Introduction to Industrial Relations
Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management).
Concept of Industrial Relations:
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.”
The term industrial relations explain the relationship between employees and management which 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, the government, 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 labor) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with non-union employment relationships and the personnel practices and policies of employers.
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, the government, 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 labor) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with non-union employment relationships and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships employers and workers have, with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. Industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.
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 honored 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:
- Formulated in consultation with the workers and their representatives if they are to be implemented effectively.
- Clearly stated so that there is no confusion in the mind of anybody.
- 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 Relation System
An industrial relations system consists of the whole gamut of relationships between employers and 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 confliction 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 grievances. 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 and 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 scopes of industrial relations are 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
Dunlop's Contribution to Industrial Relations
One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s. According to Dunlop industrial relations system consists of three agents – management organizations, workers and formal/informal ways they are organized and government agencies. These actors and their organizations are located within an environment – defined in terms of technology, labor and product markets, and the distribution of power in wider society as it impacts upon individuals and workplace. Within this environment, actors interact with each other, negotiate and use economic/political power in process of determining rules that constitute the output of the industrial relations system. He proposed that three parties—employers, labor unions, and government-- are the Key actors in a modern industrial relations system. He also argued that none of these institutions could act in an autonomous or independent fashion. Instead they were shaped, at least to some extent, by their market, technological and political contexts.
Thus it can be said that industrial relations is a social sub system subject to three environmental constraints- the markets, distribution of power in society and technology.
Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labor relationship:
- Environmental or external economic, technological, political, legal and social forces that impact employment relationships.
- Characteristics and interaction of the key actors in the employment relationship: labor, management, and government.
- Rules that are derived from these interactions that govern the employment relationship.
Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial relations may be regarded as a system in the sense that each of them more or less intimately affects each of the others so that they constitute a group of arrangements for dealing with certain matters and are collectively responsible for certain results”.
In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are the product of interaction between three key “actors” – workers/unions, employers and associated organizations and government
The Dunlop’s model gives great significance to external or environmental forces. In other words, management, labor, and the government possess a shared ideology that defines their roles within the relationship and provides stability to the system.
For better understanding of industrial relations, various terms need to be defined here:
Industry:
Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes whether or not any capital has been invested for the purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or profit. Thus, an industry is a whole gamut of activities that are carried on by an employer with the help of his employees and labors for production and distribution of
For better understanding of industrial relations, various terms need to be defined.
Employer:
An employer can be defined from different perspectives as:-
- A person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons.
- A person who directly engages a worker/employee in employment.
- Any person who employs, whether directly or through another person or agency, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed.
As per Industrial Disputes Act 1947 an employer means:- - in relation to an industry carried on by or under the authority of any department of [the Central Government or a State Government], the authority prescribed in this behalf, or where no authority is prescribed, the head of the department;
- in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;
Employee: -
- Employee is a person who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business.
- An employee is any individual employed by an employer.
- A person who works for a public or private employer and receives remuneration in wages or salary by his employer while working on a commission basis, piece-rates or time rate.
- Employee, as per Employee State Insurance Act 1948, is any person employed for wages in or in connection with work of a factory or establishment to which the act applies.
In order to qualify to be an employee, under ESI Act, a person should belong to any of the categories:
- Those who are directly employed for wages by the principal employer within the premises or outside in connection with work of the factory or establishment.
- those employed for wages by or through an immediate employer in the premises of the factory or establishment in connection with the work thereof
- Those employed for wages by or through an immediate employer in connection with the factory or establishment outside the premises of such factory or establishment under the supervision and control of the principal employer or his agent.
- Employees whose services are temporarily lent or let on hire to the principal employer by an immediate employer under a contract of service (employees of security contractors, labor contractors, housekeeping contractors etc. come under this category).
Employment: The state of being employed or having a job.
Labor market:
The market in which, workers compete for jobs and employers compete for workers known as labor market. It acts as the external source from which organizations attract employees. These markets occur because different conditions characterize different geographical areas, industries, occupations, and professions at any given time.
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 cured by good industrial relations. Strikes, lockouts, go-slow 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.
Unitary Perspective
In unitary-ism, the organization is perceived as an integrated and harmonious system, viewed as one happy family. A core assumption of unitary approach is that management and staff, and all members of the organization share the same objectives, interests and purposes; thus working together, hand-in-hand, towards the shared mutual goals. Furthermore, unitary-ism has a paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as unnecessary and conflict is perceived as disruptive.
