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Chapter 24

Chapter 24. Resolving Disputes. Learning Objectives. Understand the nature of industrial disputes and causes for industrial strife. Understand the different methods of settling disputes. Causes of Disputes. Wage demands Union rivalry Political interference Unfair labour practices

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Chapter 24

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  1. Chapter 24 Resolving Disputes Human Resource Management, 5E

  2. Learning Objectives • Understand the nature of industrial disputes and causes for industrial strife. • Understand the different methods of settling disputes. Human Resource Management, 5E

  3. Causes of Disputes • Wage demands • Union rivalry • Political interference • Unfair labour practices • Multiplicity of Laws • Others Human Resource Management, 5E

  4. Union Rivalry and Violence • The Bangalore-based leader in automobile components has an experience which no rival should have. Upto 1978 the company had only one union headed by MSK, a veteran Communist leader and an outsider to the plant. But 1978 changed the IR scenario. In an election held, MSK’s team was trounced by a group comprising all employees of the plant. The winning team however was headed by S, who was an outsider. • The management did not take kindly to union led by S. It started supporting another team headed by MDN who was also an outsider and who enjoyed the support of the then Chief Minister of Karnataka. MDN and his supporters, abetted by the police and the management, resorted to large-scale violence and the supporters of S were severely beaten inside the plant. S, who had 3/4th of the employees behind him, gave a call and the employees struck work. The strike lasted six months. Human Resource Management, 5E

  5. Violence (contd..) • The general elections to state assembly were held in Karnataka in 1980 and there was a change in the state leadership. MDN too lost his clout. The new Chief Minister encouraged his own crony FMK who claimed himself to be a labour leader. • The management looked forward to FMK to browbeat S. It recognised the union led by FMK (who, like MDN, was an outsider) and the union was an affiliate of INTUC. • This led to another strike lasting three months. Management signed an agreement with the union led by FMK though S continued to enjoy majority support from employees. • Angered at the settlement reached, S took up the case to the High Court of Karnataka. Violence had its toll again. The management’s advocate was assaulted and the HRD manager too was man-handled and was stripped naked inside the plant. There were stabbings too. • Continuous struggle and solidarity of the workers had the last laugh. The management was forced to recognise S as the union leader. FMK lost his clout among the workers. This followed the loss of power by the Chief Minister who had supported FMK. • Both the management and S let the bygones be bygones. The company has been enjoying cordial IR till today. Human Resource Management, 5E

  6. Dispute Settlement Mechanisms Collective Bargaining Arbitration Code of Discipline Disputes Settlement Conciliation Grievance Procedure Consultative Machinery Adjudication Human Resource Management, 5E

  7. The Collective Bargaining Process Environment Preparing for Negotiation Bargaining Issues Negotiating Yes Negotiation Breakdowns Overcoming Breakdowns No Reaching the Agreement Ratifying the Agreement Administration of the Agreement Human Resource Management, 5E

  8. Grievance Procedure Stage 4 Complain to Union No Grievance Resolved Yes Stage 3 Complaint to Divisional Head No Grievance Resolved Yes Stage 2 Complaint to Department Head No Grievance Resolved Yes Stage 1 Complaint to Section Head Human Resource Management, 5E

  9. Reality Check • Which of the seven disputes-resolving methods, do you think is the ideal one? Why? Human Resource Management, 5E

  10. Reality Check • There is a dispute between the Dean of a B-school and its Director on disciplining an errant student. Which method do you suggest to resolve the dispute between the Dean and the Director? Why? Human Resource Management, 5E

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