Business Relation
Unit 1: Introduction T.H.6
Concept and purposes of industrial relations;
Process of industrial relations; Actors (workers, employers, government) of
industrial relations system, pluralist and Marxist
Introduction to Industrial Relations
Industrial relation has become one of the most
delicate and complex problems of modern industrial society. Industrial progress
is impossible without cooperation of labours and harmonious relationships.
Therefore, it is in the interest of all to create and maintain good relations between employees (Labours) and employers (Management)
Therefore, it is in the interest of all to create and maintain good relations between employees (Labours) and employers (Management)
Concept of Industrial Relations
The term 'Industrial Relation' comprises of two
terms; "Industry" and "Relations". Industry refers to any
productive activities in which an individual (or a group of individuals) is
engaged. By "relation" we mean "the relationship that exist
within the industry between the employer and his employees (work person)
Industrial relations have three faces: science
building, problem solving, and ethical. In the science building face,
industrial relations are part of the social sciences, and it seeks to
understand the employment relationship and its institutions through
high-quality, rigorous or exact research. In this vein, industrial relations
scholarship cross with scholarship in labor economics, industrial sociology,
labor and social history, human resource management, political science, law,
and other areas. In the problem solving face, industrial relations seek to
design policies and institutions to help the employment relationship work
better. In the ethical face, industrial relations contain strong normative
principles about workers and the employment relationship, especially the
rejection of treating labor as a commodity in favour of seeing workers as human
beings in democratic communities entitled to human rights.
The term industrial relations explains the
relationship between employees and stem directly or indirectly from
union-employer relationship. Industrial relations are the relationships between
employees and employers within the organizational settings. The field of
industrial relations looks at the relationship between management and workers,
particularly groups of workers represented by a union. Industrial relations are
basically the interactions between employers, employees and the government, and
the institutions and associations through which such interactions are mediated.
The term industrial relations have a broad as well
as a narrow outlook. Originally, industrial relations were broadly defined to
include the relationships and interactions between employers and employees.
From this perspective, industrial relations cover all aspects of the employment
relationship, including human resource management, employee relations, and
union-management (or labour) relations.
Now its meaning has become more specific and
restricted. Collective bargaining, trade unionism, worker participation in
decision making, grievance and dispute settlement and labour-management
relations are the fundamental element of industrial relation. Beside that human
resource management is a separate, largely distinct field that deals with non
union employment relationships and the personnel practices and policies of
employers.
Origins
The term "industrial relations" came
into common usage in the 1910s, particularly in 1912 upon the appointment by
President William Taft of an investigative committee titled the Commission on
Industrial Relations. The commission's charge was to investigate the causes of
widespread, often violent labour conflict and make recommendations regarding
methods to promote greater cooperation and harmony among employers and
employees.
Shortly thereafter, the term gained even greater
saliency in the public mind due to the wave of strikes, labour unrest, and
agitation for "industrial democracy" that accompanied the economic
and political disturbances associated with World War I. As a result, by the
beginning of the 1920s universities began to establish industrial relations
centres and programs to conduct research and train students in
employer-employee relations, while progressive business firms established the
first "industrial relations" or "personnel" departments to
formalize and professionalize the management of labour
Conclusion
The field and practice of industrial relations
began in the early years of the twentieth century and evolved in numerous ways
in reaction to a host of far-reaching changes in the economic, political, and
social realm/empire. It began with a broad emphasis on the employment
relationship and the labor problems that grow out of this relationship. As a
result of the rise of mass unionism between 1935 and 1955, the field became
identified in the academic and practitioner worlds with, first and leading, the
study and practice of collective bargaining and labor-management relations.
Since then the unionized sector of the economy has
shrink considerably, while a competitor field of human resource management has
grown and spread—a product of both new ideas and practices and the opening up
of a much-expanded unorganized sector in the labor market. Thus the term
"industrial relations" is increasingly associated with the unionized
sector of the labor market. But a minority of participants continue to view
industrial relations as pertaining to the entire world of work and, in
particular, the three solutions to labor problems: personnel/human resource
management, trade unionism and collective bargaining, and government
legislation.
Importance of Industrial Relations
The
healthy industrial relations are key to the progress and success. Their
significance may be discussed as under –
Uninterrupted
production: The most important benefit of
industrial relations is that this ensures continuity of production. This means,
continuous employment for all from manager to workers. The resources are fully
utilized, resulting in the maximum possible production. There is uninterrupted
flow of income for all. Smooth running of an industry is of vital importance
for several other industries; to other industries if the products are
intermediaries or inputs; to exporters if these are export goods; to consumers
and workers, if these are goods of mass consumption.
Reduction
in Industrial Disputes: Good industrial relations reduce the
industrial disputes. Disputes are reflections of the failure of basic human
urges or motivations to secure adequate satisfaction or expression which are
fully treat by good industrial relations. Strikes, lockouts, stoppage tactics,
gherao and grievances are some of the reflections of industrial unrest which do
not spring up in an atmosphere of industrial peace. It helps promoting
co-operation and increasing production.
High
morale:
Good industrial relations improve the morale of the employees. Employees work
with great zeal with the feeling in mind that the interest of employer and
employees is one and the same, i.e. to increase production. Every worker feels
that he is a co-owner of the gains of industry. The employer in his turn must
realize that the gains of industry are not for him along but they should be
shared equally and generously with his workers. In other words, complete unity
of thought and action is the main achievement of industrial peace. It increases
the place of workers in the society and their ego is satisfied. It naturally
affects production because mighty co-operative efforts alone can produce great
results.
Mental
Revolution: The main object of industrial relation is a
complete mental revolution of workers and employees. The industrial peace lies
ultimately in a transformed outlook on the part of both. It is the business of
leadership in the ranks of workers, employees and Government to work out a new
relationship in consonance with a spirit of true democracy. Both should think
themselves as partners of the industry and the role of workers in such a
partnership should be recognized. On the other hand, workers must recognize
employer’s authority. It will naturally have impact on production because they
recognize the interest of each other.
Reduced
Wastage: Good industrial relations are maintained on
the basis of cooperation and recognition of each other. It will help increase
production. Wastages of man, material and machines are reduced to the minimum
and thus national interest is protected.
Thus,
it is evident that good industrial relations are the basis of higher production
with minimum cost and higher profits. It also results in increased efficiency
of workers. New and new projects may be introduced for the welfare of the
workers and to promote the morale of the people at work. An economy organized
for planned production and distribution, aiming at the realization of social
justice and welfare of the massage can function effectively only in an
atmosphere of industrial peace. If the twin objectives of rapid national
development and increased social justice are to be achieved, there must be
harmonious relationship between management and labor.
Objectives of the Industrial Relation
The main objectives of industrial relations system
are;
- To
safeguard the interest of labor and management by securing the highest
level of mutual understanding and good will among all those sections in
the industry, which participate in the process of production.
- To
avoid industrial conflict or strife and develop harmonious relations,
which are an essential factor in the productivity of workers and the
industrial progress of a country.
- To
raise productivity to a higher level in an era of full employment by
lessening the tendency to high turnover and frequency absenteeism.
- To
establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that
prohibit individuals personality may grow its full stature or tallness for
the benefit of the industry and of the country as well.
- To
eliminate or minimize the number of strikes, lockouts and gheraos by
providing reasonable wages, improved living and working conditions, said
fringe benefits.
- To
improve the economic conditions of workers in the existing state of
industrial managements and political government.
- Socialization
of industries by making the state itself a major employer
- Vesting
of a proprietary interest of the workers in the industries in which they
are employed.
Industrial relations System
An industrial relations system consists of the
whole range of relationships between employees and employers which are managed
by the means of conflict and cooperation.
A sound industrial relations system is one in
which relationships between management and employees (and their
representatives) on the one hand, and between them and the State on the other,
are more harmonious and cooperative than conflictual and creates an environment
conducive to economic efficiency and the motivation, productivity and
development of the employee and generates employee loyalty and mutual trust.
Actors in the IR system:
Three main parties are directly involved in
industrial relations:
Employers: Employers possess certain rights vis-à-vis labors.
They have the right to
hire and fire them. Management can also affect workers’ interests by exercising
their right to relocate, close or merge the factory or to introduce
technological changes.
Employees: Workers seek to improve the terms and conditions of their employment.
They exchange views with management and voice their grievance. They also want
to share decision making powers of management. Workers generally unite to form
unions against the management and get support from these unions.
Government: The central and state government influences and regulates industrial
relations through laws, rules, agreements, awards of court ad the like. It also
includes third parties and labor and tribunal courts.
Scope:
The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.
The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.
The scope of industrial relations is quite vast. The main issues involved here include the following:
- Collective bargaining
- Machinery for settlement of industrial
disputes
- Standing orders
- Workers participation in management
- Unfair labor practices
Theoretical perspectives
Industrial
relations scholars have described three major theoretical perspectives or
frameworks that contrast in their understanding and analysis of workplace
relations. The three views are generally known as unitarism, pluralist and
radical/Marxist. Each offers a particular perception of workplace relations and
will therefore interpret such events as workplace conflict, the role of unions
and job regulation varies differently. The radical perspective is sometimes
referred to as the "conflict model", although this is somewhat
ambiguous, as pluralism also tends to see conflict as inherent in workplaces.
Radical theories are strongly identified with Marxist theories, although they
are not limited to these.
Unitary
Perspective
In
unitarism, the organization is perceived as an integrated and harmonious whole
with the ideal of "one happy family", where management and other
members of the staff all share common purpose, emphasizing mutual cooperation.
Furthermore, unitarism has a paternalistic approach where it demands loyalty of
all employees, being predominantly managerial role in its emphasis and
application.
Consequently,
trade unions are deemed as unnecessary since the loyalty between employees and
organizations are considered mutually exclusive, where there can't be two sides
of industry. Conflict is perceived as disruptive and the pathological result of
agitators, interpersonal friction and communication breakdown.
Pluralistic Perspective
In pluralism the organization is perceived
as being made up of powerful and divergent sub group's management and trade
unions. This approach sees conflicts of interest and disagreements between
managers and workers over the distribution of profits as normal and
inescapable. Consequently, the role of management would lean or twist less
towards enforcing and controlling and more toward persuasion and coordination.
Trade unions are believed as legitimate representatives of employees. Conflict
is dealt by collective bargaining and is viewed not necessarily as a bad thing
and if managed could in fact be channelled towards evolution and positive
change. Realistic managers should accept conflict to occur. There is a greater
propensity or tendency for conflict rather than harmony.
The implications of this approach include:
- The firm should have industrial relations and
personnel specialists who advise managers and provide specialist services
in respect of staffing and matters relating to union consultation and
negotiation.
- Independent external arbitrators should be
used to assist in the resolution of disputes.
- Union recognition should be encouraged and
union representatives given scope to carry out their representative duties
- They should anticipate and resolve this by securing
agreed procedures for settling disputes.
Marxist Perspective
This perspective focuses on the
fundamental division of interest between capital and labor, and sees workplace
relations against this background. It is concerned with the structure and nature
of society and assumes that the conflict in employment relationship is
reflective of the structure of the society. Conflict is therefore seen as
inevitable and trade unions are a natural response of workers to their
exploitation by capital. This view of industrial relations is a by product of a
theory of capitalist society and social change. Marx argued that;
·
Weakness
and contradiction inherent in the capitalist system would result in revolution
and the ascendancy or superiority of socialism over capitalism.
·
Capitalism
would foster monopolies.
·
Wages
(cost to the capitalist) would be minimized to a subsistence level.
·
Capitalists
and workers would compete in controversy to win ground and establish their
constant win lose struggles would be evident.
Measures for Improving Industrial Relations
The following measures should be taken to achieve
good industrial relations:
Strong and Stable Union : A strong and stable union in each industrial
enterprise is essential for good industrial relations. The
employers can easily ignore a weak union on the plea that it hardly represents
the workers. The agreement with such a union will hardly be honoured by a large
section of workforce. Therefore, there must be strong and stable unions in
every enterprise to represent the majority of workers and negotiate with the
management about the terms and conditions of service.
Mutual Trust: Both management and labor should help in the
development of an atmosphere of mutual cooperation, confidence and respect.
Management should adopt a progressive outlook and should recognize the rights
of workers. Similarly, labor unions should persuade their members to work for
the common objectives of the organization. Both the management and the unions
should have faith in collective bargaining and other peaceful methods of
settling disputes.
Workers’ Participation in Management: The participation of workers in the management of
the industrial unit should be encouraged by making effective use of works
committees, joint consultation and other methods. This will improve
communication between managers and workers, increase productivity and lead to
greater effectiveness.
Mutual Accommodation: The employers must recognize the right of
collective bargaining of the trade unions. In any organization, there must be a
great emphasis on mutual accommodation rather than conflict or uncompromising
attitude. One must clearly understand that conflicting attitude does not lead
to amicable labor relations; it may foster union militancy as the union reacts
by engaging in pressure tactics. The approach must be of mutual “give and take
rather than “take or leave.” The management should be willing to co-operate
rather than blackmail the workers.
Sincere Implementation of Agreements: The management should sincerely implement the
settlements reached with the trade unions. The agreements between the
management and the unions should be enforced both in letter and spirit. If the
agreements are not implemented then both the union and management stop trusting
each other. An environment of uncertainty is created. To avoid this, efforts
should be made at both ends to ensure the follow up of the agreements.
