Objectives
Object of this lesson is to initiate in to industrial Relations Management
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In this we
a) define what is industry
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b) What is disputec) And discuss certain key definitions
Structure
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1.1
Introduction
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1.2Causes of Industrial Dispute
1.3
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Suggestion for Improvements
1.4
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Industrial Relation Meanings, Discord, Conflict1.5
Definition of Related terms in 1.R
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1.6
Related Questions
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1.7Summary
1.8
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Key Answers / Suggestions.
1.1
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IntroductionIn simple terms Industrial Relations deals with the worker employee relation in
any industry Government has attempted to make Industrial Relations more
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health the by enacting Industrial Disputes Act 1947. to solve the dispute and to
reduce the retency of dispute. This in turn improves the relations.
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What is Industry? Where we want to have better relations. Industry means anysystematic activity carried on by co operation between an employer and his
employee whether such workmen are employed by such employer directly or by
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or through any agency including a contractor for the production supply or
distribution of goods or sources with a overview to satisfy human want or
wishes (not being wants or wishes which are merely spritual or religious in
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nature) whether or not (i) any capital has been invested for the purpose of
carrying on such activity or (ii) such activity is carried on with a motive to make
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any gain or profit and includes any activity relating to the promotion of sales orbusiness or both carried on by an establishment but does not include.
i)
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Normal Agriculture operations
ii)
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Hospital, Dispensaries.iii)
Educational, Scientific Research Training Institution,
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iv)
Charitable Philanthropic Service
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v)Khadi Village Industries
vi)
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Domestic Services etc.]
It is an activity systematuatly or habitually undertaken a) for the production
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or distribution of goods, or for rendering material service to community atlarge, or part of such community with the help of employees in an
undertaking
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2. Such activity generally includes the co-operation of employer and
employees
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3. The object is the satisfaction of material human needs4. It must he arranged or organized in a manner in which trade or business is
generally arranged or organised
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It must not be casual nor must it be for ourself not for pleasure.
Thus the very industry revolves around good industrial relations.
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Industrial RelationsIt is seen as a co operation between employer and employee, it is done with
discipline (ii) done in organized manner and not casual and it gives
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satisfaction of needs`.
Industrial Dispute : As per section 2 (K) of industrial dispute or difference
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between employers and employees employers and employers or employeesand employees which is connected with the employment or non employment
or the terms of employment or with the condition of labour of any person.
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1) There must be a dispute or difference the dispute or difference must bebetween employers and employees employee and employees, employers
and employers.
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2) The dispute must be connected with employment or non employment or
terms of employment or with the conditions of labour of any person.
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The dispute which has resulted in strained relations is a controversy in whichthe workman is directly or substantially interested. It must also be a
grievance felt by the workman which the employer is in a position to
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remedy. The existence of a grievance is necessary and it must be
communicated to the employer.
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The term industrial dispute connotes a real and substancial difference havingsome elements of persistency and continuity, till resolved and likely, if not,
adjusted to endanger the industrial peace of the undertaking or the community.
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When the parties are at variance and the dispute or difference is connected with
the employment or non employment or terms of employment or with the
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condition of labour. There comes in to existence an industrial dispute1.3
General causes of industrial disputes strains which results in bad industrial
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relations are.
1. Close mindedness of employers and employees one thinking to
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extract maximum work with minimum remuneration, otherthinking to avoid work and get more enhancement in pay and
wages.
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2. Irrational wage, wage system and structure not mutually
acceptable
3. Poor working environment, low presence of safety, hygiene
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conditions vitiated atmosphere for smooth working
4. Poor human relations, and lack of dexterity on the part of
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management personnel5. Lack of control over the situations erosion of discipline, which
rebounds.
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6. Introduction of new technology or automation mechanization,
Computerization etc. without proper consultations, preparations
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and discussion with workers and creating climate.7. Nepotism, unequal work loads, disproportionate wage, and
responsibilities.
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8. Adoption of unfair labour practices either by employer or
employees and unions.
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9. Unjustifiable profit sharing, and not considering workers as a co-shares of the gains of the industry.
10. Frequent union rivalries over membership foisting up of fake
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unions.
11. Strikes lock out, lay off, and resulting retrenchment due to high
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handedness on the part of the concerned.12. Throwing away the agreements and arrived settlements
13. Militancy of the unions
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14. Attitude of government and political parties who may indirectly
control some the unions for their own gains or to get a hold on
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the industry.1.4 Few suggestions for the improvement of industrial relations and reduce
disputes
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1. Trade unions should be strengthened democratically so that they can
understand and toe with the main stream of the national industrial activities.
They can drop the some how survive attitude by promising impossibles and
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consequent perpetual strain.
2. Employers should have more transparency in their dealings with workers to
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build confidence and have progressive out look.3. They should have open minded flexible collective Bargaining.
4. Workers should be allowed to participate in the management through forums,
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committees and councils,
5. Sound labour policy, planning
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6. Proper leadership and communication7. Enforcement of discipline
8. Try to have union with in workers fold.
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9. Equity in distribution of wealth by acknowledging workers as team members
1.5
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This has always remained as a disputable topic whether industrial relations issame as personal relation, human relation or labour management employer
employee or union and management relations. A discussion on industrial
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relation considers all these as almost same.
Definition of Industrial Relations
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As per Dale Yoder Industrial Relations refers to the relationship betweenmanagement and employees, or employees and their organization, that arise out
of employment.
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Teed and Metcalfe observed Industrial Relations are the composite approach of
the attitudes and approaches of the employers and employees towards each other
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with regard to planning, Supervision, direction and unification of the activitiesof a set up with less friction and more co-operation with mutual effort for others
well-being.
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The essences of good industrial relation lies in the bringing up of good labour
relations which gives a forum to understand each other (employer, employee)
properly. Creates co-operative thinking and working to achieve the goal of the
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organization. A good Industrial Relations increases the morale of employers and
goods them to give their maximum, each think of their mutual interest which
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paves way for introduction of new methods, developments and leading toadoption of modern technology. This progressive ways when designed with their
mutual interest and consent develops many incentive propositions, effective
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participators forum is created in management. Profit are shared, workers get
their dues in the organization leading to job satisfaction-which is needed for
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good relations. Good industrial relation increase production, improves quality ofwork and products efficiency of workers increased. Cost of production lowered.
Bad Industrial Relations leads to industrial unrest industrial dispute and a
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downward trend to industries workers and the nation. Of course the first hit will
be on the employers, who has invested.
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Industrial worker and the employers normally don`t think, feel or act inprecisely the same way and because each starts from a different point conflict of
some fort can mover be eliminated completely.
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The main reasons for industrial discard, can be due to
1. Misunderstanding or differences in perception
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2. Lack of co operation real or imagined3. Problems with authority
4. Future to comply with policies or stick to plans.
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5. His Agreements over ways to achieve agreed goals.
Conflict can have some positive aspects also, they may give positive results like
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1. Reveal new aspect of an existing issue2. Improve long term communication between the individuals concerned
3. Always previously stifled emotions to be released
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1.6 Definition of some important terms used in Industrial Relations
Arbitrator ? Neutral person to decide on common issue, includes an umpire
Average pay ? average wages payable to a workman
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(a) In case of monthly paid workman in the three complete calendar months, in
the case of weekly paid, in the four complete weeks, in the case of daily paid
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workman in the 12 full working days precedingAward: An interim or a final determination of any industrial distribute or of any
question relating there to by any labour (court), industrial Tribunal or national
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Tribunal and includes an arbitration award
Conciliation officer: Means conciliation officer appointed under (1) Act to make
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conciliatory effort between employer and employees to bring amity.Labour Court ? Means a labour court constituted under (1.D) Act to adjudiciate
over industrial dispute cases etc.
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Public utility Service ? (I) Any Railway service or any transport service for
carriage of passenger or goods by air (2) any service in major port to clock.
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Postal & TelegraphIndustrial establishments on the working of which the safety of the
establishments, or the workmen employed there in depends.
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Industries which supply power light, water to public
Public conservancy or sanitation.
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Few others indicated in Schedules.Settlement :- means a settlement arranged or in the course of conciliation
proceedings and include a written agreement between the employer and
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workmen arrived at otherwise than in the course of conciliation proceeding
where such agreement has been signed by the parties there to in such manner as
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may be prescribed and a copy there of has been sent to an officer authorized inthis behalf by the appropriate government and the conciliation officer
It means an adjustment arrived at in the course of conciliation proceeding before
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a conciliation officer or before Board of conciliation. It also includes a written
agreement between the employer and the workmen otherwise than in the
conciliation proceedings. In such a case the agreement must be signed by the
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parties in the prescribed manner and a copy of which must be sent to an officer
authorized in this behalf by the appropriate government and the conciliation
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officer. Thus the settlement indicates the agreement arrived at either in theconciliation proceedings or otherwise between employer and the workmen.
Unfair labour practice. Generally to interfere with, restrain from, join or assist a
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trade union or to engage in concerted activities for the purpose of collective
bargaining or other mutual aid or protection to establish employer sponsored
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trade union of workmen, to discharge or dismiss workmen by way ofvictimisation, to recruit workmen during a strike which is not an illegal strike
etc.
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Details of above are appended.
Wages
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All remuneration capable of being expressed in terms of money which would ifthe terms of employment expressed or implied, were fulfilled, be payable to a
workman in respect of his employment or of work done in such employment ?
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includes
1. Allowances
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2. House revert allowance3. Traveling concession
4. Commission for sale or business does not include bonus, gratuity
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provident fund etc.
Workman
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Any person employed in an industry to do any manual and unskilled, skilled,technical, operational Clerical or supervisory work for hire or reward whether
the terms of employment be express or implied, and for the purpose of any
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proceeding under 1.D Act in relation to q 1.D includes any such person who has
been dismissed discharged or retrenchment in connection with or as a
consequence of that dispute or whose dismissal discharge or retrenchment has
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led that dispute, but does not include ? Navy, police, managerial, administrative
position holders or working with wages exceeding one thousand six hundred
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rupees per monthQuestions
1. Define industrial relations?
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2. Explain industrial dispute?
3. What is unfair labour practice?
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4. Give suggestion for improvement of Industrial Relations.5. What is Industrial Relations personal relations?
1.9
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Summary
In this chapter we see, what is dispute in industrial atmosphere? We come across
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different definitions connected with Industrial Relations, 1.D etc We study thereason for industrial conflict and try to find a solution
1.9 Suggestion
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In this we have to go through different definitions given and relate it at various
levels. 1.R and 1.D is explained fully and we have to go through these several
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points given to understand rest of the chapter.Concept and determinants of Industrial relations and its position in India
2.1 Objectives
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In this we try to find the concept of Industrial Relations and its determinants
We discuss the parties for better Industrial Relations. Some of the major causes
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for industrial unrest and discuss the sequel to unrest and its manifestations.2.2 Introduction
2.3.1 Concept of Industrial Relations
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2.3.2 Determinants of Industrial Relations
2.3.3 Parties to Industrial Relations, IR in India
2.3.4 Causes of industrial unrest, consequences of Stike Lockout lay-off
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retrenchment.
2.4 Self Assessment Questions
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2.5 Summary2.6 Key Answers.
Concept and determinates of Industrial Relations
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2.2 Introduction
Industrial Relations Definition
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It is concerned with the relationships between management and workers and therole of regulatory machanism in resolving any industrial dispute.
The relation between workers and management have undergone Himalayan
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changes in our country there had been a system of king and his subjects, all
should work to improve the coffers of the king. Later Zamindars came and
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workers were at their mercy ? some time bonded also, later with the formationof East India company and British Rule a heart less Hire and fire system was
established Industrial workers were no man`s child neither the employers nor
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government cared for them, there were no union also. Gradually enlightened
leaders came in like, Gokale, MK Gandhi Roy, Tilak etc felt the need for
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worker`s union. Their relentless efforts forced both governments and theemployers to think of workers lot small unions were formed, government
enacted rules like Trade union Act 1926. Industrial disputes Act etc.
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The workers began to realise their status and they were awakened.
A sort of uprighting workers and reluctant management has started functioning.
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Soon workers motivated by different Industrial Acts enacted by parliamentsupporting them, and looking after their health, welfare, safety, social security
etc. Got emboldened to raise their voice. At the same time management also has
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started improving, more and more industries were nationalised, public sector
came in to existence at number of places, textile insurance, banks transport etc.
With increasing number of public sectors, workers life style changed, assured
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job arrogated unions, appeasing management, administration with less account
ability ? workers had their field day. Public sectors started doing more of social
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service than business and profit doling out public exchequer.Slowly this trend is changing with the government`s reversal policy,
decentralization Privatisation etc. Compelled by universal need to compete in
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business, activated by world. Trade organisation global economy etc
government turned towards foreign investments and industrial set ups by foreign
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investors. Stringency of some of the laws are disappearing monopoliesRestrictive Trade Practice, F.E.R.A etc consequently issues like productivity
linking productivity with emoluments are also coming into fore front. With new
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companies coming in, formation of merry unions have come to a stand still, no
union worth the name is there in 1.T sector in our Tradial Park, Chip`s World
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etc. Job security is diminishing, legislations, are not coming as before becausewe have to live in a competitive world, of industries where down sizing out
sourcing productivity, etc has become the watch word`.
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2.3.1 Concepts determinates of Industrial Relations
From the words of TISCO management. The welfare of the labouring classes
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must be one of the first cares of every employer, Any betterment of theirconditions must proceed more from the employers downwards rather than be
forced up by demands from below since labour, contented, well housed, well fed
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and generally well looked after, is not only an asset and advantages to the
employer but serves to raise the standard of industry and labour in the country
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It is sheer injustice on the part of any management to take advantage of the poor,helpless conditions of workers and exploit them with more work extractions and
less insufficient payment. Workers illiteracy and lack and training made them to
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work in unhealthy conditions for very low compensation. At this Juncture
industrial relations need was felt to protect workers rights, wages etc. At the
same time industrial relations cannot remain producing the rights of one side
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only in the industry they have to protect the rights of employers also. As such
1R has declared through act, what are illegal strikes and various standing orders
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to protect the dignity of supervisors, managers and of course employers.The main concept of industrial relations are
1. preservation and promotion of economic interest of workers along with
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social interest
2. Peace and productivity goes hand in hand hence. attempt to reduce
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industrial dispute and promote peace is a necessity.3. Employer employee relation should be made healthy and growing
4. Running of the industry, day to day work should be made more
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democratic with increasing workers participation
5. Producing products at a very competitive price so that country can
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promote export and our economy can improve.6. Bringing mental revolution in management.
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2.3.2
The determinants of good industrial relation can be promoted
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1. Measures for securing and preserving unity and better relations betweenworkers and employers
2. Arrange to probe and settle industrial dispute between employer
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employee or employer and employer or employee and employee, give
proper representation to workers union and industrial federations of
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employers.3. Both the ultimate weapons of employers and employee ? strike and lock
out should be prevented at any cost. Proper relief to workers after a lock
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out` or lay off` through government agencies
4. Workers participation at all levels and encourage give and take principle
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in collective Bargaining.Industrial relation requires a study regarding I) conditions of work (ii)
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compensation paid for the sweat the worker makes iii) permanency of the jobassured continuance of work or otherwise.
The parties to Industrial Relations are
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1) Workers and their unions, the intelligence level knowledge of
workers, back-ground of worker leaders, real or boghus their
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linkage with political unions, are to be considered for theeffective relations.
2) Nature of employment and employers, whether benevolent,
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interested in workers or aiming to get as much profit as possible
squeezing workers their attitude plays vital role in maintaining
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better relations. Whether they want to have team, and growth oftheir team as a whole or just hire and fire system.
3) Position of government, political will whether opportunitie
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favouring employers or interested in workers, are to be seen.
Their interest in workers can be seen through their actions in
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creating Laws for labour welfare and implementing themeffectively.
2.3.3 Industrial relations development can be based
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1) On a spirit of team development team building workers are to be
seen as partners in the industry for national development thro
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industrial development, most of the laws and government`sdirectives wants to enforce workers participation joint councils,
collective improvements work etc.
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2) In the above method it is Bipartite, partite there is yet another
arrangement of tripartite nature; introduction acceptance and
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bringing up of unions.In the first case the welfare / personal man is the link between employers and
employee. In this type of 1.R approach the unions are encouraged as a unifying
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force and to make workers understand the policies ? from a different position.The work becomes easier if unions are working with spirit of development and
understanding. In this type of industrial Relation approach unions are having
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upper hand. Some times they make workers as pawn. only workers interest is
put on the front, for getting the status of employers. Pressure tactics are adopted,
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some time leading to strike to extract maximum from employer, this attitudeswhich may push towards terror tactics may not yield desired results. Quite likely
entrepreneurs may start shrinking, existence of such industries may be
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jeoparadised. an unwanted situation. Similarly the employers roaming with a
lock` in his hand also will not contribute for better relations.
