Labor laws
Ekta Chakrvarty
Assistant Professor, b.borooah college
Guwahati
In United States labour law, the term unfair la...
identify the witnesses who can support its charge; should it fail to do so the Regional Director
will typically dismiss th...
• The failure or refusal of an employer to reinstate or re-employ a former employee in terms of
any agreement
• An occupat...
WHEN TO REFER AN UNFAIR LABOUR PRACTICE DISPUTE
Section 191 states that the employee has 90 days from the date of the act ...
When the question of national interests is involved, the trade union movement is
always at the forefront in defending them...
brought down. Hence, downsizing manpower and increasing the workload of the
workers has become the main slogan of the indu...
LABOUR MARKET FLEXIBILITY
The Second National Labour Commission recommended changes in the labour laws
which practically i...
has reached one lakh crore rupees according to officials figures while many tax
defaulters are leaders of the employers’ o...
the leadership of Mahatma Gandhi who turned it into a satyagrah. These unions federated into
industrial union known as Tex...
Preventive Machinery of Industrial Disputes
Prevention is always better than cure. Preventive steps should, therefore, to ...
Every industrial undertaking employing 100 or more workers asu n d e r a n o b l i g a t i o n t o
s e t u p a w o r k s c...
Employee welfare, Apprenticeship scheme
Causes of failure of JMCs:Attitude of animosity, Crisis of confidence in elected r...
machine for the as a whole. in every industrial unit employing 500 and more
workers there should be a Joint Council for th...
C a r e f u l a d v a n c e p r e p a r a t i o n b y e m p l o y e r s a n d e m p l o ye e s a r e n e c e s s a r y
f o...
fear of reprisal. The Indian Labour Conference in 1958 evolved a code of discipline which
was ratified by the national tra...
To ensure proper implementation of the Code of Conduct, the Code of Discipline, Labour
laws, awards and agreements with a ...
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In united states labor law

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In united states labor law

  1. 1. Labor laws Ekta Chakrvarty Assistant Professor, b.borooah college Guwahati In United States labour law, the term unfair labour practice refers to certain actions taken by employers or unions that violate the National Labour Relations Act (NLRA) and other legislation. Such acts are investigated by the National Labour Relations Board (NLRB). Definition of "unfair labour practice" The NLRB has the authority to investigate and remedy unfair labour practices, which are defined in Section 8 of the Act. In broad terms, the NLRA makes it unlawful for an employer to: • interfere with two or more employees acting in concert to protect rights provided for in the Act, whether or not a union exists • to dominate or interfere with the formation or administration of a labour organization • to discriminate against employees for engaging in concerted or union activities or refraining from them • to discriminate against an employee for filing charges with the NLRB or taking part in any NLRB proceedings • to refuse to bargain with the union that is the lawful representative of its employees The Act similarly bars unions from: • restraining or coercing employees in the exercise of their rights or an employer in the choice of its bargaining representative • causing an employer to discriminate against an employee • refusing to bargain with the employer of the employees it represents • engaging in certain types of secondary boycotts • requiring excessive dues • engaging in featherbedding (requiring an employer to pay for unneeded workers) • picketing for recognition for more than thirty days without petitioning for an election • entering into "hot cargo" agreements (refusing to handle goods from an anti-union employer) • striking or picketing a health care establishment without giving the required notice Investigation and processing of the charge The General Counsel of the NLRB is responsible for investigating unfair labor practice charges and making the decision whether to issue a complaint. This job is delegated to the Regional Director of the region of the NLRB in which the charge has been filed; the Regional Director in turn assigns it to an employee of the region. It is the responsibility of the charging party to
  2. 2. identify the witnesses who can support its charge; should it fail to do so the Regional Director will typically dismiss the charge. Issuance of complaint and settlement If the Region finds merit in the charge it will file a formal complaint setting out the violations of the law allegedly committed by the respondent. While the Act requires that the original unfair labour practice be filed within six months, there is no comparable statute of limitations for issuance of a complaint. The complaint may also be amended in some circumstances to include other alleged violations of the Act not specified in an unfair labour practice charge The Board will set aside an informal settlement agreement if the employer violates the agreement or commits other violations of the Act after the agreement. The Board can, by contrast, enforce a formal settlement like any other Board order by