Industrial Relations – Rajput Sir

INDUSTRIAL RELATIONS & LABOUR LAWS

OBJECTIVES

# SINCE INDUSTRIAL PEACE & HARMONY DEPENDS UPON GOOD

INDUSTRIAL RELATIONS, COLLECTIVE BARGAINING, PARTICIPATION OF
LABOUR IN THE MANAGEMENT etc. PRELIMINARY KNOWLEDGE OF VARIOUS
INDUTRIAL ACTIVITIES LEADING TO INDUSTRIAL RELATIONS & LABOUR
LAWS IS VERY ESSENTIAL.

# THE OBJECTIVE, THEREFORE, IS TO IMPART STUDENTS WITH LATEST &

RELEVENT KNOWLEDGE OF INDUSTRIAL RELATIONS & VARIOUS LABOUR
LAWS WITH A VIEW TO PROVIDE STUDENTS BASE FOR ONE OF THE HRM
ACTIVITY.

SYLLABUS FOR IR

1. INDUSTRIAL RELATIONS ( IR )----

( a ) ITS MEANING & OBJECTIVES.
( b ) FACTORS FOR GOOD IR.
( c ) HISTORY OF IR IN AN ENTERPRISE.
( d ) ECONOMIC SATISFACTION OF WORKERS.

2. THEORETICAL FRAMEWORK OF IR---

( a ) ENVIRONMENTAL OR EXTERNAL THEORIES.
( b ) INTERNALISTS OR IMPLANT.

3. THEORIES---GANDHAN APPROACH TO IR.

4. CAUSES OF INDUSTRIAL DISPUTES---INDUSTRIAL RELATIONS SCENE AT
PRESENT.
5. INDUSTRIAL RELATIONS MACHINERY-----
( a ) SETTLEMENT OF DISPUTES.
( b ) NEGOTIATIONS.
( c ) CONCILIATIONS
( d ) ARBITRATION. AND
( e ) ADJUDICATION OF DISPUTES.
6. LABOUR WELFARE------
( a ) PRINCIPLES.
( b ) CONCEPTS.
( c ) OBJECTIVES & SCOPE. AND
( d ) LABOUR WELFARE OFFICER.

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WHAT IS INDUSTRIAL RELATIONS ( IR ) ?

# INDUSTRIAL RELATIONS ( IR ) REFERS TO WORKPLACE & SOCIETAL

INTERACTIONS BETWEEN WORKERS & EMPLOYERS & RESULTING
EMPLOYMENT-RELATED OUTCOMES.

# IN ITS BROADEST MEANING, IR IS, “ ALL ASPECTS OF PEOPLE AT

WORK”---KOCHAN--1980

# THE LABOUR DICTIONARY DEFINES IR AS, “ THE RELATIONS BETWEEN

EMPLOYERS & EMPLOYEES ININDUSTRY”.

# THE INTERNATIONAL LABOUR ORGANIZATION ( ILO ), GENEVA, HAS USED

THE EXPRESSION TO DENOTE SUCH MATTERS AS “FREEDOM FOR
ASSOCIATION & THE RIGHT TO ORGANIZE, THE APPLICATION OF THE
PRINCIPLE OF THE RIGHT TO ORGANIZE & THE RIGHT TO COLLECTIVE
BARGAINING OF COLLECTIVE AGREEMENTS OR CONCILIATION &
ARBITRATION PROCEDDINGS & THE MACHINERY FOR COOPERATION
BETWEEN THE AUTHORITIES & THE OCCUPATIONAL ORGS AT VARIOUS
LEVELS OF THE ECONOMY”.

( CONCILIATE MEANS TO MEDIATE IN A DISPUTE; THAT IS TRY TO SETTLE

A DISPUTE BETWEEN TWO PARTIES )

# THE FIELD OF IR RECEIVED A THEORETICAL IMPETUS BY THE WORK OF

LOHN T. DUNLOP IN 1958 WHO DEFINED THE SCOPE & BOUNDRY OF IR.
THE SYSTEM WAS USED TO DESCRIBE THE CHARACTERISTICS OF ONE
COUNTRY AS DISTINGUISHED FROM ANOTHER. THE MODEL HIGHLIGHTS
THAT THE IR SYSTEM AT ANY ONE POINT OF TIME IN ITS DEVELOPMENT
CONSISTS OF CERTAIN ACTORS, CERTAIN CONTEXTS, AN IDEOLOGY WHICH
BINDS THE IR SYATEM TOGETHER & A BODY OF RULES CREATED TO
GOVERN THE ACTORS AT THE WORKPLACE & THE COMMUNITY.

# IN INDIA, THE EMPLOYMENT RELATIONSHIPS WERE INSTTUTIONALIZED IN

1920s WHEN TRADE UNION ACT ( 1962 ) WAS FORMULATED.

# KOCHAN ( 1980 ) HAS OBSERVED THAT LIKE ANY COMPLEX SOCIAL

SYSTEM, IR SYSTEMS ARE BEST UNDERSTOOD BY IDENTIFYING &
ANALYSING THEIR VARIOUS COMPONENTS & HOW THEY INTERACT WITH
ONE ANOTHER TO PRODUCE CERTAIN OUTCOMES.

# THE MAJOR COMPONENTS OF THE IR SYSTEM ARE :-

1. THE ACTORS---WORKERS & THEIR ORGS, MANAGEMENT, & GOVT.
2. CONTEXTUAL OR ENVIRONMENTAL FACTORS---LABOUR & PRODUCT
MARKETS, TECHNOLOGY, & COMMUNITY OR THE LOCUS &
DISTRIBUTION OF POWER IN THE LARGER SOCIETY.
3. PROCESS FOR DETERMINING THE TERMS & CONDITIONS OF
EMPLOYMENT----COLLECTIVE BARGAINING, LEGISLATION, JUDICIAL
PROCESS & UNILATERAL MANAGEMENT DECISIONS AMONG OTHERS.

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4. IDEOLOGY OR MINIMUM SET OF SHARED BELIEFS, SUCH AS THE
ACTORS’ MUTUAL ACCEPTANCE OF THE LEGITIMACY OF OTHER
ACTORS & THEIR ROLES, WHICH ENHANCE SYSTEM STABILITY. AND
5. OUTCOMES, INCLUDING WAGES & BENEFITS, RULES ABOUT WORK
RELATIONS, JOB SATISFACTION, EMPLOYMENT SECURITY, PRODUCTIVE
EFFICIENCY, INDUSTRIAL PEACE & CONFLICT & INDUSTRIAL
DEMOCRACY.

# THE BASIC PURPOSE OF THE IR SYSTEMS CONCEPT ARE TO PROVIDE A

CONCEPTUAL FRAMEWORK FOR ORGANISING KNOWLEDGE ABOUT IR &
FOR UNDERSTANDING HOW VARIOUS COMPONENTS OF IR SYSTEMS
COMBINE TO PRODUCE PARTICULAR OUT-COMES.

# IR REFERS TO A DYNAMIC & DEVELOPING CONCEPT WHICH IS NOT

LIMITED TO THE COMPLEX OF RELATIONS BETWEEN TRADE UNIONS &
MANAGEMENT BUT ALSO REFERS TO THE GENERAL WEB OF
RELATIONSHIPS NORMALLY OBTAINING BETWEEN EMPLOYERS & EMPLOYEES
—A WEB MUCH MORE COMPLEX THAN THE SIMPLE CONCEPT OF LABOUR-
CAPITAL CONFLICT.

# THE FEATURES OF IR ARE :-

1. IR ARE OUTCOME OF EMPLOYMENT RELATIONSHIP IN AN ORG.
2. AS A REGULATED RELATIONSHIPS THE FOCUS OF IT IS ON RULE-
MAKING BY PARTICIPANTS SO THAT THERE MAY BE UN-INTERRUPTED
PRODUCTION.
3. THE WORK SITUATION MAY PROVIDE METHODS OF ADJUSTMENT &
COOPERATION WITH EACH OTHER.
4. THE GOVT AGENCIES INVOLVE TO SHAPE THE INDUSTRIAL RELATION
THROUGH LAWS, RULES & AWARDS. AND
5. THE IMPORTANT ACTORS OF IR ARE EMPLOYEES OR THEIR ORGS,
EMPLOYERS & THEIR ASSOCIATES & GOVT.

# IR IS ALSO KNOWN AS LABOUR RELATIONS.

THEORIES & ASSUMPTIONS ( FROM ENCYCLOPEDIC DICTIONARY OF

HRM BY BLACKWELL )

KOCHAN ( 1980 ) HAS SUGGESTED THAT AN IMPORTANT FACTOR

DISTINGUISHING IR FROM ITS CONTRIBUTING DISCIPLINES & RELATED
AREAS
THAT IS HRs, IS A DISTINCTIVE SET OF VALUES & ASSUMPTIONS. THESE
COULD BE :-
1. LABOUR IS MORE THAN A COMMODITY. ( COMMODITY MEANS A RAW
MATERIAL OR AGRICULTURAL PRODUCT THAT CAN BE BOUGHT &
SOLD.)
2. THERE IS AN INHERRENT CONFLICT OF INTERESTS BETWEEN
EMPLOYERS & EMPLOYEES IN TERMS OF ECONOMIC MATTERS ( e. g.
WAGES VERSUS PROFIT ), BUT ALSO IN TERMS OF FRICTION IN
SUPERVISOR-SUBORDINATE RELATIONS.

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3. THERE ARE LARGE AREAS OF COMMON INTERESTS BETWEEN
EMPLOYERS & EMPLOYEES DESPITE THEIR CONFLICTING INTERESTS &
IMPORTANT INTERDEPENDENCIES.
4. THERE IS AN INHERENT INEQUALITY OF BARGAINING POWER IN MOST
INDIVIDUAL E-E RELATIONSHIPS. AND
5. THERE IS PLURALISM, THE NOTION THAT THERE ARE MULTIPLE
COMPETING INTERESTS GPS IN SOCIETY, EACH WITH VALID INTERESTS.
( PLURALISM MEANS DIFFERING CULTURES & VIEWS WITHIN A
SOCIETY ).

OBJECTIVES OF IR

1. TO PROTECT THE INTEREST OF WORKERS & THE MANAGEMENT

THROUGH MUTUAL UNDERSTANDING & RELATIONSHIPS.
2. TO AVOID INDUSTRIAL DISPUTES SO AS TO DEVELOP A HEALTHY
WORK ENVIRONMENT.
3. TO IMPROVE QUALITY OF WORK LIFE OF WORKERS.
4. TO INCREASE PERFORMANCE THROUGH REDUCING LABOUR
TURNOVER & FREQUENT ABSENTEEISM.
5. TO PROVIDE CONSTRUCTIVE CRITISM OF THE MANAGEMENT.
6. TO PROTECT THE WORKERS AGAINST HARMFUL EFFECTS ON THEIR
HEALTH, SAFETY & MORALITY THROUGH ENACTMENT OF DIFFERENT
LEGISLATIONS.
7. ESTABLISH INDUSTRIAL DEMOCRACY BASED ON LABOUR
PARTNERSHIP.
8. TO BOOST THE DISCIPLINE & MORALE OF WORKERS.
9. TO ELIMINATE, AS FAR AS POSSIBLE & PRACTICABLE, STRIKES,
LOCKOUTS & GHEAROS BY PROVIDING REASONABLE WAGES,
IMPROVED LIVING & WORKING CONDITIONS & FRINGE BENEFITS.

# ACCORDING TO KIRKALDY----IR IN A COUNTRY ARE INTIMATELY

CONNECTED WITH THE FORM OF ITS POLITICAL GOVT & THE OBJECTIVES
OF AN INDUSTRIAL ORG MAY CHANGE FROM ECONOMIC TO POLITICAL
ENDS. THUS HE DIVIDES THE OBJECTIVES OF IR INTO FOUR
CATEGORIES :-
1. IMPROVEMENT IN THE ECONOMIC CONDITIONS OF WORKERS IN THE
EXISTING STATE OF INDUSTRIAL MANAGEMENT & POLITICAL GOVT.
2. CONTROL EXERCISED BY THE STATE OVER INDUSTRIAL UNDERTAKINGS
WITH A VIEW TO REGULATING PRODUCTION & PROMOTING
HARMONIOUS IRs.
3. SOCIALISATION OR RATIONALISATION OS INDUSTRIES BY MAKING THE
STATE ITSELF A MAJOR EMPLOYER. AND
4. VESTING OF A PROPRIETARY INTEREST OF WORKERS IN THE
INDUSTRIES IN WHICH THEY ARE EMPLOYED.

SCOPE OF IR WORK

# THE STAFF EMPLOYED IN THE IR DEPT SHOULD KNOW THE

LIMITATIONS WITHIN WHICH IT HAS TO FUNCTION. THE INCHARGE OF IR

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GENERALLY REPORTS DIRECTLY TO THE HEAD OF AN ORG. THE
FUNCTIONS, THAT IS THE SCOPE, OF IR STAFF ARE :-
1. ADMINISTRATION, INCLUDING OVERALL ORG, SUPERVISION & CO-
ORDINATION OF IR POLICIES & PROGRAMMES.
2. LIAISON WITH OUTSIDE GPS & PERSONNEL DEPTS AS WELL AS WITH
VARIOUS CADRES OF MANAGEMENT STAFF.
3. THE DRAFTING OF REGULATIONS, RULES, LAWS OR ORDERS & THEIR
CONSTRUCTION & INTERPRETATION.
4. POSITION CLASSIFICATION, INCLUDING OVERALL DIRECTION OF JOB
ANALYSIS, SALARY & WAGE ADMINISTRATION, WAGE SURVEY & PAY
SCHEDULES.
5. EMPLOYEE COUNSELLING ON ALL TYPES OF PERSONAL PROBLEMS---
EDUCATIONAL, VOCATIONAL, HEALTH OR BEHAVIOUR PROBLEMS.
6. MEDICAL & HEALTH SERVICES.
7. SAFETY SERVICES INCLUDING FIRST AID TRG.
8. GP ACTIVITIES LIKE GP HEALTH INSURANCE, HOUSING, CAFETERIAL
PROGRAMMES & SOCIAL CLUBS.
9. SUGGESTION PLANS & THEIR USES IN LABOUR MANAGEMENT &
PRODUCTION COMMITTEES.
10. EMPLOYEE RELATIONS, ESPECIALLY COLLECTIVE BARGAINING WITH
REPRESENTATIVES & SETTLING GRIEVANCES.
11. PUBLIC RELATIONS.
12. RESEARCH IN OCCUPATIONAL TRENDS & EMPLOYEE ATTITUDES &
ANALYSIS OF LABOUR TURNOVER.

