Trade Unions and Conflict Management

Description
organized group of workers. Its main goal is to protect and advance the interests of its members. A union often negotiates agreements with employers on pay and conditions. It may also provide legal and financial advice, sickness benefits and education facilities to its members. This PPT covers the whole topic in detail.

TRADE UNIONS AND CONFLICT MANAGEMENT

-Sharmeen Sahibole

TRADE UNION

DEFINITION:
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The Trade Union Act 1926 defines a trade union as a combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more trade unions. This definition is very broad as it includes associations of both the workers and employers and the federation of their associations. Here, the relationships that have been talked about are both temporary and permanent. This means it applies to temporary workers (or contractual employees) as well.

Then this definition, primarily, talks about three relationships: ? workmen and workmen, ? workmen and employers, and ? employers and employers.

WHAT IS TRADE UNION:
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A trade union is an organized group of workers. Its main goal is to protect and advance the interests of its members. A union often negotiates agreements with employers on pay and conditions. It may also provide legal and financial advice, sickness benefits and education facilities to its members. Trade unions aim to represent the interests of people at work and negotiate with employers for better terms and conditions for their members.

HISTORY OF TRADE UNION:
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The first trade union was started in 1877 in Nagpur. The setting up of large-scale industrial units, created conditions of widespread use of machinery, new lines of production, and brought about changes in working and living environment of workers, and concentration of industries in large towns. The first Factory’s Act was passed in 1881 by N.M. Lokhode. In 1919 Madras Labour Union was the first Union in India to be formed and established by B. P. Vadia. Bombay Trade Union formed in 1975 under the leadership of Sorabjee Shapurjee Bengatee.

OBJECTIVES:
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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 workrelated injuries or to assist people who have to take their employer to court.

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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 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.

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Voice in decisions affecting workers: The economic security of employees is concluded not only by the level of wages and duration of their employment, but also by the management’s 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.

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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. – Legal assistance- As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt. – Financial discounts - People can get discounts on mortgages, insurance and loans from unions. – Welfare benefits- One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed.

FUNCTIONS OF TRADE UNIONS:
Militant Functions: • To achieve higher wages and better working conditions. • To raise the status of workers as a part of industry. • To protect labors against victimization and injustice. Fraternal Functions: • To take up welfare measures for improving the morale of workers. • To generate self confidence among workers. • To encourage sincerity and discipline among workers. • To provide opportunities for promotion and growth. • To protect women workers against discrimination.

TRADE UNIONS AT PRESENT IN INDIA:
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All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS) Centre of Indian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC) National Front of Indian Trade Unions (NFITU) National Labor Organization (NLO) Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC) and United Trade Union Congress - Lenin Sarani (UTUC - LS)

PROBLEMS OF TRADES UNIONS:
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Create Unemployment: If labour markets are competitive, higher wages will cause unemployment. Trades unions can cause wages to go above equilibrium through the threat of strikes e.t.c. However when the wage is above the equilibrium it will cause a fall in employment. Ignore non Members: Trades unions only consider the needs of its members, they often ignore the plight of those excluded from the labour markets, e.g. the unemployed. Lost Productivity: If unions go on strike and work unproductively (work to rule) it can lead to lost sales and output. Therefore their company may go out of business and be unable to employ workers at all.

Contd...
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Wage Inflation: If unions become too powerful they can bargain for higher wages, above the rate of inflation. If this occurs it may contribute to general inflation. Powerful trades unions were a significant cause of the UK's inflation rate of 27% in 1979 The benefits of trades unions depends on their circumstances. If they face a monopsony employer they can help counterbalance the employers market power. They can increase wages without causing unemployment.

If unions become too powerful and they force wages to be too high, then they may cause unemployment and inflation
It also depends on whether they cooperate with firm or not on increasing productivity.

CONFLICT MANAGEMENT

WHAT IS CONFLICT:
Is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. ? Is that point in an ongoing activity when an interaction “crosses over” to become an interparty conflict.
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“Perception of Incompatible Aspirations” PIA=C

HOW TO WORK IT OUT
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Step One: STOP! COOL OFF! (Give Your Brain Time to Think!)

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Step Two: TAKE TURNS TALKING AND LISTENING TO EACH OTHER. (Treat Each Other With Respect.)
Step Three: FIND OUT HOW YOU BOTH FEEL AND WHAT YOU BOTH NEED. ( Start with “I need...”.)

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Step Four: BRAINSTORM POSSIBLE SOLUTIONS. ( What might each of you do so that you both get what you need and want?) Step Five: CHOOSE THE IDEA YOU BOTH LIKE BEST. Step Six: MAKE A PLAN TO MAKE IT WORK. GO FOR IT! (It will only work if both of you want it to!)

