IPM Industrial Relation New

7/28/2019 IPM Industrial Relation New

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I NDUSTRIAL RELATIONS

Certificate Course in Human Resources

Management

by

Asoka WeerakoonAIPM , MIM (SL)National Diploma in Human Resource Management


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INDUSTRIAL RELATIONSEMPLOYEE RELATIONS

Basically Employee Relations refers to the

relationship between the Employer and theemployees in dealing with terms of the agreement &issues arising in the course of the employment. Herethe Employer is represented by the Managementand the managerial categories are not included inthe Employees. Internal reactions between themanagement and employees on individual basis arereferred to EmployeeRelations. To have a soundEmployee Relations the Management has to adopt

policies which win the hearts of the employees.


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Job DissatisfactionEmployees want to solve their issues with the

management due to various reasons. As the first

step they will try to solve their issues with themanagement individually. The success of this will

depend on two things. i.e.


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Job DissatisfactionEssentiality : The importance of the job for the

success of the organization

Exclusivity: The difficulty of finding areplacement for the employee(indispensability) When the above conditionsare stronger for an employee the chances are

greater to solve the issues with themanagement individually.


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When employees feel they cannot win their

demands individually they tend to organize or

unite on their own or through a Trade Union.The reasons for such unionization are

Insufficient remuneration, Attitude of the

management, Favouration, Rigid rules &regulations, Tight supervision, One way

communication, Weak grievance handling

procedure


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Introduction To Industrial RelationsThe term industrial relations explains the

relationship between employees andmanagement which stem directly or indirectlyfrom union-employer relationship.

Industrial relations are the relationshipsbetween employees and employers within theorganizational settings. The field of industrialrelations looks at the relationship betweenmanagement and workers, particularly groups ofworkers represented by a union.


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Introduction To Industrial Relations

(Continues)The term industrial relations has a broad as well

as a narrow outlook. Originally, industrial

relations was broadly defined to include therelationships and interactions between employers

and employees. From this perspective, industrial

relations covers all aspects of the employmentrelationship, including human resource

management, employee relations, and union-

management (or labor) relations.


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Now its meaning has become more specific and

restricted. Accordingly, industrial relations

pertains to the study and practice of collectivebargaining, trade unionism, and labor-

management relations, while human resource

management is a separate, largely distinctfield that deals with nonunion employment

relationships and the personnel

practices and policies of employers.


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Introduction To Industrial Relations

(Continues)The relationships which arise at and out of

the workplace generally include the

relationships between individual workers, therelationships between workers and theiremployer, the relationships between

employers, the relationships employers andworkers have with the organizations formedto promote their respective interests, and therelations between those organizations, at alllevels.


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Industrial relations also includes the processes

through which these relationships are

expressed (such as, collective bargaining,workers participation in decision-making,

and grievance and dispute settlement), and the

management of conflict between employers,workers and trade unions, when it arise
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INDUSTRAL RELATIONS

The interactions between the management and the TradeUnionsof the employees are referred to Industrial

Relations INDUSTRIAL RELATION SYSTEM

Industrial Relations (IR) can be defined as collectiverelations between Employees, Employers and the

Government which intervenes to settle disputes betweenEmployer and Employee. Healthy IR will ensure industrialpeace and stability in the industry. IR System involves:

1. Tripartism

2.

Balance of Interest3. Social Equilibrium.


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State

TUs (Employees)Employer

Tripartite relationship refers to the following parties

Employees and their Trade Unions

Employer and their representatives (management /

Employers TU )

State


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Each party plays a vital role in industrial relations process &each party depends on the other parties.

Members of the TUs need the jobs for their living.Management owns the job opportunities. Managementexpects efficiency and productivity from the TUs. As a resultof this dependability on the other party, Management andTUs have to respect each other.

The State is the 3rd party. State needs the TUs as well as themanagement to fulfill its obligation to the general public in

providing social welfare and the other needs. The priority ofthe state is to ensure industrial peace in the country.

Although the parties mentioned above are dependent on eachother, the powers of the parties are not equal. State is the most

powerful party in this process. When the management is weak

the TUs become more powerful. The management becomesmore powerful when it is strategic and strong.


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SOME OF THE BASIC OBJECTIVES OFINDUSTRIAL RELATIONS

Balance the economic efficiency of the organisationswith equity, justice and development of theindividual.

To find ways and means of preventing, minimisingand resolving conflict.

To determine terms and conditions of employmentthrough dialogue and negotiation based on equalityof partners.


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To promote harmonious relations between andamong the parties involved in industrial

relations. To establish and promote the growth of an

industrial democracy based on laborpartnership in the sharing of profits and of

managerial decisions, so that ban individualspersonality may grow its full stature for thebenefit of the industry and of the country as

well.


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To eliminate or minimize the number of

strikes, lockouts and gheraos by providing

reasonable wages, improved living andworking conditions, said fringe benefits.

To improve the economic conditions of

workers in the existing state of industrialmanagements and political government.


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Socialization of industries by making the state itself

a major employer

Vesting of a proprietary interest of the workers in theindustries in which they are employed.

