Labour Management Cooperation.ppt

LABOUR MANAGEMENT COOPERATION

About Labour Management Cooperation In today's economy, where businesses must compete globally and governments are expected to do more with less, the most important business relationship that exists is the relationship between the employer and the employee. The labor-management relationship impacts directly on profitability, productivity, job security, and quality of life. As labor-management relations evolve to meet the challenges of today's economy, the Department's services have evolved to meet the needs of our customers.

About Labour Management Cooperation These services, provided jointly by the Bureau of Mediation and the Office of Labor-Management Cooperation, assist labor and management in improving their relationship at all levels, from the "shop floor" to the "board room," and enable them to address issues of mutual concern together, rather than as adversaries.

Meaning and Goals Labour – Management Cooperation means …

“joint efforts of labour and capital to find out solutions and remedies of problems, common to both.”

Meaning and Goals Goals are as under: -

Increasing Productivity

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Promoting Industrial Democracy

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Avoiding Conflicts and Roughness/Frictions

Objectives of Labour – Management Cooperation -

to avoid conflicts and problems arising out from working environment of the organization.

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To avoid disputes arising between employer and workman.

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To extend harmonious work environment

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To run organization smooth and flat

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To achieve the goals of the organization

Different Forms of Labour Management Cooperation 1.

Information Sharing

2.

Problem Sharing

3.

Joint Consultation

4.

Workers’ Participation in Management

About WPM - The ILO has been encouraging the member nations to promote the scheme of Worker‟s Participation in Management. -

Worker‟s Participation in Management implies mental and emotional involvement of workers in the management of enterprise.

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Provisions like Works Committee, Joint Management Council and nomination of worker‟s representatives in managing committee have been included in Labour Laws of various countries.

About WPM - In our country, first of all, it was introduced in the form of „Works Committee” in the factory. But, in the practice, it did not work. - The feudal mentality of the employers made the provision totally passive and ineffective. But the major responsible factor for the failure of the Works Committee was the autocratic political system which banned representative unions and developed a puppet union. - In the year 1992, the new Labour Act was enacted.

What is WPM? - The Labour Act has emphasized Worker‟s Participation in Management in the form of labour – management committee. But, here again employers do not act positively. - In order to evade tax obligations and transparency requirements, they maintain a distance from the workers and blame the workers for noncooperation and non-participation.

- They do not like to disclose the actual financial position and loss and profit accounts because they often play foul in terms of distribution of bonus

What is WPM? - Similarly, negative experiences have been observed from worker‟s representatives when they behave like managers. - These are the bitter experience of the organization.

What is Participation? Participation is one‟s own mental and emotional involvement in decision making process for achieving organizational goals and share responsibility. Three Important Aspects of Participation. 1. A person‟s self is involved rather than his skills; 2. It motivates persons to contribute their own resources of initiative and creativity towards objectives of the organization. 3. It also encourage people to accept responsibility in their group activities. 4. Participation helps them become responsible members of the society and also responsible citizen of the country.

What is Management? It means to manage the affairs of the organization in a systematic way. It involves looking after day-to-day work, decision making policy matter and implementing the policydecisions.

Definition of WPM According to Keith Devis, “Participation refers to the mental and emotional involvement of a person in a group situation which encourages him to contribute to a group goal and share the responsibility of achievement.” According to Walpole, “Participation in Management gives worker a sense of importance, pride and accomplishment. It gives him the freedom of opportunity for self-expression, a feeling of belongingness with the place of work, and sense of workmanship and creativity.”

Concept of WPM The concept of WPM has changed from time to time and country to country. WPM means the workers are given a chance to share the function of the management in achieving the organizational goals of the undertaking. This also called „Industrial Democracy‟ in practice. This participation is achieved through the representatives of the workers at all the levels of management.

Concept of WPM The phrases such as -

Industrial Democracy, Workers Participation, Participative Management, Co-partnership, Co-determination Co-management an d Participation of workers in decision making

are used to described the concept of participative management.

Concept of WPM The concept of WPM includes; 1. It provides scope for employees in decision making of the organization. 2. The participation may be at the shop level, department level or at the top level. 3. The participation includes the willingness to share the responsibility of the organization by the workers.

