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  1. 1. Industrial relations- Overview <ul><li>Concept of IR means-the relationship between employees & the mgmt in the day-to-day working of the industry. </li></ul><ul><li>IR is a set of functional interdependence involving historical ,economic social psychological, demographic, technological, </li></ul><ul><li>occupational, political &legal variables. </li></ul><ul><li>. IR is a whole field relationship that exists because of the necessary collaboration of men & women in the employment process of an industry </li></ul>
  2. 2. Overview contd <ul><li>IR are the relations mainly between employer & employees. </li></ul><ul><li>IR are the outcome of the practice of HRM & employee relations. </li></ul><ul><li>The relations emphasis on accommodating other party’s interest , values, needs. </li></ul><ul><li>IR are governed by the system of rules & regulations concerning work, work place, &working community. </li></ul>
  3. 3. Overview contd. <ul><li>The main purpose of IR is to maintain harmonious relations between employer & employees by solving their problems through grievance procedure &collective bargaining. </li></ul><ul><li>The govt., influences & shapes industrial relations policies, rules, agreements, mediation, awards, acts etc. </li></ul><ul><li>Trade unions influence & shape the IRs through collective bargaining. </li></ul>
  4. 4. Characteristics of IR <ul><li>IRs are outcome of employment relationship in an industrial enterprise. </li></ul><ul><li>IRs develop the skills & methods of adjusting to & cooperating with each other. </li></ul><ul><li>IRS creates complex set of rules 7 regulations to maintain harmonious relations. </li></ul><ul><li>The govt., involves to shape IRS through laws, rules, agreements, awards, etc. </li></ul><ul><li>The important factors of IRS are: employees & their organizations, employer & their associations & govt,. </li></ul>
  5. 5. Features of industrial work . <ul><li>The industry is the association of large number of workers, supervisors, managerial personnel , consultants, & other stake holders. </li></ul><ul><li>Large scale industrialization needs highly specialized HR with diversified skills & dynamic talent. </li></ul><ul><li>The industrial work reduces workers dependence. </li></ul><ul><li>The large scale & developed industries resort to tall organizations which reflects centralization of authority & responsibility </li></ul><ul><li>The workers new to the industry find it difficult to follow rules & regulations therefore are more disciplined. </li></ul>
  6. 6. Features contd. <ul><li>The industrial jobs are insecure due to change in production process, technological changes & consequent downsizing’ </li></ul><ul><li>Wage & salary are main factors to attract workers & skill & abilities are the main factors to get suitable job. </li></ul><ul><li>Industrial employment is mostly based on economic considerations. Employers buy labour & workers sell it. </li></ul>
  7. 7. Factors of industrial relations. <ul><li>Institutional : govt policy, labour legislations, voluntary courts collective agreement, employee courts, employers’ federation etc,. </li></ul><ul><li>Economic </li></ul><ul><li>Technological </li></ul><ul><li>Social & cultural. </li></ul><ul><li>Political. </li></ul><ul><li>Governmental. </li></ul>
  8. 8. Three actors of Industrial relations. <ul><li>According to John T Dunlop, ‘ Industrial societies necessarily create IRS defined as a complex of interrelations among workers , mgmt, & govt,. </li></ul><ul><li>Workers & their organisations; </li></ul><ul><li>Employers & their organisations; </li></ul><ul><li>Government. </li></ul>
  9. 9. Contrast between HRM & IR <ul><li>HRM/ PM </li></ul><ul><li>Two imp., parties,-employee & employer. </li></ul><ul><li>Formulation of objectives policies , procedures & programs of HR & implements them. </li></ul><ul><li>Reformulates the objectives ,policies, etc., based on industrial conflicts which are the outcome of unsound IRS. </li></ul><ul><li>Individual employee contacts with the immediate superior. </li></ul><ul><li>Grievance & disciplinary procedures are resorted to, to solve the employee – employer conflicts. </li></ul><ul><li>IR. </li></ul><ul><li>Four parties- employees, employer, trade unions & govt,. </li></ul><ul><li>The implementation of HR policies results in IR. </li></ul><ul><li>The sound IR contributes to the organisational goals. The unsound IR result in Industrial conflicts demanding for change & reformulation of HRM objectives & goals. </li></ul><ul><li>Employees contact even the top mgmt as a group. </li></ul><ul><li>Collective bargaining & forms of industrial conflicts are resorted to, to solve the problems. </li></ul>
