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managing labor relations
- 1. Managing labour relation •Rashmi pathak • Suruchi jha • Nidhi bhardwaj • Zeba khan • Janak joshi
- 2. TOPICS COVERED UNDERPRESENTATION: 1. Defining Industrial Relation 2. Objectives and purpose 3. Approaches to industrial relation 4. Labor Acts 5. Process of Unionism 6. Collective Bargaining 7. Causes and Disputes 8. Methods of settlement of Disputes 9. Prevention of disputes
- 3. introduction Labour relation orindustrial relation as it known in Britain, is a interdisciplinary and somewhat diffuse study of institution and rule- fixing processes of the labour –market. Its core subject-matter has always been collective bargaining between trade unions or analogous organization of employees, on one hand, and employers and their associations on the other
- 4. Definitions given byauthor’s- According to R A Lester ‘involves attempts to have workable solutions between conflicting objectives and values , between incentive and economic security, between discipline and industrial democracy, between authority and freedom and between bargaining and cooperation’ According to Dale Yoder ‘a relationship between management and employees or among employees and their organizations that characterize and grow out of employment.
- 5. Defining Industrial relations. Institutionalbased relation. Industrial relations are the sum of institutional processes that establish and administer the rules regulating workplace relation Social-psychological definition Industrial relation are the sum of social psychological interactions between individuals Class-based definitions Industrials relations are the sum of institutional, interactions and processes that are a product of wider social and economic influences. In particular the class divisions of contemporary capitalism.
- 6. Objective or purposeof labour relations- • Industrial relations helps to safeguard interest of labour by securing highest level of mutual understanding. • To avoid industrial conflict and develop hormonal relation among worker and management. • To increase organization productivity by reducing absenteeism and turnover. • To establish and maintain the growth of industrial democracy by taking employees participation and providing them equal benefit.
- 7. • To reducewastage and increase efficiency in an organization. • To improve the image, growth and development of industries. • To maintain industrial peace and stability through collective bargaining. • To eliminate problem with industrial relation
- 8. INDUSTRIAL RELATIONS The relationsbetween management and workers in industry. "lifetime employment tends to contribute to better industrial relations"
- 9. Approaches to industrialrelations • Unitary approaches The unitary approaches to industrial relation is based on assumption that every one-be it employee, employer or government-benefit when emphasis is on common interest . Under unitary approaches, industrial relation is founded on mutual co-operation, team work, shared goal and so.
- 10. CRITICISM: Unitary approach iscriticized mainly on two ground. First, it is used as a tool for keeping employees at bay from unionism. Second, it is seen as exploitative and manipulative.
- 11. • Pluralistic approach Pluralisticapproaches is a departure from unitary approaches of industrial relation. This approaches is evolved and practiced in mid 1960s and early1970s in England. The approach perceives that organization is a coalition of competing interest groups mediated by the management. At times, it may so happen that management in its mediating role may pay insufficient attention to the needs and claims of employees. In such a situation, employees may unite in the form of trade unions to protect their needs and claims.as a result, trade unions become the legitimate representatives of employees in an organization.
- 12. • Marxist approach Likepluralists, Marxists also view conflict between labor and management inevitable. But Marists unlike pluralists, regard conflict as a product of the capitalists society based on classes. According to Marxists conflict arises because of division within society in terms of haves.
- 13. The main objectivesof capitalists has been to improve productivity by paying minimum wages to labor. Labor views this as their exploitation by the capitalists . The Marxist do not welcome state intervention as, in their view, it usually supports management’s interest. Therefore. The labor-capital conflict, according to Marxist approaches, cannot be solved by bargaining, participation and cooperation.
- 14. ACTS RELATED: Racketeeringinfluenced and Corrupt Organizations Act (RICO) of 1978 Although this act has far-reaching tentacles, the Racketeering influenced and Corrupt Organizations Act (RICO) serves a vital purpose in labor relations RICO’s primary emphasis with respect to labor unions is to eliminate any influentation of RICO if “payments or loans are made to employee representatives, labor organizations, or officers and employees of labor organizations, where such action occurs in the form of “bribery, kickbacks, or extortion.” Over the past decade, RICO has been used to oust a number of labor officials in the teamsters union who were alleged to have organised crime ties.
- 15. Civil ServiceReform Act of 1978 Title VII, of the Civil Service Reform Act, established the federal labor relation authority (FLRA) as an independent agency within the executive branch to carry out the major function previously performed by the FLRC.
- 16. THE TAFT-HARTLEY ACT Themajor purpose of the Taft-Hartley Act was to amend the Wagner Act by addressing employer’s concern in terms of specifying unfair union labours. The WAGNER ACT The national labor relation Act of 1934, commonly referred to as the Wagner Act, is the basic “bill of rights” for unions. This law guarantees workers the right to organize and join unions, to bargain collectively, and to act in concert to pursue their objectives.
