COLLECTIVE BARGAINING

Transcription

1 LESSON 17 COLLECTIVE BARGAINING CONTENTS 17.0 Aims and objectives 17.1 Introduction 17.2 Features of Coective Bargaining Coective Strength Fexibe Vountary Continuous Dynamic Power Reationship Representation Bipartite Process Compex 17.3 Objectives of Coective Bargaining 17.4 Bargainabe Issues 17.5 Types of Bargaining Conjunctive/Distributive/ Bargaining Cooperative Bargaining Productivity Bargaining Composite Bargaining 17.6 The Process of Coective Bargaining Identification of the Probem Coection of Data Seection of Negotiators Cimate of Negotiations Bargaining Strategy and Tactics 17.7 Coective Bargaining in India 17.8 Future of Trade Unionism 17.9 Discipine Administration Positive Discipine Approach Progressive Discipine Approach Contd...

2 The Red Hot Stove Rue Coective Bargaining Burns Immediatey Provides Warning Gives Consistent Punishment Burns Impersonay Judicia Approach to Discipine in India Discipinary Action Let us Sum Up Lesson-end Activity Keywords Questions for Discussion Suggested Readings 17.0 AIMS AND OBJECTIVES In this esson we sha discuss about coective bargaining. After going through this esson you wi be abe to: (i) Discuss feature, type and objective of coective bargaining. (ii) Anayse future of trade unionism and discipine administration INTRODUCTION Bargaining is the process of cajoing, debating, discussing and even threatening so as to arrive at an amicabe agreement for those being represented. Coective bargaining is a procedure by which the terms and conditions of workers are reguated by agreements between their bargaining agents and empoyers. The basic objective of coective bargaining is to arrive at an agreement on wages and other conditions of empoyment. Both the empoyer and the empoyees may begin the process with divergent views but utimatey try to reach a compromise, making some sacrifices. As soon as a compromise is reached, the terms of agreement are put into operation. The underying idea of coective bargaining is that the empoyer and empoyee reations shoud not be decided uniateray or with the intervention of any third party. Both parties must reconcie their differences vountariy through negotiations, yieding some concessions and making sacrifices in the process. Both shoud bargain from a position of strength; there shoud be no attempt to expoit the weaknesses or vunerabiity of one party. With the growth of union movement a over the gobe and the emergence of empoyers associations, the coective bargaining process has undergone significant changes. Both parties have, more or ess, reaised the importance of peacefu co-existence for their mutua benefit and continued progress FEATURES OF COLLECTIVE BARGAINING Some of the important features of coective bargaining may be isted thus: Coective It is coective in two ways. One is that a the workers coectivey bargain for their common interests and benefits. The other is that workers and management jointy arrive at an amicabe soution through negotiations. 215

3 Human Resource Management Strength Across the tabe, both parties bargain from a position of equa strength. In coective bargaining, the bargaining strength of both parties is equa. It is industria democracy at work Fexibe It is a group action where representatives of workers and management expend energies in order to arrive at a consensus. It has sufficient fexibiity, since no party can afford to be infexibe and rigid in such situations. The unique feature of coective bargaining is that usuay the parties concerned start negotiations with entirey divergent views but finay reach a midde point acceptabe to both. It is therefore not a one-way street but a give and take process Vountary Both workers and management come to the negotiating tabe vountariy in order to have a meaningfu diaogue on various troubing issues. They try to probe each other s views thoroughy before arriving at an acceptabe soution. The impementation of the agreement reached is aso a vountary process Continuous Coective bargaining is a continuous process. It does not commence with negotiations and end with an agreement. The agreement is ony a beginning of coective bargaining. It is a continuous process which incudes impementation of the agreement and aso further negotiations Dynamic Coective bargaining is a dynamic process because the way agreements are arrived at, the way they are impemented, the menta make-up of parties invoved keeps changing. As a resut, the concept itsef changes, grows and expands over time Power reationship Workers want to gain the maximum from management, and management wants to extract the maximum from workers by offering as itte as possibe. To reach a consensus, both have to retreat from such positions and accept ess than what is asked for and give more than what is on offer. By doing so management tries to retain its contro on workpace matters and unions attempt to strengthen their hod over workers without any serious diution of their powers Representation The chief participants in coective bargaining do not act for themseves. They represent the caims of abour and management whie trying to reach an agreement. In coective bargaining the empoyer does not dea directy with workers. He carries out negotiations with representatives of unions who are authorised to bargain with the empoyer on work-reated matters Bipartite process The empoyers and the empoyees negotiate the issues directy, face to face across the tabe. There is no third party intervention.