From employee point of view, unitary approach means that:
- Working practices should be flexible. Individuals should be business process improvement oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required.
- If a union is recognized, its role is that of a further means of communication between groups of staff and the company.
- The emphasis is on good relationships and sound terms and conditions of employment.
- Employee participation in workplace decisions is enabled. This helps in empowering individuals in their roles and emphasizes team work, innovation, creativity, discretion in problem-solving, quality and improvement groups etc.
- Employees should feel that the skills and expertise of managers supports their endeavors.
From employer point of view, unitary approach means that:
- Staffing policies should try to unify effort, inspire and motivate employees.
- The organization's wider objectives should be properly communicated and discussed with staff.
- Reward systems should be so designed as to foster to secure loyalty and commitment.
- Line managers should take ownership of their team/staffing responsibilities.
- Staff-management conflicts - from the perspective of the unitary framework - are seen as arising from lack of information, inadequate presentation of management's policies.
The personal objectives of every individual employed in the business should be discussed with them and integrated with the organization’s needs.
Pluralistic-Perspective
In pluralism the organization is perceived as being made up of powerful and divergent sub-groups - 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 less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed 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 channeled towards evolution and positive change. Realistic managers should accept conflict to occur. There is a greater propensity for conflict rather than harmony.
They should anticipate and resolve this by securing agreed procedures for settling disputes.
The implications of this approach include:
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
- Comprehensive collective agreements should be negotiated with unions
Marxist Perspective
This view of industrial relations is a byproduct 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 of socialism over capitalism.
· Capitalism would foster monopolies.
· Wages (costs to the capitalist) would be minimized to a subsistence level.
· Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident.
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.
Causes of Conflict in Industrial Relations:
Industrial relations describe the complex, and sometimes aggravated, relationship between top-level industry management and employee organizations. Conflicts arise between these two entities when a problem is not brought to a peaceful resolution or compromise.
Conflicts Caused by Compensation
1. Among the many types of conflicts that arise in industrial relations, conflicts related specifically to compensation are the most prominent. Friction develops between unions and management if employees are not satisfied with their compensation (wages, salary and/or benefits).
Conflicts Caused by Policy
2. Conflicts between management and employees may develop over the details of a company policy. If employees believe that a certain stipulation within their company's policy is unfair, illegal or immoral, they may attempt to resolve the issue by negotiating with the industry's management to amend the policy.
Conflicts over Personal or Sick Days Policy
3. Employees and management often find themselves at odds over vacation and sick day policies. Employees may protest the lack of paid vacation days, sick days or holidays. This is one of the most common policy conflicts in industrial relations.
Conflicts Caused by Layoffs
4. Employee unions and organizations may quickly instigate a confrontation with management if they hear of possible (or actual) layoffs in an industry. Conflict arises when unions protest management's claim that they need to layoff employees to save money (rather than cutting expenses elsewhere in a company's budget, e.g., disproportionate salary and benefits packages for top-level management).
Conflict Caused by Proximity
5. Conflicts in an industry can spread quickly. If the employees of a single company in an industry are protesting or striking, employees in companies within the same industry may do the same as a show of support. This type of conflict can shut down an entire industry and often requires complex negotiations to resolve.
The Function of Trade Unions:
Trade unions have a number of functions, some of which have been more prominent than others at different periods in history. But over the course of time trade unions have developed five principal functions. These are respectively: a service function; a representation function; a regulatory function; a government function; and a public administration function. This paper examines these different functions and argues that the balance is shifting, with more emphasis being placed on service, governmental and public administration functions. We are witnessing the emergence of a new ‘supply side trade unionism’ with a corresponding dilution of their representative and regulatory functions. These developments—engineered by governments of both parties in recent years—are assessed in the context of the Warwick agreement in 2004 where the trade unions and the Labour Party concluded a deal on the shape of a possible third term Labour government.