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It is the mutual understanding and appreciation only will give better results.2.3.4 Industrial Relations in India
1.R has undergone a wide change in Indian scererio, during the end of british
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period in India an awakening in working class was seen. The world wars forced
the employers to become more friendly with the workers, to see un interrupted
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production is ensured during war time. Out of their self interest they have tobecome benevolent, At the same time leaders also came up, Mr. Roy Tilak
Mahatma Gandhi and others were instrumental to organise workers union, and
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also force government to frame labour laws, to improve the lot of workers.
In 1929 Industrial dispute Act was enacted later in 1947 it became industrial
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dispute, act where in machineries to solve industrial dispute were indicated.(1)
The Directive principles of state policy, as enshrined in our
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constitution stipulate that the state should endevour to improve
the workers conditions, working conditions, and also productivity
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of industries which will improve wealth of nations.(2)
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Several acts are enacted by parliament both before and afterindependence which were focusing on workers interests, welfare
health etc. The Tric Act` Factory, Act. Industrial Dispute Act;
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Trade union Act gives major direction to achieve the
constitutional directives.
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(3)
Besides this, wages Act 1948, Bonus Act 1965, Grativity Act
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1972, Equal remuneration Act 1975, are some of the acts in the
above direction.
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(4)
In 1972 National commission on labour, recommended setting up
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a permanent industrial Relations commission this was not well
received by government.
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(5)
National conference in 1982 made several recommendations
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b) Emphasis on formation of permanent industrial
Relations commission
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c) Stringent action on contravention of a mutually agreedcode of conduct
d) A check off system was prescribed where in by ballot
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election, how many are real members of a union how
many, dual, boghus etc could come to light. This did not
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find well with unions but some unions have arranged fordeduction of their subscription through employers pay
counter to some extent the check of system is working.
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Causes of industrial unrest in India can be classified mainly under four heads
they are
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1) Financial Aspectsa) Demand for increase of wages, salaries and other perks. workers
demand goes on increasing with the increase in cost of living
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b) Demand for more perks, and fringe benefits. Issue of bonus also
has become a contentious one, even though Bonus Act has come
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fixing minimum rate payable as 81/3% of their total salary inspiteof profit or loss incurred by the industry.
c) Incentives festivals allowances, concessions etc requires a hike
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every now and then, workers compare these benefits with other
industries and demand them ? without comparing the capacity of
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the industry where they are working.2) Non financial aspects
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a) Working hours, rest hours, Traveling hours are source of disputes. If
houses are provided some section of workers want to include travel time
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also as working hours.b) Introduction of machines, computers modernisation, automation ? In
effect any act of management which may result in economy in man
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power is resisted
c) More facilities like free meals free group travel etc are sought every now
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and then3) Administrators Causes
a) Non implementation of agreements awards and other local settlements ?
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with full sprit
b) stifling with recognition of labour unions though registered,
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c) Attempt to weaken existing trade unions and trying to foist fake unionsd) Un healthy working conditions
e) Lack of skill on the part of leaders supervisors
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f) Disproportionate works loads, favoritismg) Victimisation, nepotism attitude of management in recruitment,
promotion, transfer etc
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h) Instead of re deployment or skill improvement easier way of
retrenchment forced voluntary retirement schemes (C.R.S) are adopted.
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4) Government and political pressures
a) Industrial unions affiliating with political unions which are in power,
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resulting in frequent shift of loyalty and resultant unrest
b) Politician influencing workers group closes examples is the Nalco ?
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taken over by Sterlite, the state government supported (propped up)strike at chattisgrah state against Nalco, for months together resulting in
total stoppage of the industry for some time.
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c) Some time unions, workers strike against mergers, acquisition, taken
over, disinvestments policies, of government and private sectors.
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5.Other causes of strained relations.
a. Refusal to have workers participation in the running of
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the industry.
b. Non adherence to laid out standing orders` grievances
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proceduresc. Refusal to have free frank, and transparent collective
bargaining.
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d) Sympathetic strike ? a show of readership to workers of neighboring
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industries, and conducting a token strike when they are in full strike.This may cause internal bitterness.
Consequences of strained Industrial relations
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1. May result in go slow tactics, Strike, lock out etc.
2. Industrial production and productivity may be affected, growth of
industries will be stunted
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3. May result in recited atmosphere, law and order situation will
deteriorate
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4. Employer, Management, labour relations will be affected mutualfaith and team spirit will vanish.
5. Absence of mutual co operation affects, participation forums and
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Bargaining Plot forms.
6. Government also will loose revenue, and may need to spend
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more to keep law and order around the industry7. National income, per capital income will go order
8. Will result in loss in earnings of workers with added suffering.
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9. The industries also will suffer loss, and it is a loss to common
consumers also.
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The manifestation of industrial strife, disputes come in the form of strike
lockout, layoff and retrenchment.
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To maintain good Industrial Relations we should know what are these weapons
in the hands of employers
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and workers and to diffuse it. Our law markers in India have enacted about thesemanifestation of disputes
Strike: Section 2 (q)
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Means a cessation of work by a body of persons employed in any industry acting
in combination or a concerted refusal or a refusal under a common
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understanding of any number of persons who are or have been so employed tocontinue to work or to accept employment.
The ingredients can be summed up as
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1. A cessation of work
2. This abstinence of work must be by a body of persons employed
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in an industry3. The strikers must have been acting in combination.
4. They must be persons working in an industry as per this 1.D Act
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1947.
5. There must be concerted refusal or refusal in a common
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understanding, they must stop work for some demands relating tothis employment or its terms, or conditions of labour.
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The strike may be manifested in different forums like, hunger, sit down, solve
down, pend own, lighting etc.
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Lock out : As per section 2 (1) of 1.D Act It means the temporary closing of aplace of employment or the suspension of work, or the refusal by an employer to
continue to employ any number of person employed by him
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There is temporary closing of employment.
The elements of demand for which the industry is locked out must be present.
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The intention to reopen or take the workers back if they accept the demands,must exist lock out is not closure it is a tactics in bargaining it is intended for the
purpose of compelling the employee to accept any terms or conditions affecting
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employment. It is a weapons in the hands of employers, A lock out declared in
consequence of an illegal strike or a strict declared in consequence of a illegal
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lock out shall not be deemed to be illegal.Lay off : As per section 2 (kkk) of 10 Act means, failure, refusal or inability of
an employer on account of shortage of fuel power or raw materials, or the
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accumulation of stock or the breakdown of machinery to give employment to a
workman whose name is on the master rells of his industrial establishment and
who has not been retrenched.
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It is a short term removal of workers.
The essentials of a lay off are failure refusal in ability of the employers to give
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workThe employees must be permanent in nature at the time of lay off
The failure to give work should be due to reason beyond his powers like
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a) a major break down of machinery
b) Shortage of raw material, power, coal etc.
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c) Marketing problem of stocks resulting in accumulationd) Any other act of god beyond employer`s control.
The workman must not have been retrenched
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Retrenchment section 2 (oo) of 1.D Act means termination of the services of a
workman by employer for any reason whatsoever otherwise them as a
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punishment inflicted by way of disciplinary action, but does not include,a) Voluntary retirement of the workmen, or
b) retirement of the workman or reaching the age of supermuation
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c) 10 Termination (natural) at the end of a contract
d) Termination due to continuous ill health.
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Essentials of retrenchment1. Termination of services of a workman not amounting to dismissal
2. Termination on the ground of surplus labour or staff
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3. Service terminated must be a continuous one perpetual in nature.
4. Termination not to victimize or due to unfair labour practice.
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5. The above 4 weapons may create industrial relations strain, causedispute etc.
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Attempts by government to safeguard 1R
1. The strikes may be declared illegal if adequate notices are not
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given if given it becomes legal and they may get compensation
etc if any action is taken by employer.
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2. During lay of which is beyond the control of employers, workersshould be paid ? the wages for sustenance at least up to 45 days.
3. Lockout can be as a consequence to illegal strike. If strike is
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withdrawn work can resume, of course punitive action can be
completed.
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4. Retrenchment is an extreme action, but when industry comesback to normal running, the retrenched workers can re establish
their lien, and they will be given preference for absorption.
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Thus it can be seen every attempt is made by government and various acts to
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retain relationship between worker and management which only can giveindustrial peace for progress.
2.4 Self Assessment Questions
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1. Explain strike and lay off.
2. What is lockout state its consequences
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3. What are causes of industrial unrest?4. What are the determinants of Industrial Relations.?
5. Explain retrenchment.
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2.5 Summary
In this we have seen the concept and determinants of Industrial Relations
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Position of 1.R in India. The causes of Industrial unrest is discussed along withits consequence. The weapons in the hands of employers and employees are
discussed.
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2.6 Key Answers :
Industrial Relations when strained boils to strike, unrest and consequential
employer`s reaction lock out retrenchment etc. This chapter deals with methods
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to solve the unrest problems.
Managing Industrial Relations changes, Industrial Relations and
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Productivity3.1 Objective
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With increasing education level of workers, growing industries, foreign
companies coming in, etc requires our scrutiny of relations with industrial
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workers. There should be a shift in the maintenance of industrial relations in thelight of above changes
Structure
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3.2 Introduction
3.3 Personal management, Human relations management and industrial
relations
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3.3.1 Industrial Relations changes and management
3.3.2 Industrial Relations and productivity
3.3.3 Productivity influence
3.4 Self Assessment questions
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3.5 Summary3.6 Key Words
3.1 Introduction
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Managing Industrial Relations changes. There are phenomenal changes in
industrial relations field in India why globally also the same thing. To improve
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the working conditions in industries and also to safeguard the interest of theworkers and to put a check on amassment of wealth by industrialists, in early
fifties Nationalisation of industries galore started. This has resulted in public
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sector undertakings, with improved industrial relations.
Now after half a century the myth of socialistic pattern public sector mode is
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having a shift to privatization which has become a global necessity also. Needfor cordial relation became necessary
1. To have workers whole hearted co-operation in our modernization
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endeavors2. More transparancy is required every where and this helps in better
collective bargaining
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3. This will not only facilitate enhancement in production but also improve
productivity
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4. The net outcome of increasing efficiency and profit will go toindustrialists as well as to workers.
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3.3.1 P.M and H.R.M ? Industrial Relations
Companies have started to improve their personal management, instead of
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personal management, concept of human relations management. has taken overthis aspect. This has created new ways to improve relation.
1.This enables to consider work force as a part of management and proper
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motivation and career planning etc are attended to properly
2. By developing team spirit give and take` policy is pumped in, the
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memorandum of understanding M.B.O approach which fixes the thing atproper perspective is gaining mementum by improving relations
3. The above approach and flattened hierarchial set up, improves the
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communication and no room is given for suspicion misunderstanding.
5. Since there is spelt out` career growth this helps to improve efficiency
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of workers for mutual benefit.6. H.R.M is giving more scope for proper union activities resulting in better
negotiations and meaningful settlements.
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7. The participative forums envisaged right from 1947 thro Factories Act
etc is gaining momentum improving Industrial Relations.
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H.R.M replacing personal management has made lot of changes in personal
relationships and personal handling the Industrial Relations changes are visible
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as follows.
1. The rules regulations etc are now days so tailored to suit the workers
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they are seen with a humanitarian approach. The old pattern, I don`tknow what you will do is changed, a co-operative attitude is taken now,
this has resulted in a jump in Industrial Relations.
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2. The laid out procedures are contracted as per need of the hour ? Thefocus is to get the things done not to stick to reties and get stuck up.
3. The superintendence pattern is shifted and a guidance pattern is adopted
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by managers hence workers feel homely and as a team.
4. The managers facilitate the works under the transformed leadership ? not
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the old transfixed position.5. Team work is facilitated Go and do it` is changed into let us go and do
it`
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6. Industrial workers are industrial assets has become the motto of Tata iron
and steel company`s motto is Tata family a feeling of oneness this has
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resulted in owning of the industry. This motto has paved way for itsphenomenal growth and diversification more or less it is coming towards
Japanese style.
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7. Higher thrust is given for the development of workers, skill
improvement, management development career growth planning etc has
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improved the industrial relations.Industrial Relations Changes has brought lot of changes in
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a) Management, entrepreneurs, employees because of necessity and
compelling circumstances.
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b) In the trade unionsc) In the workers themselves
d) Attitude of the government, politicians
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e) Judiciary also
This can be discussed as follows
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1. Management has changed Human Relations Management policies.2. Employers have formed their effective associations to tackle not only
their workers but also to compete
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3. Linkage with international business organisations, participation in worldtrade suggesting requisite changes in commercial laws etc. has become
the order of the day.
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4. Linkage with international labour organisation they can, up to date, the
informations to see their suggestions and improve workers conditions.
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5. ASSO CHAM chamber of commerce etc have emerged as confiderationof Indian Industries.
B. Status of Trade unions: After independence of our country more and more
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industries were coming, trade unions were becoming stronger.
In private sectors trade unions were masters they could to strong arms tactics at
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the same time some industrialists could suffocate the unions with their gangs`Things were extreme union leaders were in the pocket of industrialists.
4. When nationalization of industries started, more public sectors came in
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to being public sector bureaucrats cannot purchase or give pressure on
union leaders like private management hence they have to take other
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steps to keep the relations better. Hence industrial relations had to beattended to keep industries running smoothly.
5. With Nationalisation spree trade unions affiliated themselves to political
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parties more vigourously, rather unions became a pawn in the hands of
politician. Real union leaders lost their faces. Masked politicians became
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the string pullers in industrial affairsC. Change and Workers
1. Workers have started making hay while the sun shines they joined
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unions which are powerful, not unions which are principled.
2. Might is right those who can get us more will be our leader, their`s is our
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union.
3. Interests of management, justifiable demands etc gone with the winds the
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net result employers dilemma and lack of their enthusiasm. This was a
stage at which the most union minded comradary states Kerala and west
Bengal ? became almost devoid of industries worth the name in Bengali
language for going to office wages, and to work O.T` was a saying.
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4. Gamut of industrial social security Acts came into being only keeping in
mind the interest of industrial workers without any thought about the
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industry or the employers.D. Attitude of government and politician
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1. Politicians were jubilant while there was nationalization since they can
hold the reins
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2. The profit loss of P.S.U were linked with government money, which isunlimited, as such politician and government machineries were
comfortable industrial relations got a boom.
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3. Back bone less management was seen in most of the industries, workerswages enhanced, with out increasing their responsibility or accountably.
4. Almost after half a century after independence when the euphoria of
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independence waned ? there was a sudden stop on nationalization,
reversal started.
5. More privatization disinvestments started, this has created strain or
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industrial relations.
6. Amalgamation, merger, takeover, N.R.1. Companies, Foreign
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Companies invasion, started with full speed, workers baffled, unions gotsubmerged, global competition necessity was felt by one all as such
industrial relations was at balance.
7. The new pattern of employment in information Technology, computer
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world- the word workers disappeared hence unions become out of
questions. If persons are posted as supervisors and managers straight
away ? they are not coming under workmen Act. The new employment
set up of the country has money and comfort as such the relations of
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employers employee is cordial.8. Industries which were having workers saw the competitive world and
both employer employee appreciated the necessity for good relations ? to
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compete with others. This has become a golden relations` period.E. Change in Judiciary
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1. Judicial Activism was pronounced, judges were free to decide for the
country`s welfare
2. A slight shift was perceptible in some place where employers action was
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justified.
3. Through there were frequent brushings between judiciary and
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parliament, by and large development of the nation got a boom.3.3.3 Industrial relations and productivity, Industrial relations are that part of
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management which is concerned with the man power of the enterprise whether
ordinary, skilled workers or manager Betrel smith. Good industrial relations
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provides congenial atmosphere where workers can think of their jobmanagement thinks of their welfare and goal of the company the workers also
are concentrating to achieve the goal of company. Welfare of the company
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where both manager and worker works becomes foremost there by all derive
their benefit. Motivated workers moral become high the team spirit participative
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management profit sharing scheme etc. leaves the worker satisfied A Satisfiedworkers is a most productive worker. Thus good 1.R achieves better
productivity increasing production is one thing, but increasing productivity is
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another thing. The achievement of greater productivity can be had by good
industrial relations only.
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1. Productivity can be of manpower, finance, marketing and workersproductivity man power productivity can be had by efficient
development of work force, right man, the right place at the right time,
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for right type of job.
2. A deployment which equates full load to a perfect worker his optimum
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capacity is brought out. He can bring out his optimum only when he isfully satisfied his psychology is in good condition. Improvement of
industrial psychology is done by good relations only.
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3. Finance productivity is deployment of finance for just and best output.
The receipt of finance at low interest and payout should fetch high
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interest payment to workers also. If payment to workers are just andincentive oriented, stimulating, competitive, workers interest is aroused ?
results in higher production and more return on the money invested as
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finance, Hence this besides creating mutual confidence develops a teamspirit and better relations.