petitioning the Court of Appeals for an order enforcing itThe Board will also accept non-Board settlements, in which the charging party withdraws its charge in return for promises from the other side. The Board is not, however, obliged to accept the parties' settlement agreement or to allow withdrawal of the charge. Interim injunctive relief If the General Counsel believes that there is cause to issue complaint, then he can seek injunctive relief from a federal district court under Section 10(j) of the Act. Injunctive relief is usually ordered when necessary to preserve the status quo pending the Board's decision on the complaint or to prevent employees from suffering irreparable harm. Any injunction lapses once the NLRB issues its decision Compliance If the Court of Appeals enforces the Board's order then the case will return to the Region for it to monitor the respondent's compliance. In those cases in which the Board's order requires payment of back pay, the Region will commence compliance proceedings if it is not able to resolve all disputes over the amount of back pay. These compliance proceedings are also held before an Administrative Law Judge, based on the compliance specification filed by the Region. The same procedural rights apply in these proceedings as in the earlier proceedings on the merits of the charge UNFAIR LABOUR PRACTICE WHAT IS AN UNFAIR LABOUR PRACTICE It is unfair treatment by an employer of an employee or job applicant. There are a limited number of unfair labour practices that the LRA defines, the types of treatment, which may constitute an unfair labour practice, are discussed hereunder. Section 185 of the LRA states that “every employee has the right not to be subjected to an unfair labour practice.” THE MEANING OF AN UNFAIR LABOUR PRACTICE An unfair labour practice means any unfair act or omission that arises between an employer and an employee, involving: • The unfair conduct of the employer relating to the promotion, demotion or training of an employee or relating to the provision of benefits to an employee • The unfair suspension of an employee or any other disciplinary action short of dismissal in respect of an employee
  3. 3. • The failure or refusal of an employer to reinstate or re-employ a former employee in terms of any agreement • An occupational detriment, other than dismissal, in contravention of the Protected Disclosures Act, 2000, on account of an employee having made a protected disclosure as defined in that Act. UNFAIR CONDUCT RELATING TO PROMOTION, DEMOTION, TRAINING OR BENEFITS This usually involves cases where the employer deviates from its own promotion or training policy or where the employee alleges that the promotion, demotion or training is in itself unfair. If it is alleged that the failure to promote is a result of discrimination, this dispute must be referred to the Employment Equity Commission as such a dispute (see information sheet: Discrimination). If all employees pass a test and all except one or a few are promoted, the employer may be guilty of unfair conduct against that / those employees. An example of unfair conduct based on benefits would be when all employees are given transport allowances, but one is discriminated Against and not given this allowance. This may constitute an unfair labour practice. An example of unfair conduct relating to training would be if all employees were given training but for one or two, for no apparent /fair reason (i.e. that they already have the skills); this may constitute an unfair labour practice. UNFAIR SANCTION OR DISCIPLINARY ACTION Usually an employee would refer a dispute relating to the unfairness of disciplinary measures taken, based on the merits of their innocence in the alleged wrongdoing. Suspension as a disciplinary sanction is the only instance where suspension can be unpaid. Whilst on suspension pending a disciplinary enquiry, an employee must be paid. Non-payment must be referred to the Department of Labour as a non-payment of salary dispute. It is not regarded as an unfair labour practice dispute as this definition relates only to benefits and not salary. A dispute regarding the unfair suspension may be referred as an unfair labour practice if the employee is on suspension for an unreasonably long period and where there is no plausible reason for the delay in finalising the enquiry. An example of unfair suspension would be where an employee and her supervisor argue and the employer suspends only the employee, even though it was the supervisor who was to blame. UNFAIR TREATMENT CREATING AN OCCUPATIONAL DETRIMENT FOR AN EMPLOYEE WHO MADE A PROTECTED DISCLOSURE If an employee makes a protected disclosure as set out in that Act e.g. makes a disclosure regarding the conduct of an employer as he/she has reason to believe that the information shows that the employer is committing a criminal offence, and is thereafter prejudiced for making such disclosure by being demoted, such conduct of the employer would constitute an unfair labour practice. DISPUTE ABOUT UNFAIR TREATMENT All the disputes about forms of unfair treatment may be referred firstly to conciliation conducted either by a bargaining council, and if there is no council, by the CCMA. If the dispute remains unresolved, it can be referred to arbitration.
