LABOR DISPUTES: TYPES, RESOLUTION TECHNIQUES, EXAMPLES - JOB - 2024

The labor disputes are discussions between an employer and its employees regarding labor clauses, such as conditions of employment, fringe benefits, working hours and wages to be negotiated during collective bargaining or the implementation of the terms and agreed.

Labor disputes then occur, for example, when a union contract that protects a group of employees is about to expire and the parties do not agree to the terms of a new one.

Usually wages, health insurance, and other financial issues are at the center of these conflicts, but sometimes they are about other issues, such as seniority, hours of work, sick leave, overtime, etc.

On the other hand, another form of labor disputes are formal claims. They are objections that employees make about the way an employer handles an existing contract. A typical claim accuses the employer of doing something that violates the employment contract, such as firing an employee without "just cause."

The union and the employer often negotiate until the claim is resolved, either because the union withdraws the claim, the management accepts it, or a mutual compromise is made.

Claims that cannot be resolved through negotiation generally go to arbitration for a final decision. Some contracts also use mediation.

Types

Union recognition

A labor dispute occurs when a union sues an employer, explaining that the employees have appointed the union as their representative for collective bargaining, but the employer refuses to acknowledge it.

The employer may argue that the union is not authorized to speak on behalf of the employees.

Contract negotiations

Conflicts in contract negotiations have to do with the basic framework by which the relationship between an employer and its employees is governed. Most industrial strikes are the consequence of this type of dispute.

Within this type do not only enter conflicts for the negotiation of an agreement or for any renewal of such an agreement, but also conflicts related to provisions of the contract that are subject to periodic review and renegotiation.

For example, the contract may be in force, but it may indicate that salaries are reviewed by the parties every six months, or when certain changes in the inflation index occur.

Interpretation of the contract

From a resolution standpoint, in many ways it is the easiest type of conflict to deal with.

It is increasingly recognized that it can be resolved through procedures established by the parties themselves. In many contracts, a provision is made for their final resolution to be by arbitration.

Strike

A strike is the temporary withdrawal from the services of employees, contrary to an employment contract. It is a formal form of labor dispute that is generally organized by a union.

During strikes, unions ensure that there are no alternative means of obtaining services that employees refuse to provide. Strikes generally last until management resolves the dissatisfaction problem that caused them.

Work to regulation

It is another form of formal labor dispute. It occurs when workers work strictly according to the legal terms of their contract. They deliberately refuse to use their initiative and act rigidly, like programmed machines.

Since regulation work does not go against the formal terms of the contract, it rarely carries a penalty. However, it strongly slows down the progress of work.

Absenteeism

It is a form of informal labor dispute. It occurs when employees refuse to report to their workplace.

Absenteeism is not always a sign of labor conflict, as employees may stop reporting for work due to injury or illness, for example.

Sabotage

It is another form of informal labor dispute, it occurs when employees deliberately damage the production or reputation of their organization.

This could take the form of slow production, temporarily disabling machinery, directly destroying the organization's property, or smearing the organization.

Resolution techniques

Discussion and negotiation

The first step in seeking to resolve a labor dispute is discussion and negotiation between the parties involved, without the assistance of an external agent.

Discussion and negotiation regarding the clauses of a contract is part of the process in which both parties (workers and management) state their points of view.

The success with which this technique is used in the resolution of labor disputes depends largely on the will and desire of the parties involved to achieve stability in labor relations without resorting to external agents.

Therefore, the degree to which it is used successfully can be considered an indicator of the maturity of the relationship between the parties.

Conciliation and mediation

Conciliation denotes the intervention of an external party, which tries to unite the adversaries and encourages them to resolve the conflict.

The conciliator concentrates his powers of persuasion on only one of the parties. Mediation suggests a more positive and affirmative role for the interceding third party, contemplating their dealings with both contestants.

The conciliator or mediator can be used as an intermediary so that the parties can reveal facts or positions that they are not willing to reveal directly to the opposing party.

Sometimes the conciliator or mediator can provide technical data and draw on their experience in the industry. Additionally, you can make suggestions based on your experience in solving similar disputes.

Voluntary arbitration

It means that the parties voluntarily bring the conflict to a third party requesting that it resolve it, according to the terms of a "program" signed by the parties. They agree that the arbitrator's decision will be binding on both parties.

Arbitration is judicial in nature, unlike conciliation and mediation, which are based on compromise and mutual concessions. The referee is a judge. By agreement, the parties define their jurisdiction and the issues that will be presented to them.

This resolution technique is used more frequently in the type of labor dispute of contract interpretation.

Mandatory arbitration

Binding arbitration is required when disputes that could not be otherwise resolved must be referred to a third party in order to achieve a final and binding determination.

In conflicts for union recognition, compulsory arbitration has been established for the cases included in the law.

Judicial action

Courts are often urged to resolve labor disputes. Such proposals involve mandatory arbitration.

However, apart from the proposals to expand the functions of the courts in this field, the courts play an important role in labor disputes.

For example, they can be consulted regarding the application of negotiated collective agreements, they can be called to determine the validity of arbitration awards, among other things.

Examples

Wal-Mart case

Wal-Mart has been very profitable in the past, but one of the biggest threats to its future success has been the hostile opinions that many have had towards the company.

Recently, more than one million of its current and retired employees sued the company for sex discrimination. Additionally, Wal-Mart has been taking greater controls over its health insurance.

Wal-Mart defends its policies by pointing out that health insurance is a national problem. A company spokesman said, "You can't solve for 1.2 million Wal-Mart associates if you can't solve for the country."

Wal-Mart argues that it is unfair for the government to expect companies to bear the burden of the cost of insurance.

Still, these attacks have led the company to spend a lot of money to improve its image. They have made everything from television commercials showing satisfied workers to large donations to public radio.

If Wal-Mart can't improve its image, it may start to lose money. Union workers have exploited this weakness to picket Wal-Mart.

A campaign like this has helped workers gain more bargaining power in this labor dispute and with other corporations.

Nike case

In 1994, Nike received a lot of bad reviews for using sweatshops in Indonesia to reduce its labor costs. Despite the public outcry, Nike refused to change its policies.

Finally, after four years of constant pressure, Nike CEO Phil Knight faced the charges. In May 1998, he called a press conference in Washington to directly address the criticism.

Knight began by saying that he had been portrayed as a "corporate con man, the perfect villain for these times." He acknowledged that his shoes "had become synonymous with slave wages, forced overtime and arbitrary abuse."

Then, to great fanfare, he unveiled a plan to improve working conditions in Asia. Knight's plan contained some significant changes to his employment policies. He promised to improve security within his factories and provide training for some workers.

He also promised not to hire anyone under the age of eighteen and to obey Indonesian minimum wage laws. However, his critics were not completely satisfied.

The Nike case shows that public protests can force large corporations to negotiate with their workers.

References

1. Cate Malek (2005). Labor Conflicts: The Case of Two Supermarket Strikes. Beyond Intractability. Taken from: beyondintractability.org.
2. Wikipedia, the free encyclopedia (2018). Labor dispute. Taken from: en.wikipedia.org.
3. Chris Honeyman (2013). Labor-Management Conflict. Beyond Intractability. beyondintractability.org.
4. Paul H. Sanders (2018). Types of Labor Disputes and Approaches to their Settlement. Scholarship. Taken from: scholarship.law.duke.edu.
5. David Smith (2018). Types of Industrial Conflict. Bizfluent. Taken from: bizfluent.com.