Sound Personnel Policies: The following points should be noted regarding the
personnel policies. The policies should be:
o Formulated in consultation with the workers and
their representatives if they are to be implemented effectively.
o Clearly stated so that there is no confusion in
the mind of anybody.
o Implementation of the policies should be uniform
throughout the organization to ensure fair treatment to each worker.
Government’s
Role: The Government should play an active role for
promoting industrial peace. It should make law for the compulsory recognition
of a representative union in each industrial unit. It should intervene to
settle disputes if the management and the workers are unable to settle their
disputes. This will restore industrial harmony.
Progressive
Outlook: There should be progressive outlook of the
management of each industrial enterprise. It should be conscious of its
obligations and responsibilities to the owners of the business, the employees,
the consumers and the nation. The management must recognize the rights of
workers to organize unions to protect their economic and social interests.
Industrial Relations Today
By
many accounts, industrial relations today are in crisis. In academic circles,
its traditional positions are threatened on one side by the dominance of
mainstream economics and organizational behaviour, and on the other by
postmodernism. In policy-making circles, the industrial relations emphasis on
institutional intervention is trumped by a neoliberal emphasis on the fair
promotion of free markets. In practice, labor unions are declining and fewer or
less companies have industrial relations functions. The number of academic
programs in industrial relations is therefore withdrawal, and scholars are
leaving the field for other areas, especially human resource management and
organizational behavior. The importance of work, however, is stronger than
ever, and the lessons of industrial relations remain vital. The challenge for
industrial relations is to re-establish these connections with the broader
academic, policy, and business worlds.
Unit 2: Labor Policies and Legislations T.H.5
Features of labor policy; The Labor Act; The Trade
Union Act and Structure of labor administration in Nepal
History
of labor legislation
The
objectives behind the formulation of labor legislation are,
•
to settle
the industrial disputes in harmonious way,
•
to insure
the economic, ethical and mental welfare of workers,
•
to provide
social justice to laborers,
•
to develop
the national economy by increasing working efficiency through the provision of
international unity through the establishment of labor legislation.
In 1919, International labor organization (ILO)
was established in the form of world labor institution with the purpose of
increasing the standard of living of workers all over the world giving worker
social protection, equal distribution and opportunity of human rights and
providing social justice to the workers.
ILO has given due consideration to the saying
labor is not commodity. After the establishment of UNO on the 10th Dec 1948
UDHR (Universal declaration of Human Right) was made by the GA (General
Assembly) of UNO and gave the recognition to the right to form free trade
unions and right to motherhood of childhood. It was felt necessary to launch
labor laws by state with include all the rights granted by the ILO and UDHR.
In Nepal
Before 2016 B.S. there was no law relating to
industrial relation to protect workers interests and solve the problems between
worker and management.
Ashadh 15, 2016 BS. enacted factory and factory
workers Act, with a view to maintain peace and ensure the economic welfare of the
general public by making suitable arrangement concerning the proper management
of factories.
The safety and comfort of factory's workers and
settlement of disputes between factory employees and workers. But this Act was
enforced only on push 1 2018 BS.
Labour Act,2048 (1992)
Preamble: Whereas it is expedient or useful to make timely
provisions relating to labour by making provisions for the rights, interests,
facilities and safety of workers and employees working in enterprises of
various sectors.
Definition
"Production process" means any of the
following processes:
•
works
relating to making, altering, repairing, ornamenting, engraving, Finishing,
packing, oiling, washing, cleaning, breaking-up, dismantling or other kinds of
activities given to any article or substance with a view of bringing it to its
use, sale, distribution, transportation, or disposal.
•
Pumping of
oil, water, or sewage of dirt
•
Generating,
transforming, and transmitting energy; or
•
Printing,
lithography, photography, book-binding and other similar work.
"Enterprise
It means any factory, company, organization,
association, firm, or group thereof, established under the prevailing laws for
the purpose of operating any industry, profession or service, where ten or more
workers or employees are engaged and this expression also includes:
•
Tea estates,
established under the law for commercial purpose;
•
Enterprise
"Worker"
It means a person employed on the basis of
remuneration to work in any building, premises, machinery or any part thereof
used for any productions process or providing service, or any act relating to
such work or for any unscheduled works and this expression also includes any
worker working at piece-rate, contract or agreement.
"Proprietor" means the person having final authority on the
activities of the Enterprise and this expression
also includes any person appointed as the Chief of any branch or unit of the Enterprise
" Remuneration" means the remuneration or wage to be received in
cash or kind from the Enterprise by the worker
or employee for the works performed in the Enterprise
Employment and Security of Service
•
Sec. 3(1)
deal classification of job. The Proprietor shall classify the job according to
the nature of production process, service or functions of the Enterprise
•
Sec. 4(1)
deal Appointment of Worker and Employee. Before to appoint a worker or employee
in any post, Manager Shall have to advertise in order to select them and
selected person shall have to be provided with appointment letter.
The appointed shall be kept on probation period unless
completes the continuous service period of one year and, based on, efficiency,
sincerity discipline, diligence towards works, punctuality, etc in this period
he/she shall be appointed permanently.
An appointment letter shall be provided with the
name of the post and remuneration and conditions of service while making such
appointment. Information thereof shall also be provided to the Labour Office.
Prohibition of Engaging Non-Nepalese Citizens at
Work
•
According to
sec. 4A. of the Act, Non-Nepalese citizens shall not be permitted to be engaged
at work in any of the posts classified pursuant to Section 3.
•
Sec. 5 deal
to Minors and females may be engaged in the works normally from six o'clock
in the morning till six o,clock in the evening, except in the prescribed conditions.
Appointment in Contract Service
•
According to
sec. 7, need of Enterprise
•
sec.8 deal
that any change in the ownership of the Enterprise
shall not be deemed to have affected on the terms and conditions of service of
the workers and employees of the Enterprise
Separate Registers to be Kept
According to sec. 9(1) separate registers of the
workers and employees mentioning the following particulars –
(a)
Name of the worker or employee,
(b)
Nature of job,
(c)
Remuneration and method of its payment,
(d)
Other prescribed particulars.
The
register maintained under Sub-section (1) shall have to be submitted when
demanded by the Labour Officer, Factory Inspector or any other person
designated by the Labour Office.
Security of Service
Sec.10 said that, the service of any permanent
worker or employee may not be terminated without following the procedures
prescribed by this Act or the Rules or Bylaws made under this Act.
Sec. 12 (1) said that, any special circumstances,
the production or service of the Enterprise had to be curtailed or it has to be
closed party or wholly for more than three months, the Proprietor may, with the
approval of Government of Nepal through the Department of Labour, retrench in
the number of the workers and employees, partly or wholly, of the Enterprise.
Compulsory Retirement
•
Sec. 15 said
that the Proprietor may compulsorily retire any worker or employee who has
crossed the age 55. Provided that he/she may extend the period of service of
any worker of employee by 5 years, in case the worker or employee is
indispensable for the operation of the functions Enterprise.
Working Hour
Sec. 16 said that,No worker or employee shall be
deployed in work for more than 8 hours per day or 48 hours per week and they
shall be provided 1 day as weekly holiday for every week.
Sec. 18 that, where work may be interrupt, no
worker or employee shall be deployed in work for more than five hours
continuously without an interval of half an hour for tiffin. Where works have
to be carried out continuously without interruption, such intervals shall be
provided on rotation basis.
Minimum Remuneration Fixation Committee
Sec.21. (1) Government of Nepal may fix the
minimum remuneration, allowances and facilities of workers or employees or
Enterprises on the recommendation of the Minimum Remuneration Fixation
Committee and the notification on rates so fixed shall be published in the
Nepal Gazette.
Prohibition on Deduction of Remuneration
Sec. 24. (1) said that, the remuneration of
workers or employees shall not be deducted expect under the following
circumstances –
(a) In case it is required to realize any fine
(b) In case it is required to deduct against
absence
(c) In case it is required to deduct against loss
or damage caused by intentionally or negligently;
(d) In case it is required deduct in respect of
providing prescribed facilities
(e) In case it is required to deduct in respect of
advance or over payment of remuneration;
(f) In case it is required to deduct in respect of
the period of suspension
(g) In case it is required to deduct under the
order of government office or court'
(h) In case it is required to deduct as per the
notification of Government of Nepal published in the Nepal Gazette; or
In case it is required to deduct in respect of
income tax or any other tax levied under prevailing laws.
Provisions Relating to Health and Safety
According to sec. 27, Proprietor shall make the arrangements in the Enterprise
(a) To Keep clean and tidy by cleaning daily
including with germicidal medicines, necessary arrangements of proper drainage
and coloring from time to time and preventing from odor or smell
(b) To make arrangements for adequate supply of
fresh air and light as well as proper temperature in the working rooms
(c) To make arrangements of removal and disposal
of solid waste during production process,
(d) To make arrangements of prevention of accumulation
of dust, fume, vapor and other impure materials in working rooms which would
adversely affect the health;
(e) To make arrangements of necessary preventive
personal devices for protection of health from adverse any other source, and
make provisions this would produce less noise during the work process;
(g) To make provisions for sufficient water in the
Enterprise where chemical substances, are used or produced which may be
injurious to the health, for the purpose of extinguishing fire or washing and
cleansing during emergency situations;
(j) Too cause to conduct compulsory health
check-ups of the workers or employees once every year in the Enterprises where
the nature of works is likely to affect the health adversely.
Welfare Provision
Sec 37, Welfare
Fund
Sec.
38, Compensation
Sec.
39, Gratuity, Provident Fund and Medical Expenses
Sec.
40, Leave
Sec.
41, Provision of Quarters:
Sec,
42, Provisions Relating to Children
Sec.
43, Relaxing Room
Sec.
44, Canteen
Special Provisions to be Applicable to Special
Type of Enterprise
According to Sec. 45 said that the Special
provision mentioned as below shall be applicable in respect of the tea
estates;
(a) Formation of Committee
(b) Provision of Quarter
(c) Provisions of Primary Health Care
(d) Safety Devices
(e) Provisions of Primary School
(f) Daily Consumer Goods
(g) Provision for Entertainment
(h) To get the works done on contract
Construction Business
(a) Provisions for Construction Tools
(b) Special Arrangements at Temporary Construction
Sites
(c) Accident Insurance
(d) Safety Arrangements
Transportation Business
(a) Working Hours
(b) Trip Allowance
(d) Accident Insurance
(e) First Aid Materials
(f) Prohibition of Alcoholic Drinks
(g) Commission Agent
Business of Hotel, Travel, Trekking, Adventure,
Rafting, Jungle Safari etc
(a) Females may be engaged in work
(b) Safety of Workers or Employees engaged in
Trekking or Rafting
(c) Accident Insurance
(d) Payment of Field allowance etc
(e) Provisions for First Aid
Conduct and Punishments
According to sec. 50, Proprietor may punish any
worker or employee performing misconduct with any of the following punishments.
(a) To reprimand,
(b) To withheld annual grade increments,
(c) To suspend, or
(d) To dismiss from service.
Appeal
According to sec. 60, Any party not satisfied with
any punishment awarded under this Chapter may file an appeal within 35 days
from the date of such punishment of order in the following manner –
(a) At the Appeal Court
(b) At the Court of Appeal in respect of the case
tried and decided in original jurisdiction by the Labour Court
(c) At the concerned Labour Court
Labour Relation Committee
According to Sec.63, there should be a Labour
Relation Committee in each Enterprise
Settlement of Labour Dispute
According to the sec.72, Government of Nepal
shall, establish Labour Court
Special Provisions for Settlement of Dispute
According to Sec. 83(1), GoN deems that a dispute
between workers or employers and the Proprietor has arisen or there is
possibility of arising, GoN may constitute a committee of one of more persons,
or tripartite committee consisting of representatives of the Proprietor, the
workers or employees and GoN in order to resolve the dispute. Such committee
may regulate its own procedures.
Trade Union Act, 2049 (1992)
Preamble : Whereas it is expedient to make legal provision
regarding registration, operation of Trade Union and other necessary provisions
relating to it for the protection and promotion of professional and
occupational rights of the persons engaging in self-employment and the workers
working in various industry, trade, profession or service in Enterprises or
outside the Enterprises.
Definitions
"Worker" means the worker engaged in various industry,
trade, profession or service in the Enterprises or outside the it on permanent,
temporary, agreement, daily wages, piece-rate or contract basic or working
there under and the Agriculture Labourer.
This term also includes the other personnel and
the person engaged at self-employment, except those personnel who are working
at the Manager or Proprietor level and who are working as the chief of its
department, branch, sub-branch and unit.
"Agriculture Labourer" means the person who earns livelihood by working
on wages or paid Labour in agriculture sector"
"Trade Union" means the Enterprise
There are 3 types of Trade Union they are; Enterprise
Registration of Trade Union
Registered of Enterprise
Level Trade Union: According to Sec. 3 (1), The
workers of concerned Enterprise
But an application in the prescribed form signed
by at least ten members of the Trade Union with the Constitution of the Trade
Union, prescribed fee and other prescribed particulars shall submit to the
Registrar.
