Industrial Relations notes

Compiled by:
Seetal Daas
BBA(Hons)-2k13 University of Sindh Laar Campus, Badin
Notes for Industrial Relation Prof.Ghulam Murtaza1
Chapter 1—Introduction
Basic Concept of IR
Definition (by: Filippos): The term industrial relation refers to all types of relations
that exist in an industrial enterprise, the employer and employees.
1-Step: in this stage employee has to sign an agreement.
2-Step: this stage express an organizational structure means to find your own authority
there.
Definition (by: Richardson): Industrial relation include individual relation and joint
consultations between employers and people at work the place of work, collective
relations between employer and their organizations and the trade unions and the part
played by the state in regulating those relations.
Description: Industrial relation means each employee has relation with their
management. Joint consultant means negotiation of whole union.
Objectives of IR
1. Development & Promotion of Harmonics labor management relation:
building an objective which profitable and useful for both union and management.
2. Maintenance of Industrial Peace and Avoidance of Industrial Conflicts: this
objective express that management and union have to work together smoothly, both
parties have none problem, they try to avoid the occurrence of the conflict.
3. Establish Industrial Democracy Based on Labor Partnership: this objective
express that through the democracy, in which each and every labor has the freedom
of speech on any kind of issue in the industry.
4. To Raise the Level of Productivity: in this objective the productivity level is
increased by efficient and effective system which should be very much supported
to the company.
5. To Boost the Discipline and Moral of Workers: this objective of industrial
relation is depending upon the moral, that moral is developed when management
will listen the worker/labor and also listen the management.
6. To Increase Industrial Prosperity: this objective is made to industrial
development with the cooperation of union and management.
7. To Improve Works a Lot with a View to Solve Their Problems Through
Mutual Negotiation or Consultation with Management: this objective facilitates
when any issue incurs that can be solved through negotiation.

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Factors of IR
1. The Employer: employer invest the capital for earning profits, employer is key
factor for maintaining the organization. Employer vary, it can be private employer,
and government employer, and the nature of private and government employer also
varies. In the private industries have lots of conflicts as compare to the government
industries. Private industries need work, no disputes, no grievances, no shouting.
Government industries have less care of profit.
2. Workman or union: union(labors) are allowed to expression, most of the times
employer gives benefits to labor/employees. Due to the issue of an organization
suffers many losses, union issue creates because they are uneducated. Collective
thought of workman is called union. Union have legal body, they allowed to fight
for right against employer.
3. Government: is broad term, employer is an organization for example: SSGC,
NBPL, PIA etcetera. When industry produce products at reasonable price the
benefit will be to labor cost. Karl Marx (exploitation) criticized the capitalism, due
to the less self-respect in society, value in society, and bound to work at 12 hours,
in the private organization (capitalism). Government has bound to pay 12500
rupees for labor in Pakistan.
4. Consumer: ultimate user of products is consumer. Services to consumers should
have good quality, not sub-standard quality, there should be reasonable price for
consumer, not high what they pay for that product. Because consumer has right that
can challenge employer for the product in court.
Conditions of Good Industrial Relation
1. Past Records of Industrial Relations: conditions of good industrial relation
depend upon if the past records between management and union is good help and
impact to improve the future good relation, if the past records both parties are not
better, it also will affect the performance of the organization.
2. Satisfaction of Economic Needs of Workers: basic needs of the labor should be
fulfilled, such as food, shelter, clothes, and health, because these are very essential
needs of labor, if these needs will be fulfilled, labor will be satisfied, and they will
work more, that will help in building good industrial relation of an organization.
3. Social and Psychological Condition of Workers: as economic needs of labor
should be fulfilled likewise the social needs are very important which help in
building good relation with management, and psychological needs also help in
building good industrial relation, in this a mechanism should be justified, in which
labor should justify him/herself in the organization.
4. Strong and Enlightened Labor Union: this condition of good industrial is that
union do not go for strikes, they do not want to harm the production, union what do

