Labor Relationship: Grievances and Dispute Settlement

Unit 5

Concept of Labor Relation: Labor relation is the understanding between employees

and management in an industrial setting, labor relation is the outgrowth of industrializing. Traditional concept of labor relation deals particularly with union and management issue but, modern sense of labor relation deals with managing inter-relations between employees, employers and government. Employees are represented by trade unions, employers are represented by employers association and government represented various political parties and pressure group.

Labor relations are multi dimensional. They are affected by economic, socio-cultural, political, legal, technological and occupational force. Employee management relationships are strongly affected by the presence of unions. The scope of labor relation covers unionism, collective bargaining, resolution of industrial disputes, grievance procedure, and discipline and labor legislation.

Purpose of Labor Relation: Harmonious relationship: Labor relation aims to develop and promote

harmonious inter-relation between labor and government. This leads to industrial peace and helps to achieve the goals.

Industrial peace: Labor relation faster industrial peace and

stability. Since, both managers and employees discuss and consult before initiating any action. Disputes, grievances and disruptions are minimizes through collective bargaining. Misunderstanding and confusion disappear where as co-operation is established.

Purpose of Labor Relation: Open communication:

Labor relation provides opportunity for free flow of communication between workers and management. It promotes favorable work climate and participative culture. Power balance is achieved between management and labor. It helps to increase co-operation, confident and respect within the organization. Labor turnover and absetism is minimized whereas quality of woke life improves.

Change management:

Labor relation facilitated change management, since, it creates an environment of co-operation, trust and confident which reduce the resistance to change, hence, innovation and other technological advancement can be easily implemented by an organization.

Purpose of Labor Relation: Institutional relationship: Labor relationships are institutionalized through legal

frame works. All actors have to work according to lows, rules and regulation, e.g. trade union act describe the rules and responsibility of worker.

Minimizes industrial conflicts:  Labor relation minimizes industrial conflicts like

disputes, grievances, strike lock outs etc, in the organization. 

Productivity:  Labor relation maintain inter-relation between

management and employees which foster the employees to do their work more efficiently which increase productivity harmonious labor relationship motivate employees to put more which will increase profit of an organizatnal

Actors in labor Relation / Actor of industrial relation systemThe key actors in labor relation are

workers, employees and society. These all actors play different role which can be shown by the help of following diagram.

Employee Grievances Concept: In simple word, grievance means employees

perceptions for unfair treatment on the job by management. It is feeling of dissatisfaction or discontent. Grievances are caused due to difference between the employees’ expectation and management. Hus, when employee’s complaint is brought to the notice of management, it becomes grievances.

Employee grievances are one of the important matters of concern for HRM. Since, when the people are dissatisfied with the management they usually complain labor relation. Organization must manage employee grievances effectively with the legal provision.

Grievances may be factual, imaginary or disguised. Factual grievances are best on facts. They arise from non fulfillment of service condts. And faulty implementations of HR policies imaginary grievances are based on expectations of employee. They arise from their own imagination which management can’t fulfill. Disguised grievances arise from hidden reasons which are ignored by organization. They are usually based on false information which management may not take seriously.

Causes of Employee Grievances According to Churdin and Sherman following are the

causes of grievances.

Interpretation differences: This is concerned with how employee and

management interpret the term and conditions of empt contract. Interpretation differences may arise due to use of such types of words in the contract which gives various and different meaning. Collective bargaining contract may be violated by management.

Management practices:  This is concerned with the employee perception of

unfair management practices such as poor communication, faculty implementation of HRM practices and decision, violations of estd procedure supervisory styles hat practice in consistency in application of rules and decision and finally amaguities in HRM policies and practices.

Causes of Employee Grievances Organizatnal culture: Employee grievance caused due to the poor

and strict culture of the organization as well as practices of autocratic leadership style. These types of organization culture create misunderstanding among employees.

Working condition :  Poor working condition unsystematic

physical facility cause grievance. If there is Un-alternative surrounding, poor lighting and ventilation and laud noise than employee grievance ultimately increase since, this type of poor working condition creates problem to perform day-by-day activities.

Employee Discipline Concept: In simple word, discipline means to follow rules,

regulation, procedures and stander of organization in order to achieve all over goals. Discipline is essential for maintenance of organizational peace. Harmonious organizational relation demands on self discipline of management as well as employees. Employees discipline is needed for effective HRM.

