Employee Relations, TU, Ethics

Module 5(1)

Employer and Employee Relations – Collective Bargaining – process – UnionEthics – dominants of ethical behaviour – protecting Safety and health

Industrial Relations

ER/IR deals with all formal and informal relationships of an interpersonal nature that arise from management/ employee interactions in working situations

Where unionised, it deals with managing them for gaining their support to achieve org. objectives of increased productivity, cost reduction and gaining flexibility.

Covers communications, participation in decision making and gaining employee commitment and involvement for improving quality and customer satisfaction

objectives

Sound relationship between workers and management by safeguarding their interest

Avoid industrial conflicts and strikes by developing mutuality among parties

Keep strike, lock-out, gherao etc away by enhancing economic status of workers

Provide forum to participate in management and decision making Raise productivity Establish and nurture Industrial democracy socialisation and rationalisation of industries by making the

state a major employer Vesting of proprietary interest of workers in industries in

which they are employed

Importance

Foster industrial peacePromote industrial democracyBenefits to workers Benefit to management Improve productivity

Role of the three actors to IR

Employees- most affected party. With their characteristics of commitment, education and social background, attitude etc they affect and are affected most by IR system.

They perceive IR as a means to improve conditions of employment, voice grievances and participate in org. decision making process

TU are looked upon as a tool to wrest concessions from employers

Roles :1) To redress bargaining advantage2) To secure better terms and conditions of employment3) To obtain improved status for the workers4) To increase democratic mode of decision making

Employers: Management has the right to –hire and fire, relocate, close, merge, take over, sell a plant or introduce technological changes.these rights of management are perceived as threats by the employees. This creates a gap and concern for IR.the managers tend to see ER in terms of the following activities:1. employee motivation2. employees commitment3. mutually beneficial channel of communication4. achieving higher level of efficiency5. negotiating terms and conditions of employment with employees representatives6. sharing decision making with employees

SAFETY NEEDS

PHYSIOLOGICAL NEEDS

SOCIAL NEEDS

EGO NEEDS

SELF- ACTUALIZATION

Maslow’s Hierarchy of Needs

Physiological Needs Basic physical needs: the ability to acquire food, shelter, clothing and other basics to survive.

Safety Needs A safe and non-threatening work environment, job security, safe equipment and installations.

Social Needs Contact and friendship with fellow-employees, social activities and opportunities.

Ego NeedsRecognition, Acknowledgment, Rewards.

Self-Actualization Needs Realizing one's dreams and potential, reaching the heights of one's gifts and talents.

It is a process facilitating the regulation of the terms and condition of workers by agreement between their bargaining agents and employers. The primary aim of CB is to arrive at an agreement on wages and other conditions of employment. Both the employer and the employees may begin the process with divergent views but ultimately try to reach a compromise by a ‘give some and take some’ type of sacrifice. When a compromise is reached the terms of agreement are put into operations.

Collective bargaining

Features of CBCollective activityStrengthFlexibilityVoluntary ContinuousDynamicPower relationshipRepresentation By partite processComplexities

Objectives of collective bargaining

To settle disputes/ conflicts relating to wages and working conditions

To protect the interest of workers through collective actions

To resolve the differences between worker and management through voluntary negotiations and arrive at a consensus

To ensure participation of trade union in industryTo avoid 3rd party intervention in matters relating to

employmentTo promote democracy

Trade Unions

According to Yoder, “A trade union is a continuing long term association of employees formed and maintained for the specific purpose of advancing and protecting interest of members in their working relationship

Definition of TU

Section 2h of TU Act,1928

“any combination, whether temporary or permanent, formed primarily for the purpose of a) regulating relations between workmen and employers, between workmen and workmen or between employers and employers or b) for imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more trade unions

Why do workers join TU

Job securityWage and benefits Working conditionsFair and just supervisionPowerlessnessNeed to belong

Types of TU

Industrial union – primarily of semi skilled employees (blue collar employee). Referred to as vertical union.

Trade union / Craft union – association of workers across many companies . Referred to as horizontal union.

Employee association – mainly of of white collar or professional employees

Central Trade union Organisations:presently there are eight, important ones are:- All India Trade Union Congress (AITUC)- Indian National Trade Union Congress

(INTUC)- Bhartiya Mazdoor Sangh (BMS)- Centre of Indian Trade Union (CITU)

Characteristics of Trade Union

Association VoluntaryPermanentCollective actionSub system

Objectives of Trade Union

Wages and salariesWorking conditionsDisciplinePersonnel policiesWelfare Employer employee relationNegotiating machinerySafeguarding organisational health and interest of

the industry

Functions of TUProtectionProper standard of livingGrievance redressalCollective bargainingParticipationProtests EducationWelfare and recreationLegislation Representation Advicecommunication

Health - Chapter iii of the Factories Act 1948S- 11: cleannessS- 12: disposal of wastes and effluentsS- 13: ventilation and temperatureS- 14: dust and fumeS- 15: artificial humidificationS- 16: overcrowdingS- 17: lightingS- 18: drinking waterS- 19: latrines and urinalsS- 20: spittoons

Safety and health

Safety - Chapter iii of the Factories Act 1948S- 21: fencing of machineryS- 22: work on or near machinery in motionS- 23: employment of young persons on dangerous machinesS- 24 : striking gear and devices for cutting off powerS- 25: self acting machinesS- 26: casing of new machineryS- 27: prohibition of employment of women and children near

cotton openersS- 28: hoists and lifts

S- 29: lifting machines, chains, ropes and lifting tackles

S- 30: revolving machinery

S- 31: pressure plant

S- 32: floors, stairs and means of access

S- 33: pits, sumps opening in floors

S- 34: excessive weights

S- 35: protection of eyes

S- 36: protection against dangerous fumes and gases- portable electric lights

S- 37: explosives or inflamable dust, gas etc.

S-38: precaution in case of fire

S- 40: safety of building and machinery – maintenance of building

S- 40B: safety officers

Ethics is the discipline dealing with that which is good and bad and with moral duty and obligations. Business ethics refers to application of moral values, accepted character and behaviour by the contemporary business world to all business activites, dealings, offers, practices and such other issues. Ethics Influences various business activieties.

Business Ethics

Influence of business ethics

1. Business ethical policies and practices. Influence and shape the individual ethics, characters and behaviuor.

2. The ethical standards of the top management influences and shapes the decisional values and decision making styles of the middle and junior level managers.

3. The business ethics influences the conduct of various business operations including HRM operations/ functions.