Industrial Relations and Labor Laws – Internal Assignment

Question 1.
Amazon is an American multi-national company that primarily focuses on e-commerce, cloud
computing, digital streaming and artificial intelligence. It has been referred to as "one of the
most influential economic and cultural forces in the world", being one of the world's most
valuable brands.
As a part of Amazon’s logistics department for e-commerce, it directly employs people to work
in its warehouses, bulk distribution centers and delivery stations where the drivers pick up
packages. Amazon has various types of distribution facilities, consisting of cross-dock centers,
fulfillment centers, sortation centers, delivery stations, etc. There are approximately 75
fulfillment centers and 25 sortation centers with over 125,000 employees working in
them. Employees are responsible for five basic tasks which include unpacking and inspecting
the incoming goods, placing goods in storage and recording their location, picking merchandises
from their computer recorded locations to make up individual shipments, sorting and packing
the orders, and shipping. A computer records the location of goods and maps out routes for
pickers and employees carry hand-held computers which are able to communicate with the
central computer as well as monitor their rate of progress.
In September 2006, Amazon launched a program called Fulfillment By Amazon (FBA) where it
could handle storage, packing and distribution of products and services for small and medium
sellers. Amazon is well known for its impeccable warehousing and distribution, and super-fast
delivery. While this makes Amazon’s customers and shareholders happy, many workers are not.
To complete these “super-fast” deliveries, the employees at Amazon’s fulfilment centers have
to toil day in and out.
Workers have reported that they are mandated to scan an item every 11 seconds, which makes
it a staggering 300 items each hour. Employees at Amazon get two 15-minute breaks, and one
30-minute lunch break over their 10-hour shifts. They have to be standing at all times other
than breaks, since there are no chairs at workstations. However, even breaks are not fully
available to all the workers as the break-time includes the time taken to walk to the break-room
from the work-station. In a large fulfilment center, this takes a significant amount of time. This
is a major reason why workers often choose to stay at their workstations during the break
periods as well.
Some workers even avoid going to the washrooms during their shift as the visit to the
washroom is recorded under ‘nonproductive time’. Even if workers aren’t feeling well, they
avoid drinking extra water as nonproductive time is not disregarded on any account. Workers
are constantly monitored through wearable devices for the time spent on “non-productive”
work. Anything less than 100% of the targeted “productive” time is deemed not enough and
eventually leads to dismissal.
Safety protocols are either not carefully designed or not thoroughly followed. Former workers
have reported repeated violations of even the basic safety protocols, such as mandated ‘group
work’ being done by one person or by fewer persons than stipulated, overstuffed containers
which may lead to falling objects, workers moving in the path of moving machines, etc. Such
violations should be consistently monitored, recorded and corrected by the safety department.
However, the safety teams themselves feel undermined, as safety often takes a backseat when
production targets are treated as a priority. In these cases, procedures such as safety training or
safety talks are often seen as an obstacle, as adding to the non-productive time. Safe working
methods like mandated group work is seen as pushing down productivity.
These are extremely dangerous situations that the employees are in. Naturally, they desire to
seek the help of trade unions that can help them in negotiating working conditions and the
environment. But Amazon does not believe its employees need the support of any union. In
their words, “we understand unions work in some industries, but they would conflict with our
culture, customer obsession, and direct working relationship.” Throughout Amazon’s 25-year
history, there have been multiple rumblings of workers trying to unionize. But none of those
efforts have been successful. Amazon says, “we do not believe unions are in the best interests
of our customers, our shareholders, and most importantly, our associates.” Jeff Bezoz, the
founder of Amazon does not believe that they need a union to be an intermediary between the
management and employees.
The most recent example of workers and unions taking action happened on Prime Day in July,
when a handful of Amazon workers at one fulfilment center outside Minneapolis went on a
strike, demanding change in their overall working conditions. Employees complained about
working conditions and things like allotted time off task and the expected pace of work.