  10. 10. Principles of sound IRS <ul><li>Recognition of the dignity of the individual & of his right to personal freedom & equality of opportunity. </li></ul><ul><li>Mutual respect, confidence, understanding, goodwill& acceptance of responsibility on the part of both employer mgmt., & workers & their representatives in the exercise of the rights & duties in the operation of the industry. </li></ul><ul><li>Good understanding between the various organisations of employers & employees. </li></ul>
  11. 11. Functional requirements of sound IR program <ul><li>Top mgmt support. </li></ul><ul><li>Sound personnel policies. </li></ul><ul><li>Adequate Practices-translate intentions to action. </li></ul><ul><li>Detailed supervisory training.-to carry out policies & practices. </li></ul><ul><li>Follow up of results.-constant review of IR program. </li></ul>
  12. 12. SCOPE OF IRs <ul><li>Attain maximum individual development. </li></ul><ul><li>2 Desirable working relationships between mgmt & employees. </li></ul><ul><li>3. creating a sense of belongingness & mutual affection. </li></ul><ul><li>4. Relationship among employees, between employees & their superiors/ managers. </li></ul><ul><li>5. Collective relations between trade unions &mgmt. i.e. union - mgmt relations. </li></ul><ul><li>6. Collective relations among trade unions, employers’ associations & govt. </li></ul>
  13. 13. functions of IR <ul><li>Establish communications between workers &mgmt to bridge differences. </li></ul><ul><li>Establishing rapport between managers & managed. </li></ul><ul><li>Ensure creative contribution of trade unions to avoid industrial conflicts. </li></ul><ul><li>To safeguard the interests of workers & mgmt. to avoid unhealthy & unethical practices in the industry. </li></ul><ul><li>To ensure better workers participation. </li></ul><ul><li>To promote understanding, creativity &co-operative ness to raise industrial production. </li></ul>
  14. 14. Objectives of IR <ul><li>To promote & develop congenial labour mgmt relations. </li></ul><ul><li>To enhance economic status of worker. </li></ul><ul><li>To regulate production. </li></ul><ul><li>To socialize industries. </li></ul><ul><li>To provide workers participation in mgmt </li></ul><ul><li>To improve workers’ strength. </li></ul><ul><li>To encourage & develop trade unions. </li></ul><ul><li>To avoid industrial conflict & their consequences. </li></ul><ul><li>To extend & maintain industrial democracy </li></ul>
  15. 15. ILO principles for healthy IRs <ul><li>Good labor-mgmt relations depend upon employers’ & trade unions capacity to deal with their mutual problems freely independently & responsibly. </li></ul><ul><li>Trade unions & employers’ & their organizations should be interested in resolving their problems through collective bargaining process. </li></ul><ul><li>Workers & employers orgns should take into consideration the general, social, public & economic measures affecting employers’ & workers relations & be willing to associate with govt agencies. </li></ul>
  16. 16. Labor legislation in India--objectives <ul><li>Protect workers from exploitation. </li></ul><ul><li>Strengthen IRs. </li></ul><ul><li>Provide machinery for settling industrial disputes & welfare of workers. </li></ul>
  17. 17. Acts concerning social security & regulation of labour employment. <ul><li>Protective & employment /standards & norms legislation </li></ul><ul><li>Factories act. </li></ul><ul><li>Payment of wages act. </li></ul><ul><li>Minimum wages act. </li></ul><ul><li>Equal remuneration act. </li></ul><ul><li>Payment of bonus act </li></ul><ul><li>Apprentice act. </li></ul><ul><li>Employment act( compulsory notification of vacancies act. </li></ul>