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that labors come in the organization and they work, while their union says that will
discuss our demand and problem with management, and will fight for your rights.
5. Off-The-Job Conditions of Workers: this condition helps to build good relation
through what is the actual problem that is making the sick of labor? Such as having
a problem in family of labor like any disease. So management what do they ask
from the labors about their issues personally. This thing facilitates building a good
industrial relation.
6. Negotiation Skills and Attitudes of Workers and Management: in this union
what do they select the representatives on the basis of confidence, seniority, skills,
education, experience who can negotiate with management, management also do.
7. Education, Training and Development of Workers: for building a good
industrial relation this condition of education, and training are necessary for labors
because it make them aware, confident, and help to know what is right/wrong, to
know about policy and law of the organization for labors, these things facilitate in
development of labors.
8. Interpersonal Relationship: this condition helps to build good industrial relation
through when the relation of management with union, peer to peer, and strictly
forbidden the aggressiveness of management with labors, because when the
management will behave like this it will create a bad image of the organization and
labor will leave the job. Nowadays, labors are very active in leaving and getting the
job, so management should be careful in this case.
Causes of Poor Industrial Relations
1. Nature of Work: sometimes employees become dissatisfy, when work burden is
increased and wages are not paid accordingly. And in the schedule there should be
one or two leaves for labor without deducting their salary due to the leaves. This
thing becomes the cause of poor industrial relation.
2. Political Nature of Labor Union: in the organization political interference also
cause a poor industrial relation. In the organization there are many group concerned
to various political parties (PPP, PMLN, PTI), so if the PPP/PMLN/PTI
government is running it will focus and give more leniencies to their
employees/labors as compare to other labors who are not concerned to that party in
the organization, and they are not benefited.
3. Level Wages: this is also causes the poor industrial relation when the inflation is
increasing day by day and their wages are not increasing, so the labor views for the
management will be bad, that management is not increasing our salary.
4. Occupational Instability: it is also a main cause of poor industrial relation when
the labor/employee are transferred from one place to another place, and from one
designation to another designation, so it creates difficulty for the labors/employees.

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5. Unhealthy Behavioral Climate: this cause also build poor industrial relation when
the behavior of the management is not fair with workers/union. So workers want a
healthy atmosphere by management in which they can respect the management
rather than hating.
6. Unfair Practices: this main cause of poor industrial relation when management
threatens the union that if you will strike and protest you will be kidnapped or your
family members will not safe anymore, means management try to stop them from
strike, or protest.
7. Outdated and Outmoded Laws: it also becomes the cause of poor industrial
relation when the outdated laws, which are running since British Rule, still they are
implementing on labor and while the time has changed. Therefore, laws should be
implement according to modern age.
Effects of Poor Industrial Relations
1. Multiplier Effect: due the this the industry and economy is effected; in industry
gap comes in the consumer and its products in the market.
2. Resistance to Change: due the poor industrial relation, change does not incur in
the organization in the production process, working process, technological and non-
technological.
3. Declines in Normal Working: due the poor industrial relation, the rest necessity
comes in the body by the job, it decreases the productivity and demands increases.
4. Frustration and Social: sometimes due the noise, pressure and other reasons mind
does not accept the work and want to take rest. Relations with management are
better that will facilitate the labor to work well, if it is not that will frustrate the
employees, boss’s strictness make them frustrate. If the management is not sound,
the loss will be face by the organization therefore, the social relations also affect
the organizational performance.
Suggestions to Improve Industrial Relations
1. Constructive attitudes: attitude of management with workers, should be like their
supporter, because labors feel themselves inferior and management is superior due
to the fear. Therefore, labors do not share their grievances with management. Total
Quality Management Philosophy is that each worker is your partner. So
management should adapt constructive attitudes in the organization.
2. Policies and Procedure: polices should be clear in every labor’s mind, because by
this employee think secure him/herself when they know the policy of the
organization.
3. Mutual trust and confidence: mutual trust between management and union is built
by HR management, because he/she is key to negotiate between management and

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union, manager plays intermediary role, it is important for improving industrial
relation.
4. Right kind: company play a role of providing a secure environment in which labors
can vote for election of one right union leader. No leader can influence and
pressurize them only vote him/her. Therefore, management provides a secure
environment.
5. Administration of collective bargaining agreement: in the collective bargaining
selection should be equal from both parties (management & union); three
representatives should be from union and three from management. If management
select four representatives, it is the violation of.
6. Union has right to settle working condition: union should have a right of
settlement of working environment according to them(Union/labors).

