SHAHEED ZULFIQAR ALI BHUTTO INSTITUTE OF SCIENCES AND TECHNOLOGY

INDUSTRIAL RELATIONS AND LABOR LAWS

SIR VISHNU PARMAR

TITLE:

EMPLOYEE GRIEVANCES AND INDUSTRIAL DISPUTES

BY:

IRFAN BHATTI AHSAN TARIQ IRTAZA TALPUR

INTRODUCTION:
The Industrial Revolution started from 1750 to 1850 in which changes in agriculture, manufacturing, mining, transportation, and technology had great effects on the social, economic and cultural conditions of those times. The industrial revolution basically started the United Kingdom and then spread throughout Western Europe, North America, Japan, and eventually the rest of the world. (The Industrial Revolution, which took place from the 18th to 19th centuries, was a period during which predominantly agrarian, rural societies in Europe and America became industrial and urban. Prior to the Industrial Revolution, which began in Britain in the late 1700s, manufacturing was often done in peoples homes, using hand tools or basic machines. Industrialization marked a shift to powered, special-purpose machinery, factories and mass production. The iron and textile industries, along with the development of the steam engine, played central roles in the Industrial Revolution, which also saw improved systems of transportation, communication and banking. While industrialization brought about an increased volume and variety of manufactured goods and an improved standard of living for some, it also resulted in often grim employment and living conditions for the poor and working classes. The Industrial Revolution brought about a greater volume and variety of factory-produced goods and raised the standard of living for many people, particularly for the middle and upper classes. However, life for the poor and working classes continued to be filled with challenges. Wages for those who labored in factories were low and working conditions could be dangerous and monotonous. Unskilled workers had little job security and were easily replaceable. Children were part of the labor force and often worked long hours and were used for such highly hazardous tasks as cleaning the machinery. In the early 1860s, an estimated one-fifth of the workers in Britains textile industry were younger than 15. Industrialization also meant that some craftspeople were replaced by machines. Additionally, urban, industrialized areas were unable to keep pace with the flow of arriving workers from the countryside, resulting in inadequate, overcrowded housing and polluted, unsanitary living conditions in which disease was rampant. Conditions for Britains working-

class began to gradually improve by the later part of the 19th century, as the government instituted various labor reforms and workers gained the right to form trade unions.)1 As the Industrial Revolution started to grow and spread throughout the World it raised subsequently raised many problems for the society as a whole and the people directly concerned with industrialization, mainly the employees. In the early stages there were many groups and individuals who opposed the idea of machines, staged protests at that time. There are individuals who still think that industrialization was a bad idea and support it by giving arguments on the issues of pollution, distribution of wealth, human rights violations hazardous raw materials used in production etc. With the advent and then modernizing of Industrialization many issues have been raised specially by the employees and other people concerned. One of the most positive factors of the modernization of industries has been the formation of trade unions and the proper procedure through which employees express their grievances and move towards collective bargaining to resolve their disputes.

GRIEVANCES:
Various scholars and authors have defined Grievances differently but all address to a single idea which is the dissatisfaction of employees. Grievance can be defined in the following words: Specific complaint or formal notice of employee dissatisfaction related to adequacy of pay, job requirements, work conditions, other aspects of employment, or an alleged violation of a collective bargaining agreement.(www.businessdictionary.com) According to Michael Jucius, A grievance can be any discontent or dissatisfaction, whether expressed or not, whether valid or not, and arising out of anything connected with the company that an employee thinks, believes, or even feels as unfair, unjust, or inequitable. From the above mentioned definitions of grievances, it is clear that when employees are experiencing the dissatisfaction or are uncomfortable with any of the rules or policies laid out to them in any form result in poor performance levels such as low productivity, absenteeism etc.

Dispute and Grievances have been used as interchangeable words mainly because of the major difference between the terms is that when grievances are expressed collectively or from the platform of a trade union they are said to be disputes. Broadly stating, employee grievances lead to industrial disputes. A grievance may take any of the following forms: Factual Imaginary Disguised

Factual:

When an employee is dissatisfied with his work because of an authentic or

factual reason like the breach of terms and conditions of employment or any other reasons that are clearly attributed to the management, t he employee is said to have a factual grievance, a nd so factual grievances arise when the rightful needs are unfulfilled.

Imaginary: When an employees grievance or dissatisfaction is not based on

any factual or valid reason but because of wrong observation, thoughts or information he has. Such a grievance is called an imaginary grievance. Though it is not the mistake of management, the responsibility of handling it still rests with the management.

Disguised:

An employee may be dissatisfied b e c a u s e o f reasons that are unidentified to t h e e m p l o ye e . This may be because of pressures and frustrations that an employee is feeling from other sources like his personal life. Personal life of an employee plays a vital role in his/her work performance, if the employee has troubles at home he will not be able to concentrate at work and everything around him would seem wrong. It is in our human nature to be effected by our surrounding environment. This may lead employees to have grievances and managers must identify these negative energies and try to eliminate them.

