IR IN NEW

AVATAR

LEGAL ASPECT OF INDUSTRIAL RELATIONS

BY: KINJAL AGRAWAL KENY VALA

Evolution of IR in India First phase(From 1850s to end of Ist World

war) Import-substitution industrialization National Capitalism Formation of large employment-intensive public

enterprise Largely centralized bargaining with static real wages Relative Industrial peace Growth of public sector unionism Government controlled & regulated IR

Second Phase(The Era of IInd World war ) Considerable slowdown in employment growth &

declining real wages. Crisis in IR system : massive strikes & industrial

conflicts, multiple unionism & decline in strength Government loosing control over the IR system. Third Phase(Post Independence) Variation in wage growth : skilled versus unskilled,

labour productivity increases, period of “jobless” growth.

Rise of independent enterprise unionism, several city/regional IR systems operating

Government slowly withdrawing from IR system.

Compliance of Law

WHY COMPLIANCE MANAGEMENT?

• It provides basic minimum wages and benefits to the employees

• It avoids any legal implications

• It avoids any exploitation and provides basic livelihood and social security to the employees

UNDERSTANDING REGULATIONS• Companies operate with public money •Accountability to stakeholders •Regulations focus on the safety, transparency and soundness of the companies to ensure that •Companies are not unduly exposed to concentration risk •Companies are viable in the long run in terms of liquidity and profitability •Public money is being handled appropriately •Operations are undertaken in a prudent manner Regulations, therefore, need to be seen as facilitators of prudent business – rather than as restrictions to business growth

RISKS OF NON-COMPLIANCE• Regulations represent the critical norms to be followed in day-to-day business •Non-compliance leads to penal actions by regulator •In international scenario penalties are significant •Compliance risk leads to reputation risk •Regulatory actions are visible in public domain•Compliance risk leads to annihilation risk Raises the question of integrity of a company •May lead to closure of business •Impacts the business plan and strategy

COMMON COMPLIANCE RED FLAGS• Rapid growth / new locations / mergers Mere replication of earlier process for new locations / business • Employee turnover •Frequent customer service issues Indicator of reputation risk leading to Compliance risk •Regular statutory/regulatory notices Direct indicator of Compliance risk

Examples of Non-Compliance which can disturb IR scenario in an organization

Failure to incorporate overtime pay for overtime work hours, or completely not paying workers who work overtime

Failure to conduct regular enquiry for workman’s misconduct before dismissal

Changing the service conditions without the workman’s consent

Failure in providing retrenchment compensation and notice on termination of a workman having served above 240 days

IF YOU THINK COMPLIANCE IS

EXPENSIVETRY

NON-COMPLIANCE

ACTS WHICH

GOVERN LABOUR

LAWS

Laws related to Industrial Relations: The Industrial employment(Standing Orders) Act,

1946 The Industrial Disputes Act, 1947 The Trade Unions Act, 1926 Laws Related to Equality and Empowerment

of Women: The Maternity Benefit Act, 1961 The Equal Remuneration Act, 1976 Laws Related to Wages Workmen’s Compensation Act, 1923 The Payment of Wages Act, 1936 The Payment of Bonus Act, 1965

Laws Related to Working Conditions:

The Factories Act, 1948 The Contract Labour (Regulation & Abolition)

Act, 1970

Laws Related to Social Security:

The Employees’ State Insurance Act, 1948 The Employees’ Provident Fund &

Miscellaneous Provisions Act, 1952 The Payment of Gratuity Act, 1972

ACTS WHICH

GOVERN LABOUR

LAWS

CAUSES OF IR ISSUES Two types1. Economic causes Wages Bonus DA Conditions of work and employment Working Hours Leave and holidays with pay Unjust dismissals or retrenchments.