4. Marketing productivity, for the efforts taken expenditure incurred by
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marketing department if sales are high it may be called a productive
marketing philosophy more marketing can be achieved if cost of
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production is less. Cost of production will be low if workers are asatisfied lot, if wastage is avoided, if best quality is produced, if
disciplined production takes place with in stipulated time at the
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stipulated cost and quality. This is easily achieved if morale of work
force if high is they are motivated.
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5. Workers productivity with increased sense of responsibility which comesof best team and co operative spirit, we will produce, shows
togetherness, best relation between employer and employee. Besides
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satisfied employment results in less absenteeism and reduced turnover
absence of both automatically increase production and productivity.
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Strained industrial relations leads to industrial disputes which is ant production
loss to both employers and employee
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3.3.4 A comparative industrial dispute man days lost figure
Year No. of dispute No.of.worker involved(000) No. of Mandoss left(000)
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19511071
691
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3819
1961
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1357
513
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4919
1971
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27521615
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16546
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19751943
1144
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219011980
2856
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1900
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21900
1991
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1810
1342
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26428
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Source Annual report, ministry of labour Government of India hand book
Labour Statistics
3.3.5 Productivity implies development of an attitude of mind and a constant
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urge to find better, cheaper, quicker easier and safe ways of doing a job
manufacturing an article and providing a service ? V.K.R. Menon.
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Normally productivity is ratio of output / Input as per international labourorganisation. The ratio between output and on of the factors of input (men,
material, money, talent etc) is generally known as productivity of the factor
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concerned so far we explained this greatest output with smallest input
productivity is to be calculated from the quantity of produce vis-q-vis the
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resources utilised (make best out of the things available) for that production.Productivity is necessary for all type of enterprises government quasi
government or private sector etc.
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Not mere production will elevate us we are to compete with the world, hence
effective production improvement and productivity alone can raise us national
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productivity level should be hoisted up, economic growth will be stable onlywith rising productivity and industrial goal is centred around good industrial
relations when productivity goes up economic growth shoots up, the industrial
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climate remains cordial and congenial to production development activities
economic use of raw materials avoiding wastages giving optimum thrust by
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industrial workers reduces the cost of production the benefit of which goes tocustomers and society at large with more sales and profit automatically the
workers wages and benefits becomes better developing countries like us should
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give more thrust on productivity and attempts are made to link bonus with
productivity a golden rule` if it comes to adoption legally. In a way increase in
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productivity expenditure on sees that Industrial Relations is stable input isreduced capital investment also may be reduced hence general economy
improves with heightened productivity we see.
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1. Industrial workers touch their peak of efficiency
2. Wasteful expenditure, wastages are systematically reduced.
3. Total cost is reduced
4. Automatically the quality improves by fine tuning by dedicated,
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motivated workers.
5. Workers emoluments are increasing and get share in the increasing
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profits.6. Industrial environment becomes healthy for expansion diversification
and more employment industrial relations and productivity are
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influenced by
7. The competitive market and dynamics of change necessities required.
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globally has pushed us to resort to automation introduction of new andmodern technology, mechanisation, computarisation etc. all those are
aimed to improve not only production, but productivity also which can
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be achieved only by improved relation with workers.
8. Up gradation of employees by proper training development programmes
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etc. only will bring them at par to match with technology change etc asenvisaged earlier simultaneously, they are to be motivated there should
be morale boosting which will improve the relations and go to improve
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productivity.
9. A capable H.R.M management should be there to cope up with the
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aspirations of new set of workers under new technology the managersshould be talented to deal and convert the workers in to a useful team to
achieve common goal.
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10. From its side, the government rules, regulations sops, etc should be
compatible with the industrial needs. They should aid the improvement
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in productivity, such as pressure for a bonus which is productivity linkedetc putting more responsibility on workers in industrial production. This
will improve employers relations which is also a part of industrial
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relations
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Following actions of management may affect labour relations.
I)
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un balanced management of men material by supervisingmanagers here workers may be displeased and lower their
efficiency
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II)
Untrained low calibre management, cannot cope with
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modernization resulting in fall out and cannot contribute toimprove productivity or industrial relations.
III)
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Failure to make scientific management to evolve systems and
boost productivity.
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IV)In competency at all three levels of management to bolster
production or productivity.
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The productivity can be increased along with better industrial relations and
allied activities like.
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1.Adoption of supply chain management to get best raw materials wheremaximum utilisation becomes possible
2. giving better environment to workers and improved working conditions
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environment should remove boredom or monotony and create zeal and
dynamism.
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3. updated machines with full scale mechanisation will reduce cost of production4. The work force should be correctly selected properly trained and fully loaded.
This should be followed by training for updating.
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5. Proper rewards, either monitary or non-monetary should be arranged,
incentive plans mutually agreeable should be framed and adhered to for moral
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boosting.Grievance Procedures should be implemented to nip the grievance in the loud`
stage to avoid conflict, dispute etc.
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7. Quality circles` should be formed along with workers to take care of qualityproducts wastage avoidance etc, which will improve productivity, but above two
quality control and wastage control, can be there if relations are good thus
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interlinking has become a perpetual need.
3.4 Self Assessment Questions
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1. Why industrial Relation necessary?2. With the ushering in of H.R.M what are the visible Industrial Relations
changes.?
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3. What are the roles of government and judiciary in Industrial Relations
change contemplated above.
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4. Describe the status of trade unions in the recent period.5. please link Industrial Relations and productivity.
percentage distribution of disputes by causes (nearest round number
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approximate figures)
Causes
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1963 1973 1983 1991 1992
Salary wages and allowances
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28% 3429
25
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24
Bonus
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10% 10
6
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44
Retrenchment
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26% 2422
18
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15
Leave and hour of work
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4%
2
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2
1
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1Indiscipline and dividend
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-
6
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1418
21
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other Causes
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32
24
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27
34
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35Source ? Pocket Book of Labour statistic labour Bureau ministry of labour.
3.5 Summary
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With the new industrial Scenerio we have to change our personal management
mode to the new H.R.M mode, more flexible worker oriented, enlightened etc.
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Productivity will automatically increase when the workers are satisfied. These inturn reduces industrial conflicts.
3.6 Productivity and production are different. A satisfied worker is more
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productive with increase in productivity both management and workers can havebetter conditions and co operation. In turn better and less costly by products
reaches the society.
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Changing Technology, effective Communication and I.R management.
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Structure4.1 Objective
The main object is to understand that we cannot survive our industries unless we
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compete with others, other nationals. Because now we are facing global
economy to make this we have to change improve technologies of production of
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industries. As such to make it effective we have to change our approach,communication pattern with our workers ? through whom only we can have the
changes.
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4.2 Technology or Industrial Relations Introduction
In the modern times industries can survive only if they bring a change
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management, There should be organisational changes and also with dynamismgradual change ? we cannot cope up with leaping nations to grab the world
market yesterday it is U.S.A today Japan tomorrow, Korea Singapore Germany
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will be striving to lead ? where are we? unless we change that to with zeal and
dynamism, existence of industries will be at stake.
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The dynamics of change include.1. Change in technology
2. Human relations
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3. Production methods
4. marketing strategies
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5. New Financial management et.4.2.1 In this we will concentrate how technology and Industrial Relations are
going to move. As discussed earlier new technology should be adopted to
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increase production productivity. Now when question of production comes ? Itis the workers base who must be motivated, brought up by our attempt to
improve our production productivity hence we must improve our relations with
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them improve their faith in us. There may be resistance by workers to receive
new technology of production etc. this is natural but it is managers who should
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deal with them by having transparency they should be brought aroundIntroduction of new technology creates
1. Fear of un known in the hearts of workers.
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2. Loss of job due to mechanisation and consequent displacement .
3. Panic reaction since they may not learn how to operate the new machines
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and use new techniques.4. A feeling of inferiority complex and consequent depression.
5. A feeling of distancing from the machines with which they lived for
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years together, say right from start of their careers. all these things
creates bad industrial relations, strained attitude of workers. leading to
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poor production productivity. Some times strikes voilant behaviours alsoare seen in such circumstances.
Case
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When computerization was contemplated at Life Insurance corporation of India
? Mount Road madras office few years before all the workers and staff came out
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to the strects saying we will not allow computer to enter our office ? It will enteron our dead body only ? Such fierce resistance was there in the L.I.C against
technology advancement of course today ? even the lowest paid may be having
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a computer in their house
When this is the problem of technology and 1.R we have to approach it
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continuously in a humanitarian reassuring way.1. Even before the machines are to come workers, are to be taken in to
confidence tell them, educate them, and sell them so that they can own
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them.2. Tell the workers the disadvantages of remaining static explain the
competition prevailing around the industry locally, and internationally.
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Explain then how our leather technology has fallen behind and our
leather shops are closing, explain how our domestic articles consumables
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are falling down behind ? china invasion in marketing we have to awake,arise and proceed in technological advance to compete.
3. Workers to be explained how the price will be down by mass production,
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quantum production which will result in more profit and better co
conditions for our industry and workers. Thus the contributory factor of
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less production cost and more profit, should be utilised to improve ourrelations with workers.
4. Workers should be initiated into new Technology with prior training and
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with tolerance. While importing training to adopt new Technology, the
knowledge skill activity, dynamism of the workers should be taken in to
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account and accordingly they should be lead. The load should bebearable not baffling scientific loading is better.
5. Along with this the wage aspect should be taken into account different
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work different pay structure should be evaluated. There should be proper
wage structure so that workers would be tempted to learn more and more
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about new technologies and get better climb in wages proper structure ofwages will be an incentives
Case : If a pay loader operator gets Rs. 300/- day make a structure of Rs.
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600/- day for shovel, back hoe operators. The new jobs change in
technology of loading will allure them because of heavy hike in pay thus
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we will be in advantage workers also.6. With improved modern machines the working conditions also should be
improved. There was a suggestion to air condition shovels and Drill
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machines to get better work this will improve their working habit.7. Create climate for automation, remote control operations of machines.
8. A Port from these all the human relations should be improved with
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technological advances because we may need to handle better qualified
workers.
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9. After certain level of salary in the new technological operations, workersrequire improved relations greater respect.
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This is seen in change of designation also upto car, jeep, small dumpers theperson who drives it are called drivers New technological equipment, big
haulers, shovels the person who drives them are called operators this small
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difference in nomenclature improve the relations and they feel elated.
4.3.3 Effective communication system and 1.R management any good
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administration requires proper communication system. In the case of industrieswhere we have get pronounced hierarchical system communication system
should be sufficient to move upwards, downwards and laterally. There should be
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adequate communication to keep the employees informed about decision which
affect their interest Communication is essential to building trust and team work
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among employees, To become successful leader your must have a greater teamyour effectiveness depends on you ability to reach others through the different
mediums.
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4.3.4 Communication is basically of two types operational, Personal
It is personal communication we are concerned which is vital to improve
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personal industrial relations.This communication is exchange of information and feelings in which we
human beings engage whenever we come together. Industrial workers attitude
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has a bearing on their productivity. The nature of conversation in a work
situation affects attitudes. Where there is friction, heated exchange of words, and
Frayed tempers are often present, the employees, are not likely to make their
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usual productive efforts. Also the extent of personnel communication to be
permitted should be guarded. Too much talk may dilute authority and strictness
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in exacting the work, derial of personal communication could lead to emotionalup set.
In a good industry the communication (internal, external, and personal) we see
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different type of informations flow. Each day several communication takes
place. Regarding industrial relations it is the communication we make
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downward and the reply we get from grass root, improves our relations.The downward communication - There is flow of instruction message from top
brasses to workers this can be through notices on board, circulars or thro
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workplace microphones. There can be meetings with subordinates meters. in this
there can be two way discussion and the message communicated reaches the
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worker fully and without ambiguity. To some extent this helps in settlement ofgrivenance which promotes industrial relations. Upward communication. If a
employer gets communication from down the line ? be can gauge their
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sentiments and take corrective action. He can know the extent of work carried
out following his instructions and may try to give solution to expedite. If
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employer keeps an open mind, useful suggestions communication will flowfrom downward improving the relations of employer employee.
Informal communication or grape wine the formal methods of communications
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are normally, departmental meetings, conference, bulletins etc Informal is grape
wire communication this is fast and spontaneous. But there may be distortion for
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communication purposes we can do formal and at the same time all grape wireinformation which travels quickly
Again out of the two normal modes of communication oral and written.,
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oral communication is
1. The direct face to face exchange of words generates an affinity develops
a co operative spirit.
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2. The intent of the communication the mood of the worker comes face to
face and with flexibility goods are properly delivered.
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3. Clearing doubts in the communication becomes possible4. The symbols and the attitudes as seen, conveys the employer employees
mood ? corrective or ratifying actions could easily follow.
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This is not suitable for lengthy messages write message is more confirmative
and comfortable.
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In the case of written communication to workers.1. This leaves evidence and can remain with them for frequent reference, if
he forgets.
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2. This can be preserved
3. While writing utmost care is taken to make it sweet and up to the point.
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4. We can reproduce it for expansion of messageImproper communication affects industrial relations communication with
employees may be affected due to following problems, barriers.
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1. Semamtic problem: That is problem of language of employer and employee
communication is two way process worker should understand your language and
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react in his language which may be common.2. Perception Problem: People may not see eye, to eye the management and
workers do not travel in the same wave l length during communication the
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messages should be easily understandable to suit and attract the employees.
Depending upon their perception limitations the toning, volume depth of
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message should be tailored.3. Besides this there may be failures due to
a) Faulty speech and faulty hearing
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b) Translation may not carry the forcefulness and the intent of theemployer
c) There may be hierarchical blocks
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d) Status blocks.
Since we accept that proper communication improves industrial relations ? in
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turn gives better output and productivityHence to improve 1.R improve effective communication
1. The message of Communication should be short, sweet and up to the
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point leaving no ambiguity the objective must be clear.
2. Communicate in a language which used by most of the workers,.
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3. There should be adequate doses of communication. the intention shouldbe to reach and create a stir not just say something. There must be
freedom from tension and stress at the top and a genuine willingness to
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attract communication from the down.
4. Before dissemination of information ensure what you want to
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communicate and how muchi)
use language endearing so that it can get a lodgement
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ii)
The velocity voltage and amperage of your talk should be as
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per the receiving end`s capacity carry a nursery changer ? Forproper spoon feeding whenever necessary. Keep in mind the
intelligent levels are not same.
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5. Use a proper medium either oral or written to suit the message and its
nature
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6. Always communicate at a appropriate time and provide right climate.7. Utilise the benefit of the meaning of communication a Two Way
Process` to bring home your necessities give a patient hearing to them.
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8. keep the subordinate in good humour devoid of boredom and blankness.
9. It is worth while to train workers to teach about communication its
methods etc so that they can be free and frank and there can be fruitful
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exchange of ideas which will result in improved industrial relation.
4.4 Self Assessment Questions
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1. What are the ripples created by New Technologies in industries?2. What are the problems of New Technologies and Industrial Relations?
3. Describe type of communication suitable for better industrial relation?
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4. State advantage of written communication in an industry
5. How to make effective communication.
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4.5Summary
This chapter we deal with the technological explosion we are facing and the
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compatible 1.R change needs. 1.R improves out of better communication
understanding delivery mode etc. This has been discussed at length.
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4.6Key Answers
The answers to Industrial Relations problem with the advent of new
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technology lies in making compatible adjustments in our HR dealings
coupled with the suitable way of communication.
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Indian Culture, Industrial Relation International Labour Organisation
5.1
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Objectives
The objective of the lesson is to see haw the culture and labour practices were
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there in India; Further what are normal, unfair labour practices done byindustries to jeopardise the industrial relations part played by International
labour organisation.
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5.2
Introduction
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5.3.1 Unfair Labour Practices5.3.2 International Labour Organisation
5.3.3 Machineries to reduce / smoothen Industrial Disputes
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5.3.4 Self Assessment Questions5.3.5 Summary
5.3.6 Key to Answers
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5.3.7 References
5.1 Introduction.
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Our industrial culture has undergone a radical change. From Vedic times uptoBritish rule our industries (Whatever were there) were having Raja Praia`
culture All the wealth goes to king, all the sweat goes to the king. From there
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our culture changed to zamindar`s system of management. A sort of bonded
labour. All the workers who are with in a particular area will sweat for a
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particular zamindar`s. Following this came British pattern. hire and fire was therelation with workers. Engage whenever required and then throw them off.
During pre independence saga because of the national leaders like Mr. Roy,
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Mahathma Gandhi Tilak and others, a concern was developed for workers
welfare. British government at the fag end of their tenure enacted few acts like
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trade union act, Industrial disputes Act etc.Our workers culture which were all along like slavery slightly improved and
unions were formed.
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After independence several welfare measures were taken by the government to
protect the rights of industrial workers and to improve their working conditions
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to give them several rights and to improve their relations with employers anumber of legislations were made like, Factories Act, amended industrial
disputes Act wages Act etc. All were to improve the healthy atmosphere in the
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industries.
