Tag: Industrial Relations

Perhaps the main cause or source of poor industrial relations resulting in inefficiency and labour unrest is mental laziness on the part of both management and labour. Management is not sufficiently concerned to ascertain the causes of inefficiency and unrest following thelaissez-fairepolicy until it is faced with strikes and more serious unrest.

Even with regard to methods of work, management does not bother to devise the best method but leaves it mainly to the subordinates to work it out for themselves. Contempt on the part of the employers towards the workers is another major cause.

However, the following are briefly the causes of poorindustrial relations:

1. Mental inertia on the part of management and labour;

2. An intolerant attitude of contempt towards the workers on the part of management.

3. Inadequate fixation of wage or wage structure;

4. Unhealthy working conditions;

5. Indiscipline;

6. Lack of human relations skills on the part of supervisors and other managers;

7. Desire on the part of the workers for higher bonus or DA and the corresponding desire of the employers to give as little as possible;

8. Inappropriate introduction of automation without providing the right climate;

9. Unduly heavy workloads;

10. Inadequate welfare facilities;

11. Dispute on sharing the gains of productivity;

12. Unfair labour practices, like victimization and undue dismissal;

13. Retrenchment, dismissals and lock-outs on the part of management and strikes on the part of the workers;

14. Inter-union rivalries; and

15. General economic and political environment, such as rising prices, strikes by others, and general indiscipline having their effect on the employees’ attitudes.

There are generally three main actors in the industrial relations,which are directly involved, namely, employees, employer and government or society:

Employersas Actors in the Industrial Relations

Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introducetechnological changes.

Employees

Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions.

Government

The central and state government influences and regulatesindustrial relationsthrough laws, rules, agreements, awards of court and the like. It also includes third parties and labor and tribunal courts. The diagram below depicts the industrial relations system. Industrialconflictsare the results of several socio-economic, psychological and political factors.

Various lines of thoughts have been expressed and approaches used to explain his complex phenomenon. One observer has stated, “An economist tries to interpret industrial conflict in terms of impersonal markets forces and laws of supply demand.

• To a politician, industrial conflict is a war of different ideologies, perhaps a class-war.
• To a psychologist, industrial conflict means the conflicting interests, aspirations, goals, motives and perceptions of different groups of individuals, operating within and reacting to a given socio-economic and political environment”.

In summary all the 3 actors interact the way illustrated in this picture:

Industrial relations define relationships between employers and employees toward each other in terms of supervision, direction, planning and coordination of organizational activities, with minimal human effort and functions; all this is done with an enthusiastic spirit taking into consideration the safety of all employees. Industrial relations may also be defined as relations between employees and management.

Definition and Meaning of Industrial Relations

In the broad sense, industrial relations cover all such relationships that a business enterprise maintains with various sections of the society such as workers, state, customers and public who come into its contact. The concept of Industrial relations has been defined using various terminologies, but in the strictest sense, it is essentially the relationship between management and labour. The full concept of industrial relations (IR) is the organization and practice of multi-pronged relationships between labour and management, unions and labour, unions and management in the industry.

The term ‘industrial relations has been variously defined;

Dale Yoder (1982) defines IR as a “whole field of relationships that exists because of the necessary collaboration of men and women in the employment process of an industry.” Yoder understood industrial relations as the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreements or labour contract.

John Thomas Dunlop (1993) defined industrial relations as “the complex interrelations among managers, workers and agencies of the governments”. Dunlop regarded IR as a system of rules regulating employment and the ways in which people behave and relate to each other at work. The systems theory of Industrial Relations expresses that the role of the system is to produce the regulations and procedural rules that govern how much is distributed in the bargaining process and how the parties involved in the industrial relations scene relate to each other.

The system is expressed in more or less formal and informal ways, in legislation and statutory orders, in trade orders, in trade unions’ regulations by collective agreements and arbitration awards. In social conventions, managerial decisions, and accepted “customs and practice. The “rules” may be defined and coherent or ill-defined and incoherent.

In industrial relations, therefore, one seeks to study how people get on together at their work, what difficulties arise between them, how their relations including wages and working conditions etc., are regulated.