  18. 18. Social security/welfare & amenities legislation. <ul><li>ESI act-1948 </li></ul><ul><li>EPF act 1952 </li></ul><ul><li>Payment of gratuity act 1952 </li></ul><ul><li>Maternity benefits act </li></ul><ul><li>Workmen's compensation act. </li></ul>
  19. 19. Regulatory /disputes processing & rights of parties legislation <ul><li>Industrial disputes act1947.-provides for the investigation & settlement of industrial disputes. </li></ul><ul><li>Industrial employment (standing orders) act 1946.-requiries mgmt to specify the terms & conditions of employment & communicate these to the workers. </li></ul><ul><li>Trade unions act 1926- is for formation of trade unions. </li></ul>
  20. 20. Definition of collective bargaining <ul><li>‘ Collective bargaining’ is coined by Sydney & Beatrice Webb who defined it as a method by which trade unions protected & improved the conditions of their members’ working lives. </li></ul><ul><li>It is a procedure by which employers & a group of employees agree upon the conditions of work. </li></ul>
  21. 21. Characteristics of collective bargaining <ul><li>It is a group or collective action as opposed to individual actions & is initiated through the representatives of employees. </li></ul><ul><li>It is flexible& mobile, & not fixed or static. </li></ul><ul><li>it is a two party/ way process.-it can succeed only when both labour & mgmt want it to succeed. </li></ul><ul><li>4. it is a continuous process , which provides a mechanism for continuing organized relationships between mgmts & trade unions. </li></ul>
  22. 22. Approaches to IRs <ul><li>Psychological-perceptions of mgmt, unions & workers. </li></ul><ul><li>2. Sociological- problems of conflict & competition due to social factors. </li></ul><ul><li>3. Human relations- freedom of speech ,thought expression, movement & control . </li></ul><ul><li>4. Gandhi an –principles of truth & non-violence. </li></ul>
  23. 23. contd <ul><li>It is dynamic & not static. As this concept is growing ,expanding & changing in view of the attitudes ,opinions & perceptions of both the parties. </li></ul><ul><li>It ensures democracy at work place. </li></ul><ul><li>It is not a competitive process but essentially a complimentary process. </li></ul><ul><li>It is an art as it is an advanced form of understanding & maintaining human relations. </li></ul><ul><li>It is voluntary process. </li></ul><ul><li>The unique feature is that usually the parties concerned start negotiations with entirely divergent views ,interests & reach a middle path acceptable to both. </li></ul>
  24. 24. Importance of collective bargaining <ul><li>It establishes uniform conditions of employment. </li></ul><ul><li>Secure a prompt & fair redressal of grievances. </li></ul><ul><li>Avoids interruptions in work-strikes, go-slow tactics. </li></ul><ul><li>Promotes the stability of industry. </li></ul><ul><li>Lays down fair rates of wages & norms of working conditions. </li></ul><ul><li>Provides a method for regulation of the conditions of employment. </li></ul>
  25. 25. Importance-contd <ul><li>It provides a solution to the problem of industrial sickness. </li></ul><ul><li>It provides a flexible means of adjusting wages & employment conditions to economic & technological changes. </li></ul><ul><li>It is the most significant aspect of labour mgmt relations. </li></ul><ul><li>It builds up a system of jurisprudence by introducing civil rights in industry. </li></ul>
  26. 26. Principles of CB <ul><li>For union & mgmt. </li></ul><ul><li>CB should be made an educational as well as a bargaining process. </li></ul><ul><li>The mgmt & trade union must look upon CB as a means of finding the best possible solution. </li></ul><ul><li>Both parties to the dispute should command the respect of each other & should have enough bargaining power. </li></ul><ul><li>There must be mutual confidence & good faith,& a desire to make CB an effective practice. </li></ul><ul><li>There should be an honest, able & responsible leadership. </li></ul><ul><li>Both parties should abide by both state & central laws. </li></ul><ul><li>Both parties should ensure that the price of labour is properly adjusted to other prices. </li></ul>