That kind of Trade Union shall not be registered
if at least twenty five percent workers of the concerned Enterprise
Registration of Trade Union Association: According
to sec. 4(1) At least
fifty enterprise Level's Trade Union or five thousand Agriculture Laborers of
at least twenty districts comprising one hundred persons from each district or
Five thousand workers of similar nature Enterprise
In order to register a TUA constituted with an
application in the prescribed form along with a copy of mutual agreement, the
statute of the trade unions, prescribed fee and other prescribed particulars
shall submit to the Registrar.
Registration of the Trade Union Federation: According to sec. 5(1) At least ten TUA may
constitute a TUF by mutual agreement.
In order to registrar a an application in the
prescribed form with a copy of mutual agreement, statute of the TUF, prescribed
fee and other particulars shall submit to the Registrar.
Notwithstanding anything contained in above, no
TUF shall be eligible to be member of more than one TUF at a time. After the
registration of a TUF its registration shall remain valid for one year even if
the number of member of such TUF declines upto 10 %
Refusal of Registration
Sec. 7 deal about refuse to register a Trade Union
in the following circumstance:
•
If necessary
particulars are not attached with the application.
•
If at least
25 percent worker of the concerned Enterprise
•
If the
particulars mentioned in Section 10 are not being included in the of the
statute of Trade Union
Operation, Management and Recognition of the Trade
Union
Autonomous and Corporate body
(1) It shall be an autonomous and Corporate body
having perpetual succession.
(2) It Shall have a seal of its own to carry out
its activities.
(3) It may acquire, posses, dispose or manage by
other means of its movable and immovable property as a person.
(4) It may sue or be sued under its name as a
person.
Sec. 9 Objectives
(a) To engage in economic and social development
of the workers by improving their working conditions .
(b) To make an effort to establish good
relationship between worker and management.
(c) To assist in the development of Enterprise by increasing the productivity of Enterprise
(d) Try to make the workers dutiful and
disciplined.
In addition to the objectives mentioned in above,
the TUA and the TUF shall have the following objectives:-
(a) To conduct activities providing education to
the worker.
(b) To establish relation with International
institutions for the benefit of the workers.
(c) To provide necessary advice to Government of
Nepal in formulating the Labour Policy.
(d) AS required to conduct workshops, seminar etc
and publish facts and figures beneficial to the workers.
(e) In order to protect and promote the rights and
interest of the workers negotiate with Government of Nepal and take other
necessary measures subject to the prevailing law.
Sec 9 b, Functions Duties and powers of TUA and
TUF
In addition to the functions, duties and powers
referred to in their Statute of the TUA and TUF, the other functions, duties
and powers shall be as follows:-
- To carry out and cause to be carried out the
acts and proceedings and programmes as required for the achievement of the
objectives of the TUA and TUF
- To require their members to participate in
the elections of TUA and TUF.
- To require their members to abide by the
decisions of the TUA and TUF
- (d) To take necessary measures in order to
resolve the Labour disputes by entering into negotiations with Government
of Nepal, with professional associations and federations of various types
as well as with the Enterprises, representing the entire workers on policy
level labour disputes,
- (e) To negotiate with the concerned
- (f) To establish and operate various types of
funds for the benefit and welfare of the workers,
- (g) To make public the facts of oppression
committed against a worker and Trade Union and to make aware the concerned
Sec. 10, Statute
The following particulars shall be included in the
statute of the Trade Union:-
(a) Name and address of Trade Union;
(b) Objective of the establishment of Trade Union;
(c) Procedure of the formation of the working
committee as well as the term of office to be a maximum period of four years;
(d) General Membership, the number of officials
and the mechanism (process) of their election;
(e) Provision that only a worker, who is a Nepali
Citizen and having served continuously for one year to be elected for the
official post;
(f) Provision regarding fund of the Trade Union
and its auditing;
(g) Provision regarding inspection and examination
of the account of the Trade Union.
(h) Provision to bring the vote of no confidence
against the officials;
(i) Provision regarding functions, duties, powers
and meeting of the working committee and the General Meeting of the Trade Union.
(j) The Procedure of amendment of the statute of
Trade Union;
(k) Provision regarding dissolution of the Trade
Union;
(l) Provision regarding liability and assets of
the Trade Union after its dissolution.
Sec. 28. Penalties
•
If any
office-bearer, member or any employee of the TU misappropriates the property of
the TU or the property of the fund and programme operated by such TU or causes
loss and damage of any kind to such property, the Labour Court may order to
recover and realise from such person the amount equal to the amount so
misappropriated or caused loss and damage and may impose a fine of upto five
thousand rupees or impose an imprisonment of upto one year or impose both
punishment.
•
If the
particulars, reports, notices, or any other documents to be submitted on behalf
of the TU in accordance with this Act or the Rules under this Act is not
submitted or false particulars are submitted, the Registrar may fine the
concerned official to the extent of Rupees five hundred.
The Highlights of Labor
Policy: A Critical Evaluation (October 12)
"Workers
of all Countries Unite"
Labor,
as it is, is one of the most important factors of production. Land may remain
unexploited and capital idle if labor does not come into the picture. It is
said to be the prime mover of all the means of production.
The
importance of labor is laid down as: "Labor is the source of all wealth,
the political economist assert. And it really is the source - next to nature,
which supplies it with the material that it converts into wealth. But it is
infinitely more than this. It is the prime basic condition for all human
existence, and this to such an extent that, in a sense, we have to say that
Labor created man himself." (Karl Marx and Frederick Engels: Selected
Works, Vol III, P 66).
Labor
is, thus termed as means and end of production and consequently human welfare.
"The mastery over nature began with the development of hand, with labor,
and widened man's horizon at every new advance. He was continually discovering
new, hitherto unknown properties in natural objects". (Ibid-P-68). And
since labor cannot be separated from laborer, we need to know the present
scenario of workers' position in different parts of the world.
There
are 120 million or so unemployed worldwide and millions more have given up the
hope of finding work. (World Development Report, 1995). The same is true in the
case of India India
The
matter becomes more clear when we see that social security schemes or welfare
measures in the forms of pension, medical reimbursement, die-in-harness,
maternity benefit, or any policy or program related to the welfare of labor can
at best cover only the workers in formal/organized sector who make up just 15
per cent of the labor force in low income countries including India.
Majority
of the workers in informal sector and rural areas, as such, remains in all
forms of dismal manifestations. In Manipur, as also in other parts of the
country, the workers, particularly the workers in informal sector are in
deplorable condition. For instance, screen printers, tobacco harvesters, cement
bag dusters, agarbati workers, workers in local made mosquito smoke made of
DDT, rag pickers, construction workers, hotel boys, etc. suffer from numerous
health problems. What begins as a minor occupation related health problem might
develop into a serious dreaded disease.
Besides,
discrimination on grounds of sex is alarming. A female worker earns lesser
amount (Rs 10-20) than the male counterpart during agricultural peak season for
the same work. However, many are on this pitifully low return to their hard
work. "Besides, physical problems, mental stress too takes its toll. Women
at work often tend to be worried about home and family income. There may be
sexual exploitation of these women at work. And at home too, they may suffer
physical violence." (Times of India
It
will be worthwhile to mention something about child labor also. Restaurants,
hotels, transport services, etc are the best example where plenty of child
labor operate. A passenger bus has at least two conductors/handymen of tender
age. Their work remains near to servitude. This state of affairs relate to
"poverty" and poor quality or availability of education.
Children
in poor families work because the family needs extra income, especially if the
parents' major source of revenue is uncertain/meager. As parents' income rise,
the problem could be minimized to some extent. In India
The
government of Manipur has announced the absence of child labor in the state, in
spite of the fact that their physical appearance is in sight in both rural and
urban areas. It can be undoubtedly generalized that for most households, poor
and prosperous alike, income from work is the main determinant of their living
condition.
The
economic objectives of households are similar everywhere: families seek to meet
their basic needs; improve their living standard; manage the risks they face in
an uncertain world; and expand opportunities for their children. Here, as a
result, we should say economic growth is good for workers. Investment in
skills, health and nutrition of workers is key both to their welfare and to
economic success.
Imperatives
of Labor Policy: Before we come to the points on labor policy, let us spare
some time on the economic scenario of the state vis-à-vis the country.
Now is
the time of changes. From feudal-like socio-economic formation, the economy is
compelled to leapfrog to the present day knowledge-based economy. IT revolution
has enhanced it. The one leg is in the survival-oriented economy and one leg is
trying to step in the world of changes. It is unfortunate also that event today
we have 33 percent of the population below poverty line. Literacy rate is high
but number of educated persons is low.
A
technical center is at the infant stage after 20th century. There is crying
phenomenon of 'miseducation'. Of its own, the tiny land locked state, Manipur,
remains industrially zero. The geo-political constraints and other natural
hindrances captivated the economy in the rut of fundamental backwardness. And
here, by employment we mean merely government jobs.
The
ratio of the government employees to the population is alarmingly large. It is
1:25 as against the all - India
The
dilemma is accentuated by another very important factor supporting "this
trend of change - urbanization in some cases - is the age profile of the
population. It is estimated that as much as 67 per cent of the population will
be under 34 years now. The pre-dominantly young population will seek novelty,
variety and display greater propensity to change". (Perspective Plan for
the North East, - by North Eastern Council, NEC, Shillong).
As
such, a sound level policy should bear all these images. Isolated move would be
fruitless and lead us nowhere. Thus, we should afford such a policy that suits
the economic changes and realities in tune with new economy. Simultaneously the
question of 2Hs- health and happiness is to be kept in active consideration.
Thus, a good policy will
generally involves action in three areas:
1) Enhancing mobility
2) Reducing income insecurity and
3) Equipping workers for change
1) Enhancing mobility
2) Reducing income insecurity and
3) Equipping workers for change
Thus, enabling the
workers to work in atmosphere of:
1) Establishing the rules of management-management negotiations;
2) Spelling out right for workers, job security
3) Securing for income insecurity
4) Establishing dispute resolution mechanism; and
5) Promulgating basic health and safety regulation much remains to be done to improve the management market.
(Courtesy: The Imphal Free Press)
1) Establishing the rules of management-management negotiations;
2) Spelling out right for workers, job security
3) Securing for income insecurity
4) Establishing dispute resolution mechanism; and
5) Promulgating basic health and safety regulation much remains to be done to improve the management market.
(Courtesy: The Imphal Free Press)
FNCCI
Labour
Force
Industrial
Relations
Legal
Framework
The Labour Act, 1992 lays down the legal framework and the basis for the rules, regulations and guidance on the proper management of any establishment employing 10 persons or more. It deals with matters relating to employment and security of employment, working hours and minimum wages, welfare of employees, employer employee relations and the settlement of labour disputes. Labour Regulation, 1993 complements the Labour Act with further clarification in issues such as security of profession and service, remuneration and welfare provision, health, cleanliness and safety, etc. The Bonus Act of 1974, as amended subsequently, provides a legal basis for the payment of bonus to the workers and employees of factories and commercial establishments.
Wages
and Salaries
The minimum wage rates set by the government are comparatively lower than the going wage rates for workers in SAARC and other countries of the region. Salaries of middle management executives, technical grade officers, engineers and other professionals are generally lower than in other developing countries. Permanent employees of a factory should contribute 10 percent of the monthly salary to a provident fund and the management should make a matching contribution. Gratuities are payable to workers who have worked for over 3 years.
Working
Hours, Holidays
Normal working hours are fixed at 48 hours per week, 8 hours a day. Continuous working hours should not exceed 5 hours. There should be a break of half an hour. Overtime work is remunerated at one and a half times the normal wage. In addition to 13 public holidays, permanent workers are entitled to one day's home leave for every 20 days, 15 days medical leave with half pay and one month special leave without pay every year. Female employees are entitled to 52 days maternity leave with full pay. Such maternity leave shall be granted only twice during the entire period of service. The compulsory retiring age for workers is 55. However, in the case of a skilled worker whose service is indispensable, the retirement age could be extended upto 60 years.
Industrial
Policy 2010: Good but inadequate reform
CHANDAN SAPKOTA
Despite the never-ending
political uncertainty, something good happened in the economic policy front. A
long-awaited industrial policy (IP) to buttress the domestic industrial sector
was endorsed by the government two weeks ago. This new IP replaced the outdated
IP of 1992.
The main objectives of the new
IP are to promote industrial activity, increase employment generation, and
boost per capita income. The government hopes to increase contribution of the
industrial sector to the economy and expects a reduction in poverty. Though the
new IP has numerous progressive and encouraging policy agendas, it is also
riddled with loopholes and inconsistencies. It looks like a typical government
document formulated without adequate consultation with associated parties and
without prior appraisal by independent agencies.
The new IP makes it clear that
the 1992 IP did not do a good job in promoting the industrial sector. The
contribution of the industrial sector to GDP is decreasing, especially after
the start of Maoist insurgency. Furthermore, it is paradoxical that the annual
growth rate of the industrial sector is declining after the implementation of
the 1992 IP. The dream of laying out a foundation for structural
transformation, thus absorbing surplus agricultural and unemployed labor in the
industrial sector, has remained a fairly tale.
Let me
start with some of the salient features in the new IP. It promises flexible
labor policy, including the ‘no-pay-for-no-work’ principle. It allows easy exit
from business for promoters, freeing them from long-term labor and other
liabilities. Tax and income rebate incentives and easy credit are offered to
export-oriented firms. It promises tax holidays for 10, 7, and 5 years to firms
that invest respectively in highly underdeveloped (21 districts), undeveloped
(15 districts) and less developed (24 districts) areas. As always, it aims to
promote Special Economic Zones (SEZs) and institute ‘one-window’ policy for all
industrial activities.
