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Transcript of Chapter 4 IR
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In a restricted sense, it is the act of imposing penalties for wrongbehaviour (negative); broadly speaking, it is a condition of orderliness,
where employees willingly practice self control and respect organisational
rules and codes of conduct (positive). The differences between the two
sides of the same coin could be expressed thus:
Discipline
The differences between positive andnegative discipline
Point Negative Discipline Positive Discipline
Concept It is adherence to established norms It is the creation of a conducive climate
and regulations, out of fear of in an organisation so that employees
punishment. willingly conform to the established rules.
Conflict Employees do not perceive the There is no conflict between individual
corporate goals as their own. and organisational goals.
Supervision Requires intense supervisory control Employees exercise self control to meet
to prevent employees from going off organisational objectives.the track.
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Some of the common disciplinary problems confronted byorganisations include the following
Common disciplinary problems
Discipline
Attendance-related problem Off the Job behaviour problems
Unexcused absence InsubordinationChronic absenteeism Smoking
Leaving without permission Fighting with colleagues
Excessive tardiness Gambling, betting
Dishonesty and related problems
Theft, unsafe acts
Carelessness
Falsifying employment application
Sleeping while at work
Wilfully damaging factory assets
Using abusive language against supervisiors
Falsifying work records
Sexual harassment
Performance related problems
Failure to complete assigned work
Accepting bribes, gifts
Producing substandard products
Failure to meet production norms 3/22/20123
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Causes of Indiscipline
Absence of effective leadership
Unfair management practices
Communication barriers
Non-uniform disciplinary action
Divide and rule policies
Inadequate attention to personnelproblems
Discipline
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Positive Discipline Approach
The positive discipline, based uponreminders, is a cooperative disciplineapproach where employees responsibility forthe desired behavioural change.
The focus is on coping with theunsatisfactory performance anddissatisfactions of employees before the
problems become major.
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Steps in positive discipline approach
Step 1: An Oral Reminder: Notice here that the word warning isremoved. The oral reminder, supported by writtendocumentation, serves as the initial formal phase of the processto identify to the employee what work problems he or she ishaving. This reminder is designed to identify what is causing the
problem and attempts to correct it before it becomes larger.Step 2: A Written Reminder: If the oral reminder was unsuccessful, amore formalised version is implemented. This written reminder onceagain reinforces what the problems are and what corrective action isnecessary. Furthermore, specific time tables that the employeemust accept and abide by, and the consequences for failing to
comply, are often included.
Step 3: A Decision-making Leave: Here, employees are given adecision-making leavetime off from work, usually with payto think about what they are doing and whether or not they desireto continue work with the company: This deciding day is
designed to allow the employee an opportunity to make a choicecorrect the behaviour, or face separation from the company.
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Progressive Discipline Approach
In a progressive discipline system, the employee is given amplewarning of performance or other work related problems. Failure tochange his or her behaviour is accompanied by increasingly harsherdisciplinary action. Due process is based on the action thatemployees have the right to be treated fairly, particularly when being
disciplined.
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The Progressive Discipline Approach
Improper behaviour
Does this violation No No disciplinarywarrant disciplinary action
action?
Ye s
Does this violation No Oralwarrant more than warning
an oral warning?
Ye s
Does this violation No Writtenwarrant more than warninga written warning?
Ye s
Does this violation Nowarrant more than Suspension
a suspension?
Ye s
Termination
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The Red Hot Stove Rule
This rule states that discipline should be immediate, consistent, impersonaland should be in writing.
Disciplinary Action in India
The disciplinary action followed in most Indian companies consists of thefollowing steps:
Issuing a letter of charge
Considering the explanation offered by the employee
Issuing a show cause notice
Holding an enquiry based on principles of natural justice
Progressive Discipline Approach
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Giving a fair chance to employee to explain his case thoroughly
Enabling the employee to cross examine the evidence furnished bymanagement
Explain his own point of view without any fear or pressure
See that punishment is in line with the offence committed.
