Legal framework of IR-Main provisions of Labour Laws
Conceptual Framework of (IR)- Dunlop’s Model of IR
Legal Framework OF IR (Relationship between IR and LL)
Sound Labour Management Relations, Workers Participation in Management,, Grievance Redressal Machinery
Bargaining and Negotiating Skills
ILO Conventions-Constitution of ILO
Industrial Relations after Globalization- Labour standards and World Trade (WTO)
IR-Conceptual and Legal Framework
WHAT IS RELATIONSHIP, WHAT DOES IT DEAL WITH?
THE VEHICLE OF RELATIONSHIP IS COMMUNICATION
RELATIONSHIPS MAINLY DEALS WITH:
1. INTERESTS- LIKE WHAT SHOULD BE THE WAGE, OR WHAT SHOULD BE THE WAGE INCREASE/ PROMOTION POLICY- COLLECTIVE BARGAINING
2. RIGHTS-LIKE MINIMUM WAGE,WORKING HOURS-REGULATED BY LAW. THE DEFINED PART OF IR IS LABOUR LAWS.
What is IR
IR is relations between employer’s and employees, or their organizations about all aspects of employment.
Constitution of the International Labour Organization (ILO), established in 1919, an important organ of the United Nations (UN)
Has played a significant role in promoting international labour standards
India is a founding member of the ILO
General Assembly, Governing Body, ILO Office
Key Principles of ILO
Labour is not a commodity.
Freedom of expression and of association are essential to sustained progress.
Poverty anywhere constitutes a danger to prosperity everywhere.
All human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity.
Basic Labour Standards
Basic Human Rights at the Place of Work
Freedom of association, and right to organize (C 87/ 1848)
Collective Bargaining (C 98/ 1949)
Avoidance of Forced Labour (C 29/ 1930)
Right not to be discriminated against ( C 100/ 1951 and 111/ 1958)
Negotiations that take place between employers (or their organizations) and Employees (or their organizations) regarding all aspects relating to work ( terms and conditions of labour, relations between employers and workers)
Basic Human Right relating to Freedom of Association and Protection of the Right to Organize (ILO Convention No: 87 of 1948)
Basic Human Right to Organize Collective Bargaining (Convention no 98 of 1949
Bargaining and Negotiating Skills
Sound Preparation-Study and analysis of facts, issues, rights and interests involved.
Focus on interests
Try to secure a ‘Win-Win’ understanding
Focus on Common Interests first and then on Conflicting Interests
Consolidate the agreement reached on Common Interests, and use that agreement as a foundation for dealing with conflicting interests
What is Industry
All forms of economic activity, such as agriculture, manufacturing and services etc are being carried out with the cooperation of employers and employees.
Essential features of Industry
Any systematic activity
Organised by the cooperation between employer and employees
For producing and supplying material goods and services ( not spiritual, religious or celestial in nature)
Excluding sovereign functions of the State
Dunlop’s Model of IR
IR is a subsystem of society, overlapping with other subsystems involving :
Certain Processes, and
Certain Environmental Contexts
Rules for running the workplace (e.g.- ‘Standing Orders’)
Employers, or their Representatives-managers
Workers, or their organizations- Unions
Specialized Government or other agencies, created by the first two Actors, who are concerned with workers, enterprises and their relationships
Technology, and technology changes
Product and factor Markets and changes taking place in these markets, budgetary constraints
Locus and distribution of power in the society
Ideology is a set of ideas and beliefs commonly held by Actors. These ideas define the role and place of each actor and his attitude
Ideology-Approach- theoretical Perspectives
Trusteeship/ Gandhian-Business enterprises are Trustees of the interests of consumers, workers, shareholders and the community- Corporate Social Responsibility (CSR)
IDEOLOGIES & APPROACHES TO IR -THEORETICAL PERSECTIVES
Unitary -Dictatorial, Based on the view that it’s the Management’s prerogative to take decisions.
Pluralist -All interest groups have their say, and they need to be consulted to resolve conflict
Radical- Marxian perspective, profit motive, class conflict is inevitable. In this view Trade Unions are transformed into revolutionary organizations
Trusteeship -Mahatma Gandhi’s concept of industry being held in trust for the benefit of consumers, workers, share holders and the community.
OUTPUT OF IR-RULE MAKING
Unilateral-employer calling the shots
Rule making through Collective Bargaining (Bipartite)
Tripartite agreements, with Government as a party
Multipartite social codes, with consumers intervening, for instance-ISI, Green Energy Certifications, Egg Mark, Child Labour Free, Organic Food, avoiding plactic bags.
