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The Factors Impacting the Long Term Settlements and Its Counter Impact on the Industries

DOI: 10.4236/tel.2019.94053, PP. 801-815

Keywords: Long Term Settlements, Negotiation, Collective Bargaining, Social Dialogue

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Abstract:

Purpose of the Study: This paper aims to study the impact of Long Term Settlements, (LTS) which are considered to be instrumental in maintaining long term harmonious industrial relations in the organizations, by the Actors of Industrial Relations. The critical role played by such an instrument had been accepted in the available literature on the subject. But on its control mechanisms of maintaining long term harmonious industrial relations, the existing literature provides a limited insight. Data/Methodology: This study utilized a qualitative methodology and makes use of the inputs received from the respondents interviewed on the impacts of LTS in the emerging industrial context and industrial relations dynamics. The data collected from the interview were outcome of the experience in dealing in the organizational contexts where an LTS is in execution between the Management and the Trade union. Findings: In LTS, the parties get involve in “social dialogue” (both the trade union and the management) while having their respective interest in the LTS which helps in generating alternatives consistent with their interests. The LTS are social process of emerging to mutually acceptable norms on the payment of wages to the workers by the management for specific return on business, which is regulated under a dynamic context. The social dialogue and collective bargaining are the instruments to LTS both for the Management and the trade union. This study is very practical in nature, and it provides important insight on the dynamics of LTS as an outcome of
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