Employee Discipline & Collective Bargaining
Prepared By: Guided By:Zankhana Patel Rajesh SirAnkit Vaghani Jay RavalNirali Mehta
Submitted To:Department of Business Administration,
Faculty of Management, Bhavnagar University,
Bhavnagar
Employee discipline
Employee DisciplineIntroduction of employee disciplineTypes of disciplineCausesPunishmentProcedure for taking disciplinary action
Introduction of employee discipline
The behaviour of an employee is at the root of all discipline in an organisation. Every manager wants this behaviour to be in conformity with the required system which he has prescribed in order to achieve the goals.
But, occasionally the employees deviating from this required system.
The reason is that they have their own unique individual systems of behaviour which they cannot easily give up when they enter as members of an organisation and thus many problems of employer-employee relation and of individual adjustment arise.
Types of disciplineDiscipline may be two types:
Positive and NegativePositive discipline:
It refers to an organisational atmosphere in which subordinates willingly abide by rules, which they consider fair.
Negative discipline:
It is one in which management has to hold out threat by imposing penalties on wrongdoers.
When this pressure becomes increasingly severe each time a man is disciplined, it is called “progressive” or “corrective” discipline.
Causes of disciplineIneffective leadership which cannot
control, coordinate and motivate workers.Low wages and poor working conditions.Lack of promotional opportunities due to
which people feel stagnated.Absence of any code of conduct to
regulate behaviour on both sides.Lack of timely redressal of workers
grievances.
Unfair management practices.Defective communication system.Lack of workers education.Uninteresting work.Outside political influences.
Punishment
Kinds of punishment
Oral reprimand
this punishment is generally given for some minor offences such as failure to obey safety rules, smoking in a prohibited area, sleeping on the job.
Written reprimand
In such a situation it is desirable that it is issued in writing and brought record so that it may support , if any necessary.
Loss of privileges
For such offences like leaving work without permission.
Fines
Fines means a deduction from the remuneration of the employee by way of punishment.
Punitive suspension
It is different from the suspension pending an enquiry. Under this an employee prohibited from performing the duties assigned to him and his wages are withheld for so long.
Withholding of increments
the cumulative effect of losing an increment.
Demotion
reduction of an employee to a lower grade from the higher position.
Discharge
use to denote removal of an employee from service by way of punishment.
Dismissal
it is the ultimate penalty which is rarely resorted . Discharge and dismissal have the same result, termination of service of the employee.
Procedure for taking disciplinary action
Preliminary investigation: To find out whether a prima facie case
of misconduct exists.Issue of a charge-sheet: It is not a punishment in it self. It is
merely notice of a charge that the worker is responsible for some misconduct and that the management wants to know what they say about it. It gives the worker an opportunity to explain them conduct. It is also called ‘show cause notice’.
Suspension pending enquiry, if needed :
If suspension is in the interest of discipline and security in the establishment , the management may suspend a worker even before the charge sheet is issued or an order of suspension may be given to the worker along with the charge sheet.
Notice of enquiry The worker may admit the charge in an
unqualified manner. The worker may not admit the charge and
charge merits only minor penalty. The workers may not admit the charge
and the charge merits major penalty.
Conduct of enquiry:Recording of findings by the enquiry officer:
At the conclusion of the enquiry proceedings the enquiry officer should decide as to whether the charges made are valid or not along with the reasons for his findings.
Awarding punishment:
The punishment should be awarded on the basis of findings of the inquiry, past record of the employee and gravity of misconduct.
Communication of punishment: Reference to the letter of charges issued
to the employeeReference to the enquiryReference to the findings of the enquiry Decision whether to punish or not Date from which the punishment is to be
effective.
Collective bargaining
Topics to be coveredIntroduction of Collective Bargaining
History of collective bargaining
Nature of collective bargaining
Forms Of Collective Bargaining
Types Of Bargaining
Levels At Which Collective Bargaining Is
Undertaken
Advantages Of Collective Bargaining
Collective Bargaining• “Collective Bargaining is a process in which the
representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship”.