The parties should work for the mutual

benefit of the parties directly involved and society as

a whole. The rules, processes and mechanism abovereferred to are found in many sources such as laws,

practices, customs and agreements reached through

bipartite and tripartite process.


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ROLE OF LABOUR LAWS IN

INDUSTRIAL RELATIONS Controlling RoleLess impact on promoting

harmonious industrial relations.

Facilitating RoleIt is the base on which a soundlabour relation system can be built. Law has to

provide measures of social protection. It supports thesystem.

Protector RoleLaw provides protection againstdiscrimination. Prescribes minimum terms andconditions. Impose restrictions.


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LEGAL FRAMEWORK1. Enactments providing a set of rules governing

terms and conditions of employment.

Shops and Office Employees Act

Wages Board Ordinance Workman Compensation Ordinance

Maternity Benefits Ordinance

Employment of Women, Children and YoungPersons Ordinance

Factories Ordinance

Termination of Employment Act

Employees Provident Fund Act

Employees Trust Fund Act

Payment of gratuity Act


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(B) Enactments providing procedure for the

settlement of Industrial disputes.

Industrial Disputes ActNo 43 of 1950

An Act to provide for the prevention,

investigation and settlement of Industrial

Disputes and for matters connected therewithor incidental thereto.


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What is an Industrial dispute?

Any dispute or difference between an

Employer and Employee or betweenEmployers and Employees connected with the

employment or non-employment or the terms

of employment or with conditions of labour orthe termination of employment or the

reinstatement in employment of any person.


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PROVISIONS FOR SETTLEMENT

OF DISPUTESThe Industrial Dispute Act provides following

methods for the settlement of disputes.

Reactive measures

Within the powers of Commissioner General oflabour

1 Collective Agreements

Settling the dispute according to the Disputesettlement procedure stated in the collectiveagreement signed between the parties.


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2 Conciliation

The Commissioner or the Authorised Officer calls up

the parties to the disputes and facilitate for a mutualsettlement. He may take steps to induce the parties to

come to a settlement. If a settlement is arrived a

Memorandum of Settlement is prepared setting out

the terms of settlement and shall be signed by bothparties and is binding on the parties. The terms of

settlement shall be implied terms of the contract of

employment.


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3 Voluntary Arbitration

When the conciliation fails the Commissioner Generalof Labour or the authorised officer can refer the

dispute to an Arbitrator with the consent from theparties.

An arbitratorproposed by both parties

Arbitration PanelIn the absence of the above,

one name each from both parties together with arepresentative of the commissioner as thepresident of the Arbitration Panel

Referring to a Labour Tribunal

.With powers of the Minister of Labour


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4 Compulsory ArbitrationMinister has the powers to refer the dispute to an Arbitrator

appointed by him or to a Labour Tribunal, by a writtenorder, if the dispute is a minor one.

5 Industrial CourtThe President of Sri Lanka appoints annually not less than 5

people to the Panel of Arbitrators.

The Minister may refer an industrial dispute to an Industrial

Court consisting one or three arbitrators selected fromthe Panel of Arbitrators for settlement. The order willbe gazette and is binding on the parties and the terms willbe implied terms of the contract of employment.


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6 By the employee / TU directly in a

termination

Labour TribunalsAn employee may make an application to the

Labour Tribunal (under the court system) for

relief or redress in the event of termination ofemployment or non-payment of gratuity.


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COLLECTIVE BARGAININGDefinition -: Negotiation about working conditions or

terms of employment between the employer (anemployer or a group of employers or one or more

employer organizations) and Group of Employees(one or more representative Trade Unions) to reachan agreement.

The end result will be the Collective Agreement

signed between the two parties for a specific period.The terms and conditions in the collectiveAgreement supersede the terms & conditions in theLetter of Appointment.


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IMPORTANCE OF COLLECTIVE

BARGAINING(a). Resolving a situationdiscussion and acceptance

(b). A form of participation

(c) Institutionalised process of settlement of industrial

dispute(d). Discourage industrial disputes

(e). Industrial peace

(f). Cordial relationship between employer and

employee(g). Enables business competition on equal footing due

to standardisation in cost of labour

(i). Less likely to change union affiliations


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DIFFERENT LEVELS OF

INDUSTRIAL RELATION SYSTEM1. International Level

2. National Level

3. Industry Level

4. Organizational LevelInternational Level

Through I.L.O. (International Labour Organization) Conventions.

National Level

Legislations passed by the governments.

Industry Level

Different practices in each industry.

Organizational Level

Practices and policies of the organization


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REASONS FOR POOR

INDUSTRIAL RELATIONS

Absence of a sound Corporate policy of HR

Management attitude

Poor communication Political agenda of the Trade Union

Rigid stands of the Union leaders

Conflict situations preferred by unions

Inflationary & unsound economic policy of thecountry

Lethargic role of the Labour Department (state)


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MAINTAINING HEALTHY

INDUSTRIAL RELATIONHuman Resource Management

I ndustr ial relations

Good industrial relations, while a recognizable and legitimateobjective for an organization, are difficult to define since agood system of industrial relations involves complexrelationships between:

(a) Workers (and their informal and formal groups, i. e. tradeunion, organizations and their representatives);

(b) Employers (and their managers and formal organizations liketrade and professional associations);

(c) The government and legislation and government agencies land 'independent' agencies like the Advisory Conciliation andArbitration Service.