Handling Employee Grievances :
| | | Employee grievances are an unfortunate but constant reality in the workplace. As much as you would like to think you create an ideal work environment, your employees will always have individual conflicts from time-to-time. These conflicts can increase in an economic recession. Employees are under financial stress and may even fear losing their jobs. It is essential to address all grievances in a bad economy in order to keep employee productivity and morale high despite the slow business cycle. Be Accessible As a business owner, you will always be seen as the boss. This means your employees will not think of you as a friend. Most professionals agree this is actually a good thing, because you should maintain a level of distance between yourself and the rest of your employees in order to gain respect. However, making the gap too big can actually decrease employee morale. Instead, you should seek the balance between being a boss and being an accessible manager. This means coming out of your office and walking around the workplace. Make connections with your employees when you see the opportunity to do so. It is easy to want to handle all communications by email or online messages with today's technology, but face-to-face contact will make you a more accessible figure around the office. Share in your employee's accomplishments at work and at home by simply asking them how they are doing. You will find employees are more likely to be honest with you on the big issues if they connect with you on small issues. Create a System for Complaints Employees need to know the proper way to air grievances. If not, they will air them to whoever will listen. This form of complaining, through gossip or spreading bad news, will not help the morale in your office. Instead of tolerating this, ask your employees to address grievances directly through the system you have established. This system may create liaisons in the office who can be trusted to handle the issue discretely. Often, this is the human resource department in large offices. You may not have a dedicated human resource department, but you can still select employees you feel would be well-suited for the confidentiality required in this type of role. Department managers often serve as stand-in human resources representatives for their respective employees. Allow Employees to Take Ownership Successful business owners realize that most employee grievances can be resolved by empowering the employee to make the necessary change. For example, if an employee is having a problem with the current system of vacation requests, ask the employee for suggestions on how to change the system. You may find your low-level employees, who are the ones dealing with the policies you create, have a better suggestion than the managers who are not subject to the same policies. Many companies form task forces to deal with the most common grievances. This is particularly important in a bad economy. Some small business managers ask employees for suggestions on how to cut expenses and become more productive instead of laying people off. If you must put a hiring freeze or a pay freeze in place, allow your employees to talk about the concerns they have with the decision. You may find their concerns are different from those you anticipated. Ask them for suggestions on how to improve the situation. Document Grievances in Writing Handling grievances is important, but you cannot give into every single grievance or request that is made of you. This is particularly true when employees ask for raises in an economic recession. Sometimes, the profits just do not allow for the standard salary increases. Honesty is a good policy here, but you should also be looking out for the way your honest words could be misconstrued or used against you. Always document serious grievances in writing, whether they are financial or not. Once you have discussed the issue with an employee, have that person sign a document stating the situation was addressed to his or her satisfaction. This may seem excessive, but you will be thankful if you ever face a lawsuit with a disgruntled current or former employee. These files will be the only way you can prove in court that you are telling the story correctly. |
Industrial Disputes :
The various types of Industrial action include:
Overt obvious
Lockouts
Picket protest
Bans
Strikes
Covert secret
Exclusion from decision making
Labour turnover
Sabotage damage
Absenteeism absence
Overt action is action undertaken that is clearly visible. Covert action is
secretive, hidden forms of industrial action which may be undertaken by
bother employers and employees.
Industrial conflict is simply the disagreement between employees and
employers.
Causes of industrial disputes include:
Bad management policy
Poor physical working conditions
Political and social issues
General working conditions may not be suitable.
Over the years, it is a known fact that industrial disputes have been
dramatically decreases, due t a realisation in business that ER is a very vital
aspect of the business operations.
Industrial conflict involves measures taken because of dissatisfaction with the
existing Management employee relationship.
Causes of industrial conflict include wage demands, working conditions, changes in management policy or the desire to achieve social or personal goals.
There are many types of industrial action. Overt action or highly visible action
includes strikes, pickets, lockouts, bans and work to rule. Less obvious covert
action includes absenteeism, sabotage and staff turnover.
Resolving industrial disputes will involve a number of stakeholders with specific
interest in the disputes. Theses include employees, employers, unions, employer
associations and agencies such as the AIRC o in NSW, the Industrial Relation
Commission.
Processes used in resolving disputes include conciliation where the disputing parties are encouraged to reach an agreement. If this does not work, arbitration or a court order decided the outcome is used. This decision is legally binding on all parties.
Grievance procedures allow negotiation to take place in a formal framework.
It is difficult to measure the costs and benefits of a dispute. Costs and benefits can
be social, where individuals are affected of political where a whole community is
affected.
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Disciplinary Action :
All employees are expected to meet performance standards and behave appropriately in the workplace. Disciplinary or corrective action is a process of communicating with the employee to improve unacceptable behaviour or performance. You may take disciplinary action when other methods such as coaching and performance appraisal have not been successful.
