Chapter 4 IR

8/2/2019 Chapter 4 IR

1/101

3/22/20121


2/101

In a restricted sense, it is the act of imposing penalties for wrongbehaviour (negative); broadly speaking, it is a condition of orderliness,

where employees willingly practice self control and respect organisational

rules and codes of conduct (positive). The differences between the two

sides of the same coin could be expressed thus:

Discipline

The differences between positive andnegative discipline

Point Negative Discipline Positive Discipline

Concept It is adherence to established norms It is the creation of a conducive climate

and regulations, out of fear of in an organisation so that employees

punishment. willingly conform to the established rules.

Conflict Employees do not perceive the There is no conflict between individual

corporate goals as their own. and organisational goals.

Supervision Requires intense supervisory control Employees exercise self control to meet

to prevent employees from going off organisational objectives.the track.

3/22/20122


3/101

Some of the common disciplinary problems confronted byorganisations include the following

Common disciplinary problems

Discipline

Attendance-related problem Off the Job behaviour problems

Unexcused absence InsubordinationChronic absenteeism Smoking

Leaving without permission Fighting with colleagues

Excessive tardiness Gambling, betting

Dishonesty and related problems

Theft, unsafe acts

Carelessness

Falsifying employment application

Sleeping while at work

Wilfully damaging factory assets

Using abusive language against supervisiors

Falsifying work records

Sexual harassment

Performance related problems

Failure to complete assigned work

Accepting bribes, gifts

Producing substandard products

Failure to meet production norms 3/22/20123


4/101

Causes of Indiscipline

Absence of effective leadership

Unfair management practices

Communication barriers

Non-uniform disciplinary action

Divide and rule policies

Inadequate attention to personnelproblems

Discipline

3/22/20124


5/101

Positive Discipline Approach

The positive discipline, based uponreminders, is a cooperative disciplineapproach where employees responsibility forthe desired behavioural change.

The focus is on coping with theunsatisfactory performance anddissatisfactions of employees before the

problems become major.

3/22/20125


6/101

Steps in positive discipline approach

Step 1: An Oral Reminder: Notice here that the word warning isremoved. The oral reminder, supported by writtendocumentation, serves as the initial formal phase of the processto identify to the employee what work problems he or she ishaving. This reminder is designed to identify what is causing the

problem and attempts to correct it before it becomes larger.Step 2: A Written Reminder: If the oral reminder was unsuccessful, amore formalised version is implemented. This written reminder onceagain reinforces what the problems are and what corrective action isnecessary. Furthermore, specific time tables that the employeemust accept and abide by, and the consequences for failing to

comply, are often included.

Step 3: A Decision-making Leave: Here, employees are given adecision-making leavetime off from work, usually with payto think about what they are doing and whether or not they desireto continue work with the company: This deciding day is

designed to allow the employee an opportunity to make a choicecorrect the behaviour, or face separation from the company.

3/22/20126


7/101

Progressive Discipline Approach

In a progressive discipline system, the employee is given amplewarning of performance or other work related problems. Failure tochange his or her behaviour is accompanied by increasingly harsherdisciplinary action. Due process is based on the action thatemployees have the right to be treated fairly, particularly when being

disciplined.

3/22/20127


8/101

The Progressive Discipline Approach

Improper behaviour

Does this violation No No disciplinarywarrant disciplinary action

action?

Ye s

Does this violation No Oralwarrant more than warning

an oral warning?

Ye s

Does this violation No Writtenwarrant more than warninga written warning?

Ye s

Does this violation Nowarrant more than Suspension

a suspension?

Ye s

Termination

3/22/20128


9/101

The Red Hot Stove Rule

This rule states that discipline should be immediate, consistent, impersonaland should be in writing.

Disciplinary Action in India

The disciplinary action followed in most Indian companies consists of thefollowing steps:

Issuing a letter of charge

Considering the explanation offered by the employee

Issuing a show cause notice

Holding an enquiry based on principles of natural justice


3/22/20129


10/101

Giving a fair chance to employee to explain his case thoroughly

Enabling the employee to cross examine the evidence furnished bymanagement

Explain his own point of view without any fear or pressure

See that punishment is in line with the offence committed.

Making a final order of punishment consisting of various actions such as:

Dismissal

Discharge

Suspension

Demotion to a lower gradeWithholding of increments

Imposing fines

Issuing a warning

Initiating follow up action.


3/22/201210


11/101

3/22/201211


12/101

INTRODUCTIONWhen an employee feels that something is unfair in the organisation,

he is said to have a grievance. To be precise, grievances have

certain common features;

Features of the term grievance

Perceived non fulfillment of one's expectations leading to dissatisfaction with anyaspect of the organization.

The dissatisfaction arises out of employment and not due to personal or familyproblems

The reasons could be real or imaginary or disguised.