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Chapter 2—Conflict
Basic Concept of Conflict
a. Parties involved: it is necessary that in the conflict there should be two parties,
high and low level, or opposite parties, or management and union.
b. Perceived threat: in this type of threat labor can go at any level, labor can threaten
the management through various ways.
c. Needs, Interests, and Concerns: these three things become the cause of the
conflict, which build conflict much strong.
Development in Conflict Thought
 Traditional View of Conflict (1930 to 1940)
Traditional view of conflict express that conflict is bad, it must be avoided. During
this era. Manager thought that poor communication between management and
employees creates conflict; poor communication is highlighted during this age.
Lack of trust between management and employees(labors) also creates conflict;
employees(labors) feel fear (scare), it is the main reason of conflict. Due to trust
deficit; employees cannot share their problems with management; trust deficit is
eradicated (decreased) when employees are allowed to share their
problems/decision on any issue. Failure to poor response is also creates conflict;
poor response refers in which management does not listen the problem of
employees carefully. In the industry there should be adequate response in which
employee’s problem is heard properly and carefully.
 Human relation view of conflict (1940 to 1970)
This view express that conflict is natural humans cannot stop it. This approach
allows conflict; it should be done between two parties. Major reason of this
conflict’s benefit is that group express hidden willingness/demands/problems in
front of opposite party and judge. For example; Sales force; if one group sells
products in east side and other sells in west side market, after selling the products,
they meet in front of manager; east market seller say that I have sold 150 products;
west market seller express that he has sold 100. Additionally, east Sales Person
express that I sold more than the west seller, then west seller expresses his main
reason and problems of less selling to manager, after the listening the causes of less
sales of west manager resolve the problems and sales of both markets east and west
side become adequate.
 The Interaction Approach (later 1970)
In this type of conflict approach, conflict is classified into two types of conflict 1-
Functional and 2-Dysfunctional. Functional conflict is: when problems are solved

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with the help of negotiation with other party and Dysfunctional conflict is: in which
conflict is solved with fight, abuse etcetera; it has no objective, no any impact on
organization; employees/management just talking purposelessly. In this approach
functional conflict is encouraged while dysfunctional is discouraged or given less
priority. Functional conflict is much beneficial for achieving the objectives of the
organization.
Components of Conflict
a. Conflict Must Involve at Least Two Parties: this component is very important
for occurring the conflict of two parties. One party should be union and other
management. Conflict cannot occur in individual party so.
b. The Field of Conflict: this is also important component of conflict in which having
the possible state of social system, and what is agenda (outlines for discussion),
reason and purpose of conflict and its meeting.
c. The Dynamics of Situation: there should be adjustment of two parties.
d. The Building Model in Management Control: after negotiation and discussing
the agenda, both parties come at the final state in which decision is made.
Two Views of Conflict
 The Bad
The bad view of conflict express that; on the basis of organizational structure that
where is the problem and find it out. Two types of organizational structure i-
structured and ii-unstructured. Due to these there are much chances of occurring
conflict. Centralized (one authority) structure often creates conflict. Most the
employees have not chance to share their views in decision making, this thing
become the cause of conflict.
 The Good
Good view of conflict is lies to functional conflict. In this there are three things i-
creativity, ii-innovation, and iii-productivity (increase in output). If there is problem
in the organization, they negotiate with other department on the issue and solve the
issue.
 The Ugly
It is a situation which is not concluded. Something is going impossible you make it
possible. For example, the misconception of authority; one side manager stands
alone other side there is number of employees(labors) against the manager.
Manager suppressed the situation. It is divided into strategies names are Ugly
Strategies, it is further divided into four strategies that are expressed below.
1-Non-Action Strategy: it is the world’s dangerous strategy. It is the best strategy
to solve the conflict. For example, Karachi Electricity Supply Company (KESC);
on the violence and demonstrations of the labors, management did not take any