4 Compex Coective bargaining is a compex process invoving a number of procedures, techniques and toos: preparation for negotiations, timing, seection of negotiators, agenda, tedious negotiations, make up of agreement, ratification, enforcement etc. Coective Bargaining 17.3 OBJECTIVES OF COLLECTIVE BARGAINING The main objectives of coective bargaining are given beow: i. To sette disputes/conficts reating to wages and working conditions. ii. To protect the interests of workers through coective action. iii. To resove the differences between workers and management through vountary negotiations and arrive at a consensus. iv. To avoid third party intervention in matters reating to empoyment BARGAINABLE ISSUES Which are the issues that coud be bargained across the tabe? Practicay speaking any issue that has reevance to management and workers becomes the subject matter of bargaining. However, in certain specific cases both management and workers are reuctant to yied ground. Traditionay, management is not wiing to negotiate work methods, arguing that it is management s excusive right to decide how the work is to be done. Likewise unions do not want negotiations on production norms and discipinary matters, because any agreement in this regard woud put imits on their freedom. However over the years, the nature and content of coective bargaining has changed quite dramaticay, thanks to the pus and pressures exercised by the bargaining parties. Traditionay, wages and working conditions have been the primary focus areas of coective bargaining. However, in recent times, the process of bargaining has extended to amost any area that comes under the empoyer-empoyee reations, covering a arge territory. (See Box 17.1) 17.5 TYPES OF BARGAINING Four distinct types of bargaining have evoved over time, namey conjunctive, cooperative, productivity and composite bargaining. These are discussed beow Conjunctive/distributive/bargaining The parties try to maximise their respective gains. They try to sette economic issues such as wages, benefits, bonus, etc., through a zero-sum game (where my gain is your oss and your gain is my oss). Unions negotiate for maximum wages. Management wants to yied as itte as possibe whie getting things done through workers Cooperative bargaining When companies are hit by recession, they cannot offer the kind of wages and benefits demanded by workers. At the same time they cannot survive without the atter s support. Both parties reaise the importance of surviving in such difficut times and are wiing to negotiate the terms of empoyment in a fexibe way. Labour may accept a cut in wages in return for job security and higher wages when things improve. Management agrees to modernise and bring in new technoogy and invest in marketing efforts in a phased manner. In India, companies ike TELCO, Ashok Leyand resorted to cooperative bargaining in recent times with a view to survive the recessionary trends in the automobie sector. 217

5 Human Resource Management Box 17.1: The Substance of Bargaining 1. Wages and working conditions 2. Work norms 3. Incentive payments 4. Job security 5. Changes in technoogy 6. Work toos, techniques and practices 7. Staff transfers and promotions 8. Grievances 9. Discipinary matters 10. Heath and safety 11. Insurance and benefits 12. Union recognition 13. Union activities/responsibiities 14. Management rights Productivity bargaining In this method, workers wages and benefits are inked to productivity. A standard productivity index is finaised through negotiations initiay. Workers do not have to perform at exceptionay high eves to beat the index. If they are abe to exceed the standard productivity norms workers wi get substantia benefits. Management gains contro over workpace reations and is abe to tighten the norms sti further in future negotiations. Without such productivity bargaining agreements, workers may not reaise the importance of raising productivity for organisationa surviva and growth. Backed up by powerfu unions, they may fai to read the danger signas from the market and respond quicky Composite bargaining It is aeged by workers that productivity bargaining agreements have increased their workoad. Rationaisation, introduction of high technoogy, and tight productivity norms have made the ife of a worker somewhat uneasy. A these steps have started hitting the unions and workers beow the bet. As an answer to such probems, abour has come to favour composite bargaining. In this method, abour bargains for wages as usua but goes a step further demanding equity in matters reating to work norms, empoyment eves, manning standards, environmenta hazards, sub-contracting causes, etc. When unions negotiate manning standards they ensure the workoad of workers does not increase, this heps to maintain the status quo as far as empoyment eve is concerned. By negotiating sub-contracting causes, unions prevent management from farming out business to anciaries. If permitted, such an action may resut in ower empoyment in some other pant diuting the bargaining powers of unions substantiay. Workers are no onger interested in monetary aspects to the excusion of work reated matters. There is no doubt that wages, bonus and other monetary aspects continue to occupy the centrestage in bargaining sessions. But there is a definite shift towards composite bargaining. Without such a proactive stand, workers may not be abe to withstand the forces of iberaisation, automation, farming out business to outsiders and survive. Through composite bargaining unions are abe to prevent the diution of their powers and ensure justice to workers by putting certain imits on the freedom of empoyers. For the empoyer this is a esser evi when compared to strikes and ockouts. Apart from periodic wage hikes and day-to-day tusses over productivity norms and other reated issues there is at east no danger of workers striking work every now and then. Of course, even this situation may not continue for ong. In companies ike SAIL, Phiips, Bata, GKW and even TISCO, workforce reductions have to come if they have to survive in a high-tech environment. The compusions of a free market economy cannot be put aside just for the sake of maintaining the abour force. It is sma wonder despite serious warnings from unions, companies in the recession-hit automobie sector (Hindustan Motors, Premier Automobies, Maruti, TVS Suzuki, Hero Honda) have either reduced the work force or cut down their benefits.