  27. 27. For the mgmt <ul><li>The mgmt should develop & follow a realistic labour policy’ </li></ul><ul><li>Mgmt should accept the recognize & accept trade union as a constructive force. </li></ul><ul><li>The mgmt should not assume the good will of the employees. </li></ul><ul><li>The mgmt should treat the trade union fairly & establish a meaningful relationship. </li></ul><ul><li>The mgmt should be proactive in solving the grievances of the employees. </li></ul><ul><li>The mgmt should deal with consequences only one trade union. </li></ul><ul><li>The social considerations must be taken into account while weighing the economic. </li></ul>
  28. 28. For trade unions <ul><li>Trade unions should avoid racketeering & undemocratic practices. </li></ul><ul><li>Trade unions should assist the mgmt in improving the quality & quantity of production. </li></ul><ul><li>They should appreciate the economic implications of their demands in the CB process. </li></ul><ul><li>They should resort to strikes as a last method to settle disputes. </li></ul>
  29. 29. Forms of CB <ul><li>Single plant bargaining. </li></ul><ul><li>Multiple plant bargaining. </li></ul><ul><li>Multiple employer bargaining. </li></ul><ul><li>IN India GB is classified into 4 categories. </li></ul><ul><li>Settlements under Industrial disputes act. </li></ul><ul><li>Agreements made without reference to board of conciliation. </li></ul><ul><li>Consent awards. </li></ul><ul><li>When disputes are sub judice. </li></ul><ul><li>Agreements drawn after direct negotiations between labour & mgmt which are voluntary in character. </li></ul>
  30. 30. Collective bargaining process. <ul><li>The negotiation stage. </li></ul><ul><li>Identification of the problem. </li></ul><ul><li>Preparing for negotiations. </li></ul><ul><li>Negotiation of agreement. </li></ul><ul><li>Contract administration stage. </li></ul><ul><li>Distribute the printed contract throught the organisation. </li></ul><ul><li>Union takes steps to see that all workers understand the contract & implement it. </li></ul><ul><li>From time to time both parties make mutually acceptable amendments </li></ul>
  31. 31. Content of collective agreement <ul><li>The purpose of the agreement, its scope & definition of important terms. </li></ul><ul><li>The rights & responsibilities of the mgmt & trade unions. </li></ul><ul><li>Wages, bonus, production norms, leave, retiring benefits & other benefits & terms & conditions of service. </li></ul><ul><li>Grievance redressal procedure. </li></ul><ul><li>Metnods to be adopted for settlement of future possible disputes. </li></ul><ul><li>A termination clause. </li></ul>
  32. 32. Factors hindering CB <ul><li>Problems with unions </li></ul><ul><li>problems from govt. </li></ul><ul><li>Legal problems. </li></ul><ul><li>Political interference. </li></ul><ul><li>Attitude of mgmt. </li></ul>
  33. 33. Suggestions for effective CB <ul><li>A truly representative , enlightened & strong trade union should come into being. </li></ul><ul><li>There should be a progressive & strong mgmt which is conscious of its obligations & responsibilities to the owners of business, to the employees. To consumers. </li></ul><ul><li>Unanimity between labour & mgmt on basic objectives of the organisation. </li></ul><ul><li>When there are several units there should be delegation of authority to local mgmt. </li></ul><ul><li>a fact finding approach & willingness to use new tools. </li></ul>
  34. 34. Workers participation in management (WPM)- definition <ul><li>Davis-It is a mental & emotional involvement of a person in a situation which encourages him to contribute to goals & share responsibilities in them. </li></ul><ul><li>Mamoria- it is a system of communication & consultation either formal or informal by which employees of an organisation are kept informed about the affairs of the undertaking & through which they express their opinion & contribute to management decisions. </li></ul>
  35. 35. Scope of WPM <ul><li>It increases the scope for employee’s share of influence in decision-making at different tiers. </li></ul><ul><li>It is at different levels. i. shop. ii. Department . & iii. Top level. </li></ul><ul><li>It incorporates the willing acceptance of responsibilities by body of workers. </li></ul><ul><li>It is conducted through a mechanism of forums & practices. </li></ul><ul><li>its broad goal is to change basically the organisational aspect of production & transfer the mgmt function. </li></ul>