  4. 4. WHEN TO REFER AN UNFAIR LABOUR PRACTICE DISPUTE Section 191 states that the employee has 90 days from the date of the act or omission which allegedly constitutes an unfair labour practice or, if it is a later date, within 90 days of the date which the employee became aware of the act occurrence. Victimisation (or victimization) is the process of being victimised or becoming a victim. Research that studies the process, rates, incidence, and prevalence of victimization falls under the body of victimology. Any of various acts by an employer or labour organization that violate a right or protection under applicable labour laws. Section 25T prohibits unfair labour practices by employer or a workman or a trade union. Fifth Schedule to the Industrial Disputes Act, 1947 provides a list as to what constitutes an "Unfair Labour Practice". Interfering in Trade Union Activities. Threatening workmen to refrain them from trade union activities. Establish employer sponsored trade union. Discourage trade union activities by various means. Discharge or dismiss by way of victimization or falsely implicating workmen. Abolish work of regular nature and to give that work to contractors. Mala fide transfer of work men under the guise of management policy. Employ badli or casuals and continue them for years. Acts of force and violence. Not implementing settlement/agreement/award. Refuse collective bargaining. Continue illegal lock-out. TRADE UNIONS AND ECONOMIC DEVELOPMENT (M K Pandhe) TRADE union movement in India is characterised today by several employers’ spokesmen and financial columnists as a hindrance in economic progress of the country. It is a wrong concept and this argument needs to be strongly repudiated. As a matter of fact the trade union movement believes that without faster economic development, the standard of living of the working class and the people of the country cannot be improved. Without accelerating economic growth, employment generation cannot be improved. What trade union movement is advocating in India is that mere economic growth does not lead to social advancement. Though India claims to be the second largest growing economy in the world, its record of human development is extremely below the mark. The United Nations’ Human Development Index ranks India at 127th position out of 175 in the list. The capitalists in India today do not take into account this aspect of economic development and trade unions today are fighting for the concept of economic growth with social justice. STRUGGLE FOR NATIONAL INTERESTS
  5. 5. When the question of national interests is involved, the trade union movement is always at the forefront in defending them. When GATT was signed in Morocco by the government of India, trade unions demonstrated before parliament since Indian interests were ignored. When all major capitalist countries, including the US, did not sign it, what was the hurry for India to sign it? Later on, Murasoli Maran, the late former commerce minister, admitted in parliament that the interest of India was not taken proper care of in GATT. However, the employers’ organisations in India remained silent. When advanced capitalist countries advocated linkage of labour standards (in the form of social clause) with international trade, the trade union movement in India strongly came forward to oppose it. And ultimately in a tripartite meeting, the government, employers’ organisations and trade unions unanimously opposed to link trade relations with labour standards since it was an attempt of the capitalists in advanced countries to restrict flow of goods from developing countries to developed countries. The trade union movement in India has opposed foreign direct investment in sectors where it destroys our jobs and industry, does not bring new technology but only comes to compete with our industries and take over Indian companies with a bid to control our economy. That is why TUs opposed induction of FDI in retail trade since they destroy our small traders. All this is being done only to protect India’s self reliant development. The World Bank and the IMF is keen to dismantle our public sector due to its significant contribution to make India self-reliant. The trade unions opposed all measures to kill our small-scale industry and traditional sector of economy which generates employment for the poor people of the country. According to us, it is possible to chalk out an independent path of economic development in the present situation. However, the big business houses want to collaborate with the MNCs for their own gains, without due care of the overall national interest. Hence it is totally incorrect to say that trade unions today are a hindrance to economic development of the country. FINANCIAL GLOBALISATION AGAINST COMMON PEOPLE The experience of the last 15 years of globalisation has not been properly reviewed in India. It might have given boost to Sensex but it has also increased the number of our farmers committing suicide. According to ILO, it has increased global inequality and poverty-levels in developing countries. The millennium objectives are not likely to be achieved even according to official reports. It has been noted that globalisation generated cut-throat competition in the world to bring down the cost of production. According to us it is the labour cost that is being