6 THE PROCESS OF COLLECTIVE BARGAINING Coective Bargaining The foowing steps are invoved in the coective bargainings process: Identification of the probem The nature of the probem infuences whoe process. Whether the probem is very important that is to be discussed immediatey or it can be postponed for some other convenient time, whether the probem is a minor one so that it can be soved with the other party s acceptance on its presentation and does not need to invove ong process of coective bargaining process, etc. It aso infuences seection of representatives, their size, period of negotiations and period of agreement that is reached utimatey. As such it is important for both the parties to be cear about the probem before entering into the negotiations Coection of data Both abour and management initiay spend considerabe time coecting reevant data reating to grievances, discipinary actions, transfers and promotions, ay-offs, overtime, former agreements covering wages, benefits, working conditions (interna sources) and current economic forecasts, cost of iving trends, wage rates in a region across various occupations, competitive terms offered by rivas in the fied etc Seection of negotiators The success of coective bargaining depends on the skis and knowedge of the negotiators. Considerabe time shoud, therefore, be devoted to the seection of negotiators with requisite quaifications. Generay speaking, effective negotiators shoud have a working knowedge of trade unions principes, operations, economics, psychoogy, and abour aws. They shoud be good judges of human nature and be abe to get aong with peope easiy. They must know when to isten, when to speak, when to stand their ground, when to concede, when to horse-trade, and when to make counter proposas. Timing is important. Effective speaking and debating skis are essentia Cimate of negotiations Both parties must decide an appropriate time and set a proper cimate for initia negotiations. At this stage the parties must determine whether the tone of the negotiations is going to be one of mutua trust with 'nothing up our seeves', one of suspicion with ot of distortion and misrepresentation, or one of hostiity with a ot of name caing and accusations Bargaining strategy and tactics The strategy is the pan and the poicies that wi be pursued at the bargaining tabe. Tactics are the specific action pans taken in the bargaining sessions. It is important to spe out the strategy and tactics in back and white, broady covering the foowing aspects: Likey union proposas and management responses to them. A isting of management demands, imits of concessions and anticipated union responses. Deveopment of a database to support proposas advanced by management and to counteract union demands. A contingency operating pan if things do not move on track. 219