2. Non-economic causes Recognition of trade unions Victimization of workers Ill-treatment by supervisory staff Sympathetic strikes Political causes

SERVICE RULES

1

The Industrial Employment (Standing Orders) act, 1946 defines commonly acceptable behavior and discipline standards

2

Certified standing orders provide further customization of requirements

3

It gives fair and firm method of disciplinary actions

4

It helps in maintaining industrial peace and continued productivity

GRIEVANCEREDRESSAL MECHANISM

Demand or Dispute-It should be heard timely and redressed or feedback should be given.

It rationalizes the aspiration/expectation of employees Formal settlement of demands/disputes lead to

industrial peace and harmony. It largely governs expected values, policies and

understandings. It smoothens another cases of business and/or

industrial operations. It binds an employer-employee and also reduces

possibility of disputes. For example, when an employee engages in

undesirable behavior, employers must act to correct that behavior. Disciplinary action is designed to prevent or improve poor performance or deal with inappropriate behavior.

IMPACT OF LAWS ON IR Non-compliance under labour laws not only deprives employees from

prescribed wages and benefits but also governs relationship between employer and employee.

In majority of disputes “wages and benefits” are the cause of discontent Any changes in employment conditions without formal communication

to employees also leads to IR situations and therefore section 9A (Notice of Change) has significant importance in keeping harmonious Industrial Relations.

Improper management of disciplinary actions also leave concerned employee aggrieved and such matters ultimately lead to either litigation or agitation by employee(s).

Lack of health, welfare and safety, compliance under Factories Act or non-coverage of employees under PF and ESI also has legal implication to employer and also many a times leads to IR situation.

INDUSTRIAL RELATIONS HUMAN RESOURCE KE NAZARIYEN SE

BY: MADHURI DUHLANI

SHWETA DAVE

HR ASPECT OF IR

RECRUITMENT AND SELECTION

Psychological background

Gender diversity and social diversity

Demographic diversity

TRAINING AND DEVELOPMENT

Skill development – multi skilling

Behavioural coaching

Team building Motivational training

COMPENSATION MANAGEMENT AND BENEFITS

Clear and simple policies Adequate compensation to

meet market requirements and law

Timely payment of wages / compensation and extension of benefits

PERFORMANCE MANAGEMENT

Objectivity , transparency Clearly defined expectations Reasonability in approach and

good feedback management

EMPLOYEE ENGAGEMENT

Engagement to nourish Socio – cultural ties to align them

with the organization Engage them to develop and

showcase innovation as talent Stops wasteful efforts and makes it

more productive , enriched and meaningful .

THUS…. The basic HR functions…..from recruitment to

relieving…all stages of employee life cycle management are very critical in terms of industrial relations

Any wrong decision or policy at any stage may give birth to individual or collective dispute and may result into an IR situation

Employee development and engagement are very effective tools for positive industrial relation

BY:DIVYA CHAUHAN

RUCHI SHARMA

DEVELOPMENTAL ASPECT OF IR

PROBLEMS DUE TO UNDERDEVELOPMENT OF EMPLOYEES

Joblessness; Making business process simpler and smoother; and One way mindset, that demands can be achieved only

through compensation.

NECESSITY TO DEVELOP EMPLOYEES

Multi-skill; Technological Upgradation; Workers grow in terms of competency not only

compensation; and Less demands equals to less disputes.

TOOL-KIT FOR DEVELOPING

When There Is Mutual Understanding, Support Concern And Need Every Thing Will Be In Sync.