Background to the field of Industrial Relations

Industrial relations constitute one of the most delicate and complex problems of modern industrial society. This phenomenon of a new complex industrial set-up is directly attributable to the emergence of ‘The Industrial Revolution”. The pre-industrial revolution period was characterized by a simple process of manufacture, small scale investment, local markets and a small number of persons employed. All this led to close proximity between the manager and the managed. Due to the personal and direct relationship between the employer and the employee it was easierto secure the cooperationof the latter.

Any grievance or misunderstanding on the part of either party could be promptly removed. Also, there was no interference by the State in the economic activities of the people. Under such a set-up industrial relations were simple, direct and personal.

This situation underwent a marked change with the advent of the industrial revolution, size of the business increased needing investment of enormous financial and human resources, there emerged a new class of professional managers causing divorce between ownership and management, and relations between the employer and the employer became estranged and gradually antagonistic. This new set-up rendered the old philosophy of industrial relations irrelevant and gave rise to complex, indirect, and impersonal industrial relations.

The industry today is neither viewed as a venture of employers alone nor profit if considered as its sole objective. It is considered to be a venture based on purposeful cooperation between management and labour in the process of production and maximum social good is regarded as its ultimate end and both management and employees contribute in their own way towards its success.

Similarly, labour today is no more an unorganized mass of ignorant workers ready to obey without resentment or protest the arbitrary and discretionary dictates of management. The management has to deal with employees today not as individuals but also as members of organized social groups who are very much conscious about their rights and have substantial bargaining strength. Hence, the objective of evolving and maintaining sound industrial relations is not only to find ways and means to solve conflicts to resolve differences but also to secure cooperation among the employees in the conduct of industry. But maintaining smooth industrial relations is not an easy task.

Almost all the industrialized countries of the world face the problem of establishing and maintaining good management-worker relationships in their industries. Each country has sought to find out a solution, depending upon its economic, social and political environment. However, industrial conflict still arises and therefore establishment and maintenance of satisfactory industrial relations forms an important plank in the personnel policies of the modern organization.

Coverage of industrial Relations

Industrial relations, thus, include both ‘industrial relations’ and ‘collective relations’ as well as the role of the state in regulating these relations. Such a relationship is therefore complex and multidimensional resting on economic, social, psychological, ethical, occupational, political and legal levels.

There are mainly two sets of factors that determine the state of industrial relations – described as ‘institutional factors’ include type oflabour legislation, the policy of state relating to labour and industry, extent and stage of development of trade unions and employers’ organizations and the type of social institutions.

The other set of factors, described as ‘economic factors include the nature of economic organization capitalist, socialist technology, the sources of demand and supply in the labour market, the nature and composition of labour force etc.

The maintenance of harmoniousindustrial relations is of vital importance for the survival and growth of the industrials enterprise. The significance of industrial relations is in the fact that their quality increase the efficiency and hence prosperity, reduced turnover and other tangible benefits to the organization.

The significance of industrial relations can be summarized as below:

1. It establishes industrial democracy: Industrial relations means settling employee problems through collective bargaining,mutual cooperationand mutual agreement amongst the parties i.e., management and employees’ unions. This helps in establishing industrial democracy in the organization which motivates them to contribute their best to the growth and prosperity of the organization. If contributes to economic growth and development: Good industrial Relations lead to increased efficiency and hence higher productivity and income. This will result in the economic development of the economy.
2. If improves the morale of the workforce: Good industrial relations, built-in mutual cooperation and commonly agreed approach motivate one to contribute one’s best, result in higher productivity and hence income, give more job satisfaction and help improve the morale of the workers.
3. It ensures optimum use of scarce resources: Good and harmonious industrial relations create a sense of belongingness and group-cohesiveness among workers, and also a congenial environment resulting in less industrial unrest, grievances and disputes. This will ensure optimum use of resources, both human and materials, eliminating all types of wastage.
4. It discourages unfair practices on the part of both management and unions: Industrial relations involve setting up machinery to solve problems confronted by management and employees through mutual agreement to which both these parties are bound. This results in the banning of unfair practices being used by employers or trade unions.
5. It prompts the enactment of sound labour legislation: Industrial relations necessitate the passing of certain labour laws to protect and promote the welfare of labour and safeguard the interests of all the parties against unfair means or practices.
6. It facilitates change: Good industrial relations help in the improvement of cooperation, teamwork, performance and productivity and hence in taking full advantage of modern inventions, innovations and other scientific and technological advances. It helps the workforce to adjust themselves to change easily and quickly.