The discontent may be voiced or unvoiced

3/22/201212


13/101

Causes

Economic

Work environment

Supervision

Work group

Miscellaneous

Effects

If grievances are not identified and redressed properly, they may

adversely affect the workers, managers and the organisation.

Production

Employees

Managers

EMPLOYEE GRIEVANCES

3/22/201213


14/101

It is a formal channel of communication used to resolve grievances.Having a formal grievance procedure has its own advantages.Workers get a wonderful opportunity to ventilate their feelings.

Management can go back to the roots of a problem quickly.

Supervisors, too, have to fall in line and listen to workerscomplaints more seriously.

A fair redressal mechanism would boost the morale of all employeesgreatly.

Grievance Procedure

3/22/201214


15/101

The success of a grievance procedure, to a large extent, dependson the various ways adopted to dig out the problem:

The discovery of grievances

How to uncover grievances?

Observation

A formal grievance procedure

Gripe boxes

Open door policy

Exit interviews

Opinion surveys

3/22/201215


16/101

Essentials of a formal grievanceprocedure

A sound grievance procedure must have the following characteristics

Prerequisites of a grievance procedure

Conformity withstatutory provisions

Unambiguity

Simplicity

Promptness

Training

Follow up3/22/201216


17/101

Steps in the grievance procedure

Identify grievances

Define correctly

Collect data

Analyse and solve Prompt redressal

Implement and follow up

3/22/201217


18/101

Model Grievance Procedure

The model grievance procedure suggested by the National Commissionon Labour involves six successive time-bound steps each leading to thenext, in case employees have any reason to complain against any issueaffecting their organisational lives.

Model grievance procedureP r o ce du r e Time Fr ame

Appeal against within a week

Manager 3 days

Grievance Committee 7 days unanimous

HOD 3 days

Supervisor 48 hours

Foreman

Worker

3/22/201218


19/101

Guidelines for handling grievances

Treat each case as important and get the grievancein writing

Talk to the employee directly

Discuss in a private place

Handle each case within a time frame

Examine company provisions in each case

Get all relevant facts Control your emotions

Maintain proper records

Be proactive, if possible.

Grievance Procedure

3/22/201219


20/101

Essentials of A Good Disciplinary System

Rules and performancecriteria

Documentation of facts

Consistent response to ruleviolations

Training of supervisors

Prompt action

Impersonal discipline

Reasonable penalty

Follow up3/22/201220


21/101

3/22/201221


22/101

Workers taking to streets.????

3/22/201222
http://images.google.co.in/imgres?imgurl=http://im.rediff.com/money/2009/jun/24sld2.jpg&imgrefurl=http://business.rediff.com/slide-show/2009/jun/24/slide-show-1-taxpayer-money-to-bailout-ai.htm&usg=__83h9zpDyEsq_3OcPJEX1IOjrGeQ=&h=305&w=450&sz=35&hl=en&start=17&tbnid=reeafkvH6paXyM:&tbnh=86&tbnw=127&prev=/images%3Fq%3DTrade%2Bunions%2BIndia%26gbv%3D2%26hl%3Den%26sa%3DGhttp://images.google.co.in/imgres?imgurl=http://polcomm.files.wordpress.com/2009/02/britishjobs7.jpg&imgrefurl=http://polcomm.wordpress.com/2009/02/15/blogcomment-britain-the-emerging-british-jobs-social-movement/&usg=__Zmp7WCa4eQU601sCuaci3ent3-U=&h=348&w=450&sz=61&hl=en&start=31&tbnid=WjYjKPrE03dRrM:&tbnh=98&tbnw=127&prev=/images%3Fq%3DTrade%2Bunions%26gbv%3D2%26ndsp%3D18%26hl%3Den%26sa%3DN%26start%3D18


23/101

ACTION TAKEN BY WORKERS

3/22/201223

On 19 October workers from Rico Auto embarked on a

strike and were later joined by workers from other

companies like Hero Honda, Honda, Suzuki etc.


24/101

3/22/201224


25/101

3/22/201225

Police beating HONDA

workers


26/101

3/22/201226

Clash between Police and workers


27/101

Introduction

3/22/201227

An industry is a social world inminiature. Associations of variouspersons, workmen, supervisory staff,

management and employer inindustry create industrialrelationships.

This affects the economic, social andpolitical life of the whole community.


28/101

Introduction

3/22/201228

Thus, industrial life creates a series ofsocial relationship which regulate the

relations and working of not only

workmen and management but also of

community and industry.

Industrial relations are inherent in an

industrial life


29/101

The term industrial relations refers to the

collective relations between employers and

employees as a group.

It underscores the importance of compromise

and accommodation in place of conflict and

controversy in resolving disputes between labour

and management.

