Asgn 1 Lrm Masial Final

8/9/2019 Asgn 1 Lrm Masial Final

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Allama Iqbal Open University

MASTERS IN BUSINESSADMINISTRATION (HRM)

SEMESTER AUTUMN -2009

***

Labor Management Relations (821)

Assignment No. 1

Prepared by:

Muhammad Abdullah Sial

Roll No. 508195684

Registration No. 01PJG0057

Federal Public Service Commission

Aga Khan Road, F-5/1, Islamabad.

Submitted to:

Sir M. Waseem Hayat,

House No. 735, Street No.3,

Sector I 10/2,

Islamabad.


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Q. # 1: Describe major labor laws in the world? Explain differentcharacteristics of Pakistani Labor laws?

Ans:-

A body of laws, administrative rulings, and precedents which addressthe legal rights of, and restrictions on, working people and their

organizations is called Labor law or employment law. As such, it mediatesmany aspects of the relationship between trade unions, employers andemployees. The labour law has two broad categories.

i. Collective labor law:- The collective labor law relates to thetripartite relationship between employee, employer and union.

ii. Individual Labor Law:- Individual labor law concernsemployees' rights at work and through the contract for work. Thelabor movement has been instrumental in the enacting of lawsprotecting labor rights in the 19th and 20th centuries. Laborrights have been integral to the social and economic

development since the industrial revolution.INTERNATIONAL LABOR ORGANIZATION (ILO)

Itnerationa Labour Organzition is the specailized body of UnitedNations dealing with the labour related matters at the world level. TheInternational Labor Organization (ILO), whose headquarters are in Geneva, isone of the oldest surviving international bodies, set up at the time of theLeague of Nations following the First World War. Its guiding principle is that"labour is not a commodity" to be traded in the same way as goods,services or capital, and that human dignity demands equality of treatmentand fairness in dealing within the workplace.

The ILO has drawn up numerous conventions on what ought to be thelabor standards adopted by countries party to it. Countries are then obligedto ratify the Conventions in their own national law. However, there is noenforcement of this, and in practice most conventions are not agreed to,even if they are adhered to.

Core Conventions of ILO

While ILO Conventions are not ranked in terms of their order ofimportance, there is an underlying hierarchy, which can be differentiated. Inthe first category are Conventions dealing with freedom of association andcollective bargaining (Conventions Nos. 87 and 89), forced labour(Conventions Nos. 29 and 105), non-discrimination in employment(Conventions Nos. 100 and 111) and child labour (Convention 138).

Freedom of Association and Protection of the Right toOrganize Convention, 1948 (No.87) : Establishes the right of allworkers and employers to form and join organizations of their ownchoosing without prior authorization, and lays down a series ofguarantees for the free functioning of organizations withoutinterference by the public authorities. In December 1997, 121countries had ratified this convention.

Right to Organize and Collective Bargaining Convention,1949 (No. 98): Provides for protection against anti-uniondiscrimination, for protection of workers' and employers'organizations against acts of interference by each other, and formeasures to promote collective bargaining. In December 1997, 137countries had ratified this convention.

Forced Labour Convention, 1930 (No. 29):-Requires thesuppression of forced or compulsory labour in all its forms. Certainexceptions are permitted, such as military service, convict labourproperly supervised, emergencies such as wars, fires, earthquakes,etc. In December 1997, 145 countries had ratified this convention.

Abolition of Forced Labour Convention, 1957 (No.105):Prohibits the use of any form of forced or compulsory labour as ameans of political coercion or education, punishment for the

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expression of political or ideological views, workforce mobilization,labour discipline, punishment for participation in strikes, ordiscrimination. In December 1997, 130 countries had ratified thisconvention.

Discrimination (Employment and Occupation) Convention,1958 (No. 111): Calls for a national policy to eliminate

discrimination in access to employment, training and workingconditions, on grounds of race, color, sex, religion, political opinion,national extraction or social origin and to promote equality ofopportunity and treatment. In December 1997, 129 countries hadratified this convention.

Equal Remuneration Convention, 1951 (No.100):- Calls forequal pay for men and women for work of equal value. In December1997, 135 countries had ratified this convention.

EUROPEAN LABOR LAW

The EuropeanWorking Time Directive limits the maximum length of aworking week to 48 hours in 7 days, and a minimum rest period of 11 hoursin each 24 hours. Like all EU Directives, this is an instrument which requiresmember states to enact its provisions in national legislation. Although thedirective applies to all member states, in the UKit is possible to "opt out" ofthe 48 hour working week in order to work longer hours.

In contrast, France has passed more strict legislation, limiting themaximum working week to 35 hours (but optional hours are still possible).The controversial Directive on services in the internal market, known asBolkestein Directive, was then passed in 2006.

CHARACTERISTICS OF MAJOR LABOR LAWS IN THE WORLD

Contract of employment:-

The basic feature of labor law in almost every country is that therights and obligations of the worker and the employer between oneanother are mediated through the contract of employment betweenthe two. This has been the case since the collapse of feudalism and isthe core reality of modern economic relations. Many terms andconditions of the contract are however implied by legislation orcommon law, in such a way as to restrict the freedom of people to

agree to certain things in order to protect employees, and facilitate afluid labor market. In the U.S. for example, majority of state laws allowfor employment to be "at will," meaning the employer can terminatean employee from a position for any reason, so long as the reason isnot an illegal reason, including a termination in violation of publicpolicy.

Minimum wage

There may be law stating the minimum amount that a workercan be paid per hour. Australia, Canada, China, Belgium, France,Greece, Hungary, India, Ireland, Japan, Korea, Luxembourg, theNetherlands, New Zealand, Paraguay, Portugal, Poland, Romania,Spain, Taiwan, the United Kingdom, the United States and others havelaws of this kind. The minimum wage is usually different from thelowest wage determined by the forces of supply and demand in a freemarket, and therefore acts as a price floor. Each country sets its ownminimum wage laws and regulations, and while a majority ofindustrialized countries has a minimum wage, many developingcountries have not.

Working time

Before the Industrial Revolution, the workday varied between 11and 14 hours. With the growth of industrialism and the introduction ofmachinery, longer hours became far more common, with 1415 hoursbeing the norm, and 16 not at all uncommon. Use of child labor wascommonplace, often in factories. In England and Scotland in 1788,

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about two-thirds of persons working in the new water-powered textilefactories were children. The eight-hour movement's struggle finally ledto the first law on the length of a working day, passed in 1833 inEngland, limiting miners to 12 hours, and children to 8 hours. The 10-hour day was established in 1848, and shorter hours with the same paywere gradually accepted thereafter. The 1802 Factory Act was the first

labor law in the UK.

Health and safety

Other labor laws involve safety concerning workers. The earliestEnglish factory law was drafted in 1802 and dealt with the safety andhealth of child textile workers.

Anti-discrimination

This clause means that discrimination against employees ismorally unacceptable and illegal, on a variety of grounds, in particular

racial discrimination or sexist discrimination.

Unfair dismissal

Convention no. 158 of the International Labour Organizationstates that an employee "can't be fired without any legitimate motive"and "before offering him the possibility to defend himself". Thus, onApril 28, 2006, after the unofficial repeal of the French First EmploymentContract (CPE), the Longjumeau (Essonne) conseil des prud'hommes(labour law court) judged the New Employment Contract (CNE) contraryto international law, and therefore "illegitimate" and "without anyjuridical value". The court considered that the two-years period of "fire

at will" (without any legal motive) was "unreasonable", and contrary toconvention no. 158, ratified by France.