OBJECTIVES OF INDUSTRIAL RELATIONS

1. To bring better understanding and cooperation between employers and workers.
2. To establish a proper channel of communication between workers and management.
3. To ensure constructive contribution of trade unions.
4. To avoid industrial conflicts and to maintain harmonious relations.
5. To safeguard the interest of workers and the management.
6. To work in the direction of establishing and maintaining industrial democracy.
7. To ensure workers’ participation in decision-making.
8. To increase the morale and discipline of workers.
9. To ensure better working conditions, living conditions and reasonable wages.
10. To develop employees to adapt themselves for technological, social and economic changes.
11. To make positive contributions for the economic development of the country.

SCOPE OF INDUSTRIAL RELATIONS

The scope of industrial relations includes all aspects of relationships such as bringing cordial sand healthy labour management relations, creating industrial peace and developing industrial democracy.The cordial and healthy labour management relations could be brought in:
• by safeguarding the interest of the workers;
• by fixing reasonable wages;
• by providing good working conditions;
• by providing other social security measures;
• by maintaining healthy trade unions;
· by collective bargaining. The industrial peace could be attained:
• by setting industrial disputes through mutual understanding and agreement;
• by evolving various legal measure and setting up various machineries such as Works Councils, Boards of Conciliation, Industrial Relations Courts etc.
The industrial democracy could be achieved:
• by allowing workers to take part in management; and by recognition of human rights.

There are a couple of principles of good industrial relations, but all depend on the efficiency of the players in the system.

Here are the major principles:

• The willingness and ability of management and trade unions to deal with the problems freely, independently and with responsibility
• Recognition of collective bargaining.
• Desirability of associations of workers and management with theGovernmentwhile formulating and implementing policies relating to general economic and social measures affecting industrial relations.
• Fair redressal of employee grievances by the management
• Providing satisfactory working conditions and payment of fair wage.
• Introducing a suitable system of employees’ education and training.
• Developing a proper communication system between management and employees.
• To ensure better working conditions, living conditions and reasonable wages.
• To develop employees to adapt themselves for technological, social and economic changes.
• To make positive contributions to the economic development of the country.

Role of State in Good Industrial Relations

In recent years the State has played an important role in regulating industrial relations but the extent of its involvement in the process is determined by the level of social and economic development while the mode of intervention gets patterned in conformity with the political system obtaining in the country and the social and cultural traditions of its people.

The degree of State intervention is also determined by the stage of economic development. For example, in a developing economy like Zambia, work-stoppages to settle claims have more serious consequences than in a developed economy and similarly, afree market economymay leave the parties free to settle their relations through strikes and lockouts but in other systems varying degrees of State participation is required for building up sound industrial relations.

In Zambia, the role played by the State is an important feature in the field of industrial relations and State intervention in this area has assumed a more direct form. The State has enacted procedural as well as substantive laws to regulate industrial relations in the country.

Role of Management in Industrial Relations

•  Managements must delegate authority to their employees commensurate with responsibility.

• They must evolve well-conceived and scientific wage and salary plans so that the employees may receive just compensation for their efforts. They must devise, develop and implement a proper incentive plan for personnel at all levels in the organization.
• There must be a well-planned communication system in the organization to pass on the information and to get feedback from the employees.
• Managements must pay personal attention to the problems of their employees irrespective of the fact whether they arise out of job environment or they are of personal nature.
• They must evolve, establish and utilize appropriate types of machinery for the speedy redressal of employees’ grievances.
• Managements must provide enlightened leadership to the people in the organization.
• An environment of mutual respect, confidence, goodwill and understanding on the part of both management and employees in the exercise of their rights and performance of their duties should prevail for maintaining good industrial relations.

The management has a significant role to play in maintaining smooth industrial relations. For a positive improvement in their relations with employees and maintain sound human relations in the organization, the management must treat employees with dignity and respect.

