KARAN VEER SINGH

Industrial RelationsIR is concerned with the relationship between

management and workers and the role of regulatory mechanism in resolving any industrial dispute.

IR is concerned with the system , rules and procedures used by unions and employers to determine the reward for effort and their conditions of employment, to protect the interest of the employees and their employers, and to regulate the ways in which employers treat their employees.

Objectives of IRApart from the primary objective of bringing about

sound and healthy relations between employers and employees, industrial relations aim:

i) to facilitate production and productivity;ii) to safeguard the rights and interests of both labour

and management by enlisting their co-operation;iii) to achieve a sound, harmonious, and mutually

beneficial labour management relations;iv) to avoid unhealthy atmosphere in the industry,

especially work, stoppages, gheraos, strikes, lockouts; and

v) to establish and maintain industrial democracy.

IR cont’d

IR specially covers the following areas-:1) Collective bargaining2) Role of management , unions and govt.3) Machinery for resolution of industrial

dispute4) Individual grievance and disciplinary

policy and practice

Management Perspectives in IRTo achieve the best results/outcomes with the

least inputs, improve return on capital and wages and working conditions of workers. Also to offer incentives to managers in order to motivate them and strive for continuous relations and mutual cooperation between employees and employers.

Trade Union Perspective in IRTo improve wages and working conditions,

gain control over work and secure Redressal of grievances.

Parties to IREmployeesEmployee AssociationsGovernment

Employer – Employee – Relations

Employers / ManagementEmployer AssociationsCourts and Tribunals

The System Framework

Approaches to IRUnitary Approach –

There is only one source of authority: Management. They own and therefore they control.

IR is grounded in mutual cooperation, individual treatment, team work and shared goals.

Employers believe that conflict is necessary.Direct negotiation with employee and

participation of Government Tribunals, and unions are not sought.

Pluralistic Approach Organization as coalitions of competing interest,

where the management’s role is to mediate amongst the different interest group.

Conflicts are necessary but they should be managed and control.

TU are legitimate representatives of employee interest.

Marxist/Radical ApproachBased on the notion that the production system

is privately owned and is motivated by Profits.

Same as Pluralistic but feels conflict arises not because of rift between management and workers, but for the social and political change.

TU are seen both as labor reaction to exploitation as well as to bring in a revolutionary social change.

Trade Unions

TU are voluntary organizations of employees or employers formed to promote and protect their interest through collective action. Though the terms employees and employers are used, when we say trade unions they generally refer to employees.

Why do employees join unions?

Dissatisfaction

Lack of power

Union Instrumentality

Union Tactics Unions employ several tactics to deal with

management are-:

1) Strike2) Invoking political patronage3) Blackmailing 4) Unionising

Strategic choices before Management

Management must decide whether the organization should remain union free or allow unionisation.

If management decide company should remain union free then they must take steps to keep union away from the organization.

If unionisation should be allowed, managers must decide what type of union mgmt relations they want.

Management must also choose the type of tactic to use while negotiating a new wage settlement.

Strategic choices before Unions

Bread and Butter V/S Political objective

Adversarial V/S Co operative role

Traditional issues V/S New services

Strategies and Tactics for remaining Union - Free

Effective supervisionOpen communicationEffective personnel searchHealthy and Safe working environmentEffective Employer and Employee relationsEffective remmuneration

Some of the major Trade Unions

AITUC – All India Trade Union Congress1st TU in India established in 1920.

INTUC – Indian National Trade Union Congress (1947)

CITU – Centre of Indian Trade UnionsHMS – Hind Mazdoor SabhaBMS – Bhartiya Mazdoor SanghUTUC – United Trade Union Congress

Registered trade Unions in India – more than 5000

Trade Union Act, 1926 – Salient Features

Conflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs, values or needs. It can also originate from past rivalries and personality differences.

Conflict is a process in which an effort is purposefully made by one person or unit to block another that results in frustrating the attainment of other’s goals or the furthering of his or her interests

It occurs “when two or more parties, with perceived incompatible goals, seek to undermine each other's goal-seeking capability".

CONFLICT

Industrial Conflict

The interests of the workers and management/ employers usually seem to be opposed.

This may result into the withdrawal of effort, poor productivity, absenteeism and may lead to the strike or go-slow situation.

Manifestations of ConflictsWorkers/ Unions Management/ Employer

Non- Cooperation Autocratic

Arguments Over-strict

Hostility Impose penalties

Resentment Lockouts

Indiscipline Demotions

Absentiseem Terminations etc

Demonstrations

Gherao

Strike etc

Disputes and Their Resolution

According to Industrial Dispute Act, 1947, industrial dispute mean any dispute or difference between employers and employers or between employers and workmen, workmen and workmen, which is connected with the employment or non employment or terms of employment.

Causes of DisputesWage DemandsUnfair Labor Practice Union RivalryPolitical Interference (ideology differs, union

works on party lines, CITU- Communist love to fight but hate to win so they have not signed any settlement in last 15 years)

Percentage distribution of the causes of Industrial Disputes resulting in work stoppage in India

Year Wages and Allowances (%)

Bonus (%)

Retrenchment (%)

Leave and hours of work (%)

Indiscipline and violence (%)

1961 30.4 6.9 29.3 3 -

1971 34.4 14.1 23 1.4 3.6

1981 28.1 8 21.2 1.7 9.4

1991 24.5 4 17.4 1 16.4

1999 21.9 9 14.9 1 21.9

The Industrial Dispute Act, 1947

Dispute Resolution Process

InvestigationArbitrationConciliationAdjudication

Settlement Cont’dArbitrations refers to the procedure in which

a neutral third party studies the dispute, listen to both the parties and collects the information , and make recommendations which are binding on both the parties.

Conciliation -: As per the Industrial Dispute act 1947, Sec 4, says that the govt shall appoint conciliation officers and their main duty is to mediate and promote settlement of Industrial Dispute.

Settlement Cont’d

Adjudication a mandatory settlement of Industrial Dispute by a labour court or Tribunal.

Collective BargainingThe term “collective bargaining” extends to

all the negotiations that take place between an employer, a group of employers or one or more employer’s associations , on the one hand and one or more workers’ organizations on the other in order to determine –Working conditions and terms of employmentRegulate relationship between employee and

employerRegulate relationship between workers’

organization and employers’ organization

A method by which trade Unions protect, safeguard and improve the conditions of their members’ working lives.

Several analysts have focused on economic and political functions of collective bargaining.

According to ILO (convention number 98) collective bargaining is a fundamental right at work.

Levels of Bargaining Plant/Firm Level:

Employers generally emphasizes it as it reduces the bargaining power of workers

Industry Level:Common across privately owned industries like

cotton, jute, textile, tea etcNational Level:

Prevalent in the industries where government is a dominant player like banking, coals, ports etc

Stages of NegotiationRepresentatives of employees & employers meet to solve the issue.

a) Preparing for negotiationb) Identifying bargaining issuesc) Negotiationsd) Reaching the agreemente) Ratifying the agreementf) Administration of agreement

SettlementCollective Bargaining takes place when

representatives of trade union meet management representatives to determine employee wages and benefits and to solve other issues.

Collective Bargaining is the most effective method of resolving industrial disputes.