In cases of serious misconduct, you may choose to proceed straight to disciplinary action. Reviewing the Seven Tests of Just Cause (see next page) before taking disciplinary action will help you determine whether discipline is the best approach to problem-solving in a particular situation. It is prudent to consult your Labor & Employee Relations (L/ER) Analyst before initiating disciplinary action.
- Disciplinary Alternatives
- Guiding Principles
- Other Resources
- Sample Letter Of Warning
- Seven Tests of Just Cause
- Training Resources
When deciding what disciplinary action to take, keep in mind that discipline is supposed to be constructive. Your goal is to guide the employee to improve performance or correct inappropriate behaviour, not to punish the employee. As a general rule, your action should be just enough to get the employee's attention. However, you may have to take progressively more serious actions if there is no improvement or if repeat occurrences follow. You need not take each of these actions, but you will normally take more than one of them. Your alternatives are:
Oral Warning:
- Set a time and place to ensure privacy.
- Make notes about what you want to say in advance.
- Remember that the employee may have a right to representation.
- State clearly that you are issuing an oral warning.
- Be specific in describing the unacceptable performance or behavior.
- Remind the employee of the acceptable standards or rules. If they are available in writing, provide them to the employee.
- State the consequences of failure to demonstrate immediate and sustained improvement: Further disciplinary action may be the result.
- Note the oral warning on your calendar and key elements of discussion.
Written Warning: If you gave an oral warning and the problem performance or behaviour persists, a written warning may be effective. You may decide to use this disciplinary action more than once, to get the employee's attention. Be careful, however, not to get stuck issuing repetitive letters of warning that fail to influence the employee's behaviour or performance.
State, clearly at the outset of the letter that it is a written warning, and cite the appropriate personnel policy or contract provision.
Describe the performance problem(s) or work rule violation(s) in very specific detail and attach documents which support your conclusions.
- Outline previous steps taken to acquaint the employee with the issue (coaching sessions, performance appraisals, previous disciplinary actions) and attach copies of the documents.
- Describe the impact of the problem (safety issues, need to reassign work).
- Note the employee's explanation (as revealed during your investigation) or that the employee declined to offer one. If it was unacceptable, explain why.
- Reiterate your expectations regarding behaviour and/or performance.
- Note that if the employee doesn't demonstrate immediate and sustained improvement, the consequence will be further disciplinary action, up to and including dismissal.
- Refer the employee to the appropriate policy or contract provision for appeal rights.
- Deliver the warning letter to the employee and place it in the employee's departmental personnel file using appropriate delivery procedures such as "Proof of Service."
- Suspension without Pay: This is normally the next stage in progressive discipline after written warning(s)
Suspension typically prevents work for a number of working days, as specified in the letter, and pay is docked accordingly.
Length of a suspension without pay will be influenced by policy or contract requirements.
The letter states that it is a suspension without pay, the appropriate policy or contract provision, and the number of days the employee will be suspended. It also (as with a letter of warning) describes the problem, previous corrective measures, impact of the problem, your expectations, consequences of failure to improve, and the employee's appeal rights.
Depending upon the personnel program the employee belongs to, you may be required to issue a letter of intent to suspend, which provides the employee with the right to appeal your intended action to the next higher management level before the action is implemented. Consult your L/ER Analyst as well as the policy or contract for more information.
Reduction of Pay within a Class: This alternative is normally used when you do not wish to remove the employee from the work site, but serious discipline is appropriate. It is most appropriately used in lieu of suspension without pay, in cases of chronic absenteeism or tardiness.
The reduction of pay is for a specific period of time, related to the seriousness of the performance discrepancy or work rule violation, and noted in the letter.
The disciplinary letter will incorporate the same elements included in a suspension letter.
You may have to issue a letter of intent similar to that used in cases of suspension. Consult your L/ER Analyst on the procedure.
Demotion to a Lower Classification: This action involves movement of an employee to a lower level position, and may be temporary or permanent.
Demotion is most often appropriate in cases of inadequate performance of responsibilities at a particular level, rather than violation of work rules. It should be based upon a reasonable expectation that the employee will perform successfully in the lower classified position. For example, did the employee previously hold a similar position, and did they perform satisfactorily?