3/22/201229


30/101

Industrial relations are influenced by various factorsviz., institutional factors, economic factors and

technological factors.

1. Institutional factors: These factors include

government policy, labour legislation,

voluntary courts, collective agreements, employee

courts, employers federations, social institutions

like community, caste, joint family, creed,

system of beliefs, attitudes of workers, system of

power, status, etc.

Major factors influencing industrial

relations

3/22/201230


31/101

3/22/201231

Economic factors: These factors include economicorganisations, like capitalist, communist, mixed,

etc., the structure of labour force, demand for and

supply of labour force, etc..

3. Technological factors: These factors include

mechanisation, automation, computerisation etc.


32/101

Industrial relations: majorinfluences/Parties in IR

Government Rules,

Awards, Policies

Industrial

Relations

EmployeesEmployer

Trade UnionsEmployers

AssociationsUsages, customers, traditions within

a country

3/22/201232


33/101

New dynamics and New actors

3/22/201233

Consumers and Community

Pro-labour and Pro investor policies

Changing mindsets of the Judiciary, legislature and

Executive

Declining Trade Union Density

Worker militancy replaced by employer militancy

Collective Bargaining


34/101

Objectives of industrial relations

Enhance the economic position of the worker

Minimise conflicts and to the extent possible, avoid conflicts andtheir negative consequences

Allow workers to have a say in important decisions affecting their

lives Resolve knotty issues through consultation and negotiation

Encourage and develop trade unions in order to improve theworkers' collective strength

Pave the way for industrial democracy.

3/22/201234


35/101

Employer-employeeinteractions

Web of rules

Multidimensional

Dynamic and changing

Spirit of compromise andaccommodation

Government's role

Wide coverage

Interactive and consultative innature

Industrial Relations: Features

3/22/201235


36/101

Importance of IR

3/22/201236

Promotion and development of healthy labour-

management relationships

Maintanence of Industrial Peace and avoidance of

Industrial strife Development of industrial democracy

Sound IR gets unreserved employee co operation

It prevents industrial disputes


37/101

Functional requirements of sound IRprogramme

3/22/201237

Top management support

Sound management policies

Adequate practices

Detailed Supervisory training Follow up results


38/101

Why more attention is being paidto Industrial Relations

3/22/201238

Globalization

Technology

Changes in workforce

Organizationalpsychology and

behavior
http://images.google.co.in/imgres?imgurl=http://www.fotosearch.com/comp/csk/CSK137/KS5550.jpg&imgrefurl=http://www.fotosearch.com/CSK137/ks5550/&h=300&w=200&sz=14&hl=en&start=17&tbnid=W71R_uGFiXthvM:&tbnh=116&tbnw=77&prev=/images%3Fq%3Dloud%2Bspeaker%26svnum%3D10%26hl%3Den%26lr%3D


39/101

Current and future issue

3/22/201239

Cross cultural management

Balancing Efficiency with Equity and Labor

Market Flexibility

Freedom of Association, Labor Rights and

Changing Patterns of Work


40/101

Contd

3/22/201240

Role of Women

Migration

Transition Economies
http://images.google.co.in/imgres?imgurl=http://delhilawyerslive.com/site/MyImages/labour.jpg&imgrefurl=http://delhilawyerslive.com/site/page002.aspx&usg=__fEv4Vrvdx9kgJK7QPl5ByOz4ilQ=&h=300&w=400&sz=41&hl=en&start=3&um=1&itbs=1&tbnid=wKC0JuxUI9i6CM:&tbnh=93&tbnw=124&prev=/images%3Fq%3Dindustrial%2Bdisputes%2Bact%26hl%3Den%26rlz%3D1R2PCTC_enIN339%26sa%3DG%26um%3D1


41/101

3/22/201241

DISPUTES
http://images.google.co.in/imgres?imgurl=http://delhilawyerslive.com/site/MyImages/labour.jpg&imgrefurl=http://delhilawyerslive.com/site/page002.aspx&usg=__fEv4Vrvdx9kgJK7QPl5ByOz4ilQ=&h=300&w=400&sz=41&hl=en&start=3&um=1&itbs=1&tbnid=wKC0JuxUI9i6CM:&tbnh=93&tbnw=124&prev=/images%3Fq%3Dindustrial%2Bdisputes%2Bact%26hl%3Den%26rlz%3D1R2PCTC_enIN339%26sa%3DG%26um%3D1


42/101

Introduction

3/22/201242

Industrial disputes are a serious problem that manydemocratic societies face.

At a point of time an industrial relations problems may

be confine to one firm, an industry, a sector, a

locality/region or the whole nation.

Industrial disputes sometimes have a cascading effect.


43/101

Industrial dispute

3/22/201243

Dispute and conflict are used more or less assynonyms in IR.

