1. L
IA S
R N
T O
S I
U T S
D A
N L W
I E L A
R R
& AB O
L
2. DEFINING IR
Industrial relations encompasses a set of phenomena, both inside and outside the
workplace, concerned with determining and regulating employment relationship
Relationship between management and employees or among employees and their
organization that characterize and grow out of employment.
3. THEORIES AND CONCEPTS USED TO ANALYSE INDUSTRIAL RELATIONS
Approaches Used to Define Industrial Relations (1)
(1) Institutional-based definitions:
industrial relations are the sum of institutional processes that establish
and administer the rules regulating workplace relations
(2) Social Psychology-based definitions:
industrial relations are the sum of social psychological interactions
between individuals
(3) Class-based definitions:
industrial relations are the sum of institutions, interactions and
processes that are a product of wider social and economic influences, in
particular the class divisions of contemporary capitalism
4. Approaches Used to Define Industrial Relations (2)
Ddefinitions that seek to include all matters contained in the first three
definitions within other terms:
(4) Human Resource Management:
contracts of employment (involving trade unions, worker collectives,
labour courts and government agencies), as well as management of
conflict arising out of the personal interactions of individuals in the
workplace, are part of labour management functions ( i.e. recruitment,
selection, training, development, performance management, and so on)
(5) Employment Relations (or Employee Relations):
contracts of employment (involving trade unions, worker collectives,
labour courts and government agencies), as well as the management of
conflict arising out of the personal interactions of individuals in the
workplace, are part of workplace relations, together with the normal
functions of Human Resource Management.
5. OBJECTIVES OF IR
To enhance economic status of worker
To avoid industrial conflicts and their consequences
To extend and maintain industrial democracy
To provide an opportunity to the worker to have a say in the
management decision making
To regulate production by minimizing conflicts
To provide forum to the workers to solve their problems through mutual
negotiations and consultations with management
To encourage and develop trade union in order to develop workers
collective strength
6. NATURE OF IR
IR arise out of employer employee relations
IR is a web of rules: formed by the interaction of Govt, industry & labor
IR is multi dimensional: influenced by complex set of institutional. economic &
technological factors
IR is dynamic and changing: keep pace with employee expectations, trade
unions, employer associations and other economic and social institutions of
society
IR is characterized by forces of conflict and compromise. Individual differences
and disagreements resolved through constructive means.
Govt influences and shapes IR: with its laws, rules, agreements through
executive and judicial machinery
Scope of IR is very wide as it covers grievances, disciplinary measures ethics,
standing orders, collective bargaining, participatory schemes and dispute
settlement mechanism etc
Interactive and consultative in nature: in resolving conflict,controversies and
disputes between labor and management.
7. SCOPE OF IR
Management – Union relationship
Employer – Employee relationship
Relationship amongst various groups of employees
Effect of extraneous factors like state, socio-political- economic factors on
workplace relationships
8. APPROACHES TO INDUSTRIAL RELATIONS
Approaches to organisations
Unitary Pluralistic Marxist
Authoritarian Co-operation Evolution
Conflict
Paternalism Revolution
Approaches to industrial relations
Input Conversion Output
Institutions
Conflict Regulation
and
(differences) (rules)
processes
Human Systems Social action Control of
resource the labour
management process
Wider approaches to industrial relations
Labour market Comparative
9. UNITARY APPROACH
IR is grounded in mutual cooperation, individual treatment, team work
and shared goals.
Work place conflict is seen as temporary aberration, resulting from poor
management
Employees who do not mix well with organization culture
Unions cooperate with the management
Management’s right to manage is accepted because there is no ‘we they”
feeling
Underlying assumption is that everyone benefits when the focus is on
common interest and promotion of harmony
Based on reactive strategy. Direct negotiation with employees
Participation of Govt, tribunals and unions are not sought or are seen as
being necessary for achieving harmonious employee relation
10. PLURALISM
(CONFLICT APPROACH )
Pluralism is belief in the existence of more than one ruling principle, giving rise to
a conflict of interests.
The pluralist approach to IR accepts conflict between management and workers
as inevitable but containable through various institutional arrangements ( like
collective bargaining, conciliation and arbitration etc) and is in fact considered
essential for innovation and growth.
