CHAPTER- 7

Employee Safety, Health and Labor Relations

Management
7.1. Safety and Health
The area of safety and accident prevention is of great concern to managers, at least partly because
of the increasing number of deaths and accidents at work. Supervisors play a key role in
monitoring workers for safety. Workers must develop safety consciousness through observance of
rules. The law enforcing authorities must take all steps to bring the violators to the book and
impose penalties so as to bring about a radical change in the outlook of managers who take safety
matters lightly.

Organizations are obliged to provide employees with a safe and healthful environment. Health is a
general state of physical, mental and emotional well-being. Safety is protection of a person’s
physical health. The main purpose of health and safety policies is the safe interaction of people
and the work environment. Poor working conditions affect employee performance badly.
Employees may find it difficult to concentrate on work. It would be too taxing for them to work
for longer hours. Their health may suffer. Accidents and injuries may multiply causing enormous
financial loss to the company. Absence and turnover ratios may grow. A company with poor
safety record may find it difficult to hire and retain skilled labor force. The overall quality of work
may suffer. Many deaths, injuries and illnesses occur because of safety violations, poor equipment
design or gross negligence.

1. Safety
It refers to protection of the physical well-being of people. The main purpose of effective safety
programs in organizations is to prevent work-related injuries and accidents. A well managed
factory will see to it that there are no physical hazards such as i) slipping and falling hazards, ii)
collision and obstruction hazards, iii) equipment hazards, iv) fire hazards, v) hazards from falling
objects, etc. It is documented that in every 20 seconds, throughout the world, some one dies of
industrial accident.

An accident-free plant enjoys certain benefits. Major ones are substantial savings in costs,
increased productivity and morale and legal grounds.

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2. Safety program
Safety Program deals with the prevention of accidents and with minimizing the resulting loss and
damage to persons and property. The following five basic principles must govern the safety
program of an organization:
1/ Industrial accidents result from a multiplicity of factors. The root causes of these factors
have to be identified.
2/ The most important function of safety programs is to identify potential hazards, provide
effective safety facilities and equipment and to take prompt remedial action. This is possible
only if there are:
 Comprehensive and effective systems for reporting all accidents causing damage or
injury;
 Adequate accident records and statistics;
 Systematic procedures for carrying out safety checks, inspections and Investigations;
 Methods of ensuring that safety equipment is maintained and used; and
 Proper means available for persuading managers, supervisors and workers to pay more
attention to safety matters.

3/ The safety policies of the organization should be determined by the top management and it
must be continuously involved in monitoring safety performance and in ensuring that
corrective action is taken when necessary.

4/ The management and the supervision must be made fully accountable for safety
performance in the working areas they control.

5/ All employees should be given thorough training in safe methods of work and they should
receive continuing education and guidance on eliminating safety hazards and prevention of
accidents.

A safety program generally contains six elements, namely:

 Making strategic choices.
 Development of policies, procedures and training systems,
 Organization for safety,
 Analysis of the causes and occurrence of accidents,

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  Implementation of the program
 Evaluation of the effectiveness of the program

2.1. Strategic Choices

The first step in a safety program is for management to make decisions regarding safety of
their workers. Some of the strategic choices are:
 Managers must determine the level of protection the organization will provide for
employees (i.e. Minimum /maximum level of protection).
 Managers can decide whether a safety program will be formal or informal. Formal
program will have written regulations and are carefully monitored. Informal
regulations are enforced through peer pressure or good training.
 Managers can also be proactive or reactive in developing procedures or plans with
respect to employee safety. Proactive managers seek to improve the safety of
employees prior to a need to do so, while reactive managers fix safety problems after
they occur.
 Managers can decide to use the safety of workers as a marketing tool for the
organization. This type of strategy would involve publicizing what the company has
done to promote safety and how safe the plant is to work with.

The four strategic choices listed above will also apply to issues relating to health of worker.

2.2. Safety Policy

The second step in evolving a safety program is to have a safety policy. A Policy specifies the
company's goals and designates the responsibilities and authority for their achievement. It
may also provide caveats and sanctions for failing to fulfill them. A policy must contain a
declaration of the organization's intent and the means by with the intent is to be realized.