Rule making by a third party-arbitration/adjudication
Standing orders of the work place
Agreements, Collective Bargaining Settlements
Customs and traditions of the work place
Rules can be written, oral, or just practices
CONFLICT IN IR INEVITABLE
Managerial system-Supervision, work governance
Conflict of interest-higher wage eats into a potential higher profit.
Fundamental division between capital and labour class (class Divide)
MANIFESTATIONS OF CONFLICT
Low employee morale, high turn over, absenteeism
Leads to grievances, indiscipline
Strikes, work stoppages, work to rule, go slow etc.
Methods of Preventing Conflict (Disputes)
SOUND LABOUR MANGEMENT RELATIONS (SLMR)
1. An effective ‘Grievance Procedure’
2. Various forms of ‘Worker’s Participation in Management’
3. ‘Sound Labour Management’ practices involving: Communication, Consultation, Cooperation , participation and Partnership with workers
4. Collective Bargaining in good faith
Common Interests( Worker’s Participation in Management, Sound Labour Management practices)
Conflicting Interests ( Collective Bargaining, Various methods of resolving Industrial Disputes- conciliation, arbitration, adjudication, law making)
Conflict is inherent in ‘Industrial Relations’. There is no formula for sharing of profits between workers and employers. ‘Collective Bargaining’ is the globally accepted mode for working out agreed decisions relating to terms and conditions of employment, including profit sharing arrangements. Prevention and minimization of conflict and building up of harmony requires communication processes aimed at generating trust confidence and harmony. These processes include- communication, consultation, cooperation, participation, and partnership. These processes constitute elements of ‘Sound Labour Management Relations’. Some of the ‘Best practices’ in industrial relations are around these areas.These practices lead to employee bonding, engagement and retention. International Labour Organization’s (ILO’s) Recommendations No. 129 of 1967 ( Communication Within The Undertaking) 113 of 1960 ( Consultation -Industrial and National Levels), No. 94 of 1951 ( Cooperation at the Level of the Undertaking), and 130 of 1967(Examination of Grievances) deal with some of the internationally accepted principles relating to Sound Labour Management Relations.
BASIC CONCEPTS AND VALUES GOVERNING IR
Equity and fairness
Integrity, trust and transparency
Individualism vs. collectivism- collectivist basis may negate or limit individual freedom
Power and authority-the manner in which they are exercised may have implications on the rights and authorities of others
ATTRIBUTES OF A SOUND IR SYSTEM
Harmonizes economic growth with social justice and progress
Generates productive employment
Contributes to improvement in productivity
Improves the well being and quality of life of workers and their families
COLLABORATIVE/PARTNERSHIP MODEL OF IR
Basic ingredients include:
Consulting with each other on a regular basis
Bridging the gap between precept and practice
Management shifts from direction and control to consensus and commitment
Collaborative Collective Bargaining leads to win-win situation for both workers and management.
CHOICES IN IR
Coerce-only one side gets what it wants
Conflict-both sides spend energy in fighting, and only one side usually has a marginal gain
Compete-One party wins and the other looses
Compromise-No one gets what he wants
Co-opt/cooperate-the initiator may walk away with a larger slice of the cake
Collaborate-both parties work out options for mutual gain
Limitations of Dunlop Model
Consumers and community are also Actors, alongside, employers, workers and specialized government and other agencies concerned with enterprises and their relations
Dunlop’s model does not take into account processes connected with communication, consultation, cooperation, participation and partnership. These are processes which build harmony. They constitute ‘Sound Labour Management Relations’ practices. ‘Worker’s Participation in Management’, ‘Grievance Procedure’ etc. are some of the examples of such processes.
LABOUR FORCE PROFILE-2001 POPULATION >1 BILLION LABOR FORCE <400 MILLION ORGNISED/FORMAL SECTOR 7% UNORGANISED SECTOR 93% SELF EMPLOYED 55% REGULAR(SALARIED) WORK FORCE 13% CASUAL WORKFORCE 32% EMPLOYMENT IN GOVT./PUBLIC SECTOR >18 MILLION EMPLOYMENT IN PVT. SECTOR >9 MILLION UNION DENSITY 4% WORK FORCE COVERED BY COLLECTIVE BARGAINING 2%
SECTOR –WISE SHARE IN EMPLOYMENT-(%) Sector Share in employment-2000 Share in GDP-2000 Primary(Agriculture) 60.4 25 Secondary(Manufacturing) 16.8 26 Tertiary(services) 22.8 49 Total 100 100