  6. 6. brought down. Hence, downsizing manpower and increasing the workload of the workers has become the main slogan of the industrial houses and even the government. It is hoped that as a result of this the working class and trade union movement will be marginalised. We have to protect the interests of the working class. Hence, the objective conditions for conflict are not created by the trade unions but by the employers. Therefore, mere raising of the question of strengthening and sustaining harmony cannot help without taking into consideration the objective realities of the situation. Dr Venkatratnam in his presentation criticised the concept of class struggle and wanted a middle path of progress. But the question is who is creating the conditions of class conflict? As the employers are trying to protect their class interests, the working class is also taking steps to protect its class interests. Under these circumstances the improvement of industrial relations is possible only if objective conditions for it are created. ATTACK ON TU RIGHTS Take the example of what happened in Gurgaon against Honda workers recently. The crime of the workers was that they only formed a union. They did not even submit a charter of demands. However, all the leaders were thrown out of jobs and when they protested, 700 workers were injured in brutal lathi charge. The previous speaker also mentioned about Ludhiana. In this case also, the unions which have completed all formalities of registration more than two years ago, were not granted registration due to the direct intervention of the state government at the instance of a leading industrialist. In Firozabad, UP, glass factory workers are forced to work 12 hours a day illegally but the state government refuses to implement the labour laws and resorted to lathi charge, firing and arrest of trade union leaders even under Goonda Act! In Special Economic Zones, Export Processing Zones and IT sector, labour laws are not implemented and the governments are openly conniving at the violation of the labour laws. The MNCs do not allow unions to be formed and raise industrial disputes often. Can you expect industrial harmony in such a situation? India has not ratified many core conventions of the ILO, including those relating to freedom of association and right of collective bargaining. If trade unions rights are properly protected, trade union movement can play an important role in economic development of India. What we oppose is a piece of graveyard. We only want establishment of proper industrial relations machinery to protect the interest of the workers in a developing economy. The conflict is coming only when the employers oppose this simple demand.
  7. 7. LABOUR MARKET FLEXIBILITY The Second National Labour Commission recommended changes in the labour laws which practically introduce a right of hire and fire of the employers and to freely engage contract labour in regular jobs at low wage rates. The MNCs have also demanded these changes in the name of labour market flexibility. I, however, want to ask you which labour laws are implemented effectively despite our having 55 central laws. Downsizing of manpower goes on unabatedly while contract labour is being engaged even in the prohibited categories all over the country with the union labour ministry behaving like a silent spectator. Despite the commitment given in the National Common Minimum Programme those trade unions will be consulted while making changes in labour laws, there has been no serious consultation with trade union. The government on the other hand is going ahead with changes in the labour laws, which are wholeheartedly welcomed by the employers’ organisations. Dr Venkatratnam had mentioned about union-free establishments. They became unionfree because workers are not allowed to form trade unions and a claim is being made that workers do not desire to form trade union due to good working conditions. As a matter of fact, if attempt to form a union is made, workers leaders are immediately thrown out of jobs and the government fails to protect such employees from victimisation. So much is talked today about workers involvement as equal partners in industry. But then why is the bill on workers participation in management kept pending in parliament for the last 15 years even though the decision to enact one was taken in a tripartite meeting? We are told by the government of India that employers’ organisations are opposed to it. An argument is advanced that in a globalised economy there is no scope for workers participation in management. Basically, the government of India has no political will to bring this bill. The employers however want to participate in the management of unions by forming pro-management unions. Can industrial relations improve under these circumstances? INDISCIPLINE OF EMPLOYERS Though employers’ organisations are frequently talking about indiscipline among the workers, they do not take action against indiscipline among the employers. Has any employers’ organisation, including CII, issued any circular to pay PF dues in time? The arrears have reached a whopping Rs1400 crore but no employer has been imprisoned despite legal provision. Non-payment of taxes by the corporate sector to government