It perceives organizations as coalitions of competing interests , where the
management’s role is to mediate among the different interest groups.
It perceives trade unions as legitimate representative of employee interests
It also perceives stability in IR as the product of concessions and compromises
between management and unions.
Employees join unions to protect their interests and influence decision making by
the management. Unions thus balance the power between management and
employees. In pluralistic approach a strong unions is not only desirable but
necessary
11. MARXIST APPROACH
Marxists like pluralists also regard conflict as inevitable but see it as a product of
capitalistic society where as pluralist believe that the conflict is inevitable in all
organizations
For Marxists IR has wider meaning. For them conflict arises not because of rift
between management and workers but because of the division in the society
between those who own resources and those who have only labor to offer.
Marxist approach thus focuses on the type of society in which an organization
functions.
Industrial conflict is thus equated with political and social unrest
Trade Unions are seen both as labor reaction to exploitation by capitalists, as-
well-as a weapon to bring about a revolutionary social change. Wage related
disputes as secondary
For them all strikes are political and they regard state intervention ( via
legislations and creation of Industrial Tribunals ) as supporting management’s
interests, rather than ensuring a balance between the competing groups.
12. SYSTEMS APPROACH
IR - a social sub-system within the econ. & political
systems
Components
actors
contexts (influences & constraints on decisions & action e.g. market,
technology, demography, industrial structure)
ideology - beliefs affecting actor views - shared or in conflict
rules - regulatory elements i.e. the terms & nature of the employment
relationship developed by IR processes
13. OTHER APPROACHES OF INDUSTRIAL RELATIONS
( DIFFERENT SCHOOLS OF THOUGHT )
PSYCHOLOGICAL APPROACH
Differences in the perceptions of labor and management wrt factors influencing their relations i.e. wages.
Benefits, services and working conditions etc
Dissatisfaction compels workers to turn aggressive and resort to strike, lockouts and gherao etc.
SOCIOLOGICAL APPROACH
Sociological factors such as value system, customs and traditions etyc affect the relations between labor
and management
HUMAN RELATIONS APPROACH
Human behavior is influenced by feelings, sentiments and attitudes. As per this approach humans are
motivated by variety of social and psychological factors
like economic and non-economic awards to be used.
GIRI APPROACH
Collective bargaining and joint negotiations be used to settle disputes between labor and management.
Outside interference to be avoided.
GANDHIAN APPROACH
worker's right to strike but cautioned that this right be exercised in just cause and in a peaceful and non-
violent manner for minimum wages etc like ‘satyagrah’- Non violent non- cooperation
15. PARTIES TO IR
EMPLOYEES EMPLOYERS
EMPLOYEE EMPLOYER-EMPLOYEE EMPLOYER
ASSOCIATIONS RELATIONS ASSOCIATION
COURTS
GOVERNMENT &
TRIBUNALS
16. ROLE OF WORKERS
WORKERS and their ORGANIZATIONS( Trade Unions or Associations )
Trade unions have a protecting role of safeguarding workers interests,
Regulating function of ensuring implementation of statutes / Acts
Ensuring non-violation of worker’s rights
Trade Union Act provides Status and Authority for the power vested in them
This power is used for negotiating Wage Interests, better benefits and service
conditions, concessions, more amenities and welfare schemes
Structure of Workers’ organization or Trade unions differs from country to
country
17. ROLE OF MANAGEMENT
An organization is represented through officials designated in the
organization structure for coordination of activities relating to:
Administering employee benefits
Regulating terms and condition of employment
Providing welfare and social security benefits
Coordination is done through graded hierarchical and formal
communication channels of orders and directives
Style and manner in which employer organizations get work and regulate
the terms and conditions of employment affects the industrial relations
of the unit.
18. ROLE OF GOVERNMENT
Govt or state machinery regulates the relationship between workers’
organizations and employers’ organizations.