2.3. Organization for safety

The third step in evolving a safety program is to constitute an organization for safety.
Companies constitute safety committees which are, composed of employees from across the
organization.

Typically, safety committees serve in advisory capacities and are responsible for such tasks as
reviewing safety procedures, making recommendations for eliminating specific safety and

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 health hazards, investigating accidents, fielding safety-related complaints from employees and
monitoring statutory compliance.

2.4. Analysis of the causes

The causes for accidents can be classified into two groups-human failure and machine failure.
Human failure leads to an accident when the employee ignores safety precautions and
commits an unsafe act. Majority of accidents occur because of human failure. On the other
hand, machine failure refers to faulty mechanical or physical conditions reading to accidents.
It is documented that 98 percent of accidents are preventable.

2.5. Implementing the Policy

The fifth step in a safety program is the implementation of the safety policy. For
implementation, the program must cover:
 Procedures for reporting accidents; hazards, fire precautions, first-aid.
 Arrangements for instructing workers about safe working methods and for training
employees in safety matters,
 General rules on safe working habits;
 Safety inspections,
 The provision of personal protective equipment, and rules as to its use.

2.6. Program Evaluation

The methods to gauge the effectiveness of safety program can be classified as systemic or
organic. Organic Methods attempt to evaluate how well the safety program is designed and
fulfilled. Of interest, in this case, is the merit of program's elements and their level of
implementation. In systemic methods, the concern is with the effects of the program, that is,
the achievement of the aim(s) the program is designed to serve (e.g. reduction in the rate
accidents, cost saving and the like).

3. Safety Management
Effective safety management begins with organizational commitment to a comprehensive safety
effort. This effort should be coordinated from the top level of management to include all members
of the organization. Once the organization has made a commitment to safety, different approaches
can be used:

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  Organizational Approach: Design of jobs; Development/implementation of safety
policies; Use of safety committees and Coordinating accident investigations.
 Engineering Approach: Design of work environment; Review of equipment; and
Ergonomics.
 Individual Approach: Reinforcing safety motivation and attitudes; Providing
employee safety training and Rewarding safety through incentive programs.

4. Health
It refers to a general state of physical, mental and emotional well-being. Industrial health is
essential to:
 Promote and maintain the highest degree of physical, social and mental well-being of
workers.
 Improve productivity and quality of work.
 Reduce accidents, injuries, absenteeism and labor turnover.
 Protect workers against any health hazard arising out of work or conditions in which
it is carried on.

The well- being of an employee in an individual establishment is affected by accidents and by ill
health physical as well as mental. It is possible to see employee health from the following angles -
physical health, mental health, noise control, stress management, HIV/AIDS, alcoholism, drug
abuse and violence in work place.
a) Physical Health
Ill health of employees results in reduced productivity, higher unsafe acts, and increased
absenteeism. On the other hand, a healthy worker is always cheerful, confident looking
and is an invaluable asset to the organization. As a result of ill health, organizations
provide health services to their employees.

b) Mental Health
In recent years, mental health of employees, particularly that of executives, has engaged
attention of employers. Three reasons may be given for this development:
1) Mental breakdowns are common in modern days because of pressures and
tensions.
2) Mental disturbances of various types result in reduced productivity and

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 lower profits for the organization.
3) Mental illness takes its all thought alcoholism, high employee turn over
and poor human relationships.

C) Noise Control
Long exposure to excessive noise impairs the hearing of employees. Besides, constant
exposure to high noise levels can cause hormonal imbalances, changes in blood
circulation, dizziness, increase in respiratory rate, heartburn, sleep disturbances and
fatigue.

It is impossible to eliminate noise from industrial establishments. It is there as long as

machinery is used in manufacturing operations. However, noise control can help minimize
harmful effects on employees. You can control noise by preparing on redesigning
machines, putting the machine in separate rooms, by constructing ceilings and walls with
acoustic materials to absorb sound, giving ear protection to prevent any impairment of
their hearing capacity.

d) Job stress
It refers to an individual's reaction to a disturbing factor in the environment. It is defined
as an adaptive response to an external situation that results in physical, psychological,
and/or behavioral deviations for organizational participants. Stress is high when there is an
uncertainty of outcome. In general, it can manifest itself in both positive and negative
ways.

