Understanding Settlement Analysis in Industrial Relations
A settlement is a peaceful means of resolving workers' demands on various terms of employment and conditions of service through negotiation and agreement between management and the union. The objective of a settlement is to resolve an industrial dispute and ensure harmony in industrial relations within the establishment, consequently enhancing employee productivity. All settlements will have financial implications, and each is based on the spirit of 'give and take'. You may need to analyze the settlements with these factors in mind. Therefore, a suggested structure for analysis can be:
1) What is the general nature of demands that were the subject matter of settlements? Are they related to wage revision, bonuses, leave and holidays, medical facilities, or disciplinary issues like suspension and dismissals, etc.? You can classify the demands as financial, disciplinary, and welfare-related. This analysis may help management understand the nature of demands.
2) How many of the demands are repetitive in nature, and what are the reasons for them? This may help management understand the financial implications of such recurring demands and the reasons for them, so it can take a view about such demands in the future.
3) What is the financial implication of each settlement for the company?
4) Since a settlement is based on the spirit of "give and take," what are the items on which the union has agreed to meet the demands of management? Have they met their obligations? Is there any increase in productivity or production after each settlement, or improvement in customer service, or more business, etc.?
5) Did each settlement ensure peaceful industrial relations or lead to more demands? Were there any agitations after each settlement? If so, why? Or did it lead to more business and better customer service or reduced absenteeism, etc.?
You can build a structure based on your study. Hope this helps.
Regards,
B. Saikumar
In-House HR & IR Advisor