The Industrial Dispute

The Industrial Dispute Ø INTRODUCTION   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Aim of this essay is to analyze whether boycotts and lockouts are two other anti-impasse weapons used by labour and management. For that we have to get an idea of what is strike and lockouts, and its impact on both management side and labour side. A bargaining impasse occurs when the two sides negotiating an agreement are unable to reach an agreement and become deadlocked. An Impasse is almost invariably mutually harmful, either as a result of direct action which may be taken such as a strike in employment negotiation. Most disputes arise in situations where facts are able to be interpreted in multiple ways, and if parties interpret the facts to their own benefit they may be unable to accept the opposing partys claim as reasonable. They may believe the other side is either bluffing or acting unfairly and deserve to be punished. According to Section 2(k) of the Industrial Disputes Act, 1947 industrial dispute is defined as, Any disputes or differences b etween 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 labour, of any person. Ø STRIKE A work stoppage undertaken in support of a bargaining position or in protest of some aspect of a previous agreement or proposed agreement between labour and management. Strikes can be divided into two basic types: economic and unfair labor practice. An economic strike seeks to obtain some type of economic benefit for the workers, such as improved wages and hours, or to force recognition of their union. An unfair labor practice strike is called to protest some act of the employer that the employees regard as unfair. Essential requirements for the existence of strike are There must be a concerted refusal; or Refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment They must stop work for some demands relating to employment, non-employment or the conditions of labour of the workmen Ø EXAMPLE FOR STRIKE   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Royal Mail postal workers took strike action over job security and working conditions. They voted three to one in favour of action, with 61,623 out of a total of 80,830 workers who voted saying they wanted to strike. The regions in the UK which have been hardest hit by the postal strikes are London, with a cost to businesses of  £187.1 million, and Scotland with a cost of  £82.5 million. The segments affected generate revenues of  £23 million per day, estimate of cost is  £10 million per strike day adding up to a projected total of  £40 million so far. Ø CAUSE OF THE STRIKE In 2007, the last national postal strike ended after both sides signed a 14-page agreement on pay and changes to working practices. As deals go, the agreement to end the 2007 nationwide postal strike was certainly woolly in parts.There was plenty of opportunity for both sides to disagree on exactly what it meant in practice. At the very least, the tortuous discussions on implementing the agreement have proved that give and take has one attribute very much in short supply. The stated aim of the agreement, which now seems ironic, was to move away from the adversarial relationships that persist in too many parts of the business. As members of the Communication Workers Union (CWU) are now out on another nationwide strike, that goal seems further away than ever. Walk sequencing machines were to be trialled using computer programmes to produce the sensible delivery round for a postal worker. The 2007 deal set a concrete deadline of the end of January 2008 to agree a framework to deal with the trialling and implementation of all new technology and automation. But two years on, there is still no agreement according to Royal Mail, which says that a framework was twice agreed between negotiators, but each time it was subsequently rejected by the executive committee of the CWU. The union declined to comment. Another clause in the agreement pledged is the early shift payment is ceased in delivery on agreement to pay restructuring. But Royal Mail says that the early shift payment still technically exists, and the company continues to be keen to discuss pay restructuring with the union. So in other words it seems nothing has changed. So the 2007 agreement on modernisation has led to some significant changes in the way Royal Mail staff operate. But with CWU members now out on another nationwide strike, the great prize of replacing confrontation with trust between the two sides, seems as far away as ever. During industrial disputes, sometimes employees use strike as a anti-impasse weapon. The various forms of strike that employees use as weapons when industrial disputes arise are Ø ECONOMIC STRIKE   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Most of the strikes of workers are directed towards facilities and increase in wage levels. In economic strike, the labourers demand increase in wages, travelling allowance, house rent allowance, dearness allowance and other facilities such as increase in privilege leave and casual leave. A strike is legal if employees are using it to exert economic pressure upon their employer in order to improve the conditions of their employment. In this case, employees are not using the strike as an anti-impasse weapon. STAY-IN STRIKE In this case, workers do not absent themselves from their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as pen down or tool down strike. SLOW DOWN STRIKE Employees remain on their jobs under this type of strike. They do not stop work, but restrict the rate of output in an organised manner. They adopt go-slow tactics to put pressure onthe employers. SYMPATHETIC STRIKE. When workers of one unit or industry go on strike in sympathy with workers of another unit or industry who are already on strike, it is called a sympathetic strike. