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Arbitration and Negotiation

Labour relations involve managing unionized employment situations. The objectives of labour relations include enhancing workers' economic status, reducing organizational conflict, and protecting employee interests. Effective labour relations are important for business functions and require cooperation between management and employees. Strikes, lockouts, arbitration, and negotiation are common approaches to resolving labour disputes.

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0% found this document useful (0 votes)
61 views35 pages

Arbitration and Negotiation

Labour relations involve managing unionized employment situations. The objectives of labour relations include enhancing workers' economic status, reducing organizational conflict, and protecting employee interests. Effective labour relations are important for business functions and require cooperation between management and employees. Strikes, lockouts, arbitration, and negotiation are common approaches to resolving labour disputes.

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Gayathri T
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Labour relations

Presenting by,
Mohana sundari.M
Sajitha begum
Ramya Ravichandran
Sasikala
Pratheeba
LABOUR RELATION

MEANING

Labour relations are the study and practice of


managing unionized employment situations. In
academia, labour relations is frequently a subarea within
industrial relations, though scholars from many
disciplines-including economics, sociology, history, law,
and political science-also study labour unions and labour
movements. In practice, labour relations are frequently a
subarea within human resource management.
For example, Labour relations managers might do
tasks such as helping management go through the
contract negotiation process with workers. Labour
relations managers might also enable the
resolution of employee complaints against
management or they might enable the resolution
of complaints that may occur due to workers being
laid off.
OBJECTIVE OF LABOUR RELATION

 To enhance the economic status of workers.

 To reduce conflict of the organization.

 To make good relation with subordinates. 

 To develop relation with other.

 To participate in decision making.

 To extent and maintain industrial democracy.

 To mitigate the demands of employees' & to harmonize labour welfare.

 To protect the interests of the employees by following the code of discipline. 


IMPORTANCE OF LABOUR RELATION

 Effective labour relations are essential in carrying out business functions.

 Labour relations are participated by the company management and their


rank and file.

 Employees are expected to follow the rules and regulations of a company.


 
 In turn, the management team must implement labour policies in
accordance to federal laws on labour and employment.
 
 
 Federal labour law defines rights of both white collar and
blue collar workers. This includes workplace safety, health
security, employment standards, and industrial relations.

 Employment standards refer to the rights of employees for


annual vacations during regular and non-working holidays,
just working hours, unjust dismissals, and acquisition of
minimum wage and severance pay.

 These also indicate reasonable layoff procedures of legitimate


employees.
ADVANTAGES OF LABOUR RELATION

 Reduces turnover, means savings in recruitment/ selection cost.

 Greater commitment means quality output / reduces rejections.

 More open communication, means better understanding.

 The level of industrial conflict low means productivity up.

 Provides numerical flexibility, means easy workforce adjustments.

 Easy introduction of new practices means better output.


 Increased job satisfaction level.

 Shared goals

 Shared values

 Shared learning

 Shared effort

 Shared communication
LABOUR RESPONSBLITY IN PRODUCTIVITY
Human aspect of production efficiency:

• “Trust begets Trust”- call for good labour


relations throughout the process of production.

• Economic cost can be cut down by efficient


administration
 It depends upon the
 Good relationship with the workers
 Close co-operation
 Understanding between managers and workers

• human value should be able to develop initiative


and promote active

• Constructive co-operation between worker and


management

• Active participation

• Clear understanding of work


RESPONSIBILITY OF EMPLOYERS:

Responsibility of management to look after


the well being of the individual worker.

 worker are the asset to the industry.


wages, working condition and employee
services are total well being
A clear personnel policy is essential

Duty of the employer is to promote a correct


attitude in the worker
Fair wages should be fixed
Work methods and layouts should be efficient
A joint consultative machinery must be set up.
Good industrial background is needed
Supervisory staff should be trained in handling men
• Recruitment methods beyond criticism
• Induction program should be clear
• Facilities for training and trade test is
necessary
• Good grievance procedure is necessary
• All benefits should be provided
• Adequate health and safety measures should
be provided.
• Efficient communication system and legislative
requirements should be carried out.
• Employee will be satisfied once there is an
redress of his grievances and encouragement
in his work.

• Work should be recognized by the superior


with that result productivity will be much
higher.

• human relations is Pre-requisites to higher


productivity.
STRIKES AND LOCKOUTS
MEANING
• A strike action (or simply a strike) is when a
large number of workers stop working in
protest. Strikes are usually done by a
labor union to get better pay, hours, or
working conditions. They became important
during the Industrial Revolution, when many
worked in factories and mines.
TYPES
Wildcat strike
• A wildcat strike is a strike that is not approved
by the labor union. Wildcat strikes are not
always protected like union-approved strikes
are.
Sympathy strike
• A sympathy strike is a strike that is done to
support another group of workers on strike.
• Slowdown strike
A slowdown strike is when the workers
are still working, but very slowly. It is
usually done when workers are not
allowed to have a full strike.

