Preventive Machinery of Industrial Disputes

Prevention is always better than cure. Preventive steps should, therefore, to be taken so that industrial disputes do not occur. The following measures can be taken to prevent disputes in industry. A. Code of conduct Each individual organism its code or may follow the code of discipline in industry formulated by the govt: and made applicable to industry and workers from June 1st 1958. It aims at preventing disputes through negotiations without the interference of an outside agency.

Objectives
To avoid work stoppages To maintain discipline in industry Eliminate all forms of coercion and violence in IR Secure settlement of disputes and grievances by negotiation, conciliation and arbitration. Promote constructive co-operation between the parties concerned at all levels. Improve motivation & communication Improve productivity and compensation of employees.

A. Workers Participation in Management It is a method whereby the workers are allowed to be consulted and to have a say in the management of the unit. WPM is essentially the step promoting Industrial Democracy. It is the modern trend in the industrial world both developed and developing countries .WPM means sharing of profit and pain. Applied to industry the concept of participation means sharing the decision making power by the ranks of an industrial organization through their proper representatives at all appropriate levels of management, in the entire range of managerial actions.

Dr. V.G. Mehtras The important schemes of workers participation are: Joint Consultation Works committee Joint management council Shop council Joint council

1. Joint Consultation
It is a process where by employer consults the workers either directly or through their representatives and seeks their opinion on various issues while retaining to himself the right of taking final decisions. it is carried out through joint consultation committees consisting the representatives of both the employer and workers. 2. Work Committees Every industrial undertaking employing 100 or more workers is under an obligation to set up a works committee consisting equal number of representatives of employer and employees. The main purpose of such committees is to promote industrial relations. committees are concerned with: Administration of welfare & fine funds. Educational and recreational activities. Safety and accident prevention Occupational diseases and protective equipment. Conditions of work such as ventilation, lightening, temperature & sanitation including latrines and urinals. Amenities such as drinking water canteen, dining rooms, medical & health services. According to Indian Labour Conference work

The following items are excluded from the preview of the work committees. 1. Wages and allowances 2. Profit sharing and bonus 3. Programs of planning and development 4. Retirement benefits 5. PF and gratuity 6. Housing and transport schemes 7. Incentive schemes 8. Retirement and layoff LAYOFF Inability of the employer in certain conditions. it is a measure to cope up with the temporary inability of an employee to offer employment to a workman to keep the establishment as a going concern. 3. Joint Management Council Just to make a start in labour participation in management, the govt: suggested in its Industrial Resolution 1956 to set up joint management councils. It consists of equal numbers of workers and employers (minimum 6 & maximum 12) decisions of the JMC should be unanimous and should be implemented without any delay. JMC members should be given proper training. JMC should look after 3 main areas:1. information sharing 2. consultative 3. administrative

Representation of workers to the JMCs should be based on the nomination by the representation. Objectives Satisfy the psychological needs of workers Improve the welfare measures Increase workers efficiency Improve the relation and association between workers, managers and promoters. JMC deals with matters like: Employee welfare Apprenticeship scheme Causes of failure of JMCs: Attitude of animosity Crisis of confidence in elected representatives Limited scope of JMC Level of participation The performance of JMC is not satisfactory due to: The absence of representative unions made it difficult for the council to work smoothly. The leaders feel that the council would weaken their hold over workers Managers feel that it is very difficult to convince uneducated representatives of workers. Managers feel that with work committees and collective bargaining there is no need for this councils. 4. Shop Council Shop councils have been established in the manufacturing and mining industries employing 500 or more workers in private, public and joint sectors.

These councils assist the mgmt in achieving production targets, improving production, productivity and efficiency, eliminating wastage and in achieving optimum utilization of machinery and manpower. Features All decisions of a shop council shall be on the basis of consensus and not by the basis of voting that either party may refer the unsettled matters of the joint council for consideration. There will be shop council for each department or one council for more departments considering the number of workers employed. The number of members in the council may be decided by management in consultation with recognized unions. The total members may not generally exceed 12. A shop council once formed shall function for a period of two years. It will meet as frequently as possible at least once in a month. Each shop council shall consist of equal number of representatives of employers and employees. Every decisions of a shop council shall be implemented by the parties concerned within a period of one month, unless otherwise stated in the decision itself and compliance report shall be submitted to the council. FUNCTIONS 1. Assist management in achieving production targets. 2. Identify areas of low productivity. 3. Improve production 4. Suggest healthy, safety, welfare measures. 5. Assist in maintaining general discipline in the shop or department. 6. Physical conditions of work environment 5. Joint Councils JC are set up for the whole unit and deals with matters relating optimum production and efficiency and the fixation of productivity norms for man and machine for the as a whole. in every industrial unit employing 500 and more workers there should be a Joint Council for the whole unit.

Features Members of the council must be actually engaged in the unit. The chief executive of the unit will be the chairman of the council and vice chairman will be nominated by worker members. Term of the council will be two years. JC shall meet at once in a quarter. Decision of the council will be based on consensus and not on voting. 1. Optimum use of raw materials and quality of finished products 2. Optimum production, efficiency and function of productivity norms of man and machine as a whole. 3. Preparation of schedules of working hours and of holidays. 4. Adequate facilitates for training. 5. Rewards for valuable and creative suggestions received from workers. A. Collective Bargaining Collective bargaining refers to "a process by which employers on the one hand and representatives of the employees on the other, attempt to arrive at agreements covering the conditions under which employees will contribute and be compensated for their services Michael. J. Jucius It is the process in which the representatives of labour organizations and the representatives of business organization meet and attempt to negotiate a contract or agreement which specifies the nature of the employer and employee union relationship. EdwinFlippo