Child labor

Child labor is the employment of children under an agedetermined by law or custom. This practice is considered exploitative bymany countries and international organizations. Child labor was notseen as a problem throughout most of history, only becoming adisputed issue with the beginning of universal schooling and theconcepts of laborers' and children's rights. Child labor can be factorywork, mining or quarrying, agriculture, helping in the parents' business,

having one's own small business (for example selling food), or doing oddjobs. Some children work as guides for tourists, sometimes combinedwith bringing in business for shops and restaurants (where they mayalso work as waiters). Other children are forced to do tedious andrepetitive jobs such as assembling boxes, or polishing shoes. However,rather than in factories and sweatshops, most child labor occurs in theinformal sector, "selling on the street, at work in agriculture or hiddenaway in houses far from the reach of official inspectors and frommedia scrutiny."

CHARACTERISTICS OF PAKISTANI LABOR LAW

Constitutional Provisions

The Constitution of Pakistan contains a range of provisions withregards to labour rights found in Part II: Fundamental Rights andPrinciples of Policy.

Article 11 of the Constitution prohibits all forms of slavery, forcedlabour and child labour;

Article 17 provides for a fundamental right to exercise the freedom

of association and the right to form unions;

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Article 18 proscribes the right of its citizens to enter upon any lawfulprofession or occupation and to conduct any lawful trade orbusiness;

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

Article 37(e) makes provision for securing just and humaneconditions of work, ensuring that children and women are notemployed in vocations unsuited to their age or sex, and formaternity benefits for women in employment.

Labour Legislation in Pakistan

Pakistans labour laws trace their origination to legislation inheritedfrom India at the time of partition of the Indo-Pak subcontinent. The laws

have evolved through a continuous process of trial to meet the socio-economic conditions, state of industrial development, population andlabour force explosion, growth of trade unions, level of literacy,Governments commitment to development and social welfare. To meetthe above named objectives, the government of the Islamic Republic ofPakistan has introduced a number of labour policies, since itsindependence to mirror the shifts in governance from martial law todemocratic governance.

Under the Constitution labour is regarded as a concurrent subject,which means that it is the responsibility of both the Federal and ProvincialGovernments. However, for the sake of uniformity, laws are enacted by

the Federal Government, stipulating that Provincial Governments maymake rules and regulations of their own according to the conditionsprevailing in or for the specific requirements of the Provinces. The totallabour force of Pakistan is comprised of approximately 37.15 millionpeople, with 47% within the agriculture sector, 10.50% in themanufacturing & mining sector and remaining 42.50% in various otherprofessions.

Major Labour Laws of Pakistan

The Children (Pledging of Labour) Act, 1933.

The Employment (Record of Services) ACT, 1951.

The Employment of Children Rules, 1955.

The Control of Employment Ordinance, 1965.

The Control of Employment Rules, 1965.

The Free-Charging Employment Agencies (Regulations) Act, 1976.

The Corporation Employees (Special Powers Ordinance, 1978.

The Employment of Children Act, 1991.

The Bonded Labour System (Abolitions) Act, 1992

Industrial Relations Act, 2008 in Pakistan

Industry and workplace relations in Pakistan are now governed by the Industrial

Relations Act, 2008 (IRA-08).

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

WWF, and the Pakistan Mint. Through a presidential order (No. 6), the law banning tradeunionism in Pakistan International Airlines (PIA) has been repealed. The act has removed

the obligation of a CBA to be affiliated with a national trade union federation or

organization. It has withdrawn the right to organize from the workers of the PakistanTelecommunication Authority (PTAC).

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

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

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

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

Important Features of Pakistani Labour Laws

Contract of Employment :- While Article 18 of the Constitutionaffords every citizen with the right to enter upon any lawfulprofession or occupation, and to conduct any lawful trade orbusiness, the Industrial and Commercial Employment (StandingOrders) Ordinance was enacted in 1968 to address the relationshipbetween employer and employee and the contract of employment. The Ordinance applies to all industrial and commercialestablishments throughout the country employing 20 or moreworkers and provides for security of employment. In the case ofworkers in other establishments, domestic servants, farm workers orcasual labour engaged by contractors, their labour contracts are

generally unwritten and can be enforced through the courts on thebasis of oral evidence or past practice.

Every employer in an industrial or commercial establishment isrequired to issue a formal appointment letter at the time ofemployment of each worker. The obligatory contents of each labourcontract, if written, are confined to the main terms and conditions ofemployment, namely nature and tenure of appointment, payallowances and other fringe benefits admissible, terms andconditions of appointment.

Termination of the Contract:-The services of a permanent worker

cannot be terminated for any reason other than misconduct unlessone months notice or wages in lieu thereof has been furnished bythe employer or by the worker if he or she so chooses to leave his orher service. One months wages are calculated on the basis of theaverage wage earned during the last three months of service. Othercategories of workers are not entitled to notice or pay in lieu ofnotice.

All terminations of service in any form must be documented inwriting stating the reasons for such an act. If a worker is aggrievedby an order of termination he or she may proceed under Section 46

of the Industrial Relations Ordinance 2002, aimed at regulating thelabour-management relations in the country, and bring his or hergrievance to the attention of his or her employer, in writing, eitherhim or herself, through the shop steward or through his or her tradeunion within three months of the occurrence of the cause of action.Forms of termination have been described as removed, retrenched,discharged or dismissed from service. To safeguard against anycolorful exercise of power, victimization or unfair labour practices,the Labour Courts have been given powers to examine and interveneto find out whether there has been a violation of the principles ofnatural justice and whether any action by the employer was bona

fide or unjust.

Working Hours:- Under the Factories Act, 1934 no adultemployee, defined as a worker who has completed his or her 18thyear of age, can be required or permitted to work in anyestablishment in excess of nine hours a day and 48 hours a week.Similarly, no young person, under the age of 18, can be required orpermitted to work in excess of seven hours a day and 42 hours aweek. The Factories Act, which governs the conditions of work ofindustrial labour, applies to factories, employing ten or more workers.The Provincial Governments are further empowered to extend the

provisions of the Act, to even five workers.

Paid Leave:- As provided in the Factories Act, 1934, every workerwho has completed a period of twelve months continuous service in

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a factory shall be allowed, during the subsequent period of twelvemonths, holidays for a period of fourteen consecutive days. If aworker fails in any one such period of twelve months to take thewhole of the holidays allowed to him or her, any holidays not takenby him or her shall be added to the holidays allotted to him or her inthe succeeding period of twelve months.

A worker shall be deemed to have completed a period of twelvemonths continuous service in a factory notwithstanding anyinterruption in service during those twelve months brought about bysickness, accident or authorized leave not exceeding ninety days inthe aggregate for all three, or by a lock-out, or by a strike which isnot an illegal strike, or by intermittent periods of involuntaryunemployment not exceeding thirty days in the aggregate; andauthorized leave shall be deemed not to include any weekly holidayallowed under section 35 which occurs at beginning or end of an

interruption brought about by the leave.

Maternity Leave and Maternity Protection:- While article 37 ofthe Constitution makes reference to maternity benefits for women inemployment, there are two central enactments, one federal and theother provincial providing maternity benefits to women employed incertain occupations. The Maternity Benefit Ordinance, 1958stipulates that upon the completion of four months employment orqualifying period, a worker may have up to six weeks prenatal andpostnatal leave during which she is paid a salary drawn on the basisof her last pay. The Ordinance is applicable to all industrial and

commercial establishments employing women excluding the tribalareas. It also places restrictions on the dismissal of the womanduring her maternity leave. Similarly, the Mines Maternity BenefitAct, 1941 is applicable to women employed in the mines in Pakistan.

