Assignment on Web of Rules and Ideologies of Industrial Relations & Trade Unions

RULE-MAKING AND INDUSTRIAL RELATIONS The network of rules is one of the outputs of industrial relations. These are considered the centre of attention in IR system. The rules are broadly grouped into 3 categories: Rules governing compensation in all its forms, The duties and performance expected from workers, including rules of discipline for failure to achieve these standards, and Rules defining the rights and duties of the workers. The actors set rules, these may be : trade unions and workers representing one category, employers, managers and their associations representing 2nd category and government in 3rd category constituting the civil servants concerned with administration of labour matters .

SOURCES OF RULES These rules originate from different sources such as the following and are shaped by their legal political, economic, social, and historical context: Constitutional and legislative framework. It is important for both managements and trade unions to abide by the Constitution, the legislation, and gazette notifications. International Labour Organization is also responsible for these rules which reflects that universal and long lasting peace can be established only if it is based on social justice. Single party: Unilateral. Employer calling the shots can breed exploitation. In places here the demand for labour is much more than its supply; employers can go out of their way to befriend labour. But India is unlikely to get into such a utopian situation (from labour's point of view) in
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the foreseeable future. Therefore, unilateral rule-making is anathema from labour's point of view Two parties: Collective bargaining. Here both the parties of employers and the employees( or their unions) set rules by collective agreement. Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Three parties: tripartite accords. Tripartism includes the government, workers representatives and employers organization that consult each other on matters of labour related issues. In India 8 Industrial tripartite committees are created and these are nonstatutory in nature. Usually these are non-binding statements, except those signed under Section 19 of the Industrial Disputes Act, 1947. Because of their moralistic tone, they are usually adopted without much questioning .or critical appraisal of implementation issues. Since their non-compliance often entails zero consequences, they can be taken lightly. Third party: arbitration/adjudication. India does not have a proper system for arbitration. The government's discretionary powers make adjudication processes suspect in some cases. It includes the process of

arbitration, conciliation and also the process of adjudication that includes the National tribunal, Industrial tribunal and the labour courts.

Collective bargaining is considered the ideal form of rule- making, provided there is balance of power between the parties. Grey areas: These are areas where there are no fixed rules. Union recognition is one such area. The rules provide for cooperation and conflict and lay down the policies, procedures, and practices concerning work place relations. The fundamental nature of employment or industrial relations is also influenced by the structural conditions in which managements and workers/their trade unions find themselves within a society.

ROLE OF GOVERNMENT Today industrial relations in India stand highly regulated by State. The Directive Principles of State Policy place on the Government the responsibility of securing by legislation or economic organization or by any other way, to all workers, industrial or otherwise, work, living wages, conditions of work ensuring a decent standard of life, equal pay for equal work for both men and women, education, human conditions of work, maternity relief, public assistance in case of unemployment, old age, sickness, disablement and participation of workers in management..

Part IV Directive Principles of State Policy: The following directive principles are important in context of Industrial
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relations. Article 39 {Certain principles of policy to be followed by the State} The State shall, in particular, direct its policy towards securing a. that the citizen, men and women equally, have the right to an adequate means of livelihood; b. that the ownership and control of the material resources of the community are so distributed as best to subserve the common good; c. that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment; d. that there is equal pay for equal work for both men and women; e. that the health and strength of workers, men and women, and the tender age of children are not abused and that citizens are not forced by economic necessity to enter avocations unsuited to their age or strength; f. that children are given opportunities and facilities to develop in a healthy manner and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against moral and material abandonment. Article 39A {Equal justice and free legal aid} The State shall secure that the operation of the legal system promotes justice, on a basis of equal opportunity, and shall, in particular, provide free legal aid, by suitable legislation or schemes or in any other way, to ensure that opportunities for securing justice are not denied to any citizen by reason of economic or other disabilities.

Article 40 {Organisation of village panchayats} The State shall take steps to organise village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government. Article 41 {Right to work, to education and to public assistance in certain cases} The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want. Article 42 {Provision for just and human conditions of work and maternity relief} The State shall make provision for securing just and humane conditions of work and for maternity relief. Article 43 {Living wage, etc., for workers} The State shall endeavor to secure, by suitable legislation or economic organisation or in any other way, to all workers agricultural, industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities and, in particular, the State shall endeavour to promote cottage industries on an individual or co-operative basis in rural areas. Article 43A {Participation of workers in management of industries}

The State shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organisation engaged in any industry

BASIC CONCEPTS AND VALUES The basic concepts and values that govern sound industrial relations are: equity and fairness, power and authority, individualism and collectivism, and integrity, trust, and transparency. These concepts and values are kept in mind while developing the rules: Equity and Fairness: Equity refers to equal treatment to one and all under comparable circumstance. Equity and fairness are used synonymously in industrial relations. The concept of fairness is an objective when one applies a technical yardstick like market forces or job evaluation. The concept of fairness is utilitarian when one goes by what the majority accepts .The notion of fairness becomes relative when one considers- - whether or not -one is getting a fair share of pay in relation to what others with similar qualifications and experience are receiving.

