8 industrial relations1

8/13/2019 8 Industrial Relations1

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-Prof Radhika Gupta



Learning objectives The nature of IR and the need for peaceful employer

and employee relations

The different approaches to industrial relations The stake of each of the parties in industrial relations

A proactive strategy to industrial relations



Industrial Relations is –

…the consecrated euphemism for the

permanent conflict, now acute, nowsubdued, between capital and labour.

(Blyton & Turnbull, 1998)



Industrial Relations

‘the regulation of the relationship

between employers and employees’



Industrial Relations:…has acquired a deserved reputation for beingdull

…because it has too often failed to relate inany meaningful way to the reality of people’s working lives, how these were formed, how

they are constrained and how they might bechanged.

(Blyton & Turnbull, 1998)



Industrial Relations Affects: Economic Performance

Business Success

Employees Experience of Work



Parties to IR

Employees

Employee Associations

Government

Employer-Employee relations

Employers

Employerassociations

Courts andTribunals



Resolving Disputes Nature of disputes:

According to Industrial Disputes Act 1947, “Industrialdispute" means any dispute or difference betweenemployers and employers, or between employers and

workmen, or between workmen and workmen, which isconnected with the employment or non-employment orthe terms of employment or with the conditions of

labour, of any person.



Causes of disputes

Wages

Union Rivalry

Union Rivalry

Political Interference Unfair Labour Practices



Methods of settling industrial disputes

Without state

intervention With state

intervention Collective

Bargaining Voluntary

Arbitration With

Conciliation Without

Conciliation

Compulsoryestablishment of

bipartite

committees Establishment ofcompulsory collective

bargaining

Compulsoryinvestigation Compulsory

conciliation and

mediation

Compulsoryarbitration or

adjudication



COLLECTIVE BARGAINING:

Essential features: CB is a process in which the terms and conditions of

employment are determined jointly by the employer and workers

The term “collective” represents workers’ side, who bargaineither in combination or through their trade unions

It emanates from employment relationship Main objective is the determination of terms and conditions

of employment through negotiations and process of give and

take. The agreement arrived at , may relate to a number of subjects

of the terms of employment and working conditions or to asingle issue.



Steps involved:

Presentation in a collective manner, to the employer,their demands and grievances by the employees

Discussions and the negotiations on the basis of

mutual give and take for settling the grievances andfulfilling the demands

Signing of a formal agreement or an informalunderstanding

In the event of failure, a likely resort to strike or lock-out.



Importance to employees

Collective bargaining develops a sense of self respect andresponsibility among the employees.

It increases the strength of the workforce, thereby,increasing their bargaining capacity as a group.

Collective bargaining increases the morale and

productivity of employees. It restricts management’s freedom for arbitrary action

against the employees. Moreover, unilateral actions by theemployer are also discouraged.

Effective collective bargaining machinery strengthens thetrade unions movement.

The workers feel motivated as they can approach themanagement on various matters and bargain for higherbenefits.



Importance to employers

It becomes easier for the management to resolve issuesat the bargaining level rather than taking upcomplaints of individual workers.

Collective bargaining tends to promote a sense of job

security among employees and thereby tends to reducethe cost of labor turnover to management.

Collective bargaining opens up the channel ofcommunication between the workers and the

management and increases worker participation indecision making.

Collective bargaining plays a vital role in settling andpreventing industrial disputes.



Importance to society Collective bargaining leads to industrial peace in the

country

It results in establishment of a harmonious industrialclimate which supports which helps the pace of a nation’s

efforts towards economic and social development since theobstacles to such a development can be reducedconsiderably.

The discrimination and exploitation of workers is

constantly being checked. It provides a method or the regulation of the conditions of

employment of those who are directly concerned aboutthem.



VOLUNTARY ARBITRATION:

the two contending parties, unable to compose theirdifferences by themselves or with the help of the mediatoror conciliator, agree to submit the conflict/dispute betweenthem to be resolved by an impartial authority, whosedecision they are ready to accept.

the parties to the dispute can and do themselves refer voluntarily any dispute to arbitration before it is referredfor adjudication.