Other Leave Entitlements:- In addition to the 14 days of annualleave with pay, the Factories Act, 1934 provides that every worker isentitled to 10 days casual leave with full pay and further 16 days sickor medical leave on half pay. Casual leave is granted uponcontingent situations such as sudden illness or any other urgentpurpose. It should be obtained on prior application unless the

urgency prevents the making of such application. As a customarypractice, causal leave is approved in most cases. Sick leave, on theother hand, may be availed of on support of a medical certificate.Management should not refuse the leave asked for if it is supportedby a medical certificate.

In addition to the leave entitlements, workers enjoy festivalholidays as declared by the Federal Government. The ProvincialGovernment under section 49 of the Factories Act, 1934, states allfestival holidays, approximately 13 or as further declared, in theOfficial Gazette. Additionally, every worker is entitled to enjoy all

such holidays with pay on all days declared and notified by theProvincial Government. If however, a worker is required to work onany festival holiday, one day's additional compensatory holiday withfull pay and a substitute holiday shall be awarded.

Under agreements made with the Collective Bargaining Agent,employees who proceed on pilgrimage i.e., Hajj, Umra, Ziarat, aregranted special leave up to 60 days.

Minimum Age and Protection of Young Workers:- Article11(3) of Pakistans Constitution expressly prohibits the employment

of children below the age of fourteen years in any factory, mine orother hazardous employment. In addition, the Constitution makes it aPrinciple of Policy of the State of Pakistan to protect the child, toremove illiteracy and provide free and compulsory education within

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the minimum possible period and to make provision for securing justand human conditions of work, ensuring that children and women arenot employed in vocations unsuited to their age or sex.

The Factories Act, 1934 allows for the employment of childrenbetween the ages of 14 and 18 years provided that each adolescent

obtains a certificate of fitness from a certifying surgeon. A certifyingsurgeon, per section 52 of the Act, shall on the application of anychild or adolescent who wishes to work in a factory, or, of the parentor guardian of such person, or of the factory in which such personwishes to work, examine such person and ascertain his or her fitnessfor such work.

Under the Employment of Children Rules, anyone who employs achild or permits a child to work in contravention of the Constitution ispunishable by imprisonment for a term extending up to one year ormay be fined up to Rs. 20,000 or subject to both.Repetition of the offense is punishable by imprisonment for a termextending up to two years and shall not be less than six months.

Equality:- Article 38 of the Constitution imparts the Statesobligations aimed at achieving equality in the form of securing thewell-being of the people, irrespective of sex, caste, creed or race, byraising their standard of living, by preventing the concentration ofwealth and means of production and distribution in the hands of afew to the detriment of general interest and by ensuring equitableadjustment of rights between employers and employees, andlandlords and tenants. All citizens are bestowed, within the available

resources of the country, facilities for work and adequate livelihoodwith reasonable rest and leisure and the basic necessities of life,such as food, clothing, housing, education and medical relief, for allsuch citizens, irrespective again of their sex, caste, creed or race, asare permanently or temporarily unable to earn their livelihood onaccount of infirmity, sickness or unemployment.

Pay Issues:- Wages are construed as the total remunerationpayable to an employed person on the fulfillment of his or hercontract of employment. It includes bonuses and any sum payablefor want of a proper notice of discharge, but excludes the value of

accommodations i.e., supply of light, water, medical attendance orother amenities excluded by the Provincial Government; theemployers contribution to a pension or provident fund, travelingallowance or concession or other special expenses entailed by thenature of his or her employment; and any gratuity payable ondischarge.

The employer is responsible for the payment of all wagesrequired to be paid to persons employed by him or her. Similarly anycontractor employing persons in an industry is responsible forpayment of wages to the persons he or she employs. The personsresponsible for payment of wages must fix wage periods notexceeding one month. Wages should be paid on a working day withinseven days of the end of the wage period, or within ten days if 1,000or more persons are employed. The wages of a person dischargedshould be paid not later than the second working day after his or herdischarge.

Labour Courts:- The Industrial Relations Ordinance, 2008permits any CBA or any employer to apply to the Labour Court for theenforcement of any right guaranteed or secured by law or any awardor settlement. The Provincial Government derives its authority to

establish as many Labour Courts as it considers necessary undersection 44 of the Ordinance. Each Labour Court is subject to jurisdictional limitations derived by its geographical parameters orwith respect to the industry or the classes of cases allocated. Each

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Labour Court consists of one Presiding Officer appointed by theProvincial Government.

An award or decision of a Labour Court is produced in writing anddelivered in open Court with two copies subsequently forwarded tothe Provincial Government. Upon receipt, the Provincial Government

within a period of one month publishes the award or decision in theOfficial Gazette.

The IRO 2008 abolished the Labour Appellate Tribunal. Any partyaggrieved by an award or a decision given or a sentence passed bythe Labour Court may now submit an appeal to the High Court(Article 48 of the IRO 2008). The High Court, may vary or modify anaward or decision or decision sanctioned by the Labour Court. It may,on its own motion at any time, call for the record of any case orproceedings in which a Labour Court within its jurisdiction has passedan order, for the purpose of satisfying itself as to the correctness,legality, or propriety of such order, and may pass such order, inrelation thereto as it thinks fit, provided that the order does notadversely affect any person without giving such person a reasonableopportunity of being heard.

Official Gazette:- The Federal Laws of Pakistan are published bythe Government in a document called the Gazette of Pakistan. TheMinistry of Law, Justice and Human Rights in addition publishesindividual Acts through the Official Gazette.

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Q. # 2:- Write notes on the following:

(a) Models of labour management relations

Ans:-

The industrial relations system is composed of numerous organizations

of management and employees, and different levels and branches of

government. It is deeply embedded in our countrys basic social, economic

and legal systems. The processes of the industrial relations system mold the

terms and conditions of employment and rules about how conflict is to be

expressed and controlled.

Labour Management Relations

Management and labour together determine most of the conditions at

the workplace. In some manner or another, wages and salaries are

established, benefits are provided, hours of work are set, job assignments

are made, and disagreements and disputes are handled.

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

owned a business establishment personally and would hire and fir people,

setting the conditions of work and inviting employees to take it or leave it.

But that day is largely past.

Today managers represent a large and often diffuse group of

stockholders who own the company, and policies are set on the owners

behalf. In many instances workers are organized collectively into unions,

which bargain with management over the terms and conditions of their

employment.

What is Model?

A Model is a mental construct/diagrammatical representation withwhich people organize their thoughts about a topic.

Parties to Labour Management Models

Parties Directly Involved in Industrial Relations System:-

Three main parties are directly involved in industrial relations:

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

They have the right to hire and fire them. Management can also

affect workers interests by exercising their right to relocate, close

or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of

their employment. They exchange views with management and

voice their grievances. They also want to share decision making

powers of management. Workers generally unite to form unions

against the management and get support from these unions.

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Government: The central and state government influences and

regulates industrial relations through laws, rules, agreements,

awards of court ad the like. It also includes third parties and labor

and tribunal courts.

Labour Management Models

When people consider labour-management relations, they usually thinkabout a single company dealing with a single local union. This is, of course, amodel but there are three different types of Labour Management Model.

