.

INRODUCTION TO LABOUR AND INDUSTRIAL RELATIONS

Concepts of labour and industrial relation

Industrial relations is a post-industrial revolution term that replaced the expression

"master-servant" used to define the relationship between a worker and an
employer. Its origins are, as the term indicates, based on the proliferation of large-
scale industry from the mid-18th to the mid-19th century. Contemporary industrial
relations still refers to the employment relationship and the business unit that
manages the employment relations, personnel or human resources. It often includes
labor unions as parties to that relationship.

Industrial Relations versus Employee Relations

Creating a distinction between industrial relations and employee relations is a

fundamental concept in this area. Industrial relations generally refers to the laws,
duties and employer and labor union obligations in a union work environment.
Employee relations typically refers to laws, duties and employer obligations in a
nonunion work environment. Industrial relations commonly involves three parties:
the employee, employer and the union. With employee relations, just the employee
and employer are parties to the working relationship.

Employment Laws versus Labor Laws

Many HR practitioners and lawyers make the distinction between employment

laws and labor laws. Labor laws -- such as the National Labor Relations Act of
1935, the Taft-Hartley Act of 1947 and the Labor-Management Reporting and
Disclosure Act of 1959 -- are most applicable to industrial relations matters.
Employment laws distinguished from labor laws include Title VII of the Civil
Rights Act of 1964, the Age Discrimination in Employment Act of 1967 and the
Americans with Disabilities Act of 1990. Both types of laws apply to union and
nonunion work environments, but in a unionized work environment, labor laws are
often more relevant in resolving labor-management issues. Despite the distinction,
the terms "labor laws" and "employment laws" may be used interchangeably to
refer to all workplace laws and regulations.

Concerted Activity
The National Labor Relations Act protects the rights of union and nonunion
employees to engage in or refrain from concerted activity. Concerted activity refers
to employees addressing their concerns as a group -- regardless of whether they
have union representation -- rather than individually. The act protects the rights of
employees who want union representation as well as the rights of employees who
would rather handle workplace issues without union representation. The act
prohibits employers and labor unions from engaging in misconduct or coercive
tactics to influence employees to support management or organized labor.

Collective Bargaining

Collective bargaining is the process that labor unions and employers participate in
to negotiate a labor union contract. These contracts also are called collective
bargaining agreements. They are negotiated for a finite period, usually two to four
years, and intended to be renegotiated upon expiration of the multiyear term. The
employer, labor union and employees are bound by the terms and conditions of a
labor union contract, which sets out employees' wages, benefits, working
conditions and seniority-based matters.

Importance of labour and industrial relations

1. Foster Industrial Peace:

Under the mechanism of IR, both employees and managers discuss the matter and
consult each other before initiating any actions. Doubts, if any, in the minds of
either party are removed. Thus, unilateral actions that prop confusion and
misunderstanding disappear from the scene. In this way, IR helps create a peaceful
environment in the organisation. Peace, in turn, breeds prosperity.

2. Promote Industrial Democracy:

Industrial democracy means the government mandated worker participation at

various levels of the organisation with regard to decisions that affect workers. It is
mainly the joint consultations that pave the way for industrial democracy and
cement relationship between workers and management. This benefits the both. The
motivated workers give their best and maximum to the organisation, on the one
hand, and share their share of the fruits of organisational progress jointly with
management, on the other.

3. Benefit to Workers:

IR benefits workers in several ways. For example, it protects workers against

unethical practices on the part of management to exploit workers by putting them
under inhuman working conditions and niggardly wages. It also provides a
procedure to resolve workers’ grievances relating to work.

4. Benefit to Management:

IR protects the rights of managers too. As and when workers create the problem of
indiscipline, IR provides managers with a system to handle with employee
indiscipline in the organisation.

5. Improve Productivity:

Experiences indicate that good industrial relations serve as the key for increased
productivity in industrial organisations. Eicher Tractors, Alwar represents one such
case. In this plant, productivity went up from 32 per cent to 38 per cent between
1994 and 1997. This increase is attributed to the peaceful IR in the plant.

Importance of Industrial Relations:

Uninterrupted production – The most important benefit of industrial relations is

that this ensures continuity of production. This means, continuous employment for
all from manager to workers. The resources are fully utilized, resulting in the
maximum possible production. There is uninterrupted flow of income for all.
Smooth running of an industry is of vital importance for several other industries; to
other industries if the products are intermediaries or inputs; to exporters if these are
export goods; to consumers and workers, if these are goods of mass consumption.
Reduction in Industrial Disputes – Good industrial relations reduce
the industrial disputes. Disputes are reflections of the failure of basic human urges
or motivations to secure adequate satisfaction or expression which are fully cured
by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and
grievances are some of the reflections of industrial unrest which do not spring
up in an atmosphere of industrial peace. It helps promoting co-operation and
increasing production.

High morale –Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of
employer and employees is one and the same, i.e. to increase production. Every
worker feels that he is a co-owner of the gains of industry. The employer in his
turn must realize that the gains of industry are not for him along but they should be
shared equally and generously with his workers. In other words, complete unity of
thought and action is the main achievement of industrial peace. It increases the
place of workers in the society and their ego is satisfied. It naturally affects
production because mighty co-operative efforts alone can produce great results.

Mental Revolution – The main object of industrial relation is a complete mental

revolution of workers and employees. The industrial peace lies ultimately in a
transformed outlook on the part of both. It is the business of leadership in the
ranks of workers, employees and Government to work out a new relationship in
consonance with a spirit of true democracy.

Essentially, employee relations is a two person relationship between employee and

employer. The focus is on how to effectively manage and strengthen this
relationship. Industrial Relations on the other hand, is a three person relationship
between the organisation, the union and the workforce that the union represents.

Industrial Relations originated in the mid-20th century during the Industrial

Revolution in the UK. It came about as a means to understand the complex
relationship between employers and employees. An employee associates Industrial
Relations with better safety, training, job security, pay and conditions in the
workplace. An employer understands it to be about productivity, employment law
and conflict resolution. This resolution often involved the intervention of a
Union. The union represents the employee as a collective workforce and raises
issues to the organisation.

Employee Relations is the study of the relationship between employees and also
between employers and employees. A business which focuses on the importance of
strong Employee Relations often results in higher engagement, higher motivation
and ultimately improved productivity and profitability. Employee Relations is
about providing information to employees on the goals of the organisation.
Employees should understand the ultimate goals of the business and what their role
is in achieving these goals.

Factors that contributes to a good labour and industrial relations

Legal Framework

According to ASETUC, good industrial relations must be based on a solid legal

framework that account for economic and social conditions and allow the employer
to build and grow his business while providing employees with equitable and safe
working conditions, stable employment and minimum standards. The framework
must also allow employees to voice their opinions and be a part of business
decision-making processes.