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action, they let employees whatever they do. After that, employees harmed the
infrastructure of the company and vehicles, finally management present the report
in the court of the destruction of vehicles etcetera; all those employees who
demonstrated, harmed and demanded were dismissed/fired.
2-Administrative Orbiting Strategy: in this strategy management realize the
problem but they do not want to solve it. Management just passing the statement
that it would be solved. For example, on the increment of inflation, employees
demand for the increment in their salary so finance manager states that we will
increase your salary.
3-Secrecy Strategy: undisclosed meeting is convened at outside the organization
in which the leader or the representative is called and negotiated and solved the
problem/demands etcetera.
4-Law and Order Strategy: on the basis of legal obligations, management take
the action on the conflict/issue/violence.
Conflict Style and Their Consequences
a. The Competing: it is a debate style, threatening power, always says in this no or
never.
b. Accommodating: it is move towards the solution; it is observed that relationship
is important rather than things.
c. Avoiding: in this views are unexpressed, due to say nothing and ignorance conflict
occurs.
d. Compromising: it is occurred due to settlement of difference by mutual
concessions, and agreement is reached by adjustment of conflicting.
e. Collaborating: in this type of conflict employees solve the problem through win-
win, and knowing and discussing problems with all staffs.
Different Aspects of Conflict
1. Individual do not know what to do: in this aspect of conflict an employee feels
unsecure; thinks that there is over burden of work; and this is the default of an
organization.
2. Due to Personality Difference: due to the rules and regulation; and central
authority status and variation in designation creates conflict in the organization.
3. Conflict on Achieving Profitability: management gives the tough work or burden
of work or difficult task to talented/confident/skilled and senior employees and the
simple task gives to less skilled/confident/talented and junior but talented/skilled
often complete their task in time and less skilled take much time to complete.
Therefore, talented/skilled creates conflict for much reward of work.

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4. Line-Staff and Labor Management Conflict: labors are responsible for both
(Line-Staff) and management; means who reports to whom. Labor management
worked for line-staff management and their reports they send to staff management.
Sources of Organizational Conflict
1. Shared Resources: due to the shared resources conflict occurs, through the court
distribution and division is done equally.
2. Differences in Goals: when there is difference among the goal of one department
to another department, it also causes the conflict, because both goals are not
matching with one another.
3. Interdependence of Work Activities: individual department cannot achieve the
goal of department until workers do not take part in working activities.
4. Differences in Value or Perceptions: difference in the values and perception of
departments cause the conflict when they come to discuss in the meeting their ideas
do not match.
5. Individual Styles and Organizational Ambiguities: everyone has its own style,
workers’ way of working is varying with organizational ambiguities, if it does not
match with working environment of workers and it creates ambiguities that occurs
conflict.
Process of Conflict
Pondy’s Process
 Latent conflict: in this conflict process sources of the conflict are present.
Management promote his favorite employee.
 Perceived conflict: in this employee perceive the conflict; and recognize that
conflict is actually existing.
 Felt Conflict: in this process employee completely know about the conflict and
starts fighting with management for their rights.
 Manifest Conflict: over and over attitude and aggressive, rude behavior of
management; brings conflict between management and union.
 Conflict Aftermath: in this process ways are found to solve the problem.
Negotiation, between management and labor take place, both parties put their
demands in front of each other and find remedies and finally reaches at conclusion
(result of discussion means final decision).
Robbin’s Process
 Potential Opposition or Incompatibility: three things are in this kind i-
communication, ii-structure, iii-personal variables.

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i-Communication: insufficient exchange of information; labor does not
understand the policy; communication gap creates problem. For example, a
company holds an annual bonus ceremony for those who are senior, experienced
and services more than 15 years; due to the noise, mike and sound problem message
could not convey at labors properly in the hall. So other labors demonstrated that
why they are getting benefits not us? We ought to be benefited of bonus. Due to
communication gap conflict occurred.
ii-Structure: in this employees cannot direct communicate with the higher
authority(management), they have to follow the chain of commands; then they
convey their message at higher authority or they meet with higher authority because
of the organizational structure.
iii-Personal Variables: these are drawbacks in management; as they cannot value
the labor. When the proper value means respect is not given to labors, they become
aggressive and not polite behavior of management with labors creates the conflict
between union and management.
 Cognition and personalization: in this stage conflict comes in action. Cognition
means idea of conflict. When labors feel their goodness is irritating the
management, they become discouraged. For example, Nations like; nation A/B/C
does not behave good with nation C/B/A.
 Intentions: in this labors have plan to do something; such as strikes; this type of
things are already planned. Management knows well the union and union also
knows well the management about their games. So all these things have on
management mind that union would take this step. Therefore, management handle
the actions of the labors accordingly.
 Behaviors and Outcomes: this stage depends upon action, reaction and intention.
Action when union does not follow the order of management, in this action conflict
is showed, and labors passing the statement/sentences/slogan for management that
should not be passing loudly. Reaction come that management threaten the union.
So the consequences would come that if union’s intention is pure outcome would
be bright, if its intention is not pure their outcome would come accordingly, and it
will affect the organization image.
How to Response the Conflict?
1. Emotional Responses
In this type of response, the management shows his/her aggressiveness, anxiety to
union(labors) for building fear, because management has to response otherwise
company will face loss. Management shows rigid and rude behavior to labors,
because change in attitude brings great lead of loss.