1. ONE TO ONE MODEL

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

This model refers to dealing of a single companys management withsingle local union. It may be diagrammatically as in figure below:

The above figure represents a model, in that it identifies the partiesinvolved, indicates heir relationships to each other and excludes otherorganizations and relationships as insignificant. It shows that themanagement of Company A dealing with a local union that representCompany As Employees. The two arrow headed lines between these twofactors indicates that each side influences the other.

2. TRANSACTIONAL MODEL

The transactional model indicates a web of relationships involvingCompany A with other organizations. We see that Company A hasresponsibilities to its stockholders and customers as well as local union. It

Management ofCompany

Stockholders

Trade Union

Govt regulatorybodies

Communities

Customers

Employees

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Management Labour Union

Management

of Company

Local Union


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has also relationships with other companies through an association to whichit belongs; it has obligations imposed by governmental regulatory bodies; ithas commitments to the communities in which it operates; and it hasresponsibilities to other unions with which it deals.

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

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

For example, in considering, whether to give in to wage demands bylocal union or to take strike, company A must consider the impact of itschoice on its customers, its stockholders, the communities in which itoperates, its non-unionized employees, and the other unions with which itdeals. Often the strong preferences of one or more of these groups willdetermine Company As decisions.

3. LOCAL UNION AND ITS RELATIONSHIP

The local union is also involv3d in a web of relationships. The belowfigure show its own activities the views of its national union, other unions,the community in which it is located, its political friends (whom it should notembarrass by its activities), other companies with which it has contacts (ifany), and the management of company A itself.

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Local Union

National Union

Other Unions

Political Friends

Communities

Management of Company A

Other Companies


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4. JOHN DUNLOPS MODEL

The John Dunlops Model of the industrial relations system focused on

the devleopment of arrangements for the workplkace as the ultimate

outcome. There are other outcomesof significance, however, including the

polictical activity ofunions, the decisions by companies about where to locate

facilities, and decisions by mangers and unions about lockouts and strikes.

5. SETHI AND DIMMOCK MODEL

In essence, the transaction model implies that management and union

are influneced in their actions by other factors than economics.

This model begins with environimental variables that include not onlyecological factors but also economic, legal, political, social, and technological

factors as well. These factors affect the actors in the industrial relations

system via their own needs, values, goals, power, and other factors.

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

relationsips with other people. For example, a potential controversy between

an employee and a manager may be avoided if the two people like one

another; or a conflict between a union and a company may be avoided, if the

union leader and the compnays top executive trust each other.

All the factors menetioned so far determine the strategy that each

actor will choose for dealing with other actors. The union, employer, and

government each then determine how to proceed to achieve its goals.

Unions and companies try to achieve objectives through bargaining with one

another. They are also concerned to see that conflict does not get out of

hand. The governement passes legislation andacts in the courts to enforce

its laws.

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

occuring between the organized entities of management, labour, and

government and to a degree participates in them. The union member, for

example, votes on the unions leadership and ordinalrily is asked to vote to

approve or disapprove a contract that the ujnion engotiates with

maangement.

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

managemnet relations because these relations are a significant factor

affectivng the economic, social, and political institutions of our socieity.

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Taking full advantage of the benefits of diversity in the workplace isnot without its challenges. Some of those challenges are:

Communication - Perceptual, cultural and language barriers need tobe overcome for diversity programs to succeed. Ineffectivecommunication of key objectives results in confusion, lack of

teamwork, and low morale.

Resistance to change - There are always employees who will refuseto accept the fact that the social and cultural makeup of theirworkplace is changing. The weve always done it this way mentalitysilences new ideas and inhibits progress.

Implementation of diversity in the workplace policies - This canbe the overriding challenge to all diversity advocates. Armed with theresults of employee assessments and research data, they must buildand implement a customized strategy to maximize the effects of

diversity in the workplace for their particular organization.

Successful Management of Diversity in the Workplace - Diversitytraining alone is not sufficient for your organizations diversitymanagement plan. A strategy must be created and implemented tocreate a culture of diversity that permeates every department andfunction of the organization.

Recommended steps that have been proven successful in world-classorganizations are:

Assessment of diversity in the workplace - Top companies makeassessing and evaluating their diversity process an integral part oftheir management system. A customizable employee satisfactionsurvey can accomplish this assessment for your company efficientlyand conveniently. It can help your management team determine whichchallenges and obstacles to diversity are present in your workplaceand which policies need to be added or eliminated. Reassessment canthen determine the success of you diversity in the workplace planimplementation.

Development of diversity in the workplace plan - Choosing asurvey provider that provides comprehensive reporting is a keydecision. That report will be the beginning structure of your diversity inthe workplace plan. The plan must be comprehensive, attainable andmeasurable. An organization must decide what changes need to bemade and a timeline for that change to be attained.

Implementation of diversity in the workplace plan - The personalcommitment of executive and managerial teams is a must. Leadersand managers within organizations must incorporate diversity policiesinto every aspect of the organizations function and purpose. Attitudestoward diversity originate at the top and filter downward. Managementcooperation and participation is required to create a culture conduciveto the success of your organizations plan.

Recommended diversity in the workplace solutions include:

Ward off change resistance with inclusion. - Involve everyemployee possible in formulating and executing diversity initiativesin your workplace.

Foster an attitude of openness in your organization. -Encourage employees to express their ideas and opinions andattribute a sense of equal value to all.

Promote diversity in leadership positions. - This practiceprovides visibility and realizes the benefits of diversity in theworkplace.

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Legalsystem

Utilize diversity training. - Use it as a tool to shape your diversitypolicy.

Launch a customizable employee satisfaction survey that provides comprehensive reporting. - Use the results to buildand implement successful diversity in the workplace policies.

As the economy becomes increasingly global, our workforce becomesincreasingly diverse. Organizational success and competitiveness will dependon the ability to manage diversity in the workplace effectively. Evaluate yourorganizations diversity policies and plan for the future, starting today.

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

Ans:

An industrial relations system is characterized by having certain activeinstitutions, a context in which they operate, and a certain output. It isimportant to think of industrial relations as being a system because theconcept of a system focuses attention on interrelationships among thesystems parts. In fact, the industrial relation system of each countryconstitutes a method of dealing with certain problems of labour relations thatexist in all countries, but that assume different forms as a result of theparticular form in which they occur.

Industrial relations systems can be defined as first the systems isindustrial in nature because we don not include in it the relationships thatexist in the agricultural sector, which explicitly involves the growing of cropsand husbandry of animals. In most countries these activities still consumemost of the labor force.

Industrial relations may be defined as the processes by which humanbeings and their organizations interact at the work place and, more broaden.The process of relations between persons and organizations is stressed, notjust the resulting standards. Finally, a system is spoken of in standards inthe industrial environment. Each nation may be said to have somecharacteristic fashion of dealing with the social, economic, and legal

problems that arise among its citizen. If each of these areas is conceived toinvolve a system then the industrial relations system may be described as anarea in which they overlap. Thus industrial relation system is seen to involveimportant aspects of social, economic and legal systems of a country as theyrelate to the industrial workplace and the relationships among employeesand managers.

Industrial relation system

The above figure provides a diagrammatic identification of anindustrial relations system. The diagram shows that the industrial relationsystem is derived from the intersection of the other, more basic systems. Italso shows that the other systems overlap two by two outside the industrialrelations system. thus in united states, the eco systems over lap broadlyoutside industrial relations, including, or examples income maintenance

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system

Economic

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programs like Social Security and welfare as many persons who make theirlivelihood in industrial relations system is deeply embedded in our countrysbasic framework and is not a thing apart. In fact, many persons who maketheir livelihood in industrial relations have been broadly trained as tradespeople, lawyers or business people and come therefore from the legal oreconomic system, bringing their attitudes and practices into the industrial

relations system. Industrial relations matters are not separated from thebroad range of legal activities in the United States, but are in fact deeplyintermingled with them.

