What should be the approach when we are talking about the role of HR and trade union
Video CaseOn 25th may 2010, Air Indias operations were severely affected, when around 20,000 employees went on strike across the country; just after Mangalore crash on22nd May 2010. Due to this AI was forced to cancel 150 flights on 16 routes including, 6 international flights. Strike was against the delay in payment of salaries as AI had decided on last week of May to delay the salary by a week. The ACEU had served a strike notice on the management and the Chief Labour Commissioner on May 15 against Air Indias decision. AI management had requested strikers to return on “ hour of crisis” following the Saturday air crash on 22nd May 2010. Management request to agitators did not work out and the AI management derecognized two trade unions, terminated 58 employees services and suspended 24 his employs as action against strike. On a hidden agenda1 this strike was a signal of conflicts on many issues such as involving other company for ground duty work and Merger of AI. This video case leaves few questions. How trade union concept is relevant in new economy? Is immerging practice of human resource, sliding the trade union role on margin? Does trade unions have lost their influence/relevance?
What should be the approach when we aretalking about the role of HR and trade union Presented By: Sandeep Gunjan
Importance Of Trade UnionsTrade unions help in accelerated pace of economic development in many ways as follows: • By helping in the recruitment and selection of workers. • By inculcating discipline among the workforce • By enabling settlement of industrial disputes in a rational manner. • By helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.
Trade union Act in IndiaIndian Trade Unions Act, 1926 defines right, responsibility, liabilities and registration of trade union. It also ensures that their funds are utilised properly.The trade union act aims to: • Secure fair wages for workers and improve their opportunities for promotion and training. • Safeguard security of tenure and improve their conditions of service. • Improve working and living conditions of workers • Provide them educational, cultural and recreational facilities. • Facilitate technological advancement by broadening the understanding of the workers. • Help them in improving levels of production, productivity, discipline and high standard of living. • Promote individual and collective welfare and thus correlate the worker interests with that of their industry.•http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=192616
Industrial disputesAct, defines industrial dispute as a difference between employers andemployers, or between employers and workmen, or between workmen andworkmen, which is connected with the employment or non-employment,or the terms of employment or with the conditions of labour, of anyperson". The basic objectives of the Act are:- • To provide a suitable machinery for the just, equitable and peaceful settlement of industrial disputes. • To promote measures for securing and preserving amity and good relations between employers and employees. • To prevent illegal strikes and lockouts. • To provide relief to workers against layoffs, retrenchment, wrongful dismissal and victimisation. • To promote collective bargaining. • To ameliorate the conditions of workers. • To avoid unfair labour practices.
Industrial unrestIndustrial peace implies the existence of harmonious relation between themanagement & workers. When the relationship between them are notcordial, industrial atmosphere is not peaceful, such a situation is calledindustrial unrest.Industrial Unrest Unorganized- When it is unorganized, the moral Of the workers are generally low & the managements are not sincere in solving the problems of the workers. Organized - But when industrial unrest takes an organized form, it gets expression in the form of strikes, demonstrations & lock-outs.
StrikesStrike is a very powerful weapon to get its demands accepted bya trade union. According to industrial disputes act, 1947, Strikemeans , “cessation of work by a group of workers for thepurpose of bringing pressures on their employers to accept theirdemand”.
Are strike justified?All strikes are not justified, and nor all strikes are unjustified.• If the strike was held by the workers in support of their reasonable, fair & bonafide demands in peaceful manner, then the strike will be justified.• If it was held by using of violence or acts of sabotage or for any ulterior purpose, then the strike will be unjustified.
Example JUSTIFIED: UNJUSTIFIED:1: WHEN EXISTING FACILITIES 1: STRIKES LAUNCHED FORWITHDRAWN, BENEFITS POLITICAL REASONS.WITHDRAWN. 2: DEMANDS ARE EXCESSIVE2: UNFAIR LABOUR PRACTICE AND UNREASONABLEBY MANAGEMENT.3: NO RESPONSE FROMMANAGEMENT IN SPITE OFREFERRING A DEMAND &ISSUING A REMINDER.
Right to strike !!!For long strike has been recognized as a legitimate weapon for workmenseeking enforcement of rights. but it is not a fundamental right,because the Indian constitution doesn’t consider the right to strike as afundamental right, as it can not be controlled by the industrial disputes act ,if declared so.The right to strike however is not unqualified. it is a relativeright which can be exercised with due regard to the right of others. a striketherefore should used as a weapon only as a last step, when all otherpolicies have proved futile & it should be performed IN A peaceful mannerfor good & justifiable reasons.
Impact of strikeThe consequence of industrial disputes are far reaching , as theydisturb the economic ,social & political life of a country. Few pointsare - •Huge wastage of man-days. •Dislocation in the production work. •A strike in the public utility services like water supply, power, gas supply, posts, telegraph, telephone, railways/roadways, hospitals & dispensaries etc. dis-organises public life & throw the economy out of gear. •The worker losses wages, which results in family disturbances, mental agonies, tensions etc. if a strike becomes unsuccessful, then it is a burden of financial loss on workers, which demoralizes them, disappointed them severely.
CONTINUED..• Again the employers suffer a heavy loss, not only through stoppage of production, reduction in sales & loss of market, but also in the huge expenditure incurred in crushing strikes.• Stoppages of workplace results in short supply of consumer goods, which causes sky riding prices & lead to non-availability of products in the open market.• Industrial disharmonies like strikes affects national economy. prof. Pigou pointed out that, when labour & equipment are rendered idle by a strike or lock-out, national dividend suffers, by lessening the output, which ultimately reduces national income.
Reason of Declining status of TU Industry Factor Trade union factor• In recent year’s public sector and private sector companies have equally adopted On the other hand poor finance, good HR practices. Hence, HR are now weak orgnisational structure, the playing plays a significant role in employee satisfaction. lack of initiatives to improve• Increased domestic and Global competition, member union relations, failure to has also forced unions at a disadvantage position as there is a major thrust on labour recognize the importance of two cost. way communication, involvementOther reason in insensitive politics of leaders,• younger workforce, workers attitude towards union,• irrelevance of lifetime employability, educated workforce, women’s• productivity based bonus and higher entry in the workforce, has shifted compensation ,• change of corporate aspiration , collectivism to individualism.• technology and knowledge based business,
Role of HR- Conflict managementManagement and HR usually view unions as the adversary, but thatonly winds up making management look like the enemy.Companies are much better off working with the unions rather thanagainst them. To head off any serious problems before they surfaceHR managers should do following- • Start negotiations early, as much as possible. Devote a considerable amount of strategic energy to negotiations. • Give importance of communication with employees throughout the negotiation process. • Determine if any of the jobs included in the collective bargaining unit are overly stressful or might foster employee resentment or unhappiness.
Measures for Improving IndustrialRelations• Workers’ Participation in Management• Mutual Accommodation : The approach must be of mutual “give and take rather than “take or leave.” The management should be willing to co-operate• Sincere Implementation of Agreements• Sound Personnel Policies.• Government’s Role• Progressive outlook