It does it through :
- Statutes and legislations,
- The judiciary- labor courts industrial tribunals
- An executive machinery- that lays down rules, procedures and
gives awards and monitors them
20. FACTORS AFFECTING EMPLOYEE RELATIONS
INTERNAL FACTORS:
Attitudes of management to employees and unions
Attitudes of employees to management and unions
Attitudes of unions to unions to management and employees
Present and likely future strength of unions
Effective and agreed procedures for discussing and resolving grievances or handling disputes within the company
Inter union rivalries in case of more than one union
Effectiveness and capability of managers and supervisors in resolving grievances and handling disputes.
Company's strategy wrt expansion, diversification, contraction , stabilization, turnaround
and stagnation etc
Quality of work life ( QWL), growth and developmental opportunities
Degree of Autonomy and Empowerment given to employees
;
21. FACTORS AFFECTING EMPLOYEE RELATIONS
EXTERNAL FACTORS:
Militancy of unions- nationally or locally
Authority and effectiveness of the employer’s family
The extend to which bargaining is carried out at national, local or plant
level
The effectiveness of any national or local procedure agreements that may
exist
Employment situation nationally or locally
Legal framework within which IR exists
22. SOCIAL SECURITY
( IMPACT ON EMPLOYEE RELATIONS )
Social security is one of the key components of labor welfare
Labor welfare refers to all such services, amenities and facilities to the
employees that improve their working conditions as-well-as their
standard of living
Social security benefits provided by an organizations should protect not
only their employees but also their family members including financial
security and health care etc
Social security envisages that the employee shall be protected against all
types of social risks that may cause undue hardship to them in
fulfilling their basic needs.
Accidents, job losses, retirement, sickness, death while on duty-
these are realities of working life and leave a person and his
dependents vulnerable
Social security is an attempt by the employer and the state io institute
measures that mitigate such social risks
23. MAJOR LEGISLATIONS
India being a welfare state has taken up itself the responsibility of
extending various benefits of social security and social assistance to its
citizens.
Although the constitution of india is yet to recognize social security as a
fundamental right, it does require state to promote the welfare of the
people by providing social, economic and political justice
Constitution requires companies to make effective provisions for making
effective provisions for securing right to work, to educate and public
assistance in case of unemployment, old age, sickness and disablement.
Securing just and humane conditions of work. Raise level of nutrition
and standard of living, improvement of public health etc
A social security division has been set up under the ministrybof labor and
employment.
In the context of labor , social security aims at reducing risks against
loss of earnings or earning capacity due to old age,illness or work-
related injuries.
24. Social security to the workers is provided through 5 major Acts:
1. The Employees State Insurance act, 1948
2. Employees’ provident Fund and Miscellaneous provisions Act
3. The Worker’s Compensation Act
4. The Maternity Benefit Act
5. The payment of Gratuity Act
In addition there are large number of welfare funds also for some specific
segments
Major thrust of social security relating to labor is on:
a) Provisions relating to medical facilities, compensation benefits
and insurance coverage incase if accidents, incapacity, illness
etc..
b) Provisions relating to provident fund and gratuity
26. WHAT IS A TRADE
UNION?
Definition: An organization of workers or
employees formed mainly to
_ Negotiate with the employers on various
employment related issues
Improve the terms and conditions at their workplace
Enhance their status in society
In most countries, there are laws governing the
formation, membership and administration of
trade unions.
27. ORIGIN & GROWTH OF TRADE UNION
MOVEMENT
Industrialization brought about new economic and social order in societies. TU
emerged as a result of industrialization in new social order
First workers’ union in India under the leadership of Mr Lokhande was
developed in 1890
Beginning of labor movement in the modern sense started after the outbreak of
World War I
Economic. Political and social conditions influenced the growth of trade union
movement in India.
Establishment of ILO helped the formation of TUs in the country
In 1920 AITUC( All India Trade Union Congress) was formed- the 1st All India
trade union
World War II brought splits in AITUC. Efforts of Indian National Congress
resulted in the formation of INTUC( Indian National Trade Union Congress)
Socialists separated from AITUC formed HMS( Hind Mazdoor Sabha) in 1948
Some other unions were also formed. They were BMS ( Bhartiya Majdoor Sangh)
in1955, HMP( Hind Majdoor Panchayat) in 1965, CITU( Centre of Indian
Trade Union ) in 1970
28. PRINCIPLE OF TRADE UNION
1. UNITY: Unity is strength
2. Workers must not be discriminated wrt
EQUALITY:
caste, creed, sex etc.