Making a final order of punishment consisting of various actions such as:
Dismissal
Discharge
Suspension
Demotion to a lower gradeWithholding of increments
Imposing fines
Issuing a warning
Initiating follow up action.
Progressive Discipline Approach
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INTRODUCTIONWhen an employee feels that something is unfair in the organisation,
he is said to have a grievance. To be precise, grievances have
certain common features;
Features of the term grievance
Perceived non fulfillment of one's expectations leading to dissatisfaction with anyaspect of the organization.
The dissatisfaction arises out of employment and not due to personal or familyproblems
The reasons could be real or imaginary or disguised.
The discontent may be voiced or unvoiced
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Causes
Economic
Work environment
Supervision
Work group
Miscellaneous
Effects
If grievances are not identified and redressed properly, they may
adversely affect the workers, managers and the organisation.
Production
Employees
Managers
EMPLOYEE GRIEVANCES
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It is a formal channel of communication used to resolve grievances.Having a formal grievance procedure has its own advantages.Workers get a wonderful opportunity to ventilate their feelings.
Management can go back to the roots of a problem quickly.
Supervisors, too, have to fall in line and listen to workerscomplaints more seriously.
A fair redressal mechanism would boost the morale of all employeesgreatly.
Grievance Procedure
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The success of a grievance procedure, to a large extent, dependson the various ways adopted to dig out the problem:
The discovery of grievances
How to uncover grievances?
Observation
A formal grievance procedure
Gripe boxes
Open door policy
Exit interviews
Opinion surveys
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Essentials of a formal grievanceprocedure
A sound grievance procedure must have the following characteristics
Prerequisites of a grievance procedure
Conformity withstatutory provisions
Unambiguity
Simplicity
Promptness
Training
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Steps in the grievance procedure
Identify grievances
Define correctly
Collect data
Analyse and solve Prompt redressal
Implement and follow up
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Model Grievance Procedure
The model grievance procedure suggested by the National Commissionon Labour involves six successive time-bound steps each leading to thenext, in case employees have any reason to complain against any issueaffecting their organisational lives.
Model grievance procedureP r o ce du r e Time Fr ame
Appeal against within a week
Manager 3 days
Grievance Committee 7 days unanimous
HOD 3 days
Supervisor 48 hours
Foreman
Worker
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Guidelines for handling grievances
Treat each case as important and get the grievancein writing
Talk to the employee directly
Discuss in a private place
Handle each case within a time frame
Examine company provisions in each case
Get all relevant facts Control your emotions
Maintain proper records
Be proactive, if possible.
Grievance Procedure
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Essentials of A Good Disciplinary System
Rules and performancecriteria
Documentation of facts
Consistent response to ruleviolations
Training of supervisors
Prompt action
Impersonal discipline
Reasonable penalty
Follow up3/22/201220
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Workers taking to streets.????
3/22/201222
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ACTION TAKEN BY WORKERS
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On 19 October workers from Rico Auto embarked on a
strike and were later joined by workers from other
companies like Hero Honda, Honda, Suzuki etc.
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Police beating HONDA
workers
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Clash between Police and workers
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Introduction
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An industry is a social world inminiature. Associations of variouspersons, workmen, supervisory staff,
management and employer inindustry create industrialrelationships.
This affects the economic, social andpolitical life of the whole community.
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Introduction
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Thus, industrial life creates a series ofsocial relationship which regulate the
relations and working of not only
workmen and management but also of
community and industry.
Industrial relations are inherent in an
industrial life
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The term industrial relations refers to the
collective relations between employers and
employees as a group.
It underscores the importance of compromise
and accommodation in place of conflict and
controversy in resolving disputes between labour
and management.
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Industrial relations are influenced by various factorsviz., institutional factors, economic factors and
technological factors.
1. Institutional factors: These factors include
government policy, labour legislation,
voluntary courts, collective agreements, employee
courts, employers federations, social institutions
like community, caste, joint family, creed,
system of beliefs, attitudes of workers, system of
power, status, etc.