  8. 8. has reached one lakh crore rupees according to officials figures while many tax defaulters are leaders of the employers’ organisations. The non-payment of bank loans leading to increase in so called non-performing assets (NPAs) of the banking industry has reached 1,30,000 crores which involves top-most industrialists in the country. The industrial houses do not speak against growing economic crimes in the countries involving leading business houses. The trade union movement should take steps to reduce the present multiplicity of trade unions so that united voice of the working class is powerfully raised. A strong trade union movement is an asset for a sustained growth of economic development and proper industrial relations. Trade Unionism In India The trade union movement in India is ready for a serious dialogue if the employers are prepared for development of a self-reliant economy for the country and working out proper norms of industrial relations so that economy can move faster and social standards are improved. Elimination of poverty and job losses through generation of more jobs can lead to social happiness, a goal for which the trade union movement in India is striving. The trade unionism in India developed quite slowly as compared to the western nations. Indian trade union movement can be divided into three phases. The first phase (1850 to1900) During this phase the inception of trade unions took place. During this period, the working and living conditions of the labor were poor and their working hours were long. Capitalists were only interested in their productivity and profitability. In addition, the wages were also low and general economic conditions were poor in industries. In order to regulate the working hours and other service conditions of the Indian textile labourers, the Indian Factories Act was enacted in 1881. As a result, employment of child labour was prohibited. The growth of trade union movement was slow in this phase and later on the Indian Factory Act of 1881 was amended in 1891. Many strikes took place in the two decades following 1880 in all industrial cities. These strikes taught workers to understand the power of united action even though there was no union in real terms. Small associations like Bombay Mill-Hands Association came up by this time. The second phase (1900 to 1946) This phase was characterized by the development of organized trade unions and political movements of the working class. Between 1918 and 1923, many unions came into existence in the country. At Ahmadabad, under the guidance of Mahatma Gandhi, occupational unions like spinners’ unions and weavers’ unions were formed. A strike was launched by these unions under
  9. 9. the leadership of Mahatma Gandhi who turned it into a satyagrah. These unions federated into industrial union known as Textile Labour Association in 1920.In 1920, the First National Trade union organization (The All India Trade Union Congress (AITUC)) was established. Many of the leaders of this organization were leaders of the national Movement. In 1926, Trade union law came up with the efforts of Mr. N N Joshi that became operative from 1927. During 1928, All India Trade Union Federation (AITUF) was formed. The third phase began with the emergence of independent India (in 1947). The partition of country affected the trade union movement particularly Bengal and Punjab. By 1949, four central trade union organizations were functioning in the country: The All India Trade Union Congress, The Indian National Trade Union Congress, The Hindu Mazdoor Sangh, and The United Trade Union Congress The working class movement was also politicized along the lines of political parties. For instance Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. The AITUC is the trade union arm of the Communist Party of India. Besides workers, white-collar employees, supervisors and managers are also organized by the trade unions, as for example in the Banking, Insurance and Petroleum industries. Trade unions in India the Indian workforce consists of 430 million workers, growing 2% annually. The Indian labour markets consist of three sectors: The rural workers, who constitute about 60 per cent of the workforce. Organized sector, which employs 8 per cent of workforce, and The urban informal sector (which includes the growing software industry and other services, not included in the formal sector) which constitutes the rest 32 per cent of the workforce. At present there are twelve Central Trade Union Organizations in India: All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS) Centre of Indian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC) National Front of Indian Trade Unions (NFITU) National Labour Organization (NLO) Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC) and United Trade Union Congress - Lenin Sarani (UTUC - LS) Machinery to solve id Various provisions incorporated in the act for preventing the disputes are as under; (a) Establishment of works committees, (b) Wage Boards, (c) process of collective bargaining, (d) Industrial truce resolution, (e) Standing orders, (f) Joint management councils, (g) Grievances procedures, (h) Codes of discipline and of efficiency (i) Suggestion system, (j) Voluntary arbitration. These all provisions are on voluntary basis and there is no compulsion on employing these measures. The main purpose of such measures is to prevent the disputes before they arise.