FACTORS / CONDITIONS FOR GOOD IR

# GOOD IR DEPEND ON VARIETY OF FACTORS & SOME OF THESE COULD

BE :-
1. HISTORY OF INDUSTRIAL RELATIONS IN AN ENTERPRISE-----A GOOD
HISTORY IS MARKED BY HARMONIOUS RELATIONSHIPS BETWEEN
MANAGEMENT & WORKERS IN AN ENTERPRISE. ONCE MILITANCY IS
ESTABLISHED AS A MODE OF OPERATIONS, THERE IS TENDENCY TO
CONTINUE. IT TAKES TIME TO CHANGE. ( HERE MILITANCY MEANS
AGGRESSIVE & COMBATIVE IN SUPPORT OF A PARTICULAR CAUSE. )
2. ECONOMIC SATISFACTION OF WORKERS------REASONABLE WAGE &
BENEFITS ARE IMPORTANT FOR WORKERS WHICH SHOULD BE
COMPARABLE IN OTHER SIMILAR ORGS.
3. SOCIAL & PSYCHOLOGICAL SATISFACTION------WORKER PARTICIPATION
IN MANAGEMENT, MACHINERY FOR REDRESSAL OF GRIEVANCES,
SUGGESTION SCHEMES, JOB ENRICHMENT, EFFECTIVE TWO-WAY
COMN, REGULAR UNION-MANAGEMENT NEGOTIATIONS etc. ARE
IMPORTANT ASPECTS. ( JOB ENRICHMENT MEANS REDESIGNING JOBS
IN A WAY THAT INCREASES THE OPPORTUNITIES FOR THE WORKER
TO EXPERIENCE FEELINGS OF RESPONSIBILITY, ACHIEVEMENT,
GROWTH & RECOGNITION.)
4. OFF-THE-JOB CONDITIONS------LIVING CONDITIONS OF WORKERS ARE
IMPORTANT. WE EMPLOY THE “ WHOLE PERSON”. HIS HOME LIFE IS
NOT TOTALLY SEPERABLE FROM HIS WORK LIFE.
5. ENLIGHTENED & RESPONSIBLE TRADE UNIONS------WHICH MAY
PROMOTE THE STATUS OF LABOUR WITHOUT JEOPARDISING THE

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INTERESTS OF ENTERPRISE. UNIONS TO TELL ABOUT WORKERS’
RESPONSIBILITIES TO ORG. TRADE UNIONS TO MAINTAIN GOOD
RELATIONS WITH MANAGEMENT & AVOID MILITANCY & STRIKES.
TRADE UNIONS TO DEVELOP & ENCOURAGE RIGHT KIND OF
LEADERSHIP. INFACT POLITICALISATION & MULTIPLICITY OF UNIONS
LEADS TO RIVALRY.
6. NEGOTIATING SKILLS & ATTITUDES OF MANAGEMENT & WORKERS TO
BE DEVELOPED SO THAT :-
( a ) BOTH PARTIES SHOULD HAVE APPROACH TO ARRIVE AT AN
AGREEMENT & NOT ONLY RAISE CONFLICTS.
( b ) PARTIES MUST HAVE CONFIDENCE ON EACH OTHER. EMPATHY &
OPEN MIND ARE IMPORTANT RELIANCE ON COLLECTIVE BARGAINING
IS VITAL.
( HERE EMPATHY MEANS ABILITY TO UNDERSTAND & SHARE THE
FEELINGS OF ANOTHER ).
( c ) MUTUAL TRUST & RESPECT IN ORG. AND
( d ) BOTH PARTIES SHOULD DEVELOP CONSTRUCTIVE APPROACH &
BELIEVE IN HONOURING AGREEMENTS.

7. PUBLIC POLICY & LEGISLATIONS-------GOVT TO INTERVENE IN

ENFORCING LABOUR LAWS SO AS TO PREVENT CONFLICTS / FIRES
RATHER THAN TO TRY STOPPING THEM AFTER THEY START.
8. BETTER EDN TO WORKERS TO ADOPT SENSE OF RESPONSIBILITY &
PROBLEM SOLVING APPROACH. THEY SHOULD NOT BE MISLED BY
UNION LEADERS WHO HAVE THEIR OWN AXE TO GRIND THAT IS
SELF INTEREST. AND
9. INDUSTRIAL EMPLOYMENT STANDING ORDERS DETERMINING TERMS &
CONDITIONS OF SERVICE SHOULD BE FINALISED & EVERY EMPLOYEE
SHOULD KNOW THESE.

HISTORY OF IR

# IR AS A FIELD OF STUDY & PRACTICE HAS BEEN IN EXISTENCE SINCE

THE INDUSTRIAL REVOLUTION IN UK & SINCE 1920 IN THE USA. THE
HISTORY OF IR COULD BE TABULATED AS FOLLOWS :-

SR PERIOD ACTIVITY
1. 1920 & 1926 IN IDIA, EMPLOYMENT RELATIONSHIPS WERE
INSTITUTIONALIZED & TRADE UNION ACT WAS
FORMULATED IN 1926.
2. 1853 & 1855 FIRST COTTON FACTORY IN INDIA WAS SET UP AT
BOMBAY IN 1853, FOLLOWED BY JUTE MILL AT
CALCUTTA IN 1855.
3. 1855 & 1875 FATAL ACCIDENT ACT LEGISLATION IN 1855 &
WORKMEN’S BREACH OF CONTRACT ACT IN 1875---
SERVING THE INTEREST OF EMPLOYERS ONLY.
4. UNDER EAST INDIA COY PURSUED A POLICY OF DELIBERATE
COLONIAL DISCOURAGEMENT OF INDUSTRIALIZATION OF INDIA.
RULE INDIA WAS PUSHED DOWN & KEPT AS A MARKET FOR
RAW MATERIALS & FINISHED GOODS OF BRITISH
MANUFACTURERS.---LONG HOURS OF WORK,

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UNHEALTHY WORKING CONDITIONS, LOW WAGE RATE,
EMPLOYER MILITANCY & A POLICY OF NON-
INTERFERENCE ROLE BY GOVT.
5. 1881 THE FIRST FACTORIES ACT WAS ENACTED TO
REGULATE THE CONDITIONS OF LABOUR.
6. 1887 THE FIRST STRIKE IN EXPRESS MILLS AT NAGPUR.
7. 1923 & 1926 WORKMEN’S COMPENSATION ACT OF 1923 AND TRADE
UNION ACT 1926.
8. 1929 TO THE ROYAL COMMISSION ON LABOUR REPORT 1929;
1936 FACTORIES ACT 1934 & PAYMENT OF WAGES ACT
1936.
9. 1946 INDUSTRIAL EMPLOYMENT ( STANDING ORDERS ) ACT
ONWARDS 1946; THE INDUSTRIAL DISPUTES ACT 1947; THE
FACTRIES ACT 1948; THE MINIMUM WAGES ACT 1948;
THE EMPLOYEE STATE INSURANCE ACT 1948.

# THE PRESSURE ON THE REFORM OF LABOUR LAW, LABOUR

ADMINISTRATION & LABOUR JUDICIARY MOUNTS IN THE WAKE OF THE
CHALLENGES OF LPG. THERE ARE AROUND FIFTY CENTRAL LABOUR LAWS
& 150 STATE LEGISLATIONS, CREATING AMBIGUITY IN IMPLEMENTATION &
LABOUR ADMINISTRATION. STILL AN ORG HAS TO COMPLY WITH SEVERAL
LEGISLATIONS WHILE CARRYING OUT THE HR FUNCTIONS FOR CREATING
A CAPABLE & COMMITTED WORKFORCE.

LEGAL FRAMEWORK OF HRM

# HRM IS A BODY OF KNOWLEDGE & A SET OF PRACTICES THAT DEFINE

THE NATURE OF WORK & REGULATE THE EMPLOYMENT RELATIONSHIPS. A
SUMMARY OF LABOUR LAWS APPLICABLE TO DIFFERENT HR FUNCTIONS
OF AN ORG IS GIVEN BELOW :-

# STAFFING--- 1. THE CHILD LABOUR ( PROHIBITION & REGULATION ) ACT-

1986.
2. THE EMPLOYMENT EXCHANGE ( COMPULSORY
NOTIFICATION OF
VACANCIES ) ACT-1959.
3. THE APPRENTICE ACT—1961.
4. THE CONTRACT LABOUR ( REGULATION & ABOLITION ) ACT-
1970.
5. BONDED LABOUR SYSTEM ( ABOLITION ) ACT—1976.

# COMPENSATION & REWARDS----

1. THE PAYMENT WAGES ACT ---1936.
2. THE MINIMUM WAGES ACT---1948.
3. THE PAYMENT OF BONUS ACT---1965.
4. THE EQUAL REMUNERATION ACT—1976.

# EMPLOYEE MAINTENANCE-----
1. THE FACTORIES ACT---1948.
2. THE MINES ACT—1952.

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3. THE EMPLOYEES’ PROVIDENT FUNDS & MISCELLANEOUS PROVISIONS
ACT---1959.
4. THE EMPLOYEES’ STATE INSURANCE ACT---1948.
5. PAYMENT OF GRATUITY ACT---1972.
6. THE WORKMEN’S COMPENSATION ACT---1923. AND
7. THE MATERNITY BENEFITS ACT---1961.

# EMPLOYEE RELATIONS-------
1. THE TRADE UNIONS ACT---1926.
2. THE INDUSTRIAL DISPUTES ACT---1947.
3. THE INDUSTRIAL EMPLOYMENT ( STANDING ORDERS ACT ) –1946. AND
4. THE SALES PROMOTIONS EMPLOYEES ( CONDITIONS OF SERVICE ) ACT
—1976.

# HAVING SEEN VARIOUS LABOUR LAWS CONNECTING HR FUNCTIONS,

NOW LET US SEE PROFILE OF LABOUR LEGISLATION IN INDIA :-
PROFILE OF LABOUR LEGISLATION IN INDIA :-
# STANDARDS & NORMS LEGISLATIONS-----
1. FACTORIES ACT.
2. SHOPS & ESTABLISHMENTS ACT.
3. MINES ACT.
4. PLANTATION LABOUR ACT.
5. INDIAN MERCHANTS SHIPPING ACT.
6. MINIMUM WAGES ACT
7. PAYMENT OF WAGES ACT. AND
8. INDIAN TRADE UNIONS ACT.

# WELFARE & AMENITIES LEGISLATIONS-----

1. MATERNITY BENEFITS ACT.
2. EMPLOYEES STATE INSURANCE ACT.
3. WORKMEN’S COMPENSATION ACT.
4. EMPLOYEES PROVIDENT FUND ACT. AND
5. GRATUITY ACT.

# DISPUTES PROCESSING & RIGHTS OF PARTIES LEGISLATIONS-----

1. COLLECTIVE MATTERS—CENTRAL ACTS—INDUSTRIAL DISPUTE ACT;
SALES
PROMOTION
EMPLOYEES ACT AND
PAYMENT OF BONUS
ACT.

2. INDIVIDUAL MATTERS---CENTRAL ACT---INDUSTRIAL EMPLOYEES

STANDING ORDERS ACT & MODEL STADING ORDERS GOVERING
CONTRACT OF EMPLOYMENT.

3. STATE ACTS-----BOMBAY INDUSTRIAL RELATIONS ACT; MAHARASHTRA

ACT FOR PREVENTION OF UNFAIR LABOUR PRACTICES & COMPULSORY
RECOGNITION OF TRADE UNIONS.

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FUTURE OF IR IN INDIA

# THE FUTURE OF IR IN INDIA CAN BE REVIEWED FROM REPORTS OF

THE COMMISSIONS CONSTITUTED BY THE GOVT FOR THIS PURPOSE. FROM
THESE REPORTS CERTAIN ISSUES ARE EMERGING WHICH ARE POSING
CHALLENGES TO THE THREE “ACTORS”----EMPLOYERS, EMPLOYEES &
GOVT-----IN THE SYSTEM THESE ISSUES ARE :-
1. COLLECTIVE BARGAINING---THIS IS AN ISSUE OF STRENGTHENING
COLLECTIVE BARGAINING BY TRYING TO DETERMINE A SOLE
BARGAINING AGENT FOR NEGOTIATIONS. COLLECTIVE BARGAINING IS
ADVOCATED WHERE THE PARTIES HAVE A FULLER UNDERSTANDING.
THIS WILL HELP TO ARRIVE AT A SPEEDIER SETTLEMENT OF
DISPUTES BETWEEN THEMSELVES. THE STATE OF MAHARASHTRA HAS
ALREADY PASSED A LAW FOR THE CREATION OF A SOLE
BARGAINING AGENCY IN EVERY UNIT & INDUSTRY.
2. GAPS BETWEEN CENTRAL & STATE LEGISLATIONS-----THIS ISSUE
RELATES TO THE GAPS THAT ARE OCCURING AS A RESULT OF THE
VARIATIONS THAT OCCUR IN CENTRAL & STATE LEGISLATIONS AS
FAR AS LABOUR MATTERS ARE CONCERNED. NCL ( NATIONAL
COMMISSION OF LABOUR ) HAS MADE A RECOMMENDATION FOR
FORMING A COMMON LABOUR CODE WHICH IS YET TO BE ADOPTED.
ADOPTION OF THIS RECOMMENDATION WILL GO A LONG WAY IN
SOLVING SOME OF THE PROBLEMS THAT INDIA’S LEGISLATION
PROCESS IS FACING.
3. WORKERS’ PARTICIPATION IN MANAGEMENT----INDIA HAS ALREADY
EXPERIENCED THE WORKING OF MANY FORMS OF WORKER-
PARTICIPATION SCHEMES BUT NONE OF THEM SEEMS TO HAVE MADE
ANY HEADWAY. THE REASONS FOR THE FAILURE OF THESE SCHEMES
NEED TO BE PROBED INTO.

# THE THREE ACTORS IN THE SYSTEM NEED TO TAKE INTO ACCOUNT

THE EFFECT OF THEIR ACTIONS ON THE CONSUMERS & SOCIETY IN
GENERAL, OWING TO THE GROWING INTER-LINKAGES BETWEEN
INDUSTRY & ITS ENVIRONMENT. THEY HAVE TO EVALUATE & DECIDE
ON THE APPROPRIATE ALTERNATIVES IN TERMS OF THE STRATEGY THEY
ARE GOING TO ADOPT IN MANAGING THE PERSONNEL & IR FUNCTIONS.

# THE ENVIRONMENT IS FAST CHANGING & THE PRESSURES FROM

VARIOUS GPS INVOLVED ARE STARTING TO GET MORE VOCAL &
INTENSE. THE STRATEGY CHOSEN FOR THE ATTAINMENT OF THE GOALS
WILL HAVE TO DEPEND ON THE OBJECTIVES, VALUES, STRUCTURES
AVAILABLE & THE ENVIRONMENT IN WHICH THEY HAVE TO OPERATE.

# RECOMMENDATIONS OF SECOND NATIONAL COMMISSION ON LABOUR,

2002 ---
HANDOUT

PROBLEMS & CAUSES OF IR / INDUSTRIAL DISPUTES

# THE CAUSES COULD BE GROUPED IN FOUR BROAD CATEGORIES :-

1. INDUSTRIAL FACTORS.

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2. MANAGEMENT’S ATTITUDE TOWARDS WORKERS.
3. ROLE OF GOVT MACHINERY. AND
4. OTHER CAUSES.

# INDUSTRIAL FACTORS—RELATING TO EMPLOYMENT, WORK, WAGES,

HOURS OF WORK, PRIVILEGES, CONDITIONS OF EMPLOYMENT ,
OBLIGATIONS OF EMPLOYEES, ATTITUDE OF WORKERS & INCREASING
PRICES & DEMAND FOR INCREASE IN DA.

# MANAGEMENT’S ATTITUDE TOWARDS WORKERS---DISINTEREST OF

MANAGEMENT TO DISCUSS WITH WORKERS, MANAGEMENT’S
UNWILLINGNESS TO RECOGNISE A PARTICULAR TRADE UNION, NOT
INVOLVING THE WORKERS IN DECISION-MAKING, VERY LITTLE CONCERN
FOR TRG, COMN GAPS, DELAYS IN DECISIONS AFFECTING WORKERS
REQUIREMENTS etc.

# ROLE OF GOVT MACHINERY----

( a )NOT SUCCESSFUL IN IMPLEMENTING LABOUR LAWS,
( b )INABILITY TO MEDIATE IN DISPUTES.
( c ) EMPLOYEES & MANAGEMENT’S LOSS OF CONFIDENCE.
( d )IRRELEVENCE OF CERTAIN PROVISIONS OF LABOUR LAWS & ROLE
IN THE
CONTEXT OF CHALLENGE OF PRESENT INDUSTRIAL CLIMATE &
IMPERATIVE
OF DEVELOPMENT DUE TO COMPETITIVE ENVIRONMENT.