Major factors influencing industrial
relations
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Economic factors: These factors include economicorganisations, like capitalist, communist, mixed,
etc., the structure of labour force, demand for and
supply of labour force, etc..
3. Technological factors: These factors include
mechanisation, automation, computerisation etc.
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Industrial relations: majorinfluences/Parties in IR
Government Rules,
Awards, Policies
Industrial
Relations
EmployeesEmployer
Trade UnionsEmployers
AssociationsUsages, customers, traditions within
a country
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New dynamics and New actors
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Consumers and Community
Pro-labour and Pro investor policies
Changing mindsets of the Judiciary, legislature and
Executive
Declining Trade Union Density
Worker militancy replaced by employer militancy
Collective Bargaining
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Objectives of industrial relations
Enhance the economic position of the worker
Minimise conflicts and to the extent possible, avoid conflicts andtheir negative consequences
Allow workers to have a say in important decisions affecting their
lives Resolve knotty issues through consultation and negotiation
Encourage and develop trade unions in order to improve theworkers' collective strength
Pave the way for industrial democracy.
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Employer-employeeinteractions
Web of rules
Multidimensional
Dynamic and changing
Spirit of compromise andaccommodation
Government's role
Wide coverage
Interactive and consultative innature
Industrial Relations: Features
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Importance of IR
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Promotion and development of healthy labour-
management relationships
Maintanence of Industrial Peace and avoidance of
Industrial strife Development of industrial democracy
Sound IR gets unreserved employee co operation
It prevents industrial disputes
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Functional requirements of sound IRprogramme
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Top management support
Sound management policies
Adequate practices
Detailed Supervisory training Follow up results
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Why more attention is being paidto Industrial Relations
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Globalization
Technology
Changes in workforce
Organizationalpsychology and
behavior
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Current and future issue
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Cross cultural management
Balancing Efficiency with Equity and Labor
Market Flexibility
Freedom of Association, Labor Rights and
Changing Patterns of Work
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Contd
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Role of Women
Migration
Transition Economies
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DISPUTES
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Introduction
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Industrial disputes are a serious problem that manydemocratic societies face.
At a point of time an industrial relations problems may
be confine to one firm, an industry, a sector, a
locality/region or the whole nation.
Industrial disputes sometimes have a cascading effect.
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Industrial dispute
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Dispute and conflict are used more or less assynonyms in IR.
Difference between unrest and disputeUnrest is
psychological in nature and the disputes are concrete
evidence of unrest.
Disputes constitute open manifestations of the feeling
of dissatisfaction, disputes are the overt expressions.
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Contd-
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Industrial disputes are essentially symptoms ofindustrial unrest and refelect a lack of cooperative
spirit and harmonious relations in the industry.
Elaborate preventive and reactive measures are put in
place to minimise the debilitating social-economic-political fallouts of industrial disputes.
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Causes of industrial dispute
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Conflict of interests Economic causesWages, Bonus, Economic insecurity
Working conditions and Labour welfare
Personnel Factors Psychological Factors
External Factors
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Features of the term industrialdispute under Industrial Dispute Act
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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 anindustrial dispute
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Forms of Industrial Disputes
Strikes: These are collective stoppages of work by workers. General strike
Unofficial strike
Sectional strike
Sit down strike
Slow down strike
Hunger strike
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Lock outs: Closing down of an undertaking or the suspension ofwork or the refusal of an employer to continue to employ anynumber of persons employed by him is known as 'lock out'.
Gherao: Gherao means to surround. In this method, a group ofworkers initiate collective action aimed at preventing members of
the management from leaving the office.
Picketing and Boycott: When picketing workers often carry ordisplay signs, banners and placards, prevent others fromentering the place of work and persuade others to join the strike.Boycott aims at disrupting the normal functioning of an
enterprise.
Forms of Industrial Disputes
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hi h S l f
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Machinery For The Settlement ofIndustrial Disputes In India
When the relationship between the parties is notcordial, discontentment develops and conflicts
erupt abruptly.