Our Indian culture is not fighting or belligerent nature workers are normally
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docile and peace loving hence industrial relation are by and large smooth. Onlythe intervention of political parties in the running of the industry creates ripples
and Industrial Relations gets strained.
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Our sathvik culture was liked by most of the western countries. That is whyeven though so many youngsters are job less in their countries, Countries like
U.S.A Canada etc. They recruit and employ Indian boys in their establishments
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Their is a slight shift in our culture probably due to British impact which has
become more prone towards employers welfare hence to fix the proper labour
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practices through our legislation some of the practice have been prohibited.Unfair labour practice as per V schedule of 1.D Act 1947 on the part of
employers or their trade unions:
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1.
On the part of employers and trade unions of employers:
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1.To interfere with, restrain from, or coerce, workmen in the exercise
of their right to organise, form join or assist a trade union or to
engage in concerted activities for the purposes of collective
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bargaining or mutual aid or protection, that is to say:a. Threatening workmen with discharge or dismissal, if they join a
trade union;
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b. Threatening a lock ? out or closure, if a trade union is organised;c. Granting wage increase to workmen at crucial periods of trade
union organization, with a view a undermining the efforts of the
trade union at organization.
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2.
To dominate, interfere with or contribute, support, financial or
otherwise, to any trade union, that is to say:
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a. An employer taking an active interest in organising a trade unionof his workmen, and
b. An employer showing partiality or granting favour to one several
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trade unions attempting to organise his workmen, or to its
members, where such a trade union is not a recognised trade
union.
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c. To establish employer-sponsored trade union of workmen.3.
To encourage or discourage membership in any trade union by
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discriminating against any workman, thus is to any:a. Discharging or punishing a workman, because he urged other
workmen to join or organise a trade union;
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b. Discharging or dismissing a workman for taking part in any strike(not being a strike which deemed to be an illegal strike under this
Act) ;
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c. Changing seniority rating of workmen because of trade unionactivities ;
d. Refusing to promote workmen to higher posts on account of their
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trade union activitiese. Giving unmerited promotions to certain workmen with a view of
creating discord amongst other workmen, or to undermine the
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strength of their trade union;f. Discharging office-bearers or active members of the trade union
on account of their trade union activities.
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4.
To discharge or dismiss workmen :
a. By way of victimization ;
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b. Not in good faith, but in the Colourable exercise of theemployer`s rights ;
c. By falsely implicating a workman in a criminal case of false
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evidence or on concocted evidence;
d. For patently false reasons;
e. On untrue or trumped up allegations of absence without leave;
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f. In utter disregard of the principles of natural justice in theconduct of domestic enquiry or with undue haste;
g. For misconduct of a minor or technical character, without having
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any regard to the nature of the particular misconduct or the past
regard or services workman, thereby leading to a disproportionate
punishment.
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5.To abolish the work of a regular nature being done by workmen, and
to give such work to contractors as a measure of breaking a strike.
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6.To transfer a workman mala fide from one place to another, under
the guise of following management policy.
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7.To insist upon individual workmen, who are on a legal strike to sign
a good conduct bond, as a pre-condition to allowing them to resume
work.
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8.
To show favouritism or partiality to one set of workers, regardless of
merit.
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9.
To employ workmen as budlis, casuals or temporaries and to
continue them as such for years, with the object of depriving them of
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the status and privileges of permanent workmen.10.
To discharge or discriminate against any workman for filing charges
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or testifying against an employer in any enquiry or proceedingrelating to any industrial dispute.
11.
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To recruit workmen during a strike which is not an illegal strike.12.
Failure to implement award, settlement or agreement.
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13.
To indulge in acts of force or violence.
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14.To refuse to bargain collectively in good faith with the recognised
trade unions.
15.
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Proposing or continuing a lock-out deemed to the illegal under this
Act.
II. On the part of workmen trade unions of workmen
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1. To advise or actively support or instigate any strike deemed to be illegal
under this Act.
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2. To coerce workmen in the exercise of their right to self-organization orto join a trade union or its members to picketing in such manner that
non-striking workmen are physically debarred from entering the work
place;
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a. For a trade union or its members to picketing in such a manner
that non-striking workmen are physically debarred from entering
the work place;
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b. to indulge in acts of force or violence or to hold out threats of
intimidation in connection with a strike against non-striking
workmen or against managerial staff.
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3. For a recognised union or refuse to bargain collectively in good faith
with the employer.
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4. To indulge in coercive activities against certification of a bargainingrepresentative.
5. To stage, encourage or instigate such form of coercive actions as willful
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go slow, squatting on the work premises after working hour or
gherao of any of the members of the managerial or other staff.
6. To stage demonstrations at the residences of the employers or the
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managerial staff members.
7. To incite or indulge in willful damage to employer`s property connected
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with the industry.8. To indulge in acts of force or violence or to hold out threats of
intimidation against any workman with a view of preventing him from
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attending work.Thus by declaring what are all unfair labour practice through schedules
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expressly stating government has banned such type of dealings. These actions
serve to improve industrial relations.
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5.3.3 International labour organisation, has organised several conventions andIndia has ratified several of them out of abort 170 resolutions held by
International Labour Organisation India has ratified 39 resolutions points as per
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our need environment requirement and also suiting our culture.
Through International Labour Organisation we come in contact with countries
having high industrial standards ? and from there we can adopt pick up and
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follow better standards for progress
Labour commissions ? national commission on labour has suggested
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establishment of Industrial relations commission. This could be attemptedNational labour conference suggestions as above and regarding strike with 60%
participants only should be taken up for legal consideration and sever penalty
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clauses for vacation of employer, employees rights etc should be taken up for
further follow up actions in the interest to improve industrial relations.
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Machineries for smooth industrial relations solve industrial disputes they are ofthree types
i. voluntary in built
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ii. Through mediators arbitrators.
iii. By Adjudication.
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They areWorks Committee. It is a committee formed by representatives of workmen
employers at workshop level. Equal number of representation of employers and
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workmen to ensure democratic sprit.
The works committee duty is to promote measures for securing and preserving
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amity and good relations between employers and workmen and to that end tocomment upon matter of their common interest or concern and endeavors to
compose any material difference of opinion in respect of such matters. The main
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function is to promote measures for securing and preserving amity and good
relations and for this purpose take steps of adjustments between employers and
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workmen so that situation many not turn into industrial dispute.a) Joint management councils another step in advancing workers participation in
management this will help 1. Promote productivity and general benefit of both
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management and workers
2. Giving employees a better understanding in the working of industry and of the
process of production.
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3. Satisfying the workers urge for self expression thus leading to better industrial
relations. It is felt that areas where both may be in harmony are areas of safety,
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health good working condition and proper up keep.b. Workers participation in management
This participatory forum got a shot in the arms during emergency, one of the
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twenty point programmes envisaged during 1972 worker participation in
industry was high lighted it was to create awareness among the workers of the
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objectives of the organisation. It was contemplated the scheme shall be operatedboth at the shop floor level and at plant levels in all public sector undertakings.
It will consist of shop plant level workers and supervisors categories of persons
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(not managers) both will be equally represented.
They will discuss about shop level, floor level operational areas, safety and
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economic areas personnel matter welfare and environmental areas.There were workers directors also in the board
c. Collective Bargaining
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Here representation of workers and management discuss bargain their
necessities in a given and take style. Discuss about wage and financial matters.
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This forum also consists equal number of participants.2. A Conciliation officers.
It is a recognised process of settling mutual conflict between individuals and
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groups. Conciliation officer can call for documents summon waitresses try for a
settlement through conciliation proceedings.
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The conciliation officer will hold conciliation proceedings he will assist thememployer and employees (he cannot adjudicate) to arrive at a fair and just
settlement. he is to play the role of an advisor friend of both parties he will
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investigate and induce parties to come to be fair and amicable to have a
settlement. If no settlement is reached he will submit detailed report to the
government.
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b) Board of conciliation
Certain disputes (where the conciliation fails) may be referred to the board they
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will investigate the dispute and try for a right settlement the board has powers ofa civil court. The chairman will have two to four persons from both the parties to
assist him.
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c) Arbitrators:
In arbitration both the parties seek the help of a third knowledgeable party for a
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decision. Arbitrators are chosen by both parties consensus. This is voluntaryarbitration. If there is disagreement to get a consensus candidate court may order
for an arbitrator. Whom both should accept.
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d) Commissioners
Can be appointed by government to enquire and report about the occurrence,
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dispute etc.e. Labour court
It is one of the adjudicating machineries. It consists of one person appointed as
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presiding officer of labour court. It provides machinery for investigation and
settlement of industrial dispute it makes provision for constitution of a
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adjudication machinery besides the authorities of investigation and settlement ofindustrial disputes. Normally labour court presiding officers of Industrial
Tribunal.
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f. Industrial Tribunal
It consists of one person appointed as presiding officer
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They will deal with wages, including mode of payment, compensatoryallowances, hours of work and rest internals, leave with wages and other
holidays, bonus profit sharing, P.F. gratuity. etc. They will also adjudicate
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matters of second schedule
g. National Tribunal
If a dispute is of national importance, or of such a nature that industrial
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establishment situated in more than ore state are likely to be interested in or
affected by such dispute, and that the dispute should be adjudicated by a national
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tribunal the central government may regardless of whether it is the appropriategovernment in relation to that dispute or not, refer the dispute to a national
tribunal for adjudication.
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5.4 Self Assessment Questions
1. What are unfair labour practice generally done by employer
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2. What unfair labour practice unions can resort to.3. What is International Labour organisation
4. What are the internal machineries to solve industrial problems, disputes.
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5. Describe the external machineries to solve industrial disputes.
5.5 Summary
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Our culture has changed slowly right from the time of moghul rule and thenzamindari, and the British Rule. After independence we are necessitated to
improve our industries to compete with the ward. As such we have to keep our
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dispute resolving machineries in good condition and improve it.
5.6 Key to Answers
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Lies in knowing about unfair labour practice done by employers and employedseveral machineries internal and external are there. Internal machineries are
bipartite external machineries intervention is Tripartite
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5.7 References:
1. Aswathappa - Legal system industries relations
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2. Monappa Arun - Industrial Relation3. Jain and Jain - Labour Laws
4. Dawar - Industrial Relation and Personal Manager
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5. Industrial Relations Magazines
6. D.N. Bagaliwala - Labour and Social Welfare
7. Labour Commission Reports
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8. Indian Labour Journal and Industrial Relations.
************.
UNIT II
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1
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TRADE UNION1.1
MEANING
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1.2
CHARACTERISTICS OF A TRADE UNION
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1.3NATURE AND SCOPE OF A TRADE UNION
1.4
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PURPOSE OF TRADE UNION
1.5
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HISTORICAL EVOLUTION OF TRADE UNIONS IN INDIA1.6
FUNCTIONS OF TRADE UNIONS
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1.7
STRUCTURE OF TRADE UNIONS IN INDIA
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2TRADE UNION LEGISLATION
2.1 THE TRADE UNIONS ACT, 1926
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2.2 REGISTRATION OF TRADE UNIONS
2.3 PENALTIES AND PROCEDURE
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2.4 UNIONIZATION IN THE INDIAN CONTEXT2.5 INDUSTRY LEVEL UNIONS
2.6 RECOGNITION OF A UNION
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2.7RIGHTS AND RESPONSIBILITIES OF REGISTERED UNIONS
3
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MULTIPLICITY OF TRADE UNIONS3.1 MULTIPLICITY OF TRADE UNION
3.2 DETRIMENTAL EFFECT OF MULTIPLE UNIONISM
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4
CONFLICTS RESOLUTIONS
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4.1 CONFLICT RESOLUTION5
INDUSTRIAL RELATIONS
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5.1 INDUSTRIAL RELATIONS
5.2 WELFARE AND PRODUCTIVITY
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6SOCIAL RESPONSIBILITY OF TRADE UNION
7. INDUSTRIAL RELATION MANAGEMENT AND MANATEMENT
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OF TRADE UNION7.1 THE STATE GOVERNMENT LABOUR POLICY
7.2 PROBLEMS OF THE TRADE UNION MOVEMENT IN INDIA
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7.3 MEASURES TO STRENGTH TRADE UNIONS
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I.TRADE UNION
Objectives Of The Study
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1. Meaning of Trade Union and Definition Of Trade Union
2. Characteristic of Trade Union and Need for Trade Union
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3. Nature and Scope of Trade Union4. Purpose of Trade Union
5. Functions of Trade Union
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6. Structure of Trade Union
1.1 Meaning
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The trade union is an association, either of employees or employers or ofindependent workers. It is a relatively permanent combination of workers and is
not temporary or casual. It is an association of workers engaged in securing
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economic benefits for its members.
Definition
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According to Section 2(b) of the Trade Unions Act of 1926, a trade union isany combination of persons, whether temporary or permanent, primarily for the
purpose of regulating the relations between workers and employers, or between
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workers and workers and for imposing restrictive conditions on the conduct on
the conduct of any trade or business, and includes the federation of two or more
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trade unions.Sydney and Beatrice Web have defined Trade Union as a Continuous
association of wage earners for the purpose of maintaining or improving the
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conditions of their working lives.G.D.H. Cole defines Trade Union as an association of workers in one or more
occupations ? an association carried on mainly for the purpose of protecting and
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advancing the member`s economic interests in connection with their daily work.
Laster defines Trade Union as an association of employees designed primarily to
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maintain or improve the condition of employment of its members.According to Cunnison, Trade Union is a monopolistic combination of wage
earners who stand to the employers in a relation of dependence for the sale of
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their labour and even for the production, and that the general purpose of the
association in view of that dependence is to strengthen their power to bargain
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with the employers.1.2 CHARACTERISTICS OF A TRADE UNION
Association of employees-A trade union is essentially an association of
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employees belonging to a particular class of employment, profession, trade orindustry. For example, there are unions for teachers, doctors, film, artistes,
weavers, mine workers and so on.
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Voluntary Association-An employee joins the trade union out of his free will. A
person cannot be compelled to join a union.
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Permanent Body-a trade union is usually a permanent body. Members maycome and go but the trade union remains.
Common Interest-The member of a trade union have certain matters of common
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interest-job security, better pay and working conditions and so on, which bring
them together.
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Collective Action: Even when an individual employee has any grievance overcertain management decisions, the matter is sorted out by the intervention of the
trade union Employees are able to initiate collective action to solve any problem
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concerning any particular employee or all the employees.Rapport with the Management: The trade union seeks to improve relations
between the employees and employers. The officials of the trade union hold
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talks with
The members of the management concerning the problems of the employees in
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order to find an amicable solution. It is thus possible for the employees to havebetter rapport with the management.
Need for Trade Union
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Workers join trade unions to achieve certain objectives that they may not be able
to achieve in their personal capacity. Trade unions are necessary.
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1. To ensure job security and right pay for the membersOne of the basic needs of any employee is security of service. The main reason
why an employee joins a union is to get him secured. Apart from job security
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and employees need to get pay commensurate with their qualifications and
skills. Trade unions strive to get both job security and correct pay for all
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employees.2. To ventilate the grievances of employees to the management:
When the employees in general or some in particular have any grievance, they
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may not be able to convey the same to the management in their personal
capacity. Such grievances may be brought to the knowledge of the management
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through the trade union. The members of the management may be indifferent tothe demands of the individual employees but they cannot be so when it comes to
union demands.
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1.3 Nature and Scope of a Trade Union
The employer`s association or professional bodies were not included in any of
the above definitions. The employee`s unions are different from that of the
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employers or professional bodies. The employee`s unions are primarily
concerned with the terms and conditions of employment of their members. The
employer`s associations on the other hand are concerned among other things
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with influencing the terms of purchase of services in favour of their members.
Hence, the two should not be placed in one category. The associations of
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professional members also differ fundamentally from employees unions.Professional associations include self employed as well as the employees where
as trade unions consist only of the people who are employed by others. In India
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the term Trade Union refers besides employee`s organizations to employers
association also. Similarly in Britain, even the associations of professional
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people such as Artists Federation or Musicians Unions are also recognized asTrade Unions.
Thus trade unions are a major component of the modern industrial relation
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system. A trade union of workers is an organization formed by workers to
protect their interests. i.e. improve their working conditions etc. All trade
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unions have objectives or goals to achieve, which are contained in theirconstitution and each has its own strategy to reach those goals.
Trade Unions are now considered a sub-system which seeks to serve the specific
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sub-groups interest and also considers itself a part of the organization, in terms
of the latter`s viability and contribution to the growth of the community of
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which it is a part.1.4 PURPOSE OF TRADE UNION
Trade Union came into being for a variety of purposes. Individual workers
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found it more advantageous to band together and seek to establish their termsand conditions of employments. They realized that if they bargained as
individuals, the employer would have a better leverage, for an individual would
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not matter as much as a group in terms of the running of the enterprise. A
group`s contribution is much larger than an individual`s so are the effects of its
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withdrawal. An individual may not be able to organize and defend his interestsas well as a group can. Therefore workers saw the advantages of organizing
themselves into groups to improve their terms and conditions of employment.