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IF YOUR SOLUTION DOES NOT WORK OUT, COME BACK AND TRY AGAIN! TALK ABOUT WHAT DID NOT WORK.

Not all interactions involve conflict..
Most of the time, people manage to get along with others with consideration, helpfulness and skill.. …and when conflict arises more often it is not settled On the other hand all interactions present a potential for conflict

…but conflict is going to happen
Whether you like it or not… regardless of your best intentions… or how hard you try you avoid it… conflict will happen in your life… and you will find yourself, your groups and your society in conflict… ….time after time

The Good News…
Conflict promotes change (internal and external) Provides for ways to facilitate the reconciliation of legitimate but opposed interests Conflict is the growing edge of relationships

…and the Bad News.
if mismanaged, conflict is fully capable of destroying relationships, and wreak havoc in our personal life, groups, the larger society and the entire World.

NATURE OF CONFLICT:
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Conflict is always possible when more than one person is involved in any activity. Potential for conflict is always present Occurs in every normal human relationship

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REASONS OF CONFLICT MANAGEMENT:
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Differences over interpretations of facts. Different communication styles. Mismatched goals, mismatched expectations, and mismatched values. Limited resources. Disagreements based on behavioral Expectations.

PROCESS OF CONFLICT MANAGEMENT:
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Conflicts arises due to extreme power imbalance, social injustice, or structural violence where people find it difficult to satisfy their basic human needs LEVELS OF CONFLICT
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Internal Interpersonal Institutional

INTERNAL :
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Torn between two competing choices, or sides. Conflicting emotions can be felt in viewing an issue, or a group. Can see valid arguments in support of both views.

INTERPERSONAL:
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Disagreement or distrust develops between two or more individuals Leads to tensions in the relationships If unresolved, interpersonal conflict almost inevitably spreads among other members of group Awareness of self and awareness of others is critical.

INSTITUTIONAL:
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Involves conflict between groups Groups may be formal or informal Sometimes groups are organized for the specific purpose of engaging in conflict and other groups are organized to counter those efforts. Usually find competing groups are wellintentioned, firmly convinced of rightness of their positions

STYLES OF MANAGEMENT CONFLICT:
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AVOIDING ACCOMMODATING COMPETING COMPROMISING COLLABORATING

AVOIDING
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Effective when the conflict is temporary. The risk of engaging is too high. Avoidance does not solve the problem. May make the situation worse as time goes on.

COMPETING
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Best (or only) way to reach one’s goals is to overrule others This approach frequently disregards the concerns of adversaries completely The power-based method is appropriate

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COMPROMISING
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Compromising gives up more than competing but less than accommodating Compromising requires cooperation and might mean exchanging concessions

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Compromising is sometimes appropriate when you’ve been unable to reach an acceptable agreement

COLLABORATING
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Requires cooperation and might mean exchanging concessions Increases commitment to working together to resolve conflicts. To meet one’s own needs and those of others as well

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Contd..
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conflict provides opportunities to work with others to produce resolutions that serve both individual and common interests process of working together for a solution, better decisions result, and the relationship between the conflicting parties improves

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CONFLICT MANAGEMENT TOOL
High Assertiveness

Concern for Self







Concern for Others

Low Assertiveness


High Cooperation

Low Cooperation

COMPETING
High Assertiveness

Low Assertiveness

Concern for Self

• Competition

Concern for Others
Low Cooperation High Cooperation

ACCOMODATING
High Assertiveness

Concern for Self

• Competition

Low Assertiveness

• Accommodation
Concern for Others
High Cooperation

Low Cooperation

AVOIDING
High Assertiveness

Concern for Self

• Competition

Low Assertiveness

• Avoiding
Low Cooperation

• Accommodation
High Cooperation

Concern for Others

COMPROMISING
High Assertiveness

Concern for Self

• Competition
• Compromise

Low Assertiveness

• Avoiding
Low Cooperation

• Accommodation
High Cooperation

Concern for Others

High Assertiveness

Concern for Self

• Competition

• Collaboration

• Compromise
• Avoiding • Accommodation
High Cooperation

Low Assertiveness

Concern for Others
Low Cooperation

INDUSTRIAL RELATIONS: TRADE UNION AND MANAGEMENT

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Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated.

ACTORS IN THE IR SYSTEM:
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Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes. Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these Government: The Central and State Government influences and regulates industrial relations through laws, rules, agreements.It also includes third parties and labor and tribunal courts.

DIAGRAMATIC REPRESENTATION OF IR SYSTEM:

MANAGEMENT-LABOR RELATIONSHIP:
Three key factors to be considered in conducting an analysis of the management-labor relationship:
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Environmental or external economic, technological, political, legal and social forces that impact employment relationships. Characteristics and interaction of the key actors in the employment relationship: labor, management, and government. Rules that are derived from these interactions that govern the employment relationship.