It is not always easy to put out the fires with the
existing dispute-settlement machinery, created
by the government.
Hence both labour and management must
appreciate the importance of openness, trust
and collaboration their day-to-day dealings.3/22/201249
M hi f P i d
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Machinery for Prevention andSettlement of Industrial Disputes
Machinery for prevention and settlement of disputes
Voluntary Methods
Collective Bargaining
Trade Unions
Joint consultations
Standing Orders
Grievance Procedure
Code of Discipline
Government Machinery
Labour Admin is t ra t ion
Machinery
State Level
Central Level
Statutory Measures
Works Committees
Conciliation
(A) C.Officer
(B) C. Board
Arbitration
Adjudication
(a) Labour Courts(b) Industrial Tribunals
(c) National Tribunals
Indus
trialDisputes
A
ct,1947
State
Acts
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M hi F Th S ttl t f
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Machinery For The Settlement ofIndustrial Disputes In India
Works committees: As per the Industrial DisputesAct, 1947, works committees have to be set up allthose industrial units which employ 100 or morepersons. It is basically a consultative body
Giving greater participation to workers
Ensuring close interaction between labour andmanagement
Generating cooperative atmosphere for
negotiation between parties Opening the doors to unions to have a clearview of what is going on within the unit
Strengthening the spirit of voluntary settlement
of disputes 3/22/201251
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Contd-
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Joint Management Councils: The JMCnormally consists of equal number of representatives
of workers and employers looking after three things:
information sharing, consultative and administrative
matters relating to welfare, safety, training etc and theformulation of standing orders.(of course, without
encroaching on the jurisdiction of works committees)
M hi F Th S ttl t f
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Standing orders: These are the rules andregulations which govern the conditions of employmentof workers. The Industrial Employment (standingorders) Act of 1946 provides for the framing of standing
orders in all industrial undertakings employing 100 ormore workers.
Grievance procedure: A model grievanceprocedure as suggested by the Indian Labour
Conference, 1958 has more or less been widelyaccepted in India now.
Code of discipline: It consists of a set of self-imposed obligations voluntarily formulated by the
central organisation of workers and employers.
Machinery For The Settlement ofIndustrial Disputes In India
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d i l i l
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Industrial Disputes: SettlementMachinery
Conciliation: The practice by which the services of a neutral third partyare used in a dispute as a means of helping the disputing parties toreduce the extent of their differences and to arrive at an amicablesettlement or agreed solution.
Conciliation officer: an authority appointed by the government tomediate disputes between parties brought to his notice; enjoying
the powers of a civil court. He is supposed to give judgment within 14days of the commencement of the conciliation proceedings.
Board of conciliation: The Board is an adhoc, tripartite bodyhaving the powers of a civil court created for a specificdispute(when the conciliation officer fails to resolve disputes within
a time frame, the board is appointed)
Court of enquiry: In case the conciliation proceedings fail toresolve a dispute, a court of enquiry is constituted by thegovernment to investigate thedispute and submit the report within six months.
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M hi F Th S ttl t f
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Voluntary arbitration: It is the process in which the disputing partiesshow willingness to go to an arbitrator (a third party) and submit to hisdecision voluntarily.
Adjudication: It is the process of settling disputes compulsorilythrough the intervention of a third party appointed by theGovernment. The Industrial Disputes Act provides a three-tieradjudication machinery consisting of:
Labour Court
Industrial tribunal
National tribunal
Machinery For The Settlement ofIndustrial Disputes In India
3/22/201255
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Trade unions
56 3/22/2012
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Voluntary organizations of workers formed with a view todefending and advancing their collective interests eithermutually or in relation to outside parties such asemployers, government and other trade unions.
It is a continuous association of wage earners for thepurpose of maintaining or improving the conditions of
their working title. (Webb and Webb)
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The Indian Trade Unions Act, 1926, defines a trade union
as any combination whether temporary or permanent
formed primarily for the purpose of regulating therelations between workers and employers or between
workmen and workmen, or between employers and
employers or for imposing restrictive conditions on the
conduct of any trade or business and includes anyfederation of two or more trade unions.