– FLIPPO
• ‘collective’ – group
• 'bargaining' – proposals and counter proposals
• Process involve discussions and negotiations
• To reconcile their conflict interests
Nature of collective bargaining • Wages fixation.• Increments and bonus payment.• Hours of work & overtime.• Terms & conditions of work.• Safety, welfare and health care.
History of collective bargaining The term "collective bargaining" was first used in
1891 by economic theorist Sidney Web.However, collective negotiations and agreements had
existed since the rise of trade unions during the nineteenth century.
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Forms of Bargaining Structures
Between the single employer and single union. (single plant bargaining)
Between the worker bargaining with the common employer through diff. union. (multiple plant bargaining)
Between separate union bargaining with separate employer. ( multiple employer bargaining)
Types Of BargainingDISTRIBUTIVE BARGAINING
INTEGRATIVE BARAINING
• It deals with issues in which two or more parties have conflicting or advisory interests.
“WIN-LOSS”
It is a process where both the parties can win, each contributing something for the benefits of other party.
“WIN-WIN”
Levels At Which Collective Bargaining Is Undertaken
At Plant Level
At Industrial Level
At National Level
Plant Level:It involves the company or establishment.
This is generally for the certain common norms of conduct with a view to regulating labour management relations & misunderstanding.
This dispute had occurred for the several norms on the basis of dearness allowance, retrenchment policy, job evaluation
Industrial Level Bargaining: It aims at the standardization of the terms of
employment in one industry, includes a range of bargaining patterns.
Example of Ahmadabad textile industry
Agreement between mill owners association and the Ahmadabad textile labour association.
National Level:Bargaining is a tri-partite form of
negotiation between union confederations, central employer associations and government agencies.
It aims at providing a floor for lower-level bargaining on the terms of employment, often taking into account macroeconomic goals.
Advantages of Collective Bargaining
From the management’s point of view
1. Collective bargaining helps in reducing
labour problems to the minimum and in
maintaining pleasant relations between labour
and management.
2. Collective bargaining opens up the channel
of communication between the workers and
management thus increasing worker
participation in decision making.
3. Collective bargaining helps to create a
sense of job security among employees.
From the Employee’s point of view
1. Collective Bargaining helps to develop a
sense of responsibility and accountability among
the employees.
2. Collective Bargaining increases the morale
and productivity of employees.
3. It helps in securing a prompt and fair
settlement of grievances.
From the society’s point of view
Collective bargaining leads to industrial peace in the country which in turn helps to increase the pace of a nation’s efforts towards economic and social development.
It helps in implementation of labour legislation.
Collective Bargaining Process
Collective bargaining generally includes negotiations between the employee’s representatives and employer’s representatives. Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment.
The result of collective bargaining procedure is called the collective bargaining agreement.
There are two stages1) Negotiation2) Contract administration
Negotiation Stage
Negotiation is concerned with resolving conflict between two or more parties, usually by the exchange of concessions. It can be competitive known as win-lose negotiation or can be cooperative, known as win-win. It does not always have to imply confrontation although it may sometimes require an element of workmanship.
There are two primary purposes for negotiating in the industrial relations context. First, to reconcile difference between management and unions and second, to device ways of advancing the common interest of parties.
Negotiation Steps:
1) Identification of ProblemThe nature of problem influences whole process of
negotiation. Whether the problem is very important or no so important, major or minor. It also influences selection of representatives, their size, period of negotiation and period of agreement. As such it is important for both parties to be clear about the problem.
2) Preparing for negotiationWhen it becomes necessary to solve the problem through
collective bargaining process, both the parties prepare themselves for negotiations. It starts with selection of representatives who can carry-out negotiations with patience, composure and who can present their view effectively. Other preparations include fixing up time for negotiations, period of negotiations, etc which also depend upon circumstances.
3) Negotiation of AgreementUsually there will be a chief negotiator who is from management side. He directs and presides the process.This is a major obstacle in the bargaining process. When a solution is reached at, it is put on the paper taking concerned legislations into consideration. Bothe the parties concerned sign the agreement which, in turn, becomes a binding contract for both the parties.