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Employers also found it advantageous to deal with a group or a representative ofa group rather than go through the process of dealing with each individual over a
length of time.
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With the changed political, social and equational environment in terms of
awareness of rights the right to organize, the right to bargain and settle terms
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and conditions of employment ? labour or worker unions sprang up in order toprotect and further worker in acquiring a foot hold in the labour movement also
provided the impetus for the formation of labour unions.
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Precisely, the major objectives of trade union are the following:
1. Better wages
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2. Better working conditions3. protection against exploitation
4. Protection against victimization
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5. provide welfare measures
6. Promote industrial peace
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7. Take up Collective Bargaining8. Look after the interest of trade
1.5 Historical Evolution of Trade Unions in India
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Between 1850 and 1870, foundation of modern industry was laid. Indianworking class started emerging at this point of time. In the national economy,
one could see the growth of Indian enterprises along with English ones, growing
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steadily. During this period, the working and living conditions of the labour
were poor and their working hours were long. The Indian Factory Labour
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Commission (1908) and the Royal Commission of Labour (1931) have rectifiedthe fact in their reports. The working hours were longer, but the wages were
low and the general economic condition was poor in industries. Indian Factories
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Act (1881) was enacted to regulate the working hours and other serviceconditions of the Indian textile labourers. As a result, child labour was
prohibited. This act required the formation of machinery for the inspection of
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factories. In 1885, the birth of the Indian National Congress has provided the
background for the emergence of Trade Union.
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The Trade Union movement in India can be divided into three phases. The firstphase falls between 1850 and 1900 during which the inception of trade unions
took place. Guided by educated philanthropists and social workers the growth
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of the trade union movement was slow in this phase. In all industrial cities
many strikes took place in the two decades following 1880 due to the prevailing
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poor working conditions and long hours of work. Small associations came outin Bombay and Calcutta.
The second phase falls between 1900 and 1947. This phase was characterized
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by the development of organized trade unions and political movements of the
working class. It also witnessed the emergence of militant trade unionism.
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Organised trade unionism was prepared during 1900-1915. End of Ist WorldWar, and the Russian Revolution of 1917 gave a new turn to the Indian Trade
Union movement and led to organized efforts on the part of workers to form
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Trade Unions. It was estimated that in 1920 there were 125 unions, with a total
membership of 2, 50,000. In 1920, the first national trade union organization
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was established. Many of the leaders of the organization were leaders of thenational movement (Monappa, 1937)
The third phase began with the emergence of independence India. The
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government sought the cooperation of the unions for planned economic
development. The working class movement was also politicized along the lines
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of the political parties. Indian National Trade Union Congress is the TradeUnion arm of the Community part of India. Subsequently, the socialists left to
set up another national worker federation, the Hind Mazdoor Sabha. The center
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of Indian Trade Unions organized in 1970, has close links with the CommunityParty of India ? Marxist. Besides workers, white collar employees, supervisors
and managers are also organized by the trade union. For example, in the
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banking, insurance, petroleum industries and Aviation the Trade Union exist.
Craft and General Union
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Developed Western Societies have the unions like the one just cited. In theseplaces the industrial way of life has had a longer history. A craft union is built
around a certain specialized skill, which has necessitated a special type of
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training. Craft unions are open to members of a certain trade/skill, like Air
India`s navigator`s union. Alternatively, a general union is open to all members
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irrespective of their skills cutting across trades/skills and includes unskilled,semi and skilled workers.
Union Shop
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When the union acts as supplier of labour, once an employee is employed then
he has to join the union. Here the union makes employment conditional on
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union membership.Check Off
The check-off system is a practice where the management collects an
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employee`s union dues, as a wage deduction and gives a lump sum amount to
the union. This is a facility that ensures totality of collection of union dues with
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no excuse for employees to a resist from paying for one reason or the other as itcould happen in a voluntary system. Such a facility is provided only to a
recognized union.
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Distinction Between Workers
Based on the level and status of the employee for membership of the unions a
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distinction is being made. All shop floor workers are termed blue collar workersand all clerical or office staff, who does not work on the shop floor, are termed
white collar workers.
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White collar workers are different from the blue collar workers on socioeconomic background, education, manner of speech, social customs and
ideology. They are being paid monthly and enjoy longer holidays and various
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privileges as compared to blue collar workers. Nature of work clearly and
significantly differentiates one from the other.
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In recent times white-collar unionism is expanding. Through the methods ofagitation and litigation, white collar workers achieve the goals like better pay
scales, more fringe benefits, internal promotion etc. A large membership, sound
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finance and internal leadership are a few strong points.
Trade union leaders started influencing vital channels of productive and strategic
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functions. Economic and social decisions affecting workers are taken by thegovernment in consultation with the leaders of the trade union movement.
The workers are turning to be militant since they realized that by exerting
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pressure on employers through union power their ends will be met sooner.
Trade Union Growth
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In India the trade union remains as adhoc bodies or strike committees but asfeatures of the industrial society. The various factors like political, economic
historical and industrial have all helped the unions to get a legal status and
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represent the workers. However, the unions are handmaids of political parties.
They joined with one or the other political parties as more adjuncts of the
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parties, instead of partnership based on equality and independence as inEngland. The Trade union rivalries also have become chapter in free India. Most
of the viable unions are split into new unions having sympathies with political
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parties have permeated unions operating in different levels. But they have been
able influence public policy, labour and industrial legislation. They have played
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an important role in involving suitable machinery for joint consultation innegotiate various issues between labour and management.
Comparing other countries India has large number of trade unions for a single
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country. In India, thought there are more than 52000 registered trade union sinthe country, only17% of them are submitting returns and whose activities are on
the record. Further, the density of the trade unions in India is as low as 9.1% as
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against 81%in Sweden, 54% in Norway, 39% in U.K,32% in Germany, 30% in
Canada. the Indian trade union movement also suffers from problems like small
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size, poor finance, outside leadership, dormination by political parties, intenseinter union, ect. Due to new political and economic trends these problems are
further multiplying at a rapid pace. Inspite of these problems trade unions have
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brought about some economic, political, and social changes for the better
conditions of workers. Economically, they have improved the relative lot of the
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workers. Politically, they have produced a mighty secular, anticapitalist, anti-imperialist, egalitarian and socialistic force in the country. Socially, they have
emerged as a unique force of national integration.
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Union Leadership
One of the most crucial factors in this sphere is the leadership that is provided.
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The leadership provides the direction and goals for a particular union. Theleader`s task is to make the union effective, by improving the terms and
conditions of employment of the worker and also by being concerned with the
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viability of the enterprise. The trade union organization based as it is, in many
cases on individuals or the national federations and their ideologies, has not
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been able to evolve a professional cadre of leadership at the grass roots to thedesired extent. In fact, quite often, a single union executive leader is responsible
for running a large number of unions. A survey of trade union leadership in
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Bombay in 1960 showed that one leader was president of 17 unions and
secretary of two more. Another was an office bearer of 20 unions.* R.J.Mehta is
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President of the Free Trade Unions which control more than 14 unions.* Thisbrings us to a consideration of the next issue, i.e. outside leadership vs. internal
leadership. In fact, the Trade Union Act of 1926 makes a provision for this and
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allows for 10% of the leadership to be from outside the sphere of theorganization.* An outside leader is one who is not a full time employee of the
organization, whereas the internal leader is such a person. Many lawyers and
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politicians have been union leaders in the early part of their careers. The former
President V.V.Giri was one such example, so were former Central Ministers like
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G.L.Nanda and Khadilkar. There are advantages and disadvantages either interms of policy or in terms of implementation of administrative action,
especially if he belongs to or has linkages with the ruling party. On the other
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hand his involvement with the plant level problems is much less as he is not on
the shop floor to understand the intricate issues applicable to a particular plant.
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Not being an employee of the enterprise or an insider, he lacks the requireddepth of understanding of local issues and specifics. The outsider is a
professional who has many units under his wing all of which demand his time,
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including the larger function of liaison. The insider would not only have greater
knowledge of the enterprise specifies but also have more time for sustained
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work, being concerned as he is with just one enterprise. Also, external issuesand ideologies are not unnecessarily inducted, which could happen when outside
leaders are in control for whom ideology may be more important than getting
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the best deal under the circumstances.
R.D.Aggarwal (Ed.), Dynamics of Labour Relations in India: A Book of
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Readings, Tata McGraw-Hill, Bombay-Delhi, 1972, pp.58-82.India Today, op.cit.
B.R.Sheth, Indian Labour Laws: A supervisor Should Know, New Delhi,
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All-India Management Association, 1978.The leadership role in a trade union has a variety of demands placed on it. Not
only does it require a certain amount of technical knowledge of the nature of
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business of the particular organizations, but also a sympathetic understanding of
the workers, their attitudes and their problems. A certain amount of
commitment and empathy for a cause, even in uncertain conditions, is necessary.
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Till now the attraction for persons entering this occupation has been the
possibility of a political career in the future. However, there have been some
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plant unions which have been run very professionally and have at the same timebeen concerned with the viability of the firm or the enterprise as well as the
good of the workers. The erstwhile Simpson Workers Union under the
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stewardship of Gurumurthy was an example, and TLA is an example of an
industry level federation.
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Trade Union FinancesIf an organization is to grow, survive and meet the needs of its rank and file
members in terms of attaining their objectives etc. It needs money. For a
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variety of reasons, the finances of May trade unions have not been very
bountiful. It must be noted that to every general statement, there are a number
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of exceptions and so is the case with some financially strong unions. Funds areneeded for attracting and retaining competent staff for, however idealistic the
cause, people do need to survive. It is only with competent staff that some of
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the objectives like research, comparative data generation, company studies,
presenting demands and resolving workers problems can be achieved. Again,
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funds are necessary for political lobbying; for sending union representatives tothe local bodies, state and central legislatures. If inertia sets in, an organization
will wither away or the rank and file will shift to a more active and useful
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organization. Funds therefore are needed to pursue activities, which will in turn
benefit the members who will then contribute, not only financially but also in
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terms of their services and sustain their membership. Activities resulting insomething worthwhile will arouse the enthusiasm of the members and make
them concerned for the allocation and proper utilization of scarce resources.
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The divisive nature of Indian trade unionism has also led to the dissipation of
funds amongst a large number of organizations, with the result that there are
many small unions without much financial backing and without much staff to do
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any substantial work. The generation of funds has been wholly inadequate. In
some cases, subscriptions are not collected promptly or are paid by members
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only when they have a problem. In the former case, it is overlooked by the tradeunion management for fear of losing membership. On the other hand, there are
according to some trader union executives, shrewd members who do not mind
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paying subscription to more than one union in order to protect their interest in
times of need.
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One other mechanism employed nowadays besides the usual collection is thespecial levy at the time of distribution of bonus. Some national federations and
independent unions often generate some reserves to pay at the time of strike as
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strike fund or to employ research staff to keep abreast with current trends, but
this is not the case with all unions.
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1.6 FUNCTIONS OF TRADE UNIONSFunctions of Trade Unions in the USSR
In the erstwhile USSR, the trade unions used to undertake (Trade Unions Act,
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1959) the following functions:
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Raising of labour productivity; improvement in the quality of production,participation in the planning and regulation of wags: improving wage rates;
assisting in the fusion of technical progress; concluding collective agreements
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(with managements on questions of wages and other working conditions within
the limits set by the planning authorities); participation in the settlement of
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industrial disputes, conclude agreements with the employers on the manner ofutilization of funds allotted for measures of social and industrial security; setting
up sanatoria and rest houses; striving for a better organization of medical
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assistance to the labourers and of the protection of the health of women and
children, organizing funds of mutual assistance; assisting members in raising
their ideological, political and general educational level; spreading scientific and
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political knowledge; conducting broad propaganda on matters of productive
techniques, set up clubs, homes, libraries, develop artistic mass activity, promote
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culture, sports and tourism among the employees; help attract the women intopublic, productive and social life; drafting, issuing, implementing and
supervision of labour legislation; maintenance of labour discipline, provision of
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housing and other welfare amenities.
Prior to disintegration, the functions of trade unions in the USSR were not only
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confined to production and collective bargaining only but they also enjoyedsupreme power and their functions were all-pervasive, ranging from the
organization of workers` holidays to looking after canteens, libraries and
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dispensaries, and taking part in the determination of the nature and rates of
compensation for industrial accidents.
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The workers right to strike was either not known or non-existent or is neverresorted to the collective agreements, known as the Socialist Labour Agreement
tried aimed to seek participation of workers in friendly collaboration, free from
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exploitation as a worker or an employee, fulfilling a certain function in a given
socialist undertaking.
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Functions of Trade Unions in the Republic of ChinaIn China, the functions of trade unions have been enumerated thus:
(i)
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To organize the workers to launch labour emulation drives,
strengthen labour discipline and ensure the fulfillment of plans.
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(ii)To improve the material and cultural standards of workers` lives and
to supervise the managements with a view to implement the various
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targets of the plan.
(iii)
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To organize political, educational and technical studies as well ascultural and sports activities.
(iv)
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To enroll members, collect funds and give reports about theseactivities.
(v)
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To educate the workers in the three R`s vocational efficiency and
current economic and political problems.
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(vi)To provide recreational facilities for the workers in the form of clubs
and places of culture and by organizing dances, theatrical
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performances, music, concerts, cinema shows, games, sports, and
facilities for physical education; circulating entertainment
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instruments and organizing libraries.(vii) To get equal pay for equal work.
(viii) To guarantee material assistance to the workers in old age, and in
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case of illness or disability.
(ix)
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To protect women and children from exploitation.(x)
To participate in various activities which are directed towards the
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improvement of living conditions?
(xi)
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To enter into collective agreements with the management formutually fulfilling the targets in respect of production, wages, labour
norms, labour safety, welfare, social security, workers` participation
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in management, material obligations etc.
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Functions of Trade Unions in the USAAccording to the first President of A.F.L. trade unions in the USA perform the
following functions.
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Protecting the wages of worker against capitalist exploitation; increasing wages;
reducing hours of work; securing just and human working conditions, improving
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the safety and sanitary conditions of the workshop; increasing the workers`share in the national income; introducing working rules and democratize labour
management; freeing the labourer from tyrannies, petty or otherwise, which
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serve to make his existence a slavery; achieving equality of opportunity for allworkers; supporting legislation which aids workers and opposing harmful
legislation; protecting and strengthening democratic institutions; aiding and
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promoting the cause of peace and freedom in the world; protecting the labour
movement against corruption and racketeers; safeguarding the labour movement
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from communists, fascists or other totalitarians; encouraging workers to registerand vote; encouraging the sale of union-made goods through the use of the
union label; and participating in various community activities and in local
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government organizations, such as school boards and city councils.
Besides, they also take part in administration work; negotiation and
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administration of collective agreements; provision of educational and beneficialactivities and participation in community, state and national affairs; provision of
research facilities; get protective and social security legislations enacted by the
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state; provide life insurance and health benefit and pension programmes,
recreational facilities, co-operatives, labour banks, credit unions, radio
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programmes and housing projects, etc. In the USA, trade unions been workingas protective organizations. They have conferred immense benefits on society
as a whole by strengthening democratic processes and seeking economic
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stability.
The methods which the trade unions deploy to achieve their goals include
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collective bargaining with the employers and influencing the state machinerythrough political activities to enact favourable labour laws. The strikes have
been their major instrument.
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Functions of Trade Unions in the USA
The British TUC Report Post-War Reconstruction distinguished three mainsets
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of objectives namely:(i)
Maintaining and improving wages, hours and conditions of work,
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and also what wages can buy; and increasing the size of the real
national income and the share of it which should accrue to the
working people.
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(ii)
Providing and improving opportunities for the advancement of the
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workers to obtain full employment is an aim which trade unionshave always pursued:
(iii)
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Extending the influence of the working class over the policy and
purposes of industry and arranging for their participation in
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managementFlandes and Cleggre have laid down the main objective of a trade union as
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under:
(i)
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Defining or improving the wages and conditions of work;(ii)
Raising the status of the worker as a citizen of industry and of
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society; and
(iii)
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Extending the area of social control of the nation`s economic life andparticipating in that control;
Prof. Laski has said the trade unions to-day are pluralist in character and
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pragmatic in method; if they are not, they are unlikely to survive the demands
made upon them by so swiftly changing an environment. The trade unions in
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Britain not only defend or improve the wages and conditions of labour but alsoraise the status of workers, both in industry and society. They extend the area of
social control of the nation`s economic life and participate in that control. John
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Price observes: In England, trade unions have provided cash benefits for
themselves and have worked for the development of social services by the state,
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recognizing that the needs of the individual are, to a large extent, theresponsibility of the whole community. Trade unions are helpful in creating
such conditions of work and service and wage payment that, on the one hand,
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they avoid inequalities between the different sections of the community, and on
the other hand, provide opportunities for the progressive raising of the standard
of living of large numbers of people. They also provide for the development of
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the human personality in its manifold aspects by arranging for educational
programmes.