  10. 10. Preventive Machinery of Industrial Disputes Prevention is always better than cure. Preventive steps should, therefore, to be taken so that industrial disputes do not occur. The following measures can be taken to prevent disputes in industry. A. Code of conduct Each individual organism its code or may follow the code of discipline in industry formulated by the govt: and made applicable to industry and workers from June 1st 1958. It aims at preventing disputes through negotiations without the interference of an outside agency. Objectives To avoid work stoppages To maintain discipline in industry Eliminate all forms of coercion and violence in IR Secure settlement of disputes and grievances by negotiation, conciliation and arbitration. Promote constructive co-operation between the parties concerned at all levels. Improve motivation & communication Improve productivity and compensation of employees. A. Workers Participation in Management It is a method whereby the workers are allowed to be consulted and to have a say in t h e management of the unit. WPM is essentially the step promoting I n d u s t r i a l Democracy. It is the modern trend in the industrial world both developed and developing countries .WPM means sharing of profit and pain.“Applied to industry the concept of participation means sharing the decision - m a k i n g p o w e r b y t h e ranks of an industrial organization through their p r o p e r representatives at all appropriate levels of management, in the entire range of managerial actions.” Dr. V.G. Mehtras the important schemes of workers participation are:Joint Consultation Works committee Joint management council Shop council Joint council 1. Joint Consultation It is a process whereby employer consults the workers either directly o r t h r o u g h t h e i r r e p r e s e n t a t i v e s a n d s e e k s t h e i r o p i n i o n o n v a r i o u s i s s u e s w h i l e retaining to himself the right of taking final decisions. it is carried out th rough joint consultation committees consisting the representatives of both the employer and workers. 2. Work Committees
  11. 11. Every industrial undertaking employing 100 or more workers asu n d e r a n o b l i g a t i o n t o s e t u p a w o r k s c o m m i t t e e c o n s i s t i n g e q u a l n u m b e r o f representatives of employer and employees. The main purpose of such committees is t o p r o m o t e i n d u s t r i a l r e l a t i o n s . A c c o r d i n g t o I n d i a n L a b o u r C o n f e r e n c e w o r k committees are concerned with:Administration of welfare & fine funds. Educational and recreational activities. Safety and accident prevention Occupational diseases and protective equipment. Conditions of work such as ventilation, lightening, temperature & sanitation including latrines and urinals. A m e n i t i e s s u c h a s d r i n k i n g w a t e r c a n t e e n , d i n i n g r o o m s , m e d i c a l & health services. The following items are excluded from the preview of the work committees. 1 . W a g e s a n d a l l o w a n c e s 2 . P r o f i t s h a r i n g a n d b o n u s 3.Programs of planning and development 4 . R e t i r e m e n t b e n e f i t s 5 . P F a n d g r a t u i t y 6.Housing and transport schemes 7 . I n c e n t i v e s c h e m e s 8.Retirement and layoff LAYOFF Inability of the employer in certain conditions. it is a measure to cope up with the t e m p o r a r y i n a b i l i t y o f a n e m p l o ye e t o o f f e r e m p l o ym e n t t o a w o r k m a n t o k e e p t h e establishment as a going concern. 3. Joint Management Council J u s t t o m a k e a s t a r t i n l a b o u r p a r t i c i p a t i o n i n m a n a g e m e n t , t h e g o v t : suggested in its Industrial Resolution 1956 to set up joint management councils. It consists of equal numbers of workers and employers (minimum 6 & maximum 12)decisions of the JMC should be unanimous and should be implemented without any delay. JMC members should be given proper training. JMC should look after 3 main areas:1. Information sharing2.consultative3.administrative Representation of workers to the JMCs should be based on the nomination by the representation. Objectives Satisfy the psychological needs of workers Improve the welfare measures Increase workers efficiency Improve the relation and association between workers, managers and promoters. JMC deals with matters like:-
  12. 12. Employee welfare, Apprenticeship scheme Causes of failure of JMCs:Attitude of animosity, Crisis of confidence in elected representatives, Limited scope of JMC, Level of participation The performance of JMC is not satisfactory due to: The absence of representative unions made it difficult for the council to work smoothly. The leaders feel that the council would weaken their hold over workers Managers feel that it is very difficult to convince uneducated representatives of workers. Managers feel that with work committees and collective bargaining there is no need for this councils. 4. Shop Council S h o p c o u n c i l s h a v e b e e n e s t a b l i s h e d i n t h e m a n u f a c t u r i n g a n d m i n i n g industries employing 500 or more workers in private, public and joint sectors These councils assist the mgmt in achieving production targets, i m p r o v i n g p r o d u c t i o n , p r o d u c t i v i t y a n d e f f i c i e n c y, e l i m i n a t i n g w a s t a g e a n d i n a c h i e v i n g optimum utilization of machinery and manpower. Features All decisions of a shop council shall be on the basis of consensus and not by the basis of voting that either party may refer the unsettled matters of the joint council for consideration. There will be shop council for each department or one council for m o r e departments considering the number of workers employed. The number of members in the council may be decided by m a n a g e m e n t i n consultation with recognized unions. The total members may not generally exceed12. A shop council once formed shall function for a period of two years. It will meets frequently as possible at least once in a month. Each shop council shall consist of equal number of representatives of employers and employees. Every decisions of a shop council shall be implemented by the parties concerned within a period of one month, unless otherwise stated in the decision itself and compliance report shall be submitted to the council. FUNCTIONS 1. Assist management in achieving production targets. 