Your notice letter and process are quite similar to those used for a suspension without pay, or a reduction of pay within class. Contact your L/ER Analyst if you are considering this disciplinary alternative.
Dismissal: This alternative is normally selected after performance counselling and progressive discipline have failed to get the employee's attention to the problem.
In extreme cases, such as job abandonment, theft, or an act that endangers others, the offence may be so grave that we forgo progressive discipline.
The disciplinary actions most commonly employed on the campus are written warnings and suspensions without pay. The concept of progressive discipline does not require that you use all the actions described above, but you will usually be expected to use more than one type in your attempt to correct the employee's performance or behavioural problems, because discipline should normally be progressive.
As a supervisor, it is perfectly natural for you to feel frustrated when an employee repeatedly fails to perform satisfactorily or follow the rules. Keep in mind, however, that most employees come to work wanting to do a good job. Some will require more specific and frequent feedback than others to understand what that means in your work site and in the jobs under your supervision. Frequency of feedback will largely depend on what you observe in the employee's behaviour and performance and on the cycles of the work (e.g., tardiness can be corrected immediately, but it may take days or weeks to complete a particular project or task for your review).
Remember that the purpose of disciplinary action is to turn performance around by continuing to identify problems, causes, and solutions. If you can accomplish it in a positive and constructive way, you will send a message that you are out not to punish, but to help the employee become a fully productive member of your work unit.
In carrying out disciplinary action be sure to:
- Maintain a professional manner by keeping the disciplinary process confidential between you and the employee
- Make a careful diagnosis of the problem to determine whether disciplinary action is appropriate
- Provide specific examples of performance discrepancies or work rule violations so the employee fully understands what needs correction
- Allow the employee ample opportunity to explain so that you have all the facts
- Make sure discipline is the appropriate tool. Would coaching or performance appraisal be sufficient to get the employee's attention?
- When you take disciplinary action, make sure the punishment fits the crime
- Help the employee improve performance by providing specific recommendations and requirements
- Communicate clearly so the employee understands the consequences if performance or conduct does not improve
FSAP Services (Faculty and Staff Assistance Program)
Development & Training Classes and Workshops
Labor & Employee Relations Unit in Human Resources
Applicable personnel policies and union contracts
[Date]
TO: [Employee’s name]
[Title]
FROM: [Supervisor’s Name]
RE: Letter of Warning for [Reason]
This letter of warning is being issued to you for unsatisfactory performance [state reasons].
[In next paragraph or two, describe the specific incidents that prompted this letter and provide examples.]
On [date(s)], you were counselled by me verbally and received a Letter of Counselling (attached). I further indicated that I would continue to review your performance for improvement. Please see attached Performance Expectations.
Therefore, it is imperative that you understand that failure to show immediate and sustained improvement in your performance may result in further disciplinary action, up to and including your dismissal from employment with the University. If you have any questions regarding this matter, feel free to discuss them with me.
If you are experiencing problems of a nature that may be amenable to assistance by the Faculty and Staff Assistance Program (FSAP), please feel free to contact that office at 476-8279. Their services are provided on a confidential basis and your participation is purely voluntary. Alternatively, you may wish to contact another agency, which may offer you assistance. While such action is not a condition of employment, if you are having personal difficulties that affect your ability to meet University and Departmental work expectations, it is your responsibility to take the measures necessary to fulfil those requirements. If you have any questions regarding the services that FSAP provides, you may wish to contact them directly.
You have the right to request a review of this action in accordance with the provisions of the collective bargaining agreement in effect between the University of California and [applicable union].
Attachments
cc: Departmental Personnel File
Labor and Employee Relations
[Supervisor’s Supervisor]
The University's personnel policies and collective bargaining agreements refer to disciplinary or corrective action as a consequence of an employee's misconduct or failure to perform satisfactorily. They do not provide a definition of just or proper cause for taking such action. Over the years, the opinions of arbitrators in discipline cases have established a set of guidelines or criteria to be applied to the facts of each case, commonly known as the Seven Tests of Just Cause.
1. Reasonable Rule or Work Order. Is the rule or order reasonably related to the orderly, efficient, and safe operation of the business?
- Is the rule or instruction straightforward and stated in language that is easy to understand?
- Have you been consistent and unbiased in applying the rule or standard? Is it applied consistently throughout your department?
- What is your department's discipline record for violation of this rule or standard?
