- INDUSTRY RELEATIONS AND L.pptx

1. Industrial Relations And
Legislations

2. Industrial Relation Meaning
• The term industrial relations comprises two words, i.e.
‘industry’ and ‘relations’.
• The term ‘industry’ refers to any productive activity in the
organization in which the employees are engaged.
• On the other hand, the term ‘relations’ refers to the relationship,
which exists within the industry between the management and
the employees.
• The relationship between management and employees within
the organization within the organizational settings is defined by
industrial relations.
• Industrial relations emerge directly or indirectly from
management-trade union relationships.

3. What is Industrial Relations?
• The concept of industrial relations means the relationship between the
employees and management in the day to day working of an industry.
• Industrial relations imply the relation between both employer and
employees during the period of employment in an industrial organization.
• However, the concept of industrial relations has a broader meaning.
• In a broader sense, the term industrial relations refers to the relation
between various unions, state and union, and between employers and
government.
• Relations of all those associated with the industry may be known as
industrial relations.

4. •According to ILO international labor
organization industrial relations deal with
either relationship between the state and
employers’ and workers organizations or the
relations between the occupational
organizations themselves

5. Objectives of Industrial Relation
• Following are the different objectives of industrial relation.”
1. To establish industrial peace
2. To safeguard the interests of both workers and management
3. To avoid industrial disputes
4. To raise the production capacity
5. To establish industrial democracy
6. To minimize the labor turnover rate and absenteeism
7. To safeguard the workers economic and social interests.
8. To contribute to the economic development of the country through
productivity.
9. To minimize strikes, lockout, Heroes, etc., by providing good working
conditions and fair wages to the workers.

6. Nature of Industrial
Relations
• Concerned with relationship of management and workers.
• To protect the interests of employees
• Concerned with systems, rules and procedures used by
unions & employees
• Role of regulatory mechanism in resolving any industrial
disputes.

7. Objectives of Industrial Relations
• To maintain industrial democracy based on participation of
labour in the management and gains of industry.
• To raise productivity by reducing tendency of high labour
turnover and absenteeism.
• To ensure workers’ participation in management of the
company by giving them a fair say in decision-making and
framing policies.
• To establish a proper channel of communication.
• To increase the morale and discipline of the employees.

8. • To safeguard the interests of the labour as well as management
by securing the highest level of mutual understanding and
goodwill between all sections in an industry.
• To avoid all forms of industrial conflicts so as to ensure industrial
peace by providing better living and working standards for the
workers.
• To bring about government control over such industrial units
which are running at a loss for protecting the livelihood of the
employees.

10. Importance of Industrial Relations?
1. Promotes Democracy: Industrial relations means employing collective
bargaining to resolve issues faced by workers. This enables an organization to
establish industrial democracy, which eventually motivates the workers to
perform their best to the growth and prosperity of the organization.
2. High Morale: Good industrial relations enhance the morale of the
employees and motivate the workers to work more efficiently.
3. Avoid Conflicts Between Management And Union: Industrial relations
minimize issues between unions and management. This results in ignoring
any unfair practices that could lead to major conflicts between employers and
trade unions.

11. 4. Minimizes Wastage: Satisfactory Industrial relations are
maintained on the basis of co-operation and recognition of each
other in the department. It helps to minimize wastage of material,
manpower, and costs.
5. Economic Growth And Development: Good and harmonious
industrial relations result in increased efficiency and hence
prosperity, which in turn minimize turnover and other tangible
benefits to the organization. This promotes economic growth and
development.

13. • Industrial relations are interpreted from various dimensions.
• A well founded understanding of these dimensions of
industrial relations is benchmark knowledge of human resource
managers because they provide the ideological perspectives of
industrial relations.
• The approaches are discussed below:
1. Unitary approach
2. Pluralistic approach
3. Marxian approach
4. Social action approach
5. System / Dunlop approach
6. HRD approach

15. 1. PSYCHOLOGICAL APPROACH
• This approach suggests that the conflicts between labour and
management are deeply rooted in the perceptions and
attitudes of all the participants
• The problem is further aggravated by various factors like the
income, level of education, communication, values, beliefs,
customs, goals of persons and groups, prestige, power, status,
recognition, security etc are host factors both economic and non-
economic.

16. 2. SOCIOLOGICAL APPROACH: Industry is inseparable from the society in
which it functions.
• Organizations are communities of individuals and groups with differing
personalities, educational and family backgrounds, emotions, sentiments etc.
These differences in individuals create problems of conflict and competition
among the members of industrial society.
• Through the main function of an industry is economic, its social consequences are
also important such as urbanization, social mobility, housing and transport problem
in industrial areas, disintegration of family structure, stress and strain, etc.
• As industries develop, a new industrial-cum-social pattern emerges, which
provides general new relationships, institutions and behavioral pattern and new
techniques of handling human resources.

17. 3. HUMAN RELATIONS APPROACH
• The human relations approach highlights certain policies and techniques to improve
employee morale, efficiency and job satisfaction.
• It encourages the small work group to exercise considerable control over its environment
and in the process helps to remove a major irritant in labour-management relations.
• Major problems in industrial relations arise out of a tension which is created because of
the employer’s pressures and workers’ reactions, protests and resistance to these
pressures through protective mechanisms in the form of workers’ organization,
associations and trade unions.
• In resolving conflicts, understanding of human behavior – both individual and groups – is
a pre-requisite for the employers, the union leaders and the government – more so for the
management.

18. 4. THE GANDHIAN APPROACH
• It is based on the fundamental principles of truth, non-violence
and non- possession.
• If the employers follow the principle of trusteeship, there is no
scope for conflict of interests between them and labour.
• Workers can use non-cooperation (Satyagraha) to have their
grievances redressed.
• Workers should resort to strike for just cause and after the
employers fail to respond to their moral appeals.