HUL : BRINGING IN THE BEST ER Motto: With the changing context of business and volatile

economy, there is a need for better-equipped blue-collar workforce who are clearly aligned with business goals

Building Professional Skills

‘SPARKLE’ for blue-collar employees

SiO (Stepping into One)

Skill Upgradation for Non-Technical Cadre

BUILDING PROFESSIONAL SKILLS Functional Skill building with focus on Supply Chain Capability

for shop floor employees FMCG Industry- need for cost optimization Equipped blue-collar workforce aligned to business

‘SPARKLE’ Standardized training & PMS Skill development Online appraisal across 30 locations ~10,000 shop floor

employees Intention to identify Hi-Pots Global IT Tool to manage: Capability, Talent & Engagement

STEPPING INTO ONE Identify, motivate & prepare Hi-Pots (shop-floor) for next

role in Officer cadre- WL 1 Career growth, strengthening diverse talent pipeline Status: 76 promoted to WL 1 from a talent pool of 148

Skill Upgradation for Non-Technical Cadre Frontline Leadership Development Program

(a) building capability in Officers in factories(b) Leadership essentials(c) Effective Trainer(d) Job Fundamentals for a front line leader

HINDALCO’S EASY COMMUNICATION INITIATIVE

ER Motto:  We focus a lot on multi-skilling and skill development of employees to ensure that workmen and employees get regular training to perform better

Skilling Inflexible workforce-obsolete concept. Long Term Settlements with Unions are examples of multi-

skilling and flexibility in operations. Communication

Forum : developments of the company and respective divisions. Overall performance of the factory and the company is shared with the shop-floor employees

MANAGEMENT TRAINING AND GRIEVANCE REDRESSAL

Training Managers- handling grievances, dealing with workmen & engagement activities

Forming teams for productive discussions -hone skills in problem solving. State level and National level skill and quality contests

Technical and Soft Skills training

Conducting programs for Union leaders: employ external training institutes and expert trainers to brief them about labor relations

MAHINDRA: GROOMING ITS EMPLOYEES

ER Motto: To keep large companies running, with a high number of employees, involvement of the workmen in decision making is necessary

Rise i4 Ideation Program PQDSM (P-Productivity, Q-Quality, D-Delivery, S-

Safety and M-Moral). Brainstorm for better productivity, reduce cost, increase safety and sustainable operations.

Visible projection of the participants serves as a great recognition platform

RAYCHEM:TRAINING IN PROCESS

ER Motto: We do not have any union, any contract workmen, or any employee relations problems at the company. Our Self Managed Teams are doing well

Concept of SMTs ( Self Managed Teams) Rigorous recruitment process. 10+2 with Physics,

Chemistry and Mathematics 1 year of OJT, then a diploma in Engineering with tie-

ups with local colleges. This is a 4.5 years course with full day classes on Saturdays and Sundays.

SMTs (Cont’d…) Complete care of SMTs. Work-life balance, next

to the plant campus Helping the industry and the country in skill

development Employment and employability go hand-in-hand It is therefore, not a job, but a shaping of the

career.

THUS… Developmental initiatives have positive and preventive impact on

industrial relations. Multi-skilling and Behavioral coaching of workers give them positive

orientation and growth opportunities to assume higher and enriched role in organization…Which to an extent fulfills their aspirations.

The Training on Man management skills is very critical and important for all frontline supervisors in an industry because in majority cases disputes are generated from shop floor issues…If this supervisors are good man managers than such organizations will always have cohesive relations.

Awareness and training always yields into better acceptance and appreciation of company’s policies and procedure by employees. It develops rational mindset among them.

BY:SOHAM PENDSEURMIL PARMAR

ER ASPECT OF IR

SUPERVISOR-SUBORDINATE RELATIONS

Developing the Front line Supervisor is very criticalIt is very critical to coach front line supervisors as they would represent from both side of the company as an employee & employer side both. Psychological, Behavioral & Functional Coaching of supervisors is

critical.Behavior of supervisors also plays important role in the management of the IR issues. this would definitely affect the psychological behavior of the workers. & which would lead to misconduct or dispute. Every leader at operational level must be trained for effective man

management skills.A leader is one who gives direction to his workers. but if the direction is not provided than his staff would get deviated from the task given. So leader should be such who gives constant feedback to his people . So proper training for the leader to manage his people should be counted as very important for developing leader’s man management skills.