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Functions of Trade Unions in the India
As per the Indian Trade Union Act, 1926, the primary function of a trade union
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is to protect and promote the interests of the workers and the conditions of their
employment. They can also have other objectives, which are not inconsistent
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with this primary purpose or opposed to any law. In India, trade unionsgenerally undertake the following functions:
(i)
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To achieve higher wages and better working and living conditions for
the members.
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(ii)To acquire control over running of the industry by workers.
(iii)
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To minimize the helplessness of the individual workers by making
them stand-up unitedly and increasing their resistance power through
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collective bargaining; protecting the members against victimizationand injustice by employers.
(iv)
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To raise the status of the workers as partners in industry and citizens
of society by demanding an increasing share for them in the
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management of industrial enterprises.(v)
To generate self-confidence among the workers.
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(vi)
To encourage sincerity and discipline among workers.
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(vii) To take up welfare measures for improving the morale of theworkers.
The National Commission on Labour has underscored certain basic functions
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to which trade unions have to pay greater attentions such as:
(i)
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To secure fair wages for workers.(ii)
To safeguard the security of tenure and improve conditions of
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service.(iii)
To enlarge opportunities for promotion and training.
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(iv)
To improve working and living conditions.
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(v)To provide for educational, cultural and recreational facilities.
(vi)
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To cooperate and facilitate technological advancement by broadening
the understand.
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(vii) To promote identity of interests of the workers with their industry.(viii) To offer responsive cooperation in improving levels of production
and productivity, discipline and high standards of quality.
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(ix)
To promote individual and collective welfare.
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Besides these basic functions of trade unions, the Commission enjoined thefollowing responsibilities upon the unions:
(i)
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Promotion of national integration.
(ii)
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Generally, influencing the socio-economic policies of the communitythrough the active participation in their formulation at various levels.
(iii)
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Instilling in their members a sense of responsibility to industry and
the community.
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The First Five Year Plan while spelling out the role of trade unionsemphasized that they should:
(a) Present plans to workers so as to create enthusiasm among them for the
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plans.
(b) Exercise the utmost restraint in regard to work stoppage.
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(c) Formulate wage demands which are attuned to the requirements ofeconomic development and are in keeping with considerations of social
justice.
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(d) Assume greater responsibility for the success of the productive effort.
1.7 Structure of Trade Unions in India
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In India, the structure of trade union consists of three levels: plant/shop or local,
the state and the centre. It is generally from the central level that the ideology of
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the important central federations of labour in India percolates down to the stateand local levels. Every national or central federation of labour in India has state
branches, state committees or state councils, from where its organization works
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down to the local level.
There are two types of organizations to which the trade unions in India are
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affiliated:(i)
National Federations, and
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(ii)
The Federations of Unions
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Here a brief discussion of this trade union form is given.1. The National Federations have all the trade unions in a given industry
as their affiliated members. Every trade union, irrespective of the industry to
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which it belongs, can join a general national federation. Such federations are the
apex of trade union policies a national character. The central union
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organizations are national federations of labour based on different politicalideologies.
Because of their political leanings, the affiliated trade unions in the field of
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labour relations follow either a militant policy or a policy of cooperation with
the employers and the government, or a policy of continuous strife and
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litigation.The trade union leadership to these national organizations is generally provided
by the politicians. Such leaders are found leading a dozen or more unions in a
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particular state. These unions may be in the petroleum industry, the transport
industry, electricity supply undertakings or craft unions, such as the rickshaw
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pullers` union or taxi drivers` union. Some of the trade union leaders and MPsand MLAs, corporators of city corporations and members of important
committees dealing with the labour policy of the country.
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The national/central federations are empowered to decide the question ofjurisdiction of the various local and national unions.
A majority of these federations allow their affiliates to bargain independently
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with their respective employers. The federations only act as coordinating
authorities for different unions under their control. They also select delegates to
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represent workmen in international conferences organized by the InternationalLabour Organisation or the International Confederation of Free Trade Unions.
The all-India federation of trade unions has a regular structure. For example:
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The INTUC consists of a central organization, affiliated unions, industrial
federation, regional branches and councils functioning under the direct control
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or supervision of the central organization, the assembly of delegates, the generalcouncil and the working committees.
The INTUC functions through its affiliated unions, delegates, assembly, general
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council (including office-bearers), the working committees of the general
council and the Pradesh bodies.
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The UTUC consists of the general body (.delegates` assembly) general council,and the working committee of general council.
The Hind Mazdoor Sabha (HMS) works through the general council, the
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working committee and affiliated organization.
2. Federations of Unions: These are combinations of various unions for the
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purpose of gaining strength and solidarity. They can resort to concerted action,when the need for such action arises, without losing their individuality. Such
federations may be local, regional, state, national and international. There are a
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few organizations which are local in character, such as the Bharatiya Kamgar
Sena, the Labour Progressive Federation, Chennai, the National Front of Indian
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Trade Unions and the Co-ordinating Committee of Free Trade Unions.Many Unions are affiliated to one or the other type of the following central
organizations of workers:
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(1)The Indian National Trade Union Congress
(2)
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The All-India Trade Union Congress
(3)
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The Hind Mazdoor Sabha(4)
The United Trade Union Congress
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(5)
The Centre of India Trade Unions
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(6)Bharatiya Mazdoor Sangh
(7)
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The National Front of India Trade Unions
(8)
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The United Trade Union Congress (LS)(9)
The National Federation of Independent Trade Unions
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(10) The Trade Union Co-ordination Committee
(11) Indian Confederation of Labour
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(12) Hind Mazdoor Kisan Panchayat(13) National Labour Organization
Besides the affiliated unions and their federations, there are a large number of
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associations and federations which have not joined any one of the central
workers` organizations. Some of these are:
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(1)The All India Bank Employees` Association;
(2)
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The All India Bank Employees` Federation;
(3)
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The All India Insurance Employees` Association;(4)
The All India Defence Employees` Federation;
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(5)
The All India Railway men`s Federation;
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(6)The National Federation of Posts and Telegraphs Employees;
(7)
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The National Federation of Indian Railway men;
(8)
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All India Pvt. Employees Federation;(9)
All India Electricity Employees Federation;
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(10) All India Port and Dock Workers Federation;
(11) All India Defence Workers Federation;
(12) All India Chemical and Pharmaceutical Employees Federation.
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In Great Britain, the British Trade Union Congress and in the USA, the
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American Federation of Labour and the Congress of Industrial Organisation(AFL.CIO) are the national organization of trade unions.
At the international level, the World Federation of Trade Unions (W.F.T.U.) and
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the International Confederation of Free Trade Unions (I.C.F.T.U.) are two
important organizations.
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Questions1. Define Trade Unions? Why do workers organize into Unions?
2. Trace the Historical Evolution of Trade Union movement in India?
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3. What are the aims and objectives of Trade Unions?
4. Explain the Structures and types of Trade Unions in India?
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5. What are the functions of Trade Union?6. Explain the Need and Scope of Trade Union?
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II. TRADE UNION LEGISLATION2.1 THE TRADE UNIONS ACT, 1926
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Introduction
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The origin of the passing of Trade Union Act in India was the historicBuckingham Mills Case of 1920 in which the Madras High Court granted an
interim injunction against the Strike Committee of Madras Labour Union
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forbidding them to induce certain workers to break their contract of employment
by refusing to return to work. Trade Union leaders found that they were liable
to prosecution and imprisonment for bonafide union activities and it was felt that
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some legislation for the protection of trade unionism was necessary. In March,
1921, Mr.N.M.Joshi, the then General Secretary of the all India Trade Union
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Congress successfully moved a resolution in the Central Legislative Assemblythat Government should introduce legislation for registration and protection of
trade unions. But opposition from employers to adoption of such measure was
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so great that it was only in 1926 that Trade Union Act was passed.
Object of the Act
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The object of passing the Act was to make necessary provisions in regard to theregistration of Trade Unions and to define the law relating to registered Trade
Unions. The Royal Commission on Labour in India observed that the object is
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to give trade unions the necessary protection from civil suits and criminal laws
relating to conspiracy in order to enable them to carry on their legitimate
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activities.The Act extends to the whole of India including the state of Jammu and
Kashmir. It came into force on the first day of June, 1927.
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Trade Dispute
A trade dispute means any dispute:
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(a) between employers and workmen(b) between workmen and workmen
(c) between employers and employers
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Any such dispute as mentioned to be a Trade Dispute must also be associated
with ?
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(a) the employment(b) non-employment
(c) the terms of employment
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(d) the conditions of labour of any person
The definition of Trade Dispute in this Act is almost similar to the definition
of Industrial Dispute given in the Industrial Disputes Act, 1947. In Trade
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Dispute, it is necessary that there must be a demand from one party and refusal
to accept those demands by other party. There can be real and substantial
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between parties to such dispute.Trade Union
The term trade union can be expressed both in an ordinary sense and in broad
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sense. In ordinary sense it is a combination of workmen and in a broader sense
it includes combination of employers and federation of two or more such
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combinations. The trade union means:Any combination whether temporary or permanent formed for the purpose of
regarding relations between ?
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(a) workmen and employers
(b) workmen and workmen
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(c) employers and employersThe above combinations put restrictions on the conduct of any trade or
business but certain agreements given below have been excluded from the scope
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of the term trade union.
(a) Agreement between partners in a business
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(b) Agreement in consideration of the sale of the goodwill of a businessor of instruction in any profession, trade or handicraft.
Similarly an association whose main object was to acquire patent right was held
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not to be a trade union. Similarly federation of teachers cannot be referred as
association of trade union for teachers not being in the employment of industry.
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Trade union should send an application for registration to the Registrar and shallbe accompanied by the following:
- Name and addresses of members making the application.
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- The name of the Trade Union and address of its head office
- The titles, names, ages, addresses and office bearers of the Trade
Union
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- General statement of the assets and liabilities of the Trade Union, if
the union is in existence for over one year.
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The Trade Union can be registered only under the Trade Unions Act, 1926 andthe registration of the Trade Unions under any other Act such as the following
shall be void:
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- The Societies Registration Act, 1860
- The Cooperative Societies Act, 1912
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- The Companies Act, 1956The registration of Trade Union is not legally necessary but it brings certain
advantages which are:
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- It becomes a corporate body by name
- It can enter into a contract
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- It attains a legal entity- It can sue and be sued in its registered name
The registrar can cancel or withdraw the registration and can exercise
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power on Trade Unions for the following issues where:
- Certificate of registration has been obtained by f\fraud or mistake
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- Trade Union has ceased to exist- Trade Union has violated any provision of this Act
- The primary objects of the Union are no longer statutory objects
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The Trade Union can request the registrar to cancel their registration after the
approval of the general meeting of Trade Unions or majority of members of
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Trade Union. The Registrar must give atleast two months notice in writinggiving the grounds on which he proposes to cancel the certificate of registration.
Registration confers on the Trade Unions certain rights and privileges which are
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as follows:
1. Body corporate
2. Separate fund to political purposes
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3. Immunity from criminal conspiracy
4. Immunity from civil suit
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5. Enforceability of agreements6. Right to amalgamate
7. Right to inspect books of Trade Union
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2.2 REGISTRATION OF TRADE UNIONS
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Appointment of Registrars (Section 3)As regards registration of a trade union, the Act empowers the appropriate
Government to appoint a person to be the Registrar of Trade Union for each
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state. The appropriate Government may appoint as many additional and deputy
registrars trade unions as it thinks fit. They shall work under the
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superintendence and direction of the Registrar.The appropriate Government shall specify and define the local limits within
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which any additional and Deputy Registrar shall exercise and discharge his
powers and functions.
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Mode of RegistrationA Trade Union can be registered only under the Trade Union Act., 1926. The
Societies Registration Act, 1860, the Co-operative Societies Act, 1012, and the
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Companies Act, 1956, shall not apply to any registered Trade Union, and the
registration of a Trade Union under any such Act shall be void (Section 14)
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Any seven or more members of a Trade Union may apply for registration of theTrade Union. All the members applying for registration must subscribe their
names to the rules of the Trade Union and also comply with the provisions of
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the Act relating to registration.
Application for Registration (Section 5)
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Every application for registration of a Trade Union shall be made to Registrar.
It shall be accompanied by a copy of the rules containing matters as given in
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Section 6. It also contains a statement of the following particulars.(a) the names, occupations and addresses of members making the
application
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(b) the name of the Trade Union and the address of its head office; and
(c) the titles, names, ages, addresses and occupations of the office-
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bearers of the Trade UnionWhere a Trade Union has been in existence for more than one year before its
registration, a general statement of the assets and liabilities of the Trade Union
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in the prescribed form must be submitted along with the application.
Rules of Trade Union ? To provide the following (Section 6)
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(a) Name of the Trade Union(b) Objects
(c) Purposes for which the general funds shall be applicable
(d) Maintenance of a list of its members ? facilities for its inspection
(e) Admission of the number of honorary or temporary members
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(f) Payment of subscription ? not less than 25 paise per month permember
(g) Conditions under which members can enjoy the benefits and under
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which fines may be imposed on them
(h) Manner in which rules may be amended
(i) Manner of appointment and removal of the members
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(j) Safe custody of the funds, an annual audit, facilities for inspective ofthe accounts
(k) Manner in which Trade Union may be dissolved
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Registration (Section 7)
The Registrar will register the Trade Union, if he is satisfied that the trade union
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has complied with all the requirements of this Act in regard to registration. The
Registrar shall register; the Trade Union by making necessary entries in the
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register, to be maintained in such form as may be prescribed. The particularsrelating to the Trade Union contained in the statement accompanying the
application for registration shall be entered in the register.
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Where the Registrar takes no action on an application for more than threemonths, writ under Article 226 can be issued commanding the Registrar to deal
with the application.
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Certificate of Registration (Section 9)
The Registrar, on registering a Trade Union, shall issue a certificate of
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registration which shall be conclusive evidence that the Trade Union has beenduly registered under the Act.
It is obligatory on the part of the Registrar to register a Trade Union provided
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the provisions of the Act are complied with. He is not entitled to question
whether the Union is lawful or unlawful.
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Advantages of RegistrationAlthough it is not legally necessary for a Union to be registered, registration
does provide it with certain advantages. Some of the advantages gained by
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registration as given in Section 13 are as under:
1. A Trade Union becomes a body corporate by name under which it is
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registered and it a legal entity distinct from its members of which it iscomposed.
2. It gives perpetual succession and common seal.
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3. It can acquire and hold both movable and immovable property.
4. It can enter into a contract.
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5. It can sue and be sued in its registered name.Cancellation of Registration (Section 10)
Power to withdraw or cancel registration of a Trade Union is given to the
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Registrar. The Registrar can exercise the power in the following case, namely:
1. On the application of the Trade Union for such a course
2. Where the certificate of registration has been obtained by fraud or
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mistake
3. Where the Trade Union ceased to exist
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4. Where the Trade Union has willfully and after notice from theRegistrar allowed any rule to continue in force which is inconsistent
with the provision of this Act
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5. Where the Trade Union has willfully and after notice from the
registrar violated any provisions of this Act
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6. Where the primary objects of the Union are no longer statutoryobjects
Where the Union desires to have its certificate of registration withdrawn or
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cancelled, the Registrar on receiving much application, must, before granting the
application satisfy himself that the withdrawal or cancellation was approved by
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a general meeting of the Trade Union or if it was not so approved, it had theapproval of the majority of the members of the Trade Union.
The Registrar is not competent to cancel registration of a Trade Union
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without giving requisite notice and giving an opportunity to the Trade Union to
show cause against the proposed action.
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The Registrar must be given not less than two months, previous notice inwriting giving the grounds on which it is proposed to withdraw or cancel the
certificate of registration. No such notice is required where such application is
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made by the Trade Union itself.
Appeal (Section 11)
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Section 11 of the Act gives a limited right of appeal from the decisions of theRegistrar. Any person who is aggrieved by the refusal of the Registrar to
register a Trade Union or the withdrawal or cancellation of certificate of
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registration is given the right of appeal. The appeal must be within 60 days of
the date of which Registrar passed the order against which appeal is made.
Trade Union can be restrained by injection from applying its funds for an
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unauthorized object or for an unlawful purpose, because such expenditure shall
be ultra virus the Act. Thus it would be illegal it devote Union funds in support
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of any illegal strike or lock out.Rights and Privileges
Registration confers on the Trade Union certain rights and privileges. Similarly
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some rights are granted to the member of a registered Trade Union both
collectively and individually. These are as under:
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Body Corporate (Section 13)Every registered Trade Union is a body corporate by the name under which it is
registered. A registered Trade Union is an artificial person in the eyes of law
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capable of enjoying rights like a natural person. It has a perpetual succession
and a common seal. It has the right to acquire and hold both movable and
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immovable property. It can enter into a contract and can sue and be sued in itsregistered name.