2 . I d e n t i f y a r e a s o f l o w p r o d u c t i v i t y. 3 . I m p r o v e p r o d u c t i o n 4 . S u g g e s t h e a l t h y , s a f e t y, w e l f a r e m e a s u r e s . 5.Assist in maintaining general discipline in the shop or department.6 . P h ys i c a l c o n d i t i o n s o f w o r k e n v i r o n m e n t 5. Joint Councils are set up for the whole unit and deals with matters relating optimum production and efficiency and the fixation of productivity norms for man and
  13. 13. machine for the as a whole. in every industrial unit employing 500 and more workers there should be a Joint Council for the whole unit. Features Members of the council must be actually engaged in the unit. The chief executive of the unit will be the chairman of the council and v i c e chairman will be nominated by worker members. Term of the council will be two years. JC shall meet at once in a quarter. Decision of the council will be based on consensus and not on voting. FUNCTIONS 1.Optimum use of raw materials and quality of finished products 2 . O p t i m u m p r o d u c t i o n , e f f i c i e n c y a n d f u n c t i o n o f p r o d u c t i v i t y n o r m s o f man and machine as a whole.3.Preparation of schedules of working hours and of holidays.4 . A d e q u a t e f a c i l i t a t e s f o r t r a i n i n g . 5.Rewards for valuable and creative suggestions received from workers. A. Collective Bargaining Collective bargaining refers to "a process by which employers on the one hand and r e p r e s e n t a t i v e s o f t h e e m p l o ye e s o n t h e o t h e r , a t t e m p t t o a r r i v e a t a g r e e m e n t s covering the conditions under which employees will contribute and be compensated for their services “Michael. J. Jucius“It is the process in which the representatives of labour organization sand the representatives of business organization meet and attempt to n e g o t i a t e a c o n t r a c t o r a g r e e m e n t w h i c h s p e c i f i e s t h e n a t u r e o f t h e employer and employee union relationship.”Edwin Flippo The term collective bargaining typically refers to the negotiation, administration and interpretation of a written agreement between two or more people. OBJECTIVES Ensure the participation of Trade Unions in the industry Settle disputes relating to wages and working conditions. Protect the interests of the workers through collective action. Prevent unilateral actions on the part of employees. Conditions essential for successful collective bargaining Favourable political climate Freedom of association Willingness to give & take Problem solving attitude Availability of data Fair labour practices PROCESS OF COLLECTIVE BARGAINING 1. Preparation for negotiation
  14. 14. C a r e f u l a d v a n c e p r e p a r a t i o n b y e m p l o y e r s a n d e m p l o ye e s a r e n e c e s s a r y f o r negotiation. it is of two types: a ) From the management side. Prepare specific proposals for changes in the contract language. Determine the general size of the economic package of the c o m p a n y proposes to offer Prepare statistical displays and support for use in negotiations. b) From the employee side Attitudes and desires of the employees. Financial position of the company and its ability to pay. Attitude of management towards various issues as reflected in p a s t negotiations or inferred from negotiations in similar companies. 1. Identifying bargaining issues Wage related issues, supplementary economic benefits, administrative issues, institutional issues 2. Negotiating The negotiating phase begins with each side presenting its initial d e m a n d s . N e g o t i a t i o n g o e s o n f o r d a y s u n t i l t h e f i n a l a g r e e m e n t i s reached. The success of negotiation depends upon skills and abilities of negotiators. 3. Settlement and contract agreement Agreement can be made on a temporary basis. After an initial agreement has been made the two sides usually return to their respective constitu encies to determine whether they have informally agreed upon is acceptable. In such case before the expiry of both the parties consult each o t h e r a n d c a n t e r m i n a t e o r r e n e w t h e a g r e e m e n t d e p e n d i n g u p o n t h e circumstances. 4.Ratifying the agreement The union negotiating team explains and puts the agreement to the u n i o n m e m b e r s f o r t h e v o t e . i f v o t e d a g r e e m e n t i s f o r m a l i z e d i n t o a contract. it is important the contract must be clear and precise. 5.administration of the agreement Signing the agreement is not the end of the process rather it is the bargaining of the process. The agreement must be implemented according to the letter and spirit of the provisions of the agreement. Management is primarily responsible for implementing th e agreement, which must be communicated to all levels. Faulty implementation or violation of any provision leads to disputes. Environment Environmental factors include: Type of bargaining structure that exists between the union and the company. Type of union- management relationship which exists D. Grievance Redresal Procedure Grievances are symptoms of conflicts in the enterprise. So they should be handled very promptly and efficiently. It is a method by which an individual or group may express a complaint to an agency or institution alleged to be violating a particular rule and without