Difference between unrest and disputeUnrest is

psychological in nature and the disputes are concrete

evidence of unrest.

Disputes constitute open manifestations of the feeling

of dissatisfaction, disputes are the overt expressions.


44/101

Contd-

3/22/201244

Industrial disputes are essentially symptoms ofindustrial unrest and refelect a lack of cooperative

spirit and harmonious relations in the industry.

Elaborate preventive and reactive measures are put in

place to minimise the debilitating social-economic-political fallouts of industrial disputes.


45/101

Causes of industrial dispute

3/22/201245

Conflict of interests Economic causesWages, Bonus, Economic insecurity

Working conditions and Labour welfare

Personnel Factors Psychological Factors

External Factors
http://images.google.co.in/imgres?imgurl=http://peacetimes.net/wp-content/uploads/2009/11/Air-India-strike-300x216.jpg&imgrefurl=http://peacetimes.net/2009/11/air-india-pilots-threaten-strike/&usg=__avLB4Tu71y-SUm6gOK54JnjHtmY=&h=216&w=300&sz=28&hl=en&start=7&um=1&itbs=1&tbnid=_4QgJbU1xqmtPM:&tbnh=84&tbnw=116&prev=/images%3Fq%3Dindustrial%2Bdisputes%2Bact%2B1947%26hl%3Den%26rlz%3D1R2PCTC_enIN339%26sa%3DN%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.siliconindia.com/news/newsimages/pushed-out2(1).jpg&imgrefurl=http://www.siliconindia.com/shownews/Firms_force_employees_to_take_paid_leaves-nid-54996.html&usg=__brc8XA-f91FbjO9OaBIn1hRHfx8=&h=287&w=194&sz=15&hl=en&start=13&um=1&itbs=1&tbnid=U6OhnZJXotDDuM:&tbnh=115&tbnw=78&prev=/images%3Fq%3Dindustrial%2Bdisputes%2Bact%26hl%3Den%26rlz%3D1R2PCTC_enIN339%26sa%3DG%26um%3D1http://images.google.co.in/imgres?imgurl=http://peacetimes.net/wp-content/uploads/2009/11/Air-India-strike-300x216.jpg&imgrefurl=http://peacetimes.net/2009/11/air-india-pilots-threaten-strike/&usg=__avLB4Tu71y-SUm6gOK54JnjHtmY=&h=216&w=300&sz=28&hl=en&start=7&um=1&itbs=1&tbnid=_4QgJbU1xqmtPM:&tbnh=84&tbnw=116&prev=/images%3Fq%3Dindustrial%2Bdisputes%2Bact%2B1947%26hl%3Den%26rlz%3D1R2PCTC_enIN339%26sa%3DN%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.siliconindia.com/news/newsimages/pushed-out2(1).jpg&imgrefurl=http://www.siliconindia.com/shownews/Firms_force_employees_to_take_paid_leaves-nid-54996.html&usg=__brc8XA-f91FbjO9OaBIn1hRHfx8=&h=287&w=194&sz=15&hl=en&start=13&um=1&itbs=1&tbnid=U6OhnZJXotDDuM:&tbnh=115&tbnw=78&prev=/images%3Fq%3Dindustrial%2Bdisputes%2Bact%26hl%3Den%26rlz%3D1R2PCTC_enIN339%26sa%3DG%26um%3D1


46/101

Features of the term industrialdispute under Industrial Dispute Act

3/22/201246

There should be a difference or dispute

The dispute could be between employer-employer,

employee-employee or employer-employee

The dispute must pertain to some work-related issue

The dispute must be raised by a group or class of

workers. For example the dispute between one or two

workers and the respective employer is not anindustrial dispute


47/101

Forms of Industrial Disputes

Strikes: These are collective stoppages of work by workers. General strike

Unofficial strike

Sectional strike

Sit down strike

Slow down strike

Hunger strike

3/22/201247


48/101

Lock outs: Closing down of an undertaking or the suspension ofwork or the refusal of an employer to continue to employ anynumber of persons employed by him is known as 'lock out'.

Gherao: Gherao means to surround. In this method, a group ofworkers initiate collective action aimed at preventing members of

the management from leaving the office.

Picketing and Boycott: When picketing workers often carry ordisplay signs, banners and placards, prevent others fromentering the place of work and persuade others to join the strike.Boycott aims at disrupting the normal functioning of an

enterprise.

Forms of Industrial Disputes

3/22/201248

hi h S l f


49/101

Machinery For The Settlement ofIndustrial Disputes In India

When the relationship between the parties is notcordial, discontentment develops and conflicts

erupt abruptly.

It is not always easy to put out the fires with the

existing dispute-settlement machinery, created

by the government.