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike. Picketing. When workers are dissuaded from work by stationing certain men at the factory gates, such a tep is known as picketing. If picketing does not involve any violence, it is perfectly legal. From the above definitions the strike in the form of economic strike and picketing, are not used as anti-impasse weapons by the employees. But the other forms of strike that are discussed above are unwanted and illegal strikes, which in turn are used as an anti-impasse weapon, when industrial disputes arise. Ø LOCKOUTS DEFINITION Industrial action during which an employer withholds work, and denies employees access to the place of work. In effect, it is a strike by the management to compel a settlement to a labor dispute on terms favourable to the employer. When lock out action is taken by several employers in concert, it is called a joint lockout. The Requirements of lockout are Temporary closing of place of employment The element of demand for which the industrial establishment is locked out, must be present The intention to re-open or take the workers back if they accept the demands must exist The employer and employees must be engaged in an industrial process carried on in an institution. Lockout is intended for compelling the employees to accept any terms or conditions- tactic in bargaining. Closure is shutting employment ending bargaining Ø EXAMPLE OF A LOCKOUT AND IMPACTS   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Roopacherra tea estate in south east Assam has been under lockout for nearly month after the executives abandoned it. Leading to the death of a three-year-old girl, Shivani Kalindi and two workers, Yogendra Kalindi, 22, and Manorama Dev, 60, according the workers panchayat (council). After the death of the girl, workers defied the lockout and began picking and selling leaf to other factories for their survival. The Katlicherra police have registered a case against the absconding tea executives and a fact-finding team has been set up to look into the deaths by the Hailakandi administration. Some food was given by the local administration after a hunger strike by a large group of women workers. Dilip Singh, president of the garden panchayat, claimed that the out-of-work labour force was scavenging for roots and tubers of plants in the absence of food as most women and children in the labour colony were suffering from malnutrition related ailments. Roopacherra tea estate has a 1,400-strong workforce, who have been paid no wages since a lockout was declared on January 19.The reason cited by the management for the lockout was flagrant violation of instructions relating to attendance. Ø IS MANAGEMENT USING LOCKOUT AS ANTI-IMPASSE WEAPON:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Apart from lockouts, the management uses its own methods to counter the workers. Some of the weapons used by the management are: Employers Association. The employers may form their unions to collectively oppose the working class and put pressure on the trade unions. Termination of Service. The employers may terminate the services of those workers who are on strike by blacklisting them. Their lists may be circulated to other employers so as to restrict their chances of getting .The management is using lockout as an anti-impasse weapon for most of the above labour problems, even if the employees are on economic strikes. The management uses this weapon because they are dead-locked and they dont want the employees to gain something out the strike. This is due to the lack of business management at the top level of the industry. However, in a situation where Industrial disputes take place because of indiscipline and violence on the part of the workforce. The management is forced to use the lockouk. Ø STEPS TO AVOID STRIKE AND LOCKOUTS Maintaining Good Industrial Relationship:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  To avoid strikes and lockouts an organization must have healthy Industrial relationship. The relationship between Employer and employee or trade unions is called Industrial Relation. Harmonious relationship is necessary for both employers and employees to safeguard the interests of the both the parties of the production. In other words good Industrial Relation means industrial peace which is necessary for better and higher productions. Industrial Relation is a major force which influences the social, political and economic development of a country .Managing industrial relations is a challenging task because it deals with a highly complex, fast developing, ever changing and expanding field. There are certain factors such as composition of working class, work environment, socioeconomic status of the workers and their attitude to work, managements ideology, role of the state, thinking of the community etc which have a considerable bearing on the state of relationship between labour and management. Apart from the primary objective of bringing about sound and healthy relations between employers and employees, Industrial Relation aims at To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. To avoid industrial conflict or strife and develop harmonious relations, which arean essential factor in the productivity of workers and the industrial progress of a country. To eliminate, as far as is possible and practicable, strikes, lockouts and by providing reasonable wages, improved living and working conditions, said fringe benefits. Improvements in the economic conditions of workers in the existing state of industrial managements and political government. Economic satisfaction of workers: Psychologists recognize that human needs have a certain priority. Need number one is the basic survival need. Much of men conducted are dominated by this need. Man works because he wants to survive. This is all the more for underdeveloped countries where workers are still living under subsistence conditions. Hence economic satisfaction of workers is another important prerequisite for good industrial relations. Off-the-job conditions: An employer employs a whole person rather than certain separate characteristics. A persons traits are all part of one system making up a whole man. His home life is not separable from his work life and his emotional condition is not separate from his physical condition. Hence for good industrial relations it is not enough that the workers factory life alone should be taken care of his off-the-job conditions should also be improved to make the industrial relations better. Enlightened trade unions: The most important condition necessary for good industrial relations is a strong and enlightened labor movement which may help to romote the status of labor without harming the interests of management, Unions should talk of employee contribution and responsibility. Unions should exhort workers to produce more, persuade management to pay more, mobilize public opinion on vital labor issues and help Government to enact progressive labor laws.