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HR managers responsibilitiesThe personnel manager's involvement in the system of industrialrelations varies from organization to organization, butnormally he or she is required to provide seven identifiablefunctions, thus:

1. To keep abreast of industrial law (legislation and precedents)and to advise managers about their responsibilities e.g. toobserve requirements in respect of employing disabled

persons, not to discriminate, not to disclose 'spent'

convictions of employees, to observe codes of practice etc. inrelation to discipline and redundancy, and similarly todetermine organizational policies (in conjunction with othermanagers) relevant to legal and moral requirements


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2. To conduct (or assist in the conduct) of eitherlocal negotiations (within the plant) or similarlyto act as the employer's representative in national

negotiations. This could be as a critic or advisorin respect of trade etc. association policies or as amember of a trade association negotiating team.Agreements could be in respect of substantive or

procedural matters. Even if not directly involvedthe personnel manager will advise othermanagers and administrators of the outcome ofnegotiations.


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3. To ensure that agreements reached areinterpreted so as to make sense to those whomust operate them at the appropriate levelwithin the organization (this can involve a lotof new learning at supervisory level and newpay procedures and new recording

requirements in administration and even theteaching of new employment conceptslikestagger systems of work - at managementlevel).


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4. To monitor the observance of agreements andto produce policies that ensure thatagreements are followed within the

organization. An example would be thepolicy to be followed on the appointment of anew but experienced recruit in relation to theoffered salary where there is a choice of

increments to be given for experience, abilityor qualification.


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5. To correct the situations which go wrong. 'Face' is ofsome importance in most organizations andoperating at a 'remote' staff level personnel managers

can correct industrial relations errors made at locallevel without occasioning any loss of dignity (face)at the working level. 'Human resource management'and the obscurity of its reasoning can be blamed for

matters which go wrong at plant level and forunwelcome changes, variations of comfortable'arrangements' and practices and unpopularinterpretation of agreements.


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6. To provide the impetus (and often devise the machinery) forthe introduction of joint consultation and worker

participation in decision-making in the organization. Formalagreement in respect of working conditions and behavior

could never cover every situation likely to arise. Moreoverthe more demanding the task (in terms of the mentalcontribution by the worker to its completion) the morehighlyeducated the workers need to be and the more theywill want to be consulted about and involved in the details ofwork life. Matters like the rules for a flexitime system or fordetermining the correction of absenteeism and the contentsof jobs are three examples of the sort of matters that may besolely decided by management in some organizations but amatter for joint consultation (not negotiation) in others witha more twenty-first-century outlook and philosophy. Human

resource management is very involved in promoting andoriginating ideas in this field.


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7. To provide statistics and information about

workforce numbers, costs, skills etc. as relevant to

negotiations (i.e. the cost of pay rises or

compromise proposals, effect on differentials and

possible recruitment/retention consequences of this

or whether agreement needs to be known instantly);

to maintain personnel records of training,experience, achievements, qualifications, awards

and possibly pension and other records;


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Focus on key result areas (man power planning, recruitment& selection, induction, training & development,compensation mgt, performance mgt, succession planning,employee welfare, health & safety, grievance handling,employee/industrial relations, HRIS & corporate socialresponsibility.

Role of the management

Top management

Line management

HR division Employees participation

Gain sharing schemes & incentives

Improve communication

Due respect to TUs

Entering into collective agreements

Sound HR corporate policy

TRADE UNION ORDINANCE


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TRADE UNION ORDINANCE

NO.14 OF 1935 (AS AMENDED)

Trade union

Definition: Any association or combination of

workmen or employers, whether temporary orpermanent, having one or more of the

following objectives.

A trade union (orlabour union) is anorganization of workers who have banded

together to achieve common goals in key

areas and working conditions.


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1 Regulations of relations

Between workmen and employer

Between workmen and workmen

Between employers and employers2. Imposing restrictive conditions on the conduct of any trade

or business

3. Representing in trade disputes

4. Financing / providing pay or other benefits in strikes orlockouts, as the case may be, in trade or industry.


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The following categories cannot form trade unions

Judicial officers

Members of the Armed Forces

Police Officers Prison Officers

When a Trade Union is formed it has to be registeredwith the Dept of Labour. Failure to do so the trade

union becomes an unlawful association. In such asituation, the TU cannot participate in any tradeunion action or discussion with regard to tradedisputes.


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When a TU has the membership representingnot less than 40% of the workmen on whosebehalf such TU seeks to bargain, theemployer must recognize such TU. For arecognized TU, the employer should

Allow the check off facility.

Invite for discussion with the managementconcerning trade disputes.

Allow to represent in the labour issues of theirmembers


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