Preface

It is not because things are difficult that we do not dare It is because we do not dare that they are difficult
The effective Management of Industrial Relations is the key for the smooth and effective functioning of any organisation! One of the main constituent of a successful organization in todays dynamic business environment is how well it handles its internal matters. The more an organization cater to the needs of its employees as per their requirement and keeps them satisfied, the better they will deliver for their organization. It is said that a satisfied person performs better and put in more efforts than a dejected and unsatisfied person. This is what Management of Industrial Relations all about. It is how well you master the art of maintaining a healthy relation with your, which makes the difference between the good company and the best company. This project deals with our research and analysis conducted on the backdrop of case study related with the Grievance management in an organization. We have presented the best possible information, which we acquired, through different sources in an ordered way, which would help the readers to get the insight about the company and its grievance redressal procedures. We have tried our best to analyse the case in the best possible way with the help of whatever knowledge and understanding we have about the subject so as to give the best possible solution.

Acknowledgements

We would like to thank many people who helped me

significantly to make this industrial project.Management of industrial relations is not as attractive a subject as Advertising or Accounting, but we would certainly like to thank our Management of industrial relations lecturer Mr. U.S.Wahie for making such an uninteresting subject, an interesting one. His lectures were very interactive and stimulation one, and though he might feel that we were a dumb class but, we know that we learned a lot from him which has helped us considerably in accomplishing this industrial project, Mr.Wahie we all are indebted to you. Last but not the least I would like to thank my group members for always providing me with valuable inputs and gelling together and performing like a truly professional team, yes, we are a winning combination and we should be proud of ourselves.

Contents
Preface Acknowledgements The Case Question 1 Question 2 Question 3 01 02 04 05 07 09

Case: Grievance Procedure VS. Collective Bargaining

The Andhra Pradesh State Road Transport Corporation has been providing passenger transportation facilities since 1956. It has been extending its operation from one region to another by nationalizing the private passenger transport companies on a phased manner. Presently it is operating its services in 80% of the routes in the State. It nationalized two routes in East Godavari district in the State in October, 1988. Normally it absorbs all the employees working in passenger transport companies before nationalization and fix their wages at par with the scales of similar categories of jobs. The pay scales in the corporation are determined on the basis of mutual agreement between the management and the recognized trade union. The scales are revised once in three years. The recent agreement came into force with effect from September, 1988. There are two classes in the drivers category, i.e., Class I (drivers working on long distance buses) and Class II (drivers working in short distance routes). The pay scale of Class II drivers is enhanced from Rs. 600-1200 to Rs. 9001600 (with effect from September,1988) in consequence to the latest agreement . The agreement further says that the pay scales of the drivers drawing the scale of Rs. 600-1200 will be fixed in the scale of Rs. 900-1600. The corporation absorbed 10 drivers who were with the private passenger transport companies upon the recent nationalization of two routes. The personal department fixed the scale of these 10 drivers in the scale of Rs. 6001200 and it rejected their plea of fixing their pay in the scale of Rs.900-1600 saying that only the drivers drawing the scale of Rs. 600-1200 are now eligible to draw the new scale of collective bargaining machinery to resolve employee problems. Then these drivers submitted this issue to the foreman who is their immediate superior. The foreman told them to raise this issue in collective bargaining with the help of trade union leaders as it is a policy issue. These drivers approached the trade union leaders and persuaded them to solve this issue. The trade union leaders included this item in the draft agenda to the collective bargaining committee to be held in January, 1989. but the collective bargaining committee deleted this item from the draft agenda saying that this issue can be settled through grievance machinery as only 10 drivers out of 3,000 drivers of the corporation are concerned with this issue.

Questions

Q1. Who is correct? The personnel department or the foreman or the collective bargaining committee.

A1

e personally feel that all the three i.e. the

personnel department, collective bargaining committee as well as foreman is right. Personnel department is right because it is as per policies of the company that only employees falling in the grade of 600-1200 can get a pay hike to 900-1600 category. It is a right move and is as per the agreement between the employer and the trade union. It is also right policy as to not give new employees the pay package 0f 900-1600,as it will create a discontent among the old drivers or employees. The foreman is also right. It is he who is responsible for the performance of employees working under him. Efficient grievance management is an important and integral part of the human resource management. There are several aspects of human relations and industrial relations practices, which generate feelings of discontent on the part of individual workers. In fact, it is the starting point of the process since further arguments and agreements emanate on the basis of the agreement arrived at earlier. In this implementation of a collective agreement a number of problems- grievances arise frequently and on account of this reason both management and workers show utmost concern to the collective agreement. If an individuals grievances are unattended and unresolved they will become collective disputes. Hence, there is a necessity of providing a procedure for redressal of individual grievances. A grievance is a sign of employees discontent with job and its nature. The employee has got certain aspirations and expectations, which he thinks, must be fulfilled by the organization where he is working. When the organization fails to satisfy the employee need, he develops a feeling of discontent or dissatisfaction.

For instance, as in the given case the employee expects proper implementation of the Central and State Governments laws, collective agreements, company policies and management responsibilities. A violation of any one among these causes dissatisfaction on his part. Thus, grievance is caused due to the difference between the employee expectation and management practice. The collective bargaining committee is also right to some extent for deleting this item from the draft agenda saying that this issue can be settled through grievance machinery as only 10 drivers out of 3,000 drivers of the corporation are concerned with this issue, as the figure is very small, but this small spark can change into huge fire hence collective bargaining committee should not totally ignore it, but try to find some solution of it.

