Managing Industrial Conflict[1]

8/3/2019 Managing Industrial Conflict[1]

1/27

HRM/MBA(FT)/ 2010-12/Sameer Pingl

Managing Industrial Conflict


2/27

Coverage

What is industrial conflict

Nature of industrial conflict

Conflict resolution approaches

Conflict resolution machinery

Prevention of industrial conflict


3/27

Subramaniams DilemmaFacts Company Shivam Gears started as SSI

Now public limited company 2400 employees (600+1800)

Facts leading to the Event Nov. 95 - Received charter of demands from EMS

Dec. 28 Notice of Dispute Jan. 28 Sept. 9 wage negotiations

Sept. 11 Wage Agreement Sept 18 dispute by ESS

No cognizance taken by the Company

Facts The ER Scenario at SG

Harmony no manday lost for last twelve years Better than minimum wage

Wages and incentives


4/27

Subramaniams DilemmaFacts - Collectivity

Two Unions One representative union (EMS)

Majority allegiance with ESS

Workers known to be changing their loyalty

Facts - Event

Negotiated settlement with EMS

7% dedn. towards union fund Official protest by ESS

Facts The Manifest Conflict Workers refused to take salary

Agitation and strike


5/27

The Technical Points

Union Representative and Recognised Unions a legalentity representing the Collective- different positions underHIRA and ID Act

Charter of Demands- a document stating the demands fromemployees side counter charter by employers basis fornegotiations -

Notice of Change legal requirement under the law,communicate intention to change, indicates desired change,intimation to regulatory authorities, due process of law


6/27

The Technical Points Wage Agreement negotiated settlement with the Union, current

for the agreed period of time (generally 3-5 yrs.), covers issuesrelated to wage, work norms, roles, service conditions, conflictresolution process (Ex- Tata Steel)

Notice of Dispute reference to conciliation there can be nostrike when this notice is served; conciliation officers are providedunder the law to mediate between the employer and employees, to

prevent escalation to courts ( Ex- Ruia and Apollo Tyres)

Conciliation Officer statutory authority under the lawauthorised to mediate, mandatory before referring foradjudication; no authority to decide; if conciliation does not work,give a failure report (Ex Hero Honda in Gurgaon)


7/27

Managerial Problem

To have the work resumed at the earliest

Implement the negotiated settlement

peacefully

Prevent inter-union rivalry from further

disrupting business

Maintain long term peace


8/27

The Strategic Dilemma

EMS or ESS ? Whom to support?

Choose between a weak, non-representative union and aweak representative union? Muscle Power- Guru das andCPI (M) supported Union

To intervene or not to intervene? (under section 23- inform

labor commission and police; put up notice of illegal strike,negotiate, divide and rule)

Legal or managerial?


9/27

The Strategic Agenda

Company EMS ESS

continued peace

Undisturbed production

Hold collective powerin check

Weak or strong union

Continuity of status

Acquire workerallegiance

Retain managementsupport

Use opportunity toconsolidate position

Acquire legal status

Use every opportunityto undermine thestanding of EMS

Win management and

worker confidence


10/27

Options

Allow situation to continue let the two unions resolve it amongst themselves

continued peace??

Take action against erring employees with support from EMS peace??

Support for EMS??

Call EMS for negotiations withdrawal of clause from the settlement weaken

or strengthen EMS??

Ignore ESS and ask EMS to settle the issue directly with them long term

consequences??

Play as it comes use situation to own advantage to keep EMS in check

explore whether EMS needs to be replaced by ESS requires sensitive and

skillful handling of the situation


11/27

What is Industrial Conflict

Clash of interests between the parties in industrialrelations collectivity of employees and theemployer

Manifest as stress and tension (action such as workstoppage, strike, lockout, etc. visible forms of protest)

Multi level between collectivities( management andunion) or between individuals ( managers and individuals,management and individual)


12/27

Nature of Industrial Conflict

Employer, Employee, State (Parties involved)

Working conditions, wages, terms ofemployment, discipline, productivity

(common causes of conflict)

Ways and means for resolution, values


13/27

Nature of Industrial Conflict(2)

Individual

Collective

Latent (subtle resistance)

Manifest (protest)

Latent and manifest


14/27

Why Conflicts AriseManagerial Reasons

issues of role

jurisdiction, power & authority

Rights and privileges

resource availability & distribution

managerial style & processes leadership style & orientation

Territorial issues, resource control, relationshipprocesses, visibility issues


15/27

Why Conflicts Arise(2)

Industrial Reasons

Worker attitudes

Indiscipline and violence

Resistance to change

Monetary demands (gratification)

Dominance, rights, duties, money, career and service


16/27

Why Conflicts Arise(3)

Other Reasons

Inter or Intra union rivalry Ineffective government machinery

Political influences

Value erosion

Political, social, regulatory


17/27

How Conflicts Arise

General misunderstanding

Communication gaps

Rivalry between conflicting groups (potential) Style and orientation (issues of fairness, perceived sense

of justice, dignity and transparency, employers peoplephilosophy)

Gradual process of precipitation


18/27

Expression of ConflictRESISTANCE Non-co-operation

Hostility

Withdrawal

Stress

PROTEST Indiscipline

Disrupt production

Violence

Legal recourse

OUTCOMES Retrench workers

Deny benefits

Discontinue operation

Legal recourse


19/27

Approaches to Conflict

ResolutionFocus on

Process - Behaviour & Attitudes

Outcome

Strategies

Fight

Flight

Fright


20/27

Conflict Resolution Strategies

Depend UponPerception of the other party as being

Reasonable or unreasonable

Opposed to our interests

Having own interests

Belligerent


21/27

Conflict Resolution Strategies

UN

RE

AS

ON

AB

LE

CONFRONT COMPROMISE

ARBITRATE NEGOTIATE

OPEN TO REASON

Per

cepti

Opposed to Our

Interests

Having Own Interest


22/27

Conflict Resolution Machinery

Consultative Machinery Code of discipline, jointmanagement council, collective bargaining, negotiations(within the boundaries of the organisation, limited or no involvement

of outside part, participative methods)

Statutory Machinery works committee,conciliation, voluntary arbitration, adjudication ( labour

courts, industrial tribunals, national tribunal) welfareofficer, external authority involved, decision to beinfluenced or dictated by external agency.


23/27

Statutory Options

Conciliation Arbitration Adjudication

Conciliationofficer

Attempts toconciliate

No decisionmaking authority

Third partyBoth partiesagree in writing

Legally binding

Order can bechallenged only inHC

court of lawCan decide and

judge

Judgement


24/27

Collective Bargaining

Aprocess fordiscussion and negotiation between two

parties, one or both of whom is a group ofpersons

acting in concert. The resulting bargain is anunderstanding as to the terms and conditions which

a continuing service has to be performed. More

precisely, collective bargaining is the procedure by

the employer/employers and a group of employeeswho agree upon conditions of work.


25/27

Collective Bargaining

Process Dynamics A civilised confrontation

joint administration

process of accommodation between two institutions

Power stands against power


26/27

Negotiations

back and forth communication designed to

reach an agreement when you and the other

side have some interests that are shared and

others that are opposed


27/27

HRM/MBA(FT)/2010-12/Sameer Pingl

Negotiations - preconditions

Perceived mutual interdependence

Need to co-exist ( shared and opposed

interests, keep external agencies out)

Willingness to respect each others space

(give and take, mutual respect)

Managing Industrial Conflict[1]

Documents

Transcript of Managing Industrial Conflict[1]