19. 5. UNITARY PERSPECTIVE
• A core assumption of unitary approach is that management and
staff, and all members of the organization share the same
objectives, interests and purposes; thus working together,
hand-in-hand, towards the shared mutual goals.
• Unitarism has a paternalistic approach where it demands loyalty
of all employees.

20. 6. PLURALISTIC PERSPECTIVE
• In pluralism the organization is perceived as being made up of
powerful and divergent sub-groups -management and trade
unions.
• This approach sees conflicts of interest and disagreements
between managers and workers over the distribution of profits as
normal and inescapable.
• There is a greater propensity for conflict rather than harmony.

21. 7. MARXIST PERSPECTIVE
• The basic assumption of this approach is that industrial relations
under capitalism are an everlasting and unavoidable source of
conflict.
• The Marxist approach views the power relationship between the
two classes, namely, the employer (capital) and the employee
(labour), as the crux of the industrial relations.
• However, the weakness of this theory is that it is narrow in
approach as it views industrial relations as a product or outcome
of the industrial conflict.

22. Recent trends in industrial relations
• Recent trends in industrial relations have the potential to be life-changing, both
for employees and for businesses.
• As baby boomers retire, up-and-coming managers and new hires want and
expect something different from their work than what previous generations
experienced.

23. 1. Artificial Intelligence (AI) for Routine Tasks
• At first, it was personal computers that replaced typing pools and freed up
secretaries to do more advanced work such as preparing presentations with
programs like PowerPoint (PPT).
• Self-service checkout lanes replaced clerks in supermarkets and big box
stores.
• In environments that use and analyze data, such as IR human resources,
artificial intelligence (AI) will be able to handle routine tasks like
computing and compiling data.
• Human resource personnel will then be able to spend more time analyzing
the data, noting trends and focusing more on employee relations issues.

24. 2. Strong Sexual Harassment Policies
• The "Me Too" movement of 2017 brought sexual harassment in
work environments into the open.
• Although many of the instances that made the news actually
happened years ago, they cost many people their jobs and
tarnished company reputations.
• One of the consequences is that now businesses want to be
absolutely sure they don't foster an environment that allows
harassment in any form.
• Therefore, businesses will continue to strengthen and clarify their
sexual harassment policies, publish them in the company
handbook and make sure their employees know that harassment
won't be tolerated.
• Small and medium-sized businesses have an advantage over large
corporations, because with a smaller staff, you can ensure that
everyone is trained in the sexual harassment policy and can better
monitor relationships between employees

25. 3. Salary Parity as a Goal
• Younger workers are pushing harder for equal pay between men and
women doing the same jobs.
• The unfairness of women routinely being paid less than men across
all professions has been discussed for generations.
• The difference is that men are now advocating for their female co-
workers by, in many cases, sharing salary information with one
another so there is no doubt as to who earns what.

26. 4. The Changing Workforce
• Employers have responded by providing benefits such as paternity
leave and expanded maternity leave, flexible work schedules
including working more from home, and even allowing all
employees to work and vacation as they wish as long as the work
gets done.
• Small- to medium-sized businesses can offer this flexibility on a
case-by-case basis, because employees tend to know each other and
their individual situations.
• The key is being willing to work with all employees to meet their
scheduling needs.

27. Thank you

28. Evolution of Industrial
Relations
• Industrial relations has its roots in the industrial revolution which created the
modern employment relationship by spawning free labour markets and large-
scale industrial organizations with thousands of wage workers.
• As society wrestled with these massive economic and social changes, labour
problems arose.
• Low wages, long working hours, monotonous and dangerous work, and abusive
supervisory practices led to high employee turnover, violent strikes, and the
threat of social instability.
• Intellectually, industrial relations was formed at the end of the 19th century as a
middle ground between classical economics and Marxism, with Sidney Webb
and Beatrice Webb’s Industrial Democracy (1897) being the key intellectual
work. Industrial relations thus rejected the classical icon.

29. Evolution of Industrial Relations in
india
The evolution of industrial relations in India began a long time ago.
• The caste system greatly influenced the ancient industries and their
development.
• Due to successive foreign invasions in India, the living conditions of
slave and artesian couldn't be differentiated.
• Wages were not guaranteed, the living conditions of workers were
harsh, and there was no proper management.
• After some time, however, most Indian industries were modelled
after the British system of business, and this led to growth in various
sectors.

31. Evolution of Industrial Relations in
india
The protective
phase
(1947-1956)
Conflict Ridden
Interventionist phase
(1967-1980)
The productivity-,
Efficiency-. Quality-
orientation phase
(1981-1991)
The consolidation
Phase
(1956-1965)
The post reform
decade
(1992-till now)

32. Evolution of Indian
Industrial Relations
The protective phase (1947-66; 1st
& 2nd
five-year plans):
1. Import-Substitution Industrialization
2. National capitalism
3. Economy grows @ 2%-3%/year.
4. Formation of large employment- intensive public enterprises.
5. Largely centralized bargaining with static real wages. Relative
industrial peace.

33. Evolution of Indian
Industrial Relations
2. The Consolidation Phase(1956-1965)
1. There should be no lockout or strike without notice.
2. No unilateral action should be taken in connection with any
industrial matter.
3. There should be no recourse to go slow tactics.
4. No deliberate damage should be caused to plant or
property.
5. Awards and agreements should be speedily implemented.

34. Evolution of Indian
Industrial Relations
Conflict Ridden Interventionist phase (1967-80; 4th
& 5th
five -year plans):
• Economic stagnation.
• Economy grows at @ 2%/year ; two oil price shocks
• Considerable slowdown in employment growth
&declining real wages.
• Crisis in IR system: massive strikes & industrial
conflict, multiple unionism & decline in strength.
Conflict, multiple unionism & decline in strength.
• Government loosing control over the IR system.