Stress is said to be positive when the situation offers an opportunity for one to gain
something. Positive stress (Eustress) is often viewed as a motivation since, in its absence,
the individual lacks that "edge" necessary for peak performance.

Stress is negative when stress is associated with heart disease, alcoholism, drug abuse,
marital breakdowns, absenteeism, child abuse, and a host of other social, physical,
organizational and emotional problems.

Stresses are generated from individual, group and organizational sources.

I) Organizational stressors
In organizations, frequent causes of stress are task demands, role demands, interpersonal

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demands, organizational structure, organizational leadership, and the organization's life
cycle.
II) Group stressors
Group stressors can be categorized into three: Lack of growing cohesiveness; lack of
social support and interpersonal and inter group conflict.
iii) Individual stressors
Among individual factors contributing to stress are personality and life and career
changes.
iv) Environmental factors
Extra-organizational factors also contribute to job stress. These factors include political,
economic and technological uncertainties. These factors contribute to stress because of
their negative influence on one's job tenure.

Stress Consequences
Stress can have serious consequences for both our health and our work performance. In
terms of health, some of the consequences are heart disease, diabetes, ulcers, high blood
pressure, depression, irritation, anxiety, fatigue, lowered self-esteem and reduced job
satisfaction, use of drugs or alcohol.

The more serious consequences of stress relates to performance. It is said that moderate
levels of stress stimulate the body and increase its ability to react. Individuals then
perform better. But too much stress places unattainable demands or constraints on a
person, which results in poor performance.

Coping Strategies for stress

Coping strategies may be categorized into: i) Individual strategies and
ii) Organizational strategies.

Individual Strategies
As an individual, one has several techniques available to reduce tension. More prominent
among them are time management, Physical exercise, Relaxation, Yoga, Social support,
Situation control and unburdening oneself.

Organizational strategies
The management might want to consider several strategies such as personnel selection and

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placement, redesigning of jobs, participative decision-making, improved communication
and establishment of corporate well- being programs.

e) Acquired Immune Deficiency Syndrome(AIDS)

Scientists discover AIDS in 1983. The African continent is worst hit. Organizations are
hard hit by additional costs-direct and indirect - when their employees contact the disease.
Direct costs are in the form of increased medical burden. Indirect costs result from loss of
productivity when employees refuse to work with an AIDS-infects worker.

Much of the problem relating to AIDS stems from ignorance of people about the disease.
They believe that the disease highly infectious and there is no remedy for the victims. It is
the responsibility of the government and business and non-governmental organizations to
create better awareness about the disease in the minds of people.

What is needed most for the employers is to educate workers about HIV/AIDS. The
following guidelines need to be followed to make the educational program effective:
1) Employees must be made to understand how HIV/AIDS is contacted.
Understanding about the ways on contacting HIV/AIDS will ensure that the
activities do not occur at the workplace.
2) Presentations to employees must be handled by professionals, preferably from
experts.
3) All employees must attend the sessions

f) Alcoholism and Drug Abuse

Alcoholism is a serious and widespread disease. It does not strike any particular group-
alcoholism can strike employees from the junior to the general manager.

The effects of alcoholism on the worker and on the work are serious. Both the quality and
quantity of work decline sharply. Morale of the other workers is likely to suffer as they are
required to do the work of their alcoholic peer.

Organizations employ three techniques to tackle alcoholism in work places.

1. It disciplines alcoholics. When disciplining fails, the alcoholic is discharged.
2. In-house counseling will be conducted by the HR department, the company doctor
or by immediate supervisor.
3. Companies use outside agencies, psychiatrists and clinics to deal with the problem

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 of alcoholism.

Drug abuse is a recent phenomenon and is a serious one. It is more evident among young
employees and is found across all job levels.
Employees who are drug addicts are often much more difficult to detect than alcoholics-
liquor is easy to smell but not drugs. Besides, it is easy for an addict to pop a pill at lunch
or on a break, undetected.

During abuse affects job performance. As a result of the increased use of drugs in the
workplace, more and more companies have began to use some form of drug testing for
both job applicants and existing employees.