Amazon remains non-union, partly by training its managers how to handle union efforts. But
with record-breaking sales numbers and newly doubled shipping speeds, momentum to
organize as picked up among some of Amazon’s more than 650,000 worldwide employees. It
prefers not to unionize because if the union contract says they have to slow down on speed of
sorting packages, then they have to bring in more employees which is a costly affair, or actually
reduce speed, which would mean they lose their competitive advantage.
If the Amazon workforce unionizes, it would impact a wide range of industries. Amazon is a
retailer, a transportation, media and a pharmaceutical company. Unionization would
reverberate all across the economy and provide hope for working people everywhere. It would
help employees in successfully demanding what they deserve. Workers would be more satisfied
and motivated which will in turn result in increased productivity.
However, if Amazon does not wish to unionize, it must absolutely resolve employee grievances
internally and provide them with basic safety necessities, adequate work breaks, and safer
working conditions. This will help their employees feel valued and motivated. Amazon must
prioritize workers before customers because satisfied workers can only bring happy customers.
If it fails to do so, Amazon will face various challenges which will ultimately bring about its
downfall.
References: https://www.theguardian.com/technology/2020/feb/05/amazon-workers-protest-
unsafe-grueling-conditions-warehouse
https://www.forbes.com/sites/jackkelly/2021/10/25/a-hard-hitting-investigative-report-into-
amazon-shows-that-workers-needs-were-neglected-in-favor-of-getting-goods-delivered-
quickly/?sh=517763651f50
https://blog.ipleaders.in/unsafe-working-conditions-amazon-warehouse-impact-employees-
insight/

Question 2.
Employee relations can be explained as the efforts put in by an organization to create and
sustain positive relationships with its employees. These relationships aim to maintain the
employees’ loyalty, increase their productivity, and to give them a sense of belonging to the
organization. Organizations investing in employee engagement and retention plans are more
likely to keep employees loyal and productive at the workplace. According to The Impact of
Employee Engagement on Performance, a study by Harvard Business Review (HBR), 71% of the
respondents agree that employee engagement is extremely critical to the overall success of the
organization.
An organization’s human resources department manages and sustains employee relations. They
are responsible for being a listening ear to employees, an intermediary between employees and
managers to advise in areas such as fair compensation, useful benefits, work-life balance,
reasonable working hours, etc.
There are a few employee relations challenges that employers face in any organization. They
are:
1. Conflict management – conflicts in an organization are inevitable. They can be due to
differences in opinions or share in the benefits of productivity. This affects the overall
work environment in the organization which may further hamper productivity. Thus,
conflicts should be prevented and managed efficiently. This can be done by encouraging
open communication in the organization and providing a channel for employees to
express their concerns and providing constructive suggestions to improve the working
environment. This helps in minimizing misunderstandings and builds trust among
employees, which helps in improving the overall quality of work.
 2. Wages and hours issues – insufficient wages are the number one reason for poor
employee relations. The desire of workers to get higher wages or allowances or bonuses
and the desire of employers to pay as little as possible to the workers causes a strain in
employee relations. There may also be situations where an employee disputes the
number of hours they worked, even insisting that they worked extra overtime hours
which may not be accounted for in reality. Therefore, self-service timekeeping programs
must be used which will enable employees to clock in and out themselves. It is an
efficient way to closely monitor while building trust in employees.
3. Adequate work safety – safety must be promoted periodically at the workplace to
prevent accidents. Employers must take efforts to provide safety tips, education and
proper safety equipment as well as guidelines. Healthy workplace conditions must also
be promoted, such as adequate provision of drinking water, lighting, safety and toilets.
Employers should ensure that employees are not overburdened and pressured to the
extent of fatigue due to long and overtime shifts.
4. Annual leave disputes – organizations have different policies about leaves which makes
it a delicate issue that could end in a dispute. Leave issues can negatively and
dramatically impact business operations if not properly managed. Annual leaves are
significant to employees as it is a means for them to reduce stress levels and come back
more motivated after the break. It is thus important to communicate employees leave
entitlement for smooth operations. A well-defined leave policy must be formulated and
made known to employees. This will not only ensure compliance with law, but also
reduce disputes.