Q2. Where do you place this issue for redressal? A2. he concept grievance has been defined in several ways by different authorties. Some of the definitions are as follows: Beach defines a grievance as any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the notice of the management, Whereas Flippo Indicates the grievance as a type of discontent which must always be expressed. A grievance is usually more formal in character than a complaint. It can be valid or ridiculous, and must grow out of something connected with company operations or policy. It must involve an interpretation or application of the provisions of the labour contract. Jucius defines a grievance as any discontent or dissatisfaction, whether exposed or not, whether valid or not, arising out of anything connected with the company which an employee thinks, believes or even feels to be unfair, unjust or inequitable. The above definitions indicate that a grievance may be factual or imaginary or disguised and it is problem whether it is expressed or not, valid or not. In Factual grievance: The employer-employee relation ship depends upon the job contract in any organization. This contract indicates the norms defining the limits with in which the employee expects the organization to fulfill his aspirations. When these legitimate needs of expectations or aspirations are not fulfilled, the employee will be dissatisfied with the job. Such dissatisfaction is called Factual Grievance. For instance,as in the given case,or when an employee is not given promotion, which is due to him, or when work conditions are unsafe, grievances of employees relating to these issues are based on facts. In other words, these grievances reflect the drawbacks in the implementation of the organizational policies. When an employee presents a problem, the grievance redressing authority, has to analyze the problem, find out the route cause of the problem rather than viewing it from legal aspects and solve it based on humanitarian approach. This approach of grievance redressal is known as clinical
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approach to grievance handling. Hence, a grievance may be viewed as

complex psychological phenomenon calling for human rather than any procedural or legal action in its analysis and solution.

Q3. How do you redress this grievance? A3. grievance is a problem and submitted by an employee or several employees of different types. It may be concerning a situation or likely to effect the terms and conditions of the employment of one worker or several workers. If a problem is related to and endorsed by all or majority of the employees or if trade union submits a problem as a general claim it falls outside the scope of grievance procedure and generally comes under the purview of the collective bargaining. Thus, if an issue is wider in scope or general in nature it will be outside the grievance machinery. For example, if the majority of the employees or the trade unions in an organization demand wage revision, such issue does not come under the scope of grievance machinery and falls with in the scope of collective bargaining. In contrast if the workers of different departments submit to the management that there wage is not in accordance to with the award given by the Wage boards and if they ask the management to correct the wage inequity such issues falls with in the scope of grievance machinery. Thus, a grievance (a) Has a narrower perspective; (b) Is concerned to an individual or a few employees of different types. As such policy issues do not fall with in the scope of grievance machinery.

The Grievance redressal procedure

The model grievance procedure should have the successive time bound steps each leading to the next in case of lack of satisfaction. At the outset an aggrieved worker shall approach the foreman and informs his grievance orally and seeks the redressal of his grievance. If it is not redressed to his satisfaction he approaches the supervisor who has to give to the complaint of the worker with in 48hrs. If the decision (answer) is not acceptable by the worker or if the superior does not give any answer, the worker can go to the next step.
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 At the third stage the worker can, either in person or accompanied by his departmental representative, approach the head of the department who has to give the answer before the expiry of three days. If the department head fails to do so or if the answer is not acceptable by the worker given by him, then the worker can resort to the Grievance Committee, which comprises of the representatives of employers and employees. This committee shall communicate its recommendations to the manager with in seven days of the grievance reaching it. If there are unanimous decisions, those shall be implemented by the management. In case unanimous decisions have been not arrived at, the views of the committee members shall be recorded and all the relevant record shall be placed before the manager for decision. The manager shall communicate his decision with in three days. The worker has a right to appeal against the managers decision. These appeals shall be decided with in a weak. If the aggrieved desires he can take along with him a union official for discussion with the authority. In case a decision has not been arrived at, at this stage, the union and management may refer the grievance to voluntary arbitration with in a week of receipt of the managements decision by the worker. A worker may not resort to all the above-mentioned steps. In case the grievance arises on account of dismissal or discharge of the worker, he can resort to the second step. In the later stage he can make an appeal to the dismissing authority designated by the management with in a week from the date of dismissal or discharge. Thus, there is voluntariness in so far as the implementation of the model grievance procedure is concerned. But there is a great need for providing a statutory backing to the grievance machinery since voluntariness failed to get the desired resulting in a number of cases. Further, there is a need to introduce suggestion schemes which are helpful in overcoming the barriers in upward channels of communication. In the western countries suggestion schemes have helped a lot in harmonizing the relations between labour and management. In India also, suggestion schemes have been success in some organizations due to monetary rewards, establishment of suggestion committees and dissemination of full information about the suggestions received. Hence, the importance of suggestion schemes should be recognized and measures should be initiated for the introduction of such schemes.

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Certain Dos in handling grievances: 1. Investigate the handle each and every case as though it may eventually result in an arbitration hearing. 2. Talk with the employee about his grievance; give him a good and full hearing. 3. Get the union to identify specific contractual provisions allegedly violated. 4. Enforce the contractual time limits. 5. Comply with the contractual time limits for the company to handle a grievance

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