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Employee Relations Reasons for disputes Resolving resolving disputes Trade Unions and Recent Trends in Trade Unions

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Learning Objectives
To identify major organizational factors and processes that

adversely affect employee relations. Understand the meaning of terms like discipline ,employee grievance,job stress. Understand the nature of employment relations and the place of Unions in the organizations. Know the importance of Union recognition agreement and the elements of Collective Bargaining (CB). Familiarize yourself with legal approaches to dealing with problems of indiscipline and workplace harassment.

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Employee Relations
Relationship among employees provides the context in

which Organizational roles assigned to members are performed Team spirit inculcated Expectations clarified Conflicts resolved Shared norms of behaviour developed. If organizations have to move towards excellence, maintenance of harmonious relationship among employees across the vertical and horizontal levels of the organization is a necessary condition.
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Employee Relations

Healthy ER

Unhealthy ER

a.
b. c.

d.
e. f. g.

Open communication channels all directions. Delegation Autonomy Participative management Self managed teams Quality circles Facilities at work place

a.

b. c. d. e.

f.
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No communication or Only top down communication Authoritative/Autocratic leadership Only duties Too much power at the top Unfriendly and unhealthy work environment Lack of facilities
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Employee Relations
Reason for most industrial problems like strikes, grievances, violence, disputes due to poor employee relations.
Managers must have good communication skills, knowledge of local culture and language, empathy, knowledge of law, and counseling skills.

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Reasons for dispute

a.
b.

Wage demands- . Inflation Agreement reached in another company. Includes bonus incentives and other allowances, Bonus General validity of wage agreements three years
Union rivalry : Multiple unions. Lead to inter-union rivalries. Power of the union and ego of the union leaders become the major issue. Result no harmony low productivity losses close down.
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Reasons for dispute

c. d.

Government interference Mandatory to pay bonus. Whom to hire??? Political interference - Major trade unions are affiliated to political parties. When Trade Unions get politicized Ideology and issues get divided on party lines. Unions multiply causing Inter-Union rivalry. Some Unions refuse to sign any agreements and some long term agreements. Organization's objectives and goals take a backseat Political parties and leaders show their strength by organizing bandhs / strikes and spreading fear.
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Reasons for dispute

e.

f.

Multiplicity of labour laws - About 108 acts- most labour legislated country- Result : confusion, ambiguity, contradictions. Inter state/ religion / ethnic rivalry Discipline/ Indiscipline- Conformity by the employees, to the expectations of management, in terms of standards of behaviour and performance, code of conduct. Desirable actions and behaviour made known to them through formal, informal, written or verbal communication. Disciplinary action

g.

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Discipline, Grievances, and Dismissal

Discipline without Punishment A multistage disciplinary technique. (a) Oral reminders of the violated rule (b) written reminders paid one-day leave (d) if the behavior is not corrected, dismissal. Grievance - A complaint that an employee lodges against an employer. Regarding wages, work hours, or some condition of employment like supervisory behaviour.

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FRACT Model A multi-step procedure for assessing the need for discipline: Get the Facts Obtain the Reason for the infraction Audit the records Pinpoint Consequences Identify the Type of infraction before taking remedial steps

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Disciplinary Action

Industrial Employment (standing orders) Act is applicable. The punishment can be awarded according to the specification of the standing orders. Among the penalties are:
Warning, Fine , Withholding increments Demotion, Suspension , Dismissal

A. B.

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Reasons for dispute

h.

Unfair labour practices - Unwillingness/ attitude of the management to talk to workers representatives/TU or refer to arbitration. To recognize Trade Union. Not delegating or giving authority to managers to negotiate with Trade Union. Unfair /biased stand of the management representatives during negotiations

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Industrial Disputes Act 1947 Unfair labour Practices

Restraining, preventing, threatening workers from

organizing, forming, joining unions or similar activities for collective bargaining and protecting their rights. Threatening a lockout or closure, if TU is organized. Granting wage increase at crucial periods to sabotage the Unity or Union plans. To dominate, interfere, support or contribute to any TU. To establish employer-sponsored TU of workmen. Favouring one TU when many Trade Unions are trying to organize their workers.