It
aims to promote value-added industries and facilitate supply and adoption of
new technology to increase production and productivity. The government promises
to purchase goods that are produced by domestic firms if there is 30 percent
value-addition in the final product. Furthermore, it offers to establish a
bunch of bureaucratic organizations to promote trade. It aims to upgrade
technical and skill-related aspects of the existing administrations related to
the industrial sector.
Though the new
Industrial Policy has numerous progressive and encouraging policy agendas, it
is also riddled with loopholes and inconsistencies. It is formulated without
adequate consultation with associated parties.
Great! It looks like a
good IP, at least better than the previous one.
However, there are some
inconsistencies and poorly-formulated plans that are worth mentioning. The
document is indecisive in identifying the priority sectors, is ambiguous, and
might distort incentives instead of enhancing them. Let me explain.
Despite numerous incentives,
the IP is not clear if the overall strategy is either to ‘lead the market’ or
to ‘follow the market’ or to do both. There is a danger that it might end up
being an import-substituting policy in some sectors rather than promoting and
sustaining competitive-edge of our industries. This is evident from the
government’s willingness to impose anti-dumping duty and countervailing duty
(CVD) on imports. If we injudiciously impose tariff and non-tariff barriers,
then other countries might follow suit, especially on our exports. It will have
negative impact on some sectors, as was seen when India
There is no clear-cut
identification and preference of industries based on national priority. The
whole exercise looks like a spray-gun strategy trying to encompass everything
under the roof of the industrial sector. Since the economy is resource
constrained, both financially and in human capital, it should have promoted the
industries that matters the most. It means tackling the binding constraints
head on.
Our biggest constraint on economic growth is a lack of infrastructure, chiefly transport, energy and communication. The IP should have given utmost priority to addressing this constraint. This sector would be an obvious ‘winner’ with very little distortion of incentives. Why? Because domestic demand for infrastructure, energy and communication is higher than supply, offering a huge potential profitable markets. Moreover, there is tremendous demand for energy from neighboring Indian states.Bhutan
Our biggest constraint on economic growth is a lack of infrastructure, chiefly transport, energy and communication. The IP should have given utmost priority to addressing this constraint. This sector would be an obvious ‘winner’ with very little distortion of incentives. Why? Because domestic demand for infrastructure, energy and communication is higher than supply, offering a huge potential profitable markets. Moreover, there is tremendous demand for energy from neighboring Indian states.
The proposed
“one-village-one-product” strategy seems nonsense, politically-charged and
populist policy. It is a catchy slogan which basically means one village
specializing in one product. This discounts the possibility of creating
synergies among production processes and techniques, i.e. very little
possibility for economies of scale and harmonization of products and production
structure. How are we going to decide a product each village will specialize
in? Similarly, will there be enough resources, financial and human capital, to
bring about such specialization? This kind of open-ended and wooly strategy
dilutes the very purpose of having a well-directed, specific and incentive-enhancing
IP.
It offers varying incentives
to industries willing to operate in less developed districts. This will not
lead us much far because businesses, by nature, try to concentrate in places
where their counterparts and complementary industries are operating. A firm
will be disinclined to operate in less developed districts despite offer of
good incentives, which might not offset the increase in cost of production
incurred by operating in less developed areas. Simply constructing roads up to
factory sites won’t suffice for the promotion of industries in rural areas.
Furthermore, rather than
coming up with brand new programs, it would had been better to upgrade or
overhaul the existing ones such as the promotion of the IT park, expediting the
establishment of SEZs, and importing technologies to update the outdated
technological base of the industrial sector.
There are endogenous and
exogenous variables contributing to the decline of the industrial sector. The
endogenous variables are utter ignorance and lack of domestic firms to increase
price and quality competitiveness of products, and a habit of doing business
under other’s tutelage rather than their own intellect and sound management.
The business community relied more on concessions, of various nature and
degree, derived by coaxing politicians rather than banking on their own ability
to discover the potential to intrude and expand in new markets. This habit and
nature of doing business became self-reinforcing once the nexus between
business community and politicians became stronger. Additionally, it choked
product specialization and diversification, further necessitating the need to
seek political blessing for survival in the competitive market. It was evident
from the failure of numerous export-oriented firms, the most infamous being the
textiles and garment industry.
The most binding constraints
on industrial activity are the exogenous variables such as lack of
infrastructure and energy, deficient human resources, deteriorating labor and
industrial relations, political instability and policy inconsistency. The state
has to address these constraints decisively. Else, the IP’s effectiveness will
be very minimal.
Published on 2010-05-29
02:23:04
Unit
3: Trade Unionism
Concept,
objectives of trade unions and methods of achieving the objectives; Features
and functions of trade unions; Types of trade unions; Theories of trade
unionism; Trade unionism in Nepal growth, characteristics, present position and
right and responsibilities.
Concepts
of Trade unionism
Here
is one important question facing the workers every day. The question is why
working class fight capitalism in order to win? What efficient means of action,
what tactics can they use to overcome power? No science, no theory, could tell
them exactly what to do. But spontaneously and mechanically, by feeling out, by
sensing the possibilities, they found their ways of action. Due to the change
of time and passage, capitalism grew and controls the production activities and
increased its power, similarly the power of the workers also increased. It is
clear that with changing conditions, the forms of action, the tactics of the
class struggle have to change also. Trade unionism is the primary form of
labour movement in fixed capitalism. The isolated worker is powerless against
the capitalistic employer. To overcome this handicap, the workers organise into
unions. The union binds the workers together into common action, with the
strike as their weapon. Then the balance of power is relatively equal, or is
sometimes even heaviest on the side of the workers, so that the isolated small
employer is weak against the powerful union. Hence in developed capitalism
trade unions and employers' unions (Associations, Trusts, Corporations, etc.),
stand as fighting powers against each other.
In
other words trade union means any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the relations between worker and
employers or worker and worker or employers and employers. Then it is talks
about three relationships.
Features
of trade unions
Following
are the features of trade union;
- It is an association either of
employers or employees or of independent workers.
- It is formed on a continuous
basis. It is a permanent body and not a casual or temporary one. They
persist throughout the year.
- It is formed to protect and
promote all kinds of interests –economic, political and social-of its
members. The dominant interest with which a union is concerned is,
however, economic.
- It achieves its objectives through collective
action and group effort. Negotiations and collective bargaining are the
tools for accomplishing objectives.
- Trade unions have shown remarkable progress
since their inception; moreover, the character of trade unions has also been
changing. In spite of only focusing on the economic benefits of workers,
the trade unions are also working towards raising the status of labors as
a part of industry.
Objectives
of Trade Union
- To
improve the economic lot of employees by securing for them better wages.
- To
secure better working conditions for the workers.
- To
secure bonus for the employees from the profit of the concern
- To
resist schemes of the management which reduce employment, e.g.,
rationalisation, computerization, automation and mechanization
- To
secure welfare of employees through group schemes which give benefit to
every employee
- To
protect the interests of employees by taking active participation in the
management.
- To
secure social welfare of the employees.
- To
secure organisational stability, growth, and leadership.
Functions
of Trade Unions
Broadly
speaking, trade unions perform two types of functions that is Militant and
Fraternal Functions.
Militant
Function
One
set of activities performed by trade unions leads to the betterment of the
position of their members in relation to their employment. The aim of such
activities is to ensure adequate wages secure better conditions of work and
employment get better treatment from employers, etc. When the unions fail to
accomplish these aims by the method of collective bargaining and negotiations,
they adopt an approach and put up a fight with the management in the form of
so-slow, strike, boycott, gherao, etc. Hence, these functions of the trade
unions are known as militant or fighting functions.
Fraternal Functions
Another
set of activities performed by trade unions aims at rendering help to its
members in times of need, and improving their efficiency. Trade unions try to
foster a spirit of cooperation and promote friendly relations and diffuse
education and culture among their members. They also arrange for legal
assistance to its members, if necessary. Besides, these, they undertake many
welfare measures for their members, e.g., school for the education of children,
library, reading-rooms, in-door and out-door games, and other recreational
facilities. Some trade unions even undertake publication of some magazine or
journal. These activities, which may be called fraternal functions, depend on
the availability of funds, which the unions raise by subscription from members
and donations from outsiders, and also on their competent and enlightened
leadership.
Development
of Trade Unionism in Nepal
Basically
development of trade unionism in Nepal
During
the Rana Autonomy (1816 to 1950)
Hundred
and four year's family Rana Regime took the sovereignty of the country in their
hands. This period was the black period in Nepalese history. They ruled the
country as their personal property, enjoying unrestrained political power.
Basic rights were nonexistent and people had to undergo all sorts of exploitation.
Economic
Environment
Rana
was enjoys the every economic benefits. Industrialization was never an
objective of the Rana family who ruled up to 1950. In 1936 the first Company
Act was introduced which set the tone of industrialization. Before 1943, two
major industrial units that is Biratnagar Jute Mills, 1936 and Morang Cotton
Mills, 1942 jointly employed more than 80 percent of about 3,500 estimated
industrial workers in Nepal
Origin
of Trade Unions in Nepal
The
history of trade union movement in Nepal Nepal Nepal
From
the Democracy innovation to Panchayat System (1951 to 1961)
In
1951 ANTUC and BWU became united and formed the first trade union federation in
Nepal
Biratnagar
Workers’ Union, Cotton Mills Workers’ Union, All Nepal Trade Union Congress,
Independent Workers’ Union, Biratnagar Mills Workers’ Association, All Nepal
United Workers’ Union, All Nepal Trade Union Organisation and Nepal Labour
Union. But these unions were merely instruments of the political parties
without the capacity of free collective bargaining. This is clear from the fact
that Girija Prasad Koirala, now, the president of Nepali Congress Party and
late Mana Mohan Adhikari, former president of the United Marxist-Leninist
Party, were active both in trade unions and their respective parties. After the
success of democratic struggle against 104 years of Rana family rule in 1950
freedom of expression and organisation became part of political life.
During
the Panchayat System 1962 onwards.
The
Nepalese political history took a new turn in 1960 when the King staged a
putsch, banned the political parties and trade unions and established a
partyless Panchayat system in 1962. This system limited the freedom of
expression and association but envisioned creating exploitation-free society
through the harmonisation and co-ordination of the interests of different
classes. For this, six different class organisations including Nepal Labour
organisation were created. As this organisation was controlled by the system
and also that the central body was heavily politicised, the objective of
ensuring the labour welfare remained unfulfilled. Still, some of the noticeable
achievements were also made during this period in the field of labour
administration, such as, establishment of a separate labour ministry, department
and some labour offices and the admission of Nepal
After
restoring the Multiparty Democracy, 1990
Multi-party
democracy was restored in the spring of 1990 in the country after the success
of people's movement, in which many professional organisations, including
workers had actively participated. The Constitution of the Kingdom of Nepal
Three major federations existing in the
country are
Democratic Confederation of Nepalese
Trade Unions (DECONT) and
General Federation of Nepalese Trade
Unions (GEFONT)
Nepal Trade Union Congress (NTUC) was
established in 1947 with the objectives of promoting workers rights. The labour
movement in Nepal Nepal
Democratic Confederation of Nepalese Trade Unions
(DECONT) is established on May 1, 1997 after it broke away from
NTUC. It is not affiliated to Nepali Congress party but works closely with
former Prime ministers Krishna Prasad Bhattarai- Sher Bahadur Deuba group in
particular. This division extends to the grassroots level on factional lines of
the political party.
General Federation of Nepalese Trade Unions (GEFONT)
was established in July 20, 1989 with four founder federations: Nepal
Independent Workers Union (NIWU), Independent Transport Workers’ Association of
Nepal (ITWAN),Nepal Independent Workers’ Union (NIHWU) and Trekking Workers’
Association of Nepal (TWAN). It is affiliated to Communist Party of Nepal
Unified Marxist-Leninist party (CPN-UML). A small faction splinted from GEFONT
formed Independent Confederation of Nepalese Trade Unions (ICONT) on March 14,
1998. ICONT is affiliated to CPN Marxist-Leninist party (CPN-ML).
Trade Union
Federations, Their Affiliates and Areas Covered by Them
Nepal Trade Union
Congress (NTUC) central committee consists of 21 persons--five
executives and sixteen members--all elected by workers’ Congress in every four
years. Chairpersons of the national affiliate unions are additional members.
The meeting of National Council takes place every year. National affiliate
union also elects its executive in every four years. The National Committee of
NTUC comprises nine sub-committees and five departments. Out of 75 districts of
Nepal NTUC have district committees in 57 districts.
NTUC
Affiliated Unions
|
Financial
Employees' Union of
|
Nepal
Inter-Corporation Employees
|
Nepal
Small Hotel and Restaurant Worker's
|
General Federation of Nepalese Trade
Unions(GEFONT)
The central
committee of GEFONT consists of 37 persons. The National Congress
proportionally elects delegates from the National Affiliates and sends to
National Council. National Council consists of proportionally elected members
from each of the affiliates, full time activists, advisors and experts but not
more than 25 percent of the total elected members. National Committee is
composed of chairman (Mr. Mukund Neupane), Secretary-General (Mr. Bishnu
Rimal), and Treasurer (Mr. Binod Shrestha) 3 regional co-ordinators, 6 Chiefs
of Central Departments, 10 Chairpersons of Zonal Committees, and 15 Elected
Members of National Affiliates. Election takes place every four years.