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2. Cognitive Responses
Workers are always worried about the organization; they think about the
organization on issue such as conflict that what will be the outcome of it. Workers
talk with management and its different manager, the management express different
views about the conflict. Employees(workers) come to know that its effect will be
negative/positive on the organization, one thing is connected to your opinion.
3. Physical Responses
Management act to show that they are in very critical condition. They begin to show
some physical drawback such as higher level of stress due to conflict, workers think
more about the state of management. Management (manager) is more educated; but
labors are uneducated or less educated. So management threaten to labors that if
you would take this action, then next time never come in my office/organization.
Methods of Managing the Conflict (3 ways described by Stoner)
1-Conflict stimulation: in first step/way where the situation of conflict is very low.
To resolve the problem is necessary of having the conflict.
1.1-Bringing in Outsides: in this outside party means third party comes to solve the
problem, they negotiate with management and union; they listen both party’s
agenda/demands and finally shake hands of both parties with each other. Third party
discuss the problem individually with one party and second party and also states them
the reason of coming of them in the organization that to solve the problem.
1.2-Going Against the Book: in this what happens that some people are excluded and
new employees who come to deal with them(union), management change the way, and
direct communicate with union on the demands, because middle man has the role of
conflict.
1.3-Reconstructing the Organization: management change the structure
(centralized/decentralized) of the organization, because of management thinks there is
fault in the structure so in different designation of management employs new senior
and experienced employees for knowing the actual reason of conflict.
1.4-Encouraging Competition: bonus scheme like this management begins
announcing for the workers come and share their problems, for getting the benefit of
bonus labor will express their grievances.
1.5-Selecting Appropriate Manager: one who can understand the problem of
workers, manager should work like a leader, and having leadership qualities. Manager
should work easily and honestly for the organization. In the industry if appropriate
manager is hired/appointed, if he/she does not possess the managing quality, industry
will have to face the losses. Being a manager should be calm, patience, confident,

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leading qualities are not in you, will be fired from the designation, other will sit on
your designation who has all these qualities should be in manager.
2-Conflict Reduction & Resolution Method: in this method management try to
divert the attention of the labors(employees) from current issues to another issue, and
conflict never go little down, it is never reduced. There are chances of solution, when
management shows his dominance on workers; workers fear, it is used that workers
ought not cry on anything, and fear dominancy is used to reduce the raised voice of
workers.
3-Dominance and Suppression: in this through dominancy demands/voice of
workers is suppressed.
3.1-Forcing: management their power imposes on workers. For example, a ship which
have to come on port/harbor at 2pm but manager himself try to late the ship and it
comes after 4 hours late on the port, but it is time to leave of labor, but manager order
them till the full filling of ship you cannot leave the port, now labors are bound and
they cannot go until the ship is filled completely.
3.2-Smoothing: it is the tactical way of resolution in which manager takes one’s side,
like manager says that he is with union, and he stands against the management for
union. In this case manager has both party’s information, he/she can make solution for
them.
3.3-Avoidance: in this case manager avoid to make the decision while two groups are
fighting each other, manager says he will make the decision in for coming days.
3.4-Majority Rule: in this the rule of majority is concentrated, that what majority is
saying management has to accept them, cannot avoid it. Management has to make
decision on one side. It is effective way of solving the conflict.
3.5-Compromise: this is the rule of adjustment; in which few steps union comes back
and few steps management goes back, means both mutually agreed; both think that
what is more important and what is less important. Union do not know that what is
next, that management would accept our demand or not. If third party involved in
decision-making for both parties is called Argutration.
3.6-Integrative Problem Solving: it is joint problem solving, all parties sit together
and think about the problem solving techniques, and solve the problem. It is further
divide into three categories; i-Consensus: in this all are agreed on one solution; solution
may be advised by anyone. ii-Confrontation: it is direct criticism of one party to
another party. In this criticism third party’s work is to judge both parties and says both
parties openly share your problem here whatever they are. Third party by using their
leadership skills and quality solve the problem/conflict. iii-Party’s Goals are there: in