35. Evolution of Indian
Industrial Relations
1. The productivity- Efficiency- Quality- orientation phase
(1981-91; 6th
& 7th
five-year plans):
• Initial domestic economic liberalization; economy grows @
5.7%/year.
• Regional variation in economic development increases.
• Variation in wage growth: skilled versus unskilled, labour
productivity increases, period of ‘jobless 'growth.
• Rise of ‘independent 'enterprise unionism.

36. Evolution of Indian
Industrial Relations
The Post-Reform Decade, 1992-2009
• Stabilization & Structural Adjustment Reforms:
Economy grows @ 6.2%-6.5%
• In the five years (2004-09) growing @ 7%-8%/year.
• Regional variation increases massively.
• Max growth in services: IT, IT-enabled services,
‘hotels, trade & restaurants’’, but also in autos &
ancillaries; more recently in overall manufacturing.

37. Industrial Relations in First World
War
• The First World War was an opportunity in disguise for local
factories in India. Prices of virtually all products went up and
profits soared, however, wages of lower employees were still the
same. There were various strikes and disputes between
management and employees.
• During this time, the Workmen's Compensation Act (1923), the
Trade Union Act (1926), and the Trade Disputes Act (1917) were
established.
• While the wages of employees remained the same, they were given
a certain share of profits made by their hiring industry. Strikes,
however, were sometimes prohibited under the Emergency Rules.
• The years following World War II involved the most workers'
upheaval, and saw the establishment of Industrial Employment
Act (1946) and Industrial Disputes Act (1947).

38. Post-Independence Industrial
Relations
• The post-independence era saw a developing relation
between industry and labour.
• A conference called the Industrial Truce Resolution took
place in 1947, and foresaw the establishment of the
Minimum Wages Act, Factories Act, and Employees State
Insurance Act in 1948.
• This ensured peace between labour and industry. While
industrial relations in India have evolved a long way, some
features of the early system still exist today.

39. Grievance
• Grievance refers to the employee's dissatisfaction with company's work policy and conditions
because of an alleged violation of law.
• They may or may not be justified and usually represent the gap between what the employee
expects and gets from the company.
• Grievence has to be properly addressed because it lowers the motivation and performance of
the employee and affects the work environment.
• Grievance redressal system is a process to address employee grievances, and it can be defined
as a mechanism that enables employees to communicate their concerns to management.
• The grievance redressal system helps in resolving employees’ grievances in a formal manner
which may be between an employee to employee or either between employee and
management.

40. • For an organization to function effectively, it is important that the
employees are satisfied and happy about their job.
• Upon dissatisfaction with the response they receive, they can go higher
up the chain until they finally reach someone who will listen to them.
• The grievance redressal system provides a fair and transparent process
for resolving employee complaints.
• It ensures that all employees are treated equally and fairly,
regardless of their position or seniority.
• The system is implemented through various policies and procedures
designed to ensure that grievances are handled fairly and impartially,
without bias towards anyone involved in the process.

41. Why should grievances be redressed?
• Grievances are inevitable in an organization. And important too.
• They are a part and parcel of any organization's administrative machinery.
• Employees can have grievances with each other, with their managers or even clients.
• A grievance redressal mechanism is important for tracking the number and frequency
of grievances which signify the efficiency of an organization.
• The better it is run, the lesser will be that number.
• Redressing a grievance effectively and swiftly ensures a high level of trust towards the
company and employees feel heard.
• A virtual help desk that is managed by the HR department is a great way to redress
employee grievances.

42. The three types of grievances?
• According to the Communication Workers America, there are three types of grievances, that are
largely applicable to organizations across the globe. They are:
1. Individual Grievances
• When an individual employee grieves against a management action like demotion based on bias,
non payment of salary, workplace harassment etc.
2. Group Grievances
• This type of grievance is when a team or a group collectively grieves against the management for
example when none of the team members receive the promised overtime bonus as mentioned in the
policy.
3. Union Grievances
• This is rare, especially in a corporate setup where unions don't often exist. But in this type of a
grievance, the entire union complains against the management generally over contract
misinterpretation.

43. • The main causes of grievances
• There could be various causes for employees to register grievances. They are:
1. Economic: This usually concerns employee wages when they feel like they are being paid less than
others in the same band or grade, or when they receive inaccurate salary. Other examples could be
delayed payment of bonuses, arrears, hikes etc.
2. Work Environment: Sometimes, physical work conditions like too much heat or cold, cramped or
limited work space, low lighting, bad quality equipment, faulty appliances etc all constitute work
environment related grievances and are valid causes of it.
3. Supervisory: More often than not, supervisors, managers and other top management professionals
can also cause grievance to employees. Biased performance rating, berating, subtle insulting,
harassment of any sort, all constitute supervision related grievances.
4. Employee Relations: When colleagues who work together don’t gel well, have issues working
together on a project, get into too many conflicts etc. they can be a big cause of grievance.
5. Organizational Change: Sometimes, when there are policy changes or actual shifting of workplaces,
employees may find themselves unaligned to the changes and that can be a cause of grievance too.

44. Good Grievance Redressal System

45. 1. Document the issue/complaint: The employee should make an initial effort to resolve the grievance with
their immediate supervisor. The first step is to write a letter to the grievance redressal
committee/concerned department head/supervisor containing all relevant details of the issue. The
supervisor’s decision is final unless it is unreasonable, arbitrary, or irrational.
2. Problem identification: A supervisor should identify the problem and assess the situation.
3. Collecting the information: When the problem has been identified, the supervisor should collect all
relevant information about the grievance before developing a plan of action.
4. Analyze: To find the root of the problem, the supervisor must study various aspects such as the
employee’s history, frequency of occurrences and management practices.
5. Decision making & Implementation: The management work out several alternative courses of action,
and the consequences of each course on the employee and the administration are evaluated. A final
decision is reached based on which course of action will benefit all parties concerned and is implemented.
6. Take action: If a grievance refers to a higher authority under this procedure and the outcome does not
meet their expectations, both parties can agree to appoint an arbitrator.

