Industrial Relations, Collective

Bargaining and Workers

Participation in Management

Definition and concept of Industrial Relations

Industrial relations is an outcome of employer-employee relationship in

an organization

Industrial relations facilitates harmonious relationships in an

organization by setting a framework for the management and the
employees

Industrial relations is based on mutual compromise and adjustment, for

the benefit of both the parties involved

The state and the legal system also have a role to play in the
maintenance of a conflict-free industrial environment

The different parties in the system with a well-defined role are the
management, the employees and the unions.

Different roles in Industrial Relations

Employees

Trade Unions

The Management

i.

The exploitative authoritative style

ii.

The benevolent authoritative style

iii. Consultative management style

iv. Participative style

The Government

Objectives of Industrial Relations

The objectives of industrial relations are:
i.

To safeguard the interests of the labor and the management by preventing

one of the players from getting a strong hold over the other.

ii.

To develop and secure mutual understanding and good relationships among

all the players in the industrial set-up.

iii. To maintain industrial peace and harmony by preventing industrial

conflicts.
iv. To improve the standard of living of the average worker by providing basic
and standard amenities.
v.

To increase productivity by minimizing industrial conflicts and maintaining

harmonious industrial relations

vi. To ensure discipline in the organization and in the industry

vii. To provide a basic framework for the management and the employees to
resolve their differences.
viii. To improve the bargaining capacity of the workers through trade unions.

Industrial disputes prevention machinery

There are various means of preventing industrial disputes. They are:
1.

Worker Participation

2.

Employee Grievance Redressal Machinery

3.

Voluntary Arbitration

4.

Conciliation

5.

Court of Enquiry

6.

Tripartite Bodies

7.

Adjudication
i.

Labor Courts

ii. Industrial Tribunals

iii. National Tribunals

Concept of Collective Bargaining

The term collective bargaining was coined by Sydney Webb and Beatrice
Webb, who believed that collective bargaining was the collective equivalent to
individual bargaining, whose primary aim was achieving economic advantage.
The following conditions favor collective bargaining:

There should be a single union, or in case of multiple unions, a common

agreement among them. Clash of interests among unions leads to chaos and
uncertainty which would result in a loss to the employees.

Management should be open to the requests of the trade unions and should
identify the union representatives

The culture of the organization should foster the right spirit for collective
bargaining to be successful.

The role of a third party should be minimized and agreements should be

based on bipartite bargaining

All the parties involved should aim at a win-win situation and not a win-lose
situation. The common interests of the organization and its employees
should be taken into consideration while reaching any agreement.

Features of Collective Bargaining

Group Activity

Activity in Levels

Flexibility

Win-win Situation

Builds Relationships

An Art and a Science

Objectives of Collective Bargaining

Collective bargaining has benefits not only for the present, but also for the
future. The objectives of collective bargaining are:

To provide an opportunity to the workers, to voice their problems on issues

related to employment

To facilitate reaching a solution that is acceptable to all the parties involved

To resolve all conflicts and disputes in a mutually agreeable manner

To prevent any conflicts/disputes in the future through mutually signed

contracts

To develop a conducive atmosphere to foster good industrial relations

To resolve issues through third party (government) involvement in case of

conflicting interests of the parties involved

To provide stabile and peaceful industrial relations in the organisation

To enhance the productivity of the organization by prevailing strikes, lockouts etc.

Collective Bargaining Process

Preparation for Negotiation

Negotiation

Contract Administration

Concept of Workers Participation in Management

Informative participation

Consultative participation

Associative participation

Administrative participation

Decisive participation

Purpose of Workers Participation

It bridges the gap between the management and the workers by authorizing
the workers to take part in managerial functions.

Workers feel valued and, therefore are more committed to their work.

They feel they have the ability to influence organizational decisions and
this makes them more responsible in performing their duties.

Since they are involved in the process of decision-making, any change in

the organization can be implemented without resistance from them.

Participation also ensures that each party (workers and management)

understands the problems and constraints of the other. This helps in
reducing industrial conflict

Participation enables equal distribution of power in industry so that it tends

to be shared among all those engaged in organizational work

Participation facilitates effective communication between the workers and

the management.

The increased use of technology in industry has necessitated the growing

co-operation of workers because of the complex operations of production.

Workers Participation in India

Increasing productivity for the general benefit of the enterprise,

employees and community

Giving employees a better understanding of their role in the working

of the industry and of the process of production;

Satisfying the workers urge for self-expression, thus leading to

industrial peace, better relations and increase cooperation.

Forms of Worker Participation in India

Works Committees

Joint Management Councils

Joint Councils

Unit Councils

Plant Councils

Shop Councils

Factors Contributing to the Limited Success of the

Workers Participation Schemes in Management in India

The differing perceptions and attitudes of the workers and the management regarding
the degree of participation. While the management finds it important to restrict the
participation of workers, the workers feel that participation should be extended to all
levels

While the management considers the bipartite bodies as substitutes for trade unions,
the workers see these as rivals

A number of joint bodies such as works committee, joint management council, unit
council and plant council exist, whose functions have not been clearly defined. This
lead to confusion and duplication of efforts and results in waste of time and energy.

In a country like India, the trade unions are poorly fragmented and organized.
Further, the inter-union rivalry and influences of different political philosophies have
created conditions that are not conducive to workers participation in management.

Illiteracy among workers is a major reason for the failure of workers participation
schemes in India. Workers do not participate actively as they lack a clear
understanding of the concept, rationale and benefits of participation.

Delay in implementation of the decisions of the participative bodies creates

dissatisfaction and frustration among the workers and results in low confidence and
reduced interest in the participation scheme.

Condition Necessary for Effective Working of the Scheme

For workers participation to be successful, there is a need to have

A healthy work atmosphere that motivates employees to participate in the

decision-making process. Frequent conflicts in industries frustrate
workers and they do not show interest in decision-making as they feel that
the management is averse to proposals made by the workers.

It is the responsibility of both the workers and the management to put in

their best efforts, talents and resources for the realization of their goals.

There should be total agreement between both parties regarding the

functioning of the participation schemes. This will ensure the willingness
of both the parties to participate in the progress and functioning of the
schemes.

Frequent meetings between the two parties will reduce the

communication gap and help in implementing decisions at the right time.

The participation schemes in an organization should be introduced at the

shop floor and plant level. Until these are underway, the scheme of
workers' involvement at the board level should not be introduced.
CONTD..

Workers' training and education should be given importance so that the workers
can understand the importance of their participation and its beneficial effects for
the organization.

The programs for training and development should be formulated

comprehensively so that the workers are able to comprehend the various aspects
of management.

To make the employees participate actively, their suggestions should be taken

into account and if the suggestions are good, they should be implemented
immediately. This would increase employee contribution and cooperation.

The management and the workers should trust one another and work towards
improving the system. They should be willing to contribute to the fulfillment of
organizational goals.

Workers' participation schemes should be based on mutual trust and confidence

and not enforced by law or compulsion as this would defeat their very purpose.

Finally, it is important to evaluate the effectiveness of the worker participation

programs from time-to-time and if required, necessary changes should be made to
render them more acceptable and effective.