Objectives of WPM The main objectives of WPM are…. 1. Organizational 2. Psychological 3. Social

Organizational Objectives The Scheme of Workers‟ Participation enhances economic efficiency of the enterprise on account of …

1. Contributing ideas by the workers 2. Upward communication to proper decision making at the top. 3. Accepting decisions and work better, if they participate in them; 4. Fostering more cooperation among workers and management and thus raise efficiency.

Psychological Objectives - It gives full recognition to the human element in industry and generate a greater interest in the operation of the undertaking.

- A sense of belongingness is developed which in turn, results in higher efficiency.

Social Objectives - The concept of participation produces equal status between workers and management through sharing of decision-making process which makes the workers productive, creative and efficient. - It also recognizes the dignity of a man as man and also satisfies his urge for self-expression and makes our democracy functional.

Levels of Participation 1. 2. 3. 4.

Information Participation Consultative Participation Associate Participation Decision Participation

Information Participation -

Information like… 1. Balance-sheet 2. Production 3. Economic Conditions of the Plant 4. Working Conditions etc. should be shared.

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Workers have a right of scrutinizing information provided so that they can have an idea of what is going on in the organization

Consultative Participation -

It involves higher degree of sharing views of the members and giving them an opportunity to express their feelings.

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Members are consulted on such matters relating to welfare programmes, method of work and safety, adoption of new technologies etc.

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The final decision is that of management.

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The workers‟ awareness and involvement have to be positive and direct.

Associate Participation -

The Management has to accept and implement the unanimous decisions taken jointly.

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This creates a climate of partnership.

Decision Participation -

It is the highest form of participation.

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Decision is taken jointly in all the matters of work related issues or interest related issues like Economic, Financial and Administrative Policies etc.

WPM IN INDIA - The origin or ideas of Workers‟ Participation in Management in India can be traced to the report of the Royal Commission on Labour in 1931 which recommended the setting up of joint consultative bodies. - In April,1942, the first tripartite labour conference was held and the pattern of joint consultation at the national level was evolved.

WPM IN INDIA - Workers Participation was incorporated in the Constitution of India in 1976 as one of the Directive Principles of the State Policy. - Article 43A of the constitution relates to participative management and read as follows: “The State shall take steps to secure the participation of workers in the management, establishments or other organizations engaged in any industry.”

WPM IN INDIA ARTICLE – 19 RIGHT TO WORKERS‟ PARTICIPATION 1. All the Workers have the right to participate effectively in management decision making affecting their health and safety. 2. All workers have the right to elect safety representatives. Such representatives have the right to participate in Joint Committees, composed of workers and management representatives in equal number, which meet regularly to address health and safety matters.

3. All the workers have the right to participate in the design and execution of ongoing health and safety studies in their working environment to determine the nature of any risks to health and safety.

WPM IN INDIA ARTICLE – 19 RIGHT TO WORKERS‟ PARTICIPATION

4. All the workers have the right to establish and associate with community hazards centers and information network. Governments and employers have a responsibility to support such organizations and programmes.

WPM IN INDIA - Workers Participation in Management of industries has become one of the accepted goals of the State Policy. - The goal is accepted, but implementation is left flexible.

the method

of its

- The influence of Mahatma Gandhi, the Joint Consultation Model was adopted in the Cotton Textile Industry. - A few Works Committee were set up in the Printing Presses of the Government.

WPM IN INDIA - TISCO had established Joint Committees in 1958.

- The Delhi Cloth and General Mills Co.Ltd., accepted an elected representatives on the Board of Directors. - In Railway Companies, Works Committees were set up. - The Government of India‟s Industrial Policy Resolution of April,1956 also laid emphasized the need for workers‟ participation in management.

WPM IN INDIA - The Government of India‟s Industrial Policy Resolution of April,1956 also laid emphasized the need for workers‟ participation in management. “In a socialist democracy, labour is a partner in the common task of development and should participate in it with enthusiasm. There should be joint consultation, and workers and technicians should, whenever possible, be associated progressively in management.”

WPM IN INDIA - The aim of the government in advocating workers‟ participation in management was part of its overall endeavour to create a socialist society wherein the sharing of a part of managerial powers by workers was considered necessary.