47. • Arbitration involves an independent and impartial person called
an arbitrator (acting alone or chairing a panel) being appointed by
the Labour Relations Agency to make a decision on a dispute.
• The World Intellectual Property Organisation defines 'Arbitration'
as a procedure in which a dispute is submitted, by agreement of
the parties, to one or more arbitrators who make a binding
decision.
• In choosing arbitration, the parties opt for a private dispute
resolution procedure instead of going to court.

48. a. Compulsory Arbitration is a form of non-binding, adversarial
dispute resolution process in which either one or more than one
arbitrator will hear arguments of both the parties referring to
Arbitration, weigh the evidence provided and issue a non-binding
judgment on the merits after an accelerated hearing.
b. VOLUNTARY ARBITRATION
• Voluntary Arbitration is when parties voluntarily submit a dispute
to the arbitrator before or after approaching the court of law.
• The voluntary arbitration provision permits and liberates the
parties only when a civil cause is filed, to elect to resolve their
dispute by Arbitration.

49. TYPES OF ARBITRATION:
1. Domestic arbitration
2. International arbitration
• Domestic arbitration: The arbitration which happens in India and both the parties to the
dispute also belongs to India and the dispute is decided concerning the substantive law of
India.
• In this type of arbitration process, the dispute must arise in India, and parties are subjected
to the Indian jurisdiction.
• International arbitration: The arbitration which takes place within the territory of India or
outside India or it has any element which has foreign origin is termed as international
arbitration. The facts and circumstances of the disputes between the parties decide that of
which origin the law should apply to the dispute.

50. • In India the types of the arbitration process are classified into three:
1. Ad hoc arbitration
2. Institutional arbitration
3. Fast track arbitration
• Ad hoc arbitration refers to the process in which the parties
mutually arrange the arbitration for the settlement of the dispute.
• The parties are free to submit their own set of rules and procedures
as they don’t have to follow any set guidelines of any arbitration
institution.
• The essence of the ad hoc arbitration is the geographical jurisdiction.

51. • Institutional arbitration refers to the arbitration process which is
carried out by an arbitration institution.
• These institutions have their own set of rules and give a
framework for the arbitration to settle the dispute between the
parties.
• It has its form of administration to assist in the process.

52. • Fast track arbitration is the remedy to the lengthy and tedious
process of arbitration.
• The time is the main essence of fast track arbitration.
• In this process, all the methods which consume time in an
arbitration process have been removed and the process is made
much simpler.
• The arbitration process is also called private process as it is not
similar to the court proceedings it takes place privately.

53. Type of complaints come under the system?
Complaints that come under this category are:
1. Unfair treatment at work due to age and gender discrimination
2. Unfair promotion practices that do not follow meritocracy
principles (e.g., favoritism)
3. Inappropriate behavior from a manager or supervisor
4. Sexual harassment
5. Disputes between co-employees

54. • There are multiple ways in which HRs can gather employee grievances.
1. Direct Observation
Most good HRs have a knack for catching the pulse of employees. Just by keenly observing their talent and keeping a close,
empathetic ear to how they are feeling everyday, they are able to ascertain if someone is going through a
tough time whether at work or home. Moreover, with the help of pulse surveys enabled by their HRMS, HRs
are able to keep track of their employee sentiments to foresee any grievances.
2. Help Desk
2. By setting up virtual help desks through a smart HR tech, cloud-based solution, HRs can identify employee
grievances and categories them into various buckets for swift redressal.
3. Open Door Policy
It is important for employees to feel heard and they should have non-judgmental talking spaces within the organization to
openly discuss their issues. Enterprises need to build a culture of empathy to enable employee expression and
this can be furthered by the HR department by keeping an open door policy .
4. Exit Interviews
These are another way to identify grievances. When an employee leaves the organization, they are often able to openly
express things that they were hesitant to while employed. Well conducted exit interviews can highlight the
strengths and weaknesses of the organisation that can help HRs resolve any future grievances in advance.

55. Concept and steps of Grievance

56. Rights of Women Worker
• Women Labour
• Women form an integral part of the Indian workforce. According to the
information provided by the office of Registrar General & Census
Commissioner of India, As per Census 2011, the total number of female
workers in India is 149.8 million and female workers in rural and urban areas
are 121.8 and 28.0 million respectively.
• Out of total 149.8 million female workers, 35.9 million females are working as
cultivators and another 61.5 million are agricultural labourers.
• Of the remaining females workers, 8.5 million are in household Industry and
43.7 million are classified as other workers.
• As per Census 2011, the work participation rate for women is 25.51 percent as
compared to 25.63 per cent in 2001.
• The Work Participation Rate of Women has reduced marginally in 2011 but
there is an improvement from 22.27 per cent in 1991 and 19.67 per cent in
1981.
• The work participation rate for women in rural areas is 30.02 per cent as
compared to 15.44 per cent in the urban areas.

57. Women Rights under Indian Labour Laws
• Labour law apply to that area of activity where workers are working under a
contract of employment.
• Working women form a major thick peak of society. The women workers need
special protection and equal treatment under the law.
• To protect the women, many legislative provisions have been provided in
almost all labour statutes which address problems of women labourers in their
employment situation.
• The legislation relate to regulation of employment in dangerous occupations,
prohibition of night work, restrictions on carriage of heavy loads, wages,
health, gratuity, maternity relief, equal pay for equal work, social security, etc.,

58. • The rights contained in the labour laws has been divided in the
following heads:
Measures in regard to health safety and welfare for women: Unless
the workers are physically and mentally healthy they cannot perform
their duties effectively.
• The basic aim of the welfare services in an industry is to improve the
living and working conditions of workers and promoting the physical,
psychological and general well being of the working population.
• Thus, it is necessary to adopt measures to maintain their health and to
provide safety and welfare measures to the women workers and
regulate their working condition.