Each worker should get equal pay for equal
work
3. Security of their employment and their
SECURITY:
families must be safeguarded
29. OBJECTIVES OF A
1.
TRADE UNION
Collective bargaining
Represent members to negotiate with employers, for better wages and
conditions of employment
1. Safeguard jobs
Protect jobs of members
1. Cooperate with employers
For the benefits of members, resolve disputes in a mutually acceptable manner
30. OBJECTIVES OF A TRADE
UNION activities
4. Political
- Support pro-union political parties
5. Social activities
- Support members with recreation
facilities and benefits for
unemployment, illness, retirement,
death
31. TYPES OF UNIONS
1. Craft union
Same craft or occupation
1. General union
For unskilled workers
1. Staff union
Non-manual workers
32. TYPES OF UNIONS
4. Industry union
Same industry, regardless of skills,
occupation or job
4. House union (company or enterprise
union)
All members are from the same company
regardless of occupation or job
33. WHY WORKERS JOIN
UNIONS
1. Higher wages and better working conditions
Collective bargaining with employer
2. Job security
More secured with collective agreement
3. Social need
Meet co-workers from other departments or companies
34. WHY WORKERS JOIN
UNIONS
4. Upgrading of skills
Attend training courses organized by union
5. Peer pressure
Colleagues are members
6. Self-fulfillment
Serve other members
35. OBJECTIVES/IMPORTANCE OF TRADE UNIONS
Wages & salaries
Policy matter but differences in implementation, so comes the role of trade
union
Working conditions
safeguarding workers health: Lighting & ventilation, sanitation, rest
rooms, safety equipments ( hazards free atmosphere , drinking water,
refreshments, working hours, leave & rest, holidays with pay, job
satisfaction, social security benefits and other welfare measures
Discipline
Protect workers from victimization by management- transfers,
suspensions, dismissals etc
Personal policies
Fighting against improper implementation of personnel policies wrt
recruitment, selection, promotion, transfer, training etc..
Welfare
Solving difficulties of workers through collective bargaining wrt
sanitation, hospitals, quarters, schools, colleges and other basic amenities
Employer- employee relations
Bureaucratic attitude and unilateral thinking of mgmt may lead to
conflicts
Trade unions go for constant negotiations for industrial democracy and
peace.
36. Negotiating machinery
Based on ‘give and take principle’, negotiations continue till
parties reach an agreement. Protect interests of workers
through collective bargaining.
Safeguarding organizational health
Methods evolved for grievance redressal, techniques adopted
to reduce
absenteeism and labor turnover. upgrading skills- attend
training courses organized by
unions
37. ACTIVITIES OF TRADE UNION
ECONOMIC: Improved economic status, shorter working day, improvement in
living and working conditions, better health & safety standards, upgrading
welfare facilities, reducing inequalities- both internally & externally
POLITICAL: Seeking / obtaining political power through political affiliations,
lobbying activities to influence the cause of labor and legislations,
participating & representing workers on bipartite forums,
developing revolutionary ideologies among workers, protesting against Govt.
decisions
SOCIAL: Initiating & developing workers’ education system, organizing welfare
& recreational facilities, providing monitory and other help during period of
strike and economic distress, running cooperative welfare schemes and
societies, hosing needs/ community development, organizing cultural functions
& social welfare programmes
NATIONAL / INTERNATIONAL LEVEL: Representing workers at the national
level on advisory committees, associating with national federations for unity &
solidarity, Raising funds in case of national / International calamities or
tragedies
38. FEATURES OF AN EFFECTIVE TRADE UNION
Internally democratic
Have a strong leadership
Exhibit a responsibility towards their worker
members
Committed to promote industrial peace and
harmony
Inclined towards collective bargaining that is
collaborative and not competitrive
Possess financial security
Adaptable to change
39. INDUSTRIAL DISPUTE AND INDIVIDUAL
DISPUTE
Industrial dispute means any dispute or difference
between employers and employers, or between
employers and workmen or between workmen
and workmen, which is connected with
employment or non-employment or the terms of
employment .The dispute has to be between
plurality of workman and employer
Individual workman cannot raise an industrial
dispute
40. INDIVIDUAL DISPUTE DEEMED AS INDUSTRIAL
DISPUTE
1965 amendment to I.D ACT and insertion of 2A.
