiating

between management and workers represented by their representatives for determining mutually agreed terms and conditions of work which protect the interest of both workers and the management.

Meaning of collective Bargaining

According to Dale Yoder ‘collective Bargaining is essentially a process in which employees act as a group in seeking to shape conditions and relationships in their employment’.

Michael J. Jucious has defined collective bargaining as ‘process by which employer, on the one hand, and representative of employees, on the other, attempt to arrive at agreements covering the conditions under which employees will contribute and be compensated for their services’

Meaning of 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.

Features of collective Bargaining

• Collective bargaining is a group action• Collective bargaining is an art.• Collective bargaining is a complementary and not

competitive process.• It’s a continuous and logical process.• It’s a step towards industrial democracy: working

together, thinking together and deciding together.• It’s a Bipartite process.

Scope of Collective Bargaining

The scope of collective bargaining is very wide• Any matter defining the relationship between the

management and workers may form a part of it.• Broadly two type of issues/items may involved in

collective bargaining;1. Economic Provision: includes those provision

which affects the economic, financial, and professional aspect of workers.(working conditions, rules and regulations)


2. Political provisions or issues: these provisions relates to the general administration such as division of authority and Responsibility, workers participation in management and power to challenge the decision taken by management.


Others items being a part of collective Bargaining

• Allowance and leave rules• Wage and salary structure• Wage incentive scheme• Lay off and retrenchment of workers•

Demotion, promotion transfer• Grievances procedure


• Safety and health facilities• Scheme of bonus, profit sharing and co

partnership• Maintenance of discipline•System of performance appraisal• Labour welfare schemes• Schemes of social security• Medical and compensation schemes.

Objectives of collective bargaining

• The prime objective is to maintain co-ordial relationship between management and workers and to settle dispute relating to wage and working condition.

• It aims to safeguard the interest of workers through collective action

• To ensure participation in trade union in industry.• To introduce effective grievance handling

procedure.

Types of collective bargain

Conjunctive / Distributive Bargaining Distributive bargaining is the most common type

of bargaining & involves zero-sum negotiations, in other words one side wins and the other loses. Both parties try to maximize their respective gains. They try to settle economic issues such as wages, benefits, bonus, etc. For Example, Unions negotiate for maximum wages &the management wants to yield as little as possible while getting things done through workers.

Types of collective bargain

Cooperative /Integrative Bargaining Integrative bargaining is similar to problem

solving sessions in which both sides are trying to reach a mutually beneficial alternative, i.e. a win-win situation. Both the employer & the union try to resolve the conflict to the benefit of both parties. Both sides share information about their interests and concerns and they create a list of possible solutions to best meet everyone’s needs.

Importance of Collective Bargaining

The need for and importance of collective bargaining is felt due to the advantages it offers to an organisation. The chief ones are as follows:

1. Collective bargaining develops better understanding between the employer and the employees: It provides a platform to the management and the employees to be at par on negotiation table.


As such while the management gains a better and deep insight into the problem and aspirations of the employees on the one hand, the employees do also become better informed about the organizational problems and limitations, on the other. This in turn, develops better understanding between the two parties .


2. It promotes industrial democracy: both the employer and employees who best know their problems, participate in the negotiation process. Such participation breeds the democratic process in the organization.

3. It benefits the both employer and employeesThe negotiation arrived at is acceptable to both

parties-the employer and the employees


4. It is adjustable to the changing conditions:A dynamic environment leads to changes in

employment conditions. Among other alternatives available, collective bargaining is found as a better approach to bring changes more amicably.


5. It facilitates the speedy implementation of decisions arrived at collective negotiation

The direct participation of both parties-the employer and the employees-in collective decision making process provides an in-built mechanism for speedy implementation of decision arrived at collective bargaining.

The collective bargaining process

The collective bargaining process comprises of five core steps

1. Prepare: 2. Discuss3. Propose: 4. Bargain:5. Settlement:


1. Prepare:This phase involves composition of a negotiation

team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employer’s representatives and the union examine their own situation in order to develop the issues that they believe will be most important.


The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.


2. Discuss: Here, the parties decide the ground rules that

will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.


3. Propose: This phase involves the initial opening

statements and the possible options that exist to resolve them. In a word, this phase could be described as ‘brainstorming’. The exchange of messages takes place and opinion of both the parties is sought.