59. The Factories Act, 1948:
• The Act was drastically amended in 1987 whereby safeguards
against use and handling of hazardous substances for setting up
hazardous industries were laid down like washrooms facilities
separately for men and women, prohibition of work in hazardous
occupations where it provides that no women shall be allowed to
clean, lubricate or adjust any part of a prime mover of any
transmission machinery, lubrication or adjustment which would
expose the women to risk of injury from moving any part either
of that machinery, washing and bathing facilities are provided for
women workers and shall be kept clean,

60. • Crèche's (It is a nursery and a place where babies of working women
are taken care of while the mothers are at work) which provides that
in every factory there shall be a suitable room for the use of children
under the age of 6 years of such women and should be adequately
clean, ventilated, accommodation and sanitary condition, Hours of
work which provides that the daily hours of work of adult workers
have been fixed at 9(Section 54 of the Factories Act, 1948)but
sometimes men can work for more time but it does not permit
women workers to go beyond the limit, maximum permissible load,
prohibition of night work and may other safety measures.

61. THANK you

62. Module-3
Collective Bargaining & Negotiation

63. • Collective bargaining is the most successful democratic process in
establishing good labour management relations in the industry. So
Collective Bargaining is an important part of all managerial efforts in
integration.
• Both should bargain from a position of strength, there should be no
attempt to exploit the weakness or vulnerability of one party. It is
necessary for peaceful co-existence for their mutual benefits and
continued process.
• It is called “collective” because both employer and employee
act as a group rather than as individuals. It is “bargaining”
because the method of reaching an agreement involves
proposals and counter proposals, offers and counter offers.
•

64. •So, Union is bargaining on behalf of all
workers & Managers are bargaining on
behalf of total management. The
underlying idea of collective bargaining is
that the employer and employee relations
should not be intervened by third party.

65. • Collective bargaining is a process of negotiation between
employers and a group of employees aimed at reaching agreements
to regulate working conditions.
• The interests of the employees are commonly presented by
representatives of a trade union to which the employees belong.
• The collective agreements reached by these negotiations usually set
out wage scales, working hours, training, health and safety, overtime
, grievance mechanisms, and rights to participate in workplace or
company affairs .

66. • Definition of Collective Bargaining
• Collective bargaining is the process by which a labor union and employer
negotiate over the terms of the employment relationship.
• The primary goal of collective bargaining is the achievement of a collective
bargaining agreement between the union and employer.
• Definition By ILO
• “Negotiation about working conditions and terms of employment
between an employer, a group of employers or one or more employers
organizations, on the one hand and one or more representative workers
organizations on the other with a view to reaching agreement”.

67. Matters included in Collective Bargaining
•
1. Union recognition, security, union activities and responsibilities.
2. Management rights, management security and responsibilities.
3. Strikes an lock-outs.
4. Wages – wage structure, job evaluation, wage and bonuses.
5. Working cond. –hours of work, holidays, etc.
6. Discipline, layoff, suspension, discharge.
7. Grievance handing, arbitration.
8. Seniority regulations, promotion policy.
9. Health and safety.
10. Social security and employee benefit programme.
11. Work schedule, Lunch period, Rest period
12. Employees physical examination.
13. Discount on company products,
14. Product ceiling imposed by union.
15. Price of meals provided by company.

68. Objectives of Collective Bargaining
1. To provide an opportunity to the workers, to voice their problems on
issues related to employment.
2. To facilitate reaching a solution that is acceptable to all the parties
involved.
3. To resolve all conflicts and disputes in a mutually agreeable manner.
4. To present any conflicts / disputes in the future through mutually signed
contracts.
5. To develop a conductive atmosphere to foster good industrial relations.
6. To provide peaceful industrial relations in the organization.
7. To enhance the productivity of the organization by preventing strikes,
lock-outs etc.

69. Characteristics of Collective Bargaining
• Randle observes:”A Tree is known by its fruit. C.B. may best be known by its
characteristics.”
1) Group Activity: Parties involved are the employees & the management. Represented
by their union delegates & management through their team of designated officials. If
the need for a tripartite agreement arises, the government becomes the third party,
represented by the government officials.
2) Activity in Levels: Starting with a simple bipartite discussion between the
management & employees at unit/ plant level,-Industry/national level. The
intervention of the Govt. through arbitration or adjudication is the last level .

70. 3) Flexibility: Aims at a mutually agreeable & favorable solution to the problems between
Management. & employees. Compromise, accommodate, adjust, convince, and agree are the
different words that characterize collective bargaining. Thus, flexibility, in ideas and opinions,
demands and requests, and decisions and agreements in bargaining process. Give-and take
attitude and not take-it-or-leave-it attitude.
4) Win-win Situation: Main goal of collective bargaining is to reach a win-win situation. - Based
on the principle of mutual interest. All the parties involved should have a win-win attitude and aim
at reaching an agreement that is in the best interests of all the parties. Collective bargaining
facilitates the achievement of an agreement that is acceptable to all. It can succeed only when both
parties want it to succeed. It involves two – way traffic of communication.

71. 5) Builds Relationships: Continuous process, helps in building a
culture of strong relationships between Management. & employees
(TU). This helps in developing a conflict / dispute-free industrial
environment. It is industrial democracy at work. It offers self-
government in industry.
6) An Art and a Science: Collective bargaining is both an art and a
science. It is believed that a collective bargaining session is filled
with bluffing, oratory dramatics and manipulation displayed by both
the parties involved.
The statement might seem exaggerated, but this is what actually
happens in collective bargaining. An expert at C.B in someone who
has practiced the art well.