Rights

The rights of employees to self-organize their labor union activities must be

respected and protected. Employers should regularly consult with union
representatives and employees to encourage collective-bargaining and provide
employees with a platform to voice opinions. These meetings may also be an
opportunity for employees to suggest more efficient work practices that could
improve productivity and increase profits. Employers must also be respected and
accorded the right to manage their business in a manner that is fiscally sound.

Cooperation
Industrial relations will also improve if common employer/employee interests such
as productivity, profit sharing, disciplinary procedures and termination, conditions
of service and grievance handling can be handled with procedures developed by
collaboration and cooperation of both employer and employees.

Trust

Employer and employee must work to build mutual trust and respect. Employees
feel respected and productivity will be at its best when there is transparency and
general consensus on the common issues of the workplace. Exercises to improve
trust and respect, including team building social activities for all employees, will
help them feel invested in their employer. Employers and employees must work
together and deal with each other honestly and with integrity.

Dispute Resolution

A good industrial relations system must encompass effective labor dispute

resolution. Employers and employees must be allowed the right to participate in
good faith in dispute resolution processes to resolve grievances.

Good Faith bargaining

The federal labor act requires that both the employer and the union bargain in good
faith concerning collective bargaining agreements, or labor union contracts. Good
faith bargaining is an important aspect of reaching an agreement that serves the
employer's needs as well as the needs of its workers.
HISTORICAL BACKGROUND OF LABOUR AND INDUSRTRIAL
RELATIONS

HISTORY OF COTU (K)

The Central Organization of Trade Unions, COTU (K) is the National Trade Union
Center in Kenya. COTU (K) was founded in 1965 upon dissolution of the Kenya
Federation of Labor and the African Workers’ Congress (KFL – AWC). COTU
(K) is registered and operates within the provisions of the Labour Relations Act,
2007 of the Laws of Kenya.
THE HISTORY OF THE LABOUR MOVEMENT IN KENYA
Like all nations, Kenya has been founded on the efforts of many people,
institutions, organizations, corporations and professions. One of the foundations
upon which the nation has been built is the Central Organisation of Trade Unions,
COTU, the largest association of workers’ unions that has shaped relations
between Kenyan employers and workers since soon after the country’s
independence and in the process impacted on the pace as well as direction of
Kenya’s economic development.
Fifty years after independence, Kenya has approximately two million workers in
the formal sector more than 75 per cent of who belong to trade unions.  Of the
country’s 42 trade unions, 36 belong to COTU and they represent more than 1.5
million workers both in the public and private sectors of the economy. Whether
through negotiations for better wages and terms of employment or through tougher
measures such as court action or labour strikes, trade unions have shaped the
relations between employers and employees. COTU has been their strongest
common voice in those relations.
It has not always been like that. Kenya’s trade union movement evolved through
difficult situations created by the British colonial government which persistently
defended employers in order to prevent the rise of an organized labour movement.
But towards the end of the 1930s, there was a slight change in policy. The colonial
government allowed the creation of unions but in a very restricted and limited way
as far their rights and operations were concerned.
The opportunity was seized by pioneers like Fred Kubai, Makhan Singh and Bildad
Kaggia to start trade unions. In 1935 Makhan Singh at the request of Asians
workers set up the Indian Trade Union which he soon broadened to embrace all
races and trades. The union eventually became the Labour Trade Union of Kenya.
By the late 1940s Kubai had set up the Transport and Allied Workers Union
(TAWU) and Kaggia the Clerks and Commercial Workers Union.
By 1950, the active collaboration between Kubai and Singh led to the creation of
the East African Trade Union Congress with Makhan Singh as secretary-general
and Kubai as President. The two committed their congress to political objectives
and with Singh’s self-avowed communism, the stage was set for confrontation with
the colonial government.
First Industrial Strike
The first real serious industrial strike in Kenya was in Mombasa in 1939 by
African Railway apprentices which turned violent and spread upcountry. The
colonial government blamed the strike on the collaboration between Singh and
African leaders such as Kubai, Kaggia, Jesse Kariuki, Joseph Kangethe and Jomo
Kenyatta. Makhan Singh became a marked man and by 1951 he was arrested, tried
for subversion and restricted to Lokitaung in the northern part of today’s Pokot
County. Judge Ransley Thackery described Singh as
“a man of malignant influence and ill-will”.
Singh ended up being Kenya’s longest detainee, being freed only in 1961. That
was after Kenyatta and the other freedom fighters, Kaggia, Kubai, Achieng Oneko,
Paul Ngei and Kungu Karumba, who had been detained in 1953 had been released.
Interestingly, it was Justice Thackery who tried the six at the infamous Kapenguria
case, convicted them of organizing and managing the Mau Mau rebellion and sent
them to detention in 1953.
By 1952 a number of other African trade unions were set up. Aggrey Minya got
some of them to form the Kenya Federation of Registered Trade Unions with
himself as secretary general. But with the declaration of a state of emergency in
Kenya by the colonial government in October 1952, the KFRTU did not make
much of an impression on the labour front. Many trade union leaders were detained
allegedly because they were associated with the Mau Mau, Kubai and Kaggia
being among them.
Scope of Labour laws
Labour law, the varied body of law applied to such matters as employment,
remuneration, conditions of work, trade unions, and industrial relations. In its most
comprehensive sense, the term includes social security and disability insurance as
well. Unlike the laws of contract, tort, or property, the elements of labour law are
somewhat less homogeneous than the rules governing a particular legal
relationship. In addition to the individual contractual relationships growing out of
the traditional employment situation, labour law deals with the statutory
requirements and collective relationships that are increasingly important in mass-
production societies, the legal relationships between organized economic interests
and the state, and the various rights and obligations related to some types of social
services.
Labour law has won recognition as a distinctive branch of the law within the
academic legal community, but the extent to which it is recognized as a separate
branch of legal practice varies widely depending partly on the extent to which there
is a labour code or other distinctive body of labour legislation in the country
concerned, partly on the extent to which there are separate labour courts or
tribunals, and partly on the extent to which an influential group within the legal
profession practice specifically as labour lawyers.
In the early phases of development the scope of labour law is often limited to the
most developed and important industries, to undertakings above a certain size, and
to wage earners; as a general rule, these limitations are gradually eliminated and
the scope of the law extended to include handicrafts, rural industries and
agriculture, small undertakings, office workers, and, in some countries, public
employees. Thus, a body of law originally intended for the protection of manual
workers in industrial enterprises is gradually transformed into a broader body of
legal principles and standards, which have basically two functions: the protection
of the worker as the weaker party in the employment relationship, and the
regulation of the relations between organized interest groups (industrial relations).

