LEGAL ASPECTS OF LEGAL ASPECTS OF WORKPLACE RELATIONSHIPWORKPLACE RELATIONSHIP

Law of the land influencing Labor relations(Labor Act/Rules, Trade Union Act/Rules, Arbitration act)Disciplinary measures & it’s impact.

What ?

A trade union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions.

The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with employers.

This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies.

Union-Management Relations …

Labor Union An organization of workers acting together to

negotiate their wages and working conditions with employers

Union-Management Relations The dealings between labor union and business

management, both in the bargaining process and beyond it

The Historical Development …The Historical Development …

Early history Craft union

Organization of skilled workers in a single craft or trade Limited to a single city.

Knights of Labor the largest and one of the most important American

labor organizations of the 1880s. promoted the social and cultural uplift of the

workingman, rejected socialism and radicalism, demanded the eight-hour day, and promoted the producers ethic of republicanism

In USA 1790Skilled Craftsman

In India 1850 (gained momentum after 1920)

Trade Union Act 1926

France, Germany 1870 onwards

In Nepal 1946 All Nepal Trade Union Congress

Evolution of contemporary labor organizations

Industrial Union An organization of both skilled and unskilled workers

in a single industry

Congress of Industrial Organizations (CIO) Formed by industrial unions

Historical Overview of Unions

Sources: U.S. Bureau of Labor Statistics, Dictionary of U.S. Labor Organizations, 1986–1987; www.aflcio.org; Statistical Abstract of the United States, 2001.

Trade Union Situation in Nepal

Until the latter half of 1980s, Nepali state remained hyperactive in the sphere of production, distribution, regulation, circulation and control.

In 1990, Nepal witnessed a change in the polity—from partilessness to multi-party, competitive election, provision of human rights, constitutional monarchy and sovereignty of people.

The Privatization Act 1991, New Industrial Policy 1992, Industrial Enterprises Act 1992, Foreign Investment and Technology Transfer Act 1992 were passed to liberate the economy from politics and society and make it competitive to participate in the opportunities offered by globalization.

Politics of Workers Welfare and Their Situation

In the 1990s there have been noticeable developments in the promulgation of acts. Labour Act 1992, Transportation Act 1992, Child Labour Act 1992, Trade Union Act 1993, Working Journalist Act 1994 and Labour Court Regulation Act 1995 have been promulgated.

A tripartite National Advisory Board was established in 1994.

Labour Relations Committees have been constituted and a Labour Court was established on January 15, 1996 to settle industrial disputes.

Origin of Trade Unions in Nepal

There were no trade unions in Nepal before 1945 as the country was under the family rule of Ranas.

Nepal had followed closed-door economy having

almost no relations with the outside world.

In 1946 All Nepal Trade Union Congress (ANTUC) was formed.

In 1947, Biratnagar Workers Union (BWU) was set up.

In March 1947 the first workers’ movement took place at Biratnagar for the establishment of democracy.

In 1951 ANTUC and BWU became united and formed the first trade union federation in Nepal.

The World Federation of Trade Unions (WFTU)

in 1953 granted membership to ANTUC.

After the democratic change of 1950, the freedom of association allowed the opportunities to many voluntary organizations in the country and the workers, too, felt the need to be united under one umbrella to fight against the exploitation of the management and the government.

Major Federations …

Nepal Trade Union Congress (NTUC) was established in 1947 with the objectives of promoting workers rights. Affiliated to Nepali Congress.

Democratic Confederation of Nepalese Trade Unions (DECONT) is established on May 1, 1997 after it broke away from NTUC.

General Federation of Nepalese Trade Unions (GEFONT) was established in July 20, 1989 with four founder federations: Nepal Independent Workers Union (NIWU), Independent Transport Workers’ Association of Nepal (ITWAN),Nepal Independent Workers’ Union (NIHWU) and Trekking Workers’ Association of Nepal (TWAN). It is affiliated to CPN-UML.

All Nepal Revolutionary Trade Union Federation affiliated to Maoist.

Process of Union Formation …

There are three tiers of Union.

At enterprise level, formation of union requires minimum of 10 persons. Not allowed to participate in more than one union.

At Trade Union Association level, 5000 members from 20 districts (not less than 100 person from each district) are required to form a union. Fifty-enterprise level union can form a National Level Union. Those outside enterprises, such as trade, commerce, self-employment or service sector can also form a union if they have 500 members and enter into agreement for this purpose.

At Federation level, 10 national level unions out of which 6 should be from organized sector can form Trade Union Federation.

Nepal & Core Labour Standards

Nepal became the member of International Labour Organization in 1966. Until now, it has ratified the following seven conventions:

Discrimination ( Employment and Occupation) convention No. 111

Equal Remuneration Convention no. 100 Minimum wage Fixation Convention No. 131 Weekly Rest convention No. 14 Tripartite Consultation Convention No. 144 Right to Organize and Collective Bargaining Convention

No. 98 and, Minimum Age Convention 138.

The Unionization Process …

Why some employees join unions

As a way to combat alienation and loss of personal identity from dull and repetitive jobs

Due to the perception that union membership increases job security

As a way of expressing dissatisfaction with one or more elements of the job

Due to personal background (family history of union membership)

As a requirement to keep a job under provisions of the labor contract between the union and the firm

Unionization process

Satisfaction

Employment / Psychological Contract

Unionization

Union Instrumentality

Dissatisfaction

Work Situation

Personality, Interest, Preferences

Attempt to Resolve Situation Individually

Influence of Management

Strategic Choices before Managers ..

Whether organization should be union free or allow unionization.

If decided for union free, take step to keep it away.

If unionization allowed, type of management union relationship should be decided.

Negotiation tactic should be decided.

Strategies for Remaining Union Free

Effective Supervisor

Effective Recruitment and

Selection

Effective Training and Development

Effective Remuneration

Open Communication

Healthy and Safe Working

Environment

Effective ERM

Effective Personnel Research

Planning Union Free

Union-Management Contract Issues

Employee pay Forms of pay

Direct compensation: wage or salary and benefits Deferred compensation: pension and retirement

Magnitude of pay Parity with local and national industry pay levels Real wage protection through cost-of-living clauses Financial condition of employer Cost-sharing for benefits

Employee pay (cont’d)

Pay determinants Management seeks to tie wages to each employee’s

productivity Unions feel this creates unnecessary competition and

usually suggest pay according to seniority Management seeks to constrain benefits to only some

employees Unions want equal application of benefits

Security

For the individual Job security: Protection against the loss of employment Seniority

Management rights

The firm wants to control whom it hires, how work is scheduled, how discipline is handled

Unions seek to control these matters Some union executives have been given seats on

corporate boards of directors

Union Security …

Closed Shop The company can hire only union members.

Union Shop The company can hire nonunion people but they must

join the union.

Agency Shop Employee who are not member of union must still pay

union dues.

Open Shop The workers decide whether to join union or not.

Labor Act …

Employment and Job securityWorking hoursRemuneration

Minimum wages Payment, Period,

Health and SafetyWelfare arrangementsConduct and PenaltiesSettlement of Labor disputes

Trade Union Act …

Registration of Trade union and Trade union Federation.

Operation, Management and Recognition of Trade union

Trade Union Merger