Where any employer discharges, dismisses,
retrenches or otherwise terminates the services of
an individual workman, any dispute or difference
between that workman and his
employer…….shall be deemed to be an industrial
dispute notwithstanding that no other workman
nor any union of workmen is a party to the
dispute.
This definition is not applicable to disputes short of
termination
41. FORMS OF UNREST/DISPUTES
STRIKES: A strike is spontaneous and concerted refusal of work and withdrawal
of labor from production temporarily. It is a collective stoppage of work for
pressurizing their employers to accept certain demands.
TYPES OF STRIKES:
SYMPATHETIC STRIKE: To show sympathy with workers in other industries
GENERAL STRIKE: Strike by all or most of the unions in an industry or a region
UNOFFICIAL STRIKE: Strike undertaken without the consent of the unions
SECTIONAL STRIKE: Refusal of a section of a given class of workers to perform their
normal duties
BUMPER STRIKES: to paralyze the industry firm by firm
SIT DOWN /TOOL DOWN/PEN DOWN: Strike when unions plan strike and workers cease
to perform but do not leave the place of work:
SLOW DOWN STRIKE: Go-slow tactic, workers do not stop working but dot perform at their
normal pace
LIGHTNING STRIKE: Workers may go on strike without notice or at very short notice with
an element of surprise
HUNGER STRIKE: To gain sympathy from public and get noticed by employer workers may
decide to forego food for a specified period. Such non-violent protests generally bring
moral pressure on employers
42. FORMS OF UNREST/DISPUTES
LOCK-OUTS:
It is the counterpart of strike.
It is the weapon available with employer to close down the factory till the workers agree to
resume work on the conditions laid down by employer.
If it is impossible to meet the demands of workers, employers may decide o go for lock-out
An employer may also pull down the shutters so as to bring psychological pressure on the
workers to agree to his conditions or face the closure of unit
GHERAO:
Gherao means to surround
Group of workers initiate collective action aimed at preventing members of he management
from leaving the office. This can happen outside the premises too
Persons who atre under gherao are not allowed to move for a long time, sometime even
without food or water
National commission on labor has refused to accept it as a form of industrial protest
PICKETING and BOYCOTT
While picketing workers carry/display signs ,banners and placards( In connection with
dispute), prevent others from entering the place of work and persuade others to join the
strike
Boycott aims at disrupting the normal functioning of an enterprise, Through forceful
and negative behavioral acts, strikers prevent others not to cooperate with employer
43. MANAGEMENT ACTION TO COUNTER STRIKES
EMPLOYER’S ASSOCIATION:
Employers may form their unions to collectively oppose the working class and put
pressure on trade unions
LOCKOUT:
It is the counterpart of strike.
An employer may close down the place of employment temporarily. It is very
powerful weapon available with employer to pressurize workers till they agree
to resume work on the conditions laid down by employer.
If it is impossible to meet the demands of workers, employers may decide o go for
lock-out
An employer may also pull down the shutters so as to bring psychological pressure
on the workers to agree to his conditions or face the closure of unit
TERMINATION:
Employer may resort to suspension or disciplinary action leading to termination
of workers on strike. The list of employees so suspended or dismissed may be
circulated to the other employer so as to restrict their chances of getting
employment with other employers.
44. CHANGING ROLE / PUBLIC PERCEPTION
TRADE UNIONS
Change in the attitude of unions towards management, Industry, Govt.
and economy
Unions becoming increasingly matured, responsive and realistic
Gone are the days of frequent strikes, bandhs, gheraoes and violence
Unions are reconciled to economic reforms. The accent is on opposing the
adverse impact of reforms and not the reforms
Discussion among trade union circles is now on issues like productivity,
TQM, Technology, competition, MNCs, exports etc..
