implementation of labour law and collective bargaining

8/2/2019 Implementation of Labour Law and Collective Bargaining

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Implementation of Labour Laws

Unit 4


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Code of Discipline in Industry (June 1, 1958)

Government induced, self-imposed and mutual agreedvoluntary principles of discipline and relations, betweenthe Management and workers in industry. Providing for voluntary and mutual settlement of disputes.

Refrains from unilateral action Compels not to indulge in strikes and lockouts, without notice

and without exploring the avenues.

Constructive co-operation

Enjoins upon the Management to take prompt action

Any action against the spirit of the Code should be avoided. Government should rectify shortcomings in the machinery.

Employers required to recognise union.


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Criteria for Recognition of Trade Union

Where there are more than one union, should havebeen functioning for at least one year afterregistration.

Cover at least 15%of the workers, who had paid their

subscriptions for at least 3 months. Recognised as a representative union for an industry, if

it has 25% of the workers of that industry.

When recognized, no change in two years.

Where several unions largest membership should berecognized

Only unions, which observe Code of Discipline.


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Rights of Recognized unions under the

Code of Discipline

Freedom of speech and expression

Collective bargaining and collective actions

Conduct and functioning Miscellaneous rights


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Fostering Discipline in Industry

Ajust recognition by employers and workers

of the rights and responsibilities of either

party

A proper and willing discharge by either party

of its obligations consequent on such

recognition.


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To ensure better Discipline in Industry

The Management and Union(s)AgreeI. No unilateral action

II. Use existing machinery

III. No strike or lockout without notice

IV. No recourse to Coercion

Intimidation

Victimization

Go slow

The Management Role

The Union Role


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Employee Discipline and Positive

Discipline

Discipline is a procedure that corrects or

punishes the subordinate because a rule of

procedure has been violated.


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Common Symptoms of indiscipline

Absenteeism

Disobedience

Theft

Bribe

Damaging Smoking

Fighting

Gambling

Betting

Sleeping

Sexual harassment

Assault


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Objectives of disciplinary action

Enforce rules

Punish the offender

Serve as an example

Ensure the smooth running

Increase efficiency

Maintain peace

Improve relations and tolerance

Working culture


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Positive Discipline

Traditional or Legalistic Approach

Positive or HRD Approach

Holistic or Integrated Approach


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Disciplinary Action Process

Authorities are laid by the organisations

Disciplinary authority

Appellate authority Reviewing authority


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Standing Orders

The industrial employment (standing

orders)Act, 1946 , mandates for all employers

to formulate standing orders in conformity

with the model standing orders and to submit

them to the certifying officer for certification.

Obligatory on workmen to work in conformity

with certified standing orders


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Object of the Act

To require employers and employees to define the conditions

of work

To bring about uniformity in terms and conditions of

employment

To minimise industrial conflicts

To foster harmonious relations between employers and

employees.

To provide statutory sanctity and importance to standing

orders


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Scope and Application

Extends to the whole of India

To every establishment wherein 100 or more workmen are

employed

It applies to all the

skilled or unskilled,

manual,

supervisory,

technical,

clerical workers,

Including apprentices.


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Schedule

Matters to be contained in the Standing Orders Classification of the workmen : temporary, casual, apprentices

Manner of intimating to workmen

Shift working

Attendance and late coming

Conditions of, procedure in applying for, and the authority which may grantleave and holidays

Requirements to enter premises by certain gates and liability to search

Closing and reopening of sections of the establishments, temporarystoppages

Suspension or dismissal for misconduct

Acts and omissions which constitute misconduct


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Submission of Draft Standing Orders

Obligatory for employer to furnish 5 copies of the draftstanding orders

Copies to be given to the certifying officer

Draft has to enclose the prescribed particulars of theworkmen

The status and name of the trade unions to be given.


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Procedure for Certification of Standing Orders

Copy of draft standing orders to be sent to tradeunion/workmen

Opportunity of hearing to trade union/workmen to beprovided

Certification

Certified standing orders have the force of law and theviolation of any provision shall be taken action

Standing orders to be applicable to all present and futureworkmen

Standing orders must confirm the model standing order


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Conditions for certification of Standing Orders

Appeal Any employer, workman, trade union aggrieved by

the order of the certifying officer may, with in 30days

Date of Operation of the Act

On the expiry of 30 days of the certification Or

After 7 days of the decision of appellate authority.


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Penalty

Any employer fails to submit draft standing

orders or modifies it, shall be punishable with

fine which may extend to Rs. 5000.

In case of continuance of the above offence,

fine up to Rs.200 per every day.

Any contravention of Standing Orders is

punishable by Rs. 100 fine .


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Domestic Enquiry

A Domestic enquiry

internal hearing held by an employer to ascertain whetheran employee is guilty of misconduct.

Judicial Intervention Show Cause Letter

Suspension during of Pending Enquiry - might intimidate ortamper evidence.

Charge sheet duly signed by disciplinary.