Employees should be given ‘say’ in the affairs of the organization generally and wherever possible, in the decision-making process as well. A participative and permissive attitude on the part of management tends to give an employee a feeling that he is an important member of the organization, a feeling that encourages a spirit of cooperativeness and dedication to work.

• Management must make genuine efforts to provide a congenial work environment.
• They must make the employees feel that they are genuinely interested in their personal development.
• To this end, adequate opportunities for appropriate programmes of training and development should he provided.

The trade unions have a crucial role to play in maintaining smoothindustrial relations. It is true that the unions have to protect and safeguard the interests of the workers through collective bargaining.

Responsibilities of Trade Unions in maintaining industrial relations

But at the same time, they have equal responsibility to see that the organizations do not suffer on account of their direct actions such as strikes, even for trivial reasons.
· They must be able to understand and appreciate the problems of management and must adopt a policy of ‘give and take’ while bargaining with the management.
· Trade unions must understand that both management and workers depend on each other and any sort of problem on either side will do harm to both sides. Besides public are also affected, particularly when the institutions involved are public utility organizations.

Trade union relationship vis-à-vis management is conditioned by accepting the fact that management presents an indissoluble partnership amongst interest, power and responsibility in the societal context.

Appreciation of Workers expectations

Trade Union relationship vis-à-vis workers implied that it should appreciate workers’ aspirations and expectations that trade union is essentially a protective, friendly society, meant primarily to manage and handle their economic, social and cultural problems.

This is a mutual ‘give and take’ transactional relationship between representatives of two institutions that is workers on one side and the employing organization on the other to the mutual benefit of both. In the unionized organization, the collective bargaining process can be thought of as a complex flow of events that occur in the determination of wages and fringe benefits and other working conditions. Union bargaining is used in a broad sense to include those in professional organizations that bargain with employees over variety of matters that are the most important aspect of the collective bargaining process.

PURPOSE OF COLLECTIVE BARGAINING

1. To reduceIndustrial conflictas it providesunderstandingof each other;
2. It facilitates flow ofcommerce and operations;
3. It increasesproductivityandmotivation;
4. It increasesresponsibilityandloyaltyof workers.

ASPECTS OF THE COLLECTIVE BARGAINING PROCESS

These include formation of unions;

• Pre-negotiations’ strategies and facts on ages, working hours and conditions of service.
• The Collective Bargaining process itself;
• Process administering of the agreement.

TYPES OF BARGAINING RELATIONSHIPS

Selekman’s Categories of bargaining Relationships

Counter Aggression (Confrontational)

This type is characterized by union aggressively trying to extend its voice in the company’s operations, with management trying hard to keep unions in check.

Conflict Relationship(more confrontation)

This is characterized by employers who acceptunionand attempt to get rid of the union at every opportunity.

Power Relationship

This type of bargaining is characterized by both parties attempting to gain any possible advantage from the situation depending on the economic conditions.

Deal Relationship

This relationship feature secret relationship and understanding been union leader and top management with minimum involvement of rank and file workers.

Collusion Relationship

This has much less desirable constraints than the deal bargaining relationship and it involves manoeuvers to gain or maintain mutual advantage over the public or competitors by controlling the market price or raw materials e.g. Kitwe Council and Market levies.

Accommodation Relationship

This type is characterized bytoleranceandcompromiseon the part of both parties but not forgetting the respective rights of their constituencies.

Mutual Relationship

This relationship between the workers and employing organization is characterized by mutual concern over matters above and beyond ages, hours and working conditions such as matters of efficiency and technological change. Both accommodation and mutual relationship are characterized by an avoidance of extreme display of power.

TYPES OF BARGAINING

The AuthorsWalton & McKenzieargued that there are 4 types of bargaining:

1. Distributive bargainingrefers to the situation in which the goals of the two parties are in conflict and which is assumed that the total values to be bargained are fixed so that someone’s gain is another’s loss.
2. Integrative bargainingrefers to situations in which goals are not perceived as conflicting but in which there is a problem of concern to all parties e.g. production, safety and quality.
3. Attitudinal structuring bargainingwhich is part of either distributive or integrative bargaining. It refers to the activities in and surrounding negotiations that serve to change attitude of relations.
4. Intra-organizational bargainrefers to activities that take place within the union or within company management, to bring the expected principles into alignment with those of chief negotiators. In short, there is a good deal of bargaining that goes on within unions and company management about the position to be taken by the chief negotiators of the two sides in actual collective bargaining sessions.