7 Human Resource Management 220 Box 17.2: Popuar Bargaining Tactics (Soane and Whitney) 1. Confict-based: Each party uncompromising, takes a hard ine, and resists any overtures for compromise or agreement. Typicay, what happens is that one party mirrors the other party's actions. 2. Armed truce: Each party views the other as an adversary. Athough they are adversaries, it is recognised that an agreement must be worked out under the guideines specified by the aw. In fact, the aw is foowed to the etter to reach agreement. 3. Power bargaining: Each party accepts the other party with the knowedge that a baance of power exists. It woud be nonproductive to pursue a strategy of trying to eiminate the other party in the reationship. 4. Accommodation: Both parties adjust to each other. Positive compromises, fexibiity, and toerance are used, rather than emotion and raw power. It is caimed that most managers and union eaders have engaged in accommodation for the buk of union-management bargaining issues. 5. Cooperation: Each side accepts the other as a fu partner. This means that management and the union work together not ony on everyday matters but in such difficut areas as technoogica change, improvements is quaity of work ife, and business decision making. Generay each side tries to find how far the other side is wiing to go in terms of concessions, and the minimum eves each is wiing to accept. Take it or eave it kind of extreme positions woud spoi the show and hence parties shoud avoid taking such a rigid and infexibe stand initiay. Successfu negotiations, after a, are contingent upon each side remaining fexibe. Each party shoud be wiing to concede upto a certain extent depending on one s own compusions and pressures, with a view to win over the other party. This is popuary known as bargaining zone which is the area bounded by the imits within which the union and empoyees are wiing to concede. If neither party is wiing to concede a itte bit, negotiations reach a deadock or impasse, which can eventuay resut in a strike on the part of the union or a ockout on the part of management. Box 17.3: Bargaining Limits Reed Richardson has the foowing advice for bargainers: 1. Be sure to set cear objectives for every bargaining item, and be sure you understand the reason for each. 2. Do not hurry. 3. When in doubt, caucus with your associates. 4. Be we prepared with firm data supporting your position. 5. Aways strive to keep some fexibiity in your position. 6. Don't concern yoursef just with what the other party says and does; find out why. 7. Respect the importance for face saving for the other party. 8. Be aert to the rea intentions of the other party-not ony for goas, but aso for priorities. 9. Be a good istener. 10. Buid a reputation for being fair but firm. 11. Learn to contro your emotions and use them as a too. 12. As you make each bargaining move, be sure you know its reationship to a other moves. 13. Measure each move against your objectives. 14. Pay cose attention to the wording of every cause negotiated; they are often a source of grievances. 15. Remember that coective bargaining is a compromise process; There is no such thing as having a the pie. 16. Try to understand peope and their personaities. 17. Consider the impact of present negotiations on those in future years. Reed Richardson Impasse, thus, is a coective bargaining situation when the parties are not abe to overcome their differences, usuay because one party is demanding more than the

8 other wi offer. One way to avoid impasse is to postponement of difficut issues to a ater stage and take up easier ones first with a view to have a smoother passage initiay. Another way to avoid breakdowns is for each side to be prepared to offer propositions and to accept aternative soutions to some of the more controversia issues. Skied negotiators as mentioned by Richardson, take charge of the issue through ogica presentations, good manners and coo behaviour. Coective Bargaining Formaising the agreement: When a soution comes through what is popuary known as 'good faith bargaining' (Both parties are making every reasonabe effort to arrive at agreement, proposas are being matched with counter proposas), a forma document must be prepared expressing everything in a simpe, cear and concise form. After this, both parties must sign the agreement and abide by its terms and conditions during the entire term of the contract. Box 17.4: Content of a Labour Agreement Purpose and intent of the parties Vacations Scope of the agreement Seniority Management Safety and heath Responsibiities of the parties Miitary service Union membership and checkoff Severance aowance Adjustment of grievance Savings and vacation pan Arbitration Suppementa benefits program Suspension and discharge cases Prior agreements Rates of pay Termination date Hours of work Overtime and hoidays Enforcing the agreement: Coective bargaining does not come to an end with the signing of the agreement. For the agreement to be meaningfu and effective, both parties must adhere to the conditions agreed upon and impement every thing scrupuousy COLLECTIVE BARGAINING IN INDIA The story of coective bargaining is the story of the rise and growth of trade unionism itsef. It had its roots in Great Britain and deveoped in response to conditions created by the Industria Revoution. In eary part of 18 th century when trade unions came into existence, the idea of bargaining coectivey gained strength. Initiay the negotiations were carried out at pant eve. By eary 1900, industry and nationa eve agreements were quite common. Sowy but steadiy the idea spread to France, Germany, USA. After a century of rapid growth, coective bargaining has more or ess, become the gospe of industria reations. It is being increasingy viewed as a socia invention that has institutionaised industria confict. In other words it is through the process of coective bargaining that organisations have earnt to cope with industria confict. In India trade unions have come to occupy the centre stage ony after In 1918, Gandhiji, as the eader of the Ahmedabad Textie workers advocated the resoution of confict through coective bargaining agreements. For another 10 years, this method of setting disputes did not gain popuarity. The ega steps taken by the government after the Second Word War revived interest in the subject once again. The egisative measures incuded the setting up of a machinery for negotiations, conciiation and arbitration. Basic conficting issues concurring wages and conditions of empoyment were sought to be resoved through vountary means. After Independence, with the spread of trade unionism, coective bargaining agreements have become popuar. A arge majority of disputes were resoved through this mechanism. 221