- 17. PROCESS OF UNIONISM 1.Unionization 2. Disputes/conflict 3. Collective bargaining 4. Contract settlement 5. Contract administration
- 18. UNIONIZATION It refersto union of workers working in an organization in an organization .the process of industrial relationship begin with formal and legal relationship of labor union. Such labor union must be dully accepted by organization.
- 19. DISPUTES/CONFLICT Disputes andconflict are between worker and management over industrial matter. The issues which leads to conflict between worker and management is mostly due to interest,rights,and welfare of workers. managerial and economic might major causes of disputes in an industries for ex compensation system working condition etc.
- 20. COLLECTIVE BARGAINING Itrefers to negotition,aggrement between two parties which leads to comprised situation among them. Under this situation among them. Under this both management and union negotiate with each other, face to face and put their list of demand collective bargaining is an essential effect to resolve conflicts and disputes in an industries
- 21. CONTRACT SETTLEMENT Thedecision which are taken in collective bargaining procedure is converted into written agreement between management and labor union. Such contract are dully accepted by both the parties.
- 22. CONTRACT ADMINISTRATION Itis last step in process of unionism. it is process of bearing responsibility as the part of management. Under this management communicate the contract to each and every member who are related with industries under this they continually monitor the activities of worker during contract period.
- 23. Collective bargaining it refersto negotiation, admiration and interpretation of time bound written agreement between two parties. It helps in settling disputes and solving conflict situation in an organization. It leads to democratic leadership and participative style of management in an organization. It defines employers and employees relationship on the job through collective agreement.
- 24. Collective bargaining procedure 1.Presenting demand 2. Reduction of demand 3. Formation of committee 4. Informal settlement of demand 5. Signing a formal contract
- 25. • PRESENTING DEMAND Inthis step representative of employees and employers dully present their demand the list of employees demand is forwarded by labor union. Whereas the list of employees is forwarded by management In this step both the parties generally reduces their demand . Both the parties trade off some of their discussion take place before reducing a demand • Reduction of demand
- 26. • FORMATION OFSUBCOMMITTEE Under this step sub-committee is formed in order to solve problem, If the demand are short and simple. The work of sub- committee becomes easier and vice-versa. such committee duly analysis causes and consequences and try to work out in order to solve problem by help of reasonable alternative • informal settlement of demand In this step both the parties tries informally in settlement their demand. union representative dully concern with their union member and management informally concern with their employers and owner
- 27. • SIGNING AFORMAL CONTRACT It is the last step involve in collective bargaining process. In this both the parties goes through signing a formal contract, after reaching this step both the parties dully forget past event and look for proper implementation of an agreement
- 28. Disputes. disputes are commonwhich generally arises between employers and employees over certain matter and issues. Such disputes are related to right and interest of worker. Labor disputes can be either individual or collective, disputes can be between (employers , workers),(employees ,employers) (employers government). Such disputes can be either positive or negative from organization point of view. Labor disputes mainly affect organization activities and leads to loss in productive decreases moral of employees and leads to winding up an organization.
- 29. Industrial disputes An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment. It is a disagreement between an employer and employees representative; usually a trade union, over pay and other working conditions and can result in industrial actions. Industrial disputes or differences in an industry occur owing to factors which are essential economic in nature. However, as exhibited by the recent trends, industrial disputes occur due to non-economic causes also. These mainly include psychological , managerial and political causes.
- 30. From thepoint of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production. This results in increase in the average cost of production since fixed expenses continue to be incurred. It also leads to a fall in sales and the rate of turnover, leading to a fall in profits. The employer may also be liable to compensate his customers with whom he may have contracted for regular supply. For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical consequences of forced idleness. The threat of loss of employment in case of failure to settle the dispute.
- 31. Causes of disputes Economic causes Managerial causes Politicalcauses • Compensation • Employment condition • Bonus • Industrial sickness • Lack of consultation • Disciplinary action • Lack of communication • Political interference • Union rivalry • Multi-labour law
- 32. Economic causes: itrelates with economic factor . It relates with compensation, bonus, employment condition and industrial sickness. • compensation: It is the most important causes for disputes in an organization. It relates with payment benefit and services. Increase in demand of worker related to their compensation leads to conflicts in an organization. • Employment condition: • different terms and condition used in employment results disputes in an organization. The demand for improvement in working conditions such as lesser working hours, security of job, better safety measures in the factory, leave, canteen, gratuity facilities, etc., are also responsible for many industrial disputes.
- 33. Bonus: Lack ofbonus facility insufficient bonuses to the worker generally leads to disputes situation in an organization. The workers feel that they should have a greater share in the profits of the industrial concern. Non-acceptance of this fact by the employers has been a source of friction among the employers and the workers.