# OTHER CAUSES---
( a ) AFFILIATION OF TRADE UNIONS WITH POLITICAL PARTIES &
LEADERSHIP,
THEREBY BRINGING PRESSURES FOR ACCEPTING THEIR DEMANDS.
( b ) POLITICAL INSTABILITY & POOR CENTRE-STATE RELATIONS
CONTRIBUTE TO
INDUSTRIAL CONFLICTS. AND
( c ) CHARACTER CRISIS & VALUES OF TRADE UNION LEADERS.

# SOME ADDITIONAL IMPORTANT SOURCES OF UNION -MANAGEMENT

CONFLICTS COULD BE SUMMERISED AS UNDER :-
1. PROFIT----BOTH AGREE ORGS TO MAKE PROFIT BUT UNIONS FEEL
THEY ARE NOT GETTING ENOUGH PAY & BENEFITS. UNIONS CONTEST
THE DISTRIBUTION OF PROFITS.
2. SECURITY OF JOBS----EARLIER ORG GOAL WAS TO PROVIDE JOBS. IT
IS NOW REPLACED BY ORG TO PROVIDE SECURITY OF JOB DUE TO
COMPETITIVE ENVIRONMENT.
3. RIGHT TO MANAGE----MANAGEMENT WOULD LIKE TO RETAIN
DECISION-MAKING AUTHORITY & WARD-OFF ENCROACHMENT.
HOWEVER, UNIONS SEEK TO INCREASE BARGAINING ISSUES.
4. SENIORITY----UNIONS PLEAD FOR SENIORITY PRINCIPLES FOR
PROMOTION etc. & DISREGARD ABILITY AS SUBJECTIVE. HOWEVER,
MANAGEMENT RESIST SENIORITY SYSTEM IN FAVOUR OF
PRODUCTIVITY & MERIT.

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5. PRODUCTIVITY----WORKERS WANT MORE COMPENSATION FOR MORE
PRODUCTIVITY. PRODUCTIVITY IS A RESULT OF LABOUR, CAPITAL,
TECHNOLOGY & OTHER FACTORS. THE PROBLEM IS IN DETERMINING
HOW MUCH IS DUE TO LABOUR & HOW MUCH DUE TO OTHER
FACTORS.
6. INFLATION----LINKING WAGES TO COST OF LIVING INDEX.
7. INDUSTRIAL RELATIONS SCENE AT PRESENT-----IR ARE COMPLICATEDBY
FACTORS SUCH AS---GROWING INDISCIPLINE, FREQUENT BREAK-DOWN
OF LAW & ORDER & POLITICAL PRESSURES. Irs ARE IN IMPASSE.
ORGs ARE BUSY IN FIRE-FIGHTING BASED ON STRATEGY OF
CONFLICT. MOST OF THE PROBLEMS ARE CONNECTED WITH
WEAKNESSES OF TRADE UNIONS.

# SO CHALLENGE LIES IN SEEKING STABLE-PROTECTIVE IR ENVIRONMENT

INSTEAD OF FIRE-FIGHTING. MANAGEMENT SHOULD LEARN TO LIVE WITH
THE UNION. SOME OF THE STEPS REQUIRED ARE :-
1. REFORM OF LABOUR LAWS IS OVERDUE & REQUIRES TO BE
EXPEDITED.
2. COLLECTIVE BARGAINING IS THE ONLY HOPE & TO PREFER
INTEGRATIVE BARGAINING RATHER THAN DISTRIBUTIVE BARGAINING.
3. MANAGEMENTS HAVE TO BUILD HEALTHY IR THROUGH CONTINUING
DIALOGUE & BUILD COOPERATIVE RELATIONSHIP WITH UNIONS.
4. PRODUCE MORE & DISTRIBUTE MORE COULD BE THE SLOGAN.
5. INVOLVEMENT OF WORKERS IN SUITABLE MANAGEMENT FUNCTIONS.
6. WORKERS SHOULD BE REPRESENTED BY ELECTED MEMBERS RATHER
THAN UNIONS.

SUMMARY

1. WHAT IS IR ?
2. THE MAJOR COMPONENTS OF IR SYSTEM.
3. FEATURES OF IR.
4. THEORIES & ASSUMPTIONS.
5. OBJECTIVES OF IR.
6. SCOPE OF IR WORK.
7. FACTORS / CONDITIONS FOR GOOD IR.
8. HISTORY OF IR.
9. LEGAL FRAMEWORK OF HRM.
10. PROFILE OF LABOUR LEGISLATION IN INDIA. AND
11. FUTURE OF IR IN INDIA.
12. PROBLEMS & CAUSES OF IR / INDUSTRIAL DISPUTES.

EMPLOYEE GRIEVANCES
TOPICS TO BE COVERED

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1. GRIEVANCES.
2. NATURE.
3. TYPES.
4. CAUSES.
5. MACHINERY FOR REDRESSAL OF GRIEVANCES.
6. GRIEVENCES & IR.

INTRODUCTION

# THE PROCESS OF INTEGRATING INTERESTS REQUIRES BOTH PREVENTIVE

& CURATIVE ACTIVITIES. DESPITE THE BEST OF MANAGEMENT PRACTICES
IN ACTING & COMMUNICATING, CONFLICTS BETWEEN E-E WILL OCCUR. A
TOTAL ABSENCE OF CONFLICT WOULD BE UNBELIEVABLE, BORING & A
STRONG INDICATION THAT SUCH CONFLICTS ARE BEING SUPPRESSED.

# ONE OF THE CHARACTERISTICS OF A MATURE GP IS ITS WILLINGNESS

& ABILITY TO BRING SUPPRESSED CONFLICTS TO THE SURFACE WHERE
THEY MAY BE DISCUSSED WITH A GREATER OPPORTUNITY OF
RESOLUTION. IT WOULD BE NAÏVE TO INSIST THAT ALL CONFLICTS CAN
BE ELIMINATED IN SOME MANNER OR OTHER, BUT THEIR EXPOSURE &
DISCUSSION WILL CONTRIBUTE GREATLY TOWARD THEIR REDUCTION.

# CONFLICT PER SE IS NEITHER BAD NOR CONTRARY TO GOOD ORG.

DISAGREEMENTS & DISSATISFACTIONS CAN LEAD TO RE-EXAMINATION OF
BASIC ASSUMPTIONS & PRACTICES, TO THE END THAT ADJUSTMENTS CAN
BE MADE TO IMPROVE OVERALL ORG EFFECTIVENESS.

WHAT IS GRIEVANCES ?

# THERE IS HARDLY A COY OR AN INDUSTRY CONCERN WHICH

FUNCTIONS ABSOLUTELY SMOOTHLY AT ALL TIMES. IN SOME, THE
EMPLOYEES HAVE COMPLAINTS AGAINST THEIR EMPLOYERS, WHILE IN
OTHERS IT IS EMPLOYERS WHO HAVE A GRIEVANCE AGAINST THEIR
EMPLOYEES. THESE GRIEVANCES MAY BE REAL OR IMAGINARY, VALID OR
INVALID, GENUINE OR FALSE. BROADLY SPEAKING, A COMPLAINT
AFFECTING ONE OR MORE WORKERS CONSTITUTES A GRIEVANCE. A
COMPLAINT BECOMES A GRIEVANCE WHEN THE DISSATISFACTION, WHICH
IS MOSTLY RELATED TO WORK, IS BROUGHT TO THE NOTICE OF THE
MANAGEMENT.

# MANY MANAGEMENTS DISTINGUISH BETWEEN A “COMPLAINT” & A

GRIEVANCE. A COMPLAINT IS A DISCONTENT OR DISSATISFACTION THAT
HAS NOT, AS YET, ASSUMED A GREATER MEASURE OF IMPORTANCE TO
THE COMPLAINANT. COMPLAINTS ARE OFTEN SUBMITTED IN A HIGHLY
INFORMAL FASHION. AN EMPLOYEE MAY COMPLAIN THAT IT IS TOO HOT
IN THE SHOP, THAT ANOTHER EMPLOYEE WILL NOT COOPERATE OR THAT
ONE HAS BEEN ASSIGNED A DISTASTEFUL JOB. THERE ARE MANY MORE
COMPLAINTS THAN THERE ARE GRIEVANCES.

# A COMPLAINT BECOMES A GRIEVANCE WHEN THE EMPLOYEE FEELS

THAT AN INJUSTICE HAS BEEN COMMITTED. IF THE SUPERVISOR IGNORES

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THE COMPLAINT & THE DISSATISFACTION GROWS WITHIN THE EMPLOYEE,
IT USUALLY ASSUMES THE STATUS OF A GRIEVANCE.

# A GRIEVANCE, IN BUSINESS ORG, IS ALWAYS EXPRESSED, EITHER

VERBALLY OR IN WRITING. IT CAN, OF COURSE, BE EITHER VALID OR
RIDICULOUS & MUST GROW OUT OF SOMETHING CONNECTED WITH COY
OPERATIONS POLICY. IN MANY INSTANCES IT MUST INVOLVE AN
INTERPRETATION OR APPLICATION OF PROVISION OF THE LABOUR
CONTRACT.

# “ A WRITTEN COMPLAINT FILED BY AN EMPLOYEE & CLAIMING UNFAIR

TREATMENT”------DALE YODER

# “ ANY REAL OR IMAGINED FEELING OF PERSONAL INJUSTICE WHICH AN

EMPLOYEE HAS CONCERNING HIS EMPLOYMENT RELATIONSHIP”---KEITH
DAVIS

# “ A GRIEVANCE IS ANY DISCONTENT OR DISSATISFACTION, WHETHER

EXPRESSED OR NOT, WHETHER VALID OR NOT, ARISING OUT OF
ANYTHING CONNECTED WITH THE COY WHICH AN EMPLOYEE THINKS,
BELIEVES OR EVEN FEELS TO BE UNFAIR, UNJUST OR INEQUITABLE”----
JUCIUS.

# “ ANY DISSATISFACTION OR FEELING OF INJUSTICE IN CONNECTION

WITH ONE’S EMPLOYMENT SITUATION THAT IS BROUGHT TO THE NOTICE
OF THE MANAGEMENT”---BEACH

# “ COMPLAINTS AFFECTING ONE OR MORE INDIVIDUAL WORKERS IN

RESPECT OF WAGE PAYMENTS, OVERTIME, LEAVE, TRANSFER, PROMOTION,
SENIORITY, WORK ASSIGNMENT & DISCHARGES CONSTITUTE
GRIEVANCES”----NATIONAL COMMISSION OF LABOUR.

# “ A COMPLAINT OF ONE OR MORE WORKERS IN RESPECT OF WAGES,

ALLOWANCES, CONDITIONS OF WORK & INTERPRETATION OF SERVICE
STIPULATIONS, COVERING SUCH AREAS AS OVERTIME, LEAVE, TRANSFER,
PROMOTION, SENIORITY, JOB ASSIGNMENT & TERMINATION OF SERVICE”—
ILO.

# ANALYSIS OF THESE VARIOUS DEFINITIONS, IT MAY BE NOTED THAT :-

1. GRIEVANCE IS A WORD WHICH COVERS DISSATISFACTION & WHICH
HAS ONE
OR MORE OF THE FOLLOWING CHARACTERISTICS :-
( a ) IT MAY BE UNVOICED OR EXPRESSLY STATED BY AN EMPLOYEE.
( b ) IT MAY BE WRITTEN OR VERBAL.
( c ) IT MAY BE VALID & LEGITIMATE,UNTRUE OR COMPLETELY FALSE,
OR
RIDICULOUS. AND
( d ) IT MAY ARISE OUT OF SOMETHING CONNECTED WITH THE ORG
OR
WORK.
2. AN EMPLYEE FEELS THAT AN INJUSTICE HAS BEEN DONE TO HIM.

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3. GRIEVANCES ARE FEELINGS, SOMETIMES REAL, SOMETIMES IMAGINED,
WHICH AN EMPLOYEE MAY HAVE IN REGARD TO HIS EMPLOYMENT
SITUATION.
4. THE ONLY MAJOR RESTRICTION IN THESE DEFINITIONS IS THAT THE
DISCONTENT MUST AFFECT WORKER PERFORMANCE.

# THE BROAD DEFINITION OF A GRIEVANCE HAS ITS VALUE AS FAR AS

BASIC MANAGERIAL PHILOSOPHY IS CONCERNED. THE MANAGER HAS TO
BE CONCERNED WITH ALL DISCONTENT REGARDLESS OF A PERSONAL
OPINION OF THEIR VALIDITY. ONE HAS TO WATCH FOR UNEXPRESSED
DISSATISFACTIONS. THUS IT IS THE BASIS FOR A SOUND APPROACH TO
THE DEVELOPMENT OF GOOD MORALE. A MANAGER MUST KNOW THE
PULSE OF THE WORKERS.

NATURE OF GRIEVANCE

# A GRIEVANCE MAY BE SUBMITTED BY A WORKER, OR SEVERAL

WORKERS, IN RESPECT OF ANY MEASURE OR SITUATION WHICH DIRECTLY
AFFECTS OR IS LIKELY TO AFFECT, THE CONDITIONS OF EMPLOYMENT OF
ONE OR SEVERAL WORKERS IN THE ORG. WHERE A GRIEVANCE IS
TRANSFORMED INTO A GENERAL CLAIM---EITHER BY THE UNION OR BY A
LARGE NUMBER OF WORKERS---IT FALLS OUTSIDE THE GRIEVANCE
PROCEDURE & NORMALLY COMES UNDER THE PURVIEW OF COLLECTIVE
BARGAINING.

# FOLLOWING AREAS ARE CAUSES OF EMPLOYEE GRIEVANCES :-

1. PROMOTION.
2. AMENITIES.
3. CONTINUITY OF SERVICE.
4. COMPENSATION.
5. DISCIPLINARY ACTION.
6. FINES.
7. INCREMENTS.
8. LEAVE.
9. MEDICAL BENEFITS.
10. NATURE OF JOB.
11. PAYMENT.
12. ACTING PROMOTIONS.
13. RECOVERY DUES.
14. SAFETY APPLIANCES.
15. SUPERSESSION.
16. WORKING CODITIONS.
17. TRANSFERS.
18. VICTIMIZATION.

# A GRIEVANCE HAS A NARROWER PERSPECTIVE; IT IS CONCERNED WITH

THE INTERPRETATION OF A CONTRACT OR AWARD AS APPLIED TO AN
INDIVIDUAL OR A FEW EMPLOYEES.

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TYPES OF GRIEVANCES

# FROM THE CAUSES OF GRIEVANCES, WE CAN DERIVE TYPES OF

GRIEVANCES, WHICH COULD BE :-
1. CONCERNING WAGES.
2. CONCERNING SUPERVISION.
3. CONCERNING INDIVIDUAL ADVANCEMENT.
4. GENERAL WORKING CONDITIONS.
5. COLLECTIVE BARGAINING.