9 Human Resource Management Most agreements were concuded at the pant eve. In centres ike Mumbai, Ahmedabad industry eve agreements were quite common thanks to the ega bessings extended by the respective State Acts. The agreements were found in industries such as chemicas, petroeum, tea, coa, oi, auminum, etc. In ports and docks, banking and insurance, coective agreements at the nationa eve were aso arrived at FUTURE OF TRADE UNIONISM Pubic sympathy and unquaified support was there for the asking for trade unions and abour eaders when India gained Independence. They were treated as iving egends and wecomed into corporate circes and poitica forums openy. Nationaisation of important services (raiways, banking, insurance, power, posts and teegraph, aviation, docks and ports etc.) and core sector activities have paid dividends initiay. Thanks to MS Swaminathan, the agricutura sector fourished during 60's and 70's. The industria sector, unfortunatey, faied to deiver the goods on a fronts. To cite an exampe, absence of competition has ed to the government-owned insurance companies becoming sothfu, unproductive and expensive to the customers (premium on ife insurance is neary 40 per cent more in India than in any deveoped country because the Life Insurance Corporation has to compusoriy invest in government securities). The entire decade of the 1970s was ost to empty sogans ike 'Garibi Hatao'. The sociaist eanings of Mrs. Gandhi did not take the nation to 'commanding heights'. Absence of competition, administrative contros, icensing restrictions, pro-abour poicies, were the hamarks of 1970s and 1980s. Owners were inward ooking, focusing more on obbying than on achieving production efficiency through investments in R & D, technoogy upgradation and tota quaity management. Assured jobs, weak empoyers, pro-abour government poicies and coective strength of numbers have encouraged abour to be vociferous and demanding. Ever apprehensive of rubbing the unions the wrong way, governments-especiay when eections are round the corner preferred the vevet gove to the iron fist when deaing with unions. Secure jobs, high wages, absence of accountabiity and contempt for authority is what the workers of a pubic sector undertaking have come to personify. These empoyees (10% of Organised abour harming the interests of the remaining 90%) have hed the country to ransom for far too ong. They were, a aong, inward-ooking, resistant to change and aways taked about their rights and not their duties. The process of socio-poitica and economic churning that was forced upon the country in the eary 90's thanks to Manda, Mandir and Manmohan (Economic Liberaisation) has engufed virtuay every aspect of the nation's ife. The Labour Unions during this period faied to catch up with the times. Their refusa to refocus their aims, or even acknowedge the need to change, has ed to their irreevance and aienation from those very sections of the Indian society whose support heped them grow DISCIPLINE ADMINISTRATION There are two ways of deaing with empoyees who do not obey rues, induge in acts that are not permitted and tend to fy off the hook at the sightest provocation: i.e., positive discipine approach and the progressive discipine approach. The best discipine is ceary sef discipine, when most peope understand what is required at work Positive Discipine Approach 222 This approach buids on the phiosophy that vioations are actions that usuay can be corrected without penaty. In this approach, the focus is on fact-finding and guidance to