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this suppose, there two parties; one who demand for increasing their salary and second
group demands for bonus, so management after studying both parties demands make
a specific decision in which both parties are benefitted.
Chapter 3—Industrial Disputes
Forms of Disputes
Usually, Conflict and disputes interchangeably used in the context. The dictionary
definition of Disputes is: disagreement followed by opposition against something.
1. Strikes: a concerted stopping of work or withdrawal of workers' services, as to
compel an employer to accede to workers' demands or in protest against terms or
conditions imposed by an employer.
2. Lockout: the temporary closing of a business or the refusal by an employer to allow
employees to come to work until they accept the employer's terms.
3. Layoff: the act of dismissing employees by employer, especially temporarily. Due
the shortage of electricity/raw material or any other resources shortage in the
organization.
4. Retrenchment: termination of the job due the strong reason. Suppose a labor is ill,
the organization discontinue the job of the labors. It is possible when a labor is near
at retirement so employer offer him early retirement with handsome amount of
retirement pension of Rs.30 lacs, but most of the labors deny from this offer and
want to work till they retire at 60s age. Usually, Managing Directors (MDs) are
worked at the age of 65 years.
Forms of Strike
What is strike? Here is its simple definition: a group work stoppage to compel an
employer to accede to workers' demands or to protest an employer's conditions.
1. Go-slow strike: a form of strike by workers in which they deliberately slow-down
the phase of work/production in order to cause problem or till their demands are
approved from their employers.
2. Stay-in-strike/Sit-down strikes/Pen-down strike/Tool down strike: a labor
action in which employees come to work but do not do any work. It is an unofficial
form of strike.
3. Lightning strike: it is also a labor action in which labors/employees burn the
vehicles, office and other infrastructure for approving their demands from
employer. It is also unofficial form of strike.
4. Work-to-rule strike: it is labor’s action in which employees/labors do no more
than the minimum required by the rules of a workplace.

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5. Hunger strike: a group of labors/employees protest by sitting without eating
anything for 2,3 days for approving their demands from employer/management or
against the condition of an employer/management.
Methods for the Prevention and Settlement of Industrial Disputes
1-Collective Bargaining: it is a process of mutual negotiation between management
and union on the issues of labors. Both management and union compromise with each
other. Sometimes the demands of labors, management cannot afford, in this case
collective bargaining facilitate the management to reduce few demands from union
side, other are accepted. This is the most useful method in business organization.
2-Code of discipline: it the code in which management must be agree on some
principles and union must be agree on some principles. Majority was agreed on this
code of discipline and signed.
2.1-Management and Union Agree
a. No unilateral Action: one side action; organization becomes destabilized, union
addresses that our demands must be approved, and management express that we
have not any relation with union and its demands. Both agreed on it.
b. Existing Machinery with utmost Expectation: for solving the problem a panel is
seated consist of two members of union and two members of management.
Whenever conflict/problem is increased a committee is formed, after the
formulation of committee, often problem/conflict is solved. Both agreed on it.
c. No Strike without Notice: union agreed that they cannot do any strike without
notice. Union agreed on it.
d. Democratic Process for Negotiation & Condition: in this process everyone takes
participation, even a peon has authorized to contribute for solving the
problem/conflict through negotiation and conciliation. Both agreed on it.
e. No Coercion, Intimidation, Go-slow & Victimization: management/union not
allow to threaten the management/union. Go-slow: to slow the work process by
workers. Not allow to intimidation: mentally torture to someone. Victimization:
blaming is not allowing to union and management each other, according to this
code all agreed.
2.2-Management Agree
a. No increase in Workload: sometimes management misuse the authority like due
the conflict, management increase the work burden until problem is solved.
Management is prohibited, and agreed on this.
b. To Take Prompt Action with Implementation: management agreed on to rapid
taking action of grievances of labors and implementation also required to settle the
problem.