- A Study Group on WPM consisting of representatives of the government, employers and workers was set up on 1956 which examined the systems of WPM in the UK, Sweden, France, Belgium, West Germany and Yugoslavia and they favourd the system of Joint Management Councils and submitted its report in May,1957. It emphasized that :

WPM IN INDIA - In India… 1. an educational campaign should be launched so that workers and managerial supervisory staff may realize the implications of such a scheme.

2. The joint consultation should be „in-built‟ 3. Importance should be given to reorientation of attitudes, self-confident trade unions and good industrial relations for the success of any scheme of participation. 4. No compulsion should be applied in setting up the councils.

WPM IN INDIA - The history of Workers‟ Participation in Management in India clearly makes 3 important Institutional landmarks: 1. Works Committee (1947) 2. the Joint Management Councils (1958) and 3. the Shop Councils and the Joint Councils (1976)

Works Committee - U/S. 3 of the ID Act,1947 provides for setting up of a Works Committee in every undertaking employing 100 or more workmen. - The Works Committee should consist of representatives of employers and workmen who engaged in the establishment. - The number of workers‟ representatives shall not be less than the number of representatives of the employers.

Works Committee - U/S. 3 of the ID Act,1947 provides for setting up of a Works Committee in every undertaking employing 100 or more workmen. - The Works Committee should consist of representatives of employers and workmen who engaged in the establishment. - The number of workers‟ representatives shall not be less than the number of representatives of the employers.

Objectives of Works Committee - To promote measures for securing and preserving unity and good relations between employers and workmen; - To comment upon the matters of their common interest or concern. - To endeavour to compose any material difference of opinion in respect of such matters.

Works Committee In 1959, the Indian Labour Conference drew up an illustrative list of items for the Works Committees to deal with as under: 1. Condition of work such as ventilation, lighting, temperature and sanitation including latrines and urinals. 2. Amenities such as drinking water, canteens, dining rooms, crèches, rest-room, medical and health services. 3. Safety and accident prevention, occupational diseases and protective equipment

Works Committee 4. 5. 6. 7.

Adjustment of festival and national holidays Administration of welfare and fine funds Promotion of economy and savings; Education and recreational activities such as… - libraries - reading rooms, - cinema show, - sports, - games, - picnic parties - community welfare and celebrations 8. Implementation and review of decisions arrived at meetings of Works Committees.

Works Committee Works Committee will not deal with the following items. 1. 2. 3. 4. 5. 6. 7. 8.

Wages and Allowances Bonus and Profit sharing Fixation of workload Fixation of standard labour force Programmes of planning and development Matters connected with retrenchment and lay off. Victimization for trade union activities Provident fund, gratuity schemes and other retirement benefits 9. Incentive scheme 10. Housing and transport services

Works Committee Recommendation of National Commission on Labour, measures to make the Works Committees effective: 1. More responsive attitude on the part of management. 2. Adequate support from trade unions 3. Proper appreciation of the functions of the Works Committees 4. Whole-hearted implementation of the recommendations of the Works Committees.

Joint Management Councils The JMC formed in the year 1958 by Govt. of India to bring the ideas of WPM in practice. It is a voluntary scheme solely based on bipartite agreement without any legal sanction.

Objectives of JMC - To promote cordial relations between management and workers, - To promote understanding and trust between them. - To effect substantial increase in productivity - To secure better welfare and other facilities for workers, - To train workers to understand and share the responsibilities of management

Constitution of JMC - Each JMC shall consist of an equal number of representatives of employers and employees. - There shall be 12 members in large size undertaking and 6 in small size undertaking. - The employers representatives shall be nominated by the management and workers representatives shall be elected by the workers.

Functions of JMC The councils would be consulted by the management on matters like… - Administration of Standing Orders and amendment. - Retrenchment - Closure, reduction in or cessation of operations

their

Functions of JMC The Council would also have the right to receive information to discuss and give suggestions on; 1. General economic situation of the undertaking 2. The state of the market, production and sales programme 3. Organization and general running of the undertaking 4. Method of manufacture and work 5. The annual balance-sheet and profit and loss statement and connected documents and explanation 6. Long term plan for expansion, re-development etc.

Functions of JMC The council would be entrusted with administrative responsibility in respect of … 1. Administration of welfare measures 2. Supervision of safety measures 3. Operation of vocational training and apprenticeship schemes 4. Preparation of schedules of working hours and breaks and holidays 5. Payment of rewards for valuable suggestions received from the employees and