hrm - excel books - chapter 26

8/9/2019 HRM - Excel Books - Chapter 26

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INDUSTRIAL

RELATIONS AND

INDUSTRIAL

DISPUTES

EXCEL BOOKS26-1

26Chapter


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ANNOTATED OUTLINE

26-2

INTRODUCTIONThe 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.

Industrial Relations And Industrial Disputes


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Employer-employee interactions

Web of rules

Multidimensional

Dynamic and changing

Spirit of compromise and accommodation

Government's role

Wide coverage

Interactive and consultative in nature

Industrial Relations: Features



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Industrial relations are influenced by various factors viz., 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 likecommunity, caste, joint family, creed, system of beliefs, attitudes

of workers, system of power, status, etc.

2. Economic factors: These factors include economic organisations,

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, rationalisation, computerisation etc.

Major factors influencing industrial

relations



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Industrial relations: major influences


Gover ent R les,

A r s, Policies

Industri l

Rel tions

E loyeesE loyer

Tr de UnionsE loyers

Associ tionsUs es, customers, tr ditions it in

a country


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Objectives of industrial relations

Enhance the economic position of the worker

Minimise conflicts and to the extent possible, avoid conflicts and

their negative consequences

llow workers to have a say in important decisions affecting their

lives

esolve knotty issues through consultation and negotiation

Encourage and develop trade unions in order to improve the

workers' collective strength

ave the way for industrial democracy.



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There are five approaches to study industrial relations, namely:

Psychological approach

Sociological approach

Human relations approach

Giri's approach

Gandhian approach

H D approach

The H D approach recognises employees as invaluable assets in an

organisation and emphasizes that they can be developed to an

unlimited extent with proper incentives, atmosphere and treatment.

Approaches To Industrial Relations



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Basic assumptions of IndustrialRelations and HRD


Industrial Relations HRD

Employee-employer relations are contractual P ilosophy Employer-employee relations should be based

and enveloped by economic factors on trust, understanding and openness

The emphasis is on extrinsic

Rewards

Intrinsic rewards spur people to

rew ards superior performance

The focus is not on developing Focus evelop the employee through HR initiatives:

the employee. caring, counselling, mentoring, helping, coaching.

Follow the code book and put out Orientation Preventive, collaborative approach

the fires as uickly as you can where relations mattermost and not rules.

Pluralist Nature of Relations Unitarist

anagerial task vis-a-vis labour onitoring Nurturing, caring, helpful

Institutionalised, unhealthy and is at the core of Conflict Conflict could be functional, stimulating and healthy

industrial relations, reach temporary truces ifused properly; manage climate and culture.

Restricted flow Communication Increased flow

Division of labour Job design Teamwork

Negotiation Managerial skills Facilitation


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Importance and essential conditions

Sound industrial relations are essential for ensuring industrial peace andimproved productivity. ordial labour management relations enable theemployer to secure cooperation and commitment from employees quiteeasily. It is not, however, easy to promote and maintain sound industrialrelations. ertain conditions should exist for the maintenance of harmoniousindustrial relations:

Existence of strong, well organised and democratic employees' unions

Existence of sound and organised employers' unions

Spirit of collective bargaining and willingness to resort to voluntarynegotiations

Maintenance of industrial peace

Establish machinery for prevention and settlement of disputes

Provision for bipartite and tripartite committees to evolve properpersonnel policies

Establish committees to evaluate collective bargaining agreements

reate proper legal mechanisms to settle disputes quickly and easily.


Sound Industrial Relations:


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Industrial conflicts constitute militant and organised protests against

existing industrial conditions. They are symptoms of industrial unrest.

The term industrial dispute as described in the Industrial Disputes

ct, 1947 is characterised by the following features


Industrial Conflict: Forms And Causes

Features of the term industrialdispute 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 an

industrial dispute


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Forms of Industrial Disputes

Strikes: These are collective stoppages of work by workers.

Sympathetic strike

General strike

Unofficial strike

Sectional strike

Bumper strike

Sit down strike

Slow down strike

Lightning strike

Hunger strike



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Lock outs: Closing down of an undertaking or the suspension of

work or the refusal of an employer to continue to employ any

number of persons employed by him is known as 'lock out'.

Gherao: Gherao means to surround. In this method, a group of

workers initiate collective action aimed at preventing members ofthe management from leaving the office.

Picketing and Boycott: When picketing workers often carry or

display signs, banners and placards, prevent others from

entering 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


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Employment-related

ationalisation

dministration-related

ecognition as a bargaining agent Sympathetic strikes

Psychological and social issues

Institutional causes

Political causes

Causes of Industrial Disputes



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Machinery For The Settlement ofIndustrial Disputes In India

When the relationship between the parties is not cordial, 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.



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Machinery for Prevention andSettlement of Industrial Disputes


Machinery forprevention and settlement ofdisputes

Volunt r M t ods

Collective Bargaining

Trade Unions

Joint consultations

tanding Orders

Grievance Procedure

Code ofDiscipline

overn ent M iner

Labour Adm in istrat ion

Machinery

State Level

Central Level

St tutor Measures

orks Committees

Conciliation

( A) C.Officer

(B) C. Board

Arbitration

Adjudication

(a ) Labour Courts

(b) Industrial Tribunals

(c) National Tribunals

Industria

lDisputes

Act,

State

Ac

ts


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Works committees: As per the Industrial Disputes Act, 1947, works

committees have to be set up all those industrial units which employ 100 or

more persons. It is basically a consultative body

Giving greater participation to workers

Ensuring close interaction between labour and management

Generating cooperative atmosphere for negotiation between

parties

pening the doors to unions to have a clear view of what is going

on within the unit

Strengthening the spirit of voluntary settlement of disputes

Joint anagement Councils: The JMC normally 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 the formulation of standing orders.(of

course, without encroaching on the jurisdiction of works committees)


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Standing orders: These are the rules and regulations which

govern the conditions of employment of workers. The Industrial

Employment (standing orders) Act of 1946 provides for the framing

of standing orders in all industrial undertakings employing 100 or more

workers.

Grievance procedure: Amodel grievance procedure as suggested bythe Indian LabourConference, 1958 has more or less been widely

accepted 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.




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Industrial Disputes: SettlementMachinery

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Conciliation: The practice by which the services of a neutral third party

are used in a dispute as a means of helping the disputing parties to

reduce the extent of their differences and to arrive at an amicable

settlement or agreed solution.

Conciliation officer: an authority appointed by the government to

mediate disputes between parties brought to his notice; enjoying thepowers of a civil court. He is supposed to give judgement within 14

days of the commencement of the conciliation proceedings.

Board of conciliation: The Board is an adhoc, tripartite body having

the powers of a civil court created for a specific dispute(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 to resolve a

dispute, a court of enquiry is constituted by the government to

investigate the dispute and submit the report within six months.


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Voluntary arbitration: It is he process in which the disputing parties

show willingness to go to an arbitrator(a third party) and submit to his

decision voluntarily.

Adjudication: It is the process of settling disputes compulsorily

through the intervention of a third party appointed by the

Government. The Industrial Disputes Act provides a three-tieradjudication machinery consisting of:

Labour court

Industrial tribunal

ational tribunal


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