... Power and Authority: Power is the ability to influence, impose, or control. It implies. the use of force. Power may emanate from six major interrelated aspects: - The - power to reward - Power to coerce others i.e. power to punish - Position power due to the position or status of the person - Reference power due to personal attributes i.e. power to influence others to satisfy ones needs
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- Expert power due to one's access to information, knowledge, or experience - Associational power through membership in trade unions, employers organizations/ chambers of commerce, networking/ coalitions, etc. Authority is the right to expect and command obedience.

----- Individualism and Collectivism: The fundamental basis of a democratic society is the freedom of the individual. In an employment relationship, collectivist basis may negate or limit an individual's freedom. Collectivism helps an individual to be heard. Ex- the grievances of individual employees are not heard by the management but collectively when they are members of some trade union they can put forth their needs and force the management to satisfy them. -------- An individual should have the right to join a trade union (Collectivism). Likewise he or she should have the right not to join a union (Individualism).

Integrity, Trust, and Transparency: Integrity is adhering to what is professed. This can be promoted by efforts to bridge the gap, if any, between what is said and what is done or walk the talk and talk the walk. Trust is established between and among people. Transparency is promoted through sharing of information, openness in communication, and willingness to explain and reason out the motives behind decisions and actions. For an organization to work effectively these values and concept are very important.

Ideologies of Industrial Relations

Industrial relations scholars have described three major frameworks of perspectives which contrast in their understanding and analysis of workplace relations. These are: Unitary Perspective In unitarism, the organization is perceived as an integrated and harmonious system, viewed as one happy family. A core assumption of unitary approach is that management and staff, and all members of the organization share the same objectives, interests and purposes; thus working together, hand-in-hand, towards the shared mutual goals. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as unnecessary and conflict is perceived as disruptive. From employee point of view, unitary approach means that:

Working practices should be flexible. Individuals should be business process improvement oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required. If a union is recognized, its role is that of a further means of communication between groups of staff and the company. The emphasis is on good relationships and sound terms and conditions of employment. Employee participation in workplace decisions is enabled. This helps in empowering individuals in their roles and emphasizes team work, innovation, creativity, discretion in problem-solving, quality and improvement groups etc. Employees should feel that the skills and expertise of managers supports their endeavors.

From employer point of view, unitary approach means that:

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Staffing policies should try to unify effort, inspire and motivate employees. The organization's wider objectives should be properly communicated and discussed with staff. Reward systems should be so designed as to foster to secure loyalty and commitment. Line managers should take ownership of their team/staffing responsibilities. Staff-management conflicts - from the perspective of the unitary framework - are seen as arising from lack of information, inadequate presentation of management's policies. The personal objectives of every individual employed in the business should be discussed with them and integrated with the organizations needs.

Pluralist Perspective In pluralism the organization is perceived as being made up of powerful and divergent sub-groups - management and trade unions. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed could in fact be channeled towards evolution and positive change.Realistic managers should accept conflict to occur. There is a greater propensity for conflict rather than harmony. They should anticipate and resolve this by securing agreed procedures for settling disputes. The implications of this approach include:
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The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation. Independent external arbitrators should be used to assist in the resolution of disputes. Union recognition should be encouraged and union representatives given scope to carry out their representative duties. Comprehensive collective agreements should be negotiated with unions

Marxist Perspective This view of industrial relations is a by product of a theory of capitalist society and social change. Marx argued that: Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism. Capitalism would foster monopolies. Wages (costs to the capitalist) would be minimized to a subsistence level. Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident. This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background. It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital.

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Trade Union and Industrial Relations

Trade Union refers to a combination, whether temporary or permanent, to regulate relations between: - Workmen and workmen, or - Workmen and employer, or - Employer and employer And impose restrictive conditions on the conduct of a trade or business, and includes the federation of trade unions. Objectives of Trade Union Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices. Trade unions are formed to achieve the following objectives: Representation Trade unions represent individual workers when they have a problem at work. If an employee feels he is being unfairly treated, he can ask the union representative to help sort out the difficulty with the manager or employer. Unions also offer their members legal representation. Normally this is to help people get financial compensation for work-related injuries or to assist people who have to take their employer to court. Negotiation Negotiation is where union representatives, discuss with management, the issues which affect people working in an organization. There may be a difference of opinion between management and union members. Trade unions negotiate with the employers to find out a solution to these differences. Pay, working

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hours, holidays and changes to working practices are the sorts of issues that are negotiated. In many workplaces there is a formal agreement between the union and the company which states that the union has the right to negotiate with the employer. In these organizations, unions are said to be recognized for collective bargaining purposes. Voice in decisions affecting workers The economic security of employees is determined not only by the level of wages and duration of their employment, but also by the managements personal policies which include selection of employees for lay offs, retrenchment, promotion and transfer. These policies directly affect workers. The evaluation criteria for such decisions may not be fair. So, the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interests.

Member services

During the last few years, trade unions have increased the range of services they offer their members. These include: Education and training - Most unions run training courses for their members on employment rights, health and safety and other issues. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications.
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Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt.
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Financial discounts - People can get discounts on mortgages, insurance and loans from unions.
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Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older
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unions offer financial help to their members when they are sick or unemployed.

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