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c. Conspicuous Places for Negotiation: management agreed on for meeting of union
and management will at common place, not outside the organization e.g.
restaurant/hotel. Management can take the notice against the in disciplinary
(state/condition when labors chanting slogan against management on media).
2.3-Union Agree
a. Not to Increase the Physical Rule: physical attacks are not allowed on the
property, assets and people (executives, directors etc) of an organization. Union
agreed on it.
b. Not to Permitted Rowdyism: it is a situation of disorder or noisy, so union is not
allowed to strike with noise, because noisy strike is illegal. Union agreed on the
code.
c. Not to bound the Employees for Strike: union cannot force the
employees/workers to participate in the strike. Union agreed on the code.
d. Neglect Unfair Practices: union is not allowed unfair practices such as threatening
the management or kidnapping any executives. Union agreed on this rule.
Permanent Negotiation Machinery
The permanent negotiation machinery that management select the top senior members
to discuss the industrial disputes with union for solving the disputes. The permanent
machinery means a selected body of senior members from management.
Triparative body: it is the third party that solve the disputes between management and
union. It can be central/federal/external party.

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Seetal Daas
Chapter 4—Collective Bargaining
Collective Bargaining
According to Harbinson: collective bargaining is a process of accommodation
(making possible) between two institutions which have both common (not favor in
management) and conflicting interests (not favor of a union).
Objectives of Collective Bargaining (CB)
1-To agree upon a contract acceptable union representatives, union members and
the management: the objective of the objective is to make both parties agree and
gather at one platform and developing the consensus, collecting different ideas from
mutual understanding.
2-If 1/3 Majority is Available: this objective express that if the 1/3 majority of union
or management is available meeting can be convened. For example, union’s
representatives are not present but other members of union 1/3 are present and
management is presented in this case management can be convened the meeting. If
union’s representatives and members are present but management’s representatives
1/3 are present but members are not present in this case union can be convened the
meeting.
Types of Collective Bargaining
There are two types of Collective Bargaining Rules
1-Procedural: this collective bargaining rules describe the two things, that how to
govern on the behavior of the employees and many conflict in the organization are
controlled by the rules. They just require to show their behavior as decided in
procedural rule. Management has to respect everyone, and cannot say that subordinates
are servant because of their low scale. Union behavior ought not be threatening the
organizational structure (higher authorities), it is somehow right but in a manner and
with legal way not illegally.
2-Substantive: in this rule management maintain the relationship with individuals.
Management does not feel need to talk to entire group, they directly communicate
those who are senior and representatives/leader of the union, they satisfy the
leader/representatives, then representatives/leader will satisfy the group.
Three Kind of Relationship Regulated by Substantive
2.1-Economic or Market Relationship: in this kind of relationship management offer
the complete package for union, that those who are senior will be awarded with bonus
and leader will be rewarded more bonus or cash amount as compare to workers.

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Seetal Daas
2.2-Governmental Relationship: sometimes dispute occurs for solving, in this case
external party means government agents come to solve the dispute. By this way
relationship between union and government become stronger.
2.3-Workplace Relationship: making the relationship with management and with
peers (colleagues). Leader will be the part of the meetings (Annual General
Meeting/Policy Promotion Meeting) and are empowered to improve the relationship
at workplace.
3-On The Basis of Exercise There Are Two Types
1-Distributive Bargaining: in this sort of relation one party gets merits and other party
face losses.
2-Integrative Bargaining: this is beneficial for both parties, have problem solving
approach. Both mutually agreed that no loss no gain. Concept of productive bargaining
is developed that no stakeholder will in loss.
Participants of Collective Bargaining
Employer
 Small Scale Business/Firm: size of firm is minimum 20 and maximum 50
workers/employees.
 Medium Scale Business/Firm: size of firm minimum 50 and maximum 100
workers/employees. Representatives like personal or HR manager deals along with
legal assistance. It is registered kind of business. Legal matters are solved by legal
advisor/assistance and whenever HR Manager negotiate with the union and
manager identify the demands, are justified.
 Large Scale Business/Firm: size of firm is more than hundred workers, and seven
directors must be in board. They select their representatives such as Economic
specialist, labor law specialist etcetera.
Employee
 Departmental/local basis: (E.g. SUTA, 600 teachers)
 Country wide: (E.g. FAPUASA, 25,000 teachers)
If the problem is not solved at low/local level, it is sent to the upper level.
Example: Sindh University Teacher Association (SUTA), and Federal of All Pakistan
Universities Academic Staff Association. Few year ago an issue raised when
Government of Sindh took notice that afterwards government will appoint the registrar
and controller of the examination; when this issue raised by teachers of the University
of Sindh, they protested and did strike but government did not listen anything.
Thereafter, SUTA decided to present the issue in front of FAPAUSA; when this issue

