8.1 Introduction
One of the responsibilities of a personnel department is to negotiate with trade unions on matters affecting workers and the terms and conditions of their employment.
This is really the subject matter of labor relations.
Harmonious relations between management and trade union is essential not only for the organization to achieve its objectives but also for the individual employee to realize his/her potential and subsequently to an economy benefiting its terms of availability of goods and services produced.
Without a peaceful working environment this would not be possible.
It is therefore important that management and labour unions understand each other’s functions, objectives among other aspects that may influence their operations.
In this unit we shall learn how management and workers relate to each other at the work place.
8.3 Meaning of Labour Relations
Labour Management Relations or Simply Labour Relations are the ways in which employees and their employers relate to each other professionally at the place of work.
It is the relations between workers and the employers in the working situations which may be either in the industry or any other organization where the individual is compensated for the services rendered.
This explanation brings forth certain features about labour relations : These are:
a) There is a contract between the worker and the employer
b) The relationship only exists in the working environment
c) The worker is compensated or paid for services rendered to the other.
8.4 Trade Unions
Employees in their various organizations are usually represented by the trade unions.
We may define a trade union as an association of workers formed to look after the interests of the workers.
Consequently we can say that the matter of labour relations are usually associated with trade unions activities.
Trade unions like any other organization have certain objectives that they aspire to achieve. Here are some of the trade Union objectives.
Objectives of Trade Unions
Broadly speaking, the functions of the trade unions are very comprehensive, much more so than their counterparts in the past.
The major reasons for the rise of this situation are:
a) That the contemporary trade unions have a clear perception of their ultimate goals
b) That the attitude of the top management has changed. In the past trade unions were viewed as resistance organizations formed to antagonize the efforts of an organization.
This has since changed and both management and trade unions perceive each other as members of the same team
c) That the contemporary trade unions have become more realistic in their demand
d) That trade union plays a positive role in organizations. For instance training their members to be more productive workers, looking after their welfare
e) That the legislation of labor laws has greatly improved trade unions and employer relations.
These laws have empowered unions to fight for their rights more forcefully.
f) That the registration and recognition of the trade unions as the only bargaining agents of workers has greatly improved their bargaining strength.
We can conclusively say that this situation has enabled trade unions to focus on their objectives.
These objectives of trade unions can be categorized into militant and fraternal.
Let us explain each one of these objectives in turn.
- Militant means ready to fight for or actively engage in the use of force or pressure.
Hence the militant objectives of trade Unions are those demands that the Unions make to their employers.
These may include:-
a) To secure fair wages for their members.
b) To demand for better working and living conditions.
c) Fight for shorter working hours.
d) To negotiate with employers on behalf of labourers.
e) To control the supply of labor in order to force the employer to give better wages.
- Fraternal means brotherly or stop fighting. Hence the fraternal objectives of trade Unions are those supportive or promotive ways used by trade unions for the benefit of their members. These may include:-
a) To offer financial support to members during periods of temporary unemployment, for instance during strikes or lock-outs by management.
b) To safeguard job security for their members.
c) To provide for vocational, cultural or recreational facilities.
d) To cooperate with management in order to facilitate technological advancement by broadening workers understanding on the underlying issues for the benefit of both parties.
e) To offer responsive co-operation in improving levels of production, discipline and high standard living for their members and workers in general.
f) Installing in their members a sense of responsibility towards industry and community.
g) To provide legal advice to their members.
h) To facilitate effective means of expression, representation in various bodies that deal with labor matters.
i) To unite workers under philosophy of ‘unity is strength’.
j) To secure their rights as trade unions, for the benefits of all its members.
Activity 8.1
Talk to a representative of a trade union in your locality and try to establish their trade union objectives. How are their trade unions objectives achieved?
Achievement of Trade Unions Objectives
The objectives of a trade union are achieved by pursuit of traditional methods. These are:-
a) By employees forming a trade union. Trade unions may be formed on the basis of either craft or industry in which its members are employed, such as general unions or professional employees associations.