Employee should know about self-discipline since self-discipline is the best discipline which maintains self control. But, not all employees will accept the responsibilities of self-discipline. Some do not accept the norms’ of responsible employee’s behavior. For such undisciplined employee disciplinary action should be taken to maintain their orderly behaviors. Thus every employee should maintain discipline in an organization. Hey should follow rules and sanders of acceptable behavior willingly and obey them. Otherwise, if hey dis-obey and break down he rules and regulations then they may be punished by the management.

Types of Disciplinary Problems Attendance-related problems: A serious disciplinary problem faced by the

managers is an attendance related problem. Attendance related problem arise due to absentees of sick level, leaving work without permission, habitual tardiness, arriving late at work and other aspect of attendance. The problems also arise due to change in attitude towards empt when there is a great support from union and lack of harmony between individuals’ goals and organizational goals.

  Job behavior related problem: When employees do not obey the organization

rules and accept he standard of job than job related disciplinary Problem arise. job behavior arise due to refusal to obey, orders, fighting, gambling, failure to use safely devices, carelessness, failure to report accident and injury, arriving drunk on the job, use of drugs on the jobs, destruction of ppt and carrying fire arms at work.

General Guideline in Administrating Discipline

Discipline should be corrective: The main objective of discipline is to correct the

undesirable behavior of the employees. It is concerned with regulating the employee behavior through follow up of rules and regulation of an organization. Management should not emphasize on punishment rather than try to correct them. Since, self discipline is the best discipline. It should be promoted in order to overcome disciplinary problems.

  Disciplinary action should be progressive: What ever the action management takes in order

to maintain discipline in the organization that should be based on the frequency of the disciplinary problem Disciplinary action should generally be progressive. Progressive disciplinary action should oral warning, written warning, suspension, pay-cut, demotion and dismissal. The dismissal action should be taken when the problem is serious.

Types of Disciplinary Problems Dishonestly Related Problem: Dishonestly related problem arise due to theft,

falsification of empt records, punching time, cards of other employee, cancelling defective work and subversive activity. It is an assumed rightly or wrongly than an employee who lies or seals once can’t be trusted by the management and must be separated from the organization. The survey shows that 90% would discharge an employee for falsification of information. Dishonestly directly inflects on the human character than any other types of behavior.

  Outside activity related problems: The employees who are engaged in outside

activities either effect on the job performance or reflect negatively on the image of the organization. They arise due to unauthorized strikes activities for a competiting organization etc.

General Guideline in Administrating Discipline

Discipline should follow the Hot-Stove rules: The Hot-Stove rules were profounded by Mc

Gregar. This rule should be implemented immediacy to control violence and defense in the organization. Employee should be given advance warning prior to imitating disciplinary action. He should be aware about the rules. The organization should use Hot-Stove rules since when 1 touches it the burn is immediate, it produce sense of warning and the effect is consistence and impersonal. The rules for disciplinary action should be consistent for the same types of offence to make it fair.

Allow employees to give explanation: According to this principal, before implementing

the final disciplinary action, employee should be given an opportunity to explain. The concern authority should also hear it patiently before taking an action. 

Disciplinary Action/Process of handling discipline:

  Every organization has its own rules and

regulation. If he employees follow it and obey it than heir behavior is accepted by an organization. So, discipline implies the follow up of rules and regulation. The person who disobeys the rules and regulation requires the disciplinary action. It is the punishment to the employees when they violent the rules and standers. Disciplining action should be corrective progressive consistent and impersonal. But, generally disciplinary action follows progressive sequence of 6 steps. It can be show by the help of following figure.

Disciplinary Action/Process of handling discipline:

 

What is industrial dispute?

Industrial disputes may be said to be disagreement or controversy between management and labour with respect to wages, working conditions, other employment matters or union recognition.

Industrial Conflict: Forms And Causes

Industrial conflicts constitute militant and organized protests against existing industrial conditions. They are symptoms of industrial unrest. The term ‘industrial dispute’ as described in the Industrial Disputes Act, 1947 is characterized by the following features

Features of the term ‘industrial dispute’ There should be a difference or dispute The dispute could be between

employer- employer, employee-employee or employer-employee

The dispute must pertain to some work-related issue

The dispute must be raised by a group or class of workers. For example the dispute between one or two workers and the respective employer is not an industrial dispute

Methods of settling industrial disputesWithout state intervention

1.Collective bargainingI. Without conciliationII.With conciliation

2. voluntary arbitration

Methods of settling industrial disputesWith state intervention1. Compulsory establishment of bipartite

committees2. Establishment of Compulsory collective

bargaining3. Compulsory investigation4. Compulsory conciliation and mediation5. Compulsory arbitration or adjudication