7.2 Industrial relations/ Labor Relations Management

The term ‘industrial relations’ refers to relationships between management and labor or among
employees and their organizations that characterize or grow out of employment. Theoretically
speaking, there are two parties in the ‘employment’ relationship-labor and management. Both
parties need to work in a spirit of cooperation, adjustment and accommodation. In their own
mutual interest certain rules for co-existence are formed and adhered to.

The term industrial relations has been defined by different authors in different ways. Dale Yoder
defined it as “a relationships between management and employees or among employees and their
organizations, that characterize and grow out of employment”.

According to R A Lester, industrial relations, “involve attempts to have workable solutions

between conflicting objectives and values, between incentive and economic security, between
discipline and industrial democracy, between authority and freedom and between bargaining and
cooperation.

One of the most comprehensive definitions which views industrial relations from the perspective
of human relationships is by J. Henry Richardson: "Industrial relations is an art, the art of living
together for purposes of production. The parties while working together learn this art by acquiring
the skills of adjustment.

Let us now discuss the features of Industrial Relations. A few notable features pertaining to

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industrial relations are as under:
1) Industrial relations are born out of employment relationship in an industrial setting. Without
the existence of two parties i.e. labour and management, this relationship cannot exist. It is the
industry, which provides the environment for industrial relations.
(II) Industrial relations are characterized by both conflict and co-operation. So the focus of
industrial relations is on the study of the attitudes, relationships, practices and procedures
developed by the contending parties to resolve or at least minimize conflicts.
(III) As the labour and management do not operate in isolation but are a part of the large system,
so the study of industrial relations also includes vital environmental issues like technology
of the workplace, country's socio-economic and political environment, nation's labour
policy, attitude of trade unions, workers and employers.
(IV) Industrial relations also involve the study of conditions conducive to the labour,
management co-operation as well as the practices and procedures required to elicit the
desired co-operation from both the parties.
(V) Industrial relations also study the laws, rules, regulations, agreements, awards of court,
customs and traditions, as well as policy framework laid down by the government for
eliciting co-operation between labour and management. Besides this, it makes an in-depth
analysis of the intervening patterns of the executive and judiciary in the regulation of
labour-management relations.

According to the ILO, “industrial relations deal with either the relationships between the state and
the employers and the workers’ organization or the relation between the occupational
organizations themselves”. The ILO uses the expression to denote such matters as “freedom of
association and the protection of the right, to organize, the application of the principles of the right
to organize and the right of collective bargaining, collective agreements, conciliation and
arbitration and machinery for cooperation between the authorities and the occupational
organizations at various levels of the economy.

The scope industrial relations:

 Promotion and development of healthy labor- management relations;
 Maintenance of industrial peace and avoidance of industrial strife and
 Development of industrial democracy.

Industrial relations is concerned with the relationship between management and workers and the

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role of regulatory mechanism in resolving any industrial dispute. It is concerned with the systems,
rules and procedures used by unions and employers to determine the reward for effort and other
conditions of employment, to protect the interests of the employed and their employers, and to
regulate the ways in which employers treat their employees.

Industrial relations covers the following areas:

 Collective bargaining
 Role of management, unions and government
 Machinery for resolution of industrial disputes
 Individual grievance and disciplinary policy and practice
 Labor legislation
 Industrial relations training
The major parties to Industrial Relations are the employees, employee representatives, employers,
associations of employers, government and courts and tribunals.

1. Factors influencing Industrial relations

Industrial relations are influenced by various factors, viz., institutional factors, economic factors
and technological factors.
 Institutional factors: These factors include government policy, labor legislation,
collective agreements, employee courts, employers’ federations, social institutions like
community, caste, joint family, creed, system of beliefs, attitudes of works, system of
power, status, etc.
 Economic factors: These factors include economic organizations like capitalist,
communist, mixed, etc, the structure of labor force, demand for and supply of labor
force.
 Technological factors: These factors include mechanization, automation,
rationalization, computerization, etc.

