Monika MIR

7/31/2019 Monika MIR

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INDUSTRIAL RELATIONS

PRESENTED BY:MONIKA

GURPREET


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Labor Relations in theInternational Arena

Labor relations

Process through which management and

workers identify and determine the jobrelations that will be in effect at theworkplace

Specific approaches to labor relations

varies from one country to another


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US APPROACHES TOLABOR RELATIONS

Collective bargaining Process whereby formal labor agreements are reached by union

and management representatives Involves negotiation of wages, hours, and conditions of

employment and the administration of the labor contract Union

Organization represents workers in collective bargaining Has the legal authority to negotiate with the employer andadministrate the labor contract

Unions gain representation rights only after certification Unions can decertify a union with which the members are

dissatisfied Workers may strike to support unions demands

Grievance Complaint brought by an employee who feels that s/he has been

treated improperly under the terms of the labor agreement Settlement of grievance attempted at various hierarchical

steps


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Steps Of Grievance

Procedure Efforts are made to solve problems at the lowest levelof the hierarchy as quickly as possible

First step usually involves a meeting between the union

representative at the operating level and theemployees supervisor they attempt to agree on howto solve the grievance

Unresolved grievances may involve union officials andhigher-level management representatives these

conciliatory approaches usually solve the grievance Sometimes the matter ends up in the hands of a

mediator or an arbitrator.

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Regional Differences In developing and emergingeconomies such as China, India, and

Southeast Asia: Labor is less powerful

Unions are less prevalent

Workers are often compelled to acceptconditions of work set by management

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LABOR RELATIONS INOTHER COUNTRIES

MNCs have to adjust labor relations strategiesbecause host countries differ in terms of: Economic development Political environments

Strike activity Regional differences Great Britain

Labor agreement is not a legally binding

contract Violations of the agreement carry no legalpenalties

Labor agreements are less extensive than inthe U.S.


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SOLVING INDUSTRIALCONFLICT

Strike Collective refusal to work to pressure

management to grant union demands

Lockout Companys refusal to allow workers toenter the facility during a labor dispute

United States Most contracts outlaw strikes Rely on grievance procedure to resolve

disputes


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OTHER COUNTRIES

Great Britain Strikes more prevalent than in the U.S. System is not geared toward efficient resolution

of conflicts

Grievance handling is informal, cumbersome, andcostly

Germany Strikes and lockouts are prohibited while the

contract is in force Contracts have different expiration dates Cooperation between union and management is not

unusual


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The US Labor UnionMembership

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41.30%

24.90%

14.70%12.90%

14.20%

2.00%

Industry

Union Members per Industry

3-D Column 1 41.30% 24.90% 14.70% 12.90% 14.20% 2.00%

local

governmen

major

private

contructio

n

manufactu

ring

information

industries

financial

activities

Source: Adapted from data obtained from the Bureau of

labor and Statistics; www.bls.gov


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Japanese Approach To

Industrial Relations Social custom dictates nonconfrontationalunionmanagement behavior

Provisions in Japanese labor agreements are

usually general and vague, although they arelegally enforceable Agreement disputes are settled in an amicable

manner though sometimes resolved by third-party mediators or arbitrators

Labor commissions have been established bylaw

Japanese unions remain relatively weak.

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JAPAN

Japan Strikes and lockouts are very rare

Few areas of disagreement between

unions and management Developing countries

In countries with military dominated

governments, strikes are illegal & thereis usually a friendly relationship betweenthe authorities & business owners.


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International Structure of

Unions Intergovernmental Organizations International Labour Organization (ILO)

U.N. affiliate, consisting of government, industry,and union representatives, that works to promote

fair labor standards Organization for Economic Cooperation and

Development (OECD) Government, industry, and union group founded in

1976 that has established a voluntary set of

guidelines for MNCs Transnational Union Affiliations International Confederation of Free Trade Unions

(ICFTU) International Trade Secretaries (ITS)

Focus on a particular industry


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OTHER FORMS OF INDUSTRIALDEMOCRACY

Shop Floor Participation Variety of approaches available (e.g., quality of work

life) Financial Participation

Profit and productivity sharing

Collective Bargaining Can be a mechanism to obtain industrial democracy

Industrial Democracy in Selected Countries United States

Collective bargaining is the most common form

Problem-solving teams Employee groups that discuss ways of

improving quality, efficiency, and the overallwork environment


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OTHER COUNTRIES

United States Special purpose team

Employee groups that design and introduce work reforms andnew technology

Self-managing teams Employee groups that take over supervisory duties and manage

themselves

Great Britain Collective bargaining and reliance on teams

Germany Industrial democracy is very strong,Work councils perform

a number of important functions


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OTHER COUNTRIES

Sweden Industrial democracy geared toward ensuring the quality of

work life Workers sit on some boards of directors

China Little known about industrial democracy in China Two policy-making committees within Chinese enterprises

Japan Industrial democracy used to enhance workers

performance Quality circle Enterprise unions

Represent both the hourly and salaried employees of aparticular firm


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WITH THE ADVENT OF

LIBERALIZATION IN 1992 The industrial relations policy began to

change. Now, the policy was tilted towardsemployers. Employers opted for workforcereduction, introduced policies of voluntaryretirement schemes and flexibility inworkplace also increased. Thus,

globalization brought major changesin industrial relations policy in India.

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CHANGES CAN BE

SUMMARIZED AS FOLLOWS Collective bargaining in India has mostly been

decentralized, but now in sectors where it wasnot so, are also facing pressures to follow

decentralization. Some industries are cutting employment to a

significant extent to cope with the domestic andforeign competition e.g. pharmaceuticals. On the

other hand, in other industries where thedemand for employment is increasing areexperiencing employment growths.

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The number of local and enterprise level unions

has increased and there is a significantreduction in the influence of the unions.

Under pressure some unions and federationsare putting up a united front e.g. banking.

Another trend is that the employers havestarted to push for internal unions i.e. nooutside affiliation.

In the expansionary economy there is a clearshortage of managers and skilled labor.

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HR policies and forms of work are emerging thatinclude, especially in multi-national companies,multi-skills, variable compensation, job rotationetc. These new policies are difficult to implementin place of old practices as the institutional set up

still needs to be changed. HRM is seen as a key component of business

strategy.

Training and skill development is also receiving

attention in a number of industries, especiallybanking and information technology.

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