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Negotiating Skills And Attitudes Of Management And Workers: Both management and workers representation in the area of industrial relations come from a great variety of backgrounds in terms of training, education, experience andattitudes. These varying backgrounds playa major role in shaping the character of industrial relations. Generally speaking, well-trained and experienced negotiators who are motivated by a desire for industrial peace create a bargaining atmosphere conducive to the writing of a just and equitable collective agreement. On the other hand, ignorant, inexperienced and ill-trained persons fail because they do not recognize that collective bargaining is a difficult human activity which deals as much in the emotions of people as in their economic interests. It requires careful preparation and top -notch executive competence. It is not usually accomplishedby some easy trick or gimmick. Parties must have trust and confidence in each other. Ø SETTLEMENT MACHINERIES CONCILIATION : It is a peace making process in an organization. A conciliator contacts both the parties by separate meetings and jointly through joint conference. The parties mayor may not accept his suggestions. ARBITRATION: If the parties are not satisfied with the decision of the conciliation machinery then a third party interference known as Arbitrator is introduced. There are two types of Arbitrations they are Voluntary Arbitration Compulsory Arbitration ADJUDICATION: It is the last remedial step for the settlement of Industrial Disputes. In RSP the disputes are sent to the adjudicative authorities by the appropriate govt. after proper examination and verification such as: Labour courts call the cases mentioned in the schedule of Industrial Dispute Act. Industrial Tribunals call the cases mentioned in schedule of Industrial Dispute Act. The above mentioned characteristics are very important for an organization to avoid any kind of industrial disputes, which leads to the strikes and lockouts, in some cases which even leads to the closure of the organization. It is very difficult to maintain perfect industrial relations. Now many organizations focus and invest huge money to enhance their human resource management team, and it is extremely important for the HR department to work out with the industrial relations with some innovative ideas. And the organization which has a efficient HR policies has a unique competitive advantage over their competitors. Now being a part of the HR team, iam going to explain the ways or procedures that a HR team is going to perform for the better industrial relations to avoid any kind of disputes or impasse, within a particular organization. Progressive HR Management Outlook. There should be progressive outlook of the HR management of each industrial enterprise. It should be conscious of its obligations and responsibilities to the owners of the business, the employees, the consumers and the nation. The HR policies must recognize the rights of workers to organize unions to protect their economic and social interests. Ensure workers Participation in Management   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The participation of workers in the management of the industrial unit should be encouraged by making effective use of works committees, joint consultation and other methods. This will improve communication between managers and workers, increase productivity and lead to greater effectiveness. Creating a collective bargaining :   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry. It is the process of negotiation between firms and workers representatives for the purpose of establishing mutually agreeable conditions of employment. It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. The HR department shoule make sure that the collective bargaining agreement with the collective bargsining council has the following mandatory items, Wages Hours of work Incentive pay Overtime Layoff and recall procedures Union security clauses Management rights clauses Grievance procedures Seniority Safety Ø CONCLUSION For this essay it is clear the both management and labor use strikes and lockouts as a anti-impasse weapons according to their situation (not always). In some cases as discussed in the essay both labor and management has used strike and lockouts as a bailout option. This situation will change if the management and the labors have a good relationship and a clear collective bargaining agreement. Thus the organization must concentrate on the HR policies and find ways to properly implement the polices, to gain a strong industrial relations which gets the competitive advantage for the organization. Ø BIBLOGRAPHY A.M. Sharma, Industrial Relation R. Allen and T. Keaveny, 1988, Contemporary Labor Relations, Addison-Wesley Publishing Company. Sisson, k and storey, j (2000) The Realities of Human Resource Management, open university press http://news.bbc.co.uk/1/hi/8296660.stm (10-12-09) http://www.kelkoo.co.uk/co_17062-kelkoo-press-release-strike-costs-40-million.html (10-12-09) http://news.bbc.co.uk/1/hi/business/8320025.stm (10-12-09) http://www.businessdictionary.com/definition/lockout.html (15-12-09) http://libcom.org/news/article.php/tea-garden-lockout-180206 (09-12-09)