2. Objectives of industrial relations

The fundamental objective of industrial relations is, to maintain sound relations between
employees and employers. The other objectives can be drawn from this objective. They are:
 To enhance the economic status of the worker;
 To regulate the production by minimizing industrial conflicts through state control;

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  to provide an opportunity to the workers to have a say in the management and
decision-making;
 to improve workers’ strength with a view to solve their problems through mutual
negotiations and consultation with the management;
 to encourage and develop trade unions in order to improve the worker’ collective
strength;
 to avoid industrial conflict and their consequences; and
 to extend and maintain industrial democracy.

Much of employee relations is designed to send the message that the organization is a concerned
institution that will help, protect, assist and deal fairly with all its members. The typical decisions
that managers face in designing employee relations program include:
 Communication: How best can we convey our philosophy to employees and solicit their
opinions/ suggestions on work issues?
An employee handbook is a necessary part of communicating an employee relations
program. The handbook sets out the rules and policies within which employees and
managers must operate.
 Protection: Are there aspects of the workplace that threaten the well being of employees?
Every manager and employee wants a healthy and safe work environment. The issue
confronting contemporary organizations is, at what cost?
 Assistance: How shall we respond to special needs of specific employees?
 Cooperation: To what extent should decision making and control be shared?
The highest degree of potential employee involvement in organizational decisions occurs
when workers are also owners.
 Discipline and conflict: How shall we deal with it?
Labor relations deals with unionized workers while employee relations deals with non-
union workers.

3. Collective Bargaining
Collective bargaining is a procedure by which the terms and conditions of workers are regulated
by agreements between their bargaining agents and employers. The basic objective of collective
bargaining is to arrive at an agreement on wages and other conditions of employment. Both the

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employer and employees may begin the process with divergent views but ultimately try to reach a
compromise, making some sacrifices. As soon as a compromise is reached, the terms of
agreement are put into operation.

The underlying idea of collective bargaining is that the employer and employee relations should
not be decided unilaterally or with the intervention of any third party. Both parties must reconcile
their differences voluntarily through negotiations, yielding some concessions and making
sacrifices in the process. Both should bargain from a position of strength; there should be no
attempt to exploit the weaknesses or vulnerability of one party. Both parties have, more or less,
realized the importance of peaceful co-existence for their mutual benefit and continued progress.

Collective bargaining is the process by which union representatives for employees in a bargaining
unit negotiate employment conditions for the entire bargaining unit. It is the process whereby
representatives of management and workers negotiate over wages, hours, grievance procedure and
other terms and conditions of employment. It is a give-and take process between representatives
of two organizations for the benefit of both.
The attitude of management toward unions is one major factor in determining the collective
bargaining relationship. This attitude plays a crucial role in management's strategic approach to
collective bargaining.

Collective bargaining refers to the negotiation, administration and interpretation of a written

agreement between two parties that covers a specific period of time. This agreement or contract
lays out in specific terms the conditions of employment; that is, what is expected of employees
and what limits there are in management authority

The objective of collective bargaining is to agree on an acceptable contract- acceptable to

management, union representatives and the union membership. Four issues appear consistently
throughout all labor contracts: Wages; Hours; Terms and conditions of employment and
Grievance procedures.

4. Process of collective Bargaining

The collective bargaining process is made up of a number of stages. Over time, each situation
develops sight modifications, which are necessary for effective bargaining.
4.1. Preparation
Both labor and management representatives spend much time preparing for negotiations.

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 If a previous contract is expiring, the grievances filed under the old contract will be
reviewed to identify contract language changes to be negotiated. Employer and industry
data concerning wages, benefits, working conditions, management and union rights,
productivity and absenteeism are gathered.

Once the data are analyzed, each side identifies what its priorities are and what strategies
and tactics it will use to obtain what it wants. Each tries to allow itself some flexibility in
order to trade off less important demands for more critical ones.

4.2. Initial Demands

Typical bargaining includes initial proposals of expectations by both sides. The amount of
calmness exhibited sets the tone for future negotiations between the parties.

4.3. Continuing Negotiations

After opening positions have been taken, each side attempts to determine what the other
values highly so the best bargain can be struck. During negotiations, both management
and union must evaluate cost proposals concerning changes in wages, benefits, and other
economic items quickly and accurately.

