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

Types 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

Discipline refers to orderly behavior of employees in the workplace. It ensures adherence to rules, policies, and procedures, maintaining smooth operations and preventing misconduct.

The Industrial Employment (Standing Orders) Act, 1946 (not 1961)

Note: The correct year of the Act is 1946, not 1961.

Objective: The Act requires employers to define with certainty the conditions of employment and make them known to the employees.

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

Misconduct refers to any behavior or act by an employee which is against the rules, code of conduct, or norms of an organization.

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

Disciplinary action is the process undertaken by the employer to correct or punish an employee for violating rules or misconduct.

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)

It is a voluntary agreement between employers and trade unions adopted during the Indian Labour Conference in 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

A domestic enquiry is an internal investigation conducted by the employer when an employee is accused of misconduct.

Steps

1. Appointment of Enquiry Officer
2. Issuance of Charge Sheet
3. Conducting the enquiry with:
  • Witnesses
  • Documentary evidence
  • Opportunity for the accused to defend
4. Findings and submission of enquiry report
5. Disciplinary Authority decides on the final action

Principles of Natural Justice:

  • No one should be a judge in his own case.
  • The accused should get a fair chance to defend.
Discipline in the workplace is crucial for maintaining efficiency, productivity, and a positive work environment. Legal frameworks like the Industrial Employment (Standing Orders) Act, 1946, along with the Code of Discipline, ensure that disciplinary actions are fair, transparent, and justifiable.

Grievance Handling in Industrial Relations (IR)

A grievance is any discontent or dissatisfaction, whether expressed or not, whether valid or not, arising out of anything connected with the company that an employee thinks, believes, or even feels, is unfair, unjust, or inequitable.

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)

An industrial dispute is any conflict or difference between employers and employers, employers and workers, or workers and workers, which is connected with employment or non-employment or the terms of employment.

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

Preventive machinery aims to prevent disputes before they arise.

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.