- Subsistence allowance- during suspension as per rule 50 % for first 90 days 75 % for

remaining period


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Domestic Enquiry Proceedings

Read out and explain the chargesheet

Explain to the delinquent employee

Witness to be examined

Opportunity to cross-examine Managementswitnesses

Allow to produce his own witness

Signature with date of the charge-sheeted workman

Ex-parte Enquiry- where employee does not turn up,

ex-parte enquiry may be held. The Enquiry Report

Contd...


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Domestic Enquiry Proceedings

Final Decision of the Disciplinary Authority:a. Minor punishments

a. Warning or Censure

b. Fine

c. Withholding of increment

b. Major Punishments-a. Demotion

b. Discharge

c. Dismissal

Appeal Conclude

Representations of a legal practitioner


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Principles of Natural Justice

Operate where the law itself is silent.

Meaning and Implication - a person whose civil

rights are affected shall have Reasonable notice of the case,

Opportunity ofbeing heard,

Hearing by an impartial authority,

Must act in good faith. Opportunity to rebut an evidence

Proportionate punishment.


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Criminal proceedings on domestic

enquiry No Disciplinary proceedings with criminal proceedings are

on.

The report of the domestic inquiry consists of thefollowing:

The Charge (es). The facts of the case.

The concise summary of the companys case.

The concise summary of the employees case.

Points for determination in the inquiry. This must be clear and

specific. Mitigating factors, if any.

The findings by the panel.

Recommendation of the panel.


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Collective Bargaining


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Main features of collective bargaining

Collective Bargaining is a process in which theterms and conditions of employment aredetermined jointly by the employer and workers. It generally represents the workers side , who bargain.

Collective bargaining emanates from employmentrelationship.

For determination ofterms and conditions ofemployment

May be related to a number ofsubjective terms ofemployment.

Changeable and dynamic


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Steps in Collective bargaining

Presentation

Discussion

Signing of a formal agreement.


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Principles / Theories of Collective

Bargaining

Four sub processes

Walton and McKersie theory

Distributive bargaining - union and Management

goals are in conflict

Integrative Bargaining - not necessarily in conflict

Attitudinal Structuring - cultivate friendliness,

trust, respect and cooperation. Intra-Organisational Bargaining - interaction

between the union and Management.


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Bargaining Range Theory By AC Pigon

Labour and Management establish upper and lowerwage limits within which a final settlement is made.

Chamberlin Model: Focus upon the determinants of bargaining power.

Unions Bargaining Power (UBP) = Managements cost of disagreeing (MCD) / Managements

cost of agreeing (MCA) Managements Bargaining Power (MBP) =

Unions cost of disagreeing (UCD) / Unions cost of agreeing(UCA)


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Hicks Bargaining Model

Focuses on the length and costs of work

stoppages, balance the cost and benefits of a work

stoppage.


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Issues of Considerationi. Employment relationship

ii. Wagesiii. Fringe benefits

iv. Working conditions

v. Personnel matters.

Collective Agreements and theirImplementation

Three types of agreements:

i. Voluntary agreementsii. Settlements

iii. Consent award


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Forms of Collective Bargaining

Distributive bargaining /conjunctive bargaining

Integrative Bargaining / cooperative bargaining

Attitudinal Structuring

Intra-Organisational Bargaining

Productivity Bargaining demanding increasing productivity

Composite Bargaining - demanding increased work hours or

work load

Industry bargaining

Enterprise bargaining

Concession bargaining


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Process of Collective Bargaining

Coordinating preparations - gathering andanalyzing information

Selection of a team members

Reviewing previous negotiations Gathering data

Formulate proposals and priorities

Select a suitable site Organise the relevant information

Notify opponent of the intent.


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Strategy for Negotiation

Contending

Accommodating

Compromising

Avoiding

New Negotiating Style Dual Concerns ModelIt Focuses On Collaboration


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The Attitude of the Parties

Positive

Prepared to give away something

Observe and follow terms and conditions.

Collective Bargaining In INDIA

The Trade Dispute Act 1929

Bombay Industrial Relations Act 1946 Industrial Disputes Act 1947

Madhya Pradesh industrial Relation Act 1960


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Recent Trends In Collective Bargaining

The Issue Side

Emerging Approaches World Labour Report

of ILO (1997-98) mentions

Collective bargaining as becoming weak with the

state intervention playing a bigger role.

Collective bargaining has shifted from the region /

industry level to enterprise or even plant level.


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Emerging issues in collective bargaining

Performance based wage bargaining

Womens issue

Job security/ job insecurity

Productivity

Quality of work life

Managing change through collective bargaining.


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Collective bargaining agreements at

different levels

Plant level

Industry level

National level

Plant of Establishment Level

Local level

Region/area level Industry level

National level


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National commission on labour for

collective bargaining (1969)

Government intervention should be reduced Trade unions should be strengthened

Legal provisions fori. Compulsory recognition

ii. Prohibition and penalisationiii. Bargaining in good faith

iv. Conferring legal validity

Intensification of workers education

One union for one plant Government should declare its policy to allow and

encourage collective bargaining.

implementation of labour law and collective bargaining

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