5. Attendance woes – Attendance issues have become an extensive problem in most
workplaces. Lateness and extreme absenteeism without compelling reasons is not
acceptable and should not be tolerated. This will cause other employees to either lose
morale or follow suit, which in turn will affect the productivity of the company.
Timesheet fraud and buddy punching are issues that can be easily solved by effective
methods such as using a biometric attendance system.
Other common issues in employee relations are lethargic management and workforce, attitude
of contempt by management towards workforce, indiscipline, lack of human relation skills of
supervisors and managers, inadequate welfare facilities, unfair labor practices, retrenchment
and dismissal of workers, inter-union rivalries, negative economic and political environment
such as rise in inflation or strikes.
These challenges may result in negative consequences such as high absenteeism, low quality of
production, negligence, economic loss, adverse effect on relationships and high attrition. These
consequences damage the management and workers as well as harms the consumers and
economy of the country. Thus, these challenges must be managed efficiently.
Effective management of employee relations can help in continuous production without
interruptions, harmonious relationships, increased motivation, improved perspective and less
wastage. In addition to the ways mentioned earlier along with challenges, employee relations
can be managed by encouraging workers’ participation in decision making. Win-win situations
for both, the management and workers should be sought. The organization must develop and
implement initiatives to improve working conditions, productivity and prosperity. It should
enhance engagement levels with the workforce and strive to maintain high motivation levels. It
should also provide an opportunity for self-expression to the employees. The management
should try to ensure the needs of employees are fulfilled, and also recognize and reward high
levels of performance. The organization should invest in training and development of
employees.
Even the best of organizations can encounter employee relations issues on their journey to
success. However, the way such issues are handled can make or break the organization.
Employee relations can only improve if the management recognizes employees as active
contributors to the growth and sustainability of the organization. Thus, it is a responsibility of
the management to prevent such issues before happening and address them professionally as
and when they occur, before they escalate to become a significant problem.
Reference: https://talenx.io/2020/01/19/top-5-challenges-in-employee-relations-and-how-you-
can-address-them/
https://www.ncheck.net/employee-relations-issues/

Question 3. (a)
Industrial disputes are the differences between the employers and the workers in an industry.
An industrial dispute, according to Section 2(k) of the Industrial Disputes Act, 1947, is
explained as “any dispute of difference between employers and employers or between
employers and workmen, or between workmen and workmen, which is connected with the
employment or non-employment or the terms of employment and conditions of employment
of any person”.
The Industrial Disputes Act, 1947 is the primary legislation which came into operation on 1st
April 1947, governing dispute resolution extending to the whole of India.
It was enacted with the purpose of providing for the investigation and settlement of industrial
disputes, to prevent illegal strikes and lockouts, to provide relief to workers during lay-offs or
after retrenchment or wrongful dismissal, which had become very common due to the
industrial unrest. It also consists of tools for conciliation, arbitration and adjudication to
encourage actions that foster mutually favorable relationships between employers and
employees.
The Industrial Disputes Act intends to promote industrial peace and harmony with procedures
for investigating and resolving industrial conflicts with negotiations. Some other objectives of
the Industrial Disputes Act are to uphold peace and good relations between employers and
employees, to prevent illegal strikes and lockouts and to improve workers’ overall working
circumstances by avoiding exploitative labor practices.
Salient features of the Industrial Disputes Act are:
1. Any industrial dispute may be referred to an industrial tribunal by an agreement of the
parties to dispute or by the apt Government if it deems it expedient to do so.
2. An award declared by the arbitrator shall be binding on both parties to the dispute for
the specified period which is not exceeding one year. It shall be typically enforced by the
government.
3. Complete prohibition of illegal strikes and lockouts.
4. Compensation to the workers in cases of layoffs, retrenchment and transfers or closure
of an undertaking.