2. Notice. Did the employee receive adequate notice of the work rule or performance standard and the possible consequences of failure to comply?
- Is the violated work rule or performance standard published? Is it up to date and relevant to the business needs of your unit?
- How was the employee made aware of it (department orientation, bulletin board, desk manual, and staff meeting notes, prior oral or written communication, employee's job description, and written standards)?
- What evidence do you have that the employee is aware of it, and understands it (new employee orientation, signature on a routing slip, signoff page)?
- Have you reviewed the employee's personnel file?
- Has this issue been raised in performance appraisals or previous disciplinary actions? If so, how recently?
- Prior notice may not be necessary in cases of serious misconduct such as theft, insubordination, or job abandonment.
3. Sufficient Investigation. Did you conduct an investigation before making a decision about taking disciplinary action?
- Why do you suspect that a work rule violation or performance discrepancy occurred?
- Can the employee perform the task? Is there a history of successful performance, or could the employee need additional training?
- Are there witnesses other than you? List others who may have knowledge of the issue through involvement or as witnesses (supervisors, employees, clients). Interview them and take notes.
- Are there written records pertinent to the case in your department or elsewhere on campus? Should in-house records be secured under lock and key during the investigation?
- Are there written processes or procedures which have a bearing on the case?
- Is there equipment that should be examined by you or experts?
- Do you need to call Internal Audit or the Campus Police? If you suspect misappropriation of University resources, you should immediately contact Internal Audit and your L/ER Analyst. Your own investigation will proceed, but other offices may provide information which becomes part of your evidence.
4. Fair Investigation. Was your investigation fair and objective?
- How long ago did the alleged infraction occur? (Unnecessary delays may send a message that you don't consider the infraction to be serious.)
- If you think you already know what happened, have you looked only for evidence to support your theory?
- Should you conduct the investigation, or are you too close to what happened to be objective?
- Should the employee remain on the work site during the investigation? (Do you fear sabotage, or is the employee a threat to others?)
- Have you made every effort to reconcile conflicting statements or other conflicting evidence? Are you prepared to discard what you cannot validate?
- Have you given the employee a chance to appear (with a representative if applicable), to tell their side of the story and respond to the evidence you have gathered?
5. Proof. During your investigation, did you find proof of misconduct or of a performance discrepancy?
- What conclusions are clearly supported by the evidence you gathered?
- Remember that evidence must be truly substantial, not flimsy or slight, to form a basis for taking disciplinary action.
6. Equal Treatment. Have you dealt with your employees equally, without discrimination?
- Are work rules applied consistently?
- Are all employees held accountable for the performance standards established for their positions?
- Have similarly situated employees (similar records and infractions) received the same discipline?
- What is your department's record for taking disciplinary action for this type of infraction? What is the campus' record? (Explore this with your L/ER Analyst.)
7. Appropriate Discipline. How do you decide what's appropriate?
- Is the discipline you propose to take reasonably related to the seriousness of the problem? (Did the violation pose serious safety problems or create work flow disruptions for the department?)
- Is it reasonably related to the employee's record (length of service and overall performance)? Is this violation part of a pattern?
- Do you have the authorization to take this action, or should you have it reviewed by the next level of management?
- A minor infraction does not merit harsh discipline unless it is a repeat occurrence by the employee.
- Given the same violation for two or more employees, their respective records of service provide the only basis for administering different disciplinary actions without being subject to a charge of discrimination.
- What personnel program is the employee part of (Union contract, PPSM)?
Participation of employees and Management
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.
Importance:
• 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.
(I) (iii) Essential condition for WPM:
The success of workers portion in management depends upon the following conditions.
•
The attitude and outlook of the parties should be enlightened and impartial so that a free and frank exchange of thoughts and opinions could be possible. Where a right kind of attitude exists and proper atmosphere prevails the process of participation is greatly stimulated.
•
Both parties should have a genuine faith in the system and in each other and be willing to work together. The management must give the participating institution its right place in the managerial organization of the undertaking and implementing the policies of the undertaking. The labor, on the other hand, must also whole heartedly co-operate with the management through its trade unions. The foremen and supervisory cadre must also lend their full support so that the accepted policies could be implemented without any resentment on either side.