Both employer and employee bargaining representatives negotiate in good faith. In good
faith negotiations, the parties agree to send negotiators who can bargain and make
decisions, rather than people who do not have the authority to commit either group to a
decision.

4.4. Settlement and contract Agreement

After an initial agreement has been made, the two sides usually return to their respective
constituencies to determine if what they have informally agreed on is acceptable.

A particularly crucial stage is ratification of the labor agreement, which occurs when
union members vote to accept the terms of a negotiated agreement. Prior to the ratification
vote, the union negotiating team explains the agreement to the union members and
presents it for a vote. If approval is voted, the agreement is then formalized into a contract.
If the contract does not match the perceptions and interests of those it covers, then the
likelihood of ratification decreases.

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5. Bargaining Impasse

Regardless of the structure of the bargaining process, labor and management do not always reach
agreement on the issues. If impasse occurs, then the disputes can be taken to conciliation,
mediation or arbitration.
5.1. Conciliation and mediation
In conciliation or mediation, an outside party attempts to help two deadlocked parties
continue negotiations and arrive at a solution. In conciliation, the third party attempts to
keep union and management negotiators talking so that they can reach a voluntary
settlement but makes no proposals for solutions.

In mediation, the third party assists the negotiators in their discussion and also suggests
settlement proposals. In neither conciliation nor mediation does the third party attempt to
impose a solution.

5.2. Arbitration
The process of arbitration is a means of deciding a dispute in which negotiating parties
submit the dispute to a third party to make a decision. Arbitration is used to solve
bargaining impasses primarily in the public sector.

6. Trade union
Trade unions are voluntary organizations of workers formed to promote and protect their interest
through collective action. It is an organization of workers, acting collectively, seeking to promote
and protect its mutual interests through collective bargaining.

The reasons individuals join unions are as divers as the people themselves. The most common
reasons are:
a) Higher wages and benefits
There are power and strength in numbers. As a result, unions sometimes are able to
obtain higher wages and benefit packages for their members than employees would be
able to negotiate individually.

b) Greater job security

Unions provide its members with a sense of independence from management’s power
to arbitrarily hire, promote, or fire. The collective bargaining contract will stipulate

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 rules that apply to all members, thus providing fairer and more uniform treatment.

c) Influence work rules

Where a union exists, workers are provided with an opportunity to participate in
determining the conditions under which they work, and an effective channel through
which they can protest conditions they believe are unfair.

d) Compulsory membership

7. Employee Discipline
Employee discipline may be considered as a force that promotes individuals or groups to observe
the rules, regulations and procedures.

Discipline is a form of training that enforces organizational rules. The goal of preventive
discipline is to heighten employee awareness of organizational policies and rules. Knowledge of
disciplinary actions may prevent violations. The emphasis on preventive discipline is similar to
the emphasis on preventing accidents.
Counseling by a supervisor in the work unit can have positive effects. Many times people simply
need to be made aware of rules.

7.1. Progressive discipline

Progressive discipline incorporates a sequence of steps into the shaping of employee behaviors. It
uses verbal and written reprimands and suspension before resorting to dismissal. It suggests that
actions to modify behavior become progressively more severe as the employee continues to show
improper behavior. Progressive discipline procedures include:
First offence verbal caution
Second offence written reprimands
Third offence suspension
Fourth offence demotion
Fifth Offence Dismissal

7.2. Effective Discipline

Because of legal aspects, managers must understand discipline and know how to administer it
properly. Effective discipline should be aimed at the behavior, not at the employee personality
because the reason for discipline is to improve performance. The manager administering
discipline must consider the effect of actions taken by other managers and of other actions taken

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in the past

Consistent discipline helps to set limits and informs people about what they can and cannot do.
Inconsistent discipline leads to confusion and uncertainty.

Effective discipline requires accurate written record keeping and written notification to the
employee. In many cases, the lack of written notification has been evidence for am employee’s
argument that he or she “did not know”. Also, effective discipline requires that people know the
rules. When people perceive discipline as unfair, it is often on the basis that they did not realize
they had broken a rule.

Additionally, effective discipline is immediate. The longer the time that transpires between the
offense and the disciplinary action, the less effective the discipline will be.