  15. 15. fear of reprisal. The Indian Labour Conference in 1958 evolved a code of discipline which was ratified by the national trade union and employers’ organizations. Under t h i s code, both the parties voluntarily agree to maintain and create an atmosphere of mutual trust and cooperation in the factory and to settle all t h e d i s p u t e s a n d g r i e v a n c e s b y m u t u a l n e g o t i a t i o n , c o n c i l i a t i o n a n d voluntarily arbitration and also avoid direct action. E. Tripartite Bodies Various bodies composed of the representatives of employers, e m p l o ye e s a n d t h e g o v e r n m e n t h a s b e e n s e t u p f o r c o n s u l t a t i o n a n d discussion on questions affecting labour. The Indian Labour conference, standing Labour commission, Wage Boards and Industrial Committees o p e r a t e a t t h e c e n t r a l l e v e l . A t t h e s t a t e level, State Labour Advisory B o a r d s h a v e b e e n s e t u p . A l l t h e s e b o d i e s p l a y a n i m p o r t a n t r o l e i n reaching at agreements on vari ous labour matters. The recommendations o f t h e s e b o d i e s a r e a d v i s o r y i n n a t u r e b u t c a r r y a g r e a t w e i g h t o n employers, trade unions and the government. All these bodies constitute the consultative machinery for the private sector. F. Standing Orders T o a v o i d f r i c t i o n s a m o n g s t e m p l o ye r s a n d w o r k m e n o v e r t h e t e r m s o f employment, Govt: enacted the Industrial Employment (Standing Orders) Act 1946. It r e f e r s t o t h e r u l e s a n d r e g u l a t i o n s w h i c h g o v e r n t h e c o n d i t i o n s o f e m p l o ym e n t o f w o r k e r s . I t a l s o s p e c i f i e s t h e d u t i e s a n d r e s p o n s i b i l i t i e s o f b o t h t h e e m p l o ye r a n d employees and regulates standards of their contacts. The main objective of this act is to p r e v e n t t h e d i s p u t e s a s s o o n a s i t ’ s a r i s e s b y f r a m i n g m o d e l r u l e s f o r m a i n t a i n i n g discipline and better relation. This Act applies to all establishments employing 100 or more workers. Under this act, each employer has to have their standing orders certified from the certifying officer to make them effective in the establishment. Labour Commissioner or Regional Labour Commissioner or any other officer appointed for this purpose may be certifying officer under the act. G. National Arbitration Promotion Board The Truce Resolution 1962 and the code of Discipline as evolved in 1958 recognized the principle of voluntary arbitration. I t w a s a g r e e d t h a t a n y d i s p u t e s w o u l d b e r e f e r r e d t o v o l u n t a r y a r b i t r a t i o n i f conciliation efforts fail. The govt: of India took note of the intension of both the industrial partners and set up the NAPB to promote voluntary arbitration to settle industrial disputes. the board comprises of the representatives of employers’ and employees’ organizations, Public Undertaking and the central and State Governments. The Board attempts to ensure that employers and workers take greater recourse to the voluntary approach to settle industrial disputes. H. The Implementation Machinery The Implementation and Evaluation Committee has been set up at the centre:-
  16. 16. To ensure proper implementation of the Code of Conduct, the Code of Discipline, Labour laws, awards and agreements with a view to reducing at source the main cause of industrial disputes. To take preventive action by settling disputes before they assume s e r i o u s proportions and deal with those that have defied settlement for a long time. To evaluate the impact of major strikes, lockouts and disputes and f i x t h e responsibility for them. To evaluate the working and implementation of important labour legislation, awards and policy decisions in order to assess the extent to w h i c h t h e s e h a v e produced the desired results and to suggest the measures that may be taken to effect improvement in them. The Central Organizations of workers and employers have set up machinery to screen cases of industrial disputes before they are taken to courts with a view to reducing l i t i g a t i o n . A s r e g a r d s t h e c a s e s w h i c h a r e a l r e a d y p e n d i n g b e f o r e t h e c o u r t s , t h e implementing machinery attempts out of court settlements by means of persuasion. I. National Arbitration Promotion Board The Truce Resolution 1962 and the code of Discipline as evolved in 1958 recognized t h e principle of voluntary arbitration. It was agreed that any disputes would b e referred to voluntary arbitration if conciliation efforts fail. The govt: of India took note of the intension of both the industrial partners and set up the NAPB to promote voluntary arbitration to settle industrial disputes.

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