GEFONT
Affiliated Trade Unions
|
NIWU-Nepal
Independent Workers
|
TGWUN-Independent
Textile & Garment Workers' Union of
|
ITWAN-Independent
Transport Workers' Association of
|
NICWU-Nepal
Independent Carpet Workers'
|
NIHWU-Nepal
Independent Hotel Workers'
|
UNITRAV-
Union of Trekking, Travel & Rafting Workers -
|
ITPWUN-Independent
Tea
|
IPWUN
- Independent Press Workers' Union of
|
NATU-
|
CUPPEC
- Central Union of Painters, Plumbers, Electro & construction
|
IGCUN-
Independent Garbage Cleaners' Union of
|
NIFBWU
-
|
NICIWU
-
|
NRPU-
Nepal Rikshaw-Pullers'
|
FAWN
- Federation of Agricultural Workers,
|
(CWWD)
Central Women Workers' Department
|
Democratic
Confederation of Nepalese Trade Unions (DECONT)
Central
Committee comprises 29 elected members and two nominated by the President in
every four years. There are five regional vice-presidents from five Development
Regions, which includes one woman as additional one. All the presidents of
National Affiliates are members to Central Committee. Then there are district
and unit committees at enterprise levels.
DECONT
Affiliated Trade Unions
|
Construction
and Allied Workers' Union of
|
Agricultural
Workers' Union of
|
Nepal
Hotel Workers'
|
Garment
Workers' Union of
|
Barbers'
Union of
|
Nepal
Small Hotel and Restaurant Workers'
|
Democratic
Employees' Union of Banking and Financial Institutes of
|
Democratic
Health Workers' Union of
|
Democratic
Press Union-Nepal
|
Besides these three confederations,
there are other trade unions affiliated to smaller political parties but not
registered with the Department of Labor. These Unions are:
- All
Nepal Trade Union Congress (ANTUC) affiliated to CPN-Unity Centre.
- Nepal
Trade Union Federation (NTUF) affiliated to CPN-Democratic.
- All
Nepal Trade Union Congress (ANTUC) affiliated to CPN-Mashal of Mohan
Bikram Singh.
- Nepal
Trade Union Centre (NTUC) affiliated to CPN-Marxist.
- All
Nepal Democratic Free Trade Union (ANDFTU) affiliated to Rastriya
Prajatantra Party (RPP).
- Nepal
Revolutionary Workers’ Union (NRWU) affiliated to Nepal Workers and
Peasants party of Comrade Rohit.
Process of Union
Formation
There are three
tiers of Union . At enterprise level, formation
of union requires 25 percent of the total members and a minimum of 10 persons.
Five thousands members from similar type of enterprise can enter into contract
and can form a union. Those outside enterprises, such as trade, commerce,
self-employment or service sector can also form a union if they have 500
members and enter into agreement for this purpose. In informal and agriculture
sectors 5000 members from 20 districts (not less than 100 person from each
district) are required to form a union. Fifty-enterprise level union can form a
National Level Union. While 10 national level unions out of which 6 should be
from organized sector can form Trade Union Federation.
Membership
There is no
precise account of membership of the unions. However, various studies show that
GEFONT is the strongest union in terms of membership as it covers roughly
310,575 members whereas NTUC and DECONT 200,000 and 50,000 respectively. GEFONT
has a stronghold in carpet, garment, trekking, transport and small hotel unions
in Collective Bargaining Agreement (CBA) election and NTUC is powerful in
financial, corporate and press unions. Both GEFONT and DECONT are active in
informal sectors and blue -collar workers while NTUC is strong in White-collar
workers. DECONT’s performance in CBA election has yet to be seen as it is
established only two years back so is the case with ICONT which is a break away
of GEFONT about two years ago, and affiliated with CPN Marxist-Leninist Party.
Union Activities
As stated
earlier, the history of trade unions in Nepal Nepal Nepal
The Unorganised
Sector
Un-organised
sector, popularly known as informal sector can be defined in the Nepalese
context as those sectors employing less than 10 employees/ workers. The common
characteristics of this sector are; 1. Free entry and exit of the workers 2.
Low income 3. Low productivity 4. Low capital intensity and 5. Low scale of
operation. The ILO defines this sector as " comprising small scale units
largely of individuals, self employed producers in urban areas, some of whom
employed family labourers and or a few hired workers, which operate with very
little capital or none at all, which utilise a low level of technology and
skills, which operate at a low level of productivity, which generally provide
very low and irregular income and highly unstable employment to those who work
in them. They are informal in the sense that they are unregistered and
unrecorded in official statistics and studies, have little or no access to
organised markets to credit institution, to formal education and training
institution or to many public services and amenities".
This also
exactly applies to the Nepalese informal sector. Based on the above definition,
for simplicity, the Nepalese informal sector can be divided into two broad
categories; 1.Self employed persons, and 2. Wage earners self employed persons
are those who work with their family or with the help of occasional outside
labour such as small owner cultivators, share croppers, tenant, fishermen,
animal husbandry, artisans, street vendors, rikshaw pullers etc. whereas wage
earners are those who operate on a casual basis.
Informal workers
are unprotected, deprived of legal facilities and other social security
measurers which most of the workers of organised sectors enjoy. They suffer
from many handicaps, such as underemployment, low skill, low income, no access
to resources and as this sector is covered by labour legislation, and the
workers are vulnerable to various political, economic and social pressure. They
have no bargaining power and ‘strike’ also no longer remains their weapon,
because if they call strike for a day they have to starve the another day as
they have nothing in store.
However
recently, the government of Nepal
Nepal & Core
Labour Standards
- Discrimination
( Employment and Occupation) convention No. 111
- Equal
Remuneration Convention no. 100
- Minimum
wage Fixation Convention No. 131
- Weekly
Rest convention No. 14
- Tripartite
Consultation Convention No. 144
- Right
to Organise and Collective Bargaining Convention No. 98 and,
- Minimum
Age Convention 138.
Trade Unions are
also lobbying with the government for the ratification of conventions 29, 87
and 105. In this connection, Nepal Trade Union Congress recently organised a
meeting where parliamentarians, labour minister, party members and even prime
minister (all from Nepali Congress only) were invited which aimed at
sensitising them for the ratification of these labour standards. In order to
evaluate the implementation of these ratified conventions, the Government of
Nepal has established a separate ILO Section under Department of Labour as per
Article 22 of ILO convention. However, the implementation aspect of ratified
standards are so weak that there are a number of cases where these have been
violated by the parties involved (tripartite) especially from the Government
and the employers side. The government is insensitive and has not shown its
sincerity for the effective implementation of these standards by introducing
them in appropriate legislation. Most of the labour laws pay attention only to
the permanent and temporary workers and not to the contract workers and workers
working in other areas, such as transport, mining and construction.
Trade
Union Rights and Responsibilities
RIGHTS
- Recruit new members
- Ask about changes in wages/conditions
- Take industrial action to protect members
e.g. strike.
RESPONSIBILITIES
- Not put pressure on people to join
- Not make unreasonable demands or threats
- Hold secret ballot, inform employers, take
action peacefully
Members Rights and Responsibilities
RIGHTS
·
Participate
in electing shop stewards and representatives
·
Have
union representation in a dispute with management
·
Participate
in industrial action
RESPONSIBILITIES
·
Vote in
elections
·
Report
problems to representatives and shop steward
·
Act
within the law when taking part in action
Employer Issues and Trade Union Action!!
ISSUES
·
Sexual
Harassment
·
Repetitive
Strain Injury
·
Hearing
Loss
·
Bullying
·
Discrimination
·
Working
Hours, Condition and Pay
ACTION
·
Overtime
Ban
·
Work-To-Rule
·
Go Slow
·
Strike
How members can participate in their Trade
Union
·
Vote for
union officials
·
Attend
union meetings
·
Take part
in action
·
Pay union
membership
·
Vote on
taking action e.g. secret ballots
How do Trade Unions represent their members?
·
Take
workers complaints to management
·
Take
action if settlements are not agreed on and problems are not sorted
·
Provide
services to their members e.g. legal help on issues, help with legal costs if
members is taking employer to an industrial tribunal.
Unit 4: Industrial
Dispute and Grievance T.H.8
Concept,
feature, causes, classification and manifestations of industrial disputes;
Methods of prevention(joint management council, work committee, grievance
handling, code of discipline, code of conduct, profit- sharing and statutory
methods) and settlement (collective bargaining, conciliation, arbitration and
adjudication) of industrial disputes with reference to Nepal.
Concept
of Industrial Disputes
An industrial dispute is a clash or
difference in opinion between the management and workers of a corporation or
industry as a whole. A trade union, which acts as the representative of
workers, plays an important part in initiating as well as resolving an
industrial dispute. Certain factors that lead to industrial dispute are wages,
working conditions and working hours. Both management and workers use various
tools and techniques to pressurize each other. For instance, while the
management may opt for lockouts, workers resort to strikes and gheraos.
Similarly, various methods are adopted to ease the tension in the
employee-employer relationship; important among them.
It is three party relationships. These
parties participate in reaching a consensus or peace pertaining to the matters
of industrial dispute. The three participants are the trade union, employer and
the government, which conduct meetings to review all aspects of a situation,
advice one another and try reaching a consensus.
The government plays the most important
part in this process; it initiates in bringing the management and
representatives of workers on the same platform. The Annual Labor Conference is
the chief instrument for it. It initiated proposals like worker participation
in management, worker education and minimum wages legislation.
Causes of Industrial Dispute
The causes of industrial disputes can be broadly
classified into two categories: economic and non-economic causes. The economic
causes will include issues relating to compensation like wages, bonus,
allowances, and conditions for work, working hours, leave and holidays without
pay, unjust layoffs and retrenchments. The non economic factors will include
victimization of workers, ill treatment by staff members, sympathetic strikes,
political factors, indiscipline etc.
Economic causes:
The most common causes of industrial disputes are
economic causes. These are follows:
Demand for higher Wages: Raise in the cost of living forces the workers to
demand more wages to meet the rising cost of living index and to increase their
standards of living. This brings them into conflict with their employers who
are never willing to pay more wages to workers.
Demand for Allowances and Bonus: Increase in cost of living was the main cause of
the demand of certain allowance such as; dearness, house, medical, night shift,
transportation allowance etc; by the workers to equate their wages with the
rise of prices. Bonus also plays an important role as a cause of industrial
dispute. Both the amount and the method of bonus payment have led to a number
of disputes.
High Industrial Profits: In the changing world, concept of labour has
changed considerably. At the present, employers consider themselves as a
partner of the industry and demand their share in the profits.
Over Time Payment: The employees
demand over-time payment as prescribed in the factory act. But the employer
either does not make any payment or makes under-payment. This causes
frustration among employees and they resort to agitations.
Non- Economic Causes
Working Conditions and Working Hours: The working conditions in Nepal
Modernization and Automation of Plant and
Machinery: The attempt at modernization and introduction of
automatic machinery to replace labour has been the major cause of
disputes.Workers goes on strike, off and on, to resist such rationalization.
Demand for proper leave Rules: The
employers want that leave rules and working hours should as laid down in
factory act. No worker should be forced to work more than 48 hours or more in a
week. However, generally employers ignore these rules which results in
industrial dispute.
Punishment to Workers: Sometimes,
the employer adopts dictational policy and victimises the employers by
suspending or dismissing them from services. In order to get the victimisation
redressed the employees resort to agitational approach. This disturbs the
industrial peace.
Mass retrenchment & undue promotions: One
major cause of industrial dispute is the mass retrenchment and undue promotions
of the employees. The employees start agitation to show their resentment
against the callous or heartless attitude of the management.
Insecurity of Service: In Nepal
Wrong policy or decision: Sometimes,
the policy or decision taken by the management is determined to the interests
of employees. This causes frustration among the employees and they went to
agitational approach in bid to put pressure on the management to withdraw the
wrong decision.
Bad Behaviour: The pre-requisite
of industrial peace is the cordial relations between the employer and
employees. If the behaviour of the management is bad towards the employees,
good will disappears and dispute arises.
None addressed of grievances: The
employees place their grievances before the management time and again. If their
genuine grievances are not removed or properly attended, it gives rise to
frustration and ultimately a dispute.
Personnel Causes: Sometime industrial disputes arise because of personnel problems like
dismissal, retrenchment/reduction of expenditure, layoff, transfer, and
promotion etc.
Political Causes: Various political parties control trade unions in Nepal
Indiscipline: Industrial disputes also take place because of indiscipline and
violation on part of the workforce. The managements to curb indiscipline and
violence resort to lockouts
Non-reorganization of trade unions: The employers usually do not like the interference
by trade unions. They do not recognize them. This brings the workers into
conflict with their employers.
Weakness of Trade Unions: Weaknesses of trade unions encourages the management
to deny certain basic needs of the workers such as medical, education and
housing facilities etc. This led to resentment on the part of workers who
resorted to direct action.