Twenty years ago it was reasonably accurate to speak of the industrialrelations system of each nation and to compare and contrast them. In recentyears, however, there has been much change, so that in important instancetoday there are greater differences within a nation that between nations.

An industrial relations system consists of the whole gamut ofrelationships between employees and employees and employers which aremanaged by the means of conflict and cooperation.

A sound industrial relations system is one in which relationshipsbetween management and employees (and their representatives) on the onehand, and between them and the State on the other, are more harmoniousand cooperative than conflictual and creates an environment conducive toeconomic efficiency and the motivation, productivity and development of theemployee and generates employee loyalty and mutual trust.

In this context, here is a quick overview of seven predominant factorsthat motivate companies, large and small, to diversify their workforces:

As a Social Responsibility As an Economic Payback

As a Resource Imperative

As a Legal Requirement

As a Marketing Strategy

As a Business Communications Strategy

As a Capacity-building Strategy

Actors in the IR system:

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis--vis labors. Theyhave the right to hire and fire them. Management can also affectworkers interests by exercising their right to relocate, close or mergethe factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions oftheir employment. They exchange views with management and voice

their grievances. They also want to share decision making powers of

management. Workers generally unite to form unions against the

management and get support from these unions.

Government: The central and state government influences and

regulates industrial relations through laws, rules, agreements, awards

of court ad the like. It also includes third parties and labor and tribunal

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courts.

SCOPE:

The concept of industrial relations has a very wide meaning andconnotation. In the narrow sense, it means that the employer, employeerelationship confines itself to the relationship that emerges out of the day today association of the management and the labor. In its wider sense,industrial relations include the relationship between an employee and anemployer in the course of the running of an industry and may project it tospheres, which may transgress to the areas of quality control, marketing,price fixation and disposition of profits among others.

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

1. Collective bargaining2. Machinery for settlement of industrial disputes3. Standing orders

4. Workers participation in management5. Unfair labor practices

Importance of Industrial Relations:

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

Uninterrupted production: The most important benefit of industrialrelations is that this ensures continuity of production. This means,continuous employment for all from manager to workers. The

resources are fully utilized, resulting in the maximum possibleproduction. There is uninterrupted flow of income for all. Smoothrunning of an industry is of vital importance for several otherindustries; to other industries if the products are intermediaries orinputs; to exporters if these are export goods; to consumers andworkers, if these are goods of mass consumption.

Reduction in Industrial Disputes Good industrial relations reducethe industrial disputes. Disputes are reflections of the failure of basichuman urges or motivations to secure adequate satisfaction orexpression which are fully cured by good industrial relations. Strikes,

lockouts, go-slow tactics, grievances are some of the reflections ofindustrial unrest which do not spring up in an atmosphere of industrialpeace. It helps promoting co-operation and increasing production.

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High morale:-Good industrial relations improve the morale of theemployees. Employees work with great zeal with the feeling in mindthat the interest of employer and employees is one and the same, i.e.to increase production. Every worker feels that he is a co-owner of thegains of industry. The employer in his turn must realize that the gainsof industry are not for him along but they should be shared equally and

generously with his workers. In other words, complete unity of thoughtand action is the main achievement of industrial peace. It increases theplace of workers in the society and their ego is satisfied. It naturallyaffects production because mighty co-operative efforts alone canproduce great results.

Mental Revolution:- The main object of industrial relation is acomplete mental revolution of workers and employees. The industrialpeace lies ultimately in a transformed outlook on the part of both. It isthe business of leadership in the ranks of workers, employees andGovernment to work out a new relationship in consonance with a spirit

of true democracy. Both should think themselves as partners of theindustry and the role of workers in such a partnership should berecognized. On the other hand, workers must recognize employersauthority. It will naturally have impact on production because theyrecognize the interest of each other.

Reduced Wastage:- Good industrial relations are maintained on thebasis of cooperation and recognition of each other. It will help increaseproduction. Wastages of man, material and machines are reduced tothe minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higherproduction with minimum cost and higher profits. It also results in increasedefficiency of workers. New and new projects may be introduced for thewelfare of the workers and to promote the morale of the people at work. Aneconomy organized for planned production and distribution, aiming at therealization of social justice and welfare of the massage can functioneffectively only in an atmosphere of industrial peace. If the twin objectives ofrapid national development and increased social justice are to be achieved,there must be harmonious relationship between management and labor.

HOW DOES INDUSTRIAL RELATION SYSTEM OPERATE

An industrial relations system involves certain institutions, which wemay term actor in the system. The three major actors are

i) Management and management organization.

ii) Employees and their organization

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

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

may describe as a set of arrangements, understandings or rules about termsand conditions of employment. Described in this way the system seemsimple enough but unfortunately, there are many complications for examplethere is not one government in any country but many governments, withdifferent levels of government (e.g) federal, state and municipal) and manybranches of government (executive, legislative and judicial). We refer to thisseparation as the balance of powers or separation of power doctrine.Because of this separation, the many agencies of government are each, to adegree separate actors in our industrial relations system. the actors in ourindustrial relations system interact with one another to develop the basicoutput of the system, including a set of rules or understanding about working

conditions and standards of employment.

When arrangements have been established, they have an impact onboth management and labour, who with government participated in their

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established. Sometimes the impact, or feedback, is what was expected andintended. When this is the case, the actors in the industrial relations systemmay turn their attention to other problems. However, sometimes thearrangements that have been created have unexpected consequences.Management or labour may be surprised and upset at the unintendedconsequences of a rule. In this case, the actor that is aggrieved is likely to

seek further changes in the rule, or may go to the regulatory agencies toattempt to get the rule changed.

An industrial relations system may also be said to operate within a setof constraints involving both the technology available to the economicsystem and the ideology of the society as a whole. Technology is veryimportant, for its helps to determine the types of jobs available and theamount of output that can be produced and in turn can support livingstandards. Improving technology is both a blessing and a curse to theindustrial relations system. it creates the capacity to provide higher livingstandards. But it also generates disputes among labour and management

about work assignments, pay levels and similar matter associated with newprocesses and equipment.

The ideological direction of a society is also an important constraint onan industrial relations system. Stability in industrial relations requires adegree of correspondence among the actors views of industrial society,although the specific nature of the views is less significant.

UNDERSTANDING ABOUT IR SYSTEM ?

There is much to be said about the understandings or arrangementsthat tare the product of the industrial relations system. First they mayconcern many types of matters, including compensation, discrimination,hiring and workers rights. Second, they may be either substantive orprocedural.

Substantive arrangements establish a matter exactly, as for example,the amount of compensation, the length of the workday, and the size of theovertime premium (e.g time and a half).

The arrangements produced by an industrial relations system may bein several different forms. In many instances they are in the form of thepersonnel policies, practices, and procedures of various companies. In many

instances they are found in the collective bargaining agreements betweencompanies and labour unions. In some instances they are in written form; inother instances they are in the form of tactic understandings and/or unwritten practices.

Some union management agreements are very brief and treat only a

few matters. Main contents are as under:-

Local working conditions

Contracting out (i-e subcontracting)

Recognition and union member ship

Rates of pay

Job classifications and incentives

Hours of work and overtime

Holidays

Vacations

Seniority

Adjustment of complaints and grievances

Discharge of employees

Management functions

Safety and health

CONSTRAINTS ON INDUSTRIAL RELATIONS SYSTEM

Unions

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They are a device by which employees band together topersuadde or compel employers to provide better pay and workingconditions. They also provide employees with a common voice indelaing with employers, expressing employees concerns andneeds.