Hence both labour and management must

appreciate the importance of openness, trust

and collaboration their day-to-day dealings.3/22/201249

M hi f P i d


50/101

Machinery for Prevention andSettlement of Industrial Disputes

Machinery for prevention and settlement of disputes

Voluntary Methods

Collective Bargaining

Trade Unions

Joint consultations

Standing Orders

Grievance Procedure

Code of Discipline

Government Machinery

Labour Admin is t ra t ion

Machinery

State Level

Central Level

Statutory Measures

Works Committees

Conciliation

(A) C.Officer

(B) C. Board

Arbitration

Adjudication

(a) Labour Courts(b) Industrial Tribunals

(c) National Tribunals

Indus

trialDisputes

A

ct,1947

State

Acts

3/22/201250

M hi F Th S ttl t f


51/101


Works committees: As per the Industrial DisputesAct, 1947, works committees have to be set up allthose industrial units which employ 100 or morepersons. It is basically a consultative body

Giving greater participation to workers

Ensuring close interaction between labour andmanagement

Generating cooperative atmosphere for

negotiation between parties Opening the doors to unions to have a clearview of what is going on within the unit

Strengthening the spirit of voluntary settlement

of disputes 3/22/201251


52/101

Contd-

3/22/201252

Joint Management Councils: The JMCnormally consists of equal number of representatives

of workers and employers looking after three things:

information sharing, consultative and administrative

matters relating to welfare, safety, training etc and theformulation of standing orders.(of course, without

encroaching on the jurisdiction of works committees)

M hi F Th S ttl t f


53/101

Standing orders: These are the rules andregulations which govern the conditions of employmentof workers. The Industrial Employment (standingorders) Act of 1946 provides for the framing of standing

orders in all industrial undertakings employing 100 ormore workers.

Grievance procedure: A model grievanceprocedure as suggested by the Indian Labour

Conference, 1958 has more or less been widelyaccepted in India now.

Code of discipline: It consists of a set of self-imposed obligations voluntarily formulated by the

central organisation of workers and employers.


3/22/201253

d i l i l


54/101

Industrial Disputes: SettlementMachinery

Conciliation: The practice by which the services of a neutral third partyare used in a dispute as a means of helping the disputing parties toreduce the extent of their differences and to arrive at an amicablesettlement or agreed solution.

Conciliation officer: an authority appointed by the government tomediate disputes between parties brought to his notice; enjoying

the powers of a civil court. He is supposed to give judgment within 14days of the commencement of the conciliation proceedings.

Board of conciliation: The Board is an adhoc, tripartite bodyhaving the powers of a civil court created for a specificdispute(when the conciliation officer fails to resolve disputes within

a time frame, the board is appointed)

Court of enquiry: In case the conciliation proceedings fail toresolve a dispute, a court of enquiry is constituted by thegovernment to investigate thedispute and submit the report within six months.

3/22/201254

M hi F Th S ttl t f


55/101

Voluntary arbitration: It is the process in which the disputing partiesshow willingness to go to an arbitrator (a third party) and submit to hisdecision voluntarily.

Adjudication: It is the process of settling disputes compulsorilythrough the intervention of a third party appointed by theGovernment. The Industrial Disputes Act provides a three-tieradjudication machinery consisting of:

Labour Court

Industrial tribunal

National tribunal


3/22/201255
http://images.google.co.in/imgres?imgurl=http://newsimg.bbc.co.uk/media/images/41286000/jpg/_41286272_airport8_416crap.jpg&imgrefurl=http://news.bbc.co.uk/2/low/in_pictures/4673812.stm&usg=__TMS_wmsWAagNnSFAGpj7Mgw5bJs=&h=300&w=416&sz=28&hl=en&start=11&tbnid=XTH0V7m5B6IWfM:&tbnh=90&tbnw=125&prev=/images?q=Trade+unions+India&gbv=2&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://www.actu.asn.au/Upload/Image/Random/pic_g_590pix.jpg&imgrefurl=http://www.actu.asn.au/About/Tradeunions/default.aspx&usg=__q54_2vU9ZhCseVQ_3B2QLwP2n1c=&h=394&w=590&sz=115&hl=en&start=12&tbnid=Xaj7dBJi_6RKGM:&tbnh=90&tbnw=135&prev=/images?q=Trade+unions&gbv=2&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://liammacuaid.files.wordpress.com/2008/02/civil-rights-march-cut.jpg&imgrefurl=http://liammacuaid.wordpress.com/2008/02/23/trade-unions-and-climate-change/&usg=__rre2e74K68rJSBDsqoKGe0Ft0bQ=&h=400&w=450&sz=93&hl=en&start=2&tbnid=w_vKGLT1V77rqM:&tbnh=113&tbnw=127&prev=/images?q=Trade+unions&gbv=2&hl=en&sa=G