Miscellaneous causes: Behaviour of supervisors, Lack of proper communication between
management and workers, rumours or gossip spread out by trade union,
Inter-trade union rivalry or competition etc; are the other causes that cause
dispute between management and employers.
Manifestation
of Industrial Dispute
Dispute Settlement Process
The Process
of dispute settlement includes conciliation, arbitration and adjudication with
the objective of promoting relations between workers and management. Below are
presented the steps of the dispute settlement process
In the below figure, the employer and employees
enter into dispute if they fail to settle it in a timely manner. In such a
situation, the role of a conciliation officer (a mediator appointed by the
government for the settlement of dispute) becomes important. In the above
figure, the first step is the state of employers and employees entering into
disputes after their difference in the settlement process. By way of
conciliation, both the employer and employees will come together to settle the
dispute. However, the conciliator has the right to make the final decision on
the disputed issue. In fact, the power of the conciliator is not mandatory but
strictly recommendatory. If the conciliators succeeds in making the parties
agree, his work is over after the mutual signature on the papers of dispute
settlement by the employer and employees. If not, he or she submits a report to
the government with the reasons for disagreement.  |
Methods of Prevention of industrial Disputes
In our
labour administrative structure the Ministry of Labour is an apex body, which
is responsible for policy formation. Another important central body is the
Department of Labour which implement of labour policies and execution of labour
legislation. At the bottom, there are 10 zonal level labour offices. These
offices play crucial and vital role in the settlement of labour disputes.
Prevention of Labour Disputes
According
to the Labour Act and Rules of Nepal the legal provisions and procedures for
prevention of disputes have been set out as below;
- Formation of clear and suitable labour
policy and legislation.
- Maintaining competent dispute settlement
institutional machinery
- Promotion labour management relation at the
plant level and encourage worker participation at the plant level
Labour Disputes Settlement Procedure
There
are various formal and informal methods of disputes settlement. Among them
negation, conciliation and mediation are informal method. Similarly arbitration
and adjudication are formal method. We are going to discuss about these method
one by one.
Negotiation
In this
procedure, concerned parties sit together and negotiate or exchange dialogues n
order to reach to an agreement or to settle the disputes. Labour Act, 1992 sec.
74(2) provided the process of negotiation. If the dispute could not settle
through the sec. 74(2) then the dispute shall be solved within 15 days holding
bilateral discussions in the presence of Labour Officer according to sec 75(3).
Conciliation and Mediation
In this
process third party provides assistance to employers and workers in case of a
dispute between them. Third party cannot be imposed to get consensus but facilitation
disputing parties. In conciliation, the third party brings the parties to
dispute together, encourages them to discuss on their differences and assist
them to come to their own solution. In mediation, the mediator is more active
and submits his own proposal for settlement of the disputes to both parties but
they are free to refuse or accept these proposals putting by mediator.
Arbitration
Arbitration
is a process where by a third party takes a final decision on a dispute. If the
conciliation fails either one of the party or both can seek arbitration.
Similarly any one of the two parties involved which is not willing to settle
the dispute through conciliation can take recourse to arbitration. The recourse
to arbitration can be voluntary or compulsory. According to sec. 74(4) of
Labour Act, 1992 tripartite committee constitute with the consent of both parties
by Nepal Government having equal representation from the workers, employers and
the government. The mediator of the committee so appointed shall decide on the
dispute within 15 days.
Adjudication
Adjudication
is a judicial process of dispute settlement involving labour courts, industrial
tribunals and national tribunals. When all the above efforts have failed the
solutions through adjudication are sought to the disputes. Under adjudication
the disputes are settled though labour courts and industrial tribunals and
national tribunals.
- Establishment of a labour court: The Labour Act 1992(2048) made a provision
for constituting a labour court to settle dispute between workers and
their company. The court may proceed against its contempt and if contempt
is established, it may punish the accused with a fine of up to Rs 5000 or
an imprisonment of up to two months or both. However, if the accused
satisfied the court it may grant pardon or reduce the amount of punishment
or suspend punishment.
- Filing personal claims: If one or more workers have any complaint
against the company relating to their jobs or services, they may submit it
in writing to the company's management. Once such a complaint is filed,
the company has to call the concerned worker or employee for discussion on
the complaint within 15 days of its submission to resolve the problem.
If the problem could not be resolved within 15
days of submission the workers or employees may file a petition in the Labour
Office specifying their claims in detail. The Labour Office has to solve the
dispute within 15 days from the date of filing a petition by means of bilateral
discussion between the proprietor and workers' representatives. If, even after
the bilateral discussion and with the involvement of Labour office, the dispute
is not settled, the Chief of the concerned Labour Office has to decide on the
dispute within the next 7 days. If any party concerned is not satisfied with
the decision of the Chief, it may appeal before the Labour Court
- Filing collective claim: At least fifty one percent of the workers
or employees have to sign their claims relating to collective right,
interest and facilities and submit such claims in writing to the concerned
proprietors. While filing a collective claim, workers have to clearly
state the name of their representatives.
Upon receipt of the claim relating to the dispute,
the proprietor shall hold bilateral discussions with the workers'
representatives and try to solve the problem within 21 days and shall enter
into an agreement. If the bilateral discussion fails to resolve the dispute, it
shall be resolved within 15 days by holding bipartite discussions in the
presence of Labour Office.
If, even after the involvement of labour Office,
the dispute is not settled, it may be referred to an arbitrator appointed with
mutual consent of the company and workers, if any difficulty arises with the
mutual consent of both the parties. The tripartite committee comprises equal
representation of the company, workers and Government.
The arbitrator or tripartite committee has to give
its decision with in 15 days. If any party is not satisfied with the decision,
it may appeal to HMG within 35 days from the service of the notice of such a
decision. In case, the arbitrator or tripartite committee does not give its
decision within 15 days or in case HMG does not decide on the appeal within 60
days from the date of filing the appeal, the workers or employees may call
strike.
- Right to strike : If the dispute is not settled, the workers can decide to go on
strike, However, prior to this, a notice in writing stating the claim and
its rationale, including a resolution passed by at least 60 percent of the
total workers through secret ballot, shall have to be provided to the
concerned proprietor thirty days in advance. This notice will also be
provided to the Department of Labour, Labour office and Office of the
Local Administration .
- Lockout : Employers also have the right to lock out their organizations if
the collective dispute is not solved. They can lock out their
organizations after submitting their justification and obtaining the
approval of His Majesty's government. However, before declaring a lockout,
a company has to issue a notice for information of all workers and
employees at least 7 days in advance, specifying the date of the lockout
being effective and announcing that the enterprise shall be locked-out if
the strike is not called off .
Concept of Grievance
A grievance is a formal expression of dissatisfaction
about a work situation usually by an individual employee, but it may sometimes
be initiated by a group of employees or a union acting on their behalf.
Causes of Grievance
Following
are the cause of grievance;
·
Promotion
·
continuity of service
·
compensation
·
disciplinary action
·
fines
·
increments
·
leave
·
medical benefits
·
nature of job
·
payment
·
acting promotion
·
recovery of dues
·
safety appliances
·
transfer
·
victimization
·
condition of work
Grievance
procedure
Grievance procedures are formal and agreed procedures
that an employer and his or her employees or representatives have agreed to
follow to deal with or resolve workplace problems. Grievance procedures may be
set out as a provision in an award or agreement, but there may also be an
internally developed procedure. Grievance procedures are based on the principle
of natural justice and it is recognized as good business sense to have
effective grievance procedures.
Following of the Outcomes of Grievance Procedure
- A peaceful method of conflict resolution to
reduce industrial action and provide greater stability
- Quick and effective results
- Improved communications and working
relationships
- Employee participation and consultation in
the workplace
- Increased productivity and efficiency of the
organization
- Resolution of problems with workplace change
programs
- Better emotional well-being, performance and
morale of employees
- Avoidance of the costs and delays of going to
the tribunal
- Natural justice for employees.
Features of a
good grievance procedure
- Complaints must be fully described by the
person with the grievance
- The person(s) should be given the full
details of the allegation(s) against them
- The person(s) against whom the
grievance/complaint is made should have the opportunity and be given a
reasonable time to put their side of the story before resolution is
attempted
- Proceedings should be conducted honestly,
fairly and without bias
- Proceedings should not be unduly delayed.
How to handle
a grievance
Deal with the grievance promptly: Initiate discussion quickly, investigate and double
check all the facts.
Be accessible:
Make sure staff understands the grievance procedure and how it works.
Informality: Discuss
the issue in a non-threatening environment. No-one should receive a printed form
letter in response to a problem. Remember, when such a letter is perceived as
"legal", your employee may feel they need "legal"
assistance.
Be consistent: Policies
and procedures must apply equally to all staff.
Admit errors: If
you have acted incorrectly or inappropriately – say so! Then fix the problem
Closure: Decide your response/action
and give a full explanation. This allows the matter to be finalized.
Learn from it: Resolving
the grievance should give you practical insight into dealing with such situation
(and possibly others) in the future.
Handling Grievances or
Grievance Procedures
Handling grievance is important for both unionised
and non unionized organizations. Tn unionized organizations the union and
management agree on the grievance procedures. A formal grievance handling
procedure is presented below
1.
Contact supervisor: When there is any problem about any employment related issue an
employee first contacts his or her supervisor with the help of the union steward.
They discuss the grievance and try to solve it on the shop floor. This is some
sort of informal discussion if the grievance is not settled with agreement in
this step; the next step will be effective.
2.
Meet with management and labour relation specialist: At this step the employee together with union
specialist meets with the management. They try to reach an agreement after
discussion the issue.
3.
Meeting between union executives and top
management: When the concerned
manager fails to reach an agreement, the complaint can enter into the third
step of grievance procedure. At this step top management and union executives
sit together to reach an agreement. Because of the authority of the top
management to make decisions, there is possibility of setting complaints at
this level.
4.
Arbitration: This is the final step where an independent arbitrator mediates
between management and employees. The mediator goes through the rules to handle
grievance to settle it in a way acceptable to all parties involved. He or her
may be appointed by the government or by other private agencies.
Employee Discipline
All managers have to deal with some
employees/workers who frequently remain absent from the jobs, drink on the job,
are insubordinate, steal Company, property, show habitual tardiness,
fight and commit other serious offences on the job. These problems lead to disciplinary
actions to control such undesirable behaviours at work. There are a number of
definitions and views regarding discipline in an organization.
According to Dessler, “A procedure (discipline)
that corrects or punishes a subordinate a rule or procedure has been violated.”
According to Beach, ‘’Discipline involves the
conditioning or moulding of behaviours by applying rewards or penalties.”
“The term ‘discipline’ refers to a condition in
the organization when employees conduct themselves in accordance with the
organizational rules and standards of accountable.”
“Unfortunately in our culture many people
interpret discipline as punishment. But it doesn’t always need to be
punishment. The problem solving nature of constructive discipline
differentiates it from punitive discipline. As such constructive discipline is
designed to be a learning process that provides an opportunity for positive
growth. Effective managers use constructive discipline when people slip in
readiness.” - Heresy, Blanchard and Johnson
If employees can be self-disciplined there is no
necessity for an extrinsic disciplinary process. However, in each organization there may be
some employees whose behaviour does not conform to the norms and values of the
organization. Thus, the need for extrinsic disciplinary action arises. The main
purpose of discipline is to encourage employees to behave in the way that makes
sense at work. As outlined above to enforce discipline, managers can use either
reward (constructive) or punishment (punitive). The most effective discipline
is to provide opportunity to the employee for moulding his or her behaviour
permanently. However punishment is a short-term approach of moulding employees’
undesirable behaviour because they may repeat that behaviour again and again
and create employee relation problems at work.
Types of discipline Problems
Disciplinary
problems are grouped into four categories:
- Attendance related:
- Habitual tardiness
- Unexcused absences
- Failure to report accidental injury
- Leaving job area without prior notice
- Abuse of sick
leaves
Most of the
managers face attendance –related problems of discipline from their employees.
The reasons for attendance problem are;
·
failing to align individual goals with the
organisational goals;
·
Thanking that employment is for just passing the
time and not the central life lnterest of the employee;
·
No fear of dismissal as a result of being a
union member.
2.
On-the-job misbehaviours:
- Fighting
- Horseplay or rough and tumble
- Gambling
- Sleeping on the job
- Smoking in the workplace
- Failure to obey safety rule
- conceal one's defective work
- Arriving at work drunk
- Work output below standard
- Excessive defective work due to employee's
own error
- The use of drug
- Attacking fellow employees with intent to
seriously injure.
3. Dishonesty
- Unauthorized selling of company property
- Stealing
- Malicious damage or destruction of company’s
property
- Deliberate falsification of company records
- Promotion of gambling on company property.
4. Outside activities
- Involvement in unauthorized strikes
- Criminal activities outside the job
- Spying for competitor's benefits and leaking
important information
- Criticizing the management in public
- Damaging the quality of work on the guidance
of competing organizations.
These are the different offensive behaviours that
create disciplinary problems in the organization. What is important for a
manager is to identify which are minor and which are serious offences for the
company and to handle them with proper skills. After identifying the degree of
seriousness of offences, the disciplinary action is planned.
Causes of Indiscipline
There are number of causes of indiscipline at
work. Some of these are briefly presented below:
1. Lack of supervision: In the lack of effective supervision of the
workers problem of indiscipline can arise. It is the responsibility of every
supervisor to comply workers with workplace rules and regulations.
