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 Continue reading
Industrial Relations Management
What is Arbitration?
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 Continue reading
Collective Bargaining Goals of Trade Unions
Trade unions have a wide range of economic and non-economic goals. All goals of them can not be won in one instance. All collective bargaining goals of trade unions  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. Economic conditions relevant to the bargaining relationship Precedent of recent major agreements, Inter-union rivalry, Influence of international situation, 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 trade 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 Continue reading
Trade Unions and Collective Bargaining
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 Continue reading
Functions of Collective Bargaining
Good relations between the employer and employees are essential for the success of  an industry. In order to  maintain good industrial relations, it is necessary that industrial disputes  are settled quickly and amicably. One of the  efficient means of  resolving industrial disputes and deciding the employment conditions is collective bargaining. It is a process  in which the representatives of the  employer and of the employees meet and attempt to  negotiate a contract governing the  employer-employee union relationship. Collective bargaining is a technique of social change, some-times performing its function smoothly and at other times threatening to blow up. Arthur D Butler’s classification of functions of collective bargaining can be viewed under the following three headings. Collective bargaining acts as a technique of long-run social change, bringing rearrangements in power hierarchy of competing groups. Collective bargaining serves as peace treaty between two parties in continual conflict. Collective bargaining establishes a system Continue reading
Employee Grievances – Handling Employee Complaints and Grievances Effectively
An employee grievance means any discontentment or dissatisfaction in an employee arising out of anything related to the enterprise where he is working. It may not be expressed and even may not be valid. It arises when an employee feels that something has happened or is going to happen which is unfair, unjust or inequitable. Thus, a grievance represents a situation in which an employee feels that something unfavorable to him has happened or is going to happen. In an industrial enterprise, an employee may have grievance because of long hours of work, non-fulfillment of terms of service by the management, unfair treatment in promotion, poor working facilities, etc According to Michael Jucius, “A grievance can be any discontent or dissatisfaction, whether expressed or not, whether valid or not, and arising out of anything connected with the company that an employee thinks, believes, or even feels as unfair, unjust, or Continue reading