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Unit-13 (Thirteen)


Labor relations are the complex of interrelations among workers, managers and government.
Employees, employers, their respective associations, government and judiciary are the parties which
have stakes in labour relations.
Employees perceives LR as a method to improve their conditions of employment, to voice any
grievances, to exchange views and ideas with management and to share in decision making.
Trade unions look to LR in order to secure improved terms and conditions of employment and to
obtain improved status for the workers in their work.
Employers have economic power in their hands and use it to affect workers destiny. They
understand LR as a means to motivate workers and to sustain their commitment to work.
The role of employers association is relevant in as much as they represent employers in collective
bargaining and develop machinery for avoidance or settlement of disputes.
The government seeks to protect the interest of both employers as well as employees. Constitute
wage boards, labour courts, tribunals, and enacted a series of labour acts and policies.
The judiciary is relevant as it has the authority to settle any dispute and to review any legislation,
particularly when it is against the constitutional provisions.

Industrial dispute
Industrial dispute mainly relate to the strife between employers and employee.
Industrial disputes mean any dispute or differences between employers and employers, or between
employers and workmen, or between workmen and workmen, which is connected with the
employment or non-employment or terms of employment or with the conditions of labour of any
person.- Industrial Dispute Acts, 1947, India

Methods of settlement
1. Collective bargaining- representative of employee and management sit together and negotiate to
settle the dispute. The collective bargaining process consists the following steps: i) organizing &
certification, ii) preparation for negotiation iii) negotiation iv) ratification v) contract administration.
2. Conciliation- a process by which representative of workers and employers are brought together
infront of third party, conciliator, with a view to persuading them to arrive at an agreement by
mutual discussion between them. The third party may be an individual or group of people.
Conciliator works as facilitator only, does not impose its views or decisions .
3. Mediation-where third party plays more active role and suggests various proposals for settlement of
dispute but parties involved in the disputes are free to accept or reject such proposals.
4. Arbitration- is a procedure in which a neutral third party studies the bargaining situation, listens to
both the parties and gather information and then makes recommendations that are binding on the
5. Adjudication- means a mandatory settlement of industrial dispute by a labour court or tribunal.

Preventive measures:

1. Institution of labor welfare officer & labor welfare work

2. Works committees
3. Bipartite & tripartite bodies
4. Grievance procedures
5. Workers participation
6. Code of discipline, rules regulations etc.
7. Collective bargaining

Discipline- adherence to rules, regulations, procedures, and standard of acceptable behavior in an
organizational setting.
Disciplinary problems:
Attendance related- late for work, absenteeism, leaving work without permission, habitual tardiness,
abuse of leave etc.
Job behavior related- insubordination, failure to obey safety rules, defective work, not reporting
accidents, drunk, gambling, fighting on the job, destruction of property etc.
Dishonesty related- theft, information falsification, punching time card of others, concealing
defective work etc.
Outside activities related- unauthorized strike, working for competing firms, outside criminal
activities, embrassing speeches, wage garnishing etc.
Disciplinary action:
i) Oral warning ii) written warning iii) suspension
iv) Pay cut v) demotion vi) dismissal

Grievances are employees perception of unfair treatment on the job.
When employees complaint is brought to the notice of management, it becomes a grievance.
Grievance is a written complaint filed by an employee claiming unfair treatment.
Causes of grievances

1. Interpretation differences
2. Management practices
3. Labor union practices
4. Personality traits
5. Working conditions
Handling employee grievances

1. Open door policy- Employees are invited to walk in any time and express their grievances to
higher level management.
2. Legal compliance- Management takes legalistic view in handling grievances. It follows the
contract with employees and union. Handles the grievances as specified in the contract.
3. Grievance procedure:
Grievant Supervisor (verbal complaint)
Grievant Department head (written complaint)
Grievant Grievance committee (appeal for review)
Grievant Top management ( appeal for review)
Voluntary arbitration ( referred for arbitration) decisions binding on all