CHAPTER : 08

EMPLOYEE RELATIONS AND

COLLECTIVE BARGAINING

DEFINITION AND CONCEPT OF

INDUSTRIAL RELATIONS
Industrial relations can be defined as the
relationship between the management and the
employees of an industry.
The state and the legal system also have a role
to play in the maintenance of a conflict-free
industrial environment

DIFFERENT ROLES IN
INDUSTRIAL RELATIONS
Industrial development in India led to the
emergence of trade unions.
The parties who play an important role in
industrial relations are:
Employees
Trade Unions
The Management
The Government

OBJECTIVES OF
INDUSTRIAL RELATIONS
To safeguard the interests of the labor and the
management
Preventing industrial conflicts and increasing
productivity
To improve the standard of living of the average
worker
To improve bargaining capacity of the workers
through trade unions

INDUSTRIAL DISPUTES
PREVENTION MACHINERY
The various means of preventing industrial
disputes are:
Worker Participation
Employee Grievance Redressal Machinery
Voluntary Arbitration
Conciliation
Court of Enquiry
Tripartite Bodies
Adjudication

CONCEPT OF
COLLECTIVE BARGAINING
Collective bargaining takes place when a number
of work people enter into a negotiation as a
bargaining unit with an employer with the
objective of reaching an agreement.

FEATURES OF
COLLECTIVE BARGAINIG
Group activity
Activity in Levels
Flexibility
Win-win situation
Builds Relationships
An Art and a Science

OBJECTIVES OF
COLLECTIVE BARGAINING
To provide an opportunity to the workers to voice
their employment related problems
To resolve all conflicts and disputes in a mutually
agreeable manner
To resolve issues through third party
involvement
To enhance the productivity by preventing
strikes, lock-outs etc.

COLLECTIVE BARGAINING
PROCESS
Preparation for Negotiation
Understanding of problem at hand by both the parties
Should possess all the required facts and figures

Negotiation
Submission of the demands of the trade union to the
management
Involvement of a third party may take place

Contract administration
The terms of the contract and the agreement reached is
widely circulated among the employees

CONCEPT OF WORKERS`
PARTICIPATION IN MANAGEMENT
It aims at providing an opportunity to the workers
to take part in the management decisionmaking.
The degree of influence that workers are
allowed to exercise are:
Informative participation
Consultative participation
Associative participation
Administrative participation
Decisive participation

Work Committees
It comprises of representatives from both the
management and the workers
Basic objective is to promote harmonious relations in
the workplace.

Joint Management Councils

It consists of representatives of workers and the
management
Basic objective is to promote cordial industrial relations,
welfare facilities to workers, educating workers etc.
Examples are BHEL, TISCO and Indian Aluminum
Company and Aluminum Industries of Kundarr.

Recent Developments
ESOPS Equity shares to be owned by
employees
Workmen Directors on Board

CONCEPT OF GRIEVANCE
A grievance is a sign of an employee's
discontent, either with the job or the
organization.
The gap between employee expectations
and organizational rewards normally leads
to a grievance.

CAUSES OF GRIEVANCE

Dissatisfaction with the compensation

Denial of promotion or transfer
Dissatisfaction with the supervisors / peers
Unhealthy/ / harmful working conditions
Mismatch of job assignments
Denial of leave and other benefits

NEED FOR A
GRIEVANCE REDRESSAL PROCEDURE
It keeps a check on arbitrary actions.
It helps to maintain harmonious industrial
relations
It helps in upward communication
It helps the management to win the trust and
confidence of the employees

STEPS IN A
GRIEVANCE REDRESSAL PROCEDURE
Voluntary Arbitration
N.S.

Committee of Union & Management Representatives

N.S.

Manager
N.S.

Grievance Committee
N.S.

Departmental
Representatives

Head of the
Department
N.S.

Departmental
Representatives

Supervisor
N.S.

Foreman
Conveys
Verbally

N.S. Not Satisfied

Grievant Employee

CONFLICT RESOLUTION
Avoidance
Accommodating
Win/Lose
Arbitration
Mediation
Compromising
Problem Solving

DISCIPLINARY ACTION
Forming and Issuing a charge sheet
Considering the explanation
Issuing the notice of enquiry
Holding a full-fledged enquiry
Final order of action
Follow-up

Types of Punishments
Verbal Warning
Written Warning
Demotion
Pay Cut
Compulsory Retirement
Removal
Dismissal