Prerequisites for Collective BargainingEffective negotiations and enforcement requires a
systematic preparation of the base or ground for bargaining which involves the following three steps:
Recognition of the Bargaining Agent. The management should give recognition to the trade. The
bargaining agent of the workers should be properly identified before initiating any action.
Deciding the Level of Bargaining. Whether the dealings are confined to enterprise level,
industry level, regional or national level should be decided as the contents, scope and enforcement agencies differ in each case.
Determining the Scope and Coverage of Bargaining. It would be better to have a clear understanding of what
are the issues to be covered under bargaining. Many a time, bargaining is restricted to wage and working conditions related issues but it would be advantageous for both the management and union to cover as many issues as possible to prevent further friction and disputes. Therefore, all the important and interrelated issues are to be taken for consideration.
(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 be an existence 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.
Tactics or Strategies in Collective BargainingThe tactics or strategies to be adopted in any collective
bargaining situation vary depending upon the culture of the organization and different environmental factors, particularly the type of union operating in an industrial establishment.
Following are some common strategies for collective
bargaining:
The management has to anticipate the demands and also understand the main directions in which the demands are going to be placed. The negotiations are best done if both the parties do their home work well. The representatives must come to the bargaining table equipped with the necessary information and supporting regarding the company’s economic status and prospects, the prevailing rates of pay and conditions of employment in comparable industries in the local areas.
It is essential that a real team spirit is maintained throughout the negotiations. The team must have the confidence of facing any eventuality which may come up during negotiations. The team must have the power of taking decisions.
Any collective bargaining strategy should firstly separate the personalities from the problems for arriving at a workable and desirable agreement and secondly, explore the possibilities for harmony and compatibility.
Collective bargaining is two way traffic. The management as well as union must gain out of collective bargaining. Hence, the management team should also present their counter- proposals. For instance, the union pressure for a wage-hike may be matched by a counter demand for an increase in production, reduction in absenteeism, avoidance of wasteful/restrictive practices, industrial peace, and so on.
There is a greater necessity on the part of the management representatives to give a patient hearing to the demands of the union and not to react even if there is a threat of strike or work stoppage.
It is also a bad strategy to depute persons of law rank without authority to commit the management on the negotiating table. Such step may give an impression to the union that the management does not take the bargaining process with all the seriousness that it deserves.
A thorough analysis and understanding of different items in the charter of demands will enable negotiators to arrive at a proper judgment.
It is a good tactic to consider the cost of all the union proposals and to take up the non-cost items first or items on which it is easy to come to an agreement so that a suitable collective bargaining atmosphere is created for negotiating on more serious items which have financial implications.
Sometimes, the management instead of announcing its concessions at the bargaining table announces them before the conciliation officer as the starting point for further negotiations. This is not bargaining in good faith.
Collective Bargaining in India
Introduction • Collective bargaining is actually a struggle
for building a democratic and civilized society• We can not imagine a civilized society without
independent sectional organizations and political parties representing the overall socio-economic-political interests of the masses
Whenever capitalist development moved forward at extraordinarily speedy rate, most autocratic regimes ruled the states
Seems most of the third world countries have entered in a similar phase.
Liberalization and Globalisation means- state acting as corporate agent to remove all barriers for capital accumulation and mobility of capital.
Therefore suddenly in almost all the third world countries, an all-round attack on right to organizes and collective bargaining
Structure of Work force > 97 % enterprises in informal sector; 3% formal sector
T. Employment: 396 million in 2000 to 456 million in 2005)
Informal sector: 393.2 million (86 percent)--Agriculture: 251.7 million
self-employed (63%), regular wage workers (17%) and casual 20 %.
Formal sector employment increased from 54.9 to 62.6 million; but formal employment increased only from 33.6 million to 35.0 million
70,000 registered unions (politically affiliated and independent) and non-registered organizations.
Total verified membership about 2.5 crore (25.5 million) about 30% of it represented by agricultural workers.
Union density in India only 8 percent .
