Grievances & discipline, union & association

10/31/2013

Grievances & discipline, Trade union &
Associations

1

An employee’s dissatisfaction or feeling of personal
injustice relating to his employment.
According to “Beach”
Any dissatisfaction or feeling of
injustice in connection with one’s employment situation that
is brought to the notice of the management.

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Factual
Grievances arise when legitimate needs of employee
remain unfulfilled.
Imaginary
An employee’s dissatisfaction is not because of any
valid reason but because of a wrong perception,
attitude or wrong information.
Disguised
An employee may have dissatisfaction for reasons
that are unknown to himself.

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Economic
Work environment
Supervision

Work group
Miscellaneous
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•On production include :
• Low quality of production
• Low quality of production and productivity

• Increase in the wastage of
material, spoilage of machinery.
• Increase the cost of production per unit.
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•On the employee :
•Increase the rate of absenteeism and turnover.
•Reduce the level of commitment, sincerity and
punctuality.
•Increase the incidence of accidents.

•Reduce the level of employee moral.
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•On the managers :

•Strains the superior-subordinates relations.
•Increase the degree of supervision, control and
following up.
•Increase in indiscipline cases.
•Increase in unrest and there by machinery to
maintain industrial peace.
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• Identify grievances

• Define correctly
• Collect data

• Analyze and solve
• Prompt redressal
• Implement and follow up
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Aggrieved Employee
Departmental
Representative
48
Hours

Head of Department
03
DAYS

Grievance Committee
07
Days

Chief Executive
07
Days

Settlement of grievance

Voluntary Arbitration

•Observation

•Grievance procedure
•Grip boxes

•Open door policy
•Exit interview
•Opinion surveys
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 The management can know the employee feelings and

opinion about the company’s policies.
 With the existence of a grievance handling procedure, the
employee gets a chance to express his feelings.

 It keeps on the supervisor’s attitude and behavior towards
their subordinates.
 The moral of the employees will be high with the existence

of proper grievance handling procedure.
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• Conformity with statutory provision

• Unambiguity
• Simplicity
• Promptness
• Training
• Follow up

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 Know your facts- be confident

 Whenever possible, through the burden of proof on
the management.
 Stick to the point –be business like

 Settle the Grievance at the first step
 Take a positive position – Not defensive
 Disagree with dignity

 Be Prompt – Follow the Grievance through
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 Treat each case as important and get the grievance in
writing.

 Talk to the employee directly. Give him a patient hearing.
 Discuss in a private place. Ensure confidentiality, if
necessary.
 Handle each case within a timeframe.
 Examine company provisions in each case. Identify
violations, if any. Do not hold back the remedy if the company
is wrong.
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 Get all relevant facts about the grievance.
 Gather information from the union respective, what he
has to say, what he wants, etc.
 Control your emotions, your remark and behavior.
 Maintain proper records and follow up the action taken
in each case.

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A process of controlling one's behaviour and actions,
either through self motivation or through teaching
and punishment.
According to R.D. Calhoon, ‘Discipline is the force that
prompts individuals or groups to observe rules and
regulations, standards and procedures deemed necessary
for an organization.

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Negative Discipline
Positive Discipline
Self Discipline and control

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Basis

Negative

Positive

Concept

It is adherence to
established norms and
regulations, out of fear of
punishments

It is the creation of a
healthy climate in an
organization so that
employees willingly
conform to the
established rules.

Conflict

Employees do not
perceive the corporate
goals as their own.

There is no conflict
between individual and
organizational goals.

Supervision

Requires intense
supervisory control to
prevent employees from
going off the track.

Employees exercise self
control to meet
organizational objectives.

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•Self Disciple and control
By self discipline is meant the training that
corrects, modules and strengths. It refers to one’s efforts

at self-control for the purpose of adjusting oneself to
certain needs and demands.

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Misconduct is a violation of established rules and
procedures. It is an act which is prejudicial to the interest of
the organization. It is a serious form of indiscipline against
the management. The different form of indiscipline include:
• Inconsistent behavior of employee and deviation from the

standard behavior
• Unsafe behavior of employees
•When employee is abusive, disturb the peace and is

negligent towards his duties.
• Immoral actions of the employees.
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Common Discipline Problems
Attendance related problem

• Unexcused Absence
•Leaving without permission
•Excessive tardiness

Dishonesty related problems

• theft and unsafe acts
• change employee applications and
records
•Willfully damaging factory assets

Performance related problem

• failure to complete assigned work
• Producing substandard products

Off the job behavior problem

•Insubordination
•Smoking
•Fighting
•Carelessness
•Sleeping while at work

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1. Absence of effective leadership