Reasons for the development of labour and industrial relations

1. Establish and foster sound relationship between workers and management by
safeguarding their interests.
2. Avoid industrial conflicts and strikes by developing mutuality among the
interests of concerned parties.
3. Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the
economic status of workers.
4. Provide an opportunity to the workers to participate in management and decision
making process.
5. Raise productivity in the organisation to curb the employee turnover and
absenteeism.
6. Avoid unnecessary interference of the government, as far as possible and
practicable, in the matters of relationship between workers and management.
7. Establish and nurse industrial democracy based on labour partnership in the
sharing of profits and of managerial decisions.
8. Socialise industrial activity by involving the government participation as an
employer.

Accordingly, Kirkaldy has identified four objectives of industrial relations as

listed below:
1. Improvement of economic conditions of workers.
2. State control over industrial undertakings with a view to regulating production
and promoting harmonious industrial relations.
3. Socialisation and rationalisation of industries by making the state itself a major
employer.
4. Vesting of a proprietary interest of the workers in the industries in which they
are employed.

Impacts of the development of labour and industrial relations in Kenya

THE IMPACT OF TRADE UNIONS IN KENYA
1. Trade unions have provided a fair work deal. This work deal has ensured that at
least some measure of protection is given to the weaker party in labor and
industrial relations.
2. They have balanced the power relation structure through collective.

3. They have encouraged negotiation and mutual understanding through collective

bargaining.

4. They have promoted industrial peace.

5. In collaboration with other social partners, they have increased employment

opportunities including those of their members.

6. Unions have protected the employed people by making them be fully aware of
the dynamics operating in the labor market.

7. Unions have participated in matters of national interest affecting their members

e.g. compacting inflation through wage restrain or wage freeze.

8. They have promoted a more equitable distribution of national income through

collective and productive bargaining.

9. Unions have also provided a forum for lobbying and influencing government
policies through alliances with other social movements.

10. They have also represented their members in grievances and dispute settling by
promoting the spirit of industrial relations charter.

11. They have been involved in workers' education or welfare including workers
cooperativeness.

Challenges experienced during the development of labour and industrial

relations

I. AN INTERNATIONAL PERSPECTIVE
1 Industrial Relations in the Next Decade
It is evident that the complex problems facing western industrialized nations are
increased because of our inadequate analysis and lack of planning to meet
predictable developments. While great skill and foresight is applied in the field of
technical development, a widely expressed concern for the human equation is not
yet matched by a similar effort. Perhaps we are really facing an economy in which,
as predicted, there will be virtually no-one working in the factories; the machines
will regulate and repair themselves, and also determine the quantity of production.
Or perhaps we can suppose that this expectation is a gross.
II. COLLECTIVE BARGAINING IN AN AGE OF CHANGE
2 Automation and Wage Determination
During the 1950’s a wave of mechanization, directed toward more automatic
manufacturing systems, swept throughout American industry. Although automatic
manufacturing systems were not new in concept or fact,¹ the breadth of industrial
effort, the degree of advances sought, the functions mechanized, and public and
union response to these mechanization programs evoked national interest
unparalleled in American industrial history. The definitions of automation were
numerous and varied; opinions on its impact were the same, and continue to be so
to this day.

3 Collective Bargaining in Perspective

Collective bargaining is now so well entrenched and widely accepted that people
are beginning to suggest that it is becoming obsolete. For example, Paul Jacobs
claims that collective bargaining has become “old before its time.” He says that it
has proved less and less effective in solving the basic problems faced by workers
and management, and points out that an increasing number of workers remain
outside the system and are not likely ever to come within it.¹ Others lament the
encroachment by government into the area of free bargaining between unions and
management.
4 Collective Bargaining and the Challenge of Technological Change
With the exception of the birth of quintuplets and manned space flights, few
activities have been the object of such close scrutiny as collective bargaining.
Virtually every government official, economist, and newspaper editor has his own
fever chart which describes the present condition of the subject. The slightest rise
in temperature elicits anxious concern and a variety of remedies ranging from stiff
legislative prescriptions to imported patent medicines. Not content with these
judgments, the conference chairman has placed us under a mandate to carry out a
wide-ranging assessment of collective bargaining.

5 Challenge and Response in the Law of Labour Relations

 
Challenge and response in the law are by no means confined to the area of labour
relations. In many areas of law, which touch upon controversial social questions,
there is a continual and a healthy tension between law and life. Law, after all, is a
technique for preserving order and stability in society, for substituting calm and
reasoned judgment for passion and violent pursuit of self-interest. Necessarily,
however, the order and stability which law represents take the form of a prevailing
social consensus. Thus, before the law can change, it is necessary for society’s
thinking to change.

III. ON THE FRONTIER OF INDUSTRIAL RELATIONS

6 The Individual in an Organizational Society
It is undoubtedly perverse of me to suggest that we may be out of phase, but I
sincerely believe that the field of “industrial relations” as we have understood the
subject in the last three decades does not have much of a future. I think most of the
subject matter of the field has been misunderstood, misconstrued, and
misrepresented by both the academic community and the staff representatives of
industrial relations in business and industry. The academics and the practising
professionals have shared in a kind of conspiracy. 

7 Government and Poverty

With the rise of affluence in our society, we have developed programs of social
insurance and social security which ensure that all, or nearly all, of the population
have at least a basic minimum of the necessities of life—food, clothing, shelter,
and elementary medical care. Some would deny, therefore, that poverty exists in
Canada because, by traditional definition, the condition of poverty is the lack of the
basic requirements of life. However, according to the standards of our society,
people may be considered poor even though their income provides much more than
these basic necessities

8 War on Poverty
Recent figures released in the United States show a decline of about a million in
the nation’s poverty population. Those of us who have been fighting the war on
poverty welcome these figures. We are not so naive, however, that we attribute the
gain to the present anti-poverty program alone. We know that much of what has
been accomplished is attributable to the massive prosperity our nation has been
enjoying. We have been enjoying a 6 per cent growth rate for nearly two years.
There is no need to be an economist to understand the implications of such growth.

Problems of industrial relations

Industrial relations is the study of the interactions among industry, its employees
and the governments that oversee them. It is also the study of the various
institutions and organizations that are formed as a result of these interactions, such
as labor unions and business unions. Many problems lie central to the study of
industrial relations. Learning about these problems is a good place to start gaining
a better understanding of how the modern world's economic interrelations function.

