IRLL-Course Objective <ul><li>Concept of IR, Approaches to IR, Institutions </li></ul><ul><li>Collective Bargaining </li><...
Module-I <ul><li>Conceptual Framework of (IR)- Dunlop’s Model of IR </li></ul><ul><li>Legal Framework OF IR (Relationship ...
IR-Conceptual and Legal Framework <ul><li>WHAT IS RELATIONSHIP, WHAT DOES IT DEAL WITH? </li></ul><ul><li>THE VEHICLE OF R...
What is IR <ul><li>IR is relations between employer’s and employees, or their organizations about all aspects of employmen...
ILO <ul><li>Constitution of the International Labour Organization (ILO), established in 1919, an important organ of the Un...
Key Principles of ILO <ul><li>Labour is not a commodity. </li></ul><ul><li>Freedom of expression and of association are es...
Basic Labour Standards <ul><li>Basic Human Rights at the Place of Work </li></ul><ul><li>Freedom of association, and right...
Collective Bargaining <ul><li>Negotiations that take place between  employers (or their organizations) and Employees (or t...
Bargaining and Negotiating Skills <ul><li>Sound Preparation-Study and analysis of facts, issues, rights and interests invo...
What is Industry <ul><li>All forms of economic activity, such as agriculture, manufacturing and services etc are being car...
Essential features of Industry <ul><li>Any systematic activity </li></ul><ul><li>Organised by the cooperation between empl...
Dunlop’s Model of IR <ul><li>IR is a subsystem of society, overlapping with other subsystems involving : </li></ul><ul><li...
Inputs <ul><li>Certain Actors </li></ul><ul><li>Certain Environmental Contexts </li></ul><ul><li>Certain Ideology </li></ul>
Processes <ul><li>Collective Bargaining </li></ul><ul><li>Conciliation </li></ul><ul><li>Arbitration </li></ul><ul><li>Adj...
Outputs <ul><li>Rules for running the workplace (e.g.- ‘Standing Orders’) </li></ul>
Inputs-Actors <ul><li>Employers, or their Representatives-managers </li></ul><ul><li>Workers, or their organizations- Unio...
Inputs-Environmental Contexts <ul><li>Technology, and technology changes </li></ul><ul><li>Product and factor Markets and ...
Inputs-Ideology <ul><li>Ideology is a set of ideas and beliefs commonly held by Actors. These ideas define the role and pl...
Ideology-Approach- theoretical Perspectives <ul><li>Unitary </li></ul><ul><li>Pluralist/ Democratic </li></ul><ul><li>Radi...
IDEOLOGIES & APPROACHES TO IR -THEORETICAL PERSECTIVES <ul><li>Unitary -Dictatorial, Based on the view that it’s the Manag...
OUTPUT OF IR-RULE MAKING   <ul><li>Unilateral-employer calling the shots </li></ul><ul><li>Rule making through Collective ...
Rules-Some Examples <ul><li>Standing orders of the work place </li></ul><ul><li>Agreements, Collective Bargaining Settleme...
CONFLICT IN IR  INEVITABLE <ul><li>Due to: </li></ul><ul><li>Wage-work bargain </li></ul><ul><li>Managerial system-Supervi...
MANIFESTATIONS OF CONFLICT <ul><li>Low employee morale, high turn over, absenteeism </li></ul><ul><li>Leads to grievances,...
Methods of Preventing Conflict (Disputes) <ul><li>SOUND LABOUR MANGEMENT RELATIONS (SLMR) </li></ul><ul><li>1. An effectiv...
SLMR-Practices <ul><li>Common Interests( Worker’s Participation in Management, Sound Labour Management  practices) </li></...
SLMR-ILO RECOMMENDATIONS <ul><li>Conflict is inherent in ‘Industrial Relations’. There is no formula for sharing of profit...
BASIC CONCEPTS AND VALUES GOVERNING IR <ul><li>Equity and fairness </li></ul><ul><li>Integrity, trust and transparency </l...
ATTRIBUTES OF A SOUND IR SYSTEM <ul><li>Harmonizes economic growth with social justice and progress </li></ul><ul><li>Gene...