2. Unfair management practices
3. Communication barrier
4. Non uniform disciplinary action

5. Divide and rule policy
6. Inadequate attention to personal problems
7. Excessive pressures

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Because of legal concern, manager must understand
discipline and know how to administer equitably. General
guidelines in administrating discipline include making
disciplinary action corrective, making disciplinary action
progressive and following the “Red Hot Stove Rule”.
According to Red Hot Stove Rule, disciplinary action should
have the following consequences:
1. Burns Immediately
2. Provides warnings

3. Gives consistent punishments
4. Burns impersonally
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There are two ways of dealing employees who do
not obey rules and regulations.
1. Positive discipline approach
2. Progressive discipline approach

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Positive discipline, based upon reminders, is a cooperative
discipline approach where employees accept responsibilities
for the desired behavioral change. The focus is on coping with
the unsatisfactory performance and dissatisfaction of
employees before the problem become major.

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Conference b/w employee
& supervisor
Oral Reminder

Written Reminder

A Decision Making Leave

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In a progressive discipline system, the employee is given

ample warning of performance or other work related
problems. Failure to change his or her behavior is
accompanied by increasingly harsher disciplinary action.
Due process is based on the action that employees have the
right to be treated fairly particularly when being disciplined.

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Improper Behavior
Does this violation warrant
disciplinary action?
YES
Does this violation warrant more
than an oral warning?
YES

No disciplinary Action
N
O
Oral Warning
N
O

than a written warning?
YES
than a suspension

Written Warning
N
O
Suspension

YES
TERMINATION
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1. Issuing a letter of charge/ charge sheet
2. Consideration of explanation
3. Show-cause notice

4. Holding of a full fledged enquiry
5. Making a final order of punishment
6. Follow Up

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1. Rules and performance criteria

2. Documentation of the facts
3. Training of supervisors
4. Centralization Of discipline
5. Impersonal Discipline
6. Progressive Discipline
7. Discipline should be fair
8. Disciplinary action should be prompt
9. Discipline shall be flexible and consistent
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1. Suspension

2. Termination
3. Fine

4. Demotion to a lower grade
5. Warnings

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This code was formulated after serious discussion and
deliberations on the recommendations of the Indian Labor
Conference Held in New Delhi in July 1957.
The code of discipline- as things stand now- provides a sound
and fruitful basis for resolving differences – voluntarilybetween management and employees through face to face
negotiations without any outsider interference.

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1. Maintain peace and order in industry

2. Promote constructive criticism at all levels at of
management and employment
3. Avoid work stoppage in industry

4. Secure the settlement of disputes and grievances by a
mutually agreed procedures
5. Avoiding rules and regulations

6. Facilitates a free growth of trade unions
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 A trade union is a formal association of workers that
promotes and protects the interests of its member through
collective action.
 Trade union Act of 1926, the term is defined as any
combination, whether temporary or permanently, formed
primarily for the purpose of regulating the relation
between workers and employee, or for imposing restrictive
condition on the conduct of any trade or business and
include any federation of two or more union.

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 Wages and salaries

 Working condition
 Discipline
 Personnel policy

 Employee-employer relation
 Negotiating machinery
 Safeguarding organizational health and the interest

of the industry
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 Militant or protective or intra mutual
functions
 Fraternal or extramural function
 Political function
 Social function

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 Improve their bargaining power
 Voice their concerns, grievances problem etc in a united manner
 Have a platform for self expression and cross fertilization of ideas,

thoughts, feeling concerning work, working conditions, work
environment etc.
 Minimize discrimination and favoritism especially in matter relating to
pay, transfer promotion etc.
 Secure adequate in case of illness, accident, unemployment etc.
 Strike rapport with others and improve their working relationship and
thereby develop a sense of belongingness and togetherness – a feeling of

being part of a larger family with minimal conflict and tension

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 Craft union
 Industrial union
 General union
 Federations

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 Trade union leadership
 Multiple unions
 Union rivalry
 Finance

 Others problem


Illiteracy



Uneven growth



Low membership



Heterogeneous nature of labor



Lack of interest



Absence of paid office bearers

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1.

2.

3.

United Labor Front: Unions must put up a joint front. Multiple unions
dissipates their energies, dilute their power and reduce their
effectiveness.
Efficiency Leadership: Management should encourage internal workers
to lead their own movement. Management and union should provide
educational and training facilities for the development of internal
employees.
Membership Free: The membership fees should be raised at the
workers’ wages have increased significantly, compared to the situation in
1926 when trade union act provided for the collection of 25 paisa per
month per member as subscription fees.
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 Trade union should extend welfare measures to the member

and actively pursue social responsibility.
 The trade union act should be amended in order to avoid
dual membership.