OBJECTIVES OF INDUSTRIAL RELATIONS SYSTEM:
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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 are an essential factor in the productivity of workers and the industrial progress of a country. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.

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To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. To improve the economic conditions of workers in the existing state of industrial managements and political government. Socialization of industries by making the state itself a major employer. Vesting of a proprietary interest of the workers in the industries in which they are employed.

INDUSTRIAL DISPUTES:
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The number of industrial disputes in country has shown slow but steady fall over the past ten years. In 1998, the total number of disputes was 1097 which fell by more than half to 440 in 2008.It is being estimated that this trend will continue in 2009 as well.

CAUSES OF INDUSTRIAL DISPUTES:
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Wages and allowance: In 2002, 21.4% of disputes were caused by demand of higher wages and allowances. Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. Indiscipline and violence: From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003.

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Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively. Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and working hours. Miscellaneous: The miscellaneous factors include - Inter/Intra Union Rivalry - Charter of Demands - Work Load - Standing orders/rules/service conditions/safety measures - Non-implementation of agreements and awards etc.

IMPACT OF INDUSTRIAL DISPUTES

STRIKES
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A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted.

LOCKOUTS
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According to Industrial Disputes Act 1947,
lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.

PICKETING
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When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets are workers who are on strike that stand at the entrance to their workplace. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. The purpose of picketing is: to stop or persuade workers not to go to work. to tell the public about the strike. to persuade workers to take their union's side.

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GHERAO
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Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades.

ANALYSIS OF STRIKES AND LOCKOUTS

PROHIBITION OF STRIKES AND LOCK-OUTS
Employees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947. Employees, who are working in a public utility service, cannot go on a strike without giving a notice of strike within the six weeks before striking. Illegal Strikes and Lock-Outs
A strike or a lock-out is illegal if it is declared in noncompliance with the section 22 (as defined above) of Industrial Disputes Act 1947, that is, if the notice period is not served or if the strike is held within the fourteen days of issuing the notice of strike. If a strike or lockout has already taken place and is being referred to a Board, the continuance of such a strike or lock out is not illegal provided it is in compliance with the provisions of act. Penalty for Illegal Strikes and Lock-outs A workman who is involved in an illegal strike can be penalized with imprisonment for a term extendable to a month or with a fine or fifty rupees or both. In similar way, an employer who initiates and continues a lockout is punishable with imprisonment extendable to a month or with a fine of one thousand rupees or both

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RESOLVING CONFLICT BY COLLECTIVE BARGAINING
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Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry ILO has defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment industrial relations with one another.

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It is a collective process in which representatives of both the management and employees participate. It is a continuous process which aims at establishing stable relationships between the parties involved. It not only involves the bargaining agreement, but also involves the implementation of such an agreement. It attempts in achieving discipline in the industry. It is a flexible approach, as the parties involved have to adopt a flexible attitude towards negotiations.

THE COLLECTIVE BARGAINING PROCESS:
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Prepare Discuss Propose Bargain Settlement

Flowchart For Problem Resolution
YES Don’t Mess With It! YES
You

NO Is It Working?

Did You Mess With It? NO

IDIOT!
YES

Anyone Else Knows? NO Hide It!

YES NO

You’re

SCREWED!

Will it Blow Up In Your Hands?

Can You Blame Someone Else?
YES

NO
Look The Other Way!

NO PROBLEM!

MEASURES FOR IMPROVING INDUSTRIAL RELATIONS:BETWEEN MANAGEMENT AND UNION
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Strong and Stable Union. Mutual Trust. Workers Participation in Management. Mutual Accommodation. Sincere Implementation of Agreements. Sound Personnel Policies. Government’s Role. Progressive Outlook.

? Strikes in India in this year (from Jan.’09 to till date)
Date
5 Jan.’ 2009 7 Jan.’ 2009 7 Feb.’ 2009 20 April’ 2009 29 July’ 2009 30 April’ 2009 2 may’ 2009 4 may’ 2009 9 may’ 2009 12 may’ 2009 20 may’ 2009 12 June’ 2009 25 Aug.’ 2009

Description
Coal industry, due to wages Public oil sector, due to wages NTPC, to salary Hyundai, due to establish a trade union Strike finished & loss of 1800 cars Mumbai Airport, due to transfer Nestle, Rudrapur due to release of probation employees M&M, Nasik, due to dismiss of trade union leader MRF, Arakonam due to wages JNPT, Paradeep & Kochi port due to wages MTNL, due to salary Beladila Mines due to salary & working condition Public Sector Banks, due to salary Air India, due to retrenchment in salary

7 Sep.’2009 13 Sep.’2009

Jet Airways Pilots on medical leave, due to dismiss of pilots Strike finished, loss of 25-30crore (National Aviators Gild)



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