4. Bargain: negotiations are easy if a problem solving

attitude is adopted. This stage comprises the time when ‘what ifs’ and ‘supposals’ are set forth and the drafting of agreements take place.


5. Settlement: Once the parties are through with the

bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

Conditions for effective collective bargaining

Important Prerequisites for a Successful Collective Bargaining are listed below:

(1) The parties must attain a sufficient degree of organisation. If the workers’ organisation is weak, employers can say that it does not represent the workers and will refuse to negotiate with it. Unless the workers are able to form strong and stable unions, collective bargaining will not be successful.


(2) Freedom of association is essential for collective bargaining. Where there is no freedom of association, there can be no collective bargaining. Freedom of association implies that the workers as well as the employers will have the right to form an organisation of their own to protect their interests.


(3) There should be mutual recognition between both the groups. Collective bargaining cannot begin if the employers do not recognise the workers’ organisation. The conflict of interests makes the two groups hostile to each other. They must recognise each other and realise that adjustment and understanding is essential for the achievement of organisational goals.


(4) There must exist a favourable political climate, essential for successful collective bargaining. If the government encourages collective bargaining as the best method of regulating conditions of employment, it will be successful. Where the governments restrict trade union activities, there can be no collective bargaining.


(5) Agreement must be observed by those to whom they apply. The workers’ organisation must be strong enough to exercise its authority over its members. If the trade union has no power over its members, collective bargaining will not be effectively implemented.


(6) A give and take policy must prevail in the organisation. The difference between two parties can be adjusted only by compromise so that an agreement can be reached. Neither side should be too rigid on its demand.


Their attitudes should be flexible and both sides should be ready to give up some of its demands. Unions should not rigidly insist upon unreasonable demands and should be ready to reduce its demands to come to an agreement.


(7) Sometimes unfair labour practices are resorted to by both the employers and the trade unions. These will restrict the development of collective bargaining. Unfair labour practices should be avoided by both the sides, as this will create an atmosphere of goodwill.

Negotiation

http://www.google.co.tz/imgres?imgurl=http://www.mortgagebrokernews.ca/files/image/Negotiation-Sign-1024x784.jpg&imgrefurl=http://www.mortgagebrokernews.ca/news/negotiation-when-people-are-the-problem-181946.aspx&h=784&w=1024&tbnid=7aeXkGtPAmYSHM:&zoom=1&docid=XMeMSMf69ljgLM&ei=VvlEVJfeFpDe7Abs_YHgCA&tbm=isch&ved=0CEIQMygeMB4&iact=rc&uact=3&dur=999&page=2&start=15&ndsp=20

What is Negotiation?

Negotiation is a process where two or more parties with different needs and goals discuss an issue to find a mutually acceptable solution.


Basic and important concepts in Negotiation

For negotiation to result in positive benefits for all sides, the negotiator must define what the problem is and what each party wants. In defining the goals of negotiation, it is important to distinguish between issues, positions, interests and settlement options



An issue- is a matter or question parties disagree about. Issue can usually be stated as problems.

Positions- are statements by a party about how an issue can or should be handled or resolved; or a proposal for a particular solution. A disputant selects a position because it satisfies a particular interest or meets a set of needs.



Interests- are specific needs, conditions or gains that a party must have met in an agreement for it to be considered satisfactory. Interest may refer to content, to specific procedural considerations or to psychological needs.

Settlement options- possible solutions which address one or more party’s interest. The presence of options implies that there is more than one way to satisfy interests.


Characteristics of a negotiation

Voluntary: No party is forced to participate in a negotiation. The parties are free to accept or reject the outcome of negotiations and can withdraw at any point during the process. Parties may participate directly in the negotiations or they may choose to be represented by someone else, such as a family member, friend, a lawyer or other professional.



Bilateral/Multilateral: Negotiations can involve two, three or dozens of parties. They can range from two individuals seeking to agree on the sale of a house to negotiations involving diplomats from dozens of States



Non-adjudicative: Negotiation involves only the parties. The outcome of a negotiation is reached by the parties together without recourse to a third-party neutral.

Informal: There are no prescribed rules in negotiation. The parties are free to adopt whatever rules they choose, if any. Generally they will agree on issues such as the subject matter, timing and location of negotiations.