 There should be legal provision for the recognition of the
respective union.
 Union should not intervene in day to day matter. They must
focus on important issues affecting workers.
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Early Period: Efforts towards organizing the workers for their welfare were
made, during the early period of industrial development by social
workers, philanthropists and other religious leader mostly on humanitarian
ground.
Some of the important unions established during the period are:
 Amalgamated Society Of Railway Servants of India and Burma (1897)
 the printers union,clacutta (1905)
 the bombay pistol union (1907)
 the Kampar hitavardhak sabha (1910)

 the social service league(1910).
But these unions were treated as adhoc bodies and could not serve the
purpose of trade unions.

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A Modest Beginning – the beginning of the labor
movement in the modern sense started after the outbreak
of world war 1 in the country . Economic , political and
social condition of the day influenced the growth of trade

union movement in India . Establishment of international
labor organization in 1919 helped the formation of trade
union in the country .madras labor union was formed on

systematic lines in 1919.
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Recommendations of National Commission on
Labor
 It would be desirable to make recognition compulsory a central law in all
undertaking employee 100 or more or where the capital invested is above a
stipulated size .

 A trade union seeking recognition as a bargaining agent from an individual
employee should have a membership of at least 30% of workers in the
establishment .
 The minimum membership should be at least 25% if recognition is sought for
in an industry in a local area.
 The minority union should be allowed only the right to represent the cases of
dismissal and discharge of their members before labor court.
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Employers’ Associations came into existence as a result of the formation
of ILO (International Labor Organization) and the growing presence of
Trade Unions, especially after the First World War. The Royal
Commission on Labor, 1929, recommended that the Indian employers
need and some other factors which influenced the formation of unions of
managers, senior executives and other officers, are nationalization and
rationalization of pay and perquisites, and anomalies in pay arising from
the recommendations of Pay Commissions and Wage Boards and their
implementation.

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This is mainly concerned with matters relating to a wide
range of employment issues including industrial relations.
 Formal groups of employers set up to defend, represent
or advise affiliated employers and to strengthen their
position in society at large with respect to labor matters as
distinct from economic matters.
They may conclude collective agreements but this is not a

formal rule and cannot be an element of their definition.

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Primary Objectives
 Promote and protect the interest of employers engaged in

industry, trade and commerce in India.
 Study, analyze and disseminate information relating to labor
policy, labor management relations, collective bargaining, etc.

 Offer advice concerning various aspects of labor policy.
 Liaise with Union Government and initiate steps that are
representative and legislative in nature.

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Train and develop staff and members.
Obtain data on wages and conditions of work in industries attached to
them. Come out with surveys, research-based reports on issues of
importance to both labor and management.
Take up projects for social and family welfare.

Deal with safety and health at work place and working environment.
Initiate steps to improve public image and improve public relations.
Educate the public regarding the character, scope, importance and

needs of trade, industry and commerce represented by members.
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At present EA’s are organized at three levels:
 Local Organizations: They serve the interests of local businessmen.
The Bombay Mill Owners Association, for example, has been formed
to protect the local interests of manufacturing units operating within
the city. Such bodies operate through the local chambers of commerce.
 Regional Organizations: The regional outfits such as Employers’
Federation to South India, Employers 'Association, Calcutta are
affiliated to central employers organization. They offer consultancy
service; take care of training, safety and welfare measures on behalf of
their members. They even have special committees for specific region
or industry related problems.

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 Central Organizations: AIOE, EFI, IOE operated
as apex bodies governing the affairs of several
regional, local associations. To have better
coordination a super structure called the Council of
Indian Employers was formed in 1956, bringing AIOE
and EFI under one umbrella.

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 AlOE: The All India Organization of Employers is a unitary type of
organization, setup in 1953; members hail from manufacturing, banking,
insurance, commercial establishments; and has no sub Organization on an
industrial or geographical basis. The President is elected every year.


IOE: International Organization of Employers, represents the interests
of employers in all social and labor matters at the international level.
Founded in 1920 with headquarters in Geneva, it has a membership of
Employers’ Associations from over 100 countries. The Central Council
of Indian Employers is a matter of IDE.
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 EFI: The Employers’ Federation of India has a federal
structure formed in 1933, it has governing body executive

committee and the secretariat.
The governing body formulates policies, the executive
committee implements policies and the secretariat with its

own permanent staff is responsible for carrying out the
decisions of the governing body.
It had only four presidents in over 50 years. EFI was

registered as a trade union in 1963 under the Indian Trade
Unions Act of 1926.
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The employers’ associations may be registered under any of
the following pieces of legislation: The Trade Union Act,
1926; the Indian Companies Act, 1956; or the societies
registration Act,1960. The AIOE, as started previously

remained a registered body under the Indian Trade Union Act.
This helped AIOE to take up test cases before the courts and
industrial tribunals. This is mainly done to avoid the burden of

income tax on its steadily growing income.
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