The Objects on which General Funds may be spent (Section 15)
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(a) Salaries, allowances and expenses to office bearers
(b) Expenses for administration and audit of the accounts of funds of the
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union(c) Towards Prosecution or defence of any legal proceeding to which the
union or its member is a party
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(d) The conduct of trade disputes on behalf of the union or its members
(e) Compensation for the members at the time of dispute.
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2.3 Penalties and ProcedureUnder Sections 31 to 33 the Registrar of Trade Unions is empowered to impose
penalty on the trade union for default in submitting returns or for supply of false
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information or statements.
(i) Failure to submit returns (Section 31):
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(a) failure to give notice which is required to be given by a registered
trade union;
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(b) failure to send any return, required to be sent by a registeredtrade union; or
(c) failure to send any documents, required to be sent by a registered
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trade union.
Every office-bearer or other member of the executive committee is bound to
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give such information, or send statements or documents as required under theprovision of the Act, and if this is not done, they are punishable with fine which
may extend to Rs.Twenty-five. In the case of a continuing default, an additional
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fine extending to Rs.Twenty-five may be imposed for each week after the first
week during which the default continues. But in no case the total fine shall
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exceed rupees five hundred.The following information or statements are required to be submitted by the
registered trade union:
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(i)
Notice of change in the address of the head office of the trade union;
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(ii)Notice of change of the name on amalgamation of the unions;
(iii)
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Notice of change in the officers of the trade union;
(iv)
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Copies of the corrected rules ;(v)
Copy of every alteration made in the rules;
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(vi)
Notice of dissolution of the trade union; and
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(vii) Annual returns for he period ending March 31.Any person who willfully makes, or causes to make, any false entry in, or any
omission from the general statement, or the copy of the rules or the copy of
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altered rules, which are required to be submitted to the Registrar in the case of a
registered trade union, shall be punishable with fine which may extend to Rs.
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500 (Section 31).Any person who contravenes any of the orders of the Registrar for verification
of the membership of a registered trade union (under Section 28A) shall be
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punishable with fine which may extend to five hundred rupees (Section 31).(ii) Supplying False Information about Trade Unions (Section 32):
The Act also lays down that where any person with intent to deceive gives:
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(a) to any member of a registered trade union, or
(b) to any person including or applying to become a member of such trade
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union, or (c) any alteration as are for the time being in force, shall be punishablewith fine which may extent to Rs.200.
Similarly, any person who with intent to deceive gives a copy of any rules of an
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unregistered trade union to any person, on the pretence that such rules are the
rules of a registered trade union, shall be punishable with fine which may extend
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to Rs.200.(iii) Cognizance of Offence (Section 33): Any offence under this Act cannot be
tried by a court inferior to that of
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Metropolitan Magistrate or a Judicial Magistrate First Class.
Further, no court shall take cognizance of any offence unless complaint thereof
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has been made by both or with the previous sanction of the Registrar of by theperson to whom the copy was given, within six months of the date on which the
offence is alleged to have been committed.
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Individual employees, if not required to become members in good standing in
the union, may refuse to follow contract provision. Other employees, although
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benefiting from union activities, may also refuse to support the union. Thesefree riders can create dissatisfaction among union members, who may also
likewise refuse to continue their support to union activities. For these reasons,
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unions often propose some system of union security, of which all employees are
required to be or to become and to remain union members.
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The Union Security covers:
(a)
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Sole or Exclusive Bargaining Agent: Under this type of security,the union is accepted as a bargaining agent for all employees
(members and non-members) in the unit.
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(b)
Preferential Union Shop: Under this, additional recognition is
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granted to a union by agreement that management shall give the firstchance to union members in recruitment.
2.4 Unionization in the Indian Context
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Trade union law and political parties and their strategy are relevant for the
process of unionization in the Indian context.
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The Trade Union Act 1926 states, Any seven or more members of a trade unionmay be subscribing their names to the rules of the trade union and by otherwise
complying with the provisions of this act with respect to registration, apply for
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registration of the trade union under this act.
This has resulted in a large number of registered and unregistered trade unions.
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Another factor is that the major political parties have a federation at the apex ornational level to which unions at the plant and state level are affiliated. The
organization pattern of a trade union federation is usually three-tired. Units
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exist at the plant or shop, state and the national level.
National Level Federation
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Historically, four major federations have been in existence and have establisheda national net work of federal unions. They are:
1. The All India Trade Union Congress (AITUC)
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2. India National Trade Union Congress (INTUC)
3. United Trade Union Congress (UTUC)
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4. Hind Mazdoor Sabha (HMS)Of the four, the penultimate one, UTUC, has to a certain extent merged
with the Center of Indian Trade Union (CITU)
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Other than the above,1. National Labour Organisation (NLO)
2. Bhartiya Mazdoor Sangh (BMS) and
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3. Hind Mazdoor Panchayat (HMP)
are a few having stronger regional affiliations than a national coverage.
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2.5 INDUSTRY LEVEL UNIONSTextile Labour Association
Ahmedabad is an example of the industry level union. TLA has diversified into
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an unorganized sector. However, its strength and major contribution has been in
the textile industry.
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Local Level UnionsMany Indian Unions are not affiliated to an industry level federation and in
many cases may not have any affiliation to the national federation. They are
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thus independent local unions centered on a particular plant or a multi plant
organization. Irrespective of occupational groups all are admitted to this union.
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The numbers may vary among the small, medium and large ones. In specificsituations, the assistance or guidance of the larger federations or other large
unions in related industries are sought.
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2.6 RECOGNITION OF A UNION
There are two issues of concern here:
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The first is the issue of recognition of a union peruse, especially in a non-unionised situation. The first question that arises is: Which union is one to
recognize, or should more than one union be recognized? Related to this is the
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problem of verification, the process by which the contending unions` claim to
membership is cross-checked, to enable one to seek representative status.
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The two issues are related to: (i) the need to recognize a union; and (ii) theprocess to be employed for verification when a union stakes its claim, either in a
new union situation or in multi-union situations. This problem arises because at
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the moment there is no uniform legislation available in all the states and unionterritories with regard to the recognition issue. There have been attempts time
and again at restructuring and streamlining the system but nothing has been
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affected so far. It is only in states where the Bombay Industrial Relations Act is
in force, e.g. Gujarat and Maharashtra, that there are elaborate provisions
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regarding recognition. The Act classifies trade unions into three categories:1. Representative union
2. Qualified union,
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3. Primary union
The basis of this classification is the percentage of membership that a union
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has at the industry level ( Chemical industry) or at the lowest level, the primaryunion.
The representative union should be able to muster 15% of the total number of
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employees, employed in any one industry in a contiguous area. The qualified
union should have 5% of the employees in an industry enrolled as members and
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finally the primary union should have 15% or more employees enrolled in a unitor a plant. Therefore it is apparent that there is a scaling down of numbers in
terms of the status accorded. The idea is to provide some basis to assess the
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relative strength of a union seeking recognition.
The Verification Process under the Code of Discipline
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In a situation where a union puts forth a claim to be recognized under the Codeof Discipline the Labour Department satisfies itself about the union`s
representation. The department would collect the following:
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1. Particulars of existing unions in the plant, registration number and date
of registration, whether the existing recognized union has completed a
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two-year period, whether any of the unions has completed a two-yearperiod, whether any of the unions committed a breach of the Code of
Discipline as established by an enquiry of the implementation
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machinery. Within 10 days the aspirant unions and other existing unionswill have to produce documentary evidence to the verification officer in
respect of the list of members who have paid subscriptions for three
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months out of the preceding six months.
2. Membership and subscription.
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3. Money receipt counterfoils.4. Books of accounts.
5. Bank account books (statements)
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6. A copy of the constitution of the union.
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If there are two unions then both need to furnish the required data. However,if the unions abstain from providing data, the verification officer after giving 10
days notice, will go ahead with the verification process and come to a judgment.
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The verification officer scrutinizes the documents in the presence of the union(s)
submitting the above data. If any member has been claimed by both the unions
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then an explanation is called for.The muster roll of the firm will also be checked to ensure that the names tally in
terms of employment and union membership.
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After this process of checking and rechecking, the unions concerned can
themselves go through the verified list of members and notify their objections, if
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any. Only specific objections will be considered. The objections will then haveto be verified. In order to establish this, a systematic sample of employees will
be selected for personal interrogation. The proportion of interviews varies from
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a figure as high as 29% or a minimum of 100 when the number of names
objected to is 500 to 2% or 250 when the number is above 5000 or more.
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The verification officer will then submit his report to the government as well asto the management of the firm. This verification process is according to the
Code of Discipline. However, since the code is not a statute, his findings have
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to be accepted in good faith by both the management and unions during theirbilateral talks. Many agreements incorporate the acceptance of such voluntary
codes.
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2.7 Rights and Responsibilities of Registered Unions
While the main clauses of the Trade Union Act of 1926, concern the formation
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of unions, certain other features are also worth noting. Registration, whichmeans formal recognition of a representative body, also entails certain pre-
conditions. A registered union must allow membership to anyone over 15 years
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of age and have 50% of the office bearers from within the industry. It must keep
its books of account in order and send its income and expenditure statements to
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the registrar of trade unions on or before 31st March.The union can spend its funds on salaries of office bearers, prosecution, defence,
etc. for protecting its trade union rights, to provide compensation to members,
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levy subscription fees, publish periodicals, etc. More important, a registered
union can claim protection from being prosecuted for legitimate trade union
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activities. This protection is under Section 120 B, subsection 2 of the IndianPenal Code.
The issue that arises, therefore, is the distinction between a recognized union
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under the Code of Discipline and a registered union under the Trade Union Act
of 1926. The former is a voluntary act and may well concern a representative
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union, while the latter may not always cover a representative union, especially inmulti-union situations where there are many small unions or two or three
factions. In the absence of any statute, the recognition of a majority bargaining
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union of the workers still remains a cumbersome process.
Questions
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1. Define Trade Union under Trade Union Act 1926.2. What is the Registration Procedure of Trade Union and Explain?
3. Explain the Recognition of Trade Union?
4. What is Rights and Responsibilities of Trade Union?
5. Explain Penalties and Procedures under Trade Union Act?
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III. MULTIPLICITY OF TRADE UNIONS3.1 Multiplicity of Trade Union
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In India, many of the unions are general unions. In this environment,
a combination of factors seems to operate ? the first being the democratic
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principle of any seven members being able to form and register a union. In ademocracy, even a minority is given an opportunity to organize and further its
interests. The Trade Union Act of 1926 also gives sanction to this principle of
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seven members forming a union. Secondly, given the large number of trade
union federations at the national and regional level, which are vying with each
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other for increased membership there is bound to be disunity among theworkers. There is no single federation to which all the other federations belong.
The trade union leaders, some of whom are outsiders while others have come up
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from within the trade union movement, have different approaches to the
problems at hand and hence there may, and does come a parting of ways on
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many occasions.In multi-union situations at the plant level, the problem of inter-union rivalry
frequently poses a managerial problem. Disagreement among unions to
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technological change, rationalization, automation or terms and conditions of
employment causes work stoppage. Sometimes one union agrees while the
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other does not, for a variety of reasons. These rifts are also due to the rivalryamong leaders, or to differences in strategy to be adopted or to differences in
ideology. A clash of personalities and egos also plays its part.
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One of the effects of industrialization, which has meant the stepping up of the
rate of capital formation, has been a strain on the lying standards of workers.
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This has been coupled with another side effect. i.e. hob insecurity ? a problemthat workers usually face in the initial stages of industrialization. The growth of
unions in such cases has generally been to protect the interest of the working
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class. The process of industrialization itself makes for increase in the rate ofunionization. In India this process has not followed the pattern that existed in
the developed countries. The merchant-craftsman`s stage of capitalism was
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bypassed and we had instead an abrupt transition from the agricultural pattern of
production to the factory pattern of production. In the process the emphasis on
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craftsmen and their skills got de-emphasised. This, when coupled with the lowlevel of skill formation, not only meant a greater number of unskilled industrial
workers, but, also as a consequence, led to the growth of several general
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industrial unions and hence the problems of inter-union rivalry.
Another factor was the political linkage with unionization. Unions through their
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collective action are organizations concerned with the interest of a particularclass. Hence they are also concerned with the distribution of power. Since
distribution of power and decision-making is linked with the political process,
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the inter-relationship between politics and unionism is part of this process which
is perpetual. Both political parties and unions have a vested interest in each
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other as the effect of their actions and strength is of interest to each other.Unions have a vita stake in the political process and the decisions that will
change or restructure the balance of power within their society.
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The growth of the four major national federations can be traced directly to the
growth of the major political parties which have different ideologies and
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approaches to the distribution of power and the role of labour in society. Theideological links between these federations and the political parties are,
therefore, responsible for cleavages in the union movement.
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Another phenomenon has been the role of the outside leaders` in the union.
This is partly due to the low level of education of the workers, their lack of
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opportunities to gain experience and therefore their dependence on small elite ofeducated and influential people. All these factors have led to the domination of
the trade union positions by outside` leaders. The technical demands in terms
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of understanding the voluminous and all-embracing legislation are formidableand a legalistic approach seems to be all-pervading. Therefore familiarity with
the various pieces of legislation does play a part in getting things done. The
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social distance between the manager and the worker has also played its part. In
a tradition-bound society which gives due deference to authority, the distance
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between the manager and the worker has been substantial. The gap hastherefore been filled by politicians turned union executives.
3.2 Detrimental Effect of Multiple Unionism
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The large 0number of national federations at the macro level means that the
unit` level concept has been considerably de-emphasised. It leads to the
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diffusion of union power at the top and therefore damages the political leverageof labour. It also leads to inefficient efforts to change or introduce new
legislation in order to improve the lot of workers, which could have been
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possible if there was one cohesive body at the macro level.
Similarly at the micro or plant level the unions have an extra-plant` orientation
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of the unions which is inherent in their political groupings. This restricts theirability to judge a plant issue on its own merits without adding an extra`
(political) dimension to it. The different unions are unable to come together to
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submit a common charter of demands as their differing ideologies make it
impossible to take a united stand, with each individual union seeking to gain
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more leverage for itself from the particular situation. Managements also find itdifficult to respond to these union demands as they are not plant-oriented and
thus outside the management`s control.
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Multiple unionisms also lead to multiple enrolments in unions and non-
subscribing members, causing delay or failure to get recognition. This restrains
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a union`s bargaining power during a period of prolonged strife while the unionsare squabbling among themselves for dominance, the workers are deprived of
their wages and the plant suffers a loss of production. One can say that the
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effect of multiple unions has by and large been detrimental to the objectives ofthe trade union movement. Again, at the plant level, multiple unionism
qualitatively weakens the movement resulting in the formation of small-sized
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unions without effective organization, a precarious financial position and an
inability to achieve significant benefits or rights to the members through their
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own efforts. Collective bargaining is not possible and there is greaterdependence on government machinery in labour-management relations. This
constant power struggle and jostling for the position of being the major trade
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union results not only in propaganda amongst fellow workers to gain support for
a particular union but at times in violence and disharmony.
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The primary role of a union is to protect the workers and to channalise theirefforts into more rational directions so that the viability of the plant is also
enhanced. The effect of having multiple trade unions both at the macro-and-
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micro-levels serves only to weaken the workers` power base while at the same
time negatively affecting the viability of the plant. A variety of remedies have
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been suggested, which will be discussed later.However, it must be noted that in spite of the foregoing there are many
organizations where multiple unions exist and the management does effectively
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negotiate, and conclude agreements. In many plants, workers are unionized ? on
a craft basis ? their special skills or training bonding them together. Multi-
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unionism is more a problem where general unions exist, for whom all categoriescan be organized in one general union
Questions
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1. What is multiplicity of Trade Union?
2. What are the effects on multiplicity of Trade Union?
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IV. CONFLICT RESOLUTION4.1 Conflicts
Although a multitude of causes lead to industrial conflicts, it is not always easy,
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in specific instances, to ascertain the particular cause or causes involved. The
surface manifestations of unrest and dissatisfaction which appear to be
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responsible for work stoppage may cover deep-seated and more basic causeswhich cannot be observed at first sight. Moreover, the relative importance of
the causes, when more than one is present, is often very difficult to evaluate.
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Inspite of this observation, it has been pointed out by industrial relations experts
that the causes of conflicts between labour and management are usually the
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same, wherever capitalist economy prevails. In this context, Mukerjee observesthat The development of capitalistic enterprise, which means the control of the
tools of production by a small entrepreneur class, has brought to the fore the
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acute problem of friction between management and labour throughout the
world.
