Resolving Disputes Causes of Disputes 1 Wage Demands

Resolving Disputes

Causes of Disputes 1. Wage Demands – The demand for wages has never been fully met because of inflation and high cost of living – Managements and unions will have a wage agreement generally valid for three years 2

Causes of Disputes (Contd. ) 2. Temp and Contract Labour – What is more relevant in this context is the wage disparities that exist between a regular employee and his counterpart who is a temp or the on contract – The Contract Labour Act, 1970 stipulates that no contract labour can be appointed for a permanent work – Disparities in remuneration, step motherly treatment, and social disconnect make a large percentage of employees vulnerable and potential source of unrest 3

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3. Political Interference – Major trade unions are affiliated to political parties – Distant ideological issues divide and fragment unions on party lines – Inspired by their political ideologies, certain unions refuse to sign an agreement even if it is favourable to all the workers – Every political party somehow engineers strikes, gheraos and bandhs to demonstrate its political strength 5

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Causes of Disputes (Contd. ) 4. Technology – Fear of new technology, skill gap and resistance to change are some points relevant in this context – One gets the impression that eight hours of intense physical work is seen as the ceteris paribus of the assembly line – For a worker, line acceleration can be a harrowing experience 7

5. Trade Unions – The Constitution of India guarantees a right to form unions in industrial establishments. – However, management of an organisation refuses to recognize workers‘ union sparking protests, strikes and even violence – At the other end of the spectrum is the presence of multiple unions resulting in rivalry among them – Multiplicity of unions poses peculiar problems to management. One such problem relates to the authenticity of memberships 8

Strike video 9

Settlement of Disputes Settlement Mechanisms 10

Settlement of Disputes (Contd. ) 1. Collective Bargaining – Approaches to Collective Bargaining: • Process of Social Change • Peace Treaty • Example: In USA , India 11

Settlement of Disputes (Contd. ) • Collective Bargaining – Process The Collective Bargaining Process 12

Settlement of Disputes (Contd. ) 2. Code of Discipline – To ensure that employers and employees recognise each other’s rights and obligations – To promote constructive co-operation between the parties concerned at all levels – To secure settlement of disputes and grievances by negotiation, conciliation and voluntary arbitration – To eliminate all forms of coercion, intimidation, and violence in IR – To avoid work stoppages 13

Settlement of Disputes (Contd. ) 3. Grievance Procedure – All labour agreements contain some form of grievance procedure – Conditions which may give rise to a grievance are: • A violation of law • A violation of company rules • A change in working conditions or past company practices • A violation of health and/or safety standards 14

Settlement of Disputes (Contd. ) • Grievance Procedure 15

Settlement of Disputes (Contd. ) 4. Arbitration – Arbitration is a procedure in which a neutral third party studies the bargaining situation, listens to both the parties and gathers information, and then makes recommendations that are binding on the parties – Some weaknesses are: • Arbitration is expensive • Too much arbitration is not a sign of healthy IR • Example: IN UK 16

Settlement of Disputes (Contd. ) 5. Conciliation – Conciliation is a process by which representatives of workers and employers are brought together before a third party with a view to persuading them to arrive at an agreement by mutual discussion between them – The Industrial Disputes Act, 1947 provides for the appointment of conciliators – Main duty of a conciliation officer shall be to mediate in and promote the settlement of industrial disputes – The other duties are: • To hold conciliatory proceedings • To investigate the dispute • To send a report and memorandum of settlement to the appropriate government • To send a full report to the appropriate government setting forth the steps taken, in case no settlement is arrived at 17

Settlement of Disputes (Contd. ) • Adjudication – Adjudication means a mandatory settlement of an industrial dispute by a labour court or a tribunal – Disputes are generally referred to adjudication on the recommendation of the conciliation officer who had dealt with them earlier – The system of adjudication is the most significant instrument of resolving disputes – It has been criticised because of the delay involved in resolving conflicts – Continued dependence on adjudication deprives the trade unions of their right to recognize and consolidate their strength – Example: India 18