Flexible: The scope of a negotiation depends on the choice of the parties. The parties can determine not only the topic or the topics that will be the subject of the negotiations, but also whether they will adopt a positional-based bargaining approach or an interest-based approach.


Approaches to negotiation

The negotiator will need to select a general negotiation approach. There are many techniques, but the most common approaches to negotiation are Distributive Negotiation or Win-Lose Approach, Lose-Lose Approach, Compromise Approach and Integrative Negotiation or Win-Win Approach



Distributive Negotiation or Win-Lose ApproachThis is also called competitive, zero sum, or

claiming value approach. When you approach a negotiation with a win-lose mindset, remember that it may well be you that loses. Even if you think you have won, you may have damaged the relationship with the other person beyond repair.



Lose-Lose ApproachThis negotiation approach is adopted when one

negotiating partner feels that his own interests are threatened and he does all he can to ensure that the outcome of the negotiation is not suitable to the interests of the other party as well. In the bargain, both the parties end up being the loser.

http://www.managementstudyhq.com/barriers-and-guidelines-to-successful-negotiation.html



Compromise ApproachThis approach provides an outcome which is

some improvement over the lose-lose strategy outcome. To avoid a lose-lose situation, both parties give up a part of what they had originally sought and settle for something less than that.



Win-Win ApproachThis negotiation approach is also called as

collaborative or creating value approach. It is superior to all negotiation approaches. It results in both the parties feeling that they are achieving what they wanted. It results in satisfaction to both the parties.

http://www.managementstudyhq.com/factors-influencing-negotiations.html


Advantages of negotiation

1. In procedural terms, negotiation is probably the most flexible form of dispute resolution as it involves only those parties with an interest in the matter and their representatives, if any. The parties are free to shape the negotiations in accordance with their own needs, for example, setting the agenda, selecting the forum (public or private) and identifying the participants



2. Negotiation is a voluntary process. No one is required to participate in negotiations should they not wish to do so.

3. There is no need for recourse to a third-party neutral. This is important when none of the parties wants to involve outside parties in the process, e.g., the matter to be discussed or the dispute to be resolved may be highly sensitive in nature



4. Assuming that the parties are negotiating in good faith, negotiation will provide the parties with the opportunity to design an agreement which reflects their interests.

5. Negotiations may preserve and in some cases even enhance the relationship between the parties once an agreement has been reached between them.


Conditions for successful negotiation

A variety of conditions can affect the success or failure of negotiations. The following conditions make success in negotiations more likely.



Identifiable parties who are willing to participate.

The people or groups who have a stake in the outcome must be identifiable and willing to sit down at the bargaining table if productive negotiations are to occur. If a critical party is either absent or is not willing to commit to good faith bargaining, the potential for agreement will decline.



Readiness to negotiatePeople must be ready to negotiate for dialogue

to begin. When participants are not psychologically prepared to talk with the other parties, when adequate information is not available, or when a negotiation strategy has not been prepared, people may be reluctant to begin the process.



Will to settle For negotiations to succeed, participants have

to want to settle. If continuing a conflict is more important than settlement, then negotiations are doomed to failure.



Issues must be negotiable. For successful negotiation to occur, negotiators

must believe that there are acceptable settlement options that are possible as a result of participation in the process. If it appears that negotiations will have only win/lose settlement possibilities and that a party's needs will not be met as a result of participation, parties will be reluctant to enter into dialogue.



The people must have the authority to decide. For a successful outcome, participants must

have the authority to make a decision. If they do not have a legitimate and recognized right to decide, or if a clear ratification process has not been established, negotiations will be limited to an information exchange between the parties.


The concepts of workers Participation

Before justify the rationale for WPM, let us first understand what participation, in general means. In simple words, participation means the meaningful interaction of human beings with people they are concerned to enhance their sense of being in control of their immediate environment. In fact has been a phenomenon throughout the history of mankind. In ultimate manner, participation enables one to perform better. People’s participation in governance commonly termed as ’democracy’ is precisely a quest towards that end only.



What is workers Participation?