# ONE AUTHOR HAS OBSERVED, “ AN EMPLOYEE’S CONCERN FOR HIS JOB

SECURITY MAY PROMPT A GRIEVANCE OVER A TRANSFER, WORK
ASSIGNMENT, OR PROMOTION. SOMETIMES BAD RELATIONS BETWEEN
SUPERVISORS & SUBORDINATES ARE TO BLAME—THIS IS OFTEN THE
CAUSE OF GRIEVANCES OVER FAIR TREATMENT. ORG FACTORS LIKE
AUTOMATED JOBS OR AMBIGUOUS JOB DESCRIPTION THAT FRUSTRATE OR
AGGRAVATE EMPLOYEES ARE OTHER POTENTIAL CAUSES OF GRIEVANCES.
UNION ACTIVISM IS ANOTHER CAUSE. FOR EXAMPLE, THE UNION MAY
SOLICIT GRIEVANCES FROM WORKERS TO UNDERSCORE INEFFECTIVE
SUPERVISION. PROBLEM EMPLOYEES ARE YET ANOTHER CAUSE OF
GRIEVANCES. THESE ARE INDIVIDUALS, WHO, BY THEIR NATURE, ARE
NEGATIVE, DISSATISFIED & GRIEVANCE PRONE”

MACHINERY FOR REDRESSAL OF GRIEVANCES

# REDRESSAL MEANS REMEDY OR SET RIGHT AN UNDESIRABLE OR

UNFAIR SITUATION.

# ARBITRATION CAN BE BROADLY DEFINED AS A DISPUTE RESOLUTION

PROCESS IN WHICH TWO PARTIES VOLUNTARILY AGREE TO ACCEPT AN
IMPARTIAL ARBITRATOR’S FINAL & BINDING DECISION ON THE MERITS OF
THE PARTIES’ DISPUTE. AN AEBITRATOR SITS AS A JUDGE OVER THE
PARTIES DISPUTE, HIS OR HER DECISION IS LEGALLY BINDING ON THE
PARTIES & AN ARBITRATION PROCEEDING IS LESS FORMAL THAN A
COURT TRIAL.

# A GRIEVANCE PROCEDURE IS A FORMAL PROCESS WHICH IS

PRELIMINARY TO AN ARBITRATION, WHICH ENABLES THE PARTIES
INVOLVED TO ATTEMPT TO RESOLVE THEIR DIFFERENCES IN A PEACEFUL,
ORDERLY & EXPEDITIOUS MANNER. IT ENABLES THE COY & THE TRADE
UNION TO INVESTIGATE & DISCUSS THE PROBLEMS AT ISSUE WITHOUT IN
ANY WAY INTERRUPTING THE PEACEFUL & ORDERLY CONDUCT OF
BUSINESS. WHEN GRIEVANCE REDRESSAL MACHINERY WORKS EFFECTIVELY,
IT SATISFACTORILY RESOLVES MOST OF THE DISPUTES BETWEEN LABOUR
& MANAGEMENT.

# AN IMPORTANT ASPECT OF GRIEVANCE MACHINERY IS THE

REASSURANCE GIVEN TO AN INDIVIDUAL EMPLOYEE BY THE MERE FACT
THAT THERE IS A MECHANISM AVAILABLE TO HIM WHICH WILL CONSIDER
HIS /HER GRIEVANCE IN A DISPASSIONATE & DETACHED MANNER & THAT
HIS OPINT OF VIEW WILL BE HEARD & GIVEN DUE CONSIDERATION. BUILT

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INTO THIS ARE SAFEGUARDS AGAINST VICTIMIZATION IF, FOR INSTANCE,
THE GRIEVANCE CONCERNS A SUPERIOR’S ACTION.

# THE PRIMARY VALUE OF A GRIEVANCE PROCEDURE IS THAT IT CAN

ASSIST IN MINIMIZING DISCONTENT & DISSATISFACTION THAT MAY HAVE
ADVERSE EFFECTS UPON COOPERATION & PRODUCTIVITY. THE PROCEDURE
ALSO HAS VALUE IN THAT IT SERVES AS A CHECK ON ARBITRARY
MANAGEMENT ACTION. BEING AWARE OF THE RIGHT OF EMPLOYEE
APPEAL SHOULD HELP SUPERVISORS TO AVOID THE TENDENCY TOWARD
CORRUPTION & ARBITRARINESS THAT POWER & AUTHORITY OFTEN BRING.

# THE DETAILS OF A GRIEVANCE MACHINERY VARY WITH THE ORG. IT

MAY HAVE AS FEW AS TWO STEPS OR AS MANY AS TEN STEPS,
DEPENDING PRIMARILY UPON THE SIZE OF THE ORG. IT MUST BE
CLARIFIED HERE THAT A LABOUR UNION IS NOT ESSENTIAL TO THE
ESTABLISHMENT & OPERATION OF A GRIEVANCE PROCEDURE.

# THE POLICY & GRIEVANCE PRICEDURE IS REQUIRED TO BE WRITTEN

BY HR MANAGER. AN EXAMPLE OF GRIEVANCE POLICY IS GIVEN BELOW :-

POLICY : GRIEVANCES

# IT IS THE POLICY OF THE COY THAT EMPLOYEES SHOULD :-

1. BE GIVEN A FAIR HEARING BY THEIR IMMEDIATE SUPERVISOR OR
MANAGER CONCERNING ANY GRIEVANCES THEY MAY WISH TO
RAISE.
2. HAVE THE RIGHT TO APPEAL TO A MORE Sr MANAGER AGAINST
A DECISION MADE BY THEIR IMMEDIATE SUPERVISOR OR
MANAGER. AND
3. HAVE THE RIGHT TO BE ACCOMPANIED BY A FELLOW EMPLOYEE
OF THEIR OWN CHOICE, WHEN RAISING A GRIEVANCE OR
APPEALING AGAINST A DECISION.

PROCEDURE : GRIEVANCES

# THE AIM OF THE PROCEDURE IS TO SETTLE THE GRIEVANCE AS

NEARLY AS POSSIBLE TO ITS POINT OF ORIGIN & WITHIN
REASONABLE TIME.

# THE MAIN STAGES THROUGH WHICH A GRIEVANCE MAY BE

RAISED ARE AS FOLLOWS :-
1. THE EMPLOYEE ( GRIEVED ) RAISES THE MATTER WITH HIS OR
HER IMMEDIATE TEAM LEADER OR MANAGER & MAY BE
ACCOMPANIED BY A FELLOW EMPLOYEE OF HIS OR HER OWN
CHOICE. ( HENCE THE IMPORTANCE OF AN APPOINTMENT LETTER,
THROUGH WHICH THE CHANNEL OF REPORTING OR SPAN OF
CONTROL IS DEFINED ). THIS SHOULD BE DONE IMMEDIATELY.
2. IF THE EMPLOYEE IS NOT SATISFIED WITH THE DECISION, THE
EMPLOYEE REQUESTS A MEETING WITH A MEMBER OF
MANAGEMENT WHO IS MORE Sr THAN THE TEAM LEADER OR
MANAGER WHO INITIALLY HEARD THE GRIEVANCE. THIS MEETING

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TAKES PLACE WITHIN FIVE WORKING DAYS OF THE REQUEST & IS
ATTENDED BY THE MANAGER, THE MANAGER RESPONSIBLE FOR
PERSONNEL, THE EMPLOYEE APPEALING AGAINST THE DECISION &
IF DESIRED HIS OR HER REPRESENTATIVE. THE MANAGER
RESPONSIBLE FOR PERSONNEL, RECORDS THE RESULT OF THE
MEETING IN WRITING & ISSUES COPIES TO ALL CONCERNED.
3.IF THE EMPLOYEE IS STILL NOT SATISFIED WITH THE DECISION,
HE OR SHE MAY APPEAL TO THE APPROPRIATE DIRECTOR. THE
MEETING TO HEAR THIS APPEAL IS HELD WITHIN FIVE WORKING
DAYS OF THE REQUEST & IS ATTENDED BY THE DIRECTOR, THE
MANAGER RESPONSIBLE FOR PERSONNEL, THE EMPLOYEE MAKING
THE APPEAL & IF DESIRED, HIS OR HER REPRESENTATIVE. THE
MANAGER RESPONSIBLE FOR PERSONNEL, RECORDS THE RESULTS
OF THIS MEETING IN WRITING & ISSUES COPIES TO ALL
CONCERNED.
( PLEASE NOTE HERE THAT TIME FRAME MUST BE DEFINED IN THE
PROCEDURE, WHICH VARIES FROM ORG TO ORG. THE GRIEVANCES
MUST BE RESOLVED IMMEDIATELY OR AT THE EARLIEST ----THIS
ASPECT IS REQUIRED TO BE DEVELOPED BY HR MANAGERS )

# A GRIEVANCE PROCEDURE IS A FORMAL PROCESS WHICH IS

PRELIMINARY TO AN ARBITRATION, WHICH ENABLES THE PARTIES
INVOLVED TO ATTEMPT TO RESOLVE THEIR DIFFERENCES IN A PEACEFUL,
ORDERLY & EXPEDITIOUS MANNER. IT ENABLES THE COY & THE TRADE
UNION TO INVESTIGATE & DISCUSS THE PROBLEM AT ISSUE WITHOUT IN
ANY WAY INTERRUPTING THE PEACEFUL & ORDERLY CONDUCT OF
BUSINESS. WHEN THE GRIEVANCE REDRESSAL MACHINERY WORKS
EFFECTIVELY, IT SATISFACTORILY RESOLVES MOST OF THE DISPUTES
BETWEEN LABOUR & MANAGEMENT.

# AN OPEN-DOOR POLICY, WHEREIN A GRIEVED EMPLOYEE CAN DIRECTLY

APPROACH THE HEAD OF THE FIRM & GENERALLY APPLICABLE FOR SMALL
SCALE COYS. FOR BIGGER COYS A STEP-LADDER TYPE PROCEDURE IS
GENERALLY FOLLOWED.

# GENERALLY THERE ARE THREE TYPES OF GRIEVANCE PROCEDURES---

THREE- STEP GRIEVANCE PROCEDURE, FOUR- STEP & FIVE-STEP.

THREE-STEP GRIEVANCE PROCEDURE

Ste Labour Representative Management Representative
p
1. Shop steward & aggrieved Foreman
employee.
2. Shop Committee General Manager
3. Arbitration by an impartial
third party

FOUR-STEP GRIEVANCE PROCEDURE

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Step Labour Representative Management Representative
1. Steward & aggrieved employee. Foreman.
2. Shop Committee Personnel Manager
3. Local union ofrs President
4. Arbitration by an impartial third
party

FIVE-STEP GRIEVANCE PROCEDURE

Step Labour Representative Management Representative

1. Union steward or employee Employee’s immediate supervisor.
2. Chief steward or business Superintendent or IR Offr.
agent
3. Coy grievance committee. IR Director or Plant Manager
4. Regional or District Top Corporate Management
Representatives of union
5. Arbitration by an impartial
third party

# BASIC ELEMENTS OF A GRIEVANCE PROCEDURE--- THESE COULD

BE :-
1. THE EXISTANCE OF A SOUND CHANNEL THROUGH WHICH A
GRIEVANCE MAY PASS FOR REDRESSAL IF THE PREVIOUS STAGE OR
CHANNEL HAS BEEN FOUND TO BE INADEQUATE, UNSATISFACTORY
OR UNACCEPTABLE.
2. THE PROCEDURE SHOULD BE SIMPLE, DEFINITE & PROMPT, FOR ANY
COMPLEXITY OR VAGUENESS OR DELAY MAY LEAD TO AN
AGGRAVATION OF THE DISSATISFACTION OF THE AGGRIEVED
EMPLOYEE. AND
3. THE STEPS IN HANDLING A GRIEVANCE SHOULD BE CLEARLY
DEFINED.
4. THESE SHOULD COMPRISE OF :-
( a ) RECEIVING & DEFINING THE NATURE OF THE GRIEVANCE.
( b ) GETTING AT THE RELEVENT FACTS, ABOUT THE GRIEVANCE.
( c ) ANALYSING THE FACTS, AFTER TAKING INTO CONSIDERATION
THE
ECONOMIC, SOCIAL, PSYCHOLOGICAL & LEGAL ISSUES INVOLVED
IN
THEM.
( d ) TAKING AN APPROPRIATE DECISION AFTER A CAREFUL
CONSIDERATION
OF ALL THE FACTS. AND

5. WHATEVER THE DECISION, IT SHOULD BE FOLLOWED UP IN ORDER

THAT
THE REACTION TO THE DECISION MAY BE KNOWN & IN ORDER TO
DETERMINE WHETHER THE ISSUE HAS BEEN CLOSED OR NOT.

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# IT IS RELEVENT TO NOTE THAT THE MANAGEMENT IS OFTEN GUILTY
OF ERRORS IN ITS HANDLING OF THE GRIEVANCE REDRESSAL
PROCEDURE. THESE ERRORS COULD BE :-
1. STOPPING TOO SOON THE SEARCH FOR FACTS.
2. EXPRESSING THE OPINION OF THE MANAGEMENT BEFORE ALL THE
PERTINENT FACTS HAVE BEEN UNCOVERED & EVALUATED.
3. FAILING TO MAINTAIN PROPER RECORDS.
4. RESORTING TO AN EXECUTIVE FIAT ( MEANS AN OFFICIAL ORDER OR
AUTHORISATION ) INSTEAD OF DISPASSIONATELY DISCUSSING THE
FACTS OF THE GRIEVANCE OF THE EMPLOYEE.
5. COMMUNICATING THE DECISION TO THE GRIEVANT IN AN IMPROPER
WAY.
6. TAKING A WRONG OR HASTY DECISION, WHICH THE FACTS OR
CIRCUMSTANCES OF THE CASE DO NOT JUSTIFY.

SUCCESSFUL GRIEVANCE HANDLING PROCEDURES

# AN ANLYSIS OF SUCCESSFUL GRIEVANCE HANDLING PROCEDURES

INDICATES THAT THE FOLLOWING FACTORS ARE INVOLVED IN THEM :-
1. HELPFUL ATTITUDE & SUPPORT OF THE MANAGEMENT.
2. BELIEF ON THE PART OF ALL CONCERNED IN THE UTILITY OF THE
PROCEDURE.
3. INTRODUCTION OF THE PROCEDURE WITH THE CONCURRENCE OF THE
EMPLOYEES’ REPRESENTATIVE OR THEIR TRADE UNIONS.
4. SIMPLE, FAIR, EASILY UNDERSTANDABLE & QUICK HANDLING
PROCEDURE COTAINING A TIME LIMIT FOR EACH STEP.
5. DEFINING COY’S POLICIES, RULES & PRACTICES & AVAILABILITY OF
COPIES AT DIFFERENT MANAGEMENT LEVELS INVOLVED IN THE
PROCEDURE.
6. DELEGATION OF APPROPRIATE AUTHORITY SO THAT ACTION MAY BE
TAKEN AT ALL LEVELS OF THE MANAGEMENT.
7. THE FUNCTIONING OF THE HR DEPT IN AN ADVISORY CAPACITY AT
AL THE LEVELS OF THE MANAGEMENT.
8. A FACT-ORIENTED, INSTEAD OF AN EMPLOYEE-ORIENTED, DISCUSSION
OF GRIEVANCES.
9. RESPECT FOR THE DECISION TAKEN AT EACH LEVEL OF THE
MANAGEMENT.
10. ADEQUATE PUBLICITY GIVEN TO THE PROCEDURE & ITS
ACHIEVEMENTS IN THE COY. AND
11. A PERIODIC REVIEW OF THE WORKING OF THE PROCEDURE.