FUNCTIONS

The term collective bargaining typically refers to the negotiation, administration and interpretation of a written agreement between two or more people. OBJECTIVES Ensure the participation of Trade Unions in the industry Settle disputes relating to wages and working conditions. Protect the interests of the workers through collective action. Prevent unilateral actions on the part of employees. Conditions essential for successful collective bargaining Favorable political climate Freedom of association Willingness to give & take Problem solving attitude Availability of data Fair labour practices

PROCESS OF COLLECTIVE BARGAINING

1. Preparation for negotiation

Careful advance preparation by employers and employees are necessary for negotiation. it is of two types: a) From the management side. Prepare specific proposals for changes in the contract language. determine the general size of the economic package of the company proposes to offer Prepare statistical displays and support for use in negotiations. b) From the employee side Attitudes and desires of the employees. Financial position of the company and its ability to pay. Attitude of management towards various issues as reflected in past negotiations or inferred from negotiations in similar companies. 1. Identifying bargaining issues wage related issues supplementary economic benefits administrative issues institutional issues 2. Negotiating The negotiating phase begins with each side presenting its initial demands. Negotiation goes on for days until the final agreement is reached. The success of negotiation depends upon skills and abilities of negotiators. 3. Settlement and contract agreement Agreement can be made on a temporary basis. After an initial agreement has been made the two sides usually return to their respective constituencies to determine whether they have informally agreed upon is acceptable. in such case before the expiry of both the parties consult each

other and can terminate or renew the agreement depending upon the circumstances. 4. Ratifying the agreement The union negotiating team explains and puts the agreement to the union members for the vote. if voted agreement is formalized into a contract. it is important the contract must be clear and precise. 5. administration of the agreement Signing the agreement is not the end of the process rather it is the bargaining of the process. The agreement must be implemented according to the letter and spirit of the provisions of the agreement. Management is primarily responsible for implementing the agreement, which must be communicated to all levels. Faulty implementation or violation of any provision leads to disputes. Environment Environmental factors include: Type of bargaining structure that exists between the union and the company. Type of union- management relationship which exists D. Grievance Redresal Procedure Grievances are symptoms of conflicts in the enterprise. So they should be handled very promptly and efficiently. It is a method by which an individual or group may express a complaint to an agency or institution alleged to be violating a particular rule and without fear of reprisal. The Indian Labour Conference in 1958 evolved a code of discipline which was ratified by the national trade union and employers organizations. Under this code, both the parties voluntarily agree to maintain and create an atmosphere of mutual trust and cooperation in the factory and to settle all the disputes and grievances by mutual negotiation, conciliation and voluntarily arbitration and also avoid direct action. E. Tripartite Bodies

Various bodies composed of the representatives of employers, employees and the government has been set up for consultation and discussion on questions affecting labour. The Indian Labour conference, standing Labour commission, Wage Boards and Industrial Committees operate at the central level. At the state level, State Labour Advisory Boards have been set up. All these bodies play an important role in reaching at agreements on various labour matters. The recommendations of these bodies are advisory in nature but carry a great weight on employers, trade unions and the government. All these bodies constitute the consultative machinery for the private sector. F. Standing Orders To avoid frictions amongst employers and workmen over the terms of employment, Govt: enacted the Industrial Employment (Standing Orders) Act 1946. It refers to the rules and regulations which govern the conditions of employment of workers. It also specifies the duties and responsibilities of both the employer and employees and regulates standards of their contacts. The main objective of this act is to prevent the disputes as soon as its arises by framing model rules for maintaining discipline and better relation. This Act applies to all establishments employing 100 or more workers. Under this act, each employer has to have their standing orders certified from the certifying officer to make them effective in the establishment. Labour Commissioner or Regional Labour Commissioner or any other officer appointed for this purpose may be certifying officer under the act. G. National Arbitration Promotion Board The Truce Resolution 1962 and the code of Discipline as evolved in 1958 recognized the principle of voluntary arbitration. It was agreed that any disputes would be referred to voluntary arbitration if conciliation efforts fail. The govt: of India took note of the intension of both the industrial partners and set up the NAPB to promote voluntary arbitration to settle industrial disputes. the board

comprises of the representatives of employers and employees organizations, Public Undertaking and the central and State Governments. The Board attempts to ensure that employers and workers take greater recourse to the voluntary approach to settle industrial disputes. H. The Implementation Machinery The Implementation and Evaluation Committee has been set up at the centre: To ensure proper implementation of the Code of Conduct, the Code of Discipline, Labour laws, awards and agreements with a view to reducing at source the main cause of industrial disputes. To take preventive action by settling disputes before they assume serious proportions and deal with those that have defied settlement for a long time. To evaluate the impact of major strikes, lockouts and disputes and fix the responsibility for them. To evaluate the working and implementation of important labour legislation, awards and policy decisions in order to assess the extent to which these have produced the desired

results and to suggest the measures that may be taken to effect improvement in them.

The Central Organizations of workers and employers have set up machinery to screen cases of industrial disputes before they are taken to courts with a view to reducing litigation. As regards the cases which are already pending before the courts, the implementing machinery attempts out of court settlements by means of persuasion. I. National Arbitration Promotion Board

The Truce Resolution 1962 and the code of Discipline as evolved in 1958 recognized the principle of voluntary arbitration. It was agreed that any disputes would be referred to voluntary arbitration if conciliation efforts fail. The govt: of India took note of the intension of both the industrial partners and set up the NAPB to promote voluntary arbitration to settle industrial disputes.

SEMINAR REPORT ON INDUSTRIAL RELATIONS

Submitted To: DOMS Submitted By: SANGEETHA.S

SREE NARAYANA GURUKULAM COLLEGE OF ENGINEERING

Date of submission: 4-10-2006