  36. 36. Objectives of WPM <ul><li>To promote increased productivity. </li></ul><ul><li>To provide a better understanding to employees about their role & place in the process of attainment of orgnl goals </li></ul><ul><li>To satisfy the workers social & esteem needs. </li></ul><ul><li>To strengthen labour mgmt co-operation & thus maintaining industrial peace. </li></ul><ul><li>to develop social education for effective solidarity among working community. </li></ul><ul><li>An ideological point of view to develop self mgmt in industry. </li></ul><ul><li>An instrument for improving efficiency. </li></ul><ul><li>To build a dynamic HR. </li></ul><ul><li>To build the nation through entrepreneurship & economic development. </li></ul>
  37. 37. WPM as a means of motivation <ul><li>It permits a more balanced interaction pattern & therefore results in less resistance to innovation. </li></ul><ul><li>It permits members of the group to unfreeze their attitudes & engage in catharsis. </li></ul><ul><li>It permits leaders to reinforce their position. they enhance their status. </li></ul><ul><li>It enables the subordinate to feel that an exchange relationship is set up . </li></ul><ul><li>It provides him an opportunity for achievement from work. </li></ul><ul><li>It subjects the individual to certain group pressures to implement the decision which the group participated in making. </li></ul>
  38. 38. Essential conditions for successful working of WPM <ul><li>The attitude & outlook of the parties should be enlightened & impartial so that free & frank exchange of thoughts & opinions is possible. </li></ul><ul><li>Both parties should have genuine faith in the system & in each other & be willing to work together. </li></ul><ul><li>The experiment of labour participation in mgmt should be given wide publicity. </li></ul><ul><li>Participation should be real at all stages & on all issues. </li></ul><ul><li>Objectives to be achieved must be practical & clear to all. </li></ul><ul><li>Participation must work as complimentary body to help collective bargaining, which creates conditions of work & legal relations. </li></ul>
  39. 39. Contd <ul><li>There should be one single strong union .multiple unions should be discouraged. </li></ul><ul><li>Authority should be centralized through democratic mgmt process. </li></ul><ul><li>Progressive personnel polices should ensure growth of individual workers. </li></ul><ul><li>Mgmt should be prepared to full information connected with the working of the industry & worker should handle it responsibly. </li></ul><ul><li>The follow up action on the decisions of the participating forums should be ensured. </li></ul><ul><li>Effective two way communication is a must for the success of the program. </li></ul>
  40. 40. Forms of WPM <ul><li>Working committee.- under the industrial disputes act 1949. </li></ul><ul><li>functions -- these work committees are consultative bodies. </li></ul><ul><li>Discussion of conditions of work. </li></ul><ul><li>Promote measures for securing & preserving amity & good relations between employers & workmen </li></ul><ul><li>Structure it has office bearers-president, vice president, secretary &jt. Secretary. </li></ul>
  41. 41. Joint mgmt councils <ul><li>Objectives- </li></ul><ul><li>To increase the association of employers &employees for cordial IRs. </li></ul><ul><li>To improve operational efficiency of the workers. </li></ul><ul><li>To provide welfare facilities to them. </li></ul><ul><li>To educate workers for better participation . </li></ul><ul><li>To satisfy the psycological needs of employees. </li></ul>
  42. 42. WPM scheme of 1975 <ul><li>It is part of the 20 point economic program-30 th oct 1975. </li></ul><ul><li>Features of the scheme are: </li></ul><ul><li>All decisions of a shop council & joint council shall be on the edifice of ‘consensus & not by a process of voting.’ </li></ul><ul><li>It is non statutory like JMCs. </li></ul><ul><li>‘ consensus & time bound implementation’ are the tools for arriving at decisions. </li></ul><ul><li>the scheme provides for workers participation at shop floor level. </li></ul><ul><li>It provides for a two way communication. </li></ul><ul><li>the scheme hits at 3 principle objectives-recovery of individual human rights at workplace ,consolidation of social & political freedom,& the framing of new industrial system. </li></ul>