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________



What is workers Participation?“The term participation implies the mental and

emotional involvement of a person in a group situation which encourages him to contribute to group goals and share responsibility in them.” —Kieth Davis



What is workers Participation?“It is a principle of democratic administration of

industry: sharing the decision making power by rank and file of an industrial organisation through their representatives at all the appropriate levels of management in the entire range of managerial action.” —Dr. Mehtras



On the basis of the above discussion the following comprehensive definition may be given: It is a system of communication and consultation either formal or informal by which employees of an organisation are kept informed about the affairs of the undertaking or through which they express their opinion and contribute to management decisions.


Characteristics of workers Participation:

The following are the main characteristics of WPM: 1. Participation implies practices which increase the

scope for employees’ share of influence in decision-making process with the assumption of responsibility.

2. Participation presupposes willing acceptance of responsibility by workers.

3. Workers participate in management not as individuals but as a group through their representatives.


Characteristics of workers Participation:

4. Worker’s participation in management differs from collective bargaining in the sense that while the former is based on mutual trust, information sharing and mutual problem solving; the latter is essentially based on power play, pressure tactics, and negotiations.

5. The basic rationale tor worker’s participation in management is that workers invest their Iabour and their fates to their place of work. Thus, they contribute to the outcomes of organization. Hence, they have a legitimate right to share in decision-making activities of organisation.


Objectives of workers participation

1. Economic objective workers participation in management aims at

increasing productivity of labour by improving cooperation between employer and employees. Productivity is sought to be increased by improving job satisfaction and industrial relations.



2. Social Objectives Under participation, industry is considered a

social institution in which each and every workers a vested interest. The purpose of participation is to ensure human dignity and to get the workers a respectable status in society.



3. Psychological objective Workers participation in management seeks to bring

about change in the attitude of workers. Though participation they will consider themselves an integral part of the industry rather than mere working hand. Participation provides the employees an opportunity to express themselves thereby satisfying their non-economic needs. It provides them a sense of belonging, pride and accomplishment.


Levels of Participation:

Having known the objectives of WPM, the question then is to what extent workers can participate in decision-making process. In other words, it is important to know the extents/levels of co-determination in an organisation.



1. Informative Participation: This refers to management’s information sharing

with workers on such items those are concerned with workers. Balance Sheet, production, economic conditions of the plant etc., are the examples of such items. It is important to note that here workers have no right of close scrutiny of the information provided and management has its prerogative to make decisions on issues concerned with workers.



2. Consultative Participation: In this type of participation, workers are

consulted in those matters which relate to them. Here, the role of workers is restricted to give their views only. However the acceptance and non-acceptance of these views depends on management. Nonetheless, it provides an opportunity to the workers to express their views on matters involving their interest.



3. Associative Participation: Here, the role of the workers’ council is not just

advisory unlike consultative participation. In a way, this is an advanced and improved form of consultative participa tion. Now, the management is under a moral obligation to acknowledge, accept and implement the unanimous decision of the council.



4. Administrative Participation: In the administrative participation, decisions

already taken are implemented by the workers. Compared to the former three levels of participation, the degree of sharing authority and responsibility by the workers is definitely more in this participation.



5. Decisive Participation: Here, the decisions are taken jointly by the

management and the workers of an organisation. In fact, this is the ultimate level of workers’ participation in management.


Forms of workers Participation

The workers’ participation in management may take the following forms:

• Co-Ownership:Workers are made shareholders by allotting

those shares in the company. They are employees as well as owners of the business concern. Thus, their participation in the management is automatically guaranteed



2. Seat On Board Of Directors: In this case the workers’ representative is given a seat on

the boards of directors. In advanced countries like Britain and U.S.A., trade unions have already rejected this idea. It is generally felt that the workers do not understand the intricacies of management. Moreover, their representatives being in minority may not have much say in the decision making whereas that decision will be applicable to all the employees. By remaining out of the board, they can keep a better check on the management.



3. Works Committee:These committees have been regarded as the

most effective social institution of industrial democracy. The need for their constitution has been emphasised as early as 1931 by the Royal Commission on Labour.



These committees are consultative bodies. Their functions include discussion of conditions of work like lighting, ventilation, temperature and sanitation etc., and amenities like water supply for drinking purposes, canteen, medical services, safe working conditions, administration of welfare funds etc. The works committee should not deal with matters connected with collective bargaining which are exclusively reserved for trade unions



4. Joint Management Councils: Joint committees for settlement of grievances or

specific problems may be set up for promoting workers’ participation in management. Workers representatives sit with the management across the table to discuss matters which fall within its purview. The main object of such councils is to give an opportunity to workers to understand the working of the industry and satisfy their urge for self-expression.