56/101

Trade unions

56 3/22/2012
http://images.google.co.in/imgres?imgurl=http://newsimg.bbc.co.uk/media/images/41286000/jpg/_41286272_airport8_416crap.jpg&imgrefurl=http://news.bbc.co.uk/2/low/in_pictures/4673812.stm&usg=__TMS_wmsWAagNnSFAGpj7Mgw5bJs=&h=300&w=416&sz=28&hl=en&start=11&tbnid=XTH0V7m5B6IWfM:&tbnh=90&tbnw=125&prev=/images?q=Trade+unions+India&gbv=2&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://1.bp.blogspot.com/_TYzMOdSu9h4/SZ72hWbb68I/AAAAAAAAAUg/jwP5415B8jA/s320/18-.02-09-1&imgrefurl=http://90paisa.blogspot.com/2009_02_01_archive.html&usg=__XQKksTa69g2YdeMlGerqazgW6AE=&h=240&w=320&sz=33&hl=en&start=10&tbnid=z0McUS2M6Y4WEM:&tbnh=89&tbnw=118&prev=/images?q=Trade+unions+India&gbv=2&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://polcomm.files.wordpress.com/2009/02/britishjobs7.jpg&imgrefurl=http://polcomm.wordpress.com/2009/02/15/blogcomment-britain-the-emerging-british-jobs-social-movement/&usg=__Zmp7WCa4eQU601sCuaci3ent3-U=&h=348&w=450&sz=61&hl=en&start=31&tbnid=WjYjKPrE03dRrM:&tbnh=98&tbnw=127&prev=/images?q=Trade+unions&gbv=2&ndsp=18&hl=en&sa=N&start=18http://images.google.co.in/imgres?imgurl=http://www.actu.asn.au/Upload/Image/Random/pic_g_590pix.jpg&imgrefurl=http://www.actu.asn.au/About/Tradeunions/default.aspx&usg=__q54_2vU9ZhCseVQ_3B2QLwP2n1c=&h=394&w=590&sz=115&hl=en&start=12&tbnid=Xaj7dBJi_6RKGM:&tbnh=90&tbnw=135&prev=/images?q=Trade+unions&gbv=2&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://liammacuaid.files.wordpress.com/2008/02/civil-rights-march-cut.jpg&imgrefurl=http://liammacuaid.wordpress.com/2008/02/23/trade-unions-and-climate-change/&usg=__rre2e74K68rJSBDsqoKGe0Ft0bQ=&h=400&w=450&sz=93&hl=en&start=2&tbnid=w_vKGLT1V77rqM:&tbnh=113&tbnw=127&prev=/images?q=Trade+unions&gbv=2&hl=en&sa=G


57/101

3/22/201257

Voluntary organizations of workers formed with a view todefending and advancing their collective interests eithermutually or in relation to outside parties such asemployers, government and other trade unions.

It is a continuous association of wage earners for thepurpose of maintaining or improving the conditions of

their working title. (Webb and Webb)


58/101

3/22/201258

The Indian Trade Unions Act, 1926, defines a trade union

as any combination whether temporary or permanent

formed primarily for the purpose of regulating therelations between workers and employers or between

workmen and workmen, or between employers and

employers or for imposing restrictive conditions on the

conduct of any trade or business and includes anyfederation of two or more trade unions.
http://www.careerhub.uq.edu.au/documents/articles/images/protestmarch.gif


59/101

3/22/201259

Wages

Working conditions

Job security

Welfare activities

Types of industrial action that can
http://www.careerhub.uq.edu.au/documents/articles/images/protestmarch.gif


60/101

Types of industrial action that canbe taken by trade unions:

3/22/201260

Strike

Work to rule

Go slow

Picketing

Overtime ban
http://www.fotosearch.com/comp/IMZ/IMZ104/vga0009.jpghttp://www.fotosearch.com/comp/IMZ/IMZ104/vga0009.jpghttp://images.google.co.in/imgres?imgurl=http://www.crosscurrents.hawaii.edu:8080/assets/uswork/USWORK012_351.jpg&imgrefurl=http://www.crosscurrents.hawaii.edu:8080/uswork_sub_e.asp%3Ftheme%3Dunion%26page%3D3%26lan%3Deng&h=308&w=270&sz=20&hl=en&start=7&tbnid=_WbQjUG5LhNBQM:&tbnh=117&tbnw=103&prev=/images%3Fq%3Dpicketing%26svnum%3D10%26hl%3Den%26lr%3D


