-Prof Radhika Gupta

Learning objectives
The nature of IR and the need for peaceful employer

and employee relations The different approaches to industrial relations The stake of each of the parties in industrial relations A proactive strategy to industrial relations

Industrial Relations is
the

consecrated euphemism for the permanent conflict, now acute, now subdued, between capital and labour.
(Blyton & Turnbull, 1998)

Industrial Relations
the regulation of the relationship between employers and employees

Industrial Relations:
has acquired a deserved reputation for being dull
because it has too often failed to relate in any meaningful way to the reality of peoples working lives, how these were formed, how they are constrained and how they might be changed. (Blyton & Turnbull, 1998)

Industrial Relations Affects:

Economic Performance

Business Success

Employees Experience of Work

Parties to IR
Employees Employers

Employee Associations

EmployerEmployee relations

Employer associations

Government

Courts and Tribunals

Resolving Disputes
Nature of disputes: According to Industrial Disputes Act 1947, Industrial dispute" means any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person.

 Causes of disputes Wages Union Rivalry Union Rivalry Political Interference Unfair Labour Practices

Methods of settling industrial disputes

Without state intervention Collective Bargaining With Conciliation Voluntary Arbitration Without Conciliation

With state intervention

Compulsory establishment of bipartite committees

Establishment of compulsory collective bargaining

Compulsory investigation

Compulsory conciliation and mediation

Compulsory arbitration or adjudication

COLLECTIVE BARGAINING:
Essential features:
CB is a process in which the terms and conditions of

employment are determined jointly by the employer and workers The term collective represents workers side, who bargain either in combination or through their trade unions It emanates from employment relationship Main objective is the determination of terms and conditions of employment through negotiations and process of give and take. The agreement arrived at , may relate to a number of subjects of the terms of employment and working conditions or to a single issue.

 Steps involved: Presentation in a collective manner, to the employer,

their demands and grievances by the employees Discussions and the negotiations on the basis of mutual give and take for settling the grievances and fulfilling the demands Signing of a formal agreement or an informal understanding In the event of failure, a likely resort to strike or lockout.

 Importance to employees Collective bargaining develops a sense of self respect and

responsibility among the employees. It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group. Collective bargaining increases the morale and productivity of employees. It restricts managements freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged. Effective collective bargaining machinery strengthens the trade unions movement. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits.

 Importance to employers It becomes easier for the management to resolve issues

at the bargaining level rather than taking up complaints of individual workers. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. Collective bargaining plays a vital role in settling and preventing industrial disputes.

 Importance to society Collective bargaining leads to industrial peace in the

country It results in establishment of a harmonious industrial climate which supports which helps the pace of a nations efforts towards economic and social development since the obstacles to such a development can be reduced considerably. The discrimination and exploitation of workers is constantly being checked. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.

VOLUNTARY ARBITRATION:
the two contending parties, unable to compose their

differences by themselves or with the help of the mediator or conciliator, agree to submit the conflict/dispute between them to be resolved by an impartial authority, whose decision they are ready to accept. voluntarily any dispute to arbitration before it is referred for adjudication. for the parities volunteer themselves to come to a settlement through an arbitration machinery.

the parties to the dispute can and do themselves refer

This type of reference is known as a voluntary reference,

The essential element in voluntary arbitration is:

the voluntary submission of dispute to an arbitrator; the subsequent attendance of witness and

investigations; The enforcement of an award may not be necessary and binding because there is no compulsion. But generally, the acceptance of an arbitration implies the acceptance of its award-be it favorable or unfavorable; and voluntary arbitration may be specially needed for disputes arising under agreements.

COMPULSORY ESTABLISHMENT OF BIPARTITE COMMITTEES:

committees consisting of the representatives of workers and

their employer at the plant or industrial level. Settle the differences as soon as they appear Industrial Disputes Act, 1947: Compulsory formation of Works Committee in establishments with more than 100 employees. Purpose:
Giving encouragement to the parties concerned to settle the differences

to avoid direct intervention of third agency Facilitating the composition of the differences at their embryonic stages without causing work stoppages.

Reasons for failure:

Reluctance and hostility of the employer or the trade union concerned Illiteracy and ignorance of the workers Absence of leadership from rank and file.

ESTABLISHMENT OF COMPULSORY COLLECTIVE BARGAINING

State may think to force workers and employers to

enter into formal collective bargaining through their representatives Required if either or both the parties resist the establishment of collective bargaining. In India, amendment of Industrial Disputes Act, 1982: refusal to bargain in good faith, an unfair labour practice.

CONCILIATION AND MEDIATION:

Voluntary Conciliation And Mediation:
State sets up conciliation and mediation machinery

consisting of personnel trained in the art of conciliating disputes. Services of this machinery are always available to the disputants. The state provides machinery without imposing any obligation on the disputants to use it. Aim of conciliator is to break the deadlock, explain the viewpoint of one party to another, convey messages and keep the negotiations going. Parties are free to accept or reject suggestions

Compulsory conciliation and mediation:

In many countries, the state imposes an obligation on the

parties to submit their dispute to the conciliation service and makes it the duty of the latter to conciliate the dispute. State requires the parties to refrain from causing any work stoppage for the purpose of resolving the dispute. Time limit for mediators. 3 main consideration:
Conciliation will provide a cooling off period Freedom of the parties to settle their disputes even by causing work

stoppage, should not be taken away from them for a long time. If conciliation does not achieve an early break-through, it is not very likely to succeed later.

If at the end of conciliation proceeding, the dispute is not

settles, the parties are free to go in a strike or declare a lockout.

Conciliation And Mediation In India

Industrial Disputes Act, 1947 : giving the notice of the

strike or lock-out in public utility services is obligatory on the parties before they go on a strike or declare a lock-out. Copy of notice to conciliator Legal responsibility of the conciliator to seek to settle the dispute Even if it is the failure, submit the copy of the facts to the government. Prohibition of a strike or a lock-out in a public-utility service during the pendency of the dispute before the conciliation officer and seven days after the conclusion thereof.

COMPULSORY INVESTIGATION
appointment of Court of Inquiry to find out relevant

facts and issues and give them a wide publicity (pressure of public opinion) Cooling off time to the parties In India, under Sec 6, Industrial Disputes Act, 1947, both Central and State Governments have the power to constitute a Court of Inquiry for enquiry into any matter appearing to be connected with or relevant to an Industrial dispute.

COMPULSORY ARBITRATION AND ADJUDICATION

Government may decide to refer the dispute to adjudication and force the parties to abide by the award of the adjudicator and at the same time, prohibit the parties from work-stoppages.
2 forms of compulsory arbitration:
Compulsory reference but voluntary acceptance of the

award Compulsory reference and compulsory acceptance of the award.