This type of reference is known as a “voluntary reference”,

for the parities volunteer themselves to come to asettlement through an arbitration machinery.



The essential element in voluntary arbitration is:

the voluntary submission of dispute to an arbitrator;

the subsequent attendance of witness andinvestigations;

The enforcement of an award may not be necessaryand binding because there is no compulsion.

But generally, the acceptance of an arbitration impliesthe acceptance of its award-be it favorable or

unfavorable; and voluntary arbitration may be specially needed for

disputes arising under agreements.



COMPULSORY ESTABLISHMENT OF

BIPARTITE COMMITTEES:

committees consisting of the representatives of workers andtheir employer at the plant or industrial level.

Settle the differences as soon as they appear Industrial Disputes Act, 1947: Compulsory formation of Works

Committee in establishments with more than 100 employees. Purpose:

Giving encouragement to the parties concerned to settle the differencesto avoid direct intervention of third agency

Facilitating the composition of the differences at their embryonic stages without causing work stoppages.

Reasons for failure: Reluctance and hostility of the employer or the trade union concerned Illiteracy and ignorance of the workers Absence of leadership from rank and file.



ESTABLISHMENT OF COMPULSORY

COLLECTIVE BARGAINING

State may think to force workers and employers toenter into formal collective bargaining through theirrepresentatives

Required if either or both the parties resist theestablishment of collective bargaining.

In India, amendment of Industrial Disputes Act, 1982:refusal to bargain in good faith, an unfair labour

practice.



CONCILIATION AND MEDIATION:

Voluntary Conciliation And Mediation: State sets up conciliation and mediation machinery

consisting of personnel trained in the art of conciliatingdisputes.

Services of this machinery are always available to thedisputants.

The state provides machinery without imposing anyobligation on the disputants to use it.

Aim of conciliator is to break the deadlock, explain the viewpoint of one party to another, convey messages andkeep the negotiations going.

Parties are free to accept or reject suggestions



Compulsory conciliation and mediation: In many countries, the state imposes an obligation on the

parties to submit their dispute to the conciliation serviceand

makes it the duty of the latter to conciliate the dispute. State requires the parties to refrain from causing any work

stoppage for the purpose of resolving the dispute. Time limit for mediators. 3 main consideration:

Conciliation will provide a cooling off period Freedom of the parties to settle their disputes even by causing work

stoppage, should not be taken away from them for a long time. If conciliation does not achieve an early break-through, it is not very

likely to succeed later.

If at the end of conciliation proceeding, the dispute is notsettles, the parties are free to go in a strike or declare a lock-out.



Conciliation And Mediation In India

Industrial Disputes Act, 1947 : giving the notice of thestrike or lock-out in public utility services is obligatory onthe parties before they go on a strike or declare a lock-out.

Copy of notice to conciliator

Legal responsibility of the conciliator to seek to settle thedispute

Even if it is the failure, submit the copy of the facts to thegovernment.

Prohibition of a strike or a lock-out in a public-utilityservice during the pendency of the dispute before theconciliation officer and seven days after the conclusionthereof.



COMPULSORY INVESTIGATION

appointment of Court of Inquiry to find out relevantfacts and issues and give them a wide publicity(pressure of public opinion)

Cooling off time to the parties

In India, under Sec 6, Industrial Disputes Act, 1947,both Central and State Governments have the power to

constitute a Court of Inquiry for “ enquiry into anymatter appearing to be connected with or relevant toan Industrial dispute.”



COMPULSORY ARBITRATION AND

ADJUDICATION Government may decide to refer the dispute to

adjudication and force the parties to abide by theaward of the adjudicator and at the same time,prohibit the parties from work-stoppages.

2 forms of compulsory arbitration:

Compulsory reference but voluntary acceptance of the

award Compulsory reference and compulsory acceptance of the

award.

8 industrial relations1

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