Module 8 Industrial Relations Topics to be discussed: Need and importance of IR Industrial disputes Forms of disputes and methods of settling industrial disputes HRM in 21 st century: new trends and challenges of HRM
Industrial relations or employment relations is the multidisciplinary academic field that studies the employment relationship; that is, the complex interrelations between employers and employees, labor/trade unions, employer organizations and the state. The newer name, "employment relations" is increasingly taking precedence because "industrial relations" is often seen to have relatively narrow connotations ( Meanings, implications)
Industrial relation is the relationship between the employer and the individual worker and group of workers within the industry. J.T . Dunlop defined industrial relations as “the complex interrelations among managers, workers and agencies of the governments”. According to Dale Yoder “industrial relations is the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreement or labor contract”.
1. Need and importance of IR Industrial relations emphasizes on building employee’s confidence and boosting their morale to perform better than before . Better management of industrial relations in an industry is a sine qua non (essential) for the success of the industrial concern. It results in industrial peace which is essential for the countries, particularly for India, where the economy is being geared in a planned way to ameliorate (improve) the lot of the masses . With amicable industrial relations both the workers and managers continue to work on their respective position and contribute towards the overall productivity of the firm. Thus, IR ensures the continuity of production.
What are the moral dimensions of Industrial Relations? Industrial relations have moral dimensions too. It is unethical on the part of any management to take advantage of the helplessness of workers and exploit them. Unemployment compels workers – particularly illiterate and unskilled – to accept jobs, inhuman working conditions and niggardly Meager, poor) wages, notwithstanding.
2. Industrial disputes An industrial dispute is defined as a conflict or a difference in opinion between management and workers regarding employment. It is a disagreement between an employer and employees representative i.e. trade union. The issue of disagreement is usually pay or other working conditions . During an industrial dispute, both the parties try to pressurize each other to agree to their terms and conditions. The industrial unrest manifests itself as strikes, lock-outs, picketing, gheraos and indiscipline on the part of workers .
The definition of Industrial disputes is as follows – According to Section 2(k) of the Industrial Disputes Act, 1947 “industrial dispute” is defined as, “Any disputes or differences between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labor, of any person”.
What is the Industrial Disputes Act of 1947? According to Industrial Disputes Act 1947 Sec. 21 (K), “Any dispute or difference between the employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labor of any person .”
Forms of industrial disputes : 1. Strikes : Strike is the most important form of industrial disputes. A strike is a spontaneous and concerted withdrawal of labor from production. The Industrial Disputes Act, 1947 defines a strike as “suspension or cessation of work by a group of persons employed in any industry, acting in combination or a concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or accept employment”.
2. Lock-Outs: Lock-out is the counter-part of strikes. While a ‘strike’ is an organized or concerted withdrawal of the supply of labor, ‘lock-out’ is withholding demand for it. Lock-out is the weapon available to the employer to shut-down the place of work till the workers agree to resume work on the conditions laid down by the employer. The Industrial Disputes Act, 1947 defined lock-out as “the temporary shutting down or closing of a place of business by the employer”.
3. Gherao It means to surround. It is a physical blockade of managers by encirclement aimed at preventing the egress and ingress from and to a particular office or place. This can happen outside the organizational premises too. The managers / persons who are gheraoed are not allowed to move for a long time.
4. Picketing: is a method designed to request workers to withdraw co operation to the employer. In picketing, workers through display signs, banners and play-cards drew the attention of the public that there is a dispute between workers and employer. Workers prevent their colleagues from entering the place of work and persuade them to join the strike. For this, some of the union workers are posted at the factory gate to persuade others not to enter the premises but to join the strike.
5 . Boycott: On the other hand , Boycott aims at disrupting the normal functioning of the organization. The striking workers appeal to others for voluntary withdrawal of co-operation with the employer. Instances of boycotting classes and examinations are seen in the Universities also.
Methods of settling industrial disputes Industrial dispute resolution is an issue of great strategic importance for organizations in terms of maintaining industrial harmony and peace. These initiatives can be classified as: 1. Labor legislations and administrations of the state 2. Statutory machinery for resolving disputes 3. Non-statutory measures
1 . Labor Legislations and Administrations of the State: State intervention in industrial relations is essentially a modern development. With the emergence of the concept of welfare state, new ideas of social philosophy, national economy and social justice sprang up with result that industrial relation no longer remains the concern of labor and management alone. In all the countries, over a period of time, the state has assumed power to regulate industrial relations. It is the state which is now the most significant element in determining the legal environment within which industrial relations operate. The state operates as an actor within industrial relations performing a number of distinct roles.
2 . Statutory Machinery of Resolving Industrial Disputes in India As per Industrial Dispute Act, 1947, the following are considered as statutory machinery for resolving Industrial disputes in India: i . Mediation and Conciliation ii . Investigations iii. Conciliation officers i v . Board of conciliation v. Voluntary arbitration vi. Adjudication (compulsory arbitration )- (a) Labor Courts (b) Industrial Tribunals (c) National Tribunals
3. Non-Statutory Machinery of Resolving Industrial Disputes: Code of Discipline: Indian Labour Conference held in New Delhi in July 1957, formulated a “code of discipline” for Indian industries after thorough discussions. The code was developed for the purpose of maintaining discipline both in public and private sector industries . Following are the salient features of this: Mutual Agreement between Management and Unions: a. There shall be no strike or lockout without due notice. b. No unilateral action on industrial matter. c. Industrial disputes must be settled at appropriate level utilizing existing machinery. d. Affirm faith in democratic principles. e. Bind themselves to settle disputes/grievances by mutual negotiations or through voluntary arbitration (settlement outside judiciary courts). f. Neither party take the line of coercion, intimidation or “go-slow tactics”. g. Avoid litigation, “sit-down” and “stay-in” strikes or lockouts. h. Promote constructive cooperation. i. Agree to establish mutually accepted procedure for settling grievances and do not resort to arbitrary actions. j. Educate management personnel and workers in regards to their duties, responsibilities and obligations.