Green ban
A green ban is a strike that is done to
get the company to adopt more
environmentally friendly practices.
LOCKOUTS
Definition
• Industrial action during which an employer
withholds work, and denies employeesaccess
to the place of work. In effect, it is a strike by
the management to compel a settlement to a
labor dispute on terms favorable to the
employer. When lock out action is taken by
several employers in concert, it is called a joint
lockout. Also called shut out.
ARBITRATION AND NEGOTIATION
• Arbitration, a form of alternative dispute
resolution (ADR), is a legal technique for the
resolution of disputes outside the courts.
• It is a resolution technique in which a third
party reviews the evidence in the case and
imposes a decision that is legally binding for
both sides and enforceable.
• Other forms of ADR include mediation (a form of
settlement negotiation facilitated by a neutral third
party) and non-binding resolution by experts.
• Arbitration is often used for the resolution of
commercial disputes, particularly in the context of
international commercial transactions.
• The use of arbitration is also frequently employed in
consumer and employment matters, where arbitration
may be mandated by the terms of employment or
commercial contracts.
TYPES OF ARBITRATION

• Binding arbitration
• Non binding arbitration
• Court Appointed Arbitration
• Independent Arbitration
• Binding Arbitration: The parties agree to
waive their right to go to court for a judicial
decision which is binding by the arbitrators
ruling.
• Non-Binding Arbitration: The parties have the
discretion to abide by the arbitrator's decision
or seek other venues.
• Court Appointed Arbitration: Is just that ordered by
the court. The judge elects an arbitrator of their
choice to hear and render a ruling – which by the
way is binding.
• Independent Arbitration: Some have connected this
form of arbitration with names like dispute
resolution, ADR, debt settlement, debt arbitration
and debt negotiating to name a few. However, with
this type of arbitration you will notice vast
differences.
NEGOTIATION
• Negotiation is a dialogue between two or
more people or parties, intended to reach an
understanding.
• Negotiation is a process where each party
involved in negotiating tries to gain an
advantage for themselves by the end of the
process.
• Negotiation is intended to aim at compromise.
• Professional negotiators are often
specialized, such as union negotiators,
leverage buyout negotiators, peace
negotiators, hostage negotiators, or may
work under other titles, such as
diplomats, legislators or brokers
• In arbitration, both sides make an
argument as to the merits of their case
and the arbitrator decides the outcome.
• Negotiating strategies:
<> Distributive strategies
<> Integrative strategies
DISTRIBUTIVE NEGOTIATION
• Distributive negotiation is also
sometimes called positional or hard-
bargaining negotiation.
• It tends to approach negotiation on the
model of haggling in a market.
• Distributive negotiation is also
sometimes called win-lose because of
the assumption that one person's gain
results in another person's loss.
INTEGRATIVE NEGOTIATION
• Integrative negotiation is also sometimes called
interest-based or principled negotiation.
• It is a set of techniques that attempts to
improve the quality and likelihood of negotiated
agreement by providing an alternative to
traditional distributive negotiation techniques
• Integrative negotiation often involves a higher
degree of trust and the forming of a
relationship.
• It can also involve creative problem-solving that
aims to achieve mutual gains. It is also
sometimes called win-win negotiation.
Negotiation Tactics
• Tactics include more detailed statements
and actions and responses to others'
statements and actions.
• ADVERSARY OR PARTNER?
In the distributive approach each
negotiator is battling for the largest possible
piece of the pie, so it may be quite
appropriate - within certain limits - to regard
the other side more as an adversary than a
partner and to take a somewhat harder line.
A good agreement is not one with
maximum gain, but optimum gain.
• Employing an advocate
A skilled negotiator may serve as an
advocate for one party to the negotiation.
The advocate attempts to obtain the most
favorable outcomes possible for that party.

NEGOTIATION STYLE
Accommodating
Avoiding
Collaborating
Competing
Compromising
• POSITIVE EFFECT IN NEGOTIATION

 Even before the negotiation process


starts, people in a positive mood have more
confidence, and higher tendencies to plan to
use a cooperative strategy
 This in turn increases the likelihood
that parties will reach their instrumental
goals, and enhance the ability to find
integrative gains
 It increases satisfaction with achieved
outcome and influences one's desire for
future interactions.
• NEGATIVE EFFECT IN NEGOTIATION

 Negative affect has detrimental effects on


various stages in the negotiation process.

 Angry negotiators plan to use more


competitive strategies and to cooperate less,
even before the negotiation starts.

 Expression of negative emotions during


negotiation can sometimes be beneficial:
legitimately expressed anger can be an effective
way to show one's commitment, sincerity, and
needs
THANK YOU

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