Achieving Competitiveness
Increasingly, one of the central problems of industrial relations in the modern
world is how to achieve competitiveness. The modern globalized economy requires
more than ever that each individual achieve his maximum level of competitiveness.
In general, the primary problem is how companies manage to achieve the levels of
innovation and flexibility required by the global economy.
Employer Flexibility
Employer flexibility is another problem faced in modern industrial relations,
especially in developing countries. In order for companies to achieve their
maximum potential in the modern market, employers must learn how to marry
traditional cultural values such as respect for authority with a greater amount of
openness and respect in how employers deal with their workers. In general, the
requirements of modern business include more flexible management and work
organization, focusing on creating a smarter and more motivated work force and
culturally sensitive management techniques.
Role of Government and Unions
The global economy also means a different sort of role for government and labor
unions in the management of industrial relations. Governments are faced with the
task of deciding how to best encourage foreign involvement in their economies that
will benefit their own nations but still be attractive to the foreign companies. Labor
unions are faced with the need to work more collaboratively and less
antagonistically with employers.
Ethical Theory
Ethical theory is another extremely important area of industrial relations, and
presents some of the field most pressing and demanding problems. The Western
world is steeped within the libertarian and utilitarian view of industrial relations,
while Asia, India and the Middle East are all working from the ethical institutions
that are primary to their culture. The collisions and relationships between these
different systems of thought are very important to modern industrial relations.
Technology
The presence of technology in the workplace can create ethical quandaries in
industrial relations, such as the loss of privacy and the replacement of jobs by
machinery. Industrial relations takes on the task of figuring out how to balance
technical innovation with fairness to the humans affected by it.
GRIEVANCES AND DISPUTES
Meaning of grievances and disputes
A grievance is any dissatisfaction or feeling of injustice having connection with
one’s employment situation which is brought to the attention of management.
Speaking broadly, a grievance is any dissatisfaction that adversely affects
organizational relations and productivity. To understand what a grievance is, it is
necessary to distinguish between dissatisfaction, complaint, and grievance.
1. Dissatisfaction is anything that disturbs an employee, whether or not the unrest
is expressed in words.
2. Complaint is a spoken or written dissatisfaction brought to the attention of the
supervisor or the shop steward.
3. Grievance is a complaint that has been formally presented to a management
representative or to a union official.
According to Michael Jucious, ‘grievance is any discontent or dissatisfaction
whether expressed or not, whether valid or not, arising out of anything connected
with the company which an employee thinks, believes or even feels to be unfair,
unjust or inequitable’.
In short, grievance is a state of dissatisfaction, expressed or unexpressed, written or
unwritten, justified or unjustified, having connection with employment situation.

A labor dispute is a disagreement between an employer and employees regarding

the terms of employment. This could include disputes regarding conditions of
employment, fringe benefits, hours of work, tenure, and wages to be negotiated
during collective bargaining, or the implementation of already agreed upon terms.
  It could further concern the association or representation of those who negotiate
[1]

or seek to negotiate the terms or conditions of employment.

Labor dispute is also defined as any controversy concerning terms or conditions of
employment, or concerning the association or representation of persons
negotiating, fixing, maintaining, changing, or seeking to arrange terms or
conditions of employment, regardless of whether or not the disputants stand in the
proximate relation of employer and employee.

Causes of Grievances:
Grievances may occur due to a number of reasons:
1. Economic:
Employees may demand for individual wage adjustments. They may feel that they
are paid less when compared to others. For example, late bonus, payments,
adjustments to overtime pay, perceived inequalities in treatment, claims for equal
pay, and appeals against performance- related pay awards.
2. Work environment:
It may be undesirable or unsatisfactory conditions of work. For example, light,
space, heat, or poor physical conditions of workplace, defective tools and
equipment, poor quality of material, unfair rules, and lack of recognition.
3. Supervision:
It may be objections to the general methods of supervision related to the attitudes
of the supervisor towards the employee such as perceived notions of bias,
favouritism, nepotism, caste affiliations and regional feelings.
4. Organizational change:
Any change in the organizational policies can result in grievances. For example,
the implementation of revised company policies or new working practices.
5. Employee relations:
Employees are unable to adjust with their colleagues, suffer from feelings of
neglect and victimization and become an object of ridicule and humiliation, or
other inter- employee disputes.
6. Miscellaneous:
These may be issues relating to certain violations in respect of promotions, safety
methods, transfer, disciplinary rules, fines, granting leaves, medical facilities, etc.

Types of grievances and disputes

Employees will not complain for no reason. By identifying the types of employee
grievances, we can immediately identify the reasons or causes of such complaints.
The types of grievances are based on the nature of the complaint, and we will take
a look at the most common ones.

Employee compensation and benefits

A great bulk of employee grievance cases has something to do with the pay and
benefit packages that employees receive – or do not receive – from their
employers. This is the topic most unions take up with the management of the
companies they belong to.
For example, you may feel like you are undercompensated, or that your salary is
not proportional to the level of your responsibilities combined with the bulk and
complexity of the work you are actually doing. Other times, you may also feel that
there are benefits that you are entitled to but are not being given. This is reason
enough for employees to complain against their employers, and no doubt, if you
feel that your employer is dong one of these, you’ll not hesitate to lodge your
complaint.
Attention may also be fixed on pay equity within the organization, with respect to
the amount of work and the nature of the job. In instances when the company
grants pay increases or bonuses, if the incentives are not balanced, the group
receiving lower incentives will make complaints that they will feel compelled to
take to a formal level.

Employment and personnel policies

Employees’ complaints may also be spurred by layoffs, transfers and assignments.
If you feel that you have been unfairly transferred to, say, a division or department
where your skills are not really required, and your earlier efforts to ask for a
reconsideration fail, chances are that you will feel compelled to formalize the
complaint into a grievance.
The grievance could also be due to some areas or clauses contained in the
company’s personnel policies, such as the hiring and recruitment procedures, leave
administration, and merit and promotion plans, to name a few.