COLLABORATIVE/PARTNERSHIP MODEL OF IR <ul><li>Basic ingredients include: </li></ul><ul><li>Sharing information </li></ul><...
CHOICES IN IR <ul><li>Coerce-only one side gets what it wants </li></ul><ul><li>Conflict-both sides spend energy in fighti...
Limitations of Dunlop Model <ul><li>Consumers and community are also Actors, alongside, employers, workers and specialized...
LABOUR FORCE PROFILE-2001 POPULATION >1 BILLION LABOR FORCE <400 MILLION ORGNISED/FORMAL SECTOR 7% UNORGANISED SECTOR 93% ...
SECTOR –WISE SHARE IN EMPLOYMENT-(%) Sector Share in employment-2000 Share in GDP-2000 Primary(Agriculture) 60.4 25 Second...
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M1

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  1. 1. IRLL-Course Objective <ul><li>Concept of IR, Approaches to IR, Institutions </li></ul><ul><li>Collective Bargaining </li></ul><ul><li>Negotiating Collective Agreements-Reaching (Drafting) Settlements </li></ul><ul><li>Dealing with Unions </li></ul><ul><li>Sound Labour Management Relations </li></ul><ul><li>Legal framework of IR-Main provisions of Labour Laws </li></ul>
  2. 2. Module-I <ul><li>Conceptual Framework of (IR)- Dunlop’s Model of IR </li></ul><ul><li>Legal Framework OF IR (Relationship between IR and LL) </li></ul><ul><li>Sound Labour Management Relations, Workers Participation in Management,, Grievance Redressal Machinery </li></ul><ul><li>Collective Bargaining </li></ul><ul><li>Bargaining and Negotiating Skills </li></ul><ul><li>ILO Conventions-Constitution of ILO </li></ul><ul><li>Industrial Relations after Globalization- Labour standards and World Trade (WTO) </li></ul>
  3. 3. IR-Conceptual and Legal Framework <ul><li>WHAT IS RELATIONSHIP, WHAT DOES IT DEAL WITH? </li></ul><ul><li>THE VEHICLE OF RELATIONSHIP IS COMMUNICATION </li></ul><ul><li>RELATIONSHIPS MAINLY DEALS WITH: </li></ul><ul><li>1. INTERESTS- LIKE WHAT SHOULD BE THE WAGE, OR WHAT SHOULD BE THE WAGE INCREASE/ PROMOTION POLICY- COLLECTIVE BARGAINING </li></ul><ul><li>2. RIGHTS-LIKE MINIMUM WAGE,WORKING HOURS-REGULATED BY LAW. THE DEFINED PART OF IR IS LABOUR LAWS. </li></ul>
  4. 4. What is IR <ul><li>IR is relations between employer’s and employees, or their organizations about all aspects of employment. </li></ul>
  5. 5. ILO <ul><li>Constitution of the International Labour Organization (ILO), established in 1919, an important organ of the United Nations (UN) </li></ul><ul><li>Has played a significant role in promoting international labour standards </li></ul><ul><li>India is a founding member of the ILO </li></ul><ul><li>General Assembly, Governing Body, ILO Office </li></ul>
  6. 6. Key Principles of ILO <ul><li>Labour is not a commodity. </li></ul><ul><li>Freedom of expression and of association are essential to sustained progress. </li></ul><ul><li>Poverty anywhere constitutes a danger to prosperity everywhere. </li></ul><ul><li>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. </li></ul>
  7. 7. Basic Labour Standards <ul><li>Basic Human Rights at the Place of Work </li></ul><ul><li>Freedom of association, and right to organize (C 87/ 1848) </li></ul><ul><li>Collective Bargaining (C 98/ 1949) </li></ul><ul><li>Avoidance of Forced Labour (C 29/ 1930) </li></ul><ul><li>Right not to be discriminated against ( C 100/ 1951 and 111/ 1958) </li></ul>
  8. 8. Collective Bargaining <ul><li>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) </li></ul><ul><li>Basic Human Right relating to Freedom of Association and Protection of the Right to Organize (ILO Convention No: 87 of 1948) </li></ul><ul><li>Basic Human Right to Organize Collective Bargaining (Convention no 98 of 1949 </li></ul>