10 encourage desirabe behaviours instead of using penaties to discourage undesirabe behaviours. There are three steps to positive discipine. The first is a conference between the empoyee and the supervisor. The purpose of this meeting is to arrive at a soution to the probem through discussion, with ora assurance by the empoyee to improve his performance. If improvement is not made after this first step, the supervisor hods a second conference with the empoyee to find why the soution agreed to in the first meeting did not produce resuts. At this stage a written reminder is handed over to the empoyee. This document detais an agreed soution with an affirmation that improvement is the responsibiity of the empoyee and a condition of continued empoyment. When both meetings fai to produce the desired resuts, the empoyees is given a paid eave for one day to decide his future in the organisation. The empoyee is expected to come back the next day with a decision to make a tota commitment to improve performance or to quit the organisation. These three stages are depicted in Box 17.5: Coective Bargaining Box 17.5: Steps in Positive Discipine Step 1: An Ora Reminder Step 2: A Written Reminder Step 3: A Decision-making Leave Notice here that the word warning is removed. The ora reminder, supported by written documentation, serves as the initia forma phase of the process to identify to the empoyee what work probems he or she is having. This reminder is designed to identify what is causing the probem and attempts to correct it before it becomes arger. If the ora reminder was unsuccessfu, a more formaised version is impemented. This written reminder once again reinforces what the probems are and what corrective action is necessary. Furthermore, specific time tabes that the empoyee must accept and abide by, and the consequences for faiing to compy, are often incuded. Here, empoyees are given a decision-making eave time off from work, usuay with pay to think about what they are doing and whether or not they desire to continue work with the company: This deciding day is designed to aow the empoyee an opportunity to make a choice correct the behaviour, or face separation from the company Progressive Discipine Approach In this approach discipine is imposed in a progressive manner, giving an opportunity to the empoyee to correct his or her misconduct vountariy. The technique aims at nipping the probem in the bud, using ony enough corrective action to remedy the shortcoming. The sequence and severity of the discipinary action vary with the type of offence and the circumstances surrounding it. Progressive discipine is quite simiar to positive discipine in that it too uses a service of steps that increase in imaginary and security unti the fina steps. However, positive discipine repaces the punishment used in progressive discipine with counseing sessions between empoyee and supervisor. The concept of progressive discipine states that penaties must be appropriate to the vioation. If inappropriate behaviour is minor in nature and has not previousy occurred, an ora warning may be sufficient. If the vioation requires a written warning, it must be done according to a procedure. After written warnings, if the conduct of the empoyee is sti not aong desired ines, serious punitive steps coud be initiated. Major vioations such as hitting a supervisor may justify the termination of an empoyee immediatey. In order to assist a manager to recognise the proper eve of discipinary action, some firms have formaised the procedure. One approach in the estabishment of progressive discipinary action is shown in Figure

11 Human Resource Management Improper behaviour Does this vioation No No discipinary warrant discipinary action action? Yes Does this vioation No Ora warrant more than warning an ora warning? Yes Does this vioation No Written warrant more than warning a written warning? Yes Does this vioation warrant more than a suspension? No Suspension Yes Termination Figure 17.1: The Progressive Discipine Approach THE RED HOT STOVE RULE Without the continua support of subordinates, no manager can get things done. But, discipinary action against a deinquent empoyee is painfu and generates resentment on his part. Hence, a question arises as to how to impose discipine without generating resentment? This is possibe through what Dougas McGregor caed the Red Hot Stove Rue, which draws an anaogy between touching a hot stove and undergoing discipine. According to the Red Hot Stove rue, discipinary action shoud have the foowing consequences: Burns immediatey If discipinary action is to be taken, it must occur immediatey so the individua wi understand the reason for it. With the passage of time, peope have the tendency to convince themseves that they are not at faut Provides warning It is very important to provide advance warning that punishment wi foow unacceptabe behaviour. As you move coser to a hot stove, you are warned by its heat that you wi be burned if you touch it Gives consistent punishment Discipinary action shoud aso be consistent in that everyone who performs the same act wi be punished accordingy. As with a hot stove, each person who touches it is burned the same Burns impersonay Discipinary action shoud be impersona. There are no favourites when this approach is foowed.