Workload and work distribution

You can also feel that you have been unfairly given more work than other people
in the same rank. This clearly shows that there is a problem with how the workload
is distributed among the employees. All employees getting the same compensation
should also get roughly the same volume of work and responsibilities.
Aside from unfair distribution of work, the complaint may arise simply from the
employees’ opinion that the company is working them to the ground. This is
especially true in the case of companies that are going through lean times and have
to employ cost-cutting measures. For example, efforts of the company to bring
down costs could lead to you and the other employees in your department to put in
more work outside your usual work hours.
Here’s the catch: if the extra responsibilities will not be treated as overtime, you
won’t be receiving any extra compensation and as a result, you will most certainly
protest. You will definitely not listen to the explanation that the company is simply
cutting down on costs. In other cases, you may be asked to take on more work, so
that you are technically going to perform the work of two or three people. If you
are asked to do so without a corresponding increase in your compensation, there is
bound to be a problem.
Your employer may have appealed to your good conscience to “sacrifice that
much” for the company during tough times. During the first few months, you’re
probably going to be all right with it. However, if that situation drags on longer,
and it seems that the employer is getting comfortable and he shows no clear plans
or intentions of setting it right after the company has regained its footing, then
clearly, these are causes for concern.
Work conditions
Unsafe workplaces and offices that pose potential physical harm and health
problems to employees are also seen as valid reasons for a formal complaint. One
of the best indicators of a company caring about its employees is the provision of a
safe and clean working environment.
Are you provided with the tools necessary to carry out your tasks? Are you
working with well-functioning tools, machinery and equipment? Is the workplace
well-ventilated and properly lit? Needless to say, if these are not satisfactory, not
only will they cause potential harm and injury to the employees, they will also
bring about frustration and dissatisfaction.
Management-employee relations
In some cases, it is possible for you as an employee to feel a divide or a gap with
management or your employer. Maybe you are having trouble gaining access to,
and communicating with, the employer. One way to bridge that gap is to file a
grievance.
Unions exist to represent the interest of the employees to the management, and
their primary focus is on unfair labor practices that harm the relationship between
the management and employees.

Methods of handling grievances and disputes

Methods of resolving grievance can be divided in to two parts:
 Decisional Processes: Binding Decisions
 Non-Decisional (Collaborative) Processes: Managed Negotiations

Decisional Processes: Binding Decisions

The dispute resolver makes a ruling, judgment or determination on legal and/or
factual issues: Arbitration, Adjudication, Reconciliation & Expert Determination
are the methods under the decisional procerss.
Expert professional dispute resolvers organise and manage the dispute resolution
process; review and evaluate relevant evidence; determine facts and points of law
and produce legally binding, written judgments (called “awards” or
“determinations”).

