Unit 6

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Industrial relations

• Industrial relations mean • Scope/Importance of


relationships that emerge Industrial Relations
out of day-to-day working • Development of healthy
and association of labor labor management
and management. relations.
Industrial relations are • Maintenance of
characterized of both Industrial peace.
conflict and cooperation.
• Development of
• Three members of Industrial democracy.
Industrial relations
• Discouraging the unfair
• Management practices of management
+Labor/employee+
Government
Collective Bargaining
• The term collective bargaining was first used in
1891by Beatrice webb. founder of industrial
relations in Britain
• It is basically a method of negotiating the
employment conditions between the employer
and employees.
• (According to Flippo) Collective bargaining is a
process in which the representatives of a labor
organization and the representatives of business
organization meet and attempt to negotiate a
contract or agreement which specifies the nature
of employee-employer union relationship.
Collective Bargaining
Collective Bargaining process/steps
• 1.Preparation:
• 2.Discussion
• 3.Proposal
• 4. Bargaining
• 5. Final Agreement
Collective Bargaining process/steps
• The collective bargaining process involves five core steps:
• Preparation – Choosing a negotiation team and representatives of
both the union and employer. Both parties should be skilled in
negotiation and labor laws, and both examine available
information to determine whether they have a strong standing for
negotiation.
• Discussion – Both parties meet to set ground rules for the
collective bargaining negotiation process.
• Proposal – Both representatives make opening statements,
outlining options and possible solutions to the issue at hand.
• Bargaining – Following proposals, the parties discuss potential
compromises, bargaining to create an agreement that is
acceptable to both parties. This becomes a “draft” agreement,
which is not legally binding, but a stepping stone to coming to a
final collective bargaining agreement.
• Final Agreement – Once an agreement is made between the
parties, it must be put in writing, signed by the parties, and put
into effect.
GRIEVANCE PROCEDURE IN INDIAN
INDUSTRY
• Grievance is a complaint by an employee against the
employer. The draft Model Grievance handling procedure
was accepted by the labour conference in 1958

• Grievance handling process is a grievance redressal


procedure is the formal system for dealing with employee
grievances.

• It involves several steps through which an affected


employee can take his grievance to successively higher
levels of management for redressal.
• its controlling tools for large organisation to keep check the
health of the organisation
Model GRIEVANCE PROCEDURE IN INDIAN
INDUSTRY(suggested by National commission on labor
Model GRIEVANCE PROCEDURE IN INDIAN INDUSTRY(suggested
by National commission on labour

• 1:Distressed labour will verbally communicate to foreman.

• 2. Workman will approach to supervisor if he is not satisfied


by redressal of foreman.

• 3.Within 48 hr supervisor must provide reply. If supervisor


is unable to redress worker will go follow next step.

• 4.worker will contact to HOD(Head of the department


either alone or representative of his department. He has to
respond within 3 days. If worker doesn’t get the response
or not satisfied about redressal worker will approach to
next step.
Model GRIEVANCE PROCEDURE IN INDIAN INDUSTRY(suggested
by National commission on labour

• 5.Worker will approach to Grievance committee


(composed of members of employee and
employer).Committee has to make
recommendation and forward it to the manager
within seven days .

• 6. management shall implement the agreed


decisions if any decided by committee.

• 7. the worker is informed about the decision


within three days by the manager
Model GRIEVANCE PROCEDURE IN INDIAN INDUSTRY(suggested
by National commission on labour

• 8. When worker is not satisfied he can make an


appeal against the manager’s decision he can
make appeal against the managers decision which
has to be again decided within a week.

• 9. If worker is not satisfied with the decision both


the management and union can take grievance to
voluntary arbitration/Labour court.
Settlement Machinery of Industrial Conflicts.

• According to the Industrial Disputes Act, 1947,


“Industrial dispute means any dispute or
difference between employers and employees or
between employers and workmen or between
workmen and workmen, which is connected with
the employment or non-employment of the terms
of employment or with the conditions of work of
any person”.
Settlement Machinery of Industrial Conflicts.(Non-statutory)

• Works committee: According to industrial


dispute act,1947, where there are 100 or
more(during previous year) than employee in the
company ,it is compulsory to have works
committee. It has members from both the sides
management and employee.. These aim at
maintaining harmonious relations at workplace
and sort out the differences existing between
both the parties.
Settlement Machinery of Industrial Conflicts. (Non-statutory)

• Workers participation in Management:


