Industrial Relations

Industrial Relations
The term Industrial relations refers to relationship between Management and labour, or among employees and their organization that characterizes or grow out of employment Two parties of employment relationship Labour and Management

Objectives: Sound Industrial Relation

1. Safeguarding the interests of labour and Management 2. Promoting Industrial Peace; avoiding strike/lockout 3. Raising productivity of labour 4. Providing better wages and living condition 5. Accepting labour as a partner sharing the gains and information to the extent possible

Significant factors which pose problems to Industrial Relations are

1. Trade Union 2. Labour Legislation 3. Industrial Democracy

Actors of IR
1. Employees 2. Employer 3. Government

COLLECTIVE BARGAINING

Collective Bargaining
Collective Bargaining is a procedure by which the terms and conditions of workers are regulated by agreements between their bargaining agents and employers
The basic objective of collective bargaining is to arrive at an agreement on wages and other conditions of employment

Usual process
Both the employer and employees may begin the process with Divergent views Then try to reach a compromise through negotiation, yielding some concession and making some sacrifice in the process When compromise has been reached, the terms of agreement are put into operation

Feature of Collective bargaining

Collective: workers and management jointly arrive at an amicable solution through negotiation Strength: the bargaining strength of both parties is equal. It is industrial democracy at work Flexible: it is a group action representative of workers and management. It believes give and take policy

Objectives of Collective Bargaining

To settle disputes/conflicts relating to wages and working conditions To protect the interests of workers through collective action To resolve the difference between workers and management through voluntary negotiations and arrive at a consensus To avoid third party intervention in matters relating to emloyment

Feature of Collective bargaining

Voluntary: both workers and management come to table voluntarily and implementation of the agreement reached is also voluntary Continuous: Collective Bargaining is a continuous process Dynamic: Collective bargaining is a dynamic process. The concept itself changes, grows, and expand over time

Feature of Collective bargaining

Power Relationship: workers wants to gain the maximum from management and management wants to extract the maximum from workers by offering as little as possible Representation: In Collective bargaining the employer does not deal directly with workers. He carries out negotiations with representatives of unions who are authorized to bargain with employer on work-related matters Bipartite Process: the employer and employee negotiate the issues directly, face to face across the table. There is no third party intervention

Types of Bargaining
1. Conjunctive / distributive bargaining Each parties try to maximize their gain 2. Cooperative Bargaining When companies hit by recession 3. Productivity Bargaining A standard productivity index is finalized through negotiation 4. Composite Bargaining Bargaining to withstand liberalisation, automation, farming out business to outsiders and survive

The process of collective bargaining

1. 2. 3. 4. Identification of problems Preparing for Negotiation Negotiation of Agreement Implementation of Contract

Industrial Relation

WORKERS PARTICIPATION IN MANAGEMENT (WPM)

Workers Participation in Management (WPM)

The word Participation means sharing the decision making power with the lower ranks of the organization in an appropriate manner Participation has a unique motivational power and great psychological value.

It promotes harmony and peace between workers and management

Definition: WPM
WPM has been defined as the participation resulting from practices which increases the scope for employees share of influence in decision-making at different tiers of organizational hierarchy with concomitant assumption of responsibility

Objectives of WPM
1. To improve the quality of work life by allowing the workers greater influence and involvement in work and the satisfaction obtained from work 2. To secure the mutual cooperation of employees and employers in achieving industrial peace; greater efficiency and productivity in the interest of the enterprise, the workers, the consumers and the nation

Forms of Participation

MHETRAS VIEW (1966) WHILE REVIEWING 13 ENTERPRISES BELONGING TO DIFFERENT INDUSTRIES SPREAD OVER 8 STATES

Five Forms of Participation

1. Informative participation: No right to scrutinize information 2. Consultative Participation: Joint Management Council work as advisory only 3. Associative Participation: Management has moral obligation to accept and implement decision 4. Administrative Participation: little more autonomy in exercising administrative and supervisory powers in respect of welfare, safety, benefits, rewards etc. 5. Decisive Participation: Decisions are taken jointly on matters relating to production, safety, welfare etc.