  9. 9. Bargaining and Negotiating Skills <ul><li>Sound Preparation-Study and analysis of facts, issues, rights and interests involved. </li></ul><ul><li>Focus on interests </li></ul><ul><li>Try to secure a ‘Win-Win’ understanding </li></ul><ul><li>Focus on Common Interests first and then on Conflicting Interests </li></ul><ul><li>Consolidate the agreement reached on Common Interests, and use that agreement as a foundation for dealing with conflicting interests </li></ul>
  10. 10. What is Industry <ul><li>All forms of economic activity, such as agriculture, manufacturing and services etc are being carried out with the cooperation of employers and employees. </li></ul>
  11. 11. Essential features of Industry <ul><li>Any systematic activity </li></ul><ul><li>Organised by the cooperation between employer and employees </li></ul><ul><li>For producing and supplying material goods and services ( not spiritual, religious or celestial in nature) </li></ul><ul><li>Excluding sovereign functions of the State </li></ul>
  12. 12. Dunlop’s Model of IR <ul><li>IR is a subsystem of society, overlapping with other subsystems involving : </li></ul><ul><li>Certain Inputs </li></ul><ul><li>Certain Processes, and </li></ul><ul><li>Certain Outputs </li></ul>
  13. 13. Inputs <ul><li>Certain Actors </li></ul><ul><li>Certain Environmental Contexts </li></ul><ul><li>Certain Ideology </li></ul>
  14. 14. Processes <ul><li>Collective Bargaining </li></ul><ul><li>Conciliation </li></ul><ul><li>Arbitration </li></ul><ul><li>Adjudication </li></ul><ul><li>Lawmaking </li></ul>
  15. 15. Outputs <ul><li>Rules for running the workplace (e.g.- ‘Standing Orders’) </li></ul>
  16. 16. Inputs-Actors <ul><li>Employers, or their Representatives-managers </li></ul><ul><li>Workers, or their organizations- Unions </li></ul><ul><li>Specialized Government or other agencies, created by the first two Actors, who are concerned with workers, enterprises and their relationships </li></ul>
  17. 17. Inputs-Environmental Contexts <ul><li>Technology, and technology changes </li></ul><ul><li>Product and factor Markets and changes taking place in these markets, budgetary constraints </li></ul><ul><li>Locus and distribution of power in the society </li></ul>
  18. 18. Inputs-Ideology <ul><li>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 </li></ul>
  19. 19. Ideology-Approach- theoretical Perspectives <ul><li>Unitary </li></ul><ul><li>Pluralist/ Democratic </li></ul><ul><li>Radical/ communist </li></ul><ul><li>Trusteeship/ Gandhian-Business enterprises are Trustees of the interests of consumers, workers, shareholders and the community- Corporate Social Responsibility (CSR) </li></ul>
  20. 20. IDEOLOGIES & APPROACHES TO IR -THEORETICAL PERSECTIVES <ul><li>Unitary -Dictatorial, Based on the view that it’s the Management’s prerogative to take decisions. </li></ul><ul><li>Pluralist -All interest groups have their say, and they need to be consulted to resolve conflict </li></ul><ul><li>Radical- Marxian perspective, profit motive, class conflict is inevitable. In this view Trade Unions are transformed into revolutionary organizations </li></ul><ul><li>Trusteeship -Mahatma Gandhi’s concept of industry being held in trust for the benefit of consumers, workers, share holders and the community. </li></ul>
  21. 21. OUTPUT OF IR-RULE MAKING <ul><li>Unilateral-employer calling the shots </li></ul><ul><li>Rule making through Collective Bargaining (Bipartite) </li></ul><ul><li>Tripartite agreements, with Government as a party </li></ul><ul><li>Multipartite social codes, with consumers intervening, for instance-ISI, Green Energy Certifications, Egg Mark, Child Labour Free, Organic Food, avoiding plactic bags. </li></ul><ul><li>Rule making by a third party-arbitration/adjudication </li></ul><ul><li>Law making </li></ul>
