HRM

Employee Relations

- Dr Aishwarya N
 Industrial Relations
• Is the relationship which exists between employers and employees
and the role of regulatory mechanism in resolving any industrial
disputes.
• It is most important that this relationship is good.

• Approaches to IR:
• Unitary approach
• Pluralistic approach
• Marxist approach
• Human relations approach
Good Industrial Relations Lead To:
• Discussions taking place on an ongoing basis
• Disputes over wages, working conditions and promotion can be
settled without a strike
• Collective bargaining
• Role of government, unions and management
• Machinery for resolution of industrial disputes
• Individual grievance and disciplinary policy
• Labour legislation
• Industrial relations training
 Poor Industrial Relations
• Disputes and strikes

• Loss of pay for employees

• Loss of profits for employers

• Unhappy workers looking for new jobs

Main Parties Engaged in ER…

Individual HR Managers
Employees

Employer’s
Trade Union Employer – Employee Association
Representative Relations
Representative

Courts and tribunals

Government
Employees
• Major stakeholders
• 30 million in organized and 365.1 million in unorganized
• Organized sector – paid and treated well, covered under protective
legislations
• Pre-form days – they had upper stance to dictate terms to other
stakeholders
 Trade Unions
• An organisation formed by workers to protect the interests of their
members.
• Protect the rights of their members and maximum degree of security
to enjoy these terms and conditions.
• Negotiate wages and salaries
• Negotiate work conditions
• Represent members at National Pay Agreements
Benefits of joining a Trade union
• Higher standard of living for members- better wages and conditions
• Greater job security if union is powerful
• Increased bargaining power, one voice for all worker
• Protection against discrimination or unfair dismissal
Employers
• Directly involved in any dispute
• Has the right to hire and fire any worker, notwithstanding union
restrictions.
• Ability to control the economic destiny of the workers.
• Has the right to relocate, merge, close, takeover or sell a particular
plant – these actions affect worker’s interests
• Technological change - displace labour
• Deploy several tactics to break a strike – set one faction against
another, gain loyalty of the employees
Employer’s Associations
• Operate at local, industry and all India levels
• The Confederation of Indian Industries (CII) – national level powerful
body in promoting the legitimate interests of owners of industries.
• ASSOCHAM, FICCI, AIMO, WASME, FSSAI, NASSCOM, AIOE, FIEO
• Represent employers in collective bargaining
• Developing machinery for the avoidance of disputes
• Providing information on employee relations and to give advice
• Representing members on national issues
Role of government
• Until 19th century, laissez faire policy
• Regulates the relationship between management and labour
• Set up wage boards, labour courts, tribunals and enact laws