(i). Arbitration
Arbitration (sometimes called “Adjudication”), is a private, trial-like process that
can be commenced by any two or more parties who agree to arbitrate — either
under a contract, by legislation, or by simple written agreement. A properly
designed, well managed arbitration process can be completed quickly and is a
highly efficient means of resolving many types of dispute.
The Arbitrator is usually an expert in the area of the dispute, e.g. an accountant for
a financial/commercial dispute; a doctor for a medical dispute etc. If the issues are
mainly legal in nature, the Arbitrator may be a legal expert, e.g. a solicitor,
barrister or even a retired judge.
All properly qualified arbitrators have been trained and tested in both law and
arbitration process, in addition to their own professional/technical training.
Experienced arbitrators can therefore deal very efficiently with both difficult legal
and technical issues.
The main advantage of appointing an Arbitrator to determine a technical dispute
lies in their dual qualification in law and their own discipline. This substantially
reduces the time otherwise required to educate the Arbitrator in the technicalities
of the dispute.
In large cases a panel of (usually) three Arbitrators is appointed to cover all likely
technical and legal aspects of the dispute. Each arbitrator is briefed to take the lead
in their respective areas of technical expertise.
Arbitrations are conducted under the Commercial Arbitration Acts. The Acts give
Arbitrators most of the power and authority of Supreme Court judges. The Acts
encourage Arbitrators to use this power to make the process quick, fair, pragmatic,
tightly managed and, above all, cost-effective.
(ii) Adjudication
Adjudication generally refers to processes of decision making that involve a
neutral third party with the authority to determine a binding resolution through
some form of judgment or award. Adjudication is carried out in various forms, but
most commonly occurs in the court system. It can also take place outside the court
system in the form of alternative dispute resolution processes such as arbitration,
private judging, and mini-trials. However, court-based adjudication is usually
significantly more formal than arbitration and other ADR processes. The
development of the field of alternative dispute resolution has led many people to
use the term adjudication to refer specifically to litigation or conflicts addressed in
court.
Adjudication is an involuntary, adversarial process. This means arguments are
presented to prove one side right and one side wrong, resulting in win-lose
outcomes. In civil cases, one side/person that believes he or she has been wronged
(plaintiff) files legal charges against another (defendant). In other words,
somebody sues someone they have a legal problem with. Once this occurs, both
parties are obligated by law to participate in court-based proceedings. If the case
goes to trial, each side then presents reasoned arguments and evidence to support
their claims. Once that presentation of evidence and arguments is completed, a
judge or jury then makes a decision. Appeals may be filed in an attempt to get a
higher court to reverse the decision. If no appeal is filed, the decision is binding on
both parties.
(iii) Reconciliation
Compared to conflict handling mechanisms such as negotiation, mediation,
adjudication, and arbitration, the approach called ‘reconciliation’ is perhaps the
least well understood. Its meaning, processes, and application have not been
clearly articulated or developed. A place to start understanding what it entails
might be by trying to distinguish it from the other approaches used in grievance
redressal and peace building.
If we were to look at the ‘degree of mutual participation by the conflicting parties
in the search for solutions to the problems underlying their conflict’ we could place
these approaches in a spectrum as follows.
At the left end of the spectrum, we find approaches where mutual participation is
minimal. The use of force by one of the parties to impose a solution would be an
example of a mechanism that would be placed at this end of the spectrum. Further
to the right of the spectrum, we could place mechanisms such as adjudication. Here
a third party, instead of an adversary, imposes a solution to the conflict. However,
the mutual participation of the parties in the choice of the solution is comparatively
higher here than in the first. In the adjudication process, at least the parties have an
opportunity to present their cases, to be heard, and submit their arguments for why
their preferred solution should be the basis upon which the decision is made.
Nonetheless, the choice of the solution is made by a third party, and the decision is
backed by force (enforced) which ensures that the losing party complies.
Arbitration is placed further to the right of ‘adjudication’. Here, the participation of
the parties is even higher since both adversaries can choose who is going to decide
the issues under dispute, whereas in adjudication the decision maker is already
appointed by the state. The parties in conflict can sometimes identify the basis
upon which their case will be decided and whether the outcome will be binding or
not. Although the mutual involvement of the parties in the decision making process
is much higher than adjudication, the solution is still decided by an outsider and,
depending on the type of arbitration, the outcome could be imposed by the power
of the law.
Further to the right on the spectrum we find negotiation. Here the participation of
all the involved parties in the search for solution is very high. It is the parties
themselves who have to formulate the issues, and find a resolution that is
satisfactory to all of them. In this situation, however, particularly in bargaining
type negotiations (as opposed to problem-solving type of negotiations), the final
choice of the solution might depend on the relative power position of the
adversaries rather than on what might be the most satisfactory solution to everyone
involved. The party with the higher bargaining leverage might end up getting the
most out of the negotiations.
Mediation is a special type of negotiation where the parties’ search for mutually
satisfactory solutions is assisted by a third party. The third party’s role is to
minimize obstacles to the negotiation process including those that emanate from
power imbalance. Unlike adjudication, however, in the final analysis it is the
decision and agreement of the conflict parties that determines how the conflict will
be resolved.
Towards the far right of the spectrum we find reconciliation. This approach not
only tries to find solutions to the issues underlying the conflict but also works to
alter the adversaries’ relationships from that of resentment and hostility to
friendship and harmony. Of course, for this to happen, both parties must be equally
invested and participate intensively in the resolution process.
The conflict handling mechanisms illustrated in the spectrum can be categorized
into three groups which we will call conflict management, conflict resolution, and
conflict prevention approaches. Conflict management approaches generally tend to
focus more on mitigating or controlling the destructive consequences that emanate
from a given conflict than on finding solutions to the underlying issues causing it.
On the other hand, conflict resolution approaches aim at going beyond mitigation
of consequences and attempt to resolve the substantive and relational root-causes
so that the conflict comes to an end. While conflict management and resolution are
reactive, they come into motion once conflict has surfaced, conflict prevention tries
to anticipate the destructive aspects of the conflict before they arise and attempts to
take positive measures to prevent them from occurring.
‘Justice is a necessary but not sufficient condition for reconciliation.’
Most of the mechanisms identified on the left hand of the spectrum are conflict
management approaches. To the extent that adjudication, arbitration, and
bargaining negotiations do not become avenues to solve the underlying issues of
the conflict, and in most instances they do not, they become mere stop-gap conflict
management measures. But if they provide an opportunity to work out not only
differences on substantive issues but also negative relationships, they can become
conflict resolution mechanisms.
Observations
We notice that as we move from the left to the right on the spectrum, i.e., as the
participation of all the parties in the search for solution increases, the likelihood of
achieving a mutually satisfactory and durable solution also increases. We know
that solutions imposed by force will only last until the vanquished is able to muster
sufficient force to reverse the situation. Solutions imposed by adjudication and
arbitration, unless somehow the loser gives up, can always be frustrated by the
latter’s endless appeals or lack of cooperation in the implementation process. If,
however, the parties are engaged earnestly in the search for the solutions and are
able to find resolutions that could satisfy the needs and interests of all involved,
there could be no better guarantee for the durability of the settlements. It would be
in the interest of every one to see to it that they are fully enforced. This is what we
believe problem-solving negotiations, mediation, and reconciliation can do.
Healing and Reconciliation
Despite the lack of knowledge about how to operationalize reconciliation, there is
however no question about the tremendous need for it. In fact, it could be said that
the need in today’s world is much greater than at any other time in the past.
What Does Reconciliation Entail-
Reconciliation as a conflict handling mechanism entails the following core
elements:
 Honest acknowledgment of the harm/injury each party has inflicted on the
other;
 Sincere regrets and remorse for the injury done:
 Readiness to apologize for one’s role in inflicting the injury;
 Readiness of the conflicting parties to ‘let go’ of the anger and bitterness
caused by the conflict and the injury;
 Commitment by the offender not to repeat the injury;
 Sincere effort to redress past grievances that caused the conflict and
compensate the damage caused to the extent possible;
 Entering into a new mutually enriching relationship.
Reconciliation then refers to this new relationship that emerges as a consequence
of these processes. What most people refer to as ‘healing’ is the mending of deep
emotional wounds (generated by the conflict) that follow the reconciliation
process.
A very important aspect of the process of reconciliation and one that distinguishes
it from all the other conflict handling mechanisms is its methodology. In most of
the conflict handling mechanisms such as adjudication, arbitration, and for that
matter even negotiation and mediation the method used for establishing
responsibility for the conflict or its consequences is adversarial. In these processes,
the parties present their grievances and make a case for the adversary’s fault or
responsibility, thereby demanding that it should be the latter that should make
amends. Each party begins by defending its own behaviour and denying its own
guilt or responsibility until the opponent proves it to his or her satisfaction or to the
satisfaction of outside observers, be they judges or mediators. In such a process,
one’s behaviour is always explained as a reaction to the behaviour of the
adversary. The typical pattern of the interaction is: ‘I did this to you because you
did such and such a thing to me!’ The aim is to get the adversary to change his or
her future conduct by proving the person’s guilt. Of course, the expectation is that
both parties will change each other in this way and will eventually transform their
relationship from negative to positive.
Despite the lack of knowledge about how to operationalize reconciliation, there is
no question about the tremendous need for it.
On the other hand, the essence of reconciliation is the voluntary initiative of the
conflict parties to acknowledge their responsibility and guilt. The interactions that
transpire between the parties are not only meant to communicate one’s grievances
against the actions of the adversary, but also to engage in self-reflection about
one’s own role and behaviour in the dynamic of the conflict. In other words, in this
kind of dialogue, as much as one attributes guilt and responsibility to the adversary
for the damage generated by the conflict, one has to also be self-critical and
acknowledge responsibility for his or her own role in the creation or perpetuation
of the conflict and hurtful interaction. The aim of such interaction is that, in the
final analysis, each of the parties acknowledges and accepts his or her
responsibility and out of such recognition seeks ways to redress the injury that has
been inflicted on the adversary, to refrain from further damage, and to construct
new positive relationships.
(iv) Private Judging
As above, with the added attraction of using retired senior judges to manage the
dispute resolution process in the form of confidential, private trials. These result in
written judgments (awards) that are legally binding on the parties. Private Judging
has most of the authority of a court process, added to which it is confidential,
quicker, more efficient and significantly cheaper than litigation.