CERTAIN PROCEDURAL MATTERS IN DEALING WITH GRIEVANCE

REDRESSAL

# THESE COULD BE :-
1. WHEN A GRIEVANCE ARISES OUT OF AN ORDER ISSUED BY THE
MANAGEMENT, THE ORDER ITSELF MUST BE COMPLIED WITH BEFORE
THE PROCEDURE IS ACTIVATED.
2. THE RIGHT OF THE WORKERS’ REPRESENTATIVE ON THE GRIEVANCE
COMMITTEE TO SEE A DOCUMENT & THE RIGHT OF THE
MANAGEMENT’S REPRESENTATIVE TO REFUSE TO SHOW A DOCUMENT

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 Industrial Relations – Rajput Sir
OF A COFIDENTIAL NATURE. CONFIDENTIAL; DOCUMENTS SHALL NOT
BE USED AGAINST HIM.
3. THERE IS A LIMIT OF 72 HOURS WITHIN WHICH AN APPEAL CAN BE
TAKEN FROM ONE STEP TO ANOTHER.
4. PAYMENT FOR TIME THAT HAS BEEN SPENT ON THE REDRESSAL OF
GRIEVANCE. AND
5. IN THE EVENT OF A GRIEVANCE ARISING OUT OF DISCHARGE OR
DISMISSAL, THE WORKER HAS THE RIGHT TO APPEAL EITHER TO THE
DISMISSING AUTHORITY OR TO A Sr BODY, SPECIFIED FOR THE
PURPOSE BY THE MANAGEMANT, WITHIN A WEEK FROM THE DATE
OF DISMISSAL OR DISCHARGE.
DISCIVERY OF GRIEVANCES

# KNOWLEDGE ABOUT GRIEVANCE IS IMPORTANT IN HANDLING THEM.

ONE CAN COME TO KNOW ABOUT GRIEVANCES THROUGH GOSSIP &
GRAPEVINE OR THROUGH UNIONS. IT IS ALWAYS PREFERABLE TO HAVE
FIRST HAND KNOWLEDGE BASED ON OBSERVATION & THROUGH DIRECT
COMN FROM THE EMPLOYEE CONCERNED. SOME OF THE IMPORTANT
WAYS OF DISCOVERING GRIEVANCES ARE GIVEN BELOW :-
1. DIRECT OBSERVATION---AN EFFECTIVE MANAGER MUST KNOW HOW
HIS SUBORDINATES BEHAVE IN ORDINARY CIRCUMSTANCES., THAT IS
KNOWING THE PULSE OF YOUR SPAN OF MANAGEMENT. WHEN
SIGNIFICANT CHANGES IN THAT BEHAVIOUR OCCUR, IT IS SURE TO
AFFECT PERFORMANCE.
2. GRIEVANCE PROCEDURE----THIS PROVIDES AN OPPORTUNITY TO GIVE
VENT TO ONES GRIEVANCES. THE DILEMMA MOST MANAGERS FACE
IS WHETHER & HOW FAR THEY SHOULD ENCOURAGE OR
DISCOURAGE GRIEVANCES. IF MANAGEMENT DOES NOT INDUCE
EMPLOYEES TO EXPRESS THEIR GRIEVANCES, UNIONS WILL DO SO
& THEY ARE LIKELY TO BLOW THE SITUATION. DISCOURAGING
EMPLOYEES FROM EXPRESSING GRIEVANCES MEANS IGNORING
GRIEVANCES. WHEN THEY SIMMER & BURST, MANAGEMENTS FIND IT
BEYOND THEIR CAPACITY TO DEAL WITH THEM ADEQUATELY. THIS
IS THE START OF A STRKE.
3. GRIPE BOXES-----THE GRIPE BOX IS A FACILITY TO FILE ANONYMOUS
COMPLAINTS ABOUT THE VARIOUS CAUSES OF DISCONTENT &
DISSATISFACTION IN THE ORG. IT IS DIFFERENT FROM SUGGESTION
SCHEME. IN CASE OF GRIPE BOX ANONYMITY IS ASSURED & THERE
IS NO REWARD OR PUNISHMENT. THE LIMITED PURPOSE IS TO LET
THE MANAGEMENT KNOW WHAT THE EMPLOYEES FEEL WITHOUT
FEAR OF VICTIMISATION.
4. OPEN-DOOR POLICY---MOST ORGS PREACH OPEN-DOOR POLICY BUT
DO NOT PRACTICE IT.
5. EXIT INTERVIEW-----IT REQUIRES CERTAIN SKILLS TO GET TO KNOW
THE REAL REASONS FOR LEAVING THE JOB. EXIT INTERVIEWS, IF
CONDUCTED EFFECTIVELY, CAN PROVIDE VITAL INFO TO OMPROVE
PERSONNEL POLICIES & IDETIFY THE WEAKNESSES & STRENGTHS OF
THE ORG. SOME ORGS MAIL AN EXIT QUESTIONNAIRE THREE
MONTS AFTER AN EMPLOYEE LEAVES SO THAT HE NEED NOT FEAR
ABOUT A POOR REFERENCE & GIVE THE TRUTH, WITHOUT FEAR OR
FAVOUR.

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 Industrial Relations – Rajput Sir
6. GRAPEVINE----IT IS THE CIRCULATION OF RUMOURS & UNOFFICIAL
INFO.

CERTAIN DO’S & DON’TS IN HANDLING GRIEVANCES

# TO BE GIVEN OUT AS HAND-OUT

SUMMARY

1. INTRODUCTION.
2. WHAT IS GRIEVANCES & ANALYSIS OF DEFINITIONS.
3. NATURE OF GRIEVANCES.
4. TYPES OF GRIEVANCES.
5. MACHINERY FOR REDRESSAL OF GRIEVANCES.
6. POLICY & PROCEDURE.
7. BASIC ELEMENTS OF GRIEVANCE PROCEDURE.
8. ERRORS BY MANAGEMENT.
9. SUCCESSFUL GRIEVANCE HANDLING PROCEDURE.
10. CERTAIN PROCEDURAL MATTERS IN DEALING WITH GRIEVANCES. AND
11. DISCOVERY OF GRIEVANCES.
12. CERTAIN DO’S & DON’TS.

THE COLLECTIVE BARGAINING

1. THE CONCEPT.
2. PROCESS.
3. TYPES.
4. REQUIREMENTS OF COLLECTIVE BARGAINING.
5. RECENT TRENDS & ROLE.
6. CASE STUDY OF BHEL, BANGLORE.

INTRODUCTION

# INITIALLY, INDIVIDUAL EMPLOYEES NEGOTIATED DIRECTLY WITH A

POTENTIAL EMPLOYER ON THE WAGES THEY WOULD RECEIVE FOR THE
SERVICES PROVIDED.
WITH THE GROWTH OF POPULATION & THE PACE OF INDUSTRIALISATION,
LARGE NUMBER OF PEOPLE ENTERED THE LABOUR MARKET. THIS
BROUGHT ABOUT SEVERAL CHANGES.

# INDIVIDUAL EMPLOYERS & EMPLOYEES DID NOT FIND IT CONVENIENT

ANY MORE TO NEGOTIATE INDIVIDUALLY, OWING TO THE PRESSURE OF
TIME, VARIANCES IN REWARDS FOR THE SERVICES RENDERED & THE
ABILITY TO PUSH FOR MORE AS A GP ON THE EMPLOYEES’ PART.

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EMPLOYERS ALSO FOUND IT MORE CONVIENT TO DEAL WITH A GP
RATHER THAN INDIVIDUALS.

# THIS LED TO THE CONCEPT OF “COLLECTIVE BARGAINING”. THIS

CONCEPT WAS FIRST IDENTIFIED BY SIDNEY & BEATRICE WEBB IN
BRITAIN & ALSO BY GOMPERS IN THE USA.

WHAT IS COLLECTIVE BARGAINING ?

# IT IS A PROCESS THROUGH WHICH REPRESENTATIVES OF MANAGEMENT

& THE UNION MEET TO NEGOTIATE A LABOUR AGREEMENT. ( NEGOTIATION
IS A PROCESS THROUGH WHICH TWO OR MORE PARTIES MOVE FROM
THEIR INITIALLY DIVERGENT POSITIONS TO A POINT WHERE AGREEMENT
IS REACHED.)

# THE INDUSTRIAL RELATIONS SYSTEM IS REGULATED BY THE PROCESS

OF COLLECTIVE BARGAINING WHICH IS A SOCIAL PROCESS THAT
CONTINUALLY TURNS DISAGREEMENTS INTO AGREEMENTS IN AN ORDERLY
FASHION.

# COLLECTIVE BARGAINING ( CB ) AIMS TO ESTABLISH BY NEGOTIATION &

DISCUSSION AGREED RULES & DECISIONS ON THE MATTERS OF MUTUAL
CONCERN TO EMPLOYERS & UNIONS AS WELL AS METHODS OF
REGULATING THE CONDITIONS GOVERNING EMPLOYMENT.

DEFINITIONS OF COLLECTIVE BARGAINING

# ENCYCLOPAEDIA OF SOCIAL SCIENCES DEFINES AS---“ A PROCESS OF

DISCUSSION & NEGOTIATION BETWEEN TWO PARTIES; ONE OR BOTH OF
WHOM IS A GP OF PERSONS ACTING IN CONCERT. THE RESULTING
BARGAIN IS AN UNDERSTANDING AS TO THE TERMS OR CONDITIONS
UNDER WHICH A CONTINUING SERVICE IS TO BE PERFORMED”

# OXFORD DICTIONARY OF HRM DEFINES AS, “THE PROCESS THROUGH

WHICH TRADE UNIONS & EMPLOYERS NEGOTIATE COLLECTIVE
AGREEMENTS THAT SET THE RATES OF PAY & TERMS & CONDITIONS OF
EMPLOYMENT OF WORKERS. IT IS ALSO A PROCESS OF JOINT REGULATION
& CAN BE DIFFERENTIATED FROM UNILATERAL REGULATION OF
EMPLOYMENT BY EMPLOYERS OR UNIONS & LEGAL REGULATION THROUGH
THE STATE”

# THE INTERNATIONAL LABOUR ORGANISATION ( ILO ) DEFINE CB AS, -----

“ NEGOTIATION ABOUT WORKING CONDITIONS & TERMS OF
EMPLOYMENT BETWEEN AN EMPLOYER, A GP OF EMPLOYEES OR ONE OR
MORE EMPLOYERS’ ORGANIZATIONS, ON THE ONE HAND & ONE OR MORE
REPRESENTATIVE WORKERS’ ORGANIZATIONS ON THE OTHER WITH A
VIEW TO REACHING AGREEMENT.”

# WHAT DO WE LEARN FROM THESE DEFINITIONS ?-----THESE DEFINITIONS

LEAD US TO CERTAIN CHARACTERISTICS & SALIENT FEATURES OF CB
WHICH COULD BE :-

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1. THE PROCESS IS “ COLLECTIVE” BECAUSE ISSUES RELATING TO TERMS
& CONDITIONS OF EMPLOYMENT ARE SOLVED BY REPRESENTATIVES
OF EMPLOYEES & EMPLOYERS IN GPS RATHER THAN AS INDIVIDUALS.
2. IT IS ESSENTIALLY A GP ACTIVITY RATHER THAN AN INDIVIDUAL OR
UNILATERALK ACTION.
3. FLEXIBLE ATTITUDE OF BOTH THE MANAGEMENT & THE UNION IS
ENCOURAGED.
4. IT IS A BILATERAL ( INVOLVING TWO PARTIES ) PROCESS.
5. IT IS AN ONGOING & DYNAMIC PROCESS.
6. IT IS COMPLEX IN NATURE BECAUSE OF THE PROCESS & TECHNIQUES
ADAPTED IN RESOLVING THE ISSUE.
7. IT PERFORMS LEGISLATIVE, JUDICIAL & EXECUTIVE FUNCTIONS.
( LEGISLATIVE MEANS RELATING TO LAWS).
8. IT IS BOTH AN ART & SCIENCE.
9. IT IS A PROCESS IN THE SENSE THAT IT CONSISTS OF A NUMBER OF
STEPS. THE STARTING POINT IS THE PRESENTATION OF THE CHARTER
OF DEMANDS & THE LAST STAGE IS THE REACHING OF AN
AGREEMENT, OR A CONTRACT WHICH WOULD SERVE AS THE BASIC
LAW GOVERNING LABOUR-MANAGEMENT RELATIONS OVER A PERIOD
OF TIME IN AN ORG.
10. IT IS DISTINCTIVE IN NATURE AS THE RULES ARE MADE BY THE
UNIONS OF WORKERS, EMPLOYERS & ORGS.
11. IT IS GOVERNED BY THE CONVENTIONS & CUSTOMS THAT PREVAIL
AT THE COY LEVEL.
12. IT IS NOT JUST AN ECONOMIC PROCESS BUT MORE A SOCIO-
ECONOMIC ONE. THE VALUES, ASPIRATIONS & EXPECTATIONS ALSO
PLAY A SIGNIFICANT ROLE.

PREREQUISITES FOR SUCCESSFUL CB

# ADAPTING A SYSTEM IN THE ORG DOES NOT GUARANTEE SUCCESS.

THE IMPLEMENTATION OF THE POLICIES IN SPIRIT & ACTION DETERMINES
THE SUCCESS & EFFECTIVENESS. THIS EFFECTIVENESS OF COLLECTIVE
BARGAINING DEPENDS ON CERTAIN FUNDAMENTAL PREREQUISITES, WHICH
COULD BE :-
1. CONGENIAL ENVIRONMENT---A SYSTEM BECOMES EFFECTIVE ONLY
WHEN IT HAS BEEN PROPERLY ACCEPTED & IMPLEMENTED. WORK
ENVIRONMENT IS VERY IMPORTANT FOR THE SUCCESS OF CB. PEOPLE
INVOLVED IN THIS PROCESS SHOULD HAVE A STRONG BELIEF OF
DEMOCRACY & MUTUAL SOLUTION TO THE PROBLEM. MUTUAL TRUST,
RESPECT & UNDERSTANDING BETWEEN THE EMPLOYER & THE
EMPLOYEE DEVELOPS A CONGENIAL ENVIRONMENT TO DEBATE,
NEGOTIATE & TAKE A DECISION.
2. SOCIA-POLITICAL SITUATION---IT ESSENTIAL TO UNDERSTAND THE
PREVAILING SOCIO-POLITICAL SITUATION SURROUNDING THE ORG &
THE STRATEGIC DYNAMICS OF THE NEGOTIATION FOR BOTH THE
MANAGEMENT & THE UNION TO MAKE THE PROCESS EFFECTIVE.
3. PSYCHOLOGICAL CONSIDERATIONS-----IT IS IMPORTANT TO
UNDERSTAND THE HUMAN SIDE OF THE DECISIONS RATHER THAN
RULES & REGULATIONS. THIS WILL DEVELOP GOODWILL, MUTUAL
COMMITMENT & COOPERATION, WHICH IS ESSENTIAL OBJECTIVE OF IR.