5. Number of authorities such as the Works Committee, Conciliation Officers, Board of
Conciliation, Courts of Enquiry, Labour Courts, Industrial Tribunal and the National
Tribunal are provided for the settlement of industrial conflicts and disputes. Each of
these authorities plays a vital role in the speedy redressal of grievances and disputes,
and in peaceful and amicable settlement of disputes which ensures industrial peace.
6. An agreement of the parties to the issue can submit any industrial dispute to an
industrial tribunal.
7. The appropriate government has the right to proclaim the transportation, coal, and the
iron and steel industries to be public utility services for the Industrial Disputes Act for a
maximum of six months in the interest if public or an emergency.
The Industrial Disputes Act of 1947 is a comprehensive legislation governing the development
and management of labor disputes. The Act gives the Government and the Industrial Law Board
a wide range of powers to monitor, regulate and oversee the activities of the industries. The Act
establishes bodies for dispute resolution and aims to prevent industrial disputes by encouraging
greater transparency among employers in their dealings with workers to build confidence and
have a progressive outlook.
References: https://www.legalserviceindia.com/legal/article-1031-salient-features-of-the-
industrial-disputes-act-1947.html
https://getlegalindia.com/industrial-dispute-act/#Features_of_the_Industrial_Disputes_Act

Question 3. (b)
The Grievance Settlement machinery has been provided under the Industrial Disputes Act,
1947. Industrial disputes are conflicts which arise between an employer and the workmen or
trade unions of workmen. These are on matters relating to an employer-employee relation. The
grievance settlement machinery provides a legalistic way of setting the disputes. When a
dispute arises, the act provides for several provisions for settling the disputes.
The goal of the grievance settlement machinery is to create an environment where disputes do
not arise at all. And in the case of any dispute, the judicial machinery has been provided to
settle them.
The Industrial Disputes Act, 1947 provides for these authorities for investigation and settlement
of industrial disputes; Works Committee, Conciliation Officer, Boards of Conciliation, Court of
Inquiry, Labor Court, Labor Tribunals, National Tribunals. The methods of settling grievances or
rights disputes are:
1. Collective Bargaining – A technique by which disputes are resolved amicably, by
agreement, rather than by coercion. The management and labor peacefully and
voluntarily settle their disputes in this method. It has evolved into a process of
bargaining between employers and workers to settle grievances related to employment
or non-employment, terms of employment or working conditions.
2. Conciliation – A form of mediation where a passive and indirect effort is made in order
to bring two conflicting parties to a compromise. A third party provides assistance to
help parties to reach an agreement. This third party is called the conciliator. The role of
the conciliator is to bring the rival parties together and discuss their differences with
them to find a possible solution to their grievances.
3. Voluntary arbitration – The arbitration procedure may adopt a compulsory or arbitrary
procedure. If the dispute is referred for arbitration if the parties agree for the same,
then it is a case of voluntary arbitration. The award given by the arbitrator is binding on
both the parties to the dispute.
4. Adjudication – It involves settling grievances through intervention by the outsider,
delegated by the legislature. The law provides for the mediation to be directed by the
Labour Courts, Industrial Tribunals and National Tribunal. The powers, procedures and
provisions of these three bodies are comparable and similar. The Labor Courts and
Industrial Tribunal may be set up by any State or Central Government. However, the
National Tribunal may be set up only by the Central Government, when the adjudication
of a dispute is of national significance.
The Act provides for both internal and external bodies for dispute resolution and prevention of
illegal strikes lockouts while mitigating the use of unfair labor practices. Even so, from a
compliance perspective, it is critical to have robust internal mechanisms that address disputes.
External mechanisms require a lot of effort, expense and time which leads to a soured
employer-employee relationship. Thus, having internal mechanisms is preferable as the
likelihood of relying on adjudication or alternate dispute resolution reduces, thus providing an
amicable working relationship which ultimately leads to better productivity.
References: https://blog.ipleaders.in/grievance-redressal-mechanism-solve-industrial-dispute-
india/
https://blog.ipleaders.in/industrial-dispute-settlement-
machineries/#:~:text=In%20view%20of%20this%2C%20the,Voluntary%20Arbitration