Question

Why is a grievance procedure an important part of the contract administration process? What are the pro's and con's of an organization having a grievance procedure as part of the labor contract?

Answer 1

1st part:

In the contract administration process, the grievance is the important part and it is necessary to keep in the front line for escalating any issues related to contract matters.

For example:

In the contract administration process, sometimes it happens that the employer hires the candidate for a specific time limit in terms of years or months. After fulfillment of the time limit, the employees are no more granted on employment. During the tenure of the contract, it is seen that the employers force the employees to leave the job by putting invalid reasons like finishing of the project from the client side, lack of funds while paying wages and bring irrelevant clauses to terminate the contracts.

On such above scenarios, the grievance is required to initiate from the employee side to the employers for the justice as before the ending of the contracts no employer can release any termination under such above conditions. Through the grievance procedure in the contract administration, the employees will get justice and can fight with the situation so that the employment with the organization until the fulfillment of the contract can be sustained.   

2nd part:

Pros:

In an organization, there are several positive aspects to have grievance procedures as part of the labor contract.

As per the centralized process by the organization, contract laborers are entitled to stay with the organization up to the specified time limit. The middle level or decentralized management undertakes illogical rules to terminate a few laborers as the project conduction gets partly completed, with less number of people the middle-level management held’s the rest of the work. Taking the help of grievance procedures, the matter reaches to the centralized team and the defined process are being instructed to follow as per the rules that benefit both labor and high-rise the reputation of the organization.

Cons:

Sometimes due to the finishing of the project before the time limit or the business needs are likely required to be concentrated on other areas, the employers try to break the contract with the laborers. This creates a negative reputation for the organization, the laborers seek to lodge grievance that helps them to ease the situation, as it gives justice to fulfill the contract period with the organization.