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4. MATURITY OF THE PEOPLE-----THE KNOWLEDGE OF THE TECHNIQUES
OF COLLECTIVE BARGAINING IS VERY MUCH IMPORTANT. THE
EDUCATION, EXPOSURE & BELIEF IN THE SYSTEM ARE SOME OF THE
FACTORS, WHICH INFLUENCE THE MATURITY OF THE PERSON.
5. NEGOTIATING TEAM---THE TEAM SHOULD BE SO SELECTED THAT
DECISIONS ARE ARRIVED AT WITH NO OR MINIMUM REFERRALS TO
THE TOP MANAGEMENT. THE TEAM SHOULD HAVE A MIXED
COMPOSITION.
6. RECOGNISE THE UNION-----IT IS NECESSARY FOR THE MANAGEMENT
TO RECOGNISE THE UNION & TO BARGAIN IN MORE GOOD FAITH.
STRONG UNIONS & PROGRESSIVE MANAGEMENTS CAN HELP CREATE
AN ATMOSPHERE OF MUTUAL CONFIDENCE.
7. APPROACH----OPEN MINDS, TO LISTEN & APPRECIATE THE OTHERS’
CONCERN & POINT OF VIEW & TO HAVE SOME FLEXIBILITY IN
MAKING ADJUSTMENTS TO THE DEMANDS MADE.
8. HOMEWORK---THE DEMANDS PRESENTED MUST BE STUDIED IN
ADVANCE TO GATHER DATA ON WAGES & WELFARE BENEFITS; THAT
IS BENCH-MARKING.
9. IDENTIFICATION—BOTH THE MANAGEMENT & THE UNIONS SHOULD BE
ABLE TO IDENTIFY GRIEVANCES, SAFETY & HYGIENE PROBLEMS ON
ROUTINE BASIS & TAKE APPROPRIATE REMEDIAL STEPS.
10. INTERNAL UNION DEMOCRACY----TRADE UNIONS SHOULD ENCOURAGE
INTERNAL UNION DEMOCRACY & HAVE PERIODIC CONSULTATIONS
WITH THE RANK & FILE MEMBERS.
11. PRODUCT / SERVICES---TRADE UNIONS SHOULD EQUALLY BE
CONCERNED WITH BOTH QUANTITY OF WORK OUTPUT AS AGREED
UPON & QUALITY OF WORK, BOTH LEADING TO A CONSISTENT
CONCERN FOR THE VIABILITY OF THE COY & ITS PRODUCT /
SERVICES.
12. PERIODIC DISCUSSIONS---THESE MUST BE BETWEEN MANAGEMENT &
THE UNION TO INTERPRET THE PROVISIONS OF THE CONTRACT &
CLARIFY DOUBTS. THIS IS LIKELY TO HELP IN AVOIDING STRIKES /
LOCKOUTS.

COLLECTIVE BARGAINING PROCESS

# CB IS A PROCESS WHICH CONSISTS OF FOLLOWING STAGES :-

1. PRESENTATION OF PROPOSALS BY UNIONS TO THE MANAGEMENT.

2. HOME-WORK ON THESE PROPOSALS BY BOTH PARTIES.
3. NEGOTIATION OF PROPOSALS LEADING TO AGREEMENT.
4. IMPLEMENTATION OF AGREEMENT. AND
5. REVIEW & RENEWAL OF AGREEMENT.

# PRESENTATION OF PROPOSALS----MANY ORGS TERM IT AS DEMANDS BY

UNIONS. THE CB PROCESS USUALLY STARTS WITH PROPOSAL / DEMANDS
BEING PRESENTED TO THE MANAGEMENT BY UNIONS. A FRESH PROPOSAL
IS SUBMITTED UPON THE EXPIRY OF THE EARLIER AGREEMENT. BUT IT
WOULD BE PREFERABLE TO GET THESE FRESH PROPOSALS WELL BEFORE
THE EXPIERY OF EXISTING AGREEMENT SO THAT THE NEW AGREEMENT

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WOULD BE ANY DELAYS. TILL THE FRESH AGREEMENT IS SIGNED, THE
PROVISIONS OF THE EXISTING AGREEMENT WOULD CONTINUE.

# THESE PROPOSALS ARE RECEIVED BY IR DEPT WHERE AVAILABLE OR

BY HR DEPT ( PM )

# HOME-WORK---THE PROPOSALS ARE STUDIED TO EVALUATE THE

EFFECTS, BOTH FINANCIAL & NON-FINANCIAL. THIS HOME-WORK IS
GENERALLY DONE BY IR DEPT / HR DEPT, FINANCE / ACCOUNT DEPT &
OPERATIONS DEPT. THE OBJECTIVE OF THIS HOME-WORK IS TO PREPARE
FOR NEGOTITIONS.

# NEGOTIATION OF PROPOSALS----AFTER THE HOME-WORK, BOTH PARTIES

START NEGOTIATING & TRY TO ARRIVE AT AN AGREEMENT.
( NEGOTIATION IS A PROCESS THROUGH WHICH TWO OR MORE PARTIES
MOVE FROM THEIR INITIALLY DIVERGENT POSITIONS TO A POINT WHERE
AGREEMENT IS REACHED.) FOR THIS, BOTH PARTIES HAVE TO MAKE
NECESSARY PREPARATIONS FOR JUSTIFYING RESPECTIVE STANDS.
NEGOTIATIONS REFLECT A SENSE OF COMPROMISE IN A GIVE & TAKE
SPIRIT & ALSO MANIPULATION POWER EQUILIBRIUM BETWEEN PARTIES.
COMPLETION OF NEGOTIATIONS LEAD TO AN AGREEMENT WHICH WHEN
SIGNED BY BOTH PARTIES BECOMES A CONTRACT BETWEEN THE UNION
& THE MANAGEMENT FOR A DEFINED PERIOD OF TIME.

# IMPLEMENTATION OF AGREEMENT----THE CONTENTS OF THE AGREEMENT

ARE COMMUNICATED TO ALL FOR EXECUTION. THIS IS CLOSELY
OBSERVED BY IR / HR DEPT TO ENSURE THAT NO DISPUTES OR
PROBLEMS ARISE.

# REVIEW & RENEWAL---NORMALLY THESE AGREEMENTS ARE VALID FOR

A SPECIFIED PERIOD; GENERALLY FOR THREE YEARS. DURING THIS TIME,
BOTH PARTIES MUST REVIEW THE IMPLEMENTATION & SHOULD THERE BE
ANY REQUIREMENT FOR REVISION / REVIEW MUST BE DONE. THUS THE CB
IS A CONTINUOUS PROCESS.

# THE END OBJECTIVE OF CB SHOULD BE THAT BOTH PARTIES TRY TO

ACHIEVE “I AM OK” SITUATION WITH A VIEW TO ACHIEVE MAX
PRODUCTION & IMPROVE QUALITY OF LIFE.

STEPS TO IMPROVE THE PROCESS OF CB

1. BEGIN THE PROCESS OF NEGOTIATIONS WITH PROPOSALS & NOT

DEMANDS.
2. AVOID TAKING POSITIONS FOR OR AGAINST CERTAIN PROPOSALS IN
ADVANCE OF NEGOTIATIONS.
3. AVOID TAKING STRIKE VOTES BEFORE THE PROCESS OF
NEGOTIATIONS BEGIN.
4. GIVE NEGOTIATORS PROPER AUTHORITY TO BARGAIN.
5. AVOID UNNECESSARY DELAYS IN BEGINNING NEGOTIATIONS &
CONDUCTING THEM.
6. INSISTS ON OFFERING FACTS & ARGUMENTS.

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7. MAKE PLENTY OF PROPOSALS TO ENHANCE THE OPPORTUNITIES TO
COME TO A SOLUTION.
8. BE PREPARED TO COMPROMISE.
9. ACCEPT TO GET RESULTS GRADUALLY.
10. PRESERVE GOOD MANNERS & KEEP DISCUSSION FOCUSED ON
RELEVENT ISSUES. AND
11. BE PREPARED TO STAND ALONG ANY HARD STRIKE OR LOCK-
OUT---MEANS CONTINGENCY PLANNING SHOULD BE IN THOUGHT
OF.

TACTICS USED IN COLLECTIVE BARGAINING

1. ANTICIPATE --- THE PROPOSALS / DEMANDS, THE INTENTION OF THE

DEMANDS, & ALSO THE DIRECTION IN WHICH THESE WILL BE
PRESENTED OR PLACED.
2. TEAM SPIRIT--- SHOULD BE MAINTAINED THROUGHOUT THE
NEGOTIATIONS. IT REQUIRES SYNCHRONIZATION OF THE TEAM
MEMBERS’ VIEWS DURING THE DISCUSSION. A REHEARSAL
BEFOREHAND MAY CLEAR THE ROLE & RESPONSIBILITY OF EACH OF
THE MEMBER.
3. SEPARATE RESPONSIBILITIES FROM PROBLEMS---THIS WILL PROVIDE A
PLATFORM TO GIVE IMPORTANCE ON ISSUES & NOT THE PEOPLE
BEHIND THE ISSUES.
4. COUNTER PROPOSAL---THE MANAGEMENT SHOULD PRESENT A
COUNTER PROPOSAL AGAINST THE DEMAND RAISED BY THE UNION.
e. g. IF A DEMAND IS ON WAGE HIKE, THE MANAGEMENT SHOULD
RAISE THE ISSUE OF PRODUCTIVITY, WORKLOAD etc.
5. EMOTIONAL MATURITY---- MUST BE MAINTAINED BY BOTH MEMBERS
OF UNION T THE REPRESENTATIVES OF MANAGEMENT. PATIENT
LISTENING & MUTUAL UNDERSTANDING WILL FACILITATE THE
PROCESS OF DECISION-MAKING.
6. PROPER MANAGEMENT REPRESENTATIVES -----PERSONS WITH PROPER
AUTHORITY TO COMMIT & STANDBY SHOULD BE DEPUTED BY THE
MANAGEMENT AT THE NEGOTIATION TABLE. PRESENCE OF A Jr RANK
PERSON WILL SEND A WRONG SIGNAL TO THE UNION REGARDING
THE SERIOUSNESS OF THE MANAGEMENT.
7. PHASE OUT THE ISSUES--- IT IS DESIRABLE TO TAKE UP THE ISSUES
WHICH DO NOT COST OR COST LESS TO THE MANAGEMENT
INITIALLY & THEN SWITCH OVER TO HIGH COST INVOLVEMENT
ITEMS. THIS WILL CREATE A GOOD ENVIRONMENT FOR
NEGOTIATIONS.
8. SAFETY VALVE-----EVEN IF THE NEGOTIATION IS DIFFICULT, THERE
SHOULD BE SAFETY VALVE WHICH SHOULD NOT BE CROSSED BY
THE NEGOTIATING TEAMS EXCEPT IN EXCEPTIONAL CIRCUMSTANCES.
9. BE GOOD LISTENER----IT IS NOT DESIRABLE TO TALK MUCH
WITHOUT ALLOWING THE OTHER PARTY TO SPEAK. IT GIVES THE
OTHER PARTY YOUR POSITION BUT LEAVES YOU WITH LITTLE
KNOWLEDGE OF HIS POSITION & POTENTIAL TRADE-OFF.
10. DO NOT GIVE-UP---THE PARTIES INVOLVED IN THE NEGOTIATIONS
SHOULD NOT GIVE UP TOO SOON OR BACK OFF TOO QUICKLY.

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11. JUDGE THE PARTIES---IT IS NOT DESIRABLE TO UNDERESTIMATE OR
OVERESTIMATE THE OTHER PARTY.
12. GOOD END—THE RESULT OF A COLLECTIVE BARGAINING STRATEGY
SHOULD END IN A GOOD AGREEMENT OR SETTLEMENT.

TYPES OR FORMS OF CB

# THERE ARE TWO BASIC FORMS OR TYPES AS

IDENTIFIED BY CHAMBERLAIN & KUHN ( 1965 ) WHICH
ARE :-
1. CONJUNCTIVE BARGAINING-----WHICH ARISES FROM
THE ABSOLUTE REQUIREMENT THAT SOME
AGREEMENT BE REACHED SO THAT THE
OPERATIONS ON WHICH THESE ARE DEPENDENT,
MAY CONTINUE & RESULT IN A WORKING
RELATIONSHIP.
2. COOPERATIVE BARGAINING------IN WHICH IT IS
RECOGNIZED THAT EACH PARTY IS DEPENDENT ON
THE OTHER & CAN ACHIEVE ITS OBJECTIVES MORE
EFFECTIVELY IF IT WINS THE SUPPORT OF THE
OTHER.

# A SIMILAR DISTINCTION WAS MADE BY WALTON &

McKERSIE ( 1965 ) :-
1. DISTRIBUTIVE BARGAINING------WHICH IS THE
COMPLEX SYSTEM OF ACTIVITIES INSTRUMENTAL TO
THE ATTAINMENT OF ONE PARTY’S GOAL WHEN
THEY ARE IN BASIC CONFLICT WITH THOSE OF THE
OTHER PARTY.
2. INTEGRATIVE BARGAINING-----WHICH IS THE SYSTEM
OF ACTIVITIES WHICH ARE NOT IN FUNDAMENTAL
CONFLICT WITH THOSE OF THE OTHER PARTY &
WHICH THEREFORE CAN BE INTEGRATED TO SOME
DEGREE. THIS IS BASICALLY AN AREA OF COMMON
CONCERN.

TRENDS IN COLLECTIVE BARGAINING

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# CB IS A VERY IMPORTANT & MOST EFFECTIVE
INSTRUMENT IN THE HANDS OF THE WORKERS TO
BETTER THEIR CONDITIONS. THIS IMPORTANCE HAS
FOLLOWING FACTORS :-
1. IT IS BEST SUITED FOR THE CONCEPT OF
INDUSTRIAL DEMOCRACY. THE UNIONS GET AN
OPPORTUNITY TO ACQUINT THE EMPLOYER WITH
THE VIEW POINT OF UNION MEMBERS & THEIR
SPECIAL PROBLEMS.
2. IT ENSURES AN IMPROVED STATUS FOR WORKERS.
3. ENSURES LASTING INDUSTRIAL PEACE.-----CB IS NOT
A METHOD OF SETTLING DISPUTES ONLY BUT ALSO
FOR ITS PREVENTION. IT CAN DISPEL CONFLICTS.
AND
4. IT FOSTERS RESPONSIBILITY ON THE PART OF BOTH
WORKERS & EMPLOYERS.---PARTIES WHO HAVE
REACHED AN AGREEMENT HAVE RESPONSIBLE
BEHAVIOUR THAN IF IMPOSED BY THE DECISION OF
THIRD PARTY.

# BECAUSE OF SUCH OUTCOMES OF CB, NEW TRENDS

ARE COMING UP, WHICH COULD BE :-
1. WIDE COVERAGE IN THE ORGANISED SECTOR.
2. EXTENSION IN ALL BRANCHES OF INDUSTRIES.
3. LEVEL OF BARGAINING.
4. COORDINATION IN BARGAINING.
5. DIVERSITY IN BARGAINING PROCEDURES.
6. BARGAINING WITH MULTIPLE UNIONS.
7. TREND TOWARDS JOINT ACTION BY UNIONS.
8. COERCIVE BARGAINING.
9. NATURE OF TECHNIQUES.
10. SCOPE OF COLLECTIVE BARGAINING.

# WIDE COVERAGE IN THE ORGANISED SECTOR----

THERE IS GROWTH IN CB. INITIALLY MORE
AGREEMENTS WERE CONCLUDED AT THE CENTRAL
LEVEL THAN AT STATE LEVELS. CB WAS MORE IN

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PUBLIC SECTORS & NOW IT IS WIDELY FOLLOWED IN
PRIVATE SECTORS ALSO.

# EXTENSION IN ALL BRANCHES OF INDUSTRIES-----CB

NOW EXTENDS TO MOST BRANCHES OF INDUSTRIES IN
THE ORGANISED SECTORS. INITIALLY CB WAS FOUND
IN SOME OF THE TRADITIONAL INDUSTRIES LIKE
COTTON & JUTE TEXTILES. WHEREAS NOW MOST OF
THE INDUSTRIES ARE FOLLOWING CB.

# LEVEL OF BARGAINING-----UNDER THIS PATTERN OF

BARGAINING, THE MANAGEMENT NEGOTIATES ON A
NATIONAL BASIS WITH THE REPRESENTATIVES OF THE
UNIONS OF DIFFERENT UNITS UNDER THEIR CONTROL---
LIKE SAIL, BHEL, COAL etc.