- 34. Industrial sickness: The Reserve Bank of India has defined a sick unit as one “which has incurred a cash loss for one year and is likely to continue incurring losses for the current year as well as in the following year. the causes of industrial sickness are broadly classified into two categories: (i) External causes/Exogenous causes, and (ii) Internal causes/Endogenous causes.
- 35. External causes:The external or exogenous factors which are beyond the control of a industry usually affect the industry-group as a whole. Some external factors are- General recessionary trend High prices of inputs Non availability of raw materials Changes in govt. policies Internal causes: Internal or endogenous causes are those which are within the control of the unit. These causes arise due to some internal deficiencies in various functional areas like finance, production, marketing and personnel. Some causes are-
- 36. Project appraisaldeficiencies Industrial unrest and lack of employee motivation Marketing problems Wrong location
- 37. Managerial causes Theyare the results of dealing of employees with workers in an organization • Lack of consultation Lack of consultation by employers with union in case of employees retirement transfer promotion, training and development generally leads to disputes in an organization • Disciplinary action Disciplinary action relating with employees attendance, job behavior, dishonesty and eternal activities results into disputes situation. Management’s threat of use of coercion in exercising the rights of workers to organize themselves in the form of union as per the legal provisions. • Lack of communication Unwillingness of management and employer to talk with union result into conflict situation in an organization. Its unwillingness to talk over any dispute with the employees even when trade unions want it to do so.
- 38. Political causes itbasically relates with political factor such as political interference, union rivalry and multi-labor law. • Political interference Undue interference from political parties results into disputes situation as labor union are associated with different parties. Affiliation of the trade unions with a political party, where the latter may instigate the trade unions to conduct strikes, lockouts etc. • Union rivalry Inter union rivalry among labor union over ideologies results into disputes situation. • Multi-labor law Multi-labor law related to labor welfare creates the situation of conflicts. Confusion which duly causes disputes in an organization
- 39. Psychological Forces Everyone hashis/her own psychological feelings, attitudes and beliefs. This difference in beliefs and psychological aspects of individuals may bring some labor disputes in the organization. Some of the psychological causes are: - Motivation - Appreciation - Authority and responsibility - Unfair treatment
- 40. Method of settlementof disputes Unilateral decision Joint decision Third party decision Grievance procedure Collective bargaining • Conciliation • Mediator • adjudication
- 41. Unilateral decision • Grievanceprocedure- Grievance procedure is systematic tool which is duly undertaken to handle employees complain. It is the process through which employees carry their complain to management in an organization. Under grievance complain are duly address and effective solution are taken out to sole disputes .collective bargaining duly taken grievance procedure. It is time consumption complain move in upwards direction from lower level management to upper management.
- 42. Joint decision Collectivebargaining: it is the process of negotiation, administration and interpretation of time bound agreement between labor and management in order to settle disputes . Under this method the representative of both labor and management sit together discuss in order to settle disputes. It is democratic way of expressing view, idea, opinion. collective bargaining helps in providing satisfaction to both the parties
- 43. Third party decision Conciliation method It is process in which third party play an important role in settling disputes. Settlement of disputes mainly depends on agreement of both the parties . Under this third parties doesn’t give any verdict but pursued or convince both the parties which helps in solving the disputes. Mediator Under this method a mediator plays a vital role in settling of disputes in an organization. Under this method the third party duly submit proposal for settling of disputes. Such proposal can be either except or reject by both the parties. The mediator should be fair and unbiased while soling the disputes.
- 44. Adjudication method Itis process of settling disputes by the help of court of law. Such disputes can be settle either by ordinary or labor court . The verdict of law is liable to both the parties. It is time consuming and costly process. The verdict of law can be appeal in higher court.
- 45. Prevention of disputes Disputesbetween worker and employer can be reduce by undertaking certain effective technic. Prevention of disputes helps in bringing effective industrial relation in order to prevent disputes management must carefully study to avoid disputes.
- 46. • Open communication. Itgenerally refers to free flow of information. Such communication should be simple and clear so it helps in avoiding situation of conflict . Two way face to face communication helps in knowing problem and helps in settling it in effective manner. • Equity The employer must duly establish equity in terms and condition of employees .equity helps in minimizing disputes in an organization.
- 47. • Counseling Management shouldundertake counseling season in order to avoid labor disputes .management should duly make arrangement of training and counseling in order to prevent labor disputes in an organization. • Collective bargaining Under this both the parties enter into written contract for specific period in relation to working condition, compensation, packages, employment terms and condition. Such collective bargaining helps in gaining commitment from employees
- 48. • Participation Management mustduly participate the employees while making decision which are related with them. While participating employees clear information must be provided to employees over matter of discussion, employees participation helps in preventing disputes in an organization.