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Legal aspects of workplace relationship

Law of the land influencing Labor relations (Labor Act/Rules, Trade Union Act/Rules, Arbitration act) Disciplinary measures & it’s impact. Legal aspects of workplace relationship. What ?.

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Legal aspects of workplace relationship

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  1. Law of the land influencing Labor relations(Labor Act/Rules, Trade Union Act/Rules, Arbitration act)Disciplinary measures & it’s impact. Legal aspects of workplace relationship

  2. What ? • A trade union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. • The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with employers. • This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies.

  3. Union-Management Relations … • Labor Union • An organization of workers acting together to negotiate their wages and working conditions with employers • Union-Management Relations • The dealings between labor union and business management, both in the bargaining process and beyond it

  4. The Historical Development … • Early history • Craft union • Organization of skilled workers in a single craft or trade • Limited to a single city. • Knights of Labor • the largest and one of the most important American labor organizations of the 1880s. • promoted the social and cultural uplift of the workingman, rejected socialism and radicalism, demanded the eight-hour day, and promoted the producers ethic of republicanism

  5. In USA 1790 Skilled Craftsman • In India 1850 (gained momentum after 1920) • Trade Union Act 1926 • France, Germany 1870 onwards • In Nepal 1946 All Nepal Trade Union Congress

  6. Evolution of contemporary labor organizations • Industrial Union • An organization of both skilled and unskilled workers in a single industry • Congress of Industrial Organizations (CIO) • Formed by industrial unions

  7. Historical Overview of Unions Sources: U.S. Bureau of Labor Statistics, Dictionary of U.S. Labor Organizations, 1986–1987; www.aflcio.org; Statistical Abstract of the United States, 2001.

  8. Trade Union Situation in Nepal • Until the latter half of 1980s, Nepali state remained hyperactive in the sphere of production, distribution, regulation, circulation and control. • In 1990, Nepal witnessed a change in the polity—from partilessness to multi-party, competitive election, provision of human rights, constitutional monarchy and sovereignty of people. • The Privatization Act 1991, New Industrial Policy 1992, Industrial Enterprises Act 1992, Foreign Investment and Technology Transfer Act 1992 were passed to liberate the economy from politics and society and make it competitive to participate in the opportunities offered by globalization.

  9. Politics of Workers Welfare and Their Situation • In the 1990s there have been noticeable developments in the promulgation of acts. Labour Act 1992, Transportation Act 1992, Child Labour Act 1992, Trade Union Act 1993, Working Journalist Act 1994 and Labour Court Regulation Act 1995 have been promulgated. • A tripartite National Advisory Board was established in 1994. • Labour Relations Committees have been constituted and a Labour Court was established on January 15, 1996 to settle industrial disputes.

  10. Origin of Trade Unions in Nepal • There were no trade unions in Nepal before 1945 as the country was under the family rule of Ranas. • Nepal had followed closed-door economy having almost no relations with the outside world. • In 1946 All Nepal Trade Union Congress (ANTUC) was formed. • In 1947, Biratnagar Workers Union (BWU) was set up. • In March 1947 the first workers’ movement took place at Biratnagar for the establishment of democracy.

  11. In 1951 ANTUC and BWU became united and formed the first trade union federation in Nepal. • The World Federation of Trade Unions (WFTU) in 1953 granted membership to ANTUC. • After the democratic change of 1950, the freedom of association allowed the opportunities to many voluntary organizations in the country and the workers, too, felt the need to be united under one umbrella to fightagainst the exploitation of the management and the government.

  12. Major Federations … • Nepal Trade Union Congress (NTUC) was established in 1947 with the objectives of promoting workers rights. Affiliated to Nepali Congress. • Democratic Confederation of Nepalese Trade Unions (DECONT) is established on May 1, 1997 after it broke away from NTUC. • 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 CPN-UML. • All Nepal Revolutionary Trade Union Federation affiliated to Maoist.

  13. Process of Union Formation … • There are three tiers of Union. • At enterprise level, formation of union requires minimum of 10 persons. Not allowed to participate in more than one union. • At Trade Union Association level, 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. 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. • At Federation level, 10 national level unions out of which 6 should be from organized sector can form Trade Union Federation.

  14. Nepal & Core Labour Standards • Nepal became the member of International Labour Organization in 1966. Until now, it has ratified the following seven conventions: • 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 Organize and Collective Bargaining Convention No. 98 and, • Minimum Age Convention 138.

  15. The Unionization Process … • Why some employees join unions • As a way to combat alienation and loss of personal identity from dull and repetitive jobs • Due to the perception that union membership increases job security • As a way of expressing dissatisfaction with one or more elements of the job • Due to personal background (family history of union membership) • As a requirement to keep a job under provisions of the labor contract between the union and the firm

  16. Unionization process Personality, Interest, Preferences Employment / Psychological Contract Satisfaction Influence of Management Work Situation Attempt to Resolve Situation Individually Dissatisfaction Union Instrumentality Unionization

  17. Strategic Choices before Managers .. • Whether organization should be union free or allow unionization. • If decided for union free, take step to keep it away. • If unionization allowed, type of management union relationship should be decided. • Negotiation tactic should be decided.

  18. Strategies for Remaining Union Free Effective Supervisor Open Communication Effective Personnel Research Planning Union Free Effective Recruitment and Selection Healthy and Safe Working Environment Effective ERM Effective Training and Development Effective Remuneration

  19. Union-Management Contract Issues • Employee pay • Forms of pay • Direct compensation: wage or salary and benefits • Deferred compensation: pension and retirement • Magnitude of pay • Parity with local and national industry pay levels • Real wage protection through cost-of-living clauses • Financial condition of employer • Cost-sharing for benefits

  20. Employee pay (cont’d) • Pay determinants • Management seeks to tie wages to each employee’s productivity • Unions feel this creates unnecessary competition and usually suggest pay according to seniority • Management seeks to constrain benefits to only some employees • Unions want equal application of benefits

  21. Security • For the individual • Job security: Protection against the loss of employment • Seniority • Management rights • The firm wants to control whom it hires, how work is scheduled, how discipline is handled • Unions seek to control these matters • Some union executives have been given seats on corporate boards of directors

  22. Union Security … • Closed Shop • The company can hire only union members. • Union Shop • The company can hire nonunion people but they must join the union. • Agency Shop • Employee who are not member of union must still pay union dues. • Open Shop • The workers decide whether to join union or not.

  23. Labor Act … • Employment and Job security • Working hours • Remuneration • Minimum wages • Payment, Period, • Health and Safety • Welfare arrangements • Conduct and Penalties • Settlement of Labor disputes

  24. Trade Union Act … • Registration of Trade union and Trade union Federation. • Operation, Management and Recognition of Trade union • Trade Union Merger

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