72. • Nature of collective bargaining
• Following are the essential prerequisites for collective bargaining.
1. Strong representative trade union : In collective Bargaining there
is existence of a strong representative trade union in the industry that
believes in constitutional means for settling the disputes.
2. Management tries to Integrate various parties:- Existence of a
strong and enlightened management which may integrate the
different parties i.e. employees, owners, government, consumers
and society.
3. Agreement on Objective :- In collective Bargaining, an agreement
is made on the basic objectives of the organization between the
employer and the employee and on mutual rights and liabilities.

73. 4. Method of Negotiation :- There is a democratic
methods of negotiation process. The existence of fact
finding approach and willingness to use new methods
and roles for the solution of industrial problems.
5. Necessary Records must be kept :- Proper records for
the problems should be maintained for future reference.
6. Shop floor (Plant) level :- Collective bargaining
should best be conducted at shop floor level. If there is
more than one plant of the firm, the local management
should be delegated proper authority to negotiate with the
local trade union.

74. 7. Unfair practices must be avoided :- In order to
make collective bargaining functions properly unfair
labour practices must be avoided by both the parties.
8. Arbitration :- The contract must include arbitration
clause in case there is a dispute. The institution of
collective bargaining represents a fair and democratic
attempt at resolving mutual disputes.

75. Collective Bargaining Process
• In many companies, agreements have a fixed time scale and a
collective bargaining process will review the procedural agreement
when negotiations take place on pay and conditions of employment.

77. (1) Prepare
• This phase involves composition of a
negotiation team.
• The negotiation team should consist of
representatives of both the parties with
adequate knowledge and skills for
negotiation.
• In this phase both the employer’s
representatives and the union examine
their own situation in order to develop the
issues that they believe will be most
important.
• A correct understanding of the main
issues to be covered and
knowledge of operations, working
conditions production norms and
other relevant conditions is
required.

78. (2) Discuss
• The parties decide the ground
rules that will guide the
negotiations.
• An environment of mutual
trust and understanding is also
created so that the collective
bargaining agreement would
be reached.

79. (3) Propose
• It involves the initial opening statements and the possible
options that exist to resolve them.
• In a word, this phase could be described as ‘brainstorming’.
• The exchange of messages takes place and opinion of both
the parties is sought.

80. (4) Bargain
• Negotiations are easy if a problem solving attitude is adopted.
• This stage comprises the time when ‘what ifs’ and ‘supposals’
are set forth and the drafting of agreements take place.

81. (5)Settlement
• Once the parties are through with the bargaining process, a
consensual agreement is reached upon wherein both the parties
agree to a common decision regarding the problem or the issue.
• This stage is described as consisting of effective joint
implementation of the agreement through shared visions, strategic
planning and negotiated change.

82. Levels of collective bargaining

83. Economy-wide (national)
•Bargaining is a bipartite or tripartite
form of negotiation between union
confederations, central employer
associations and government
agencies.
• It aims at providing a floor for lower-
level bargaining on the terms of
employment, often taking into
account macroeconomic goals.

84. (b) Sectoral bargaining:
• It aims at the standardization of the terms of employment
in one industry, includes a range of bargaining patterns.
• Bargaining may be either broadly or narrowly defined in
terms of the industrial activities covered and may be
either split up according to territorial subunits or
conducted nationally.
• (c) Enterprise Level:
• It involves the company and/or
establishment.
• It emphasizes the point that bargaining
levels need not be mutually exclusive.

85. Distributive negotiation
• Distributive negotiation, sometimes called zero-sum negotiation or win-
lose negotiation, is a bargaining approach in which one person succeeds
only if another person loses.
• A distributive negotiation usually involves a discussion of a single issue.
• For example, a sales business wants to enter a contract with a vendor for
IT services. The business wants the most IT services for the lowest price
possible, while the IT vendor intends to provide the lowest number of
resources for the highest price. Each party's desire to get a better deal
represents a distributive negotiation approach.

86. Integrative negotiation
• Integrative negotiation, sometimes called win-win or collaborative negotiation,
is a bargaining approach where negotiating parties attempt to reach a mutually
beneficial solution. Unlike distributive negotiations, integrative negotiations can
involve multiple issues.
• For example, an established fashion company and a cosmetics startup company
agree to collaborate on a product geared toward their shared target market. They
negotiate a contract that allows the cosmetics startup to gain greater exposure
and the fashion company to reach its financial and marketing goals.

87. • Here are a few tips you can use in an integrative negotiation:
• Take a principled approach. You can discuss your principles
during an integrative negotiation to build trust with the other
party.
• Discuss your needs and interests openly. Communicating
your goals in an integrative negotiation can promote
transparency and a positive relationship.
• Use bargaining to solve problems. In integrative negotiation,
both parties can use negotiations as an opportunity for
collaborative problem-solving.

88. •Lastly, multiparty negotiations include, as you might
imagine, multiple parties.
•These types of negotiation situations might include
municipal projects or international negotiations.
• Multiparty negotiations do require more complex
negotiating skills, but there is also more opportunity
to find tradeoffs and create value.

89. code of conduct
• A code of conduct is a collection or set of principles, rules and
policies about how employees can and cannot behave during
working hours.
• It outlines the internal guidelines for all employees and works as
an external statement for corporate values and commitment.

90. • Discipline is the regulation and modulation of human activities to
produce a controlled performance.
• The real purpose of discipline is quite simple.
• It is to encourage employees to confirm to established standards of
job performance and to behave sensibly and safely at work.
• Discipline is a procedure that corrects or punishes a subordinate
because a rule of procedure has been violated.· —Dessler,2001
cipline is essential to all organized group action.

91. Causes Of Indiscipline:
• The reasons could range anything from poor wages to, poor management
and the communication gaps between the union and management.

92. •The common causes of indiscipline are as
follows:
•1. Unfair Management Practices:
•Management sometimes indulges in unfair
practices like:
•Wage discrimination
•Non-compliance with promotional policies and
transfer policies
•Discrimination in allotment of work
•Defective handling of grievances
•Payment of low wages
•Delay in payment of wages
•Creating low quality work life etc.