By so joining together the employees become stronger in terms of bargaining with the employer.
b) By registration of trade union as the only bargaining agent. Under this arrangement the representative union is the only one entitled to advocate for the interests of its members.
c) By collective bargaining. This is the essence of labour relations. It is through collective bargaining that the terms and conditions of employment are determined and under which the work of negotiation is performed satisfactorily.
d) By grievance processing and handling procedure. Under this process, grievances are redressed by a correction of the situation or by channeling them ‘up the line’.
When a grievance reaches the chief executive officer, it has to be satisfactory dealt with by him or sent to an outside agency for settlement.
e) By negotiated agreements with the management. These negotiations may deal with wages, hours of work, terms and conditions of employment, job security, medical allowances, pension schemes among others.
f) By arbitration. This is where unsettled or unresolved disputes are resolved by an outside agency that is normally referred to as a third party.
g) By mutual insurance. This is done through common contributions of members to meet the financial needs of members.
This money may be extended to the members when there are work stoppages for instance during lockouts or strikes when the employer is not obliged to pay wages to the employees.
h) Using strikes and other forms of labour protest. This is resorted to by workers as the last resort to achieve their objective.
A strike can be defined as a total boycott of work. It is a labour protest intended to pressurize management to heed to the Union demands.
Other forms of protest include go-slows, tools down and so on.
Note: Among the ways used by trade unions to achieve their objective the most popular, commonly used and preferred way is the use of collective bargaining.
8.5 Collective Bargaining
Collective bargaining is a process by which employer and trade union confer in good faith and come to a mutual understanding about terms and conditions of work and as well as other work related aspects.
In essence therefore collective bargaining can be said to be a private negotiation between the employer and the trade union.
It is private in that it does not involve a third party. Collective bargaining is usually done through the representatives of a trade union and management representatives.
From this explanation the following features of collective bargaining emerge;
8.5.1 Features of Collective Bargaining
These include:
- It is done through representation of workers by their trade union and management senior executives.
- It fosters a spirit of self-confidence as each party has the facts and the data to table.
- It fosters a spirit of self-reliance as each party negotiates on its own behalf.
- It fosters a spirit of give and take as there are offers and counter offers at the negotiating table.
- It fosters a spirit of private negotiation as it does not involve a third party.
- It is based on the Industrial Relation Chapter of 1962 which advocates for resolving disagreements or disputes at the lowest possible level.
- It calls for preparation for negotiation so as to obtain genuine facts to be tabled.
- It calls for willingness on both parties to accept offers being floated.
- It is a group action as opposed to individual action as it is initiated through the representatives of workers.
- It is flexible and mobile and not fixed nor static. Once a settlement has been reached over an issue, and an agreement signed, other issues emerge and have to be negotiated.
It is therefore an ongoing process between management and labour.
- It is a two party negotiation process. The parties are the management and the trade union. An involvement of a third party ‘kills’ the spirit of collective bargaining that of mutual reciprocal negotiations.
From these points, we have outlined about collective bargaining, it is evident that the process has numerous merits.
8.5.2. Merits of Collective Bargaining
Collective bargaining as a means of resolving differences between management and workers has the following merits:
a) It is democratic in nature in that it is done through representatives of either party.
b) It is the way of solving disputes at the lowest possible level without involving a third party, other than the trade union and management.
c) It is the way of solving disputes amicably through offers and counter offers.
d) When disputes are resolved amicably through collective bargaining the two parties concerned remain satisfied.
e) The amicable resolution of a dispute between management and labour enhances industrial peace
f) Collective bargaining reduces government expenditure which would otherwise be incurred by way of investigation and arbitration of a dispute.
g) Collective bargaining reduces expenditure that would otherwise be incurred through compulsory adjudication of the industrial court.
h) Collective bargaining serves as emotional release channel whereby bottled up bad feeling are aired, discussed, clarifications made leading to signing of agreement, known as Collective Bargaining Agreements(CBA).
Note
Collective bargaining is the negotiation between management and workers’ trade union.
Despite this flowery picture about collective bargaining process as a way of resolving a dispute, it has its own demerits.