2. Violation of rights of employees: Employees must be treated with respect and be
allowed to express themselves or raise their voice, given rights to contribute
to the best of their abilities and the like. When these rights are violated by
the organization they feel dissatisfied that can cause indiscipline.
3. Absence of grievance handling and settlement
machinery: If a
company has no proper mechanism to handle employees' grievances on time, will
result indiscipline. There must be a quick response for the settlement of any
grievance that arises at the work place.
4. Personnel problems: Any type of unfair personnel practice can result
indiscipline problem. Some examples of personnel problems are delay in
promotion, discrimination in salary and wages, unfair performance appraisal and
the line are the causes of indiscipline at work.
5. Employer's attitudes: There are a number of obligations of an employer
towards its employees. Some of these obligations are for example providing
healthy working conditions, adequate tools and equipments, timely supply of raw
materials and equal pay for equal jobs. The breach of these obligations by the
employers will lead to indiscipline.
6. Lack of communication: A two-way communication between superior and
subordinate is essential to communicate essential issues and problems. In the
lack of an effective communication mechanism indiscipline will rise.
Administering or Manage Discipline
Administering discipline is a challenging job for
a HR manager. There should be adequate mechanisms to initiate disciplinary
action against employees in the organization. Some of these begin prior to the
violation of rules and some come after such violation. There are certain
orderly procedures of administering discipline in the organization. A brief
discussion of such a procedure is discussed below.
- Define disciplinary policies and procedure
- Respond immediately
- Provide warning
- State the problem specifically
- Allow the employee to explain his/her position
- Keep discussion impersonal
- Be consistent
- Take progressive action
- Obtain agreement on change
1
Define
disciplinary policies and procedures: Top management has to
define its policies and procedure of disciplining employees in the
organization. In this process they have to clearly state what the expected job
behavior is and how they want to achieve this. All supervisors must be
sufficiently instructed regarding the rule and regulation, behavior expected
from employees, disciplinary punishment, and the employee's rights.
2
Respond immediately:
However, even in the best supervisory and managerial conditions, behavioral
problems are possible, which might cause a violation of such rules and
regulation. When a violation occurs, managers have to respond quickly to
discipline the employee.
3
Provide
a warning: Before initiating any disciplinary
action, managers have to provide a warning to check violation at source
4
State
the problem specifically: Managers have to explain clearly
and specifically about time, date, place, individuals involved and any
mitigating circumstances surrounding the violation.
5
Allow
the employee to explain his or her position: provide an
opportunity to the violator to explain why and how he or she behaves
undesirably. Managers have to listen carefully and try to understand his or her
problem.
6
Keep
discussion impersonal: Manager must be concerned with the
type of violation, not with the personality of the violator.
7
Be
consistent: The disciplinary action that a manager
chooses should be consistent for all employees. Inconsistency in enforcing the
rules for violation may damage a manager’s effectiveness.
8
Take
progressive action: If a manager chooses penalties to
correct the repeated undesirable behavior, he or she to take a progressive
action. Thus, the manager starts with a verbal warning and then proceeds
through a written reprimand, suspension, a demotion or pay cut, and finally
dismissal.
9
Obtain
agreement on change: Finally, the employee has to convince
the manager how he or she plans not to repeat the violation in the future.
Disciplinary Actions
It include six progressive steps
·
Simple oral warning
·
Written warning
·
Suspension
·
Demotion
·
Pay cut
·
Dismissal
1.
Simple oral warning: An effective manager starts his or her reprimand process by making a
simple oral warning. When any violation is noticed the manager starts action by
describing the rules and regulations and his expectation together with informal
oral warning. At the same time, the manager provides an opportunity to the
employee to suggest ways of improving the current behaviour. If the manager
thinks that the problem is solved with the behaviour of the employee corrected,
he or she assures the top management regarding the understanding of rules by
the concerned employee.
2.
Written warning: This is activated where there is a repetition of the offences following
oral warning, or where the offence is more serious. This is a formal
disciplining process in which a written warning letter is given and a copy of
it will be filed in the employee's personal file for a record. In this letter,
a description of the nature of violation, its effect and the result of such
violation are described to warn the concerned employee.
3.
Suspension: If and when previous written warnings have not been effective a
suspension notice is given to the employee concerned. The time for suspension
depends on the degree of violation. Depending on the nature of violation and
its effect on the organization’s performance and image' the suspension may be
for a week or for a year without pay. Some organizations skip suspension for
fear of negative consequences for both the employee and company.
4.
Demotion: It is an alternative of a dismissal. Many organizations avoid
dismissal of employees because of its probable effect on the behaviour of
co-workers. In such a case, the manager prefers to demote the concerned
employee if suspension has not been effective.
5.
Pay out: This is another alternative of a dismissal. Organizations do not want
to lose an employee who is experienced. Especially in the case of those
employees who are scare in the labour market, it is better to think in ways
other than dismissal. Pay cut although de-motivating for the employee concerned
is an appropriate way to reprimand an employee to correct his or her behaviour
on the job.
6.
Dismissal: As a final resort, dismissal is used when an employee fails to comply
with other disciplinary actions. However, for a gross misconduct where the
offence is very serious (eg theft, fraud, fighting and other serious
negligence), following an investigation, the employee may be dismissed with
going through the other steps.
Unit 5: Collective
Bargaining T.H.6
Concept,
feature, principles, types and process of collective of bargaining; Collective
bargaining in Nepal
Collective Bargaining
Concept
One of the motivations
of employees to join unions is to strengthen group effort bargain with the
management in order to increase the pay and benefits, to improve the working
conditions and to handle other employment relation problems. Collective bargaining
is the main element of industrial relation/ employment relations. Outcomes of
collective bargaining are not any effective for a unionized firm but they
equally have implication for the non-unionized firms, society and economy as a
whole. For example, when a new wage rate is determine thought the collective
agreement of the union representative and management, such agreement also
affects non-unionized and social organization. A few important defection of
collective bargaining are presented below.
“A process by which the
representatives of the organization meet and attempt to work out a contract
with representatives of the workers -Fossum,
“The term ‘collective
bargaining ‘ refers to the negotiation, administration, and interpretation of a
written agreement between two parties that covers a specific period of time.”
-De Cenzo
and Robbins
Generally, collective
bargaining includes two type of interaction between management and employees. First,
interaction will be held to form a mutual understanding at the of negotiating
on the conditions of work .Secondly, it will be held to solve conflict during
the time of enforcing the mutual agreement. In other words, collective
bargaining is equally applicable to the day-to-day dealings between management and employees. With the changes
in the global industrial environment, the nature of collective bargaining is
also changing. Since competition is increasing, it is regarded as the strategic
tool of employment relation to link a firm’s strategic activities with the
workplace activities (communication, proper selection, performance evaluation
and so on).
Bargaining issues in
Collective Bargaining
Collective bargaining is guided by the labour law
of a country. There are mainly three categories of bargaining issues.
- Voluntary bargaining issues
- Permissive bargaining issues
- legal bargaining issues
Voluntary bargaining issues: To bargain collectively on some items, both the
union and management have to make a joint agreement. These items are; rates of
pay, wages, overtime pay, holidays, pensions, insurance benefits, profit
sharing plans, employee security, management union relationships and drug
testing of employees. No one party can force the other to bargain on these
items.
Permissive or liberal bargaining issues: There are the some items on which both parties
have to negotiate to reach an agreement. Such items are; pension rights, union
affairs, scope of the bargaining units, including supervisors in the contact,
use of union label, prices in cafeteria.
Legal bargaining issues: There are certain
issues on which bargaining is forbidden. There issues are; closed shop,
separation of employees based on race and other discriminatory treatment
Purposes of Collective Bargaining
Increasing salary and wages of employees, improving
working conditions and negotiating on the terms and conditions on employment
relation matters are the concerns of both employees and management. Both
parties are to sit together to decide on the issues in order to lead to
effective relation. Furthermore, both parties have to work on a day-to-day
basis to implement their joint agreements. In the process of implementing these
agreements, their relations shall be further strengthened.
1.
Enhancing the quality of work life: Once labour and management establish their
relation, it will enhance the quality of work life. The working environment
will not be any communication barriers, the mechanism of grievance handling
will be established, predication at work will be enhanced and labour and
management will work co-operatively. Thus, collective bargaining increases the
quality of work and consequently increases productivity.
2.
Solving worker-management problems at source: The proper mechanism of collective bargaining
solves problems of employee relations at source. A collective bargaining
mechanism helps to recognize shop floor problems, grievances and other
operational issues. Once these problems are recognized, workers and management
sit together to solve them at source. This will minimize the chances of
conflict, arbitration and strike.
3.
Competitive advantage: In every organization, strategic programs are in
process at the different levels of the organization. For example if an
organization tries to be a low cost producer is to compete in the national
/international markets.
Types of Collective
Bargaining
1. Integrative
bargaining: The purpose of
integration bargaining is to create a cooperative negotiating relationship that
benefits both parties. In this situation, both labour and management win rather
than dace a win-lose situation, bargaining for new work setting and for
quality-of-lose-life improvement presents examples of integrative bargaining
where both parties will benefit from the agreement.
2. Distributive
bargaining: This form of collective bargaining takes place when labour and
management are in disagreement over the issues in the proposed contract, such
as, wages, working conditions etc. In other words, in this type of collective
bargaining a gain for one side represents a loss to other. In this bargaining
process, each party involved tries to serve its best interest.
3. Productivity
bargaining: The main purpose of
this form of bargaining is to improve the effectiveness of the organization by
eliminating work rules and inefficient work methods that inhibit productivity.
The productivity bargaining assumes that if improved work methods are used, it
helps it to increase productivity and will secure the employment of people in
organization.
4. Attitudinal bargaining: When
bargaining is related to the enhancement of understanding between labour and
management on the job, it is called attitudinal bargaining. This type of
bargaining is important in that it develops employment relation at work by
increasing the degree of friendliness, honesty, motivation and interaction.
Collective Bargaining process
The process of collective bargaining is complex.
Normally, steps in the process depend on the county, specific legal provisions
and the type of issue. Some of the important steps in the collective process
are the following;
1.
Selection of representations for bargaining
2.
Certification of representation
3.
Presentation for negotiation
4.
Negotiation
5.
Contract administration
1. Selection
of representatives for bargaining: The process of bargaining
begins with the selection of employee and management level union selects the
representatives from among its members who are vocal and can understand and
present the issues and can hold discussion with management in an effective
manner. Similarly, from the side of management, the chief of the HRM division
takes part in the bargaining. If the organization is too small, only the
president or general manager can bargain with the employee representatives. In
big originations, normally an industrial relations expert will represent the
management in bargaining with labour.
2. Certification
of representation: Once union representatives are selected, it is necessary to legitimize
their authority to bargain as per the provision of the Labour Act or Trade
Union Act by certification. Certification is usually made on the authorising
card. The greater the number of sing natures on the card, the greater will be
the chances for victory in the bargaining.
3. Preparation
for negotiation: After the certification of the representatives,
the next step is the preparation for negotiation. Both management and labour
representations have to be involved in homework to develop their negotiation
skills. In this, both have to collect the information useful for developing
such skills. Normally, the union requires the following information in
preparation for negotiation:
- The financial statements of the company and
its ability to increase pay or other facility,
- The attitude of management towards the issues
for bargaining,
- The attitude and desire of the employees whom
the union represents at bargaining.
Similarly, management requires the following information to be prepared
for bargaining:
- The economic affordability of the
organization after the agreement on issues.
- Qualitative and quantitative facts and
finding for negotiating with the union.
4. Negotiation: After collecting information on various issues
and after being prepared to go on collective bargaining, the negotiation
process begins. Both the representatives from management and the union sit
together with a list of issues and demands. Such demands might be related to
wages, working conditions, and increase in the percentage of bonuses, shop
floor management problems and changes in the work process driven by new work
technology. Each party has to listen to the other’s proposals and priorities of
demands. There will be discussion between the parties to reach a satisfactory
settlement. In the process of negotiation, union representatives try to push
their demands; the management tries to convince the other side about their
resource constraints and about reaching desired agreement. However, the final
outcome of negotiation may be either a ‘mutual agreement’ or ‘disagreement’. In
case they fail to agree, a third party may enter into the negotiation and it is
known as an arbitrator or moderator. The
final result of the disagreement will be to go on strike from the side of labour,
whereas, from the management’s side, it is to lock out the organization.
5. Contract
administration: Once
the negotiation is completed and both parties agree upon issues and actions,
the final step is the signing of the agreement and its ratification for the
implementation of the contract. However, in the process of administering the
contact in practice, there are chances of disputes between the management and
employees. Thus, all have to follow the procedure of administering the
contract. Any sort of dispute and complaint in the administration and
implementation process will be handled by following the agreed-upon grievance
procedure.
Unit
6: Workers' Participation in Management T.H.9
Concept, purpose and significance of
participation; Forms of participation: information sharing, consultation,
association of workers, joint decision- making and Board of Directors. Scenario
of worker's participation in management in Nepal
Concept:
The concept
of workers’ participation in management is considered as a mechanism where
workers have a say in the decision making process of an enterprise.