DISTRIBUTIVE BARGAINING

1. Pre-negotiation proposals from members of union and present proposals to management.
2. Management goes through the proposals rejecting some and accepting others. Management also offers a list of their demands – counter proposals.
3. Initial discussion takes place;
4. Management presents agreements;
5. Parties proceed to hard bargaining starting with the non-economic demands with provision, management concedes to certain items provided the union drops certain others or provided union agrees to certain management desired contract changes.
6. Negotiating the costs – items, monetary wages and fringe benefits in particular tedious with the company’s starting from the position that the wage structure is already satisfactory and that the union is asking a high increase. Both sides face the problem the other to move in the direction of the demand and trying to make the opponent reach the final position without itself giving away its final position.
7. The procedure continues until the company has revealed the maximum amount it will grant including both wages and fringe benefits, and the union has essentially revealed the minimum it will accept if the difference is small the two parties can split into two and sign the agreement. If the difference is big and no compromise is in sight the following may take place:
8. a) a dispute will be raised
9. b)you must agree to have a reconciliatory
10. c)if this is not possible, the union must seek a strike authorization by way of secret vote from the general membership.
11. If the union resolves to go on a strike, the contest becomes one of economic pressure and willing to make a sacrifice. One or both parties may by this time advertise its position and supporting arguments.
12. When agreement is finally reached, usually after concurrence by the union members both parties may switch from belligerent to a more shaking hands, joking and making statements about the contract being fair and just to employees and stakeholders.

INTEGRATIVE BARGAINING

This type is far less prevalent than distributive. The integrative bargaining requires a change in attitude on both sides, i.e. management and union from an offensive-defensive position to genuine interest in and concern for joint exploration of problems, fact gathering and problem solving. It becomes a way of life for the two parties.

Examples may be seen through:

a.Quality of work life (QWL)

Quality of work life is a systematic effort to create work situations that enhance employees’ motivation and commitment, the factors that contribute to high levels of organizational performance. QWL results (benefits) are increased output, quality products and worker participation. These improve affecting the organization.

For QWL to succeed, the work place must be more democratic. Committees are set up with representatives from both the workers and management to determine what work has to be done. This is called worker participation. The QWL programs support highly democratic treatment of employees at all levels and encourage their participation in decision-making

The process of changing the way jobs are done by rest maturing to make them more interesting to workers. This is done in two ways:-

i).Job enlargement (increasing the jobs). Employees have more responsibilities and use broader skills as well as perform a wide variety of different tasks at the same level.

ii).Job enrichment (vertical). This design of jobs increases addition of fast employees levels responsibility and control.

iii).Quality circles.These are small groups of volunteers usually around ten (10) who meet regularly to identify and solve problems related to the quality of work they perform and the conditions under which people do their jobs. Organizations may have so many quality circles dealing with specific areas. These groups are trained in problem solving.

Issues discussed and solved include:-

1. Reduction of vandalism or scrap or waste.
2. How to create safer working environment, developing employee skills, improving morale and leadership.
3. How to improve product quality.

Quality circles are good and effective at bringing short-term improvements in quality of work life but less effective in creating more permanent changes.

Once the short-term problems are solved quality circles are disbanded. Quality circles have been an innovation of the Japanese industry.

Benefits of Quality Circles

1) Increased job satisfaction, organization commitment, and hence reduces turnover among workforce.

2) Increased productivity as a result of reduction in cost and avoid defects.

3) Increased organizational effectiveness e.g. profitability and goal attainment.

4) Opportunities are provided to develop problem-solving abilities and increase job skills.

5) Co-operative attitude and a spirit of teamwork exist between management and employees.

The requirement of successful QWL is both management and labour must co-operate in designing the program. None of the two should take the advantage of the other. Once agreed by all concerned, programmes must be implemented. It is the responsibility of all employees from the highest-ranking management officer to the lowest level of employee to follow.