IR IS EVERYONE’S ROLE HR/IR is Omnipresent in each functional role.

every function consists of role of HR/IR. as it is believed that if HR is done in its best possible way than there is no rise of IR issues.e.g. in case that if there is proper performance management system and proper rewards are given which is a function of HR than there is no rise of IR issues. Similarly, at home our mothers are said as the best managers so in that case also if the mother has 2 sons & if she gives 100rs more to elder one and doesn’t gives to younger one than this might create an IR issue but since she is able to make the younger son understand the reason to give more money to elder one there is no rise of any IR issues. So this simple example only proves that where ever there is HR there is the presence of IR .but since the HR preforms well than there is no IR scenarios.

DEVELOPING IR SKILLS IN NON-IR FUNCTIONS

Employer should train his staff with behavioral training which would teach them to treat their workers. With this they would also build up a relationship with their working staff as a team building process and while giving training sessions it would also make a link between the other cross functional teams.

For e.g. In HR Induction & Training sessions are treated as a soul for any new joinee as in this they are taught about the work to be done by them this also makes a good coordination between the team & also the supervisor. Similarly the workers should also get some type of training to get awareness about their work this would definitely improve their working ability & also makes them feel as important as the management.

This would also build a good team & would also interlink the various function of productions done in the organization. Like in an industry they have a chain of raw material – Manufacturing – Packing – Dispatch . So these are the different teams which are dependent on each other which would lead to conflict but if trained properly it would make huge profits.

MANAGEMENT SKILLS Man Management should be critical skill for all management function .In HR it is Believed that managing the man is the most critical purpose of any Human Resource manager. So firstly every manager should be trained / Coached how to manage his workmen & than only he can survive in the Organization with cordial relations with his workmen. For example, in an Industry every managers plays the role of a director in the film It is given 50% weightage in promotions of some of the organizations

because they primarily believe that every leader should be first good man manager & performance can not be achieved by abusing and exploiting employees but sustainable growth can be achieved only through encouragement for performance.

It is a fact that to get respect form some one we should also provide respect to others. Similarly is the case with workers . They are also treated as slaves but in the real scenario with out them there is no organization which can be a successful one so to encourage them for perform their best the manager should also be make a very peaceful relations with them so that they hear you and vis-a-versa.

Cont’d... Target achievement must have support of good man management

skills.Every target can be achieved in many ways. Like as said by Guru Chanakya. To get the work done by others can be done through – Saam , Daam , Dand, Bhed.But by using these tool of Chanakya Neeti their might come the Problem of IR issues. So for an IR manager it is very tough task to achieve target with maintaining the relations. So it is very important for an IR manager to develop in him the man management skill to achieve his future goals. A good engineer also has to be a good man manager when he leads the

team.Here, we specifically pointed to engineers as we can see most of the workmen have a problems with their supervisors who are the engineers from various big & re-nouned institutions in which they get lots of knowledge but their might be ego clashes with their supervisors due to many reasons. Like for e.g.. In a plant there is Recruitment of a young engineer form BIT’s Pilani he is very talented & has good theoretical Knowledge & he is the supervisor of 50 Blue collar employees who are working in the plant form last 15 years and are fully aware about the machines working & its single part . So here, if any order are given by the supervisor regarding the quality or the production the workers would not accept the decision so in this case if engineers are with good management skills they would easily handle such situation & their would be no question to go to IR Manager

THUS… Employee relations predominantly decides the type of

industrial relations…whether positive or negative. In process driven and technology driven HR initiatives we as

HR/IR managers sometimes lose focus on employee relations and do not nurture relationships which has got many side effects.

Relationship with mutual respect, recognition and with content of care and concern has miraculous impact on industrial relations.

A positive employee relation prevails upon money illusion. e.g.… PSUs have lower attrition compared to private sector industries. As they give lots of benefits after retirement which is not provided by the Private Organization.

INTERESTING RELATIONS

INTIMATE RELATIONS

GOOD INDUSTRIAL RELATIONS