Implementation of Labour Law and Collective Bargaining
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Transcript of Implementation of Labour Law and Collective Bargaining
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Implementation of Labour Laws
Unit 4
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Code of Discipline in Industry (June 1, 1958)
Government induced, self-imposed and mutual agreedvoluntary principles of discipline and relations, betweenthe Management and workers in industry. Providing for voluntary and mutual settlement of disputes.
Refrains from unilateral action Compels not to indulge in strikes and lockouts, without notice
and without exploring the avenues.
Constructive co-operation
Enjoins upon the Management to take prompt action
Any action against the spirit of the Code should be avoided. Government should rectify shortcomings in the machinery.
Employers required to recognise union.
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Criteria for Recognition of Trade Union
Where there are more than one union, should havebeen functioning for at least one year afterregistration.
Cover at least 15%of the workers, who had paid their
subscriptions for at least 3 months. Recognised as a representative union for an industry, if
it has 25% of the workers of that industry.
When recognized, no change in two years.
Where several unions largest membership should berecognized
Only unions, which observe Code of Discipline.
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Rights of Recognized unions under the
Code of Discipline
Freedom of speech and expression
Collective bargaining and collective actions
Conduct and functioning Miscellaneous rights
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Fostering Discipline in Industry
Ajust recognition by employers and workers
of the rights and responsibilities of either
party
A proper and willing discharge by either party
of its obligations consequent on such
recognition.
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To ensure better Discipline in Industry
The Management and Union(s)AgreeI. No unilateral action
II. Use existing machinery
III. No strike or lockout without notice
IV. No recourse to Coercion
Intimidation
Victimization
Go slow
The Management Role
The Union Role
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Employee Discipline and Positive
Discipline
Discipline is a procedure that corrects or
punishes the subordinate because a rule of
procedure has been violated.
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Common Symptoms of indiscipline
Absenteeism
Disobedience
Theft
Bribe
Damaging Smoking
Fighting
Gambling
Betting
Sleeping
Sexual harassment
Assault
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Objectives of disciplinary action
Enforce rules
Punish the offender
Serve as an example
Ensure the smooth running
Increase efficiency
Maintain peace
Improve relations and tolerance
Working culture
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Positive Discipline
Traditional or Legalistic Approach
Positive or HRD Approach
Holistic or Integrated Approach
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Disciplinary Action Process
Authorities are laid by the organisations
Disciplinary authority
Appellate authority Reviewing authority
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Standing Orders
The industrial employment (standing
orders)Act, 1946 , mandates for all employers
to formulate standing orders in conformity
with the model standing orders and to submit
them to the certifying officer for certification.
Obligatory on workmen to work in conformity
with certified standing orders
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Object of the Act
To require employers and employees to define the conditions
of work
To bring about uniformity in terms and conditions of
employment
To minimise industrial conflicts
To foster harmonious relations between employers and
employees.
To provide statutory sanctity and importance to standing
orders
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Scope and Application
Extends to the whole of India
To every establishment wherein 100 or more workmen are
employed
It applies to all the
skilled or unskilled,
manual,
supervisory,
technical,
clerical workers,
Including apprentices.
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Schedule
Matters to be contained in the Standing Orders Classification of the workmen : temporary, casual, apprentices
Manner of intimating to workmen
Shift working
Attendance and late coming
Conditions of, procedure in applying for, and the authority which may grantleave and holidays
Requirements to enter premises by certain gates and liability to search
Closing and reopening of sections of the establishments, temporarystoppages
Suspension or dismissal for misconduct
Acts and omissions which constitute misconduct
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Submission of Draft Standing Orders
Obligatory for employer to furnish 5 copies of the draftstanding orders
Copies to be given to the certifying officer
Draft has to enclose the prescribed particulars of theworkmen
The status and name of the trade unions to be given.
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Procedure for Certification of Standing Orders
Copy of draft standing orders to be sent to tradeunion/workmen
Opportunity of hearing to trade union/workmen to beprovided
Certification
Certified standing orders have the force of law and theviolation of any provision shall be taken action
Standing orders to be applicable to all present and futureworkmen
Standing orders must confirm the model standing order
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Conditions for certification of Standing Orders
Appeal Any employer, workman, trade union aggrieved by
the order of the certifying officer may, with in 30days
Date of Operation of the Act
On the expiry of 30 days of the certification Or
After 7 days of the decision of appellate authority.
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Penalty
Any employer fails to submit draft standing
orders or modifies it, shall be punishable with
fine which may extend to Rs. 5000.
In case of continuance of the above offence,
fine up to Rs.200 per every day.
Any contravention of Standing Orders is
punishable by Rs. 100 fine .
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Domestic Enquiry
A Domestic enquiry
internal hearing held by an employer to ascertain whetheran employee is guilty of misconduct.
Judicial Intervention Show Cause Letter
Suspension during of Pending Enquiry - might intimidate ortamper evidence.
Charge sheet duly signed by disciplinary.
