Employee Grievances

Grievance…meaning

• An employee grievance is a concern, problem, or complaint that an

employee has about their work, the workplace, or someone they
work with—this includes management.

• Something has made them feel dissatisfied, and they believe it is

unfair and/or unjust on them.
??

• The question is whether this particular symptom or

feeling is given any attention or is ignored, altogether.

• What are the pros and cons of each of the approaches.

The National Commission on Labour states that “complaints affecting
one or more individual workers in respect of their wage payments,
overtime, leave, transfer, promotion, seniority, work assignment, and
discharges would constitute grievances.
Categories of grievances
Grievances may fall into certain broad categories, such as:
a) Wages, incentives, work arrangements, complaints about job
specifications

b) Rule interpretation, transfer, seniority, promotion

c) Working conditions, safety, welfare amenities

d) Supervision, discipline, interpersonal relationship

e) Contract violation, unfair labour practices

Effects of Grievance

Grievances, if they are not identified and redressed, may affect

adversely the workers, managers and the organisation. The effect could

be on:
➢On the production:
- Low quality of production and productivity
- Increase in the wastage of material, spoilage/leakage of machinery
- Increase in the cost of production per unit
➢On the employees
- Increases the rate of absenteeism and turnover
- Reduces the level of commitment, sincerity, and punctuality
- Increase the incidence of accidents
- Reduces the level of employee morale
➢On the managers:
- Strains the supervision-subordinate relations
- Increases the degree of supervision, control and follow-up
- Contributes to disciplinary cases
- Increase in employee unrest and conflicts
Grievance handling…
To a large extent, the approach will be governed by several variables
such as the:
• style of management,
• size of the enterprise,
• level of education of the workforce,
• technology of the plant and
• extent of unionisation of the workforce
In the present day social context…

• Especially, in democratic systems, it is accepted that employees

should be able to express their dissatisfaction whether it be a minor

irritation, a serious problem or a difference of opinion with the

supervisor over terms and conditions of employment.

Presentation of Grievances
Informal presentation of grievances have their advantages and
disadvantages.

• Informal treatment of grievances avoids the fear of bringing in writing and

perpetuating record of an employee being a chronic grievance against the
management.

• But informal and oral handling tends to promote a feeling of inadequacy,

less attention, and even inconsistent treatment.
• The recent trend in grievance handling has been towards formal
procedures.
• It is the most common conflict management tool available to the
employers.
• In practice, formal grievances get more serious attention than do
informal complaints.
• The formal step provides for the grievances to be presented in a
written form.
• The reason for writing is not to generate a bureaucratic culture but to
inject a sense of responsibility.
Generally…

Most enterprises have written grievance procedures patterned after the

Indian Labour Conference model and tailored to specific plant conditions.

• In exercising the right to present a grievance, the employee needs to be

free from restraint or coercion.

• An aggrieved worker is likely to be emotionally upset and does not always

feel capable of putting his/her problem before the supervisors, even orally,
much less in writing.
• The presentation of grievance to the first-line supervisor and its settlement
at that level is very important, as most of the grievances are at the shop
and workplace level.

• First-line management is more familiar with the workplace problem areas

and so better capable of handling them

• Moreover, grievance handling at the shop floor level gives meaning to the
concept of industrial democracy.
Measure of success of GR process

• A measure of success of the grievance redressal process is the extent

to which grievances are settled with skill, fairness, understanding and
good judgement.

• Emphasis is, therefore, placed for grievances being settled at the first
stage.
Role of Human Resource Department

Grievance handling is not the monopoly of a specialist or of a

functional department. The role of HR department in this regard should

be:
• To devise a sound grievance procedure which could serve as an
effective upward communication in the organisation
• To advise the line people about the importance of a sound grievance
handling system and its implementation
• To train the staff people, especially the front-line supervisors, in
effective grievance handling and in counselling skills
• To implement promptly the decisions taken by the grievance
committee, and for that matter to maintain effective and close liaison
with all concerned
• To maintain records of the activities of the grievance committee such as
details of meetings held, actions taken and implemented

• To take necessary follow-up, review the procedure, and if necessary,

modify the existing procedure to suit the changing circumstances

• To follow up individual cases of grievances settled and identify its effect on

the concerned individual worker and its impact on other employees of the
organisation.
Evaluation of Grievance Redressal Machinery

It is advisable for an organisation to periodically evaluate its formal

grievance procedure against three criteria:

i) The grievance rate

ii) The settlement rate

iii) The settlement level

The following test questions have been suggested in case management
is keen on evaluating the success of the redressal machinery on any
given grievance:
• Was the case handled in such a way that the parties involved in it
were able to identify and agree upon, what was at stake?
• Was the incident closed with a sense of satisfaction on the part of
everyone immediately involved in the original complaint?
• Was the case handled in a way that strengthened the line authority,
especially at the level immediately above that at which the
dissatisfaction was first expressed?
• Did the solution result in a better understanding and adjustment
between the supervisor and subordinate?

• Was there any spread of understanding as a result of this case, to

others in the management and in the union who were not directly
involved in the original complaint?

• Did the solution contribute to operational efficiency?

Grievance redressal procedure
The grievance redressal procedure may be regarded as supplying the
“psychotherapy” of industrial relations.

• Small problems can be discussed and settled promptly before they become
major and troublesome issues.