Unions aware of the Right Sizing and feel the need for suplus labor fat to
be shed
Days when unions were affiliated with political parties are gone by.
Today thrust is on de- politicization of unions
Experience of politically free unions is pleasant, reinforcing the belief that
farther the unions are from politics, more advantageous it is for them
45. Workers association in our country is highly fragmented and the consequence is
multiplicity of unions, which weakens the bargaining strength of employees.
One of the defects of trade union movement in India has been the phenomenon of
outside leadership. The fault of outside leadership lies with trade Union Act,
1926 itself. The act permitted outside participation to the extent of 50% of the
strength of office bearers in a union.
Trade Unions are at cross roads. Their membership is declining, Their political
support is waning, public sympathy is receding, their relevance itself is at
stake
Managements on the other hand are on the offensive. They are able to force
unions to accept terms and conditions. Workers,officers and managers are
mercilessly terminated in the name of restructuring, downsizing etc
Professionalisation of trade unions movement is another trend witnessed, they are
trying to upgrade their leadership quality. Topics lie IT, strategic planning,
diversity, networking and productivity etc now form inputs in training
programmes organized for union leaders
46. TRADE UNIONISM IN INDIA TODAY
Unionization according to industry/region/state
70,000 registered trade unions , many not regisered
9 central unions, all affiliated to political parties
2 % of the union force unionized
PSUs: Industrial level collective bargaining in coal/steel,
enterprize level elsewhere
Private sector: Plant level collective bargaining
Union density according to the size of of industry
Craft unions in Govt transport sector
Unionization in India under recession
Twin battle against Inter Union Competition and assertive
management
47. MAJOR PROBLEMS FACED BY TRADE UNIONS
IN INDIA
Outside or political leadership
Multiplicity of trade unions
Small size of unions
Low membership
Uneven growth
Poor financial position
Low level of knowledge of labor legislation
Fear of victimization
48. TRADE UNION ACT (1926)
It legalizes the formation of trade unions by allowing employees the right to form
and organize unions and also strengthen bargaining power of workers
Act aims to provide law for the registration of trade unions and get it registered
under the act
Permits any seven persons to form a union
OBJECTIVES
Lay down conditions governing the registration of trade unions
Defines obligations of trade unions
Prescribe rights and liabilities of a registered trade union
STATUS OF A REGISTERED UNION
It becomes a body corporate
It gets a common seal
It can buy and hold movable and immovable property
It can enter into contracts with others
It can sue and be sued in its name
49. TRADE UNION ACT (1926)
REGISTRATION:
A trade union formed with at least 7 members may apply for registration with following
documents
A copy of the rules of trade union
Name, occupation and addresses of members
Name of trade union and address of its office
Office Bearers of the trade unions
In case already in operation- submit statement of accounts/assets and liability statement
OBLIGATIONS:
It should have a name, clearly laid down objective, membership list readily available, purpose
for which funds shall be utilized, members to be the actually working persons ,
Honorary/temporary office bearers, conditions for benefits/fines, conditions under which rules
shall be amended, manner in which office bearers shall be appointed, safe custody of funds
and manner in which trade union shall be dissolved
RIGHTS AND LIABILITIES
Section 15 of the Act provides for certain obligations and liabilities of registered unions
It also stipulates the purpose for which funds can be utilized
THE AMALGAMATION OF TRADE UNIONS:
Any two or more registered unions may get amalgamated together as one trade union
50. INDUSTRIAL DISPUTE ACT (1947)
Ever expanding complex multi product/project companies with diverse and conflicting
interests of workmen and employers, growing labor consciousness, resulting in strikes
and lockouts, lead to the outcome of
Industrial dispute Act, 1947
Main provisions of the Act are:
Settlement machinery
-Provides suitable machinery for investigation, just, equitable and peaceful settlement of industrial
disputes and aims to provide justice both to employers and workmen
- Collective bargaining, Negotiation
Aims at promoting security, amity and good relations between employer and employee or
between employers and workmen or among workmen
Prevent illegal strikes and lockouts and explains the contingencies when these can be
lawfully resorted to or when these can be declared illegal or unlawful.