- Subsistence allowance- during suspension as per rule 50 % for first 90 days 75 % for
remaining period
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Domestic Enquiry Proceedings
Read out and explain the chargesheet
Explain to the delinquent employee
Witness to be examined
Opportunity to cross-examine Managementswitnesses
Allow to produce his own witness
Signature with date of the charge-sheeted workman
Ex-parte Enquiry- where employee does not turn up,
ex-parte enquiry may be held. The Enquiry Report
Contd...
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Domestic Enquiry Proceedings
Final Decision of the Disciplinary Authority:a. Minor punishments
a. Warning or Censure
b. Fine
c. Withholding of increment
b. Major Punishments-a. Demotion
b. Discharge
c. Dismissal
Appeal Conclude
Representations of a legal practitioner
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Principles of Natural Justice
Operate where the law itself is silent.
Meaning and Implication - a person whose civil
rights are affected shall have Reasonable notice of the case,
Opportunity ofbeing heard,
Hearing by an impartial authority,
Must act in good faith. Opportunity to rebut an evidence
Proportionate punishment.
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Criminal proceedings on domestic
enquiry No Disciplinary proceedings with criminal proceedings are
on.
The report of the domestic inquiry consists of thefollowing:
The Charge (es). The facts of the case.
The concise summary of the companys case.
The concise summary of the employees case.
Points for determination in the inquiry. This must be clear and
specific. Mitigating factors, if any.
The findings by the panel.
Recommendation of the panel.
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Collective Bargaining
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Main features of collective bargaining
Collective Bargaining is a process in which theterms and conditions of employment aredetermined jointly by the employer and workers. It generally represents the workers side , who bargain.
Collective bargaining emanates from employmentrelationship.
For determination ofterms and conditions ofemployment
May be related to a number ofsubjective terms ofemployment.
Changeable and dynamic
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Steps in Collective bargaining
Presentation
Discussion
Signing of a formal agreement.
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Principles / Theories of Collective
Bargaining
Four sub processes
Walton and McKersie theory
Distributive bargaining - union and Management
goals are in conflict
Integrative Bargaining - not necessarily in conflict
Attitudinal Structuring - cultivate friendliness,
trust, respect and cooperation. Intra-Organisational Bargaining - interaction
between the union and Management.
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Bargaining Range Theory By AC Pigon
Labour and Management establish upper and lowerwage limits within which a final settlement is made.
Chamberlin Model: Focus upon the determinants of bargaining power.
Unions Bargaining Power (UBP) = Managements cost of disagreeing (MCD) / Managements
cost of agreeing (MCA) Managements Bargaining Power (MBP) =
Unions cost of disagreeing (UCD) / Unions cost of agreeing(UCA)
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Hicks Bargaining Model
Focuses on the length and costs of work
stoppages, balance the cost and benefits of a work
stoppage.
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Issues of Considerationi. Employment relationship
ii. Wagesiii. Fringe benefits
iv. Working conditions
v. Personnel matters.
Collective Agreements and theirImplementation
Three types of agreements:
i. Voluntary agreementsii. Settlements
iii. Consent award
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Forms of Collective Bargaining
Distributive bargaining /conjunctive bargaining
Integrative Bargaining / cooperative bargaining
Attitudinal Structuring
Intra-Organisational Bargaining
Productivity Bargaining demanding increasing productivity
Composite Bargaining - demanding increased work hours or
work load
Industry bargaining
Enterprise bargaining
Concession bargaining
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Process of Collective Bargaining
Coordinating preparations - gathering andanalyzing information
Selection of a team members
Reviewing previous negotiations Gathering data
Formulate proposals and priorities
Select a suitable site Organise the relevant information
Notify opponent of the intent.
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Strategy for Negotiation
Contending
Accommodating
Compromising
Avoiding
New Negotiating Style Dual Concerns ModelIt Focuses On Collaboration
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The Attitude of the Parties
Positive
Prepared to give away something
Observe and follow terms and conditions.
Collective Bargaining In INDIA
The Trade Dispute Act 1929
Bombay Industrial Relations Act 1946 Industrial Disputes Act 1947
Madhya Pradesh industrial Relation Act 1960
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Recent Trends In Collective Bargaining
The Issue Side
Emerging Approaches World Labour Report
of ILO (1997-98) mentions
Collective bargaining as becoming weak with the
state intervention playing a bigger role.
Collective bargaining has shifted from the region /
industry level to enterprise or even plant level.
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Emerging issues in collective bargaining
Performance based wage bargaining
Womens issue
Job security/ job insecurity
Productivity
Quality of work life
Managing change through collective bargaining.
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Collective bargaining agreements at
different levels
Plant level
Industry level
National level
Plant of Establishment Level
Local level
Region/area level Industry level
National level
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National commission on labour for
collective bargaining (1969)
Government intervention should be reduced Trade unions should be strengthened
Legal provisions fori. Compulsory recognition
ii. Prohibition and penalisationiii. Bargaining in good faith
iv. Conferring legal validity
Intensification of workers education
One union for one plant Government should declare its policy to allow and
encourage collective bargaining.