• Serious problems can be analysed in a rational manner and resolved

speedily, peacefully and in keeping with the terms of collective bargaining
contract.
A well-planned and well-administered grievance redressal procedure
has certain advantages:
1) It offers an opportunity to employees to process their grievances in
a dignified manner.
2) It provides a vehicle for individual employees to express
themselves.
3) It builds up a communication channel which the employers can use
to communicate with unions.
4) It improves people management skills of managers at the various
hierarchical levels by building up mature behavior.
5) It helps management to locate problem areas in the union management
relations and to anticipate union demands.

6) It strengthens union functioning and fosters understanding that facilitates

negotiation.

7) It indicates employees’ morale, attitude towards management and the

kind of problem they face at work.

8) It enables the management to understand the problems of the workforce

and workplace and helps to take corrective timely action.
Objective of a GR procedure?

What should be the objective of a grievance redressal procedure in an

organisation?

• It should result in greater industrial peace, improved inter-personal

relations, more job satisfaction and serve the interests of employers
and employees.
Model Grievance Procedure - Steps
1) An aggrieved employee shall first present his/her grievance verbally
in person to the officer designated by the management for this
purpose. The answer shall be given within 48 hours.
2) If the worker is not satisfied with the decision, s/he shall be
accompanied by a department representative to present the
grievance to the head of the deptt., who has to settle the grievance
within 3 days. Otherwise, s/he shall have to give reasons for the
delay.
3) In case the worker is not satisfied with the decision of the
department head, s/he may request the former to refer the case to
the grievance committee.
4) The committee considers the matter and makes its recommendations to
the manager within seven days of receipt of the grievance. If this is delayed,
reasons are to be recorded. Unanimous recommendations of the grievance
committee shall be implemented by the management.

5) If dissatisfied with the committee’s or the manager’s decision, the worker

has a right to appeal to the higher tier of management for revision. The
workman may take an union official along with him/her for discussion.
6) If the worker is still not satisfied with the decision of the
management, the union may ask for voluntary arbitration in the matter.
In case the management agrees, the matter is referred to an arbitrator,
whose decision is binding on both the parties. Unions generally favour
arbitration as the final step in disposing of unsettled grievances.
How to discover grievances?
• Direct observation
• Grievance procedure
• Gripe box (anonymous complaints)
• Open-door policy
• Exit interview
• Other channels (group meetings, collective bargaining etc.)
Conciliation

• Statutory provision for the conciliation machinery in the country was

made for the first time in the Trade Disputes Act, 1929. This provided
for the setting up of Boards of Conciliation by the Government for
settling industrial disputes.

• The industrial Disputes Act authorise the govt. to appoint conciliators

(also called mediators) charged with the duty of mediating in and
promoting the settlement of industrial disputes.
• A conciliation officer may be appointed for specific area or for specific
industries in a specific area or for one or more industries either
permanently or for a limited period.

• A board of conciliation is constituted for promoting the settlement of

industrial disputes.
What is conciliation?

• Participation by a third party in a industrial dispute between

management and its employees in order to bring them together to

resolve their differences is termed mediation or conciliation.

➢Which are the authorities competent for holding conciliation?

• Section 4 of Industrial Disputes Act 1947 empowers the appropriate

government to appoint such number of persons as may be deemed
necessary by notification in the official gazette as conciliation officers,
for discharging the responsibility of mediating in and promoting the
settlement of industrial disputes. All Labour officers, Asst. Labour
Commissioner including Dy. Labour Commissioner, Labour appointed
conciliation officers.
➢What are the functions of conciliation officers?

Section 12 of I.D. Act 1947 provides duties of conciliation officers. A

conciliation officer is required to investigate without delay the
industrial disputes and make efforts to settlement thereof and for the
purpose of bringing about a settlement of the dispute he may do all
such things as he deems fit for the purpose of bringing parties to come
to a fair and amicable settlement of the disputes.
➢Can conciliation officer bind the parties?

No. A conciliation officer has no authority or power to force the parties

to agree to his suggestions. He merely offers his services through his
good offices to find an amicable solution and will meet the needs of
the two parties. He may suggest answer to the problem.
➢Whether conciliation is mandatory or discretionary?

In case of public utility services where a notice under section 22 of the I

D Act, 1947 has been received, the conciliation officer must necessarily
hold immediate conciliation proceedings for prompt settlement of the
disputes. He has discretion in respect of non public utility services.
➢When CO should intervene in industrial disputes?

Intervention must not be either premature or too late. Time for

intervention may be chosen by the conciliation officer with due care.
➢When is conciliation proceeding commenced?
The conciliation officer has to give formal intimation in writing to the
parties declaring his intention to commence conciliation proceedings
with effect from such date as he may specify.

But, in case of any emergency like strike or lock-out, it has to be done

with greater speed.
When are conciliation proceedings deemed to have concluded?
The conciliation proceedings are concluded in the following manner:
1. Where conciliation ended in settlement - the date on which
settlement is signed by the parties to the disputes or
2. Where conciliation ended in failure, the date on which the failure
report of conciliation officer is received by the appropriate Govt.
3. When a reference is made to a Labour Court / Industrial Tribunal
during the pendency of conciliation proceedings.
Whether parties are required to be informed about the failure of
conciliation?

Yes, copies of failure report under Section 12 (A) of I.D. Act 1947 are
required to be sent to the parties to the dispute.
Whether conciliation officer can arrive at ex-parte conclusion of
proceedings?

Yes, If the party raising the dispute fails to turn-up without reasonable
cause, the case may be closed under intimation to it. If the opposite
party fails to turn-up, inspite of having been given reasonable no. of
opportunities, an adverse inference may be drawn and the case are
proceeded with on ex-parte basis.
Code of Discipline