8/3/2019 Managing Industrial Conflict[1]
1/27
HRM/MBA(FT)/ 2010-12/Sameer Pingl
Managing Industrial Conflict
8/3/2019 Managing Industrial Conflict[1]
2/27
Coverage
What is industrial conflict
Nature of industrial conflict
Conflict resolution approaches
Conflict resolution machinery
Prevention of industrial conflict
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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)
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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?
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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)
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
13/27
Nature of Industrial Conflict(2)
Individual
Collective
Latent (subtle resistance)
Manifest (protest)
Latent and manifest
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
16/27
Why Conflicts Arise(3)
Other Reasons
Inter or Intra union rivalry Ineffective government machinery
Political influences
Value erosion
Political, social, regulatory
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
19/27
Approaches to Conflict
ResolutionFocus on
Process - Behaviour & Attitudes
Outcome
Strategies
Fight
Flight
Fright
8/3/2019 Managing Industrial Conflict[1]
20/27
Conflict Resolution Strategies
Depend UponPerception of the other party as being
Reasonable or unreasonable
Opposed to our interests
Having own interests
Belligerent
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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.
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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.
8/3/2019 Managing Industrial Conflict[1]
25/27
Collective Bargaining
Process Dynamics A civilised confrontation
joint administration
process of accommodation between two institutions
Power stands against power
8/3/2019 Managing Industrial Conflict[1]
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
8/3/2019 Managing Industrial Conflict[1]
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)
Top Related