  43. 43. Forms of wpm-contd <ul><li>Joint councils: these are for the whole unit & its membership remains confined to those who are actually engaged in the organisation. Tenure is for 2 years. Meet once in 4 months. </li></ul><ul><li>Shop councils. Represents each dept., or a shop as aunit. </li></ul><ul><li>Unit councils. These councils areto eliminate factors which hamper operations & to improve methods of operation. </li></ul>
  44. 44. Reasons for limited success of WPM <ul><li>The inherent conflicts between employees & mgmt. </li></ul><ul><li>The general belief that workers are inferior to mgmt. </li></ul><ul><li>The system is mgmt dominated. </li></ul><ul><li>The view that managers sre averse to share responsibility. </li></ul>
  45. 45. Trade union--definition <ul><li>GDH COLE- an associationof workers in one or more professions-an association formed on mainly for the purpose of advancing & protecting the members’ economic interests in with their daily work. </li></ul><ul><li>S d punekar- a union is a continous association of persons in industry-wther employer or independent workers- formed primarily for the purpose of the pursuit of the interests of its members of the trsde they represent. </li></ul>
  46. 46. definition <ul><li>Indian trade union act 1926- any combination whether temporary or permanent formed primarily for the purpose of regulating the relations between workmen & employers or between workmen & workmen, between employers & employers or for imposing restrictive conditions on the conduct of any trade or business &include any federation of two or more trade unions. </li></ul>
  47. 47. Why do workers join trade unions. <ul><li>To attain economic security. </li></ul><ul><li>To improve their bargaining power & balance it with that of mgmt. </li></ul><ul><li>To ventilate the workers’ grievances to the mgmt. </li></ul><ul><li>To inform workers’ views, aims, ideas & dissatisfaction/ frustrations to the mgmt. </li></ul><ul><li>To secure protection from unexpected economic needs like illiness,accidents, injury etc,. </li></ul><ul><li>To satisfy their social , psychological & belongingness needs. </li></ul><ul><li>To secure power. </li></ul>
  48. 48. Characteristics of TU <ul><li>TU can be an association of the employees or employers or of independent workers. </li></ul><ul><li>TUs are relatively permanent combination of workers. </li></ul><ul><li>TUs is an association of workers who are engaged in securing economic benefits for their members. </li></ul><ul><li>TUs origin & growth are influenced by a number of idealogies. </li></ul>
  49. 49. Functions of TUs .- national commission on labour. <ul><li>Tosecure for workers fair wages. </li></ul><ul><li>To safeguard security of tenure & improve conditions of service. </li></ul><ul><li>To enlarge opportunities for promotion & training. </li></ul><ul><li>to improve working & living conditions. </li></ul><ul><li>Tp provide for educational , cultural & recreational facilities. </li></ul><ul><li>To cooperate in & facilitate technological advance by broadening the understanding of workers on its underlying issues. </li></ul>
  50. 50. Functions-contd <ul><li>To promote identity of interests of the the workers with their industry. </li></ul><ul><li>To offer responsive cooperation in improving levels of production & productivity,discipline & high standard of quality. </li></ul><ul><li>To promote individual & collective welfare. </li></ul><ul><li>Promotion of national integration. </li></ul><ul><li>Influencing the socio-economic policies of the community through active participationin their formulation at various levels </li></ul><ul><li>instilling in their members a sense of responsibility towareds industry & the community. </li></ul>