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Wages
Working conditions
Job security
Welfare activities
Types of industrial action that can
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Types of industrial action that canbe taken by trade unions:
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Strike
Work to rule
Go slow
Picketing
Overtime ban
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What do trade unions do
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Negotiation
Representation
Information and
advice
Member services
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Functions of trade unions
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Militant functions Protective functions
Fraternal functions
Political functions
Social functions
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Kinds of unions
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Craft Unions Industrial Unions
General unions
Federations
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White collar trade union
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All clerical or office staff who do not work on the shopfloor, are termed as white-collar workers as their work
& working places are clean.
They are generally involved in a desk job or providing
service over the counter.
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Contd-
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They are non-manual workers forming a distinct socialground, characterized by divergent socio-economic
backgrounds, level of education, manner of speech,
social custom & ideology. They are better educated &
have jobs requiring mental capabilities to a greaterextent.
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Why white-collar workers unions?
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Seeing how unions of blue-collar had improved theirservice, employment & working conditions by
bargaining collectively with their employers white-
collar workers also started uniting and organizing
themselves & forming their unions for fighting forbetter pay scales, more fringe benefits, internal
promotion by collective bargaining
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INTRODUCTIONThe basic objective of collective bargaining is to
arrive at an agreement on wages and other conditions
of employment. Both labour and management must
reconcile their differences voluntarily through
negotiations, yielding some concessions and making
sacrifices in the process.
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Important features of Collective
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Important features of CollectiveBargaining
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Collective
Strength
Flexible
Voluntary Continuous
Dynamic
Representation
Bipartite process
complex
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resolve differences over knotty issues protect the interests of workers throughcollective action
carry out negotiations voluntarily, withoutinterference from a third party
arrive at an amicable agreement through aprocess of give and take
Objectives of collective bargaining
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h b f b i i
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The substance of bargaining
1. Wages and working conditions
2. Work norms
3. Incentive payments
4. Job security
5. Changes in technology
6. Work tools, techniques and practices7. Staff transfers and promotions
8. Grievances
9. Disciplinary matters
10. Health and safety
11. Insurance and benefits
12. Union recognition
13. Union activities/responsibilities
14. Management rights
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Identification of the problem
Collection of data
Selection of negotiators
Climate of negotiations
Bargaining strategy and tactics
Formalizing the agreement
Enforcing the agreement
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Steps in the collective bargainingprocess
C ll i i i di
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Unions occupying centre stage only after 1900
Mostly legal machinery used to resolve disputes
After independence, collective bargaining gained ground
Productivity bargaining is increasingly popular in recent
times due to global competition, customer-focused
manufacturing and marketing etc.
Factors inhibiting collective bargaining
Employer's reluctance
Weak unions
Inappropriate legislative framework
Collective Bargaining In India
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Conditions Essential For Collective
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Conditions Essential For CollectiveBargaining
To strengthen collective bargaining, both parties must carryout negotiations in an atmosphere of mutual trust and faith,
observing certain essential things:
Unanimity among workers
Strength of both parties
positive attitude
willing to make some sacrifices
prepared to implement previously agreed
things strictly
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Representative authority
Representatives must understand the
problems of both parties Willing to discuss everything and notnecessarily something related to wagesand monetary benefits
Parties having respect toward eachother
Carry out negotiations free from unfairpractices
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WORKERS PARTICIPATION IN
MANAEMENT
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Workers participation in management
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Workers have a say in the decisionmaking processof an enterprise
Crystallises the concept of Industrial democracy
Importance of workers participation in management
Mutual understanding
Higher Productivity
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WPM is a system of communication and consultation,
either formal or informal, by which employees of an
organization are kept informed about the affairs of an
undertaking and through which they express their
opinion and contribute to mgt decisions.