61/101

What do trade unions do

3/22/201261

Negotiation

Representation

Information and

advice

Member services


62/101

Functions of trade unions

3/22/201262

Militant functions Protective functions

Fraternal functions

Political functions

Social functions
http://www.google.co.in/imgres?imgurl=http://liammacuaid.files.wordpress.com/2008/02/civil-rights-march-cut.jpg&imgrefurl=http://liammacuaid.wordpress.com/2008/02/23/trade-unions-and-climate-change/&usg=__rre2e74K68rJSBDsqoKGe0Ft0bQ=&h=400&w=450&sz=93&hl=en&start=2&itbs=1&tbnid=w_vKGLT1V77rqM:&tbnh=113&tbnw=127&prev=/images?q=Trade+Unions&hl=en&sa=G&gbv=2&tbs=isch:1http://images.google.co.in/imgres?imgurl=http://polcomm.files.wordpress.com/2009/02/britishjobs7.jpg&imgrefurl=http://polcomm.wordpress.com/2009/02/15/blogcomment-britain-the-emerging-british-jobs-social-movement/&usg=__Zmp7WCa4eQU601sCuaci3ent3-U=&h=348&w=450&sz=61&hl=en&start=31&tbnid=WjYjKPrE03dRrM:&tbnh=98&tbnw=127&prev=/images?q=Trade+unions&gbv=2&ndsp=18&hl=en&sa=N&start=18


63/101

Kinds of unions

3/22/201263

Craft Unions Industrial Unions

General unions

Federations


64/101

White collar trade union

3/22/201264

All clerical or office staff who do not work on the shopfloor, are termed as white-collar workers as their work

& working places are clean.

They are generally involved in a desk job or providing

service over the counter.


65/101

Contd-

3/22/201265

They are non-manual workers forming a distinct socialground, characterized by divergent socio-economic

backgrounds, level of education, manner of speech,

social custom & ideology. They are better educated &

have jobs requiring mental capabilities to a greaterextent.


66/101

Why white-collar workers unions?

3/22/201266

Seeing how unions of blue-collar had improved theirservice, employment & working conditions by

bargaining collectively with their employers white-

collar workers also started uniting and organizing

themselves & forming their unions for fighting forbetter pay scales, more fringe benefits, internal

promotion by collective bargaining


67/101

3/22/201267


68/101

INTRODUCTIONThe basic objective of collective bargaining is to

arrive at an agreement on wages and other conditions

of employment. Both labour and management must

reconcile their differences voluntarily through

negotiations, yielding some concessions and making

sacrifices in the process.

3/22/201268

Important features of Collective


69/101

Important features of CollectiveBargaining

3/22/201269

Collective

Strength

Flexible

Voluntary Continuous

Dynamic

Representation

Bipartite process

complex


70/101

resolve differences over knotty issues protect the interests of workers throughcollective action

carry out negotiations voluntarily, withoutinterference from a third party

arrive at an amicable agreement through aprocess of give and take

Objectives of collective bargaining

3/22/201270

h b f b i i


71/101

The substance of bargaining

1. Wages and working conditions

2. Work norms

3. Incentive payments

4. Job security

5. Changes in technology

6. Work tools, techniques and practices7. Staff transfers and promotions

8. Grievances

9. Disciplinary matters

10. Health and safety

11. Insurance and benefits

12. Union recognition

13. Union activities/responsibilities

14. Management rights

3/22/201271


72/101

Identification of the problem

Collection of data

Selection of negotiators

Climate of negotiations

Bargaining strategy and tactics

Formalizing the agreement

Enforcing the agreement

3/22/201272

Steps in the collective bargainingprocess

C ll i i i di


73/101

Unions occupying centre stage only after 1900

Mostly legal machinery used to resolve disputes

After independence, collective bargaining gained ground

Productivity bargaining is increasingly popular in recent

times due to global competition, customer-focused

manufacturing and marketing etc.

Factors inhibiting collective bargaining

Employer's reluctance

Weak unions

Inappropriate legislative framework

Collective Bargaining In India

3/22/201273

Conditions Essential For Collective


74/101

Conditions Essential For CollectiveBargaining

To strengthen collective bargaining, both parties must carryout negotiations in an atmosphere of mutual trust and faith,

observing certain essential things:

Unanimity among workers

Strength of both parties

positive attitude

willing to make some sacrifices

prepared to implement previously agreed

things strictly

3/22/201274


75/101

3/22/201275

Representative authority

Representatives must understand the

problems of both parties Willing to discuss everything and notnecessarily something related to wagesand monetary benefits

Parties having respect toward eachother

Carry out negotiations free from unfairpractices


76/101

3/22/201276

WORKERS PARTICIPATION IN

MANAEMENT


77/101

Workers participation in management

3/22/201277

Workers have a say in the decisionmaking processof an enterprise

Crystallises the concept of Industrial democracy

Importance of workers participation in management

Mutual understanding

Higher Productivity


78/101

WPM is a system of communication and consultation,

either formal or informal, by which employees of an

organization are kept informed about the affairs of an

undertaking and through which they express their

opinion and contribute to mgt decisions.