Unions serve as a means fo rmembers to improve themselves

through study, educaiton and leadership.

Technology & Economic System

An industrial relations system may also be said tooperate witin a set of constraints involving both the technologyavailable to the economic system and the ideology of the society asa whole.

Technology is very important, for it helps todetermine the types of jobs available and the amount of output thatcan be produced and in turn can support living standards.

Improving technology is both a blessing and a curseto the industrial relations system.

It creates the capacity to provide higher livingstandards, but it also generates disputes among labour andmanagement about work assignments, pay levels, and similarmaters associated with new processes and euipment.

Society

The ideological direction of a socieity isalso an important constraint on an industrial relations system.

People generally accept privately ownedbusiness as a legitimate part of the present economic system, andthe attempts of mangement to make a reasonable profit for privatestock-holders are accepted.

Legal framework and industrial relations

The constitution of Pakistan contains provisions for the economic andsocial well-being of the people and for the promotion of social justice.Fundamental rights with regard to the security of life or liberty, prohibition ofslavery and forced labour, and the right to form associations or unions,among others, are enshrined in the constitution; any law, custom, or usageinconsistent with these fundamental rights is void and the state is prohibitedfrom making any law which takes away or curtails these fundamental rights. The constitution thus supports the progress of labour legislation for thebenefit of the working people.

Under articles 141 and 142 of the constitution, both the nationalParliament and the provincial assemblies can make laws with regard to anymatter contained in the Concurrent.

Industrial Relations Act, 2008 in Pakistan

Industry and workplace relations in Pakistan are now governed by the

Industrial Relations Act, 2008 (IRA-08).

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

EOBI, the WWF, and the Pakistan Mint. Through a presidential order (No. 6),

the law banning trade unionism in Pakistan International Airlines (PIA) has

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been repealed. The act has removed the obligation of a CBA to be affiliated

with a national trade union federation or organization. It has withdrawn the

right to organize from the workers of the Pakistan Telecommunication

Authority (PTAC).

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

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

collective bargaining.

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

of constraints involving both the technology available to the economic

system and the ideology of the society as a whole.

Conclusion

Where government, unions, and mangers do not accept each others

legitimacy, very great difficulties can develop for industrial relations system.

Stability in industrial relations requires a degree of correspondence amon the

actors views of industrial socieity, althouth spediic nature of the views (e.g.

favourable or unfavourable to private business or favourable or unfavourable

to unions) is less significant.

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

Ans:-

Labor Union

A labor union, or trade union, is an association of fair wage-earnersuniting for the purpose of maintaining and improving the conditions of theiremployment. Over a three-hundred-year period, labor unions havedeveloped into a number of forms, influenced by various political andeconomic regimes. Immediate objectives and activities of trade unions oftenvary according to industry. Despite such differences, however, thefundamental ideals upheld by traditional labor unions include the provision ofmember benefits, the right to collectively bargain, and the right to takeindustrial action. Early trade unions, like Friendly Societies, provided a rangeof benefits to accommodate their members in times of unemployment, illhealth, old age, and death, many of which have subsequently been assumed

by the state. Union members are also protected when taking industrialaction, such as striking to achieve particular goals. Unions often promotepolitical legislation favorable to the interests of their members or workers asa whole. Thus, provided cooperative relationships are maintained betweenmanagement and labor unions, their work is generally beneficial to society,ensuring that workers are well-cared for and thus able to make their bestcontribution to society as a whole.

Main Objectives

Over the last three hundred years, many trade unions have developedinto a number of forms, influenced by differing political abjectives and

activities of trade unions vary, but may include: Provision of benefits to members: Early trade unions, like Friendly

Societies, often provided a range of benefits to insure membersagainst unemployment, ill health, old age and funeral expenses. In

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many developed countries, these functions have been assumed by thestate; however, the provision of professional training, legal advice andrepresentation for members is still an important benefit of trade unionmembership.

Collective bargaining: Where trade unions are able to operateopenly and are recognized by employers, they may negotiate with

employers over wages.

Industrial action: Trade unions may enforce strikes or resistance tolockouts in furtherance of particular goals.

Political activity: Trade unions may promote legislation favorable tothe interests of their members or workers as a whole. To this end theymay pursue campaigns, undertake lobbying, or financially supportindividual candidates or parties (such as the Labour Party in Britain) forpublic office.

HistoryIn the eighteenth century, much of Western society witnessed the

worlds first Industrial Revolution and the abandonment of an agrarianculture with craft based production. The young industrial environmentprovided much of the momentum for the establishment and advancement ofthe labor union.

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

important arena for change.

Early History

Trade unions have sometimes been seen as successors to the guilds ofmedieval Europe, though the relationship between the two is disputed.Medieval guilds existed to enhance their members livelihoods, throughcontrolling the instructional capital of artisanship, and the progression oftheir members from apprentice to craftsman, journeyman, and eventuallyto master and grandmaster of their craft. Guilds also facilitated mobilityby providing accommodation for their members traveling in search of

work. Though guilds exhibited some aspects of the modern trade union,they also exhibited aspects of modern professional associations andcorporations.

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

Since the 1894 publication of Sidney and Beatrice Webbs History of Trade Unionism, trade unions have been defined as a collection ofemployees working to negotiate pay rates, working conditions, andmember benefits. Others, however, have put forth the view that tradeunions are part of a broader movement to benefit society, to be conceivedof along the lines of freemasons, friendly societies, and various fraternalorganizations.

Later History

In the eighteenth century, most countries deemed labor unions illegal,and constructed severe penalties, including execution, for the attempt toorganize such affiliations. Despite these measures, labor unionssucceeded in forming, and acquired political powers resulting in thepassage of legislation which legalized organizing efforts. Despite theawarding of legal stature, trade unions continued to face generations ofopposition.

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The right to join a trade union is contained within the UniversalDeclaration of Human Rights in Article 23, subsection 4. This clause statesthat Everyone has the right to form and to join trade unions for theprotection of his interests (1948). This article also prohibits the forcing ofa person to join or form such a union body. The forcing of an individual toenter into a union, whether by a government or a business, is generally

considered a human rights abuse. Similar allegations can be leveledagainst any employer found to be discriminating against employeesbased on union membership.

Throughout nineteenth-century continental Europe, socialist partiesand anarchists played a prominent role in the formation and progress oftrade unions. In Britain, New Model Unions dominated the unionmovement. There, trade unionism would remain stronger than thepolitical labor movement until the early years of the twentieth century,which marked the formation and growth of Englands Labour Party.

The Modern Labor Union

There are three major structures of union organizing: craft unionism,general unionism, and industrial unionism. Craft unionism is defined bythe organization of a particular section of skilled workers. An organizationof a cross-section of workers from various trades is known as generalunionism. Attempting to organize all workers within a particular industryis defined as industrial unionism.

Labor unions are often divided into branches, or locals, and are unitedthrough national federations. These federations are affiliated with

international organizations, such as the International Confederation ofFree Trade Unions.

Union functions are also delineated by a service model and anorganizing model. The service model maintains worker rights, providesmember services, and resolves union disputes. The organizing modeltypically involves full-time organizers, who foster confidence, buildnetworks, and promote leaders throughout the workforce. Labororganizers may also launch confrontational campaigns involving largenumbers of union members and affiliates. Most labor unions are a blend ofthese two philosophies. Union leadership is usually achieved through

democratic elections.