2. Non-Decisional (Collaborative) Processes: Managed Negotiations

Under these methods a dispute resolver is generally appointed or agreed upon. He
manages a problem solving negotiation process that is designed and run to help
parties understand and come to terms with their respective positions and interests,
generate options for resolution and develop mutual agreements. Types of non-
decisional processes are:
(i) Facilitation
Facilitators bring professional communication and people management skills to
meetings and important negotiations. They help to redress grievances, where
parties recognise they have serious differences, but don’t consider themselves to be
in dispute – or don’t want to acknowledge that they could be in dispute
(ii) Mediation (Facilitated)
Facilitative Mediators manage a style of negotiation process designed to help solve
problems and generate settlement options. This type of Mediator is a neutral
process manager who is neither expected nor required to express opinions on the
issues. Being focused on the process, the Facilitative Mediator does not actively
encourage the parties towards settlement, instead they help the parties to develop
their perceptions, draw their own conclusions and develop their own solutions.
(iii) Mediation (Directed)
Directive Mediation is a more robust style of mediation. The Mediator is
expected/required to provide opinions and suggestions and to actively encourage
the parties towards grievance redressal. Directive Mediation is, by far, our most
successful and most popular dispute resolution process.
(iv) Advisory & Evaluative Processes: Expert Opinions (non-binding)
The dispute resolver assesses the legal and/or factual and/or technical issues in
dispute and advises the parties of the absolute and relative strengths and
weaknesses of their positions:
(v) Neutral Interventions: Factfinding & Problem Solving
The dispute resolver has a mandate to “get in and see what they can do” to help
rectify and resolve a situation that may otherwise develop into a serious conflict.
GOVERNMENT INVOLMENT IN LABOUR AND INDUSTRIAL
RELATIONS
Reasons for government involvement in labour and industrial relations
1. To maintain stability and regularity in the industrial organizations through
appropriate rules and regulations.
2. To control the work relations to ensure industrial harmony
3. To regulate legal relationship between employer and employee in the form of
contract.
4. To exercise great influence in industrial relations through legislations on
remuneration, fringe benefits etc.
5. To resolve industrial disputes through government legislation.
6. To resolve lingering industrial disputes through appropriate institutions to avert
breakdown of law and order in the workplace.
7. To set the guidelines for the determination of conditions of service and welfare
amenities for the workers.
8. To encourage desired level of productivity in the economy.
9. The government also intervenes due to the growing awareness that relations
between employers and employees could not be left to the two parties alone; in
order to protect public interest.
10. Government has the responsibility to protect the peace of the nation, and
therefore, the government takes concerted efforts to make employers and the
workers resolve their differences through industrial court.

Role of the Ministry of Labour

The Ministry of Labour, Training and Skills Development administers
the Employment Standards Act (ESA) and its regulations by:
 providing compliance support
 conducting proactive inspections of payroll records and workplace practices
to ensure the ESA is being followed
 investigating and resolving complaints
 enforcing the ESA and its regulations

MAIN ROLES
 To protect and ensure the rights of workers.
 Implementation of social rights.
 Implementation of productivity.
 Matters pertaining to international affairs.

Operations of the industrial court

How Industrial Court In Kenya Functions.
Establishment of the Industrial Court
 Constitution of Kenya (CoK) at Art. 162 provides for the establishment of the
industrial court (ICK) by legislation
The ICK deals with employment matters exclusively. The court has the status of
High Court
Court Composition
 Comprises judges appointed by President on advice of Judicial Service
Commission
 They retire at 70
 They elect one of their own to be Principal Judge who serves for 5 years
and may serve for a final further 5 years, and reverts to judge position if s/he
has not attained 70

Jurisdictions of the Industrial Court

 Dispute between employer and employee.
 Dispute between employer and Trade Unions.
 Registration of CBAs (Collective Bargaining Agreement).
 All disputes concerning terms and conditions of employment.
 Appellate jurisdiction, etc

Relief/Remedies by Industrial Court

 Grant of urgent interim relief.
 Order for prohibition.
 Declaratory order
 Award of compensation.
 Award of damages.
 Reinstatement

Powers of Court
 Execution of orders/decrees
 Stay of proceedings
ROLE OF THE EMPLOYER IN LABOUR AND INDUSTRIAL
RELATIONS

Meaning of employer
“Employer” means any person, public body, firm, corporation or company,
who or which has entered into a contract of service to employ any
individual, and includes the agent, foreman, manager or factor of such
person, public body, firm, corporation or company;

“Employers’ organisation” means any number of employers associated

together for the purpose, whether by itself or with other purposes, of
regulating relations between employers and their employees or the trade
unions representing those employees.

Obligations of employer in labour and industrial relations

Any employer in addition to special stipulations in the contract of

employment have the following obligations:

1. To provide work to the worker according to the contract of employment.

2. To provide him with materials and implements necessary for the
performance of the work.
3. To pay the worker wages and other necessary payments that should be
made.
4. To respect the worker’s human dignity.
5. To take all the necessary occupational safety and health measures and to
abide by the standards and directives given by the appropriate authorities in
respect of these measures.
6. To cover the cost of medical examination of the worker whenever such
medical examination required.

7. To give the worker, weekly rest days’ public holidays and leave.
8. When the contract of employment is terminated or whenever the worker
so requests, to provide the worker, free of charge, with a certificate stating
the type of work he performed, the length of service and the salary he was
earning.

Role of Federation of Kenya Employers in labour and industrial

relations

An employer association operates for the benefit of companies who are

members of the association. In Kenya an employers’ organisation is an
advocacy group that, through lobbying, tries to influence government policy.
They lobby governments on behalf of the member companies. They provide
advisory services to members. They lobby government and employers to
improve employees’ wages, conditions and benefits

They negotiate collective bargaining agreements between members and

trade unions. Most typically, they set out the terms and conditions such as
pay, benefits and working time, etcetera, to be included in the employment
contracts of workers in the bargaining unit.

Also, most employers’ organisations assist in the migration of informal

enterprises into the formal sector, though this is not always seen as a high
priority. The employers’ organisations use their influence to remove
regulatory obstacles to small and medium-size enterprises, which seem most
pronounced and most entrenched as bases for bribery and similar corruption
in African countries.
ROLE OF EMPLOYEE IN LABOUR AND INDUSTRIAL
RELATIONS
Meaning of an employee
“Employee” means a person employed for wages or a salary and includes an
apprentice and an indentured learner;

Obligations of an employee in labour and industrial relations

Every worker shall have the following obligations:

1. To perform in person the work specified in his contract of employment

2. To follow instructions given by the employer based on the terms of the
contract and work rules
3. To handle with due care all instruments and tools entrusted to him for
work.
4. To report for work always in fit mental and physical conditions.
5. To give all proper aid when an accident occurs or an imminent danger
threatens life or property in his place of work without endangering his safety
and health.
6. To inform the employer immediately of any act which endangers himself
or his fellow workers or which may prejudice the interests of the
undertakings.
7. To observe the provisions of this proclamation, collective agreements,
work rules and directives issued in accordance with the law.

Meaning of Trade Union

The Labour Relations Act defines a trade union as “an association of

employees whose principal purposed is to regulate relations between
employees and employers, including any employers’ organization”.

