Posts Tagged: "Industrial Relations Management"

Introduction

Labor administration is not simply the responsibility of the department of labor. Many international agencies and Government departments such as chambers of commerce, factory and mines inspectorate, social insurance directorate, and department of human resource development and education are involved in it. In some countries, the organizations of employers and workers are also involved in the administration of labor matters. But it is primarily the responsibility of the department of labor of lay down, develop and apply sound labor policies, coordinate various recommendations received from various departments which have a bearing on labor affairs. Formulation of policy decision are based on consultation with other interests (particularly of Employers and workers organizations) and of research and field investigation. Most of the labor policy proposals may emanate from the minister of labor himself or from his department. The department of labor is the body which receives most such proposals and initiates the preparatory process. In some cases, labor courts, arbitration bodies and different adhoc commissions can be regarded as forming part of the labor administration machinery, though they are usually outside of the department of labor.…

Arbitration is the means of securing a definite judgment or award for any controversial issue by referring it to a third party. It may imply the existence of an authority set apart to adjudicate on industrial disputes under recognized conditions. Arbitration is by mutual consent of the parties. When the Government decides to refer a case to a Labor Court or Industrial Tribunal, it is called adjudication. Thus, compulsory arbitration is referred to as adjudication.

Arbitration involves the exercise of an authority to bring about an agreement or to help the process of settlement by adjudicating on industrial disputes. The arbitrator has powers to probe and in the process becomes acquainted with the facts of the industrial situation.

Arbitration in industry shares several common features with conciliation and mediation. Just like conciliation and mediation, there is also intervention of third party. It can either be voluntary or compulsory like conciliation and mediation. The note of distinction between arbitration and conciliation is that in the former the decision is finding on the parties, while in the case of later the parties may or may not accept the decision.…

Trade unions have a wide range of economic and non-economic goals. All goals of them can not be won in one instance. All goals are in conflict with each other since employers are willing to make only limited number of concessions at any particular bargaining session. Therefore, unions have to determine priorities, are five factors which affect the priority of collective bargaining goals.

1. Economic conditions relevant to the bargaining relationship
2. Precedent of recent major agreements,
3. Inter-union rivalry,
4. Influence of international situation,
5. Intra-union influence.

The relative importance of these factors varies from one bargaining situation to another.

1. Economic Conditions

The cost of living is used by unions as an argument for higher wages during periods of rising prices. Although unions generally give more attention to money wages than real wages, a decline in real wages, resulting from cost of living, is always used as a potent argument for a wage increase, partly because it wins public support. But unions do not use this argument when prices are falling.…

In approaching collective bargaining, a trade union has series of goals, some economic and some non-economic, not all of which can be won from the employer at one time. Further more, a number of the goals are in conflict with each other. Therefore, trade union decides to give priority to these goals, and for giving priority union may classify the goals. There are many ways of classifying the goals, trade union seek to achieve through collective bargaining. The two categories used here are economic and non- economic, they may also be classified according to the members as individuals opposed to the unions as an institution, according to leader versus rank and file, or according to intra-union interest groups, such as the young against the old or one group of skill against another. It follows, then, that the priority ranking of the demands by the union represents a compromise between the different pressures within the union. The compromise must, of course take into account the prevailing economic environment.…

Collective bargaining is a technique of social change, some-times performing its function smoothly and at other times threatening to blow up. The performance of its function can be viewed under the following three headings.

1. Collective bargaining acts as a technique of long-run social change, bringing rearrangements in power hierarchy of competing groups.
2. Collective bargaining serves as peace treaty between two parties in continual conflict.
3. Collective bargaining establishes a system of industrial jurisprudence, defining the rights and duties of the conflicting parties.

1. Long Term Social Change :

Collective bargaining, in its broader aspects, is not confined solely to economic relations between employers and employees. Selig Perlman has defined it as a “technique whereby an inferior social class or group carries on a never slacking pressure for a bigger share in social sovereignty as well as for more welfare, security, and liberty for its individual member. Collective bargaining manifests itself equally in politics, legislation, court litigation, government administration, religion education and propaganda.…

‘Grievance‘ implies dissatisfaction, or distress, or suffering or grief caused unnecessarily or illegally. In labor-management relations it is a complaint or representation made in writing as regard to a company related matter arising from employment or service conditions, or from conditions involving unfair treatment by the employers, or from violation of any agreement or standing instructions. Grievance is defined as real or imaginary feeling of personal injustice that an employee has concerning his employment relation.

Prompt redressal of grievances is a must for creating good labor-management relations and promoting efficiency at the plant level. Grievances must not be allowed to accumulate because grievances breed grievances. Piling up of grievances may create a sense of frustration, disloyalty and non-cooperation among workers who may lose interest in work and thus may affect the quality and quantity of out put. This may also lead to indiscipline taking the form of increased absenteeism, go slow, work to rule, demonstrations, gherao, violence and strikes.…