Unit 2: Collective Bargaining
Collective Bargaining
Collective bargaining is a process of negotiation between employers and a group of employees (usually represented by a trade union) to determine the terms and conditions of employment such as wages, working hours, benefits, workplace safety, and other aspects of workers' compensation and rights.
Significance of Collective Bargaining
Procedure of Collective Bargaining
Collective bargaining is a vital process in modern labor relations. It empowers workers, promotes cooperation, and ensures a balanced and fair working environment, leading to industrial peace and improved productivity.
Discipline in Industry
The Industrial Employment (Standing Orders) Act, 1946 (not 1961)
Note: The correct year of the Act is 1946, not 1961.
Key Features
- Applicable to industrial establishments with 100 or more workers.
- Requires employers to prepare "Standing Orders" on:
- Classification of workers
- Work hours, leave, misconducts, suspension, termination, etc.
- Standing Orders must be certified by a Certifying Officer.
- Provides guidelines for maintaining discipline and handling misconduct.
Misconduct
Examples of Misconduct
- Insubordination
- Theft, fraud, or dishonesty
- Habitual late attendance or absenteeism
- Drunkenness or disorderly behavior
- Willful damage to company property
- Participation in illegal strikes
Disciplinary Action
Steps in Disciplinary Action Process
- Issue of Show Cause Notice
- Investigation or Preliminary Enquiry
- Holding a Domestic Enquiry
- Opportunity to be Heard
- Decision & Punishment
- Communication of Action Taken
Types of Punishments
Code of Discipline (1958)
Objectives
- Promote constructive cooperation.
- Avoid industrial disputes.
- Maintain discipline and industrial peace.
Key Provisions
- No strike or lockout without prior notice.
- No coercion or intimidation.
- Grievances to be resolved peacefully.
- Avoid unfair labor practices from both sides.
Domestic Enquiry
Steps
- Witnesses
- Documentary evidence
- Opportunity for the accused to defend
Principles of Natural Justice:
- No one should be a judge in his own case.
- The accused should get a fair chance to defend.
Grievance Handling in Industrial Relations (IR)
Grievance Settlement Procedure (As per Model Grievance Procedure)
A systematic grievance procedure ensures employee problems are addressed fairly and efficiently. The Model Grievance Redressal Procedure (adopted during the Indian Labour Conference) includes the following steps:
Industrial Disputes (as per Industrial Disputes Act, 1947)
Common Causes of Industrial Disputes
- Wage and salary issues
- Working conditions
- Layoffs and retrenchment
- Bonus or incentives
- Trade union rivalries
Preventive Machinery for Industrial Disputes in India
Settlement Machinery for Industrial Disputes in India
Settlement machinery comes into action after disputes arise.
Effective grievance handling and a strong preventive and settlement mechanism are essential for maintaining industrial peace and harmony. A structured approach reduces dissatisfaction, boosts morale, and ensures compliance with labor laws.
Employee Participation and Empowerment
Objectives of Employee Participation
Employee participation aims to involve workers in decision-making and enhance mutual trust and cooperation between employers and employees.
Objectives
- Promote industrial democracy
- Improve communication and transparency
- Enhance productivity and efficiency
- Encourage commitment and morale
- Reduce industrial conflicts and grievances
- Enable employees to contribute ideas and creativity
Employee Participation
Employee Participation refers to the involvement of employees in the decision-making process of the organization, especially in matters related to work, policies, safety, productivity, and welfare.
It can be:
- Informative: Only receiving information
- Consultative: Giving opinions
- Decisive: Taking part in actual decision-making
Advantages of Employee Participation
Employee Participation in India
Employee participation in India is both statutory and voluntary. Major developments include:
Methods of Employee Participation
Employee Empowerment
Employee empowerment is the process of giving employees the authority, resources, and responsibility to take decisions and act on their own, without waiting for management approval.
Key Elements of Empowerment
- Autonomy in work
- Access to relevant information
- Skill development & training
- Supportive culture and trust
- Recognition and accountability
Benefits of Empowerment
- Increased motivation and ownership
- Faster decision-making
- Enhanced customer satisfaction
- Better teamwork and leadership development
Employee Participation and Empowerment are essential tools for building an inclusive, productive, and democratic workplace. They not only increase employee satisfaction and performance but also create a culture of trust, innovation, and shared success.