93. Causes of indiscipline
1. Unfair and ineffective management – some of the managers tend to treat some of their employees
better than others, if only differently.
• The managers that involve in unfair practices may expect that the indiscipline is a matter of time.
Practices that managers should avoid are as follows: wage discrimination, work allotment discrimination,
low wages, delay of wages.
2. Bad working conditions – are one of the reasons for indiscipline in the workplace, when the reality of
everyday work is intolerable, there is no chance for good performance.
3. Discrimination – not all employees have anti-discriminatory policies in place. Some have the policies, but
don’t deal with discrimination early enough to stop its negative impact.
• Discrimination in the form of favoritism (promotion, salary increase) is one of the factors that immediately
cause indiscipline among employees. Currently all discrimination on the basis of: religion, age, gender,
nationality and race is illegal.

94. 4. Lack of rules and regulations – all companies should have policies that regulate employees
conduct in the workplace. To show how important the proper behavior is the managers should not
only provide the full information about the required code of conduct but offer training and
support.
• The information about acceptable behavior should not be written only, the proper conduct should
be trained, praised and rewarded.
5. Bad communication – managers should be able to listen to their employees and know their
concerns, but without effective communication it is not possible.
• Every individual wants to be heard and understood, the point of view of employees is usually the
source of innovative ideas, hence the managers have to pay attention to what their staff say.
• Without communication there is no mutual understanding. In companies, where the lack of
discipline is observed the communication channels are usually broken or non-existent.

95. 6. Lack of attention to arising problems – all problems in the workplace
have to be dealt immediately. It is not advisable to delay the procedures that
could help to solve the problems employees have.
7. Not enough supervision – each team needs to have contact with their
immediate supervisor.
• Not all issues are serious, not all questions vital, but the presence of the
supervisor allows to resolve all the minor issues on the spot.
• The person, who knows how to deal with disciplinary problems and has the
right attitude is able to integrate the employees into effective, well-
organized teams.

97. Discipline
• Discipline is the backbone of healthy industrial relations.
• The promotion and maintenance of employee discipline is essential for
smooth functioning of an organization.
• Employee morale and industrial peace are definitely linked with a proper
maintenance of discipline.
• Disciplinary action can also help the employee to become more effective.
• The actions of one person can affect others in the group.

98. • The Organization ‘Discipline’ refers to the State of employee’s self-
control and effectiveness in his work.
• It indicates the development of genuine team work.
• Discipline implies a state of order in an organization.
• It means proper appreciation of the hierarchical superior
subordinate relationship.
• The willing cooperation for and the observance of the rules of the
organization constitutes the essence of discipline.

99. • Discipline means orderly behavior - It means voluntary and
willing compliance of rules and regulations and instructions and
also development of right habits of conduct in work with
others at the work-place.

100. Why do we want Discipline?
(a) Discipline is essential in any organization for improving the
employee morale as well as to increase the productivity which is
the ultimate goal of any organization.
(b) Discipline is of utmost importance for harmonious working with
a view to achieve Company’s objectives.
(c) It is moral responsibility of the employer not to allow the
minority of employees who are indiscipline to affect the life of
majority.

101. • We have to consider discipline in its positive meaning i.e. ‘Training of mind
that develops self-control character, orderliness and efficiency’.
• It also means punishment. But there is a general impression that obedience to
rules and punishment for their breach constitute the main aspects of discipline in
an organization.
• Every organization wants its employees’ behavior to be in conformity with the
required system which it has prescribed in order to achieve the
organizational goals.
• Thus, in brief, discipline is orderly conduct by the employee in an expected
manner.
• The purpose of discipline is to encourage employees to behave sensibly at
work, that is, adhere to rules and regulations.
• Disciplinary action is called for when an employee violates one of the rules.

102. How does Indiscipline arise?
• In most of the cases, indiscipline of a worker is the expression of his
reaction to his environment. Usually the causes of indiscipline are :
(a) Lack of awareness of Company’s rules and regulations;
(b) False promises made by superiors;
(c) Absence of any procedure to handle grievances;
(d) No action taken when required;
(e) Personal frustrations and misunderstandings

103. Disciplinary Action
• A disciplinary action is a reprimand or corrective action in response to
employee misconduct, rule violation, or poor performance.
• Depending on the severity of the case, disciplinary action can take different
forms.

104. • Disciplinary action provides a means of recourse if an employee
violates company policy or the code of conduct.
• By enforcing a disciplinary action policy, employers can cultivate a
fair, consistent, and healthy workplace culture.
• A consistent disciplinary policy protects employees, the company,
and its customers.

105. Common Types of Disciplinary Actions
1. Employers can use several types of disciplinary action to reprimand employees for negative
behaviors or violations of the company’s code of conduct.
These actions are just a few of the options employers can use to address misconduct:
2. Verbal warning against the behavior
3. Additional training in areas contributing to the behavior
4. Written warning in the employee’s file
5. Official meeting to discuss the behavior with supervisors and management team
6. Reduction of job perks and benefits
7. Suspension of duties
8. Demotion
9. Termination

106. • There are certain instances, however, that should always result in
disciplinary action because of the egregious nature of the
misconduct.
Examples include:
1. Threats or acts of violence, especially if against employees or
customers
2. Sexual harassment or assault, especially in the workplace
3. Fraud, including unauthorized use and misappropriation of
funds
4. Theft
5. Discrimination

107. “Workplace" includes,- (i) any department, organization, undertaking,
establishment, enterprise, institution, office, branch or unit which is established,
owned, controlled or wholly or substantially financed by funds provided directly
or indirectly by the Central Government;
(ii) hospitals or nursing homes;
(iii) any sports institute, stadium, sports complex or competition or games venue,
whether residential or not used for training, sports or other activities relating
thereto;
(iv) any place visited by the employee arising out of or during the course of
employment including transportation provided by the employer for undertaking
such journey;
(v) a dwelling place or a house related to or connected in course of official
dealings.