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Industrial Disputes Act 1947 unfair labour Practices

Victimization. To discharge , dismiss or discriminate - workers for

organizing fellow workers or joining the Union. Changing seniority rating Denying promotion for union activities. To abolish work of regular nature To give the work to contractors to break the strike. To transfer workers under the guise of management policy. During legal strikes (a) To insist on workers individually signing agreement (b) To sign a good conduct bond as a precondition to resuming work. Being partial to one set of workers.
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Industrial Disputes Act 1947 unfair labour Practices

To keep workers in temporary pay rolls permanently. To discriminate worker/s for filing charges or testifying

against an employer during enquiry proceedings. To recruit workers during a legal strike. To indulge in acts of force or violence. To refuse to bargain collectively, in good faith with recognized TUs. Proposing or continuing a lockout deemed to be illegal under IDA 1947. Falsely implicating workers in criminal cases-concoct evidence Appointing one sided committees/ commissions of enquiry.
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Industrial Disputes Act 1947 Unfair labour Practices

Failure to implement award, settlement or agreement. To indulge in acts of violence or force. Strike in Maruthi Udyog -2001- management got

undertaking of good behaviour from employees. Terminated the services of 59 employees did not pay salary to striking workers for 3 months. Strike by TN Govt employees -2004-05 Striking work without giving sufficient notice to employers. Stopping willing workers from carrying their duties.- JJ made them sign good behaviour agreement sacked many.

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Unfair practices by labour / TU

State Transport workers on flash strike leaving

passengers and vehicles midway- causing traffic jams.

Power Corporation employees flash strike

disconnecting power Heavy damages costly equipment, people stuck in lifts and elevators, blood stored in blood banks .
Municipal corporation workers.

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Result of Industrial Disputes

Loss due to low productivity affects organization and nation. Loss due to violence and destruction affects organization, society and nation. Loss of life , income and peace affects management and employees Animosity and strained relationship among management, society and employees- Affects all concerned and the nation. Industrial disputes affect all stakeholders Management, Employees, Economy, Society, Nation

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Resolving disputes

Collective bargaining Code of discipline Grievance procedure Arbitration Conciliation Adjudication Consultative machinery

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Good-Faith Bargaining

Preparing for Negotiations

Conducting Negotiations The Bargaining Process: Overview

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Resolving disputes

Collective bargaining: Trade unions can maintain and improve their members terms of employment CB is a trade union initiated process. Viewed as a tool for resolving industrial disputes.
Collective Bargaining Helps increase economic strength of bargaining parties. Minimizes re-occurrence of disputes. Lays down rules and norms for dealing with labour. Helps usher in democratic principles into industrial world.
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CB - three perspectives.
1. CB as as a process of social change- Brings a change in balance of power between employers and employees. Opens doors for better pay, welfare, security and liberty to individual members. 2. CB as peace treaty- between the conflicting parties: Peace is temporary. Both parties would like to come forward with new and previously unsatisfied demands. 3. As a system of industrial jurisprudence : Civil rights in the industry Management has to deal with labour by rules than by arbitrary decisions. Basic interests of employees and employers are protected. 4. Participative management- Participation in decisions that affect their work life - Improves job involvement and job satisfaction. Industrial democracy.
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C B--- Managers
Managers have to.

Interpret situations and decide when to open negotiations. Know to prioritize issues. Decide on right management representatives Ensure negotiation team is a combination of organizing skills , knowledge, human touch, integrity, tact and toughness. Examine possibility of a strike and ways of handling it. Build inventory and ensure associates have adequate stock Decide how closely they will follow the agreement.

.
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The Bargaining Process

1. Prepare for negotiations.

2. Develop strategies 3. Conduct negotiations 4. Formalize agreement

Pressures on bargaining parties: Legal requirements Strikes Forms of Protest Lockouts Boycotts

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CB Process-1. Preparing for negotiations

A. From managements side : Prepare specific proposals for alterations in contract. Determine budget and size of economic package company wants to offer. Prepare data and other necessary facts and figures. Prioritize items as per importance and urgency. Identify suitable site for negotiation. B. From employees / unions side : Financial position of the company and its ability to pay. Attitude of mgmt towards various issues-information of other companys attitudes and results. Attitudes and desires of employees. Identify suitable site for negotiation.
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CB process-Identifying Bargaining Issues

1. 2. 3. 4.

Wage related issues: basic wages, cost of living adjustment, OT rates etc. Supplementary economic benefits: pension plans, paid holidays, retrenchment pay etc Institutional issues : rights and duties of employers, employees, Unions etc Administrative issues : Seniority, discipline, training , job security etc

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CB Process.2. Negotiating
Each side presents initial demands negotiations may go

on for days. It is a Psychological war each one trying the others nerve and strength. In spite of sincerity negotiations may break down. Restarting becomes more difficult.- Ideal to give some gap. Ratification ( confirming )of the agreement : Both parties go back to their people take a consent. All agreements and contracts have to be written and legalized. Administration of the agreement : Agreements have to be implemented and within the time frame.