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Seetal Daas
listened by this, FAPAUSA took immediate action and passed the statement “If
Government of Sindh will not take notice back, we would boycott all Sindh’s
Universities classes”. As a result, Government of Sindh took notice back and next
morning at dawn; in the newspapers head-lines were that Government of Sindh has
taken notice back. So this was the example of both country wide and
local/departmental wise representatives; that if your voice is not listened at low level
you can raise it with help of upper level if you are associated with any organization or
party.
Process of Collective Bargaining
1. Organizing and Certification: there are some representatives in the organization,
who talk with workers/employees to make a group, if it is certified union no one
can challenge it; they can be senior members who look for that workers/employees
are willing to join the union. What does management do here? Management is not
in favor of making a union, they want to stop making union and try to dominated
over.
2. Preparation for Negotiation: there two types of collecting the data, information,
fact and figures from internal and external sources. Internal sources: data from data
system, about employees, no. of management, no. of working hours etcetera. After
collecting the information, fact and figures, representors make a plan that who will
present the charter of demand and who will respond the charter of demand.
3. Negotiation: once representatives of union will formulate the facts and figures;
they will negotiate properly. Strategy is logic to achieve the goal. All
representatives should be well prepared. Negotiation begins when representatives
present the list of demand; it should be strictly followed because management will
argue with union and union have to be careful whatever union want to speak and
steps union take.
4. Contract Administrative: on whatever union addressed should be agreed upon,
this is the method that will represent the union; and implement on them. Union has
to follow all the steps because words are recorded through meeting. Representatives
should not hesitate/perplex/confuse whenever management try to threaten them.
Essential Conditions of Collective Bargaining
1. Careful Thought and Selective of Negotiation: negotiation team/group should be
selected from different departments. Organization is diversified the department.
This type of work is called professional development. Marketing personnel has
expertise in this particular field like this all department’s expert should be selected
in negotiation. The quota of selection should like 20% from marketing department,
10% from HR department etcetera. Very senior employees are able to solve the
problem with their experience with union and management. This is very crucial

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Seetal Daas
step in negotiation; if team is strong, 99% chances are of solving the
conflict/problem.
2. Management Should Recognize Union: how the management recognize the
union? Management understands that they respect the union, considered as unity of
an organization. Strong union and progressive management can promote the
environment of mutual confidence. Talent versus talent, skilled and effective
participants always generate mutual confidence. Both parties already sign the
contract/agreement to discuss, not to make conflict.
3. Bargaining Team Members Should Have Open-Minded: those who welcome
the criticism are called open-minded; they allow other to criticize, and management
always criticize opposite party. Experienced employees are the strength of union
that assist them for approving their demands.
4. Homework On Agenda of Meeting: before coming in the meeting representors
should get prepared, their agenda of meeting should be clearly written according to
labor law, court of conduct, legally and have command/grip on.
5. Both Parties Should Grievances, Safety, And Hygiene Problem: both party’s
grievances should be addressed and listened carefully. Basic hygiene problems of
employees are valued and managed.
6. Internal Union Democracy: it describes that union has not right to threaten,
pressurize and influence workers for joining the union, workers have right to
willingly join or not join.
7. Strikes/Lockout Should Be Resorted: if the problem is not solved through
negotiation, final decision is to solve the problem through strike, lockout and
protest.

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