  51. 51. Functions of TUs- categories. <ul><li>Militant or protective or intra –mural functions- hike inwages, providing benefits,job security etc., through CB & direct action. </li></ul><ul><li>Fraternal or extra-mural-proving financial & non financial assistence to workers during strikes, lockouts. Medical, educational,recreational &housing facilities. </li></ul>
  52. 52. Categories contd. <ul><li>Social functions: social activities such as educating customers etc,. </li></ul><ul><li>Political:- affiliating to political parties etc,. </li></ul><ul><li>Ancillary:- communications , welfare activities, education & research. </li></ul>
  53. 53. Principles to regulate TUs <ul><li>The doctrine of vested interest.- wages & other conditions of employment hithertoenjoyed by any section of workmen ought under no circumstances be interfered with for the worse. </li></ul><ul><li>The doctrine of supply & demand. Implies that because of collective action unions are able attain their objectives. </li></ul><ul><li>The doctrine of living wage. </li></ul><ul><li>The doctrine of partnership </li></ul><ul><li>The doctrine of socialism. Right ot work, rest & equal pay for equal work. </li></ul>
  54. 54. Union security- national commission on labour. <ul><li>Closed shop is niether practicable nor desirable. Union shop may be feasible. </li></ul><ul><li>Union security measures should be allowed to evolve as a natural process of trade union growth. </li></ul><ul><li>An enabling provision to permit check-off facility on demand by a recognized union would be adequate. </li></ul>
  55. 55. Important trade unions. <ul><li>AITUC-all india trade union congress. </li></ul><ul><li>INTUC- Indian national trade union congress. </li></ul><ul><li>Hind mazdoor sabha. HMS </li></ul><ul><li>BMS bharitya mazdoor sangh. </li></ul><ul><li>CITU centre of indian trade unions. </li></ul>
  56. 56. Methods of achievement of objectives. <ul><li>Method of mutual insurance. </li></ul><ul><li>Method of collective bargaining </li></ul><ul><li>Method of legal enactment. </li></ul><ul><li>Other methods- strikes, gheros, bandhs,etc,. </li></ul>
  57. 57. Advantages of industrial unions <ul><li>They provide a joint facility for collective bargaining. </li></ul><ul><li>They introduce the measure of uniformity in the principle governing all aspects of service & working conditions, </li></ul><ul><li>They coordinate sectional claims of different levels & different natures of employees within an industry </li></ul>
  58. 58. Industrial conflict <ul><li>Whenever there are Differences between the goals of separate groups or even several individuals in a group, conflict occurs. </li></ul><ul><li>The three main groups in an organisation are: </li></ul><ul><li>Owners </li></ul><ul><li>Managers </li></ul><ul><li>Workers ( unions) </li></ul><ul><li>These develop different orientations & perceptions of their interests & the pursuit of divergent objectives by each causes friction severe enough to lead to strikes/lockouts. </li></ul>
  59. 59. Occurrence of industrial conflicts <ul><li>Industrial conflicts occur due to the interactions </li></ul><ul><li>Within the work organisation-between union leaders & managers. </li></ul><ul><li>Within the union organisation-between union leaders & workers. </li></ul><ul><li>Between the work orgn & union orgn represented by the mgmt & union leaders. </li></ul>
  60. 60. Classification of industrial disputes <ul><li>Interest disputes-arise out of deadlocks in negotiations. </li></ul><ul><li>Grievance disputes-arise out of day-to-day grievances. </li></ul><ul><li>Unfair labour practices-arise out from interference with the exercise of right to organise, acts etc. </li></ul><ul><li>Recognition disputes-arise due to recognition of trade union as a bargaining agent. </li></ul>
  61. 61. Manifestations of organised group conflict (union- mgmt) <ul><li>Of unions </li></ul><ul><li>Non-co-op </li></ul><ul><li>Arguments </li></ul><ul><li>Hostility </li></ul><ul><li>Stress/tension </li></ul><ul><li>Unwillingness to negotiate. </li></ul><ul><li>Resentment </li></ul><ul><li>Absenteeism/work to rule </li></ul><ul><li>Demonstration </li></ul><ul><li>Loss of production </li></ul><ul><li>strike </li></ul><ul><li>Of mgmts </li></ul><ul><li>Unwillingness to negotiate </li></ul><ul><li>Termination </li></ul><ul><li>Demotion </li></ul><ul><li>Lay-offs </li></ul><ul><li>lockouts </li></ul>