5. Profit Sharing: Workers feel involved in the management

especially when they are given a share in profits of the business



6. Suggestion Scheme: Suggestion scheme may also be introduced for

creating interest in the work by announcing a suitable reward for original and useful suggestions. Employees can put their suggestions in the suggestion boxes which are installed in the various departments.


Importance of workers participation

Workers participation in management provides the following benefits:

1.Mutual Understanding: generally employer-employees doubt the integrity of each other due to ignorance of each other problem. As a result a better understanding and mutual trust can be created between employer and workers.



2. Higher productivity: cooperation between management and labour helps to increase production and profit of industry. Through participation workers learn the problem of industry and better understand their role. Participation improves employee motivation and job satisfactory which in turn help to increase their efficiency. Higher productivity leads to low cost per unit and greater profits which are beneficial to all.



3. Industrial Harmony: workers participation in management helps to reduce industrial disputes and to improve workers loyalty continuous dialogue between management and workers improves peace in industry.

4. Industrial Democracy: Participation of workers management usher in industrial democracy which is necessary for political democracy. Need for outside intervention between employer and employees is eliminated and workers are freed from exploitation.



5. Less resistance to change- workers often resist change due to fear or ignorance. When workers participate in the decision making they come to under stand that change is ultimately in their own interest. They become more able and ready to adopt themselves to technological and other changes made to improve the competitive position of the company.



6. Creativity and innovation: participation encourage workers to think and take initiative. Their talent and ability can be capitalized highly competent employee can be spotted and given prevention. Participation is helpful in training and developing future executives. Workers urge for self expression is satisfied.


The concept of Industrial Action

Meaning An occasion when workers do something that is

intended to force an employer to agree to something, especially by stopping work.

Industrial Action is a concerted stoppage of work, or action short of strike that is taken by employees in contemplation or furtherance of a Industrial Dispute


The concept of Industrial Action

Industrial action can take the form of either a strike or 'industrial action short of a strike' - for example, an overtime ban or work to rule.


Forms of Industrial action

Workers usually take industrial action by refusing to work altogether or refusing to do work in the way their employment contract says they should.

There are two main forms of industrial action:• strike - where workers refuse to work for the employer• action short of a strike - where workers take actions such as

go-slows, or bans on overtime or call-outs On some, relatively rare, occasions, an employer may lock-

out workers during a dispute. A lock-out is where the employer stops workers from working or returning to work.


Strikes and Lockout

Meaning of strikeSTRIKE is a concerted and temporary cessation

of work by the workers with a view to furthering or protecting their interests in general and securing fulfillment of their specific demand in particular (Sinha:2004).


Meaning of strike

Florence Peterson as cited in Sinha defines strike as a temporary stoppage of work by a group of workers in order to express a grievance or to enforce a demand concerning changes in work conditions.


Meaning of Lockouts

Lockout is total or partial refusal by one or more employers to allow their employees to work. If that refusal is to compel them to accept, modify or abandon any demand that may form the subject matter of the dispute of interest (ELRA no 6, 2004) or It is simply the temporary closing down by the employer of a factory/ work organization.


Legal justification of the strikes

• Legal and justifiable: that employees have reasons for strike and they have followed all procedures under the laws.

• Legal but unjustifiable: the employees do not have sufficient enough reasons and they have followed the procedures but they could have other alternatives to be used but not used.


Legal justification of the strikes

• Illegal but justifiable: that employees have enough sufficient reasons but they have not followed the laid down procedure.

• Illegal and unjustifiable: that employee do not have sufficient enough reasons, they resort to strike without following the procedures or legal machinery.


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 of termination of workmen• Withdrawal of any allowance or privilege


Causes of strikes:

• Hours of work and rest intervals • Leaves with wages and holidays• Bonus, profit sharing, Provident fund and

gratuity • Dispute connected with minimum wages


TYPES OF STRIKE

1. 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, bonus and other facilities such as increase in privilege leave and casual leave.


TYPES OF STRIKE

2. 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

3. General Strike: It means a strike by members of all or most of the unions in a region or an industry. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers.