  22. 22. Rules-Some Examples <ul><li>Standing orders of the work place </li></ul><ul><li>Agreements, Collective Bargaining Settlements </li></ul><ul><li>Awards </li></ul><ul><li>Customs and traditions of the work place </li></ul><ul><li>Rules can be written, oral, or just practices </li></ul>
  23. 23. CONFLICT IN IR INEVITABLE <ul><li>Due to: </li></ul><ul><li>Wage-work bargain </li></ul><ul><li>Managerial system-Supervision, work governance </li></ul><ul><li>Conflict of interest-higher wage eats into a potential higher profit. </li></ul><ul><li>Fundamental division between capital and labour class (class Divide) </li></ul>
  24. 24. MANIFESTATIONS OF CONFLICT <ul><li>Low employee morale, high turn over, absenteeism </li></ul><ul><li>Leads to grievances, indiscipline </li></ul><ul><li>Strikes, work stoppages, work to rule, go slow etc. </li></ul>
  25. 25. Methods of Preventing Conflict (Disputes) <ul><li>SOUND LABOUR MANGEMENT RELATIONS (SLMR) </li></ul><ul><li>1. An effective ‘Grievance Procedure’ </li></ul><ul><li>2. Various forms of ‘Worker’s Participation in Management’ </li></ul><ul><li>3. ‘Sound Labour Management’ practices involving: Communication, Consultation, Cooperation , participation and Partnership with workers </li></ul><ul><li>4. Collective Bargaining in good faith </li></ul>
  26. 26. SLMR-Practices <ul><li>Common Interests( Worker’s Participation in Management, Sound Labour Management practices) </li></ul><ul><li>Grievance Procedure </li></ul><ul><li>Conflicting Interests ( Collective Bargaining, Various methods of resolving Industrial Disputes- conciliation, arbitration, adjudication, law making) </li></ul>
  27. 27. SLMR-ILO RECOMMENDATIONS <ul><li>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. </li></ul>
  28. 28. BASIC CONCEPTS AND VALUES GOVERNING IR <ul><li>Equity and fairness </li></ul><ul><li>Integrity, trust and transparency </li></ul><ul><li>Individualism vs. collectivism- collectivist basis may negate or limit individual freedom </li></ul><ul><li>Power and authority-the manner in which they are exercised may have implications on the rights and authorities of others </li></ul>
  29. 29. ATTRIBUTES OF A SOUND IR SYSTEM <ul><li>Harmonizes economic growth with social justice and progress </li></ul><ul><li>Generates productive employment </li></ul><ul><li>Contributes to improvement in productivity </li></ul><ul><li>Improves the well being and quality of life of workers and their families </li></ul>
  30. 30. COLLABORATIVE/PARTNERSHIP MODEL OF IR <ul><li>Basic ingredients include: </li></ul><ul><li>Sharing information </li></ul><ul><li>Consulting with each other on a regular basis </li></ul><ul><li>Bridging the gap between precept and practice </li></ul><ul><li>Management shifts from direction and control to consensus and commitment </li></ul><ul><li>Collaborative Collective Bargaining leads to win-win situation for both workers and management. </li></ul>
  31. 31. CHOICES IN IR <ul><li>Coerce-only one side gets what it wants </li></ul><ul><li>Conflict-both sides spend energy in fighting, and only one side usually has a marginal gain </li></ul><ul><li>Compete-One party wins and the other looses </li></ul><ul><li>Compromise-No one gets what he wants </li></ul><ul><li>Co-opt/cooperate-the initiator may walk away with a larger slice of the cake </li></ul><ul><li>Collaborate-both parties work out options for mutual gain </li></ul>
  32. 32. Limitations of Dunlop Model <ul><li>Consumers and community are also Actors, alongside, employers, workers and specialized government and other agencies concerned with enterprises and their relations </li></ul><ul><li>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. </li></ul>
  33. 33. 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%
  34. 34. 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

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