Current trends In HRM –Human resource approach ( HRM in 21 st century: new trends and challenges of HRM) The human resource approach is based on the following principles : 1. Employees are asset to organization 2. Policies, programs and practices should cater to the needs of employees and should help them in their work and also in their personal development .
3 . It is necessary to create and maintain a conducive work environment , to encourage the employees to develop and harness their knowledge and skills for their good and the good of the organization. 4 . HR policies and practices should be in alignment with the goal of balancing individual and organizational needs.
HRM during Covid 19 7 best practices for supporting employees during COVID-19 Getting culture right is crucial at any time—but it’s particularly important in times of crisis such as this. By Diane Adams, Sprinkler C hief culture and talent officer.
During the hardest times, this quote is especially true—people always remember how you make them feel. In 10 or even 30 years, people will remember the coronavirus pandemic and how their companies made them feel during this unprecedented time. I work at a company that has a cultural value of “treating employees like family.” As COVID-19 continues its spread across the globe, the health and safety of our employees is our top priority. This has been our guiding principle in making difficult decisions. Taking lessons from my current role and previous experiences, here are seven things companies can be doing now to boost employee happiness and wellness during the coronavirus pandemic:
1. Empower Managers to Lead Change : Everyone is personally affected by COVID-19—whether you have a family member who is sick, you’re struggling to be in isolation or you’re learning to work from home and/or learning to work with family at home. Everyone on your team may be at a different point of the change continuum as they deal with their own transitions. We’re all learning to let go and to embrace a new reality over time. And no matter where you may be on the change curve, it is OK. When you understand where you are, you can help lead others through the transition, too. Now, more than ever, we all need to step up and become a source of inspiration for our teams.
2. Implement Daily Check-In Calls: When things are hard, it’s so important to stay close to your people. It can take up to three times as many virtual meetings to build the same trust you can from one in-person meeting. At Sprinkler, we’ve asked all leaders to hold daily 15-min “Heartbeat” calls to stay close and connected with their teams. This is a great opportunity to check in with everyone on the team—not just about work but also about how everyone is doing personally. Some leaders have started asking employees to share their highs and lows of the day; this encourages everyone to work through problems together but also shows employees that they’re not alone. Asking people to share highs and lows also brings positivity into the workplace by eliminating a culture of fear. I want employees to know that we’re all going through this pandemic together for the first time, and it’s a new challenge for everyone.
3 . Maintain Consistent Communication: During this pandemic, everyone knows that things aren’t “business as usual.” Give people the opportunity to understand what’s happening and ask questions by communicating frequently and quickly. Send consistent messages and host town-hall meetings updating employees regarding travel, office closures and confirmed employee cases while maintaining confidentiality. Transparent communication builds trust while also helping companies to identify employee concerns before they become major problems.
4. Respect Employees’ Privacy When Checking In: We have an internal process in place to stay close to people and monitor employees’ health. It’s important to check in with employees when they are sick or their loved ones are ill, but it’s also important to ensure their anonymity. And, when there are employees self-reporting cases, or those who are ill, reach out to show genuine concern and to see if they need any help.
5. Focus on Learning and Development: Now is the perfect time to focus on something positive in the midst of the hard—like learning a new skill. Learning and development programs can increase employee engagement and retention while also improving employee performance. At Sprinkler, employees are using resources like LinkedIn Learning and Audible for Business.
6. Be Intentional with Wellness: Empower employees with the support and tools they need to stay productive and healthy in the face of new challenges. Remote work can be hard for many people, so it’s important to provide a forum for employees to share resources, and give employees permission to work out or meditate during the work day. Additionally, implementing mindfulness into your workplace can encourage people to reduce stress and anxiety that they may be feeling during this time. At Sprinkler, we implemented Headspace—a mindfulness and mediation app—that makes it easy for people around the world to get even a few minutes of mediation in a day just by using an app on their phone. We also hired a mindfulness instructor we call a “Happier Coach” who is offering Mindful Moment sessions three times a day virtually to employees worldwide. These sessions are 15 minutes long and include stretching, breath work, a guided mediation and a moment of gratitude.
7. Give Employees Ongoing Flexibility. In a recent company-wide meeting, Sprinkler's CEO/Founder Ragy Thomas spoke about our focus on integrated living, saying “We have one, integrated life. Your children are a part of it. Your dog is a part of it. Your friends are a part of it. I want you to give yourself permission to be you. If you need to take care of your child, do it. If you need to walk your dog, do it. Give yourself permission to take the artificial boundary of 9 a.m. to 5 p.m. away.” Ragy’s statement highlights the importance of flexibility during COVID-19, when people may be dealing with a new working environment and new challenges at home. Let employees know that it’s OK to take a break to be with your children or just take a walk. Do what will make you happier. Getting culture right is crucial across all levels of business at any time—but it’s particularly important in times of crisis. When we’re happy, we’re at our best personally and professionally, and everyone wins.