TYPES OF STRIKE

4. 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.


TYPES OF STRIKE

5. 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.


TYPES OF STRIKE

6. Sick-out (or sick-in): In this strike, all or a significant number of union members call in sick on the same day. They don’t 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

7. Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions


Costs of strikes

At the side of EMPLOYEES• Personal hardship• Loss of employment• Disruption of the family life• Mental agonies• Torture and tensions


Costs of strikes

At the side of EMPLOYER• Loss of profit• Loss of market contact• Loss of good will • Loss of respect and status in the community


Costs of strikes

At the side of COMMUNITY• Lack or reduced flow of goods and services• Higher price of good and services due to

excess demand over supply• Lower standard of living


Costs of strikes

At the side of The STATE• Loss of revenue• Creation of law and order problems• The attention of the public servants is diverted

from other issues to dealing with strike situation


Legal frame work of Employee’s strikes in Tanzania

With respect to Employment and Labour Relations Act no.6, there are two recognized types of strikes which are:

Primary strike and [happens in org an conducted with the respective Trade Union]

Secondary strike.[is doing by virtual of supporting others]Under s.75 of the Employment and Labour Relations Act

2004, strike and lockout are established as the right for Employer and employees. i.e. Employer has the right to Lockout and an Employee has the right to strike.


Legal frame work of Employee’s strikes in Tanzania

The prohibition of the right to strike and Lockout

The right to strike/lockout is prohibited in some conditions as provided under s.76 of the Employment and Labour Relations Act 6,2004. This means that, despite the fact that strike and lockout are allowed under the law, but the circumstances provided under this particular section restrict for the same.


Procedures for engaging in lawful strike

In Tanzania, a strike is lawful if it comply with S.80 of the Employment and labour Relations Act 6,2004 where by the following procedures should be observed.

The dispute is a dispute of interestThe dispute has been referred in a prescribed form to

the commission for mediation and arbitration(CMA)The dispute remains unresolved at the end of

mediation provided under S.86(4) .


Procedures for engaging in lawful strike

The strike is called by a trade Union, a ballot has been conducted under the union’s constitution and majority of those who voted were in favor of the strike.

A trade union has given the notice of the intention to strike. Notice is 48 Hrs for primary strike and 14 days for secondary strike.


Conducts which are prohibited during the strike exercise

According to S.76(3) of the Employment and Labour Relations Act. 2004

• Picketing• Use of replacement labour• Preventing employers from entering the

premises• Locking employers in their premises.


Strikes in essential services

Essential services may refer to a class of occupations that have been legislated by a government to have special restrictions in regard to labour actions - Such as not being allowed to legally strike. Essential services in Tanzania are established under S.77(2) of the Employment and Labour Relations Act 2004.

http://en.wikipedia.org/wiki/Legislation

http://en.wikipedia.org/wiki/Strike_action


Strikes in essential services

Under this provision from the law provides for the essential service organisations in which strike is prohibited unless there is collective agreement which has been approved by the essential service committee providing for minimum services during a strike or lockout. Section 78 of the Act provides for the procedures of resolving dispute of interest that may arise in the essential services organisation.


Dispute resolutions

Meaning of DisputeA dispute is a serious disagreement about

something important to the parties involved, often regarding the truth or validity of something like terms of an agreement. Or

Dispute is a disagreement between two or more parties. It is also a manifestation of conflict.


Dispute resolutions

When this disagreement is between labour and management, it is referred as ‘INDUSTRIAL DISPUTE’

So -What is industrial dispute?Industrial Dispute means any dispute or difference

between employer and employees, or between employer and workmen or between workmen and workmen, which is connected with the employment or non employment or the terms of employment or with the conditions of Labour


Dispute resolutions

Types of industrial disputesThere are two types of Industrial Disputes.

Disputes of Interest and rights disputes.Dispute of Interest relates to determination of new

wage level and other conditions of employment, it is just a matters of opinions where employees demand for right that does not exist in the existing labour laws, collective agreements, individual labour contract and practices


Dispute resolutions

While dispute of rights on the other hand, relate, to interpretation and application of existing standards and usually involve and individual worker or group of workers. Under category of rights disputes, claim is made that the workmen have not been treated in accordance with the rules, individual contracts of employment, laws and regulations and as per collective agreements. Such disputes are also described as grievance disputes.