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CB Process.2. Negotiating Dos. Do seek more (or offer less ) than you plan to receive and give. Negotiate in private. Create a win-win situation Start with easy issues appear it is only give and no take situation. Keep alternatives ready and open. Help of police/govt if a strike seems likely krishna Use good PR

Donts Dont open all your cards (offer ) first. Say no unless you are 100% sure. Violate confidence. Settle too quickly. Let union go straight to top and/or let top management come to negotiations table. Rush to media for help or with statements.
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Environmental Factors affect CB.

1.
2.

The type of bargaining structure One company dealing with a single union Several companies dealing with a single union. Several unions with one company Several companies with several unions
Union management relationships. May be co-operative or non co-operative Cooperative spirit facilitates collective bargaining. Non -cooperative spirit slows down or affects the process.
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Grievances
Grievance is employees dissatisfaction or feeling of injustice relating to her/his employment relationship.

Conditions that give rise to grievances Violations of the terms and conditions of employment Violation of law -Violation of company rules Change in working conditions or practices Violation of health / safety standards. When employee files a grievance it has to be resolved as per procedure.

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Arbitration
Third-party( neutral) who resolves a labor dispute by issuing a final decision in the disagreement
Arbritator/s studies the situation, listens to both parties and

makes recommendations that are binding on both parties. Arbitration is effective as it results in settlement. If one party feels arbitrator was heavy handed may accept decision but conflict will resurface.

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Arbitration Merits Established by the parties & decision is acceptable to both. Delays are cut down and decisions are quick. Number of disputes are fewDecisions are well studied and just. Demerits Expensive. Expenses need to be shared by labour and Mgmt. Selection of arbitrator has to be done carefully- may go wrong. Tendency to rush for arbitration is not healthy sign of IR

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Procedures for arbitration

Arbitration & Industrial Disputes Act 1947

10 If both parties agree to refer it to arbitration - they do so in written agreement. Generally Labour Union takes the initiative and notifies the management. Select the arbitrator jointly - study previous decisions. After arbitrator agrees venue and date is decided. Sufficient time given to both parties to prepare. Proper data and information/ evidence given to arbitrator. After hearing sufficient time for arbitrator to study and give decisions.
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Section -

Resolving disputes
Mediator: Third party in a labor dispute . Meets

with one party and then the other To suggest compromise solutions OR To recommend concessions from each side that will lead to an agreement Conciliator : ( Mediator ) - Parties brought together before a third party to persuade them to arrive at an agreement. Allowed by IDA 1947 Section 4 . Conciliation can be by one person or group of two or three. Government can appoint the person/s.

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Resolving disputes -Duties of Conciliation officer

To Mediate and bring about fair settlement between parties. Hold conciliatory proceedings. Investigate disputes. Send reports and memorandum of settlement to appropriate Govt bodies. Report to Govt bodies (within 14 days from the date of starting the proceedings). Informing the steps taken in case no settlement is arrived. No strike or lockout when conciliation is in progress. Conciliator has no power to force any party. Can work separately with parties, explain positions to each and help in search of solutions.
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Resolving disputes-Adjudication
Adjudication- Mandatory settlement of an industrial

dispute by a labour court or tribunal . The verdict is binding on both parties. Section 10 of the Industrial Disputes Act 1947 - reference to Labour court or tribunal. Lays down rules regarding the composition and powers of labour courts and tribunals. Problems Time taken for (delay) in decisions. Expensive for individual worker. Verdicts make parties involved too strong or too weak during future disputes. Deprives Trade Unions of their strengths.
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Resolving disputes- Consultative Machinery Consultative Machinery Set by Government to resolve conflicts. To bring parties together for mutual settlement in a spirit of co-operation and goodwill. Operates at plant, industry, state and national level. Labour Advisory Boards at State and National level. Indian Labour Conference ( ILC) Standing Labour Committee ( SLC ) These are tripartite in nature representing Government Labour and Management.

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Trade Unions

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Why union growth has suffered Demographics Jobs: location/industry/occupation Wage premium grew in 1970s Increase in Education/knowledge levels Globalization Lack of worker interest Lack of trust in union leaders and their organizing efforts

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Recent Trends in TU

Changing Relationships Management Labor Cooperation New Forms of Cooperation Concessionary Bargaining
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