Participation basically means sharing the decision-making power with the lower
ranks of the organization in an appropriate manner. It is depending on the
socio-political environment and cultural conditions, the scope and contents of
participation change.
It encourage
for achieving social justice. From the point of view of social scientists,
participative management is one of the tools of management where the emphasis
is on the utility of a one of the tools of human approach. The experiments of
Blake, Mayo, Lewin and Likert popularized the belief that if workers are given
opportunities to participate in the management process there could be positive
gains to the organization’s effectiveness and morale.
Definition:
According to
International Institute of Labour Studies: Worker's Participation in Management
(WPM) is the participation resulting from the practices which increase the
scope for employees’ share of influence in decision-making at different tiers
of organizational hierarch with concomitant/associated assumption of
responsibility.
Similarly,
International Labour Organization (ILO) define that, Workers’ participation may
broadly be taken to cover all terms of association of workers and their
representatives with the decision-making process, ranging from exchange of
information, consultations, decisions and negotiations, to more
institutionalized forms such as the presence of workers’ member on management
or supervisory boards or even management by workers themselves.
Basically, there are
three groups of managerial decisions affecting the workers of any industrial
establishment. They are;
- Economic decisions: Methods of manufacturing,
automation, shutdown, lay-offs, and mergers.
- Personnel decisions: Recruitment and
selection, promotions, demotions, transfers, grievance settlement, work
distribution
- Social decisions: Hours of work, welfare
measures, questions affecting work rules and conduct of individual
worker’s safety, health, and sanitation and noise control.
Objectives
and Important:
Following of
the fundamental objectives and important of WPM;
Objectives
- An instrument for increasing the efficiency
of enterprises and establishing harmonious relations;
- A device for developing social education for
promoting solidarity among workers and for tapping human talents;
- A means for achieving industrial peace and
harmony which leads to higher productivity and increased production;
- A humanitarian act, elevating the status of a
worker in the society;
- An ideological way of developing self-management
and promoting industrial democracy,
- To improve the quality of working life by
allowing the workers greater influence and involvement in work and
satisfaction obtained from work;
- To secure the mutual co-operation of
employees and employers in achieving industrial peace; greater efficiency
and productivity in the interest of the enterprise, the workers, the
consumers and the nation.
Important
- Unique motivational power and a great
psychological value.
- Peace and harmony between workers and
management.
- Workers get to see how their actions would
contribute to the overall growth of the company.
- They tend to view the decisions as `their
own’ and are more enthusiastic in their implementation.
- Participation makes them more responsible.
- They become more willing to take initiative
and come out with cost-saving suggestions and growth-oriented ideas.
Significance of Workers Participation:
1. Higher Productivity: The increased productivity is possible only when
there will fullest co-operation between labour and management. It has been
found that poor labour management relations do not encourage the workers to
contribute anything more than the minimum desirable to retain their jobs.
2. Greater Commitment: An important prerequisite for forge greater individual commitment is
the individual’s involvement and opportunity to express him. Participation
allows individuals to express themselves at the work place rather than being
absorbed into a complex system of rules, procedures and systems. If an
individual knows that he can express his opinion and ideas, a personal sense of
gratification and involvement takes place within him.
3. Reduced Industrial Unrest. Industrial conflict is a struggle between two
organized groups, which are motivated by the belief that their respective
interests are rare by the self-interested behaviour of the other. Participation
cuts at the very root of industrial conflict. It tries to remove or at least
minimize the diverse and conflicting interests between the parties, by
substituting it with cooperation, homogeneity and common interests. Both sides
are integrated and decision arrived at are mutual rather than individual.
4. Improved Decisions. Communication is never a one way process. Participation
tends to break down the barriers, and makes the information available to
managers. To the extent such information changes the decisions; the quality of
decisions is improved.
5. Human Resource Development. Participation provides education to
workers in the management of industry. It fosters initiative and creativity
among them. It develops a sense of responsibility. Informal leaders get an
opportunity to reinforce their position and status by playing an active role in
decision-making and by inducing the members of the group to abide by them.
6. Reduced Resistance to Change. Generally, changes are arbitrarily introduced
from above without explanation. Subordinates tend to feel insecure and take
counter measures aimed at disruption of changes. But when they have
participated in the decision making process, they have had an opportunity to be
heard. They know what to expect and why. Their resistance to change is reduced.
Form of
participation:
Workers’ participation
in management falls into several categories. It depend on the various
socio-legal, political, economic environment. There is some form of
participation. They are;
- Informative: Participation there is a sharing
of information- for instance the information regarding production figures,
the balance sheet of the company, economic condition etc.
- Consultative: Participation of workers’
representatives is consulted on matter relating to wale fare facilities by
the management.
- Associative: Participation management accepts
the suggestion of the council for solving a problem on hand.
- Administrative: Participation management the
decision is already taken and councils have the right to choose the method
of implementing it.
- Decisive participation. Finally decisive
participation is the highest form of participation where all matters,
economic, financial and administrative are brought under the security of
the council and the decision are taken jointly.
Beside the
above mentioned form of participation, following are the practice in the field
of industrial relation to participation.
- Board level participation
- Ownership participation
- Complete control
- Staff or work councils
- Joint councils and committees
- Collective Bargaining
- Job enlargement and enrichment
- Suggestion schemes
- Quality circles
- Financial participation
Board level
Participation: This is highest form of
industrial democracy. The workers’ representative on the Board can play a
useful role in safeguarding the interests of workers. He or she can serve as a
guide and a control element. He or she can prevail upon top management not to
take measures that would be unpopular with the employees. He or she can guide
the Board members on matters of investment in employee benefit schemes like
housing, and so forth.
Ownership
Participation: This involves making the
workers’ shareholders of the company by inducing them to buy equity shares. In
many cases, advances and financial assistance in the form of easy repayment
options are extended to enable employees to buy equity shares.
Participation
through complete control: Workers
acquire complete control of the management through elected boards. It is
a system of self-management. Self-management gives complete control to workers
to manage directly all aspects of industries through their representatives.
Participation
through Staff and Works Councils: Staff
councils or works councils are bodies on which the representation is entirely
of the employees. There may be one council for the entire organization
or a hierarchy of councils. The employees of the respective sections
elect the members of the councils. Such councils play a varied role. Their
role ranges from seeking information on the management’s intentions to a full
share in decision-making. Such councils have not enjoyed too much of
success because trade union leaders fear the wearing down of their power and
prestige if such workers’ bodies were to prevail.
Participation
through Joint Councils and Committees: Joint councils are bodies comprising representatives of employers and
employees. This method sees a very loose form of participation, as these
councils are mostly consultative bodies. Work committees are a legal
requirement in industrial establishments. Such committees discuss a wide range
of topics connected to labour welfare.
Participation
through Collective Bargaining: Through
the process of CB, management and workers may reach collective agreement
regarding rules for the formulation and termination of the contract of
employment, as well as conditions of service in an establishment. Even
though these agreements are not legally binding, they do have some force. But
in practice, while bargaining, each party tries to take advantage of the other.
Participation
through Job Enlargement and Job Enrichment: Excessive job specialization that is seen as a by-product of mass
production in industries, leads to associated problems in employees. Two
methods of job designing – job enlargement and job enrichment– are seen as
methods of addressing the problems. Job enlargement means expanding the
job content – adding task elements horizontally.
Job
enrichment means adding `motivators’ to the job to make it more rewarding. This
is WPM in that it offers freedom and scope to the workers to use their
judgment. But this form of participation is very basic as it provides only
limited freedom to a worker concerning the method of performing his/her job.
The worker
has no say in other vital issues of concern to him – issues such as job and
income security, welfare schemes and other policy decisions.
Participation
through Suggestion Schemes: Employees’
views are invited and reward is given for the best suggestion. With this
scheme, the employees’ interest in the problems of the organization is aroused
and maintained. The ideas could range from changes in inspection
procedures to design changes, process simplification, paper-work reduction and
the like.
Participation through Quality Circles: Concept originated in
Financial
Participation: This method involves
less consultations or even joint decisions. Performance of the
organization is linked to the performance of the employee. The logic
behind this is that if an employee has a financial stake in the organization,
he/she is likely to be more positively motivated and involved. Some
schemes of financial participation are as follows;
- Profit-linked pay
- Profit sharing and Employees’ Stock Option
schemes
- Pension-fund participation
Scenario of worker's participation in
management in Nepal
Industrial development and economic
prosperity of the country is essential to secure harmonious relationship
between worker and management. Worker’s participation in management is the
fundamental things for sustainability of industrial sector. The philosophy of
worker’s participation is based on the social justice and as such attempts to
symbolize collectively feeling, aspiration, emotion, imagination, own feeling,
etc. worker’s participation in management (WPM) permitting to workers to keep
their views in the various managerial aspects prior to making decision.
In our context, industries were
gradually begun to establish from 1936 but there were not single statutory
provision. Our industrial environment was operated by the Indian Factory Act.
Still we are facing various problems regarding industrial relation among the
management and workers due to lack of proper statutory measures. First of all
we have to know that Nepalese attitude and development of industrial
environment in Nepal
Socio economic background of the worker
and ability of the worker plays vital role to participate in management.
Previously we had three large industries namely Biratnagar Jute Mills, Sugar
Mills and Cotton Mills. After analysis the situation of these industries we can
find out some points which were the obstacle for WPM. The points were as
follows;
·
Most of the workers were rural migrants
·
No previous work experience and most of
the agricultural worker
·
Highly Illiterate
·
Majority of the worker was male
·
Large number of worker was non Nepalese
·
Skilled and highly skilled human
resource was non Nepalese
·
Large of segment of management were non
Nepalese
Above mentioned reality shows the
scenario of the WPM in our context. In Nepal
Lack of plant level labour union,
absence of legislative measures for collective bargaining, imperfect
implementation of labour legislation, poor institutional framework of works
committee, non participative attitude of management, non consideration of
workers etc. are key problems of WPM in Nepalese industries. Illiteracy, lack
of education and training, absence of knowledge, unrecognized labour force and
negative attitude towards management etc. are poor characteristics of Nepalese
workers, which are the root causes of small performance of statutory
participative forum.
At the present perspective to drive
industrial ventures in right direction it is necessary to offer a comprehensive
labour law considering the political, economical and socio cultural realities
of the nation. The scheme of workers participation developed on these realities
of the country will make fullest contribution towards developing harmonious
relation between the management and the workers.
Unit
7: International Labor Organization (ILO) and Nepal
An Introduction to ILO: origin,
objectives and structure of ILO; Role of ILO in Nepalese labor development
activities; Nepal
THE TEN PRICIPLES OF GLOBAL COMPACT
DIRECTLY ADDRESSED TO THE BUSINESS COMMUNITY BY THE
UNITED NATIONS
HUMAN RIGHTS
Principle 1– Businesses should support and respect
the protection of internationally proclaimed human rights, and
Principle 2 – Make sure that they are not complicit
in human rights abuse.
LABOUR STANDARDS
Principle 3 – Businesses should uphold the freedom
of association and the effective recognition of the right to collective
bargaining.
Principle 4 – The elimination of all forms of forced
and compulsory labor
Principle 5 – The effective abolition of child
labor, and
Principle 6 – The elimination of discrimination in
respect of employment and occupation
ENVIRONMENT
Principle 7 – Businesses should support precautionary
approach to environmental challenges
Principle 8 – Undertake initiatives to promote great
environmental responsibility, and
Principle 9 – Encourage the development of
environmental friendly technologies
ANTI-CORRUPTION
Principle 10 – Businesses should work against
corruption in all its forms, including extortion and bribery.
What is ILO?
·
ILO is a specialized agency of the United Nations
system which seeks the promotion of social justice and internationally
recognized human and labour rights.
·
To promote opportunities for men and women to
obtain decent and productive work, in conditions of freedom, equity, security
and human dignity, which is summed up by the expression “Decent work as a
global goal”.
What the ILO is and what it does
o
The ILO formulates international labour standards.
These standards take the form of Conventions and Recommendations, which set
minimum standards in the field of fundamental labour rights: freedom of
association, the right to organize, the right to collective bargaining, the
abolition of forced labour, equality of opportunity and treatment, as well as
other standards addressing conditions spanning across the entire spectrum of
work-related issues.
HISTORY How the ILO came into being
o
The ILO was created in response to the
consciousness that followed the First World War at the Peace Conference, which
convened first in Paris and then in Versailles. The ILO is the only major
surviving outcome of the Treaty of Versailles. The International Labour
Organization (ILO) was founded, along with the League of
Nations , by the Treaty of Versailles on 11 April 1919.
STANDARDS-RELATED ACTIVITIES International labour standards (ILS)
Subjects addressed by the ILO’s ILS International labour standards respond to a
growing number of needs and challenges experienced by workers and employers in
the globalize economy. The following subjects are covered by international
labour standards:
o
Wages
o
Working time
o
Occupational safety and health
o
Social security
o
Maternity protection
o
Social policy
o
Migrant workers
o
Seafarers
o
Fishers
o
Dock workers
o
Indigenous and tribal peoples
o
Other specific categories of workers
o
Freedom of association
o
Collective bargaining
o
Forced labour
o
Child labour
o
Equality of opportunity and treatment
o
Tripartite consultation
o
Labour administration
o
Labour inspection
o
Employment policy
o
Employment promotion
o
Vocational guidance and training
o
Employment security
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