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Grievance Procedure and Collective Bargaining



Grievance Arise:  Difference of opinion or thought  Position of trade union in the organization  Demand for labour welfare facilities.Grievances: It is a feeling pf dissatisfaction among workers regarding anything concerned with their work.  Doubts and fear  Any social injustice  Policies and procedure are not followed strictly .

practices and procedure of the company  The management also comes to know the behavior and attitude of the supervisor  It also reveals the dissatisfaction.  It gives an opportunity to the worker to express their feeling  It heightens the moral of the people  Few complaints need systematic handling procedure. .Importance of Grievances Handling :  Management comes to know the workers think about policies. frustration or the state of satisfaction in the worker mind.

DEFINITION • Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance. Step-ladder policy . 1. Open door policy 2. The grievance procedures differ from organization to organization.

• However. operational employees may feel shy to go to top management. . the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. it is believed that open door policy is suitable for executives.Open door policy • Under this policy. in bigger organizations. • Moreover. top management executives are usually busy with other concerned matters of the company. Such a policy works well only in small organizations.

Step ladder policy • Under this policy. . The departmental head discusses the problem with joint grievance committees to find a solution. • If the employee is not satisfied with superior’s decision. then it may be referred to chief executive. • In this procedure. • If the chief executive also fails to redress the grievance. • However. then he discusses his grievance with the departmental head. he presents his problem to his immediate supervisor. whenever an employee is confronted with a grievance. if the committee also fails to redress the grievance. the aggrieved employee has to follow a step by step procedure for getting his grievance redressed. then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties.


” . “Collective bargaining is the term used to describe a situation in which the essential conditions of employment are determined by bargaining process undertaken by representatives of a group of workers on the one hand and of one or more employers on the other. “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.Collective Bargaining • According to Dale Yoder.” • In the words of Flippo. which specifies the nature of employee-employer-union relationship.

It is a continuous process. It involves not only the negotiation of the contract. • IV. • II. but also the administration of the contract. The representatives of both workers and management participate in bargaining. It is a method of partnership of workers in management . It is a flexible and dynamic process. • III. The parties have to adopt a flexible attitude through the process of bargaining. It is a collective process.Features of Collective Bargaining • I. It establishes regular and stable relationship between the parties involved.

Effective collective bargaining strengthens the trade unions movement. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits.Importance of Collective Bargaining Importance to employees • • • • • • Collective bargaining develops a sense of self respect and responsibility among the employees. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry. Moreover. . unilateral actions by the employer are also discouraged. as a result of which the chances for conflicts are reduced. • It helps in securing a prompt and fair settlement of grievances. Collective bargaining increases the morale and productivity of employees. It increases the strength of the workforce. increasing their bargaining capacity as a group. It restricts management’s freedom for arbitrary action against the employees. thereby.

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

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

overtime rates. training. employee discipline. Health insurance Plan.e issues as seniority. work rules.  Negotiating:  Settlement and contract Agreement . employee health and safety. • Institution Issues: consists of the rights and duties. Paid holidays. Paid vacation.e living adjustment. Retrenchment pay. discharge procedure. • Administrative Issue: i. • Supplementary economic benefits: i.Collective Bargaining • Process of Collective Bargaining:  Identifying Bargaining issue: • Wage related Issue: i.e Pension Plans. wage defferentials. wage adjustment.

• The attitude and desire of the employees. as reflected in past negotiation. • The financial position fo company and its ability topay. • The attitude of the management towards various issue. .Collective Bargaining • Process of Collective Bargaining:  Preparing for negotiation: • Determine the general size of economic package the company process to occur.

its intensity and nature and views of both the parties to reach the solution.Collective Bargaining • Process of Collective Bargaining:  Settlement and contract agreement: • Chief negotiator from the management side directs the settlement process. • He presents the problem. . • Then solution puts on paper taking legislations into considerations • Both parties sign the agreement which in turn becomes binding contract for both the parties.

Collective Bargaining • Collective Bargaining as a method and Tactics of Settlement of disputes:  A rules making and legislative process. It may be settled to the unwritten norms of shop practices. in the sense that it formulates the terms and conditions under which labour and management will cooperate and work together over a certain stated period. Where the agreement does not specifically cover the disputes. .  A judicial Process .  An executing process: both management and trade union official share the responsibility of enforcing the rules. for in every collective agreement there is a grievance procedure to settle any disputes the application of the agreement.

Due to the dominance of outsiders in trade unionism in the country. Since most of the trade unions are having political affiliations. Moreover. III. • • • • . V. II. trade union movement has leaned towards political orientations rather than collective bargaining.e. the faith in the collective bargaining process is discouraged. the parties to the dispute may request the Government to refer the matter to adjudication and the Government will constitute the adjudication machinery. labour court or industrial tribunal. As a result.. There has been very close association between the trade unions and political parties. Thus. who use the unions and their members to meet their political ends. There is a lack of definite procedure to determine which union is to be recognised to serve as a bargaining agent on behalf of the workers IV. i. In India.Problems of Collective Bargaining • I. there is multiplicity of unions which are weak and unstable. which further hinder the process of collective bargaining between the labour and the management. they continue to be dominated by politicians. and do not represent majority of the employees. the law provides an easy access to adjudication. Under the Industrial Disputes Act. there are inter-union rivalries.