Meaning of Unionism | Process of Unionization | Labour Legislation

Unionism is the process of forming union. A union is an organization of workers, acting collectively to protect and promote the interest of the workers. A union is an organization and has certain structure, goals and objectives and people with it. A union is relatively permanent, members of the union work collectively as a group. Individual interests are sacrificed for the sake of group interest.

Members of the union seek to promote and protect their mutual interests. Such interests can be economic, cultural, social or political. A union operates through collective bargaining. Labour and management come to the bargaining table to negotiate and reach a settlement acceptable to both of them.

Process of Unionization

This involves;

• The laws should allow the formation of union. In Nepal, the trade union Act 1993 provides the legal basis for the formation of union. 
• There is need of organizing together. The workers come together to protect their interests and fight for social in justice, discrimination at work and so on with the management.
• A petition should be filed with the appropriate authority to register the union. In Nepal, the labour department acts as the registering agency for the government.
• The election is held to elect the office, bearers of the union.
• There is need of recognition of the duty elected union by the management.

Labour Legislation

Labour legislation refers to laws, rules, regulations and judicial decisions related to labour relations. It plays vital role in maintaining labour relations. Labour legislation creates legal rights and obligations between labour and management. The aim is to protect the rights and interest of the workers to provide them social justice.

Labour legislation plays two major roles:

1. Protective roles: This promotes and protects the rights and interests of the workers. It creates contractual relations for employment by specifying: 
1. Terms and condition of employment
2. Working conditions
3. Benefits and services for worker and his family compensation, including minimum wages and accident-related-compensation. 
2. Regulatory roles: This is concerned with promotion and maintenance of better labour relations. It defines, clarifies and regulates labour relations. Examples are
1. Right to work
2. Collective bargaining
3. Disputes and their settlement
4. Equal employment opportunities to avoid discrimination
5. Fair and equal treatment
6. Safety of workers
7. Welfare of worker and family
8. Unions and related matters.

Labour Legislation in Nepal

Nepal had no effective labour legislation till 1959. The important legal acts are as follows:

1. Nepal Factory and Factory Worker Act, 1959 (NFFWA): This was the first Act related with labour, where following provisions were made;
1. Payment of wages, overtime and minimum wages to workers.
2. Provident fund provision for permanent workers
3. Welfare provisions, consisting of
1. Leave, working hours
2. Pension, provident fund, maternity benefits
3. Compensation for injury/ disability/ death
4. Medical facilities
5. Rest room for taking rest by workers
6. Children’s arrangements
1. Worker’s right to form union
2. Work committees to harmonize labour relation
3. Employment of foreign citizens
4. Right to strike and lockout, etc.
5. Tribunal to settle disputes
2. Bonus Act, 1974: This Act maintains the provisions of bonus to employees and workers. It specifies:
1. The bonus shall not exceed 10% of the net profit.
2. The amount of bonus to an individual will depend on the amount of monthly salaries and wages paid, but shall not exceed 6 months wages and salaries.
3. Labour Act, 1992 (as amended in 1998): This Act replaced the NFFWA of 1959. The main provisions of this act related to:
1. Employment and job security, firing of worker.
2. Working hours.
3. Remuneration and yearly pay increment
4. Health and security
5. Welfare provisions
6. Settlement of labour disputes and conflicts
7. Rule of conduct
4. Trade Union Act, 1993: The main provisions of this Act are:
1. It provides legal basis for organizing the trade union. It demands a minimum 10 workers to form a union and should have at least 25% of the total worker of the organization with it.
2. It specifies objectives of a trade union as:
1. Improve working conditions and work for socio-economic progress of workers.
2. Maintain good relations with management
3. Increase productivity and assist in organization’s development.
4. Make provisions for recognition of authorized trade union for presenting demands to management.
5. The provision has been made for Registrar of Trade Unions.
6. Organization level trade unions can form Trade Union Association (TUA/, TUA then can form Trade Union Federation (TUF). The framework for labour legislation in Nepal is still in an early stages. Policies, laws and institutions are still evolving.
5. Child Labour Act, 2000 (CL Act): The Act has following provision in it:
1. Children below 16 years have been defined as child.
2. Children below 14 years must not be employed as labour.
3. Children must not be employed in any hazardous jobs as specified. For example: Construction sites, public transport and engineering project. Tourist related jobs, carpet dyeing, beer and liquor, plastic, glass, insecticides etc.
1. Permission should be taken from the authorized government agency for employment of child.
2. Child labour must not be used from 6 pm in the evening to 6 am in the morning.
3. Child labour must not be employed for more than 6 hours per pay or 36 hours per week.
4. There should be no discrimination in wage payment for child labour.
5. Labour Department has power to inspect organizations employing child labour.