• Role of employees, employers and government – keep changing in

significance and relevance.
Causes for disputes
• Wage demands
• Union recognition
• Temp and contract labour – Contract labour Act, 1970
• Technology – Automation, Standing orders
• Trade unions
• Unfair labour practices
• Political interference
• Multiplicity of labour laws
Settlement of disputes
• Collective bargaining
• Code of discipline
• Conciliation
• Grievance procedure
• Arbitration
• Adjudication
Collective bargaining
• Most effective method
• Representatives of labour unions meet management representatives
to determine employees wages and benefits, to create or to revise
rules, and to resolve disputes or violations of the labour contract
• Bargaining agent
Code of Discipline
• Defines duties and responsibilities of employers and workers
• To ensure both the parties recognize each other’s rights and
obligations
• To promote constructive co-operation between the parties concerned
at all levels
Grievance procedure
• Employee’s dissatisfaction or feeling of personal injustice.
• When an employee believes that the labour agreement has been
violated, he or she files a grievance.
• Grievance needs to be resolved according to a set procedure.
Arbitration
• A neutral party studies the bargaining situation, listens to both the parties
and gathers information, and them makes recommendations that are
binding on the parties.
• It is expensive, needs to be shared by the labour and the management
• Judgement becomes arbitrary if there is a mistake in selecting the
arbitrator
• Relatively better when compared to courts or tribunals. Delays are cut
down and settlements are speeded up.
• Too much arbitration is not a sign of healthy IR.
• Decision in 30-60 days with written opinion
Indiankannon.org
• ONGC vs Offshore Enterprises, 1993
• Oriental Insurance Company Limited v. M/s Narbheram Power and Steel
Pvt. Ltd., 2018
• Cheran Properties Limited v. Kasturi and Sons Limited and Ors., 2018
• Kerala State Electricity Board and Anr. v. Kurien E. Kathilal- March, 2018
• Guwahati Municipal Corporation vs M/S International Construction ,
2014
• M/S.Tata Finance Limited vs Poongodi on 6 June, 2018
• Nirma Ltd. vs Lurgi Energie Und Entsorgung, 2002
• Alternative name for third party is mediators
• Conciliator has no power to force a settlement , but can work with the
parties separately to determine their respective positions, explain a
position more fully to the opposition, point out bases for agreement,
helps in search of solutions and generally facilitates the reach of an
agreement.
• Communications catalyst
• Agreement to be reached by 14 days
• Act prohibits a strike or lockout when the conciliation proceedings are
in progress
• Gujrat Ambuja Cement Pvt. Ltd. vs U.B. Gadhe on 24 October, 2005
• Mico Employees' Association vs State Of Karnataka on 29 March, 1982
• Britannia Biscuit Co. Ltd., ... vs Asst. Commissioner Of Labour ... on 8
December, 1983
• Tata Iron & Steel Co.Ltd. vs State Of Jharkhand & Ors. on 19 March,
2009
• Workmen Of Oswal Weaving Factory vs State Of Punjab 
• Hindustan Zinc Workers Union And ... vs Management Of Agnigundala
Adjudication
• Mandatory settlement of an industrial dispute by a labour court or
tribunal.
• Based on Failure of conciliation proceedings; conciliation officer
recommends for adjudication
Once a dispute is referred for adjudication, the verdict of the labour
court or tribunal is binding on both the parties.
Most significant in solving disputes
Heavy delay
Different Perspectives of
Employee Relations …
Manager’s perspective …
• Creating and maintaining employee motivation

• Obtaining commitment from the workforce

• Establishing mutually beneficial channels of

communication

• Achieving high level of efficiency

• Negotiating terms and conditions of
employment

• Sharing decision making with employees

• Engaging in power struggle with trade unions

Trade union’s perspective …
Collective bargaining about terms and conditions of
employment

Representing individuals in conflict with management

Improving abilities of employees to influence events in

the workplace

Regulating relations with trade unions.

Individual employee’s perspective …

• Improve their conditions of employment

• Voice and grievances

• Exchange views and ideas of management

• Share in decision making

Third Parties' perspective …

• Creating and maintaining harmony at work

• Creating a framework of rules for fair conduct in

relationships

• Establishing a peace making arrangements

• Achieving a prosperous society with justice

Trade Unions : in terminal decline?
• A wide range of factors has contributed to a decline in trade union
membership, global competitive pressures and employee attitudes ;
• In particular, younger people are unlikely to have ever belonged to a trade
union and it is suggested that many of them see no point in trade unions
• Ethos of hotel and catering – for example the suggested conservatism and
individualism of the workforce and reliance on informal rewards tends to
create a workplace culture which is antipathetic to trade unions.
• The self-reliance that this individualism tends to breed means that
employees prefer to represent themselves in negotiating with management.
• The existence of a ‘family culture’ in many small and medium-sized
enterprises (SMEs) is also considered a significant barrier to organizing.

• Structure of the workforce – the workforce has high numbers of young

workers, students, part-timers, women, employees from ethnic minorities
and migrant workers, all groups who are not traditionally associated with
trade union membership. This situation is also exacerbated by high labour
turnover.
• Employer and management attitudes – tourism and hospitality
industry is characterized by a unitary view of the employment
relationship that sees no role for trade unions. Consequently
employers and managers are hostile towards trade unions and will
often pursue an active non-union policy.

• Role of trade unions – notwithstanding recent attempts by the

Transport and General Workers Union (T&G) to organize parts of the
hospitality sector it is generally acknowledged that for too long trade
unions failed to develop effective strategies to organize the sector.
Airline industry has always had a stronger trade union presence when

compared to the hotel and catering sub-sector.