# COORDINATION IN BARGAINING---PARTIES IN SEVERAL

INDUSTRIES HAVE TAKEN STEPS TO INCREASE THE
EFFEECTIVENESS OF THE CB SYSTEM. THIS HAS
INCLUDED THE ESTABLISHMENT OF COORDINATION
AGENCIES FOR PROMOTING UNITY IN APPROACHES
AMONG THE EMPLOYING INTEREST TOWARDS THE
ISSUES AT STAKE. THIS KIND OF EFFORT HAS BEEN
MADE BY THE PUBLIC ENTERPRISES IN BANGLORE
WHERE SUCH ENTERPRISES ARE CONCENTRATED. IN
THAT CENTRE A COORDINATION COMMITTEE OF THE
CHIEF EXECUTIVES OF THE ENTERPRISES HAD BEEN
FORMED TO FUNCTION AS A JOINT BODY TO DEAL
WITH ISSUES OF COMMON CONCERN SUCH AS WAGES
& SERVICE CONDITIONS. ON THE EMPLOYEES’ SIDE,
TOO, THE UNIONS HAVE SET UP A JOINT BODY TO
NEGOTIATE WITH MANAGEMENT ON THE BASIS OF
UNITED STRENGTH ( ESPRIT-de-CORPS)

# DIVERSITY IN BARGAINING PROCEDURES----AT

INDUSTRIAL LEVEL & PLANT-LEVEL VARIOUS
BARGAINING PROCEDURES ARE BEING ADOPTED.

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1. AT PLANT-LEVEL BARGAINING THE PROCEDURE
CONSISTS IN MOST CASES OF SINGLE-EMPLOYER-
SINGLE UNION & IN SOME CASES SINGLE EMPLOYER
& MULTI UNION, THROUGH A NEGOTIATING
COMMITTEE.
2. AT INDUSTRY BARGAINING-----VARIED PROCEDURES
ARE FOLLOWED. :-
( a ) IN JUTE / TEXTILE INDUSTRY, IN WEST BENGAL,
THE NEGOTIATIONS ARE CONDUCTED IN A
TRIPARTITE COMMITTEE WHICH CONSISTS OF
REPRESENTATIVES OF MILL- OWNERS & TRADE
UNION CENTRES & A NOMINEE OF THE STATE
GOVT WHO CHAIRS THE MEETING.
( b ) THE STEEL INDUSTRT----THE PROCESS OF
BARGAINING HAS BEEN INITIATED FROM OUTSIDE
BY THE GOVT OF INDIA WHO AFTER DETAILED
DISCUSSIONS WITH THE REPRESENTATIVES OF
EMPLOYERS & UNIONS SET UP A JOINT WAGE
NEGOTIATION COMMITTEE. THE COMMITTEE IS
COMPOSED OF MANAGEMENT REPRESENTATIVES OF
THE ALL STEEL PLANTS IN THE PRIVATE & PUBLIC
SECTORS & THE REPRESENTATIVES OF THE
RECOGNISED UNIONS IN THOSE PLANTS.

# THE PROCESS OF CB AT THE INDUSTRIAL LEVEL

DOES NOT REPRESENT PURELY A BIPARTITE EFFORT.
THIS DIVERGENCE IN THE INDUSTRY-LEVEL BARGAINING
MAY BE ATTRIBUTED TO SUCH FACTORS AS THE
NEWNESS OF THE SYSTEM, THE DESIRE OF THE
PARTIES TO ACHIEVE AGREEMENT EVEN WITH THE
HELP OR GUIDENCE OF THE THIRD PARTY & THE
SCATTERED LOCATIONS OF PLANTS, ALL OF WHICH
MAKE FOR THE COMMITTEE APPROACH.

# BARGAINING WITH MULTIPLE UNIONS----THE

ADVANTAGE OF THIS SYSTEM IS TO INVOLVE MAJOR
UNIONS SO THAT ACCEPTABILITY OF SETTLEMENTS IS
MORE AMONGST THE LARGE NUMBER OF EMPLOYEES.

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HERE BARGAINING INVOLVES A SINGLE EMPLOYER OR
AN ASSOCIATION OF EMPLOYERS & SEVERAL UNIONS.

# TREND TOWARDS JOINT ACTION BY UNIONS-----THIS

IS BARGAINING BETWEEN SINGLE EMPLOYER &
MULTIPLE UNION WHEREIN TRADE UNIONS HAVE JOINED
IN COMMON ACTION TO REALISE THEIR DEMANDS.

# COERCIVE BARGAINING-----( COERCE MEANS

PERSUADE, AN UNWILLING PERSON, TO DO SOMETHING
BY USING FORCE OR THREATS) THE TRADE UNIONS
OVER A LARGE SEGMENT OF ORGANISED INDUSTRY
HAVE SHOWN A TENDENCY FOR AGGRESSIVE OR
COERCIVE METHODS BY RESORTING TO VIOLENCE &
OTHER PRESSURE TACTICS SUCH AS GHERAOS, GO-
SLOW, OR PEN-DOWN STRIKES TO EXERT PRESSURE
ON MANAGEMENT. THEIR AGGRESSIVE TENDENCIES
HAVE BECOME INCREASINGLY PRONOUNCED IN RECENT
YEARS. THIS ATTITUDE OF UNIONS IN CB LED TO
UNTOWARD SITUATIONS. OFTEN, THE VIOLENCE & THE
COERCIVE TACTIC HAS LED THE MANAGEMENT TO
CLOSE DOWN UNIT OR TO DECLARE LOCK-OUT.

# NATURE OF TECHNIQUES----THE MILITANCY &

INEXPERIENCE WITH BARGAINING HAS LEFT ITS IMPRINT
ON THE NATURE OF TECHNIQUES USED---IN THE
PROCESS OF BARGAINING OUTSIDE AGENCIES HAVE
PLAYED A MORE USEFUL ROLE THAN THE DIRECT
NEGOTTITIONS BETWEEN THE PARTIES. THE USE OF
CONCILIATION HAS BECOME INCREASINGLY
PRONOUNCED WITH GROWTH IN CB.
# THIS INDICATES THE INCREASED TENDENCY AMONG
PARTIES TO RESOLVE DIFFERENCES WITH THE HELP OF
THE OUTSIDE PARTY RATHER THAN THROUGH DIRECT
DISCUSSIONS.

# SCOPE OF COLLECTIVE BARGAINING-----EMPHASIS IN

BARGAINING HAS SHOWN A SIGNIFICANT SHIFT IN

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RECENT YEARS FROM WAGE ISSUES TO NON-WAGE
ISSUES. THE ISUUES THAT ARE NOW FREQUENTLY
DEALT INCLUDE :-
1. VARIETY BENEFITS & ALLOWANCES.
2. WORKING CONDITIONS
3. RATIONALISATION.
4. LEAVE & HOLIDAYS---LEAVE & PAID HOLIDAYS.
5. EMPLOYMENT CONDITIONS---OVERTIME, SHIFT
ALLOWANCE, MEDICAL BENEFITS, ACCIDENT
BENEFITS, RETIREMENT BENEFITS
6. INCENTIVE SCHEMES & ATTENDENCE BONUS
SCHEME.
7. PRODUCTIVE BONUS
8. TENDENCY TO DRAW AN AGREEMENT FOR A
PERIOD OF TWO TO THREE YEARS.

CONCLUSION

# THERE IS INCREASING TREND TOWARDS GREATER

APPRECIATION & USE OF CB PRACTICES. IT HAS
MULTIPLE APPLICATIONS BESIDES SETTLING THE TERMS
& CONDITIONS OF EMPLOYMENT. IT ALSO IS A
MECHANISM FOR THE INSTITUTIONAL RESOLUTION OF
CONFLICT & A MEANS FOR WORKER PARTICIPATION,
THROUGH DISCUSSIONS & INVOLVEMENT IN THE
MANAGERIAL DECISION-MAKING PROCESS. THIS IS THE
GOAL TOWARDS WHICH STABILISED ORGS, WITH A
HISTORY OF BIPARTITE AGREEMENTS ARE MOVING,
MORE SO IN DEVELOPED COUNTRIES.

# COLLECTIVE BARGAINING REQUIRES A DEGREE OF

MATURITY ON THE PART OF BOTH THE PARTIES. IT IS
A PROCESS THAT TAKES BOTH TIME & SKILL, WHICH
HAVE TO BE DEVELOPED. BUT ABOVE ALL, IT IS BASED
ON THE ASSUMPTION THAT REASONABLE MEN WILL
WANT TO REACH AN AGREEMENT, GIVEN TIME & THE
SIYUATIONAL CONSTRAINTS & OPPORTUNITIES.

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# IN 21st CENTURY, THE BUSINESS IS THE

RESPONSIBILITY OF BOTH THE E & E. PERFORMANCE IS
THE KEY DRIVER OF SUCCESS, WHICH WILL LEAD TO
SURVIVAL. THE BIGGEST CHALLENGE LIES WITH THE HR
PROFESSIONALS TO TAKE UP A DEVELOPMENTAL
INITIATIVE IN MAKING THE WORK FORCE MORE
ACCOUNTABLE, COMMITTED AS BUSINESS PARTENERS.
THOUGH CB IS A POWERFUL TOOL IN MAINTAINING
PEACE & HARMONIOUS RELATIONSHIPS, THE APPROACH
NEEDS TO BE REINVENTED AS A COLLECTIVE DECISION
MAKING RATHER THAN CB.

# THE DISTRIBUTION OF BENEFITS SHOULD NOT BE

BASED ON CB, RATHER IT SHOULD BE BASED ON
BUSINESS GROWTH MODEL WHICH IMPLIES MAXIMIZING
THE PROFIT ETHICALLY & DISTRIBUTING THE SAME
PROPORTIONATELY AMONG ALL THE STAKEHOLDERS. IT
IS HIGH TIME THAT ORGS & UNIONS UNDERSTOOD &
TOOK INITIATIVES IN BREAKING THE MANAGEMENT-
WORKER BARRIERS
& DEVELOPING A MUTUAL GAIN MODEL TO AVAIL
COMPETITIVE ADVANTAGE.
( THAT IS WHAT WE LEARNT THROUGH ONE OF THE
ELEMENTS OF MANAGEMENT NAMELY ‘MENTAL
REVOLUTION’ GIVEN TO US BY SCIENTIFIC
MANAGEMENT OF TAYLOR )

“ YOU WILL GET ALL YOU WANT IN LIFE IF YOU

HELP ENOUGH OTHER PEOPLE GET WHAT THEY
WANT”------ZIG ZIGLAR

AMEN---SO BE IT.

SUMMARY---THE COLLECTIVE BARGAINING

1. INTRODUCTION.
2. WHAT IS CB ?

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3. DEFINITION OF CB & WHAT DO WE LEARN FROM
THESE DEFINITIONS.
4. PREREQUISITES FOR SUCCESSFUL CB.
5. CB PROCESS.
6. STEPS TO IMPROVE THE PROCESS OF CB.
7. TACTICS USED IN CB.
8. TYPES OF CBS.
9. TRENDS IN CB. AND
10. CONCLUSION.

TECHNOLOGY & INDUSTRIAL RELATIONS

1. INTRODUCTION.
2. TECHNOLOGICAL ADVANCEMENT & ITS NEED.
3. PREREQUISITES FOR TECHNOLOGICAL
ADVANCEMENT.
4. ADVANTAGES OF THE SAME.
5. IMPACT OF IT ON THE EMPLOYEES.
6. RESISTENCE,
7. APPROPRIATE TECHNOLOGY. AND
8. PERFECT FIT.

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INTRODUCTION
# TECHNOLOGY IS THE APPLICATION OF SCIENTIFIC KNOWLEDGE FOR
PRACTICAL PURPOSES; IT IS THE BRANCH OF KNOWLEDGE CONCERNED
WITH APPLIED SCIENCES. TECHNOLOGICAL TRANSFER IS THE TRANSFER OF
NEW TECHNOLOGY FROM THE ORIGINATOR TO A SECONDARY USER,
ESPECIALLY FROM DEVELOPED TO UNDERDEVELOPED COUNTRIES.

# THE INTERRELATIONSHIP BETWEEN TECHNOLOGY, TECHNICAL CHANGES

& IR HAS TIME & AGAIN BEEN THE FOCUS OF ATTENTION OF VARIOUS
GPs IN SOCIETY. ANYONE WHO IS INTERESTED IN IR IS CONCERNED WITH
THE EFFECTS OF TECHNOLOGY ON LABOUR MANAGEMENT ISSUES SUCH
AS MANPOWER, JOB SECURITY, REDUNDANCY TRG etc. THE UNIONS &
THE MANAGEMENT HAVE THEIR RESPECTIVE POINTS OF VIEW, WITH THE
GOVT STEPPING IN TO RESOLVE ISSUES & GIVE DIRECTIONS FOR THE
FUTURE, KEEPING IN MIND THE NATIONAL INTEREST & OBJECTIVES.

# TECHNOLOGY IS AN AID TO IMPROVE THE ECONOMIC & SOCIAL LIFE

OF PEOPLE, YET AT THE SAME TIME IT CAN BE USED IN A MANNER
WHICH IS SOMETIMES DETRIMENTAL TO THIS OBJECTIVE. THIS ISSUE,
THAT IS WHAT WOULD BE THE EFFECT OF TECHNOLOGY ON IR, HAS
BEEN A CENTRE OF DEBATE WHICH WE SHALL NOW CONSIDER.

CONCEPT OF TECHNOLOGICAL CHANGE

# TECHNOLOGY IS AN INSTRUMENT OF DEVELOPMENT. IT IS A VEHICLE

OF CHANGE. TECHNOLOGICAL CHANGES AFFECT VARIOUS ASPECTS OF
ECONOMIC & SOCIAL LIFE EITHER DIRECTLY OR INDIRECTLY, IMMEDIATELY
OR IN THE FINAL ANALYSIS.INDIAN ECONOMY OPERATES ON VARIOUS
LEVELS OF TECHNOLOGY SIMULTANEOUSLY, FROM JET PLANES TO
BULLOCK CARTS.

# HABER, FERMAN, & HUDSON HAVE IDENTIFIED CERTAIN CHANGES

WHICH AFFECT JOBS & INFLUENCE SKILLS WHICH CAN BE CALLED
TECHNOLOGICAL CHANGES ( MAINLY APPLICABLE TO AMERICAN INDUSTRIAL
SYSTEM ---WHICH WE CAN TREATE AS TECHNOLOGICAL TRANSFER ). THESE
CHANGES ARE :-
1. SCIENTIFIC MANAGEMENT OR TIME & MOTION STUDY.
2. CHANGES IN THE LOCATION OF PLANTS.
3. SHIFTS IN PRODUCT DEMAND.
4. CHANGES IN MACHINERY. AND
5. AUTOMATION.

RATIONALISATION & AUTOMATION

# RATIONALISATION & AUTOMATION WHICH ARE DIFFERENT FORMS OF

TECHNOLOGICAL CHANGES HAVE BEEN SYSTEMATICALLY INTRODUCED IN
THE INDIAN INDUSTRIAL SYSTEM IN THE SIXTIES.

# RATIONALISM ---- IMPLIES A BASIC CHANGE IN THE STRUCTURE &

CONTROL OF INDUSTRIAL ACTIVITIES. THE ADVISORY COMMITTEE ON THE

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MANAGEMENT OF ILO DEFINES RATIONALISM AS ANY REFORM TENDING
TO REPLACE HABITUAL ANTIQUATED PRACTICES BY MEANS OF METHODS
USED BY SYSTEMATIC REASONING.

# IN THE APPLICATION OF RATIONALISM IT BRINGS TOGETHER THE

ADVANTAGES OF :-
1. PLANNED PRODUCTION.
2. POOLING OF RESEARCH.
3. SCIENTIFIC & TECHNICAL KNOW-HOW
4. CENTRALISED REGULATION OF FINANCES.
5. MODERNISATION OF PRODUCTION PROCESS & SALES. AND
6. OPTIMUM USE OF MANPOWER.