Provide conditions and relief to workmen in the matters of lay-offs, retrenchment,
dismissals and victimization
Last in first out in a retrenchment case or specific reasons in case of others
Provides conditions under which an industrial unit can be closed down
60 days notice to be given of intention to close down any undertaking
Compensation to workmen in case of closing down
Get the workmen the right of collective bargaining and promote conciliation
Lists down unfair labor practices on the part of both parties introduced in 1984
51. MACHINARY FOE SETTLEMENT OF INDUSTRIAL
DISPUTES
KEY PROVISIONS OF ID ACT:
COLLECTIVE BARGAINING:
It is a technique by which disputes as to conditions of employment are resolved amicably, by
agreement rather than coercion
NEGOTIATION
CONCILIATION AND MEDIATION: It is facilitated negotiation, essential in public utility
services, Binding on parties to the disputes
ARBITRATION:
Voluntary Arbitration: agreement between workman and management, Send copy to the
Govt and conciliation officer, publication of agreement
ADJUDICATION
52. Compulsory Adjudication LC, IT, NT
Reference by the
Appropriate Government
Sec. 10(1)
Award Sec. 18(3) of ID Act
S. 2-A, 33-A
Publication of award
Conciliation (if successful Judicial review - Art. 226 or
Settlement) Art. 136
Sec. 18(3) of INDUSTRIAL
The I D act DISPUTES
Voluntary Arbitration – 10-A
Award – 18(2) & 18(3)
Judicial review - Art. 226 or
Art. 136
Collective Bargaining –
If successful – settlement
Sec. 18(1) of ID Act
53. PUBLICATION OF AWARDS
Publication is must
Time duration of 30 days is directory
Award comes in to operation 30 days after publication
Tribunal to recall the award
54. CONDITIONS FOR
SUCCESSFUL BARGAINING
1. Freedom of association
Workers and employers are free to form their own
associations to represent their interests.
1. Stability of union
Unions have to be stable for collective bargaining to be
effective union is able to honor the agreement.
1. Recognition of union by employer
Collective bargaining begins after employer recognizes
the union that claims to represent the specific group of
workers.
55. CONDITIONS FOR
SUCCESSFUL BARGAINING
4. Good faith
Both parties must be willing to resolve differences to reach an agreement.
5. Mutual respect
Relationship affected and process becomes tense and difficult if any party
used unfair practices such as victimization.
6. Supportive legal system
Employment laws to ensure process takes place in an orderly manner.
56. NEGOTIATIONS
Process depends on these factors:
1. Subject matter to be discussed
2. Persons involved
3. Circumstances under which the discussion is held.
A Typical Negotiation Process begins with each party stating its
position.
As discussion progresses, each party adjusts its demands to seek a
mutually acceptable agreement.
57. STEPS IN NEGOTIATION
1. Preparation
Each party must know what it wants.
1. Presentation
Each party presents its case.
1. Exchange and compromise
Parties look for possible adjustment or compromise.
1. Reaching an agreement
Parties sign a written statement on what have been agreed.
58. WAYS TO SETTLE DISPUTES
Impasse: settlement cannot be
reached
Impasses may be solved by these
alternatives:
Conciliation
Mediation
Arbitration
59. WAYS TO SETTLE DISPUTES
Conciliation
Impartial third party helps the two parties to reach a mutually acceptable
settlement.
Conciliator meets parties separately or together to exchange information,
clarify issues and settle misunderstanding.
Conciliator does not impose a solution but works with the parties to enable
them to come to an agreement.
60. WAYS TO SETTLE DISPUTES
Arbitration
Third party settles the dispute by making an independent decision for the
two parties.
Some prefer arbitration as the responsibility “for reaching agreement” is
made by a neutral party (quite often, appointed by the government e.g.
Arbitration Court).
Arbitration gives some people the impression that they did not give in to the
other party but “fought all the way” to the Arbitration Court.
61. WAYS TO SETTLE DISPUTES
Mediation
Impartial third party helps to reach a
mutually acceptable agreement.
Mediator makes recommendations
for the two parties to consider.
Final agreement is made by the two
parties themselves.