-Focuses on involvement of workers by the
management in the decision-making process. It helps
in promoting industrial democracy and is based on
human relations approach to management.
• Collective Bargaining:ILO(international labor
organization) convention No.154 defines collective
bargaining as all negotiations which take place
between an employer ,a group of employers or one
or more employers organisations on the one hand
and one or more workers organisations, on the
other. In this workers and management collectively
bargain for their interest and benefits.
Settlement Machinery of Industrial Conflicts. (statutory )

• When a dispute has arisen i.e., it could not be


prevented on voluntary basis, the Industrial
Disputes Act 1947 provides several provisions for
settling the disputes.
Settlement Machinery of Industrial Conflicts. (statutory )

Code of Discipline:
It was introduced in the year 1958 and is applicable
to both public and private sector enterprises. This
lays down the guidelines for
workers/employees/workmen, unions and
employers. It aims to prevent dispute though
negotiations without the interference of an outside
agency. There is no legal liability or punishment and
it involves only moral sanctions. There is no legal
liabilities or punishment and it involves only moral
sanctions.
Settlement Machinery of Industrial Conflicts. (statutory )

• Conciliation:
• It is a process in which a third party is roped in to solve the
dispute between the employer and employees. The third
party helps in reconciling the differences and arriving at a
mutual agreement for an amicable settlement of agreed
solution. The central and state governments have the power
to appoint conciliation officer or a board of conciliation
under industrial disputes act,1947.
• The board of conciliation consists of equal representatives
from the employers and employees end.
• The third party is a facilitator and cannot force the involved
parties to accept the decision in order to arrive at a
settlement. During the process of conciliation ,the involved
parties cannot indulge in strikes and lockouts.
Settlement Machinery of Industrial Conflicts. (statutory )

• Court of Inquiry:
The government has a power to set up a court of
inquiry in case the matter is not resolved under the
conciliation method. The body is a fact finding body
that has to submit its report to the government
within six months. The aim of setting up a court of
inquiry is to promote the settlement of an industrial
dispute.
Settlement Machinery of Industrial Conflicts. (statutory )

• Arbitration:
• Under the process, a third party is involved to
settle down the disputes between the aggrieved
parties. In this case ,the involved parties represent
their respective situations before the arbitrator or
group of arbitrators. Based on the information
provided to the arbitrator(S), and his/their
investigation, he/they give(S) a judgement, which
is binding on the both the parties.
• Voluntary arbitration: both the parties appoint a
neutral arbitrator, who provides verdict on the
same. Verdict is not a legal binding.
Settlement Machinery of Industrial Conflicts. (statutory )

• Adjudication:
• This is the ultimate or last step resort for the
dispute resolution. In case, the conciliation
process fails, the government appoints a third
party to resolve the matter. Under this, the matter
may be referred to the labour courts, Industrial
tribunal and national tribunal. It is a three-tier
system for the resolution of Industrial disputes.
Settlement Machinery of Industrial Conflicts. (statutory )

• Labour Court
• For the adjudication of industrial disputes relating to the
specified matters in the second schedule of the act, the
appropriate government may by notification constitute one
or more labour court. Powers of labour courts are:
• Discharge or grant of relief to workmen who are wrongfully
employed or dismissed.
• To determine the illegality of a strike or deadlocks.
• Customary concession or privileges are withdrawn by this
court.
• Within the specified period the order referring to the
dispute, its report is to be submitted to the appropriate
government, whenever an industrial dispute adjudicating by
the labour court.
• .
Settlement Machinery of Industrial Conflicts. (statutory )

• National Tribunal
• The central government may, by notification in the
official Gazette, constitute one or more National
Tribunals for the adjudication of Industrial Disputes in:
• National matters.
• Matters in which industries are more than one state, or
are affected by the outcome of the dispute.
• The duty of the National Tribunal to hold its
proceedings fast and submit its report to the central
government within the specified time given.
• There are 14 tribunals in India
Settlement Machinery of Industrial Conflicts. (statutory )
• Industrial tribunal
• For the adjudication of the industrial disputes, the appropriate
government may, by notification constitute one or more industrial
tribunals. Matters relating to the following are:
• Retrenchment of labor.
• Compensatory and other allowances and rules of the disciple in
the workplace.
• If the company is in profit, then matter related to bonus and profit
sharing.
• Work manual such as hours of working and interval for rest.
• Wages and provident fund of workmen.
• The duty of the Industrial Tribunal to hold its proceedings fast and
submit its report to the state government within the specified
time given(2mths or may be fixed by respective government).
• https://cgit.labour.gov.in/

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