• Participation should be real. The issues related to increase in production and productivity, evaluation of costs, development of personnel, and expansion of markets should also be brought under the jurisdiction of the participating bodies. These bodies should meet frequently and their decisions should be timely implemented and strictly adhered to. Further,
O Participation must work as complementary body to help collective bargaining, which creates conditions of work and also creates legal relations.
O There should be a strong trade union, which has learnt the virtues of unit and self-reliance so that they may effectively take part in collective bargaining or participation.
O A peaceful atmosphere should be there wherein there are no strikes and lock-outs, for their presence ruins the employees, harms the interest of the society, and puts the employees to financial losses.
O Authority should be centralized through democratic management process. The participation should be at the two or at the most three levels.
O Programs for training and education should be developed comprehensively. For this purpose, Labor is to be given education not to the head alone, not to the heart alone, not to the hands alone, but it is dedicated to the three; to make the workers think, feel and act. Labor is to be educated to enable him to think clearly, rationally and logically; to enable him to feel deeply and emotionally; and to enable him to act in a responsible way.
Conclusion:
Management should be prepared to give all information connected with the working of the industry and labor should handle that information with full confidence and responsibility. The workers should become aware of their responsibilities. The leaders should initiate this in them. Similarly, the top management should make the lower echelons to show a new attitude in the light of the new relationship.
One view is that workers or the trade unions should, as equal partners, sit with the management and make joint managerial decisions.
The other view is that workers should only be given an opportunity, through their representatives, to influence managerial decisions at various levels.
In practice, the participation of workers can take place by one or all the methods listed below:
1. Board level participation
2. Ownership participation
3. Complete control
4. Staff or work councils
5. Joint councils and committees
6. Collective Bargaining
7. Job enlargement and enrichment
8. Suggestion schemes
9. Quality circles
10. Empowered teams
11. TQM
12. Financial participation
1. Participation at the Board level:
This would be the 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.
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.
Problems associated with this method:
•
Focus of workers’ representatives is different from the focus of the remaining members of the Board.
Collective bargaining:
Collective bargaining is a process between employers and employees to reach an agreement regarding the rights and duties of people at work. Collective bargaining aims to reach a collective agreement which usually sets out issues such as employees pay, working hours, training, health and safety, and rights to participate in workplace or company affairs.
During the bargaining process, employees are typically represented by a trade union. The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a federation of businesses, depending on the country, to reach an industry wide agreement.
A collective agreement functions as a labor contract between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management, in some countries by an employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions and grievance-procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA).
A number of theories – from the fields of industrial relations, economics, political science, history and sociology (as well as in the writings of activists, workers and labor organizations) – have attempted to define and explain collective bargaining.
Collective bargaining consists of a type of negotiation between organized workers or employees and their employer or employers - usually to determine wages, hours, rules, and working conditions.
One theory suggests that collective bargaining is a human right and thus deserving of legal protection. Universal Declaration of Human Rights identifies the ability to organize trade unions as a fundamental human right. International Labor Organization's Declaration on Fundamental Principles and Rights at Work defines the "freedom of association and the effective recognition of the right to collective bargaining" as an essential right of workers.
In June 2007 the Supreme Court of Canada extensively reviewed the rationale for regarding collective bargaining as a human right. In the case of Facilities Sub sector Bargaining Assn. v. British Columbia; the Court made the following observations:
· The right to bargain collectively with an employer enhances the human dignity, liberty and autonomy of workers by giving them the opportunity to influence the establishment of workplace rules and thereby gain some control over a major aspect of their lives, namely their work.
Collective bargaining is not simply an instrument for pursuing external ends…rather [it] is intrinsically valuable as an experience in self-government. Collective bargaining permits workers to achieve a form of workplace democracy and to ensure the rule of law in the workplace. Workers gain a voice to influence the establishment of rules that control a major aspect of their lives.
Different economic theories provide a number of models intended to explain some aspects of collective bargaining:
- The so-called Monopoly Union Model (Dunlop, 1944) states that the monopoly union has the power to maximize the wage rate; the firm then chooses the level of employment. (Recent literature has started to abandon this model.
- The Right-to-Manage model, developed by the British school during the 1980s (Nickell) views the labor union and the firm bargaining over the wage rate according to a typical Nash Bargaining Maxi min where U is the utility function of the labor union, Π the profit of the firm and represents the bargaining power of the labor unions).
- The efficient bargaining model (McDonald and Solow, 1981) sees the union and the firm bargaining over both wages and employment (or, more realistically
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