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Meaning of WPM
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Objectives of WPM
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Increasing productivity for the general benefit ofthe enterprise, the employees and the community;
Giving employees a better understanding of theirrole in the working of the industry & of the
production process; and Satisfying the workers urge for self-expression,
thus leading to industrial peace, better relations andincreased co-operation.
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Forms of WPM
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Informative & associative participation
Consultative participation
Administrative participation
Decision participation
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Participative forums in India
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Works committees; Joint mgt. Councils;
Joint councils;
Unit councils;
Plant councils;
Shop councils;
Workers representative on the board of mgt; and
Workers participation in share capital.
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Conditions necessary for effective working of thescheme
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Congenial work environment Well defined roles
Faith in the efficacy of the scheme
Wide publicity
Should be evolutionary
Free flow of information throughout the enterprise
Should be based on mutual trust
Decisions taken by different participatory forumsmust be sincerely carried out in the stipulated time
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Reasons for failure of WPM
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Ideological differences between the employer and theemployees regarding the degree of participation.
Failure to imbibe the spirit of participation by the parties
Multiplicity of participative forums
Lack of strong trade unionism
Unhappy IR
Illiteracy of workers
Non co-operative attitude of the working class
Delays in the implementation of the decisions of theparticipative bodies
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Importance
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Industrial harmony
Industrial democracy
Less resistance to change
Creativity and innovation
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Every organization hears what employees say.
Good organization listens to what itsemployees have to say.
But organizations having employee welfare asa priority listens to what employees dont say.
Introduction
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What is employee welfare???
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Employee welfare can be defined as the efforts madeto make life worth living for workmen.
It includes anything that is done for the comfort and
improvement of the employees and is provided overand above the wages.
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Welfare helps in keeping the morale and motivation of the
employees high so as to retain the employees for longer
duration.
Employee welfare entails all those activities of employer
which are directed towards providing the employees with
certain facilities and services in addition to wages orsalaries.
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Objectives
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To provide better life and health to the workers
To make the workers happy and satisfied
To relieve workers from industrial fatigue and to
improve intellectual, cultural and material
conditions of living of the workers.
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MERITS
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Enables workers to have a richer and satisfying life
Raises standard of living of the workers
Motivates employees
Employee retention
Minimized social evils
Better job satisfaction
Cuts down labor turnover
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Contd-
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There are several agencies involved in the Labourwelfare work namely the Central Government, State
Governments, Employers, Trade unions and other
social service organisations.
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Contd-
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Employers with a progressive outlook has alwaysinvested heavy amounts in enriching the life of
workers and have always gone beyond what has been
stated in the rule book..
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According to ILO-Social Security is the protection
which society provides for its members, through a series
of public measures, against the economic and socialdistress that otherwise would be caused by the stoppage or
substantial prediction of earning resulting from sickness,
maternity, employment, injury, unemployment, invalidity,
old age and death.
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Features
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Mechanism to solve problem of insecurity. It is a group effort in place of individual effort.
Protect the workers from various contingencies of life.
Collective effort of employee, employer and
government.
Idea to provide social justice.
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Objective
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Compensation Restoration
Prevention
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Purpose of Social Security
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To give individuals and families the confidence thattheir level of living and quality of life will not erode bysocial or economic eventuality.
To provide medical care and income security againstthe consequences of defined contingencies.
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Contd-
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To provide physical and vocational rehabilitation to thevictims.
To prevent or reduce ill health or accidents in theoccupations.
To protect against unemployment by maintenance and
promotion of job creation. To provide benefit for the maintenance of any children.
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Types
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Social InsurancePF, group insurance Social Assistancebenefits offered out of States
general revenue
S i l S i B fi
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Social Security Benefits
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Medical care Sickness Benefit
Unemployment benefit
Old age benefit
Employment injury benefit
Maternity benefit
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An Indian overview
Enactment of several laws to provide social security Schemes are complicated and hence beneficiaries put
into a lot of trouble.
Lack of trained staff to implement these schemes
Considerable overlapping of schemes.
Protracted legal battles in settling claims