CAUSES OF GRIEVANCES:
Employee grievances can be triggered from anything in the workplace or outside the workplace. Following are the three major causes of employee grievances all over the World.

Working Conditions
Improper matching of the worker with the job. Changes in schedules or procedures. Non-availability of proper tools, machines and equipment for doing the job. Unreasonably high production standards. Poor working conditions. Bad employer employee relationship, etc.

Management Policy
Wage payment and job rates. Leave. Overtime. Seniority and Promotional. Transfer. Disciplinary action. Lack of employee development plan. Lack of role clarity.

Personal Maladjustment
Over ambition. Excessive self-esteem or what we better know as ego. Impractical attitude to life etc.

From the above clearly mentioned causes of grievances, working conditions and management policy are the most common reasons of industrial disputes are initiated. Managers must try to resolve these issues or dissatisfactions as soon as possible befor they take shape into a large industrial dispute.

THE GRIEVANCE PROCEDURE:

An organization must clearly define and communicate its grievance procedure for every employee of every level. The grievance procedure is one of the most essential pillars for removing the grievances of the employees. Different organizations may have different procedural systems which they have defined in order to satisfy the employees but the core concept is the same. Given below are the common steps in a general Grievance Procedure.

Source: www.mbaknol.com The picture clearly explains the common steps involved in a grievance procedure.

GRIEVANCES IN THE GLOBAL ARENA:

A recent global survey shows that while no nation is without its share of misery and pain, the pain caused by the fear of rising labor unrest is heavily concentrated among the rich and the economically rising nations. Findings from the latest global Index of Economic Pain provide a fascinating scale of pain among over 50,000 men and women across all continents of the world. The global survey shows the net global fear of rising labor unrest to be 42%. It is notable that the pain caused by fears of labor unrest is nearly the same in the emerging economies of BRIC, the financially wounded economies of Western Europe and the rich nations of the G7. The Index measures 48% in the four leading economies of BRIC, (Brazil, Russia, India and China) and 45% among the G7 including USA, Canada, Germany and others. While the top 10 most pained nations are heavily the economically upscale or rising nations, the least pained are heavily downscale economies. The poll findings also show that the miseries of the rich and rising are different from those of the poor and war-torn nations. The economic pain due to net fear of labor unrest is minus (-)19% in Afghanistan and minus (-)17% in Iraq both of whom are on top of the 10 most relaxed nations in term of labor unrest.

A key question in the global survey asked: So far as you are concerned, do you think that in 2012, economy related protests and industrial disputes in (your country) will increase, decrease, or remain the same? According to the WIN-Gallup International Global Barometer of Economic Pain 55% believe that economy related protests and industrial disputes will increase, 14% believe that it will decrease while 25% believe that it will remain the same. However 7% did not give a view. THE TOP 10 MOST PAINED NATIONS:

Countries
Ireland France China Belgium Lebanon Nigeria Netherlands Bosnia and Herzegovina Italy Finland

Increase
74% 72% 71% 67% 66% 66% 65% 58% 56% 56%

Decrease
4% 4% 8% 6% 11% 22% 5% 8% 7% 6%

Remain the Same

22% 24% 17% 21% 17% 4% 29% 24% 33% 36%

Dont Know
0% 0% 3% 5% 7% 8% 1% 9% 4% 3%

Net Pain
70% 68% 63% 61% 55% 44% 60% 50% 49% 50%

Source: http://galluppakistan.blogspot.com THE TOP 10 MOST RELAXED NATIONS:

Countries Afghanistan Iraq Vietnam Moldova Uzbekistan Ghana Austria Kenya South Africa Georgia
Increase Decrease Remain the same Dont know / no response Net Pain

24% 26% 24% 18% 11% 34% 45% 35% 42% 27%

43% 43% 36% 27% 18% 41% 49% 33% 40% 22%

27% 22% 31% 27% 52% 6% 2% 14% 16% 26%

6% 9% 9% 28% 19% 18% 3% 19% 3% 25%

-19% -17% -12% -9% -7% -7% -4% 2% 2% 5%

Source: http://galluppakistan.blogspot.com

INTERNATIONAL LABOR ORGANIZATIONS:

Since the industrial revolution and subsequently its modernization it has been very crucial and at times, very hard for employees to stand up for their rights and express their grievances. Trade or labor unions have made it more easy and centralized for employees and for the employers to adhere to the problems and dissatisfactions of their workforce. The popularity of trade unions have increased due to their successes in resolving conflicts and securing employee rights given below is the density of employees who are members of various trade unions throughout the world

Source: www.wikipedia.org

International Labor Organization:

The International Labour Organization (ILO) is the only tripartite U.N. agency with government, employer, and worker representatives. This tripartite structure makes the ILO a unique forum in which the governments and the social partners of the economy of its 183 Member States can freely and openly debate and elaborate labour standards and policies.( http://www.ilo.org) The International Labor Organization has raised and resolved employee grievances since it was established in 1919. It has played a crucial role in the development of employees and the unions that represent them and has passed many resolutions and devised international laws on issues such as employment and income standards, working conditions, employee discrimination, forced and child labor etc.