3/22/201278

Meaning of WPM


79/101

Objectives of WPM

3/22/201279

Increasing productivity for the general benefit ofthe enterprise, the employees and the community;

Giving employees a better understanding of theirrole in the working of the industry & of the

production process; and Satisfying the workers urge for self-expression,

thus leading to industrial peace, better relations andincreased co-operation.


80/101

Forms of WPM

3/22/201280

Informative & associative participation

Consultative participation

Administrative participation

Decision participation


81/101

Participative forums in India

3/22/201281

Works committees; Joint mgt. Councils;

Joint councils;

Unit councils;

Plant councils;

Shop councils;

Workers representative on the board of mgt; and

Workers participation in share capital.


82/101

Conditions necessary for effective working of thescheme

3/22/201282

Congenial work environment Well defined roles

Faith in the efficacy of the scheme

Wide publicity

Should be evolutionary

Free flow of information throughout the enterprise

Should be based on mutual trust

Decisions taken by different participatory forumsmust be sincerely carried out in the stipulated time


83/101

Reasons for failure of WPM

3/22/201283

Ideological differences between the employer and theemployees regarding the degree of participation.

Failure to imbibe the spirit of participation by the parties

Multiplicity of participative forums

Lack of strong trade unionism

Unhappy IR

Illiteracy of workers

Non co-operative attitude of the working class

Delays in the implementation of the decisions of theparticipative bodies


84/101

Importance

3/22/201284

Industrial harmony

Industrial democracy

Less resistance to change

Creativity and innovation


85/101

3/22/201285


86/101

Every organization hears what employees say.

Good organization listens to what itsemployees have to say.

But organizations having employee welfare asa priority listens to what employees dont say.

Introduction

3/22/201286


87/101

What is employee welfare???

3/22/201287

Employee welfare can be defined as the efforts madeto make life worth living for workmen.

It includes anything that is done for the comfort and

improvement of the employees and is provided overand above the wages.


88/101

3/22/201288

Welfare helps in keeping the morale and motivation of the

employees high so as to retain the employees for longer

duration.

Employee welfare entails all those activities of employer

which are directed towards providing the employees with

certain facilities and services in addition to wages orsalaries.


89/101

Objectives

3/22/201289

To provide better life and health to the workers

To make the workers happy and satisfied

To relieve workers from industrial fatigue and to

improve intellectual, cultural and material

conditions of living of the workers.


90/101

MERITS

3/22/201290

Enables workers to have a richer and satisfying life

Raises standard of living of the workers

Motivates employees

Employee retention

Minimized social evils

Better job satisfaction

Cuts down labor turnover


91/101

Contd-

3/22/201291

There are several agencies involved in the Labourwelfare work namely the Central Government, State

Governments, Employers, Trade unions and other

social service organisations.


92/101

Contd-

3/22/201292

Employers with a progressive outlook has alwaysinvested heavy amounts in enriching the life of

workers and have always gone beyond what has been

stated in the rule book..


93/101

3/22/201293


94/101

3/22/201294

According to ILO-Social Security is the protection

which society provides for its members, through a series

of public measures, against the economic and socialdistress that otherwise would be caused by the stoppage or

substantial prediction of earning resulting from sickness,

maternity, employment, injury, unemployment, invalidity,

old age and death.


95/101

Features

3/22/201295

Mechanism to solve problem of insecurity. It is a group effort in place of individual effort.

Protect the workers from various contingencies of life.

Collective effort of employee, employer and

government.

Idea to provide social justice.


96/101

Objective

3/22/201296

Compensation Restoration

Prevention


97/101

Purpose of Social Security

3/22/201297

To give individuals and families the confidence thattheir level of living and quality of life will not erode bysocial or economic eventuality.

To provide medical care and income security againstthe consequences of defined contingencies.


98/101

Contd-

3/22/201298

To provide physical and vocational rehabilitation to thevictims.

To prevent or reduce ill health or accidents in theoccupations.

To protect against unemployment by maintenance and

promotion of job creation. To provide benefit for the maintenance of any children.


99/101

Types

3/22/201299

Social InsurancePF, group insurance Social Assistancebenefits offered out of States

general revenue

S i l S i B fi


100/101

Social Security Benefits

3/22/2012100

Medical care Sickness Benefit

Unemployment benefit

Old age benefit

Employment injury benefit

Maternity benefit

A I di i


101/101

An Indian overview

Enactment of several laws to provide social security Schemes are complicated and hence beneficiaries put

into a lot of trouble.

Lack of trained staff to implement these schemes

Considerable overlapping of schemes.

Protracted legal battles in settling claims

Documents

Chapter 4 IR