# AUTOMATION----IT IS ANOTHER FORM OF TECHNOLOGICAL CHANGE,

THOUGH OFTEN, IT IS USED SYNONYMOUSLY WITH TECHNOLOGICAL
CHANGE. IN AUTOMATION, TECHNOLOGY ITSELF CONTROLS THE
OPERATIONS. IN OTHER WORDS THE OPERATIONS ARE SELF-REGULATING.

IMPLEMENTATION OF RATIONALISATION & AUTOMATION IN INDIA

# THE NEED FOR RATIONALISATION & AUTOMATION IN INDIA WAS FELT

IN THE FIFTIES. SALIENT REASONS FOR THESE NEEDS COULD BE :-
1. TO IMPROVE THE STANDARDS OF LIVING OF WORKERS BY HIGHER
PRODUCTIVITY.
2. IN THE EUROPEAN & ASIAN COUNTRIES, PARTICULARLY AFTER WORLD
WAR I I, WERE USING ADVANCED TECHNOLOGY IN MILLS &
FACTORIES WHICH HAD SHOWN BENEFITS WHICH PROMPTED INDIA
TO MODERNISE THEIR MACHINERY.
3. TO SUSTAIN IN THE HIGHLY COMPETITIVE WORLD, THE NEED FOR
RATIONALISATION WAS FELT TO INCREASE THE PRODUCTIVITY
EFFEICIENCY SO THAT EXPORTS COULD BE STEPPET UP.
4. AFTER THE WAR, A VAST SURPLUS IN LABOUR IN NUMBER OF
INDUSTRIES WAS THERE WHICH COULD NOT BE RETRENCHED BY THE
EMPLOYERS. THIS LED TO RATIONALISATION.

# WHEN THE RATIONALISATION PROCESS WAS INTRODUCED THERE WAS

OPPOSITION ON THE PART OF THE WORKERS BECAUSE OF THE FEAR OF
RETRENCHMENT. THE LABOUR MINISTRY & PLANNING COMMISSION
WORKED OUT CERTAIN SAFEGUARDS FOR WORKERS IN THE FORM OF
FIXING WORK LOADS, STOPPING FRESH RECRUITMENTS, SHARING OF
GAINS THROUGH HIGHER WAGES etc.

# IN THE SECOND FIVE-YEAR PLAN, THE APPROACH TO RATIONALISATION

WAS CLARIFIED. IS WAS TO BE ATTEMPTED ONLY WHEN IT DID NOT
LEAD TO UNEMPLOYMENT. IF IT WAS INTRODUCED, IT WAS TO BE IN
CONSULTATION WITH WORKERS & WAS TO BE EFFECTED ONLY AFTER
IMPROVING WORKING CONDITIONS & GUARANTEERING A SHARE OF THE
GAINS TO THE WORKERS.

IMPACT OF TECHNOLOGICAL CHANGE

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# TECH CHANGE DOES HAVE AN IMPACT ON INDUSTRIAL ACTIVITY.
IMPORTANT IMPACTS COULD BE :-
1. INSTALLATION OF LARGE NUMBER OF AUTOMATIC MACHINES AT THE
SAME TIME NATURALLY CREATES SERIOUS PROBLEMS OF
UNEMPLOYMENT BECAUSE BY INTRODUCING AUTOMATION THE
NUMBER OF WORKERS FOR THE SAME OUTPUT IS LESS.
2. INTRODUCTION OF ADVANCED TECHNOLOGY SHOULD BE GRADUAL &
DONE IN CONSULTATION WITH THE WORKERS’ REPRESENTATIVES &
SHOULD SATISFY THE FOLLOWING CONDITIONS :-
( a ) IT ACCOMODATES ALL LABOUR THAT MAY BE RENDERED
SURPLUS.
( b ) IT RESULTS IN HIGHER PRODUCTIVITY & EFFICIENCY.
( c ) IT IMPROVES THE LEVEL OF EARNINGS OF THE WORKERS &
ENSURES
EQUITABLE GAINS DUE TO TECHNOLOGICAL CHANGES. AND
( d ) IT LEADS TO REDUCTION IN COSTS & BENEFITS TO THE
COMMUNITY.
3. TECH CHANGE AFFECTS THE WORK ENVIRONMENT & ALTERS THE
RELATIONSHIP BETWEEN THE E-E. THIS REQUIRES CHANGES &
ADJUSTMENTS IN THE WORK SITUATION. INDUSTRIES BEING OPEN
SYSTEMS, ARE REQUIRED TO ABSORB INTERNAL & EXTERNAL
PRESSURES. THESE PRESSURES MAKE INDUSTRIES CHANGE THEIR
PRODUCTION PROCESSES BY INTRODUCING MODERN TECHNOLOGICAL
DEVICES. THIS IS BECAUSE INDUSTRIES WOULD BE LOOSING SKILLED
LABOUR & TOUGH MARKET CONDITIONS & REQUIREMENTS OF
CUSTOMERS. ONCE THE CHANGE IS INTRODUCED ITS IMPACT DEPENDS
ON THREE FACTORS---THE NATURE OF THE CHANGE; THE RATE 7 SPEED
AT WHICH THE INNOVATIONS ARE INTRODUCED; AND THE METHODS
EMPLOYED BY THE MANAGEMENT FOR INTRODUCING THE CHANGE.

4.TECHNOLOGICAL CHANGE AFFECTS LABOUR IN TWO WAYS—ECONOMIC

& SOCIAL. UNDER ECONOMIC CATEGORY COME REDUNDANCY ( NOT OR
NO LONGER NEEDED OR USEFUL ), OCCUPATIONAL ADJUSTMENTS,
ALLOCATION OF GAINS, TRANSFER & RETAINING PROBLEMS etc. UNDER
SOCIAL CATEGORY WE HAVE PSYCHOLOGICAL FACTORS SUCH AS
RESISTANCE TO CHANGE, JOB SATISFACTION, WORKER & UNION
REACTIONS & ATTITUDES & PROBLEMS OF CHANGED RELATIONSHIPS.
HERE WE MUST REMEMBER THAT ALL CHANGES ARE NOT RESISTED. IT
IS FOUND THAT WORKERS RESIST ANY CHANGE IN THEIR WORK AS A
RESULT OF AUTOMATION IF IT THREATENS THEIR BASIC SECURITY OR IF
THEY DO NOT UNDERSTAND THE CHANGE & WHEN THEY ARE FORCED
TO CHANGE. IT IS, THEREFORE, VERY ESSENTIAL TO INTRODUCE ANY
CHANGES, PARTICULARLY TECHNOLOGICAL CHANGES, ONLY WHEN THE
WORKERS HAVE BEEN TRAINED & MADE TO ACCEPT THE NEEDS FOR
CHANGES. THAT IS MAKE THEM A PART OF THE CHANGES.

5. AN IMPORTANT RESULT OF TECHNOLOGICAL CHANGE TO AUTOMATION

IN INDIAN INDUSTRY IS THAT THE OUTPUT PER WORKER HAS RISEN
CONSIDERABLY. TRADE UNIONS QUESTION THE ASSUMPTION THAT ALL
TECHNOLOGICAL ADVANCE WHICH REPLACES MAN BY MACHINES
SPELLS PROGRESS OR GROWTH IN SOCIO-ECONOMIC SENSE. THEY

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INSIST THAT TECHNOLOGICAL CHANGES LEAD TO ECONOMIC GROWTH
ONLY UNDER CERTAIN CONDITIONS. THEY ALSO FEEL WORKERS’
REPRESENTATIVES HAVE A RIGHT TO BE CONSULTED BEFORE THE
INTRODUCTION OF ANY CHANGE. ON THE OTHER HAND EMPLOYERS
HAVE CONSISTENTLY CLAIMED THAT THEY SHOULD DECIDE UPON
SUCH CHANGES & HAVE BEEN WILLING TO DISCUSS THE PROBLEMS
OF HOW EMPLOYEES CAN BE PROTECTED FROM THE ADVERSE
EFFECTS OF SUCH CHANGES. THIS IS ONE OF THE MAJOR PROBLEMS
THAT LEADS TO INDUSTRIAL CONFLICTS.
6. OTHER PROBLEMS WHICH RESULT FROM TECHNOLOGICAL CHANGE
ARE :-
( a ) CHANGES IN JOB CONTENT, THEREBY CREATING NEW JOBS TO
REPLACE OLD ONES---THIS WOULD REQUIRE WAGE FIXATION FOR THE
NEW JOBS.
( b ) FITTING NEW JOBS INTO EXISTING INCENTIVE SCHEME OR PIECE
RATE STRUCTURE WHICH CALLS FOR NEW ATTITUDE & SKILLS.

APPROPRIATE TECHNOLOGY : ITS RELEVENCE TO THE INDIAN

CONTEXT

# THE TRANSFER OF LARGE-SCALE COMPLEX TECHNOLOGY FROM HIGHLY

INDUSTRIALISED COUNTRIES TO DEVELOPING COUNTRIES POSES PROBLEMS
WHICH COULD BE----IT IS EXPENSIVE; THE EDN & INDUSTRIAL
INFRASTRUCTURE NEEDED TAKES MANY YEARS TO BUILD UP & ITS
INTRODUCTION INHIBITS THE GROWTH OF THE INDEGENOUS INNOVATIVE
CAPABILITIES OF THE DEVELOPING COUNTRY.

# IN THE PROCESS OF TECHNOLOGICAL DEVELOPMENTS TWO

TERMINOLOGIES CAME IN----“APPROPRIATE TECHNOLOGY” & “
INTERMEDIATE TECHNOLOGY” THE COMPARISON OR CLASSIFICATION
AROSE WHEN THE DEVELOPED COUNTRIES OF THE WEST WERE
COMPARED WITH THE LESS DEVELOPED COUNTRIES IN TERMS OF
TECHNOLOGY, SYSTEMS OF MANUFACTURE etc. WHEN THESE
COMPARISONS WERE MADE THERE WAS AN IDENTIFIABLE GAP BETWEEN
THE ADVANCED & THE LESS ADVANCED & THEREFORE THE TERM “
INTERMEDIATE” CAME INTO USE. THEREFORE THE CONNOTATION OF
INTERMEDIATE TECHNOLOGY IS A HALF-WAY STAGE BETWEEN THE SIMPLE
OR NON-EXISTENT & THE ADVANCED.

# INTERMEDIATE TECHNOLOGY DENOTES A STAGE BETWEEN THE

BACKWARD & THE ADVANCED. IN INDIA THE BACKWARD IS IDENTIFIED
WITH THE TECHNOLOGY OF TRADITIONAL INDIAN INDUSTRY.

# HOWEVER SINCE NEITHER “APPRORIATE TECHNOLOGY” NOR

“INTERMEDIATE TECHNOLOGY” WAS AN EXACT FIT, A GREAT DEAL OF
DISCUSSION ENSUED. THIS SUGGESTED THAT TECHNOLOGY SHOULD BE
DEVELOPED OR ADOPTED WHICH WOULD BE APPROPRIATE TO THE
CONDITIONS FOUND IN THE COUNTRIES WHERE IT WAS BEING
INTRODUCED. THIS DENOTES A SOCIAL & CULTURAL MILIEU, WHERE
GIVEN A PARTICULAR COMBINATION OF CONDITIONS, SOCIAL, ECONOMIC,
POLITICAL & SO ON, A RELEVENT TECH IS DEVELOPED KEEPING IN VIEW

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ALL THE SITUATIONAL FACTORS. SO HERE THE CRITERIA IS THE CONCERN
FOR THE APPROPRIATENESS OF TECHNOLOGY.

# THESE CONCERNS FOR ALTERNATE TECHNOLOGIES AROSE DUE TO A

VARIETY OF FACTORS. THE DEVELOPED COUNTRIES UTILISE SYSTEMS THAT
REQUIRE A SUSTANTIAL CAPITAL OUTLAY PER WORKER. ON THE OTHER
HAND, THE LESS DEVELOPED COUNTRIES COULD NOT INVEST MUCH IN
SOPHISTICATED SYSTEMS BUT HAD ABUNDANT MANPOWER. THEREFORE
THE LESS DEVELOPED COUNTRIES HAD TO DEVELOP TECHNOLOGIES
WHICH WERE BASED ON A LOWER CAPITAL REQUIREMENTS & WERE
MORE LABOUR INTENSIVE FOR EACH UNIT OF OUTPUT. YET THE FACT
THAT TECHNOLOGY AS A FACTOR IS IMPROVING THE STANDARD OF
LIVING & PROVIDING GOODS & SERVICES AT REDUCED COSTS, CANNOT
ALTOGETHER BE IGNORED. HENCE THE DILEMMA OF MATCHING THE TWO
REQUIREMENTS. THERE IS NEED TO DEVELOP REQUIRED LABOUR SKILLS
TO MATCH MACHINE SKILLS.

# IT WILL BE NOTICED THAT TECH IS A SYSTEM THAT ENABLES PEOPLE

TO IMPROVE THEIR WORK PROCEDURES & AS A RESULT THEIR SOCIAL &
ECONOMIC STATUS ALSO. TECH INPUTS CAN BE EFFECTIVELY UTILISED TO
PROVIDE MORE EFFICIENT METHODS & BETTER UTILISATION OF SCARCE
RESOURCES LIKE MANHOUR, MONEY etc. IT CAN MAKE MANY BACK-
BREAKING JOBS LESS ARDUOUS. WITH TECH CHANGE, GIVEN THE SAME
AMOUNT OF INPUT, A BETTER OUTPUT MAY BE POSSIBLE. INTRODUCTION
OF NEW TECHNOLOGIES WILL HAVE REPERCUSSIONS ON INDUSTRIAL
RELATIONS, LIKE LOSS OF JOB SECURITY, CHANGE IN HABITUAL WORK
METHODS, NEED TO ADAPT TO NEW SKILLS etc. THEREFORE THE
PERSONNEL & IR MANAGER HAVE TO CAREFULLY EVOLVE A STRATEGY
WHICH WOULD BE ACCEPTABLE TO THE WORKERS & AT THE SAME TIME
BE CONCERNED WITH THE VIABILITY OF THE ENTERPRISE.

COCLUSION

# THERE IS NO DOUBT THAT NEW TECHNOLOGIES MUST BE

UNDERSTOOD & SUITABLE ONES SHOULD BE INTRODUCED IN THE
INDUSTRY BUT WHO IS GOING TO OPERATE THESE ? SO
MAAGEMENT WOULD BE DEEPLY INVOLVED IN TRG THE REQUIRED
WORK-FORCE SO THAT NEW TECH COULD BE ADOPTED & AT THE
SAME TIME IR ARE NOT DISTURBED. IF THE INITIAL RESISTANCE TO
CHANGES IS OVERCOME BY MAKING THE WORKERS A PARTY TO
THE CHANGES, LARGE NUMBER OF PROBLEMS COULD BE SOLVED.

SUMMARY----TECHNOLOGY & IR
1. INTRODUCTION. 2. CONCEPT OF TECHNOLOGY. 3. RATIONALISATION
& AUTOMATION. 4. IMPLICATIONS OF RATIONALISATION &
AUTOMATION IN INDIA. 5. IMPACT OF TECHNOLOGICAL CHANGES. 6.
APPROPRIATE TECHNOLOGIES WITH RELEVENCE TO THE INDIAN
CONTEXT. 7. COCLUSION

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IMPACT OF GLOBALIZATION & LIBERALIZATION

ON IR
1. WHAT IS GLOBALIZATION & LIBERALIZATION ?
2. IT IMPACT ON INDUSTRIES.
3. CHANGES ON IR.
4. NEED FOR CHANGES.

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