12 JUDICIAL APPROACH TO DISCIPLINE IN INDIA Coective Bargaining The Industria Empoyment (Standing orders) Act was passed in 1946 with a view to improve the industria reations cimate. The Act requires that a estabishments must define the service rues and prepare standing orders. The term Standing orders refers to the rues and reguations which govern the conditions of empoyment of workers. They indicate the duties and responsibiities on the part of both the empoyer and the empoyees. The standing orders contain rues reating to: cassification of empoyees, working hours, hoidays, shift working, attendance, eave, suspension, termination, stoppage of work, redressa of grievances against unfair treatment, etc. Thus, standing orders specify the terms and conditions which reguate the empoyee-empoyer reationship within a unit. Any vioation or infringement of these terms and conditions may ead to misconduct or indiscipine. Box 17.6: Major Acts of Misconduct does not discharge his duties propery, remains absent without eave induges in acts which are unsafe for the empoyer is grossy immora, dishonest is insuting, abusive and disturbs the peace of others in unfaithfu, corrupt, disoya induges in theft, fraud, bribery does not obey orders resorts to iega strike causes wifu damage to property, etc. The Industria Disputes Act 1947 (as amended in 1982) prescribes an eaborate procedure for dischanging a deinquent empoyee even on grounds of serious misconduct. Likewise, the Payment of Wages Act paces restrictions on the imposition of fines on an accused empoyee. The ega position is quite cear. The empoyee shoud get a chance to expain the grounds under which he vioated the standing orders. There must be a proper enquiry as per the principes of natura justice before resorting to punishment Discipinary Action Though there is no rigid and specific procedure for taking a discipinary action, the discipinary procedure foowed in Indian industries usuay consists of the foowing steps: i. Issuing a etter of charge: When an empoyee commits an act of misconduct that requires discipinary action, the empoyee concerned shoud be issued a charge sheet. Charges of misconduct or indiscipine shoud be ceary and precisey stated in the charge sheet. The charge sheet shoud aso ask for an expanation for the said deinquent act and the empoyee shoud be given sufficient time for answering this. ii. iii. Consideration of expanation: On getting the answer for the etter of charge served, the expanation furnished be considered and if it is satisfactory, no discipinary action need be taken. On the contrary when the management is not satisfied with the empoyee s expanation there is a need for serving a show-cause notice. Show-cause notice: Show-cause notice is issued by the manager when he beieves that there is sufficient prima facie evidence of empoyee s misconduct. However, this gives the empoyee another chance to account for his misconduct and rebut the charges made against him. Enquiry shoud aso be initiated by first serving him a notice of enquiry indicating ceary the name of the enquiring officer, time, date and pace of enquiry, etc. 225

13 Human Resource Management iv. Hoding of a fu-fedged enquiry: This must be in conformity with the principe of natura justice, that is, the empoyee concerned must be given an opportunity, of being heard. When the process of enquiry is over and the findings of the same are recorded, the Enquiry Officer shoud suggest the nature of discipinary action to be taken. v. Making a fina order of punishment: Discipinary action is to be taken when the misconduct of the empoyee is proved. Whie deciding the nature of discipinary action, the empoyee s previous record, precedents, effects of discipinary action on other empoyees, etc., have to be considered. When the empoyee fees that the enquiry conducted was not proper and the action taken is unjustified, he must be given a chance to make an appea. vi. Foow up: After taking the discipinary action, a proper foow up action has to be taken and the consequences of the impementation of discipinary action shoud be noted and taken care of LET US SUM UP Bargaining is the process of cajoing, debating, discussing and even threatening so as to arrive at an amicabe agreement for those being represented. Traditionay, wages and working conditions have been the primary focus areas of coective bargaining. When companies are hit by recession, they cannot offer the kind of wages and benefits demanded by workers. At the same time they cannot survive without the atter s support. The success of coective bargaining depends on the skis and knowedge of the negotiators. In India trade unions have come to occupy the centre stage ony after In 1918, Gandhiji, as the eader of the Ahmedabad Textie workers advocated the resoution of confict through coective bargaining agreements LESSON-END ACTIVITY Outine the major coective bargaining issues of companies in India today. What do you foresee as the major issues of the future? Expain your response KEYWORDS Coective Bargaining Cooperative Bargaining Composite Bargaining Discipine Approach Judicia Approach QUESTIONS FOR DISCUSSION 1. What is Bargaining? Name the various types of Bargaining. 2. What is coective Bargaining? Expain the features of Coective Bargaining. 3. Describe different steps of Coective Bargainings. 226

14 SUGGESTED READINGS Coective Bargaining Gary Desser, Human Resource Management, Seventh edition, Prentice-Ha of India P. Ltd., Pearson. PL Rao, Comprehensive Human Resource Management, Exce Books, New Dehi. Robert L. Gibson and Marianne H. Mitche, Introduction to Counseing and Guidance, VI edition, PHI, Dr. R. Venkatapathy & Assissi Menacheri, Industria Reations & Labour Wefare, Adithya Pubications, CBE, David A. DeCenzo & Stephen P. Robbins, Personne/Human Resource Management, Third edition, PHI/Pearson. VSP Rao, Human Resource Management: Text and cases, First edition, Exce Books, New Dehi