Role of Trade Unions in labour and industrial relations

Unions Work With Employers to Resolve Labor Issues
One of the most important roles that labor unions perform is that when there
is a dispute in the workplace, the union acts as an intermediary between
employers and business owners. Labor union leaders are experienced at
solving problems through formal arbitration and grievance procedures.
Instead of viewing this process as contentious, business owners should
welcome the involvement of a union representative, because it can expedite
the resolution. When issues arise at the workplace between you and your
employee, the goal is to secure a “win-win” in which both sides feel as if
they each attained something from the deal.

Save Employer Time through Collective Bargaining

Every labor union in the U.S. operates under what is known as the collective
bargaining agreement, which helps secure fair wages, working hours,
benefits, and the standards necessary for wage increases. The collective
bargaining agreement also protects your employees from being fired without
just cause, which protects you from litigation, because you can only
terminate a worker if that worker violated your company’s standards and
policies. Some employers view the collective bargaining agreement as a
necessary evil, but you should view it as a way to save your company the
time and money of having to negotiate wages, wage increases and benefits
on your own.

Help Reduce Turnover Rate

The goal of most labor unions isn’t to create conflict with your business; the
goal is to ensure that employees are treated fairly, and that they feel
comfortable and secure on the job. When that goal is achieved, employees
tend to stick around, instead of trying to find a more favorable situation.
Union members earn an estimated 30 percent more in wages than do non-
unionized workers, and 92 percent of unionized workers have health
insurance, compared to only 68 percent of non-unionized workers.

Another union benefit is that union workers are much more likely to secure
guaranteed pensions than are non-unionized workers. By ensuring fair wages
and benefits, labor unions help keep the membership content, and workers
who are satisfied with their jobs are more likely to work hard, instead of
looking for a quick way to exit your company

Role of ILO in labour and industrial relations

COLLECTIVE BARGAINING
Meaning of collective bargaining

Industrial disputes between the employee and employer can also be settled
by discussion and negotiation between these two parties in order to arrive at
a decision.
This is also commonly known as collective bargaining as both the parties
eventually agree to follow a decision that they arrive at after a lot of
negotiation and discussion.

According to Beach, “Collective Bargaining is concerned with the relations

between unions reporting employees and employers (or their
representatives).

It involves the process of union organization of employees, negotiations

administration and interpretation of collective agreements concerning wages,
hours of work and other conditions of employees arguing in concerted
economic actions dispute settlement procedures”.

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”.

According to an ILO Manual in 1960, the Collective Bargaining is

defined as:
“Negotiations about working conditions and terms of employment between
an employer, a group of employees or one or more employers organization
on the other, with a view to reaching an agreement.”
Importance of collective bargaining
The need for and importance of collective bargaining is felt due to the
advantages it offers to an organisation.

1. Collective bargaining develops better understanding between the

employer and the employees:
It provides a platform to the management and the employees to be at par on
negotiation table. As such, while the management gains a better and deep
insight into the problems and the aspirations of die employees, on the one
hand, die employees do also become better informed about the
organisational problems and limitations, on the other. This, in turn, develops
better understanding between the two parties

2. It promotes industrial democracy:

Both the employer and the employees who best know their problems,
participate in the negotiation process. Such participation breeds the
democratic process in the organisation.

3. It benefits the both-employer and employees:

The negotiation arrived at is acceptable to both parties—the employer and
the employees.

4. It is adjustable to the changing conditions:

A dynamic environment leads to changes in employment conditions. This
requires changes in organisational processes to match with the changed
conditions. Among other alternatives available, collective bargaining is
found as a better approach to bring changes more amicably.

5. It facilitates the speedy implementation of decisions arrived at

collective negotiation:
The direct participation of both parties—the employer and the employees—
in collective decision making process provides an in-built mechanism for
speedy implementation of decisions arrived at collective bargaining.

PRINCIPLES OF COLLECTIVE BARGAINING

The following principles for efficient functioning of collective bargaining

are identified by Human Resource experts:

For Union and Management:

1. Collective bargaining should be made an educational as well as a

bargaining process. It should offer to trade union leaders an opportunity to
present to the management the wants, the desires, the grievances and the
attitudes of its employees and make it possible for the management to
explain to union leaders and, through them, to its employees, the economic
problems which confront it.

2. The management and the trade union must look upon collective
bargaining as a means of fining the best possible solution, and not as a
means of acquiring as much as one can while conceding the minimum.
There must be an honest attempt at solving a problem rather than at a
compromise.

3. Both the parties must bear in mind the fact that collective bargaining is, in
a sense, a form of price fixation and that any successful collective bargaining
depends, in the last analysis on whether the management and the trade union
do a good job of ensuring that the price of labor is properly adjusted to other
prices.

For the Management

1. The management must develop and consistently follow a realistic labor

policy, which should be accepted and carried out by all its representatives.
2. In order to ensure that the trade union feels that its position in the
organization or factory is secure, the management must grant recognition to
it without any reservations and accept it as a constructive force in the
organization and the industry.

3. The management should not assume that employee goodwill will always
be there for it. It should periodically examine the rules and regulations by
which its labor force is governed. In this, way it will able to determine the
attitudes of its employees, promote their comfort, and gain their goodwill
and co-operation.

4. The management should act upon the assumption that in order to make the
trade union a responsible and conservative body, it is essential that it should
be fairly treated. It should, moreover, establish such a satisfactory
relationship with the trade union and its representatives that the latter will
not lightly do anything that is capable of jeopardizing that relationship.

5. The management should deal with only one trade union in the
organization. If two Trade Unions seek recognition, no negotiations should
be undertaken with one until one of them establishes the fact of having a
majority of the membership of the employees in its organization.

For the Trade Union:

1. In view of the rights granted to organized labor, it is essential that trade

unions should eliminate racketeering and other undemocratic practices
within their own organization.

2. Trade union leaders appreciate the economic implications of collective

bargaining, for their demands are generally met from the income and
resources of the organization in which their members are employed.

3. Trade union leaders should assist in the removal of such , restrictive rules
and regulations as are likely to increases costs and prices, reduce the amount
that can be paid out as wages, and tend to make for low employment and the
long-run lower standard of living of all sections of society.

The principles mentioned above are guide lines in the interests of both
management and Trade Union. If there are any deviations or malaise in the
intentions of any one may lead to industrial conflict.

Parties to collective bargaining

The parties to collective agreements shall be trade unions, individual
employers or associations of employers. Federations of trade unions and of
employers' associations (central organizations) may conclude collective
agreements on behalf of their affiliates if empowered to do so.

Procedures for negotiations

JOINT CONSULTATION
Meaning of joint consultation
A formal system of communication between the management of an organiza
tion and the employees' representatives used prior to taking decisions affecti
ng the workforce, usually effected through a joint consultative committee.

The need for joint consultation

Principles of consultation
Steps necessary for successful joint consultation