108. • MISCONDUCT: Without Prejudice to the generality of the term ‘misconduct’, the following acts of
omission and commission shall be treated as misconduct: -
1) Theft, fraud or dishonesty in connection with the business or property of the Company or of a
subsidiary or of property of another person within of the Company.
(2) Taking or giving bribes or any illegal gratification.
(3) Possession of pecuniary resources or property disproportionate to the known sources of income by the
employee or on his behalf by another person, which the employee cannot satisfactorily account for.
(4) Furnishing false information regarding name, age, father’s name qualifications, ability or previous
service or any other matter germane to the employment at the time of employment or during the course
of employment.
(5) Acting in a manner prejudicial to the interests of Company.
(6) Willful insubordination or disobedience whether or not in combination with others, of any lawful and
reasonable order of this superior.
(7) Absence without leave or over-staying the sanctioned leave for more than four consecutive days
without sufficient grounds or proper or satisfactory explanation.

109. (8) Habitual late or irregular attendance or willful absence from duty.
(9) Neglect of work or negligence in the performance of duty including malingering or slowing down
of work.
(10) Damage to any property of the Company.
(11) Interference or tampering with any safety devices installed in or about the premises of the
Company.
(12) Drunkenness or riotous or disorderly or indecent behavior in the premises of the Company or
outside such premises where such behavior is related to or connected with the employment.
(13) Gambling within the premises of the establishment.
(14) Smoking within the premises of the establishment where it is prohibited.
(15) Collection without the permission of the competent authority of any money within the premises
of the Company except as sanctioned by any law of the land for the time being in force or rules of
the Company.

110. (16) Sleeping while on duty.
(17) Commission of any act which amounts to a criminal offence involving moral
turpitude.
(18) Absence from the employee’s appointed place of work without permission or
sufficient cause.
(19) Purchasing properties, machinery, stores etc. from or selling properties,
machinery, stores, etc. to the Company without express permission in writing from
the Competent Authority.
(20) Commission of any act subversive of discipline or of good behavior.
(21) Abetment of or attempt at abetment of any which amounts to misconduct.
(22) Misuse of any advance or non-compliance with the provisions of the rules for
grant of any advance.
(23) Indulging on any act of sexual harassment to women at her work place.

111. Prohibition of sexual harassment of women
• (1) No employee shall indulge in any act of sexual harassment of any woman at any work place.
(2) Every employee who is in-charge of a work place shall take appropriate steps to prevent sexual
harassment to any woman at the work place.
• Explanation. - (I) For the purpose of this rule, - (a) "sexual harassment" includes any one or more
of the following acts or behaviour (whether directly or by implication) namely : -
• (i) physical contact and advances; or
• (ii) a demand or request for sexual favours; or
• (iii) making sexually coloured remarks; or
• (iv) showing pornography; or (v) any other unwelcome physical, verbal, non-verbal conduct of a
sexual nature.

112. • (b) the following circumstances, among other circumstances, if it occurs
or is present in relation to or connected with any act or behavior of sexual
harassment may amount to sexual harassment : -
• (i) implied or explicit promise of preferential treatment in employment; or
• (ii) implied or explicit threat of detrimental treatment in employment; or
• (iii) implied or explicit threat about her present orfuture employment
status; or
• (iv) interference with her work or creating an intimidating or offensive or
hostile work environment for her; or
• (v) humiliating treatment likely to affect her health or safety.

113. • Complaint is the starting point of any disciplinary action. For
taking disciplinary action against any employee for having
committed an act of misconduct, the management should
invariably get a specific written complaint.
• Complaint is nothing but a clear, sequential narration of the
facts of incidence of indiscipline by the complainant, in the form
of a report to his superior.

114. • Since any disciplinary action may go hay-way if the complaint is
not proper, every complainant
• should bear in mind the following :
• (a) Do not rely on memory. Reduce to writing whatever has
happened, immediately.
• (b) Submit your complaint in the shape of report of misconduct
without any delay to
• superiors.
• (c) Avoid dictating the complaint to somebody else.
• (e) Do not add your impressions or guesses but narrate the actual
facts.
• (f) Take written statements of all whoever has any facts relating to
the complaint or
• witnessed the incident.

115. The Report of misconduct should invariably give the following details :
• (a) Full name of the person who committed the act of misconduct;
• (b) Designation;
• (c) Punch Card No./Employee No.;
• (d) Section/Deptt./Region;
• (e) Shift or Relay in which the employee was working;
• (f) Date and time of incident;
• (g) Place of occurrence;
• (h) Details of misconduct;
• (i) Names of witnesses, if any;
• (j) Recorded Statements, if any.

117. • Charge-sheet is a memorandum of charges or allegations levelled against the employee
• which are acts of misconduct as per the Conduct, Discipline and Appeal Rules.
• Check-List for preparation of Charge-Sheet
• While framing a Charge-sheet, the following items may be kept in mind so that nothing
• relevant would be missing from the Charge -sheet :
• a) Date of charge sheet.
• b) Correct Name and Card No./Employee No. of delinquent employee.
• c) Specify date of incident.
• d) Description of incident.
• e) Reproduce the language in verbatim if there are words of abuse, defamation or
• threat.
• f

118. • ) Give reference of relevant rules as Conduct, Discipline and Appeal Rules.
• g) Specify within how much time and to whom the reply should be submitted.
• h) Check the authority competent to issue the Charge-Sheet (See Conduct,
Discipline
• and Appeal Rules or Delegation of Powers, as the case may be).
• i) Decide whether employee is to be kept under suspension or not.
• j) Decide whom to send the copies of Charge-sheet.