Finally, effective discipline is handled impersonally. Managers cannot make discipline an

enjoyable experience, but they can minimize the unpleasant effects some what by presenting it
impersonally and by focusing on behavior, not on the person.
Discharge: the final alternative
The final stage in the discipline process is termination. A manager may feel guilty when
dismissing an employee, and sometimes guilt is justified.

If an employee fails, it may be because the manager was not able to create an appropriate working
environment. Perhaps the employee was not adequately trained, or perhaps management failed to
establish effective policies. Managers are responsible for their employees, and to an extent, they
share the blame for failure.

Alternative dispute resolution

Alternatives to lawsuits in cases involving employee rights are being used with increasing
frequency. The most common of these alternative dispute resolution methods are arbitration, peer
review panels and mediation.

8. Grievance Management
Grievance is usually more formal in character than a complaint. A grievance is an alleged
misinterpretation, misapplication or violation of a provision in a union-management agreement.

Grievances may be real or imaginary, valid or invalid, genuine and false. Broadly speaking a

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complaint affecting one or more workers constitutes a grievance. It may relate to wages, the mode
of payment, payment of overtime, leave, interpretation of service agreements, transfer, dismissal
or discharge etc.

8.1. Definitions
Keith Davis defines: “Any real or imagined feeling of personal injustice which an employee has
concerning his employment relationship.”

As per Dale Yoder: “Grievance is a written complaint filed by an employee and claiming unfair
treatment.”

According to Flippo… “It is a type of discontent which must be expressed. A grievance is usually
more formal in character than a complaint.”

So, from the above we see that it is a type of discontent, which can be valid or ridiculous, but to
be a grievance in the organizational context it must involve an interpretation or application of the
provisions of labour contract.

8.2. Objectives of Grievance procedure

The main reasons for which a grievance procedure is required:
 It is a channel by which any aggrieved employee may present his grievance;
 It is a procedure to ensure systematic handling of grievance
 Now having discussed the objective what will be the Basic elements in any grievance
Procedure
 Existence of sound channel through which grievance may pass for redressal
 Procedure should be simple, definite and prompt
 Steps should be clearly defined

Management should be concerned with both complaints and grievances, because complaints are
good indicators of potential problems within the workforce. Also, unresolved complaints may turn
into grievances in a union environment.

8.3. Approaches to grievances

A formal grievance procedure sometimes leads management to conclude that the proper way to
handle grievances is to abide by the “letter of the law”. Such an approach can be labeled the
legalistic approach to resolution of grievances.

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A much more realistic approach, the behavioral approach recognizes that a grievance may be a
symptom of an underlying problem that management should investigate and rectify. It is
important to consider the behavioral aspects of grievances in order to understand why grievances
are filed and how employees perceive them.

Regarding why grievances have been filled, research has found that union stewards rather than
employees tend to initiate grievances over job descriptions. Also, grievances over work rules are
the least likely ones to be settled informally without resort to the use of grievance procedures

Management should recognize that a grievance is a behavioral expression of some underlying

problems. This statement does not mean that every grievance is symptomatic of something
radically wrong. Employees do file grievances over pretty matters as well as over important
concerns and management must be able to differentiate between the two. However, to ignore a
repeated problem by taking a legalistic approach to grievance resolution is to miss much of what
the grievance procedure can do for management.

8.4. Grievance Procedures

Grievance Procedures are formal communication channels designed to settle a grievance as soon
as possible after the problem arises. First-line supervisors are usually closest to a problem.
Grievance procedures can vary in the number of steps they include:
o Start: Formal expression of dissatisfaction by employee
o Step 1: Discussion of problem between employee and supervisor
o Step 2: Discussion of written grievance between union steward and
supervisor
o Step 3: Meeting between chief steward and supervisor’s manager and /or
HR manager
o Step 4: Meeting between union committee and unit plant manager or
industrial relations representative
o Step 5: Meeting between national union representative and company
executive or corporate industrial relations officer
o Step 6: Arbitration by impartial entity

Grievance arbitration is a means by which disputes arising from different interpretation of a labor

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contract are settled by a third party.

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