  62. 62. Manifestation of individual & unorganized conflict. <ul><li>Workers </li></ul><ul><li>Un-organised with holding of efforts’ </li></ul><ul><li>Intentional waste & efficiency </li></ul><ul><li>Labour turnover </li></ul><ul><li>Absenteeism & complaints. </li></ul><ul><li>Breaking of rules </li></ul><ul><li>strikes </li></ul><ul><li>Management </li></ul><ul><li>Autocratic supervision </li></ul><ul><li>Over-strict discipline. </li></ul><ul><li>Penalties </li></ul><ul><li>Unnecessary firing </li></ul><ul><li>Demotion </li></ul><ul><li>Lay-offs </li></ul><ul><li>lockouts </li></ul>
  63. 63. Causes of industrial conflicts <ul><li>Economic-wage , bonus, overtime, etc. </li></ul><ul><li>Political- political instability, various parties, & their affiliations with unions </li></ul><ul><li>Social- low morale in society, permissiveness, bankruptcy of social values & norms. </li></ul><ul><li>Technological- unsuitable tech, difficulty in adaptation, resistance to change, fear of unemployment. </li></ul><ul><li>Psychological-conflict in individual& orgnl objectives, motivational problems, personality & attitude. </li></ul><ul><li>Market – rising prices & shortages. </li></ul><ul><li>Legal-inadequacy of legal machinery, injustice etc </li></ul>
  64. 64. Dealing with industrial conflicts. <ul><li>Efforts to remove sources of conflict. </li></ul><ul><li>Wage admn & proper </li></ul><ul><li>production standard. </li></ul><ul><li>Working methods/conditions review & morale boosting </li></ul><ul><li>Union –mgmt coop’tion </li></ul><ul><li>Social security legislation </li></ul><ul><li>Social control </li></ul><ul><li>Pressure groups-labour ,mgmt,society. </li></ul><ul><li>Grievance negotiation </li></ul><ul><li>arbitration </li></ul>
  65. 65. Categorization of conflict resolution <ul><li>Statutory measures </li></ul><ul><li>Non statutory measures </li></ul><ul><li>Govt., sponsored guidelines. </li></ul>
  66. 66. Measures of conflict resolution <ul><li>Code of discipline </li></ul><ul><li>Tripartite machinery workers participation in mgmt ( various schemes) </li></ul><ul><li>Collective bargaining scheme. </li></ul>
  67. 67. Measures contd <ul><li>Govt machinery </li></ul><ul><li>Labour administration machinery-state & central level </li></ul>
  68. 68. Statutory measures <ul><li>I D act 1947 </li></ul><ul><li>Works committee </li></ul><ul><li>Conciliation- board & offices </li></ul><ul><li>Voluntary arbitration </li></ul><ul><li>Adjudication - labour courts, industrial tribunals, national tribunals. </li></ul><ul><li>. State acts like BIFR act etc,. </li></ul>
  69. 69. Differences between arbitration & adjudication <ul><li>Arbitration </li></ul><ul><li>It is a voluntary method of solving ID. </li></ul><ul><li>The power to refer an ID to an arbitrator is derived from written agreement between employers &workmen </li></ul><ul><li>Govt can issue notification concerned to present their case before arbitrator/s </li></ul><ul><li>Decisions are quasi-judicial but amenable to high courts only </li></ul><ul><li>Adjudication </li></ul><ul><li>It is compulsory & is the ultimate remedy for resolving IDs </li></ul><ul><li>The power to adjudicate is statutory as it is derived from ID act 1947& it is govt that refers to adjudicatory bodies.-labour courts, tribunals etc,. </li></ul><ul><li>The presiding officers of the bodies are appointed by govt,. </li></ul><ul><li>The awards are quasi judicial. After they are published in govt gazettes they are amenable to constitutional remedies only </li></ul>
  70. 70. The propensity to strike. <ul><li>The location of worker in society-nature of his work envirnm,his relations with society economic conditions & standard of living. </li></ul><ul><li>The character of the job & the worker.- determines the kind of workers employed & their attitudes which in turn determines whether there will be an atmosphere of conflict or peace. </li></ul>
  71. 71. Factors leading variations in pattern of conflict propensity <ul><li>The organisation of unions. </li></ul><ul><li>Technology </li></ul><ul><li>Maturity of parties. </li></ul><ul><li>Equality of partners.- strength & bargaining power. </li></ul><ul><li>Wage rates-low or not consistent </li></ul>