Union Operations

Companies that employ workers with a union generally operate on oneof several models called shops. Within the United States, unions can operateunder a closed shop or a union shop. Under a closed shop, a union willemploy only those who are already union members, and employers mustrecruit directly from a union pool of applicants. A union shop employs non-unions workers as well, but establishes a time limit within which new hiresmust become union members.

An agency shop requires non-union workers to pay a fee to the unionfor its services in negotiating their contracts. This is sometimes referred to asthe Rand formula. In certain situations regarding U.S. governmentemployees, fair share laws make it easy to require these sorts of payments.

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

permitted the existence of the union shop.

Political Relationships

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Unions may also engage in broader political or social struggles. Socialunionism defines the many unions that use their organizational strength toadvocate for social policies and legislation considered favorable for theirmembers. In some countries, unions maintain close alliances with politicalparties. In many countries, labor unions may be closely linked to, or mayeven share leadership with, a political party intended to represent the

interests of the working class. Often times, these parties include left-wingpoliticians or socialists.

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

In the United Kingdom, the relationship between the labor movementand the labor party has disintegrated over the partys support ofprivatization plans, a position at odds with the movements perception ofworker interest.

Employment Laws

Varying structures of employment laws can also affect a unionsbusiness operations. In many western European countries, wages andbenefits are largely set by a governmental body. The United States takes amore laissez-faire approach, setting a minimum standard but allowing mostworkers' wages and benefits to be decided through collective bargaining andmarket forces. South Korea has historically regulated collective bargainingby requiring employers to participate in bargaining practices. However,collective bargaining is only legally recognized if the sessions are held before

the lunar New Year. Under totalitarian regimes, such as Nazi Germany andthe Soviet Union, labor unions were typically controlled by de factogovernment agencies, devoted to the smooth and efficient operation ofenterprises.

International Operations

Labor unions also engage in international operations. Suchorganizations include the World Confederation of Labor and the WorldFederation of Trade Unions. The worlds largest international organization,the Brussels-based International Confederation of Free Trade Unions,

encompasses an estimated 231 affiliated organizations throughout morethan 150 countries and territories, and has a combined membership of 158million.

National and regional trade unions organizing in specific industrysectors or occupational groups have also formed global union federations,such as Union Network International and the International Federation ofJournalists.

Labor Unions in Different Countries

As labor laws remain diverse in different countries, so do the functionsof unions. For example, German labor unions legally may operate only anopen shop policy, and all discrimination based on union membership isforbidden. German unions also play a large role in the managerial decisionsand co-determination of global unions by participating in corporate boards.

The diversity of labor union operations in several countries, includingPoland, South Africa, the United Kingdom and the United States, is brieflydetailed below.

Poland

Polands Independent Self-governing Trade Union or, Solidarnoc(Solidarity), is a trade union federation founded in 1980. In its earliest years,Solidarity constituted a broad anti-communist social movement that the

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Polish government attempted to destroy through martial law in 1981, andthrough a history of repression.

In 1989, roundtable talks between a weakened Polish government andpolitical opponents led to the establishment of semi-free elections. Later thatyear, a Solidarity-led coalition was formed and in December, union leader

Lech Wasa was elected president. Since its 1989 inception, Solidarity hasbecome a more traditional trade union, with relatively little impact on thePolish political scene of the early 1990s.

The survival of Solidarity was an unprecedented event not only inPoland, a satellite state of the USSR ruled by a one-party communist regime,but the whole of Eastern Europe. It meant a change in the hard-line stance ofthe communist Polish United Workers' Party, which sought to end a 1970protest with machine gun fire. The establishment of Polands Solidarity alsodiffered from the broader Soviet communist regime, a coalition which hadquelled both the 1956 Hungarian Uprising and the 1968 Prague Spring with

Soviet-led invasions.

The influence of Solidarity led to the intensification and spread of anti-communist ideals and movements throughout Eastern Europe, weakening aseries of communist governments. A succession of peaceful anti-communistcounterrevolutions in Central and Eastern Europe were sparked. Variouscommunist-opposing groups throughout Eastern Europe followed the lead ofSolidarity, eventually leading to the Eastern Bloc's effectual dismantling, andcontributing to the collapse of the Soviet Union in the early 1990s.

South Africa

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

Trade unions continue to represent an important force in South Africa,encompassing a quarter of the general work force, represented by over 3million members. The Congress of South African Trade Unions (COSATU) is

the largest of the three major trade unions with a membership of 1.8 million.COSATU is part of the Tripartite alliance with the ruling African NationalCongress (ANC), and the South African Communist Party (SACP).

United Kingdom

British labor unions were often subject to severe repression until themid-nineteenth century, but continued to exist throughout the city ofLondon. During that period, workplace militancy often erupted, as in the

1820 rising in Scotland, where 60,000 workers attempted a general strike. In1834, a significant attempt to set up a national labor union came in the formof Robert Owen's Grand National Consolidated Trades Union, which attracteda range of socialists and revolutionaries. However, facing severe pressures,the organization would later collapse.

In the 1840s, trade unionism was overshadowed by the politicalactivities of the British parliament, though the establishment of less radicaltrade unions would take hold in the 1850s. In 1860, the London TradesCouncil was founded, followed by the establishment of a Royal Commissionon Trade Unions in 1867 and the Trades Union Congress in 1868. Three

years later, legal status would be awarded to British trade unions under the1871 Trade Union Act.

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Trade union membership increased throughout years of industrialunrest and World War I, resulting in a widespread recognition of unions andan increase in management operations.

United States

On September 5, 1882, some 10,000 workers assembled in New YorkCity to participate in America's first Labor Day parade. After marching fromCity Hall, past reviewing stands in Union Square, and then uptown to 42ndStreet, the workers and their families gathered in Wendel's Elm Park for apicnic, concert, and speeches. This first Labor Day celebration was eagerlyorganized and executed by New Yorks Central Labor Union, an umbrellagroup made up of representatives from many local unions. Debate continuesto this day as to who originated the idea of a workers' holiday, but itdefinitely emerged from the ranks of organized labor at a time when theywanted to demonstrate the strength of their burgeoning movement andinspire improvements in their working conditions.

United States labor unions arose amidst the nineteenth-centuryIndustrial Revolution and have revolved around industrial advancement andthe behavior of the U.S. economy. Early historical resistance by employers tomembers and affiliates of labor unions marked a long-establishedrelationship of adversity, and posed a great challenge to union organizersand members.

Labor unions in the United States now function as a legally recognizedrepresentation of workers from various industries. Recent years have seenan increase in participation among the unions service sector and public

sector. Activity by labor unions in the United States is generally focused oncollective bargaining rights, employee benefits, and working conditions.Unions have also focused on the representation of their members inviolations of contract provisions by employee management. American unionsremain an important political factor through the mobilization of theirmemberships and affiliations with like-minded activist organizations. Mainpolitical agendas include immigrant rights, trade policies, health care, andliving wage campaigns.

Other Countries

Some Nordic countries including Belgium, Sweden, and Finland havestrong, centralized labor unions, where each industry represented has aspecific union and together comprises a national union confederation. Thelargest Swedish union confederation is Landsorganisationen (LO), and hasapproximately two million members totaling more than one-fifth of Sweden'spopulation. Finland's equivalent, the Central Organization of Finnish TradeUnions (SAK), has about one million members out of a total countrypopulation of 5.2 million.

