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Grievance Procedure and

Collective Bargaining

By Ramya

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Grievances:It is a feeling pfdissatisfaction among workers regardinganything concerned with their work.

Grievance Arise:Difference of opinion or thought

Position of trade union in the organization

Demand for labour welfare facilities.

Doubts and fear

Any social injustice

Policies and procedure are not followed strictly

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Importance of Grievances Handling : Management comes to know the workers think about

policies, practices and procedure of the company

The management also comes to know the behavior andattitude of the supervisor

It also reveals the dissatisfaction, frustration or the state

of satisfaction in the worker mind.

It gives an opportunity to the worker to express theirfeeling

It heightens the moral of the people

Few complaints need systematic handling procedure.

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DEFINITION

Grievance procedure is a formal communicationbetween an employee and the managementdesigned for the settlement of a grievance. Thegrievance procedures differ from organization to

organization.

1. Open door policy

2. Step-ladder policy

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Under this policy, the aggrieved employee is free

to meet the top executives of the organization andget his grievances redressed. Such a policy workswell only in small organizations.

However, in bigger organizations, topmanagement executives are usually busy withother concerned matters of the company.

Moreover, it is believed that open door policy issuitable for executives; operational employeesmay feel shy to go to top management.

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Under this policy, the aggrieved employee has to follow a step

by step procedure for getting his grievance redressed.

In this procedure, whenever an employee is confronted with agrievance, he presents his problem to his immediatesupervisor.

If the employee is not satisfied with superiors decision, thenhe discusses his grievance with the departmental head. Thedepartmental head discusses the problem with joint grievancecommittees to find a solution.

However, if the committee also fails to redress the grievance,then it may be referred to chief executive.

If the chief executive also fails to redress the grievance, thensuch a grievance is referred to voluntary arbitration where theaward of arbitrator is binding on both the parties.

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DIAGRAMMATICAL

REPRESENTATION

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According to Dale Yoder, Collective bargaining

is the term used to describe a situation in which

the essential conditions of employment are determined

by bargaining process undertaken by representativesof a group of workers on the one hand and of one or

more employers on the other.

In the words ofFlippo, Collective bargaining is a process

in which the representatives of a labor organization and

the representatives of business organization meet and attemptto negotiate a contract or agreement, which specifies the nature

of employee-employer-union relationship.

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Features of Collective

Bargaining I. It is a collective process. The representatives of both workers and

management participate in bargaining.

II. It is a continuous process. It establishes regular and stable

relationship between the parties involved. It involves not only thenegotiation of the contract, but also the administration of thecontract.

III. It is a flexible and dynamic process. The parties have to adopta flexible attitude through the process of bargaining.

IV. It is a method ofpartnership of workers in management

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Importance of Collective Bargaining

Importance to employees

Collective bargaining develops a sense of self respect and responsibility among theemployees.

It increases the strength of the workforce, thereby, increasing their bargaining capacity asa group.

Collective bargaining increases the morale and productivity of employees.

It restricts managements freedom for arbitrary action against the employees. Moreover,unilateral actions by the employer are also discouraged.

Effective collective bargaining strengthens the trade unions movement.

The workers feel motivated as they can approach the management on various matters andbargain for higher benefits.

It helps in securing a prompt and fair settlement of grievances. It provides a flexible meansfor the adjustment of wages and employment conditions to economic and technologicalchanges in the industry, as a result of which the chances for conflicts are reduced.

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Importance to employers

It becomes easier for the management to resolve issues at thebargaining level rather than taking up complaints of individualworkers.

Collective bargaining tends to promote a sense of job securityamong employees and thereby tends to reduce the cost of laborturnover to management.

Collective bargaining opens up the channel of communication

between the workers and the management and increases workerparticipation in decision making.

Collective bargaining plays a vital role in settling and preventingindustrial disputes.

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Importance to society

Collective bargaining leads to industrial peace in thecountry

It results in establishment of a harmonious industrial

climate which supports which helps the pace of anations efforts towards economic and socialdevelopment since the obstacles to such a developmentcan be reduced considerably.

The discrimination and exploitation of workers isconstantly being checked.

It provides a method or the regulation of the conditions ofemployment of those who are directly concerned about

them.

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Process of Collective Bargaining: Identifying Bargaining issue:

Wage related Issue: i.e living adjustment, wage defferentials, overtimerates, wage adjustment.

Supplementary economic benefits: i.e Pension Plans, Paid vacation,Paid holidays, Health insurance Plan, Retrenchment pay.

Institution Issues: consists of the rights and duties.

Administrative Issue: i.e issues as seniority, employee

discipline, discharge procedure, employee health andsafety, work rules, training.

Negotiating:

Settlement and contract Agreement

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Process of Collective Bargaining: Preparing for negotiation:

Determine the general size of economic package the company

process to occur. The financial position fo company and its ability topay.

The attitude of the management towards various issue, as reflected

in past negotiation.

The attitude and desire of the employees.

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Process of Collective Bargaining: Settlement and contract agreement:

Chief negotiator from the management side directs the settlement

process. He presents the problem, its intensity and nature and views of both

the parties to reach the solution.

Then solution puts on paper taking legislations into considerations

Both parties sign the agreement which in turn becomes binding

contract for both the parties.

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Collective Bargaining as a method and

Tactics of Settlement of disputes: A rules making and legislative process, in the sense that it

formulates the terms and conditions under which labour andmanagement will cooperate and work together over a certain stated

period.

An executing process: both management and trade union official

share the responsibility of enforcing the rules.

A judicial Process , for in every collective agreement there is agrievance procedure to settle any disputes the application of the

agreement. Where the agreement does not specifically cover the

disputes, It may be settled to the unwritten norms of shop practices.

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Problems of Collective

Bargaining I. Due to the dominance of outsiders in trade unionism in the country, there is multiplicity of

unions which are weak and unstable, and do not represent majority of the employees.Moreover, there are inter-union rivalries, which further hinder the process of collectivebargaining between the labour and the management.

II. Since most of the trade unions are having political affiliations, they continue to bedominated by politicians, who use the unions and their members to meet their politicalends.

III. There is a lack of definite procedure to determine which union is to be recognised toserve as a bargaining agent on behalf of the workers

IV. In India, the law provides an easy access to adjudication. Under the Industrial DisputesAct, the parties to the dispute may request the Government to refer the matter to adjudicationand the Government will constitute the adjudication machinery, i.e., labour court or industrial

tribunal. Thus, the faith in the collective bargaining process is discouraged.

V. There has been very close association between the trade unions and political parties.As a result, trade union movement has leaned towards political orientations rather thancollective bargaining.

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