GRIEVANCES IN THE NATIONAL ARENA:

The total labor force of Pakistan is comprised of approximately 37.15 million people, with 47% within the agriculture sector, 10.50% in the manufacturing and mining sector and remaining 42.50% in various other segments. The below stated laws are taken from the constitution of Pakistan which illustrates the rights and freedom given to the Pakistan labor force:

1) Article 11 of the constitution prohibits all forms of slavery, forced labor and child labor. 2) Article 17 provides for a fundamental right to exercise the freedom of association and the right to form unions. 3) Article 18 proscribes the rights of its citizens to enter upon any lawful profession or occupation and to conduct any lawful trade or business. 4) Article 25 lays down the right to equality before the law and prohibition of discrimination on the grounds of sex alone. 5) Article 37 (e) makes provision for securing just and humane conditions of work, ensuring that children and women are not employed locations unsuited to their age or sex and for maternity benefits for women in employment. Since the emergence of Pakistan there have been many amendments in the labor laws section of the Constitution of Pakistan, many have strived for the better

working of the labor industry but until now we have only seen mere changes in the documentation but no actual working when it comes to implementation. Thus with such ignorance many grievances of the labor industry have been aroused. As previously provided information tells us that Pakistans 47% labor force works in the agriculture sector, it is the highest number of labor representation in the labor industry but many grievances are seen here. This labor force has a very low standard of living and also contains the highest number of child labor, their food consumption relies on their employer and even their houses are made of sand. These are the same people who are affected the most when an economic change takes place and also the one who are directly in the face of floods. In the previous year 2011 the floods which came all across the country destroyed many of the fields and with them the households and even the hopes of these people. Within these people are the women who are exposed to the cases of karo kari, in many such cases innocent women are blamed to be guilty of having an affair with someone who has some property entitled to him and then it turns out to be a massacre all around the village. The other 10.2% work in manufacturing and mining industry, this area is also ignored by the federal and provincial governments. Their health and safety procedures are not provided and the conditions in which this labor is exposed to work are extremely hazardous; it affects their health, mind and body. Even after working in such conditions they are forced to do overtime in exchange of some compensation but that compensation is not worth anything when it comes to their health and safety. The employer ignores all their rights of being a labor and uses them just to his advantage and own economic benefits. Finally the last 42.50% work in different factories, commercial industries, governmental offices, government firms, private organizations and others. Again the bottom line labor deals with the hardest of time and less of the pay. The middle level works the most but in decent offices and respectable designations where as the top management enjoys the most of the revenues generated and superiority designations and also the highest level of prestige. Ill working conditions are provided to labor and discrimination is their biggest source of demotivation, which also sometimes turns an honest worker into a thief by stealing of some appliance. The extent of discrimination is that lady workers who are just at the age of their

education are working in private firms which prepare clothes for other people. For their work they are provided a very little amount of money through which they cannot live a proper life style.

CONCLUSION:
In details of the facts and laws provided it is my personal opinion that a grievance arises when a labor doesnt gets his worth, in every organization there are hardworking employees who try their best to prosper the organization but such forces like discrimination, personal jealousy, poor working conditions which demotivates the employees and give a wrong perception of the organization. Also some employees who choose the way of corruption give a massive loss to the organization through which the entire labor force suffers where as in agriculture sector there is a big problem of illiteracy and people are unknown of the rights they even have. It is strongly recommended that the government should implement the rules which they themselves have listed, free education should be provided to the labor specially in agriculture sector and one thing more I would like to add here is that the private organizations which do not increase the wages of labor as by government order must be scrutinized and proper pay scale should be provided to every employee through which he could at least satisfy his basic needs and if any economic change occurs it is the responsibility of the organization to help the labor to tackle the economic trend.

REFERENCES:
1. http://www.history.com/topics/industrial-revolution

2. http://www.businessdictionary.com/definition/grievance.html#ixzz1vizzi69C
3. http://www.egyankosh.ac.in/bitstream/123456789/39070/1/Unit-10.pdf 4. www.mbaknol.com/wp-content/uploads/2010/06/grievenceprocedure.jpg&w=657&h=616&ei=pGi9T47WH4H0gaZo81D&zoom=1&iact=hc&vpx=833&vpy=346&dur=1049&hovh=217&hovw=232&tx=108& ty=86&sig=116931366191269095158&sqi=2&page=1&tbnh=146&tbnw=156&start=0&ndsp=2 1&ved=1t:429,r:11,s:0,i:93 5. http://galluppakistan.blogspot.com/2012/02/rising-fear-of-labor-unrest-and.html 6. http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/--webdev/documents/publication/wcms_082367.pdf 7. http://en.wikipedia.org/wiki/Trade_union