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Q. #5: What is changing and why in the new workplace versusold work place? Discuss with examples.

Ans:-

Today the workplae is changing. A dominant mode of organizaing work came out of theearly 1900s Taylorism, or Scientific Management but today that system is being

challenged by new forces that are economic, technological, and human in nature.

Workplace can be defined as the environment (as place, tools,social connections, physical well being) enabling work to be done. This broader definition, will lead workplace development to include thedetermination of:

where work will be done (such as in an office, at home, in a plane orcar, in an office, or at a conference, all of the above, etc.),

what processes (such as transaction processing, innovating,communicating, learning, etc) will define the work to be done,

how technology will enable those processes to be carried out (suchas data access, groupware, mobileware, etc.)

what physical environment will support the work (such as officedesign and layout, furniture, equipment, temperature, light, etc.)

when and where people interact to exchange knowledge andinformation

Scientific management was expanded and adapted by its adherentsfrom a theory of productivity improvement to a philosophy holding that

a. workers then to be lazy when unsupervised and so require closesupervision at work;

b. asking workers to make conscious decisions about production workhas the potential to disrupt present machine routines; hence,decisions must be made by those away from the line segment.

c. wages are the most powerful motivator of behaviour, and, as theyrise, people will work harder, hence, profits from productivityimprovement should be shared with workers as increased pay.

The eventual realization that few benefits of automation were flowingback to assembly workers except in higher wage rates, and that workerswere absorbing the bulk of the psychological and physical punishment ofmonotonous work, generated a discontent that unions expressed. But inrecent decades changes in the business environment, in technology, and inthe expectations of employees have compelled companies to begin movingaway from the scientifically engineered workplace.

Over time, scientific management proved both beneficial and costly. Itas beneficial in that it pushed firms to rigorously study their production

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

The eventual realization that few benefits of automation were flowing

back to assembly workers except in higher wage rates, and that workerswere

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Modern working practices and technologies are typically designed toshape the nature of work and affect employees behavior. They include, forexample, lean manufacturing, advanced manufacturing technology, totalquality management, call centres, supply-chain partnering and knowledgemanagement. Surveys show that these practices are increasingly inunintended ways, have deleterious effects on employees and not produce

the hoped for improvements in employee and organizational performance.Indeed, changing working practices often creates problems for employees atall levels in the organization. It is therefore essential that we understand thenature of modern working practices, the extent of their use, and the effectsthat they have on employees and organizational performance so that theycan be more effectively designed and managed.

The aims of this topic are therefore to examine:i. The nature and extent of modern working practices and

technologies.ii. The impact of modern working practices on how people work

and their experience of work.

THE ESSENTIALS OF THE NEW WORKPLACEModern working practice Definition

Learn manufacturing:- An integrated system of production with asingle production flow that is pulled by the customer. Emphasis onsmall batch manufacture, just-in-time, team-based work andparticipation to eliminate non-value-adding activities and variabilities.

Total quality management:- A comprehensive, organization-wideeffort that is an integrated and inter-functional means of improving the

quality of products and services and of sustaining competitiveadvantage Advanced manufacturing. The application of computer-based technology to automate and technology integrate the differentfunctions in the manufacturing system Supply-chain partneringDeveloping long-term, cooperative relationships with suppliers andcustomers Team work A collection of individuals who areinterdependent in their tasks and outcomes, who see themselves andare seen by others as a distinct social entity within a larger social unitCall centres A work environment in which the main business ismediated by computer and telephone-based technologies that enablethe efficient distribution of calls (or allocation of outgoing calls) to

available staff, and permits customeremployee interaction to occursimultaneously with the use of display screen equipment and theinstant access to, and inputting of, information Knowledgemanagement The use of practices, particularly IT-based technologiesand community- and network-based practices, to centralize,collectivize and create knowledge so that it can be exploited toincrease organizational performance and to develop new opportunitiesEmployee involvement The use of practices to increase employeecontrol, participation and empowerment and involvement, and thesupply of personal and Organizational resources necessary to do the job Tele working/Virtual working remotely from the home, remote

offices or other sites for all or most of the working week, andconnected to the main organization by telephone and computertechnologies

The Traditional Versus the New Workplace

Traditional Workplace

A traditional workplace is marked by several features, among themsharp task specialization and extensive management hierarchy:

Task specialization: first came to the attention of industrywhen economists like Adam Smith showed that separating the stepsin a production process and assigning each one to a different

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person, rather than asking each person to perform all the steps asnecessary, greatly enhanced total output.

Management hierarchy: on the other hand, emerged inancient China and Egypt as a device allowing small groups of armyofficers to command and coordinate the activities or large groups ofsoldiers and thereby impose unity of purpose on them.

Need for Change

Today the concept to make mass production techniquesmachinery is necessary. This also needed management method bywhich to structure the supporting human infrastructure in thefactories. This found what managers were looking for in scientificmanagement, a set of concepts for governing industrial workplacesoften associated with Frederick W. Taylor.

Scientific management was expanded and adapted by itsadherent from a theory of productivity improvement to a philosophyholding that:

1. Workers tend to be lazy when unsupervised and so requiredclose supervision at work; hence, supervisors arranged inhierarchies are needed to manage factories.

2. Asking workers to make conscious decisions about productionswork has the potential to disrupt preset machine routines; hence,those away from the line management, must make decisions.

3. Wages are the most powerful motivator of behavior, and as theyrise people will work harder; hence, profits from productivityimprovement should be shared with workers as increased pay.

Concept of New Workplace

There has emerged a new concept for managing the

workplace. Broad authority is delegated to employee teams,

thereby empowering them to operate largely on their own and

without direct supervision.

This large-scale elevation of authority permits a reduced

number of managers to successfully lead organizations without

breaking themselves down with overwork. Also brings a new type

of employee to the forefront, one capable of taking initiatives and

working under minimal supervision, and skilled in many tasks

instead of just one-nearly the exact opposite of the desired

attributes of a worker under scientific management.

Main Objectives

The new system is an attempt by management to improve

competitiveness.

At its center are programs to improve quality and productivity

and to lower costs. These programs appear under various labels

including total quality management (TQM) and market-driven

quality (MDO) but have certain elements in common. For example,

they stress a transformation in management from directing work to

leading employees; from supervising employees at narrow tasks toempowering them to utilize their own discretion in how to

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accomplish their missions in the firm; from having many layers of

management to far fewer managers.

They even allow team many layers of management to far fewer

managers.

They allow farms of employees to largely manage themselves.

Workers are invited or required to participate in processes of

continuous improvement through quality circles or employee

involvement initiatives, which are described.

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Old versus New Workplace

1. What management Assumes about workers

OLD WAY Worker wantsnothing from the job except

pay, avoids responsibility, andmust be controlled andcoerced.

NEW WAY Worker desireschanging will seek

responsibility autonomyagreement permits

2. How the-job is designed

OLD WAYWork is fragmentedand deskilled. Worker isconfined to narrow job. Doingand thinking are separated.

NEW WAYWork is multi skilledand perform by teamworkwhere possible worker can upgrade whole system. Doing

and thinking are combined.

3. Managements organization and style

OLD WAY Top-down militarycommand with worker atbottom of many supervisorylayers; worker is expected toobey orders and has no power.

NEW WAY Relatively flatstructures with few layers;worker makes suggestions andhas power to implementcharges.

4. Job training and security

OLD WAY worker is regardedas a replaceable part and isgiven little initial training orretraining for new jobs. Layoffsare routine when businessdeclines.

NEW WAY Worker isconsidered a

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