8.5.3 Demerits of Collective Bargaining. The demerits of collective bargaining include:
a) Collective bargaining requires proper research of facts which are a requisite for preparation for negotiations.
b) Workers are often disadvantaged as much of the information or facts may not be provided by management. Again this information may be given in piece meals or delayed.
c) At times collective bargaining may lead to unrealistic demands on the part of employees.
d) Collective bargaining overlooks individual problems.
Note: Collective bargaining is the negotiation between management and workers trade union.
If disputes persists, that is to say if they are not resolved amicably through the process of collective bargaining, the other alternative for resolving disputes is through compulsory adjudication by the industrial court hearings.
8.6 Compulsory Adjudication
This is a way of resolving disputes through Industrial Court hearings.
8.6.1 Merits of Compulsory Adjudication.
The merits of compulsory adjudication include:
a) It involves an impartial third party, the Industrial Court.
b) It is a more efficient way of handling disputes as it uses more experienced judges of long service who are well vast with labour matters.
c) There is closer use of the law.
d) Compulsory adjudication gives a fair hearing to both parties involved.
e) It is the last resort of solving disputes. The industrial court gives the final verdict biding to both parties concerned, known as an Award.
Nevertheless, compulsory adjudication as a means of resolving a dispute has its own demerits.
8.6.2. Demerits of using Compulsory Adjudication
The demerits may include:
i. This process is time wasting. Much time is spent in trying to investigate, gather information and data to resolve the difference.
ii. Compulsory adjudication follows a complicated procedure before a final judgment is made.
iii. In most cases, the employee is disadvantaged due to the government and employer alliance with one another.
We may conclude here by observing that disputes are not only disturbing to the employees and the organization but are also time wasting and costly.
Despite these private negotiations through collective bargaining we pointed out, individual employees may have unique complaints or grievances.
8.7 Grievance
A grievance is defined as anything that an employee thinks or feels it is wrong and generally accompanied by an actively disturbing feeling.
It does not have to be justified. The main features that emerge out of this definition are:
(a) That a grievance is any complaint or dissatisfaction which is expressed before management whether oral or in writing. It is a symptom of an underlying problem.
(b) A grievance is an individual complaint.
Having comprehended the meaning of grievance, let us now try to point out some of the causes of grievances in organizations.
8.7.1. Causes of Grievances
Complaints and grievances arise in the mind of workers due to various reasons.
As a matter of fact, their occurrence depends to a large extent on the atmosphere of industrial organization and the interpersonal relationship of management with their workers.
We may therefore say that grievances occur due to a violation of:
a) The collective bargaining agreement by either party in labour management matters.
b) Normal past practice by management.
c) Organizations rules for workers
d) Management responsibility to workers.
8.8 Discipline
Discipline is the process of inculcating orderliness obedience and self control.
“Discipline” in simple words therefore means orderliness.
In organizations discipline ensures that employee s conform to the rules and regulations of the organization.
It ties the employee to the code of desirable behaviour.
Some authorities say that discipline is the force that prompts an individual or group to observe rules, regulations and procedures that are deemed necessary to the attainment of organization objectives.
Aims of Discipline
The aims of discipline in organizations are:-
a) To obtain willingness and acceptance of an organization’s rules, regulations and procedures so that goals can be attained.
b) To impart an element of certainty despite several differences in informal behavior patterns and other changes in an organization.
c) To develop in the employees a spirit of tolerance and desire to make self adjustments.
d) To give or provide direction and responsibility on the part of employees.
e) To create an atmosphere of mutual respect and good human relations in the organization.
f) To increase the working efficiency and morale of the employees so that their productivity is stepped up so that the cost of production is brought down,
To improved quality of production by employees abiding to work ethics, work standards, procedures, regulations and so on.
We may therefore conclude and say that discipline is essential for the smooth running and functioning of an organization.
It is essential for the maintenance of industrial peace which is the very foundation of good Labour-relations.
Note
Discipline calls for a high degree of co-operation between workers and management.
By each party, observing its obligations and responsibilities in order to attain both organizational and individual employee objectives
Activity 8.2
- Explain the meaning of labour relations.
- Highlight on the objectives of trade unions.
- What ways are used by trade unions to achieve their objectives?
- Explain what is meant by collective bargaining.
- Highlight on causes of grievances.
- Explain the objectives of discipline in organizations.