Punishment ranging from three months imprisonment or Rs. 10,000 fine or both are provided for violation of the law.

  SOME RELATED LINKS  

• Concept of Labour Relation

• Causes of Labour Disputes in Nepalese Organization

• Market Economy : Concept, Features and Functions of Market Economy

• Collective Bargaining

• Contemporary Issues in Labour Relations in Nepal

Concept and Factors Contributed for the Development of HRM

Concept of HRM

Human resource management is concerned with people dimension in organization. It focuses on management of human energy and capabilities to improve productivity. People possessing physical strength and energy alone are not human resource. People become human resource only when they contribute their competencies. Competencies are the combination of knowledge, skill, attitude, experience etc. As we know management is the art of getting things done through other people. Managers perform the function of planning, organizing, staffing, coordinating, directing etc. The staffing function is concerned with human resource management.

According to Decenzo and Robbins, “Human resource management is a process consisting of four functions acquisition, development, motivation and maintenance.”

According to Paul G. Hastings, “Human resource management is that aspect of management having as its goal the effective utilization of the labour resources of an organization.”
Similarly, Oliver Sheldon defines, “Human resource management is a part of the management process, which is primarily concerned with human constituents of an organization.”

Hence, in conclusion human resource management is very crucial for the success of any organization. Human beings are a resource to an organization but it is the living resource which cannot be equated with the other resources which are unanimated. Human resources add to the value while other resources add to the cost. All the firms buy the same material and machines but it is the people in the organization who built it and makes differences in the ultimate product. The human being never reaches an ultimate value throughout his lifetime at work which other resources reach to an ultimate value it starts producing. Thus, the management of human resource is very complicated and challenging task for those who are interested with the successful running of an organization and this implies considerable knowledge by various aspects of human resource management. The human resource management function or personnel function should be lightening rod attracting the tension and human conflict, which are inevitable in an organization and community.

Factors contributed for the Development of HRM

The phrase “human resource management” is not new. It was used as long as 40 years ago, but at that time, it was interchangeable with personnel management. The development of HRM has gone through different stages. Many factors have contributed for the development of human resource management. They are follows:

1. Industrial revolution stage: Industrial revolution brought the three major developments.

• The development of machinery
• The linkage of human power to machine
• The establishment of factories.

Due to the industrial revolution, people specialized in their job. Workers organized themselves into trade unions to achieve better conditions of employment. Labour laws were enacted to protect the interest of worker. Collective bargaining between labour and management was used to settle industrial disputes. Robert Owen reduced working hours and built house and schools for workers. After industrial revolution, problems related to human resources led towards taking care of employees. It can be considered as the first stage of human resources development.

2. Scientific management movement stages: This stage aimed at improving worker efficiency through proper selection, training and compensation. F. W. Taylor suggested the following tips:

• Individuals who are selected for the jobs should be physically and mentally to the demand of jobs.
• Employees should not be called upon to work at the time that would be detrimental to their health.
• Education and development of the workers, properly trained and developed workers produced best.
• Incentive system to “earn more be performing more” properly paid workers.
• Specialization through division of work to achieve efficiency.

3. Industrial psychology: An employee having positive attitude can faster industrial efficiency. Efficiency can be increased by testing intelligence test of the employee. Thus to increase the efficiency, human psychology should be studied through different test and should developed a good interest, and positive attitude on the work in them.

4. The human relation movement stage: This stage focuses people element in personnel management. Hawthorne studies serve as the beginning of human relation movement. It advocates the following personnel management aspects.

• Participative management and teamwork
• Importance of social setting and group dynamics in employee productivity.
• Need for improved communication among managers and employees.

5. The period of labour legislation: To control, direct and motivate the labour, there should be strong need of some kinds of legislation. The civil right act was passed in 1964. Discrimination law, pension laws, health and safety laws, federal regulatory agencies. And their interpretive guidelines and cowed ruling affected virtually every aspect of employment.

6. Organizational development movement stage: The organization development (OD) movement of the 1960s and 1970s was closely associated with the concept of behavioral science. The OD approach concentrates on overall organizational effectiveness, especially with regard to process how people behave in situation where they are constantly interacting with one another. Team development and management of change were often important features of an OD programme. Particular attention was paid to the analysis of group processes and OD consultants evolved methods of analyzing organization behavior, especially within and between group and of solving conflict problems.

In particular, Schein (1969) developed methodologies for process consulting. This involves helping clients to generate information, which they can understand about their projects and problems, and creating conditions for them to won the solutions to their problems by gaining internal commitment to their choice.