Dispute resolutions

What is Dispute Resolution? Dispute Resolution generally refers to one of several

different processes used to resolve disputes between parties, including negotiation, mediation, arbitration, and litigation. Or

Dispute resolution is the process of resolving a dispute or a conflict by meeting at least some of each side’s needs and addressing their interests.


Objectives of Dispute resolution

To assist parties in the Employment relationship to settle their grievances or disputes peacefully and Orderly through agreed machinery with minimum interruption of work.

Deepening Democratic governance and promoting social, economic and political Stability.


Objectives of Dispute resolution

Promote sound Labour Relations and creating Environments for efficiency , economic growth and development


Approaches to dispute resolutions

Meaning of approachMeans of arriving into a solution. It involve

actions intended to deal with a problem.1. Avoidance approach2. Power approach3. Right approach4. Consensus approach



Avoidance approach- Parties or a party fails to deal with the conflict

Power approach-Power is the ability to influence the behavior of others with or without resistance Parties uses their powers eg. Economic powers to influence another to accept what it wants.



Right approach - The rights-based approach to conflict ‘resolution’ (settlement) involves resolution based on a standard or normative principle commonly recognized by the parties concerned. Often, the legal system is used as a source of those norms. Rights-based approaches to international conflict settlement



Consensus Approach- Consensus means :An opinion or position reached by a group as a whole. Parties accommodate the needs of one another. Reach into compromise. E.g., when a dispute is referred to mediation / to third party efforts will be made to resolve the dispute by negotiation.


Dispute Resolution Procedures in Tanzania

The parties to the dispute are not prohibited from concluding a collective agreement providing for the resolution of disputes. Moreover, the parties to the dispute may also voluntarily agree to submit their dispute to a voluntary arbitration.



Once this has been attained, the parties bound by a collective agreement may not refer a dispute to Commission for Mediation and Arbitration. ELRA 2004 S. 93(2) (a)

where there is neither collective agreement nor voluntary arbitration, all types of disputes will first be referred to CMA in a prescribed form and a party that refers the dispute to CMA is also required to save a copy of the referral dispute to the other party in the dispute. (S86 (1), (2) and 78 (9) (b)



Upon receipt of the referral dispute, the CMA is required to appoint a mediator to mediate the dispute, decide time, date and place of mediation hearing and the mediator is required to resolve the dispute within thirty days of the referral or any longer period to which the parties may agree in writing. If the issue in dispute is settled, the dispute will be resolved in mediation and hence no further proceedings. (S. 86 (3) (a), (b) and 86 (4)



If the mediator fails to resolve a dispute as per section 86(4) if it is a dispute of interest a party to the dispute may give a 48 hours notice to the other party indicating its intention to commence a lawful strike or a lockout or 14 days notice in case it is secondary strike. If the dispute is a complaint or right dispute, a party may refer the complaint to the arbitration or the labour court



Under section 88 (1) of ELRA 2004, arbitrators have power to settle dispute by compulsory arbitration for workers engaging in essential services. In arbitration, dispute emanating from this category of workers are known as dispute of interests



Other disputes that will be settled in arbitration are dispute of right or complaints such as those related to unfair or unlawful termination of employment, contravention of ELRA, and any other dispute referred to arbitration by the labour court as provided under



Section 94(3)(a)(ii) and 88 (1)(b) of the ELRA. After hearing witness and accessing evidence from both parties in dispute, the arbitrator is required to decide the dispute and issue an arbitration award within the reasons for determination within 30 days of the proceedings S.88(9). The court may enforce the award.



• However, any party to an arbitration award may apply to the Labour Court for a decision to set aside the arbitration award within six weeks of the date that the award was served on the application.

• The labour court may set aside the arbitration award if there was misconduct on the part of the arbitrator or if the award was improperly procured. Where the award is set aside, the labour court may determine the dispute in the manner it considers appropriate and make any order it consider appropriate about the procedures to be followed to determine the dispute. (ELRA, 2004: S.91 (1) (a),(2)(a)(b),(3),(4)(a)(b).



The court has also power to settle disputes other than that will be decided in arbitration. For example disputes over application, interpretation or implementation of the provisions of the ELRA, 2004 as provided under section 94(1) of the ELRA, 2004.


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