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Prof.Lester notes: When people sell their services and spend their workinglives on the premises of the purchaser of those services, a varying amount of
dissatisfaction, discontent, and industrial unrest are likely to occur. The
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employees are specially interested in higher wages, healthy working conditions,
opportunity to advance, satisfying work, some voice in industrial affairs, and
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protection against loss of wages, overwork and arbitrary treatment. But whensuch things are denied to them (because employers cut down their expenditure
on labour to inflate their profits), they are forced to exert their rights and stop
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working to make the employers understand their grievances and redress them.
4.2 Causes of Conflicts:
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Industrial relations may be harmonious or strained and acrimonious. In thelatter case, there may be many causes which are rooted in historical, political
and socio-economic factors, and in the attitudes of workers and their employers.
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These causes are being discussed under the following heads:(A) Industry related factors;
(B) Management-related factors;
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(C) Government-related factors; and
(D) Other factors.
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(A) Industry-related factors:
(i)
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Under this category, some of the causes of a dispute may be: The
Industry - related factors pertaining to employment, work, wages,
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hours of work, privileges, the rights and obligations of employeesand employers, terms and conditions of employment, including
matters pertaining to:
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(a) Dismissal or non-employment of any person;
(b) Registered agreement, settlement or award; and
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(c) Demarcation of the functions of an employee.(ii)
An industrial dispute which connotes a difference which has been
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fairly
defined as is of real substance; i.e. a matter in which both parties are
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directly and substantially interested; or which is a grievance on thepart of a worker which the employer is in a position to redress; or
which is such as the parties are capable of settling between
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themselves or referring it to adjudication.
(iii)
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Disputes often arise because of: relatively higher working populationand labour force. There is sharp increase in the quantum of
unemployment from one plan period to another. A high quantum of
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job-seekers in the employment market would create serious industrial
relations problems. Further, the policy of liberalization that calls for
the adoption of high tech in industries would further complicate the
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problem by reducing employment.
(iv)
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The galloping prices of essential commodities, their shortages and/ornon-availability, all these, erode the value of money, as a result of
which the real wages of the workers go down. The existing
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inadequate and unjustified wage structure which has been chaotic,,
confusing and full of anomalies; and failure to pay a need-based
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wage and D.A. all these have created dissatisfaction among workersand constrained tem to demand higher wages.
(v)
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The attitude and temperament of industrial workers have changed
because of their education, their adoption of urban culture and the
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consequent change in social values, the growth of public opinion andprogressive legislation enacted for their benefit. They are, therefore,
very conscious of their rights and will not put up with any injustice
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or wrong done to them.
(vi)
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The trade unions at large have failed to safeguard the interest ofworking class on account of reasons like:
(a) The growing inter-union rivalry and multiplicity of trade unions
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have destroyed the solidarity of the working class;
(b) Non-recognition of some trade unions as bargaining agents of
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their members;(c) Increasing compulsory adjudication of disputes has made trade
unions indifferent to the wages and working conditions of
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industrial employees which can now be determined by courts,
tribunals and wage boards;
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(d) The trade unions generally do not bother about any aspect of thelives of industrial labour except their wages;
(e) The trade union leaders who are not themselves industrial
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workers have become eye-sore.(f) The trade unions generally are organized on the basis of caste,
language or communal considerations, which divide rather than
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unify workers.
(B) Management Related Factors : The management-related factors that
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lead to disputes are:(i)
Management generally is not willing to talk over any dispute
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with the employees or their representatives or refer it to
artbitration even when trade unions want it to do so. This
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enrages the workers.(ii)
The management`s unwillingness to recognize a particular
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trade union and the dilatory tactics to which it resorts while
verifying the representative character of any trade union have
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been a very fruitful source of industrial strife.(iii)
Even when the representative trade unions have been
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recognized by employers, they do not, in a number of cases,
delegate enough authority to their officials to negotiate with
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their workers, even though the representatives of labour arewilling to commit themselves to a particular settlement.
(iv)
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When, during negotiations for the settlement of a dispute, the
representatives of employers unnecessary and unjustifiably
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take the side of the management, tensions are created, whichoften lead to strikes, go-slow or lockouts.
(v)
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The management`s insistence that it alone is responsible for
recruitment, promotion, transfer, merit awards, etc. and there
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is no need to consult employees in regard to any of thesematters, generally annoys workers who in turn become un-co-
operative and unhelpful and often resort to strikes.
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(vi)The services and benefits offered by the management to its
workers in most of the cases is far from satisfactory, which
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invariably leads to conflict.
(vii) The decisions of managements to change their working
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methods, resulting in surplus of which employees are to bethrown out of employment and some-times close the
establishment for various reasons.
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(C) Government-Related Factors:
The various Government-related factors that breed disputes are as under:
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(i)The changes in economic policies also create many dispute
situations. For instance, policies of liberalization and
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privatization have caused many strikes in the country.
(ii)
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Though, there exists a plethora of enactments for thepromotion of harmonious industrial relations, yet their
ineffective or unsatisfactory working causes conflicts, a few
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instances of which are:
(a) Most of the labour laws have lost their relevance in the
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context of the changed industrial climate/culture;(b) Improper and inadequate implementation of labour laws
by most of the employers; and
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(c) Inherent difficulties in monitoring the working of
various labour laws.
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(iii)The growing irrelevance of Government`s conciliation
machinery because:
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(a) both the employees and the employers have little faith
in it:
(b) both have become litigation-minded;
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(c) it is inadequate, poor the number of disputes referred to
it are very large and the personnel dealing with them is
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hopelessly inadequate, particularly because in additionto labour disputes, it is called upon to see to it that
labour laws are properly implemented: and
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(d) the officers associated with conciliation proceedings
have very little training in handling the problems or
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disputes which are referred to them.(D) Other Causes:
Among these may be included the following:
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(i)
The trade union movement is highly influenced by politics.
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Quite often, politicians and political parties engineerstrikes, gheraos and bandhs to demonstrate their political
strength, invariably, the political party which is in power
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favours that trade union organization which is affiliated to it,
as a result of which a number of disputes often arise.
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(ii)The political instability and sometimes the strained centre-
state relations are reflected in industry, resulting n industrial
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conflicts.
(iii)
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Other potential factors, such as rampant corruption inindustry and public life, easy money, conspicuous
consumption, permissive society, character crisis and general
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breakdown in national morale have brought, in their train,
debasement of social values and social norms ? all these can
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and have perpetuated all kinds of unrest, including industrialunrest.
(iv)
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The tense inter-union rivalry among less important anddominant trade union invariably sparks off disputes.
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Questions
1. What are conflicts?
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2. What are the causes of conflict?3. Explain the conflict resolution?
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V. INDUSTRIAL RELATIONS
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5.1 Industrial Relations
Industrial relations consists of state labour policy, enactment and enforcement of
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labour laws, labour judiciary, role of labourers in economic development,
recruitment, selection and training, standing orders, absenteeism, labour
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turnover, migration, working conditions, labour welfare , social security,personal management policies and practices, wage problems, incentives, joint
consultative machinery, workers` associations with management etc. Similarly,
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the collective bargaining and collective agreements, prevention and settlement
of disputes, strikes and lockouts have a direct bearing on industrial relations.
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Among other things, industrial relations involve the interplay of various types offactors such as rate of growth, degree of industrialization, technology, personal
characteristic of the labour and management. Fortunately, the industrial relations
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are highly structured in India by state interventions and there are four parties
constituting industrial relations system. i.e. the state, management, workers and
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trade unions.The Indian Industrial relations are different from other countries in the following
ways: Most of the managements in India consider trade unions as necessary evil
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of the industrial system while the trade unions consider challenging and
opposing the decisions of the management as their main task. The future of
collective bargaining in India is very weak owing to the basic disagreement
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between the political parties who control the unions. Generally, most of the
Indian trade unions are highly conservative in contrast to the European and
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American trade unions. In India, the industrial relations are marked byindustrial conflicts, militant trade unions and authoritarian employers. Due to
the introduction of new liberalized economic policies, India has witnessed
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radical changes un-thinkable even decades ago. In this context, it is worthwhile
to think of some of the prominent spheres where the changes have taken place
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with the introduction of the new economic policy.5.2 WELFARE AND PRODUCTIVITY
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Collective Bargaining
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Collective Bargaining is a process in which representatives of two groups(employers and employees) meet and try to negotiate an agreement which
specifies the nature of future relationship (pertaining to employment) between
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the two. According to Beach, Collective Bargaining is concerned with the
relations between unions representing employees and employers (or their
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representatives). It involves the process of union organization of employees;negotiation, administration and interpretation of collective agreements covering
wages, hours of work and other conditions of employment; engaging in
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concerted economic action; and dispute settlement procedures.
According to Dale Yoder, Collective Bargaining is the term used to describe a
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situation in which the essential conditions of employment are determined bybargaining process undertaken by representatives of a group of workers on the
one hand and of one or more employers on the other. In the words of Flippo,
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Collective Bargaining is a process in which the representatives of a labour
organization and the representatives of business organization meet and attempt
to negotiate a contract or agreement, which specifies the nature of employee
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employer-union relationship.
Features of Collective Bargaining
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The essential features of collective bargaining are as follows:(i)
It is joint or collective process. The representatives of both the
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management and the employees participate in it.
(ii)
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It is a continuous process. It establishes regular and stablerelationship between the parties involved. It involves not only the
negotiation of the contract, but also the administration of contract,
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but also the administration of contract. When we say that collective
bargain includes the administration or application of the contract
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also, it means that bargaining is a day-to-day process. In thiscontext, Summer Slitcher has rightly observed, It would be a
mistake to assume that collective bargaining begins and ends with the
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writing of the contract. Actually that is only the beginning of
collective bargaining.
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(iii)It is a dynamic process. The parties have to adopt a flexile attitude
throughout the process of bargaining.
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(iv)
It is a form of industrial democracy.
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(v)It is an adjustment formula based on give and take approach of both
sides.
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(vi)
It is an attempt to achieve and maintain discipline in industry.
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Subjective matter of collective bargaining
The subject matter of collective bargaining covers a variety of issues affecting
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employment relationships between the workers and the management. According
to Ghosh and Nath the issues covered in the collective bargaining are
recognition of union or unions, wages and allowances, hours of work, leave and
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festival holidays, bonus and profit sharing schemes, seniority, rationalization
and the issues relating to the fixation of workloads, and standard labour force,
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programmes of planning and development influencing workforce, issues relatingto retrenchment and lay off, victimization for trade union activities, provident
fund, gratuity and other retirement benefit schemes, incentive systems, housing
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and transport facilities, issues relating to discipline and shop rules, grievance
procedure, working conditions and issues related to safety and accident
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prevention, occupational diseases and protective clothing, employee benefitssuch as canteens, rest rooms, medical and health services and creches,
administration of welfare funds, cooperative thrift and credit societies and
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educational, recreational and training schemes.
The Indian Institute of Personnel Management, Calcutta, gives the following as
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the subject-matter of collective bargaining:(i)
Purpose of the agreement, its scope and the definition of important
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terms;
(ii)
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Rights and responsibilities of the management and of the trade union;(iii)
Wages, bonus, production norms, leave, retirement benefits and
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terms and conditions of service;
(iv)
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Grievance redressal procedure;(v)
Methods and machinery for the settlement of possible future
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disputes; and
(vi)
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Termination clause.Importance of Collective Bargaining
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Collective Bargaining not only includes negotiation, administration and
enforcement of the written contracts between the employees and the employers,
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but also includes the process of resolving labour-management conflicts. Thus,collective bargaining is a legally and socially sanctioned way of regulating in the
public interest the forces of power and influence inherent in organized labour
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and management groups.Importance of Employees
Collective Bargaining helps the employees:
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(i)
To develop a sense of self-respect and responsibility among the
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employees.(ii)
To increase the strength of the workers. Their bargaining capacity as
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a group increases.
(iii)
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To increase the morale and productivity of employees.(iv)
To restrict management`s freedom for arbitrary action against the
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employees. Unilateral actions by the management are discouraged.
(v)
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To strengthen the trade union movement.Importance to Employers
(i)
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The workers feel motivated as they can talk to the employers on
various matters and bargain for higher benefits. As a result, their
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productivity increases.(ii)
It is easier for the management to resolve issues at the bargaining
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table rather than taking up complaints of employees individually.
(iii)
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Collective bargaining promotes a sense of job security among theemployees and thereby tends to reduce cost of labour turnover to
management, employees as well as the society at large.
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(iv)
Collective bargaining opens up the channels of communications
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between the top and bottom levels of organization which may bedifficult otherwise.
Importance to society
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Collective Bargaining helps the society:
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(i)To attain industrial peace in the country.
(ii)
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To establish a harmonious industrial climate which supports the paceof a nation`s efforts towards economic and social development since
the obstacles to such development can be largely eliminated or
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reduced. As a vehicle of industrial peace or harmony, collective
bargaining has no equal.
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(iii)To extend the democratic principle from the political to the industrial
field. It builds up a system of industrial jurisprudence by introducing
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civil rights in industry and ensures that management is conducted by
rules rather than by arbitrary decisions.
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(iv)To check the exploitation of workers by the management.
(v)
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To distribute equitably the benefits derived from industry among all
the participants including the employees, the unions, the
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management, the customers, the suppliers and the public.--- Content provided by FirstRanker.com ---
Industrial disputes
Our modern industrial system is threatened by the ravaging industrial
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disharmony characterised by the embittered relationships between the employersand the workers. A smooth industrial relations requi4res that all the participants
are to be motivated to work whole heartedly for making the system to work.
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According to the new economic policy during 1991 a series of industrial fiscal
and trade reforms were announced by the government to create industrial peace
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and prosperity. Generally, the reasons for industrial disputes in India werephychological ,political and economic. To achieve industrial peace, changes in
the attitude of workers, employers and trade unions are required along with
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political and economic changes. It is to be seen that whether such changes have
taken place in India after the instruction of new economic policy.
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Questions1. What is Industrial Relations?
2. Explain about importance and features of Collective Bargaining?
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VI. SOCIAL RESPONSIBILITY OF TRADE UNION
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In addition to main economic functions, some unions have now started
undertaking and organizing welfare activities and also providing variety of
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services to services to their members and sometimes to the community of whichthey are a part, which may be grouped under the following heads:
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Welfare Activities
They are provided to improve the quality of work life including
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organization of mutual fund cooperative societies for providing housing creditand socio cultural programmes, banking and medical facilities.
Education
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Education of members, creating awareness about the environment
around them, enhancement of their knowledge particularly in regard to issue that
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concern them, their statutory and other rights and responsibilities, workersparticipation scheme, and procedure for redressing their grievances.
Publication of periodicals
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News letters or magazines for establishing communication with their
members, making the latter aware of union policy and stand on certain principal
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issues and personnel matters concerning members, such as births, deaths,marriages, promotion and achievements.
Research
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Of late this is gaining importance and is intended mainly to provide updated
information to union negotiators systematically collected and analysed at the
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bargaining table. Such research is to be more practical than academic concerningproblems relating to day to affairs of the union and its activities and union and
management relations. Some of the research activities like , collection and
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analysis of wage data including fringe benefits, and other benefits and servicesthrough surveys to comparative practices, data on working conditions and
welfare activities.
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Questions
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1. Explain social responsibility of Trade Union?VII. INDUSTRIAL RELATION MANAGEMENT AND MANAGEMENT
OF TRADE UNION
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7.1 The State Government Labour Policy
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Due to launch of the new economic policy, a number of measures weretaken by the government for safeguarding the interest of the interest of the
working class on account of their growing obsolescence resulting from
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technological transformation. The prominent among them were the policy
changes made by the recommendations of Indian Labour Conference and setting
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up of the National renewal Fund. The amended ESI Act of 1989 was madeapplicable to non- seasonal factories also using power and employing 10 or
more workers and non power using factories employing 20 or more workers.
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The wage limit for the workers to be covered under the Act has been raised from
Rs. 16000 per month to 3000 2with effect from April 1992.
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The standing Labour committee and the *Indian Labour conference
which met
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in October 1995 industry 1995 respective took important decisions on matters
pertaining Triparte the committee on plantation s was constituted which to
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labour standard employment vocational training and bounded labourers inspirecommittee on plantation queen constituted which review an Act force their
purpose of strengthening health cove of, plantation workers.
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The, Government has created a separate Women`s cell Directorate
General of
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Training to boost employment potentials of women. The National Renewal Fund
was established to provide funds for compensation of workers affected
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Restructuring or closure of industrial units to provide assistance to cover the costof retaining and development of employees arising as result of modernisation
technological upgradation and industrial restructing and to provide funds for
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employment generation and social security net to labour needs arising from
comnsequences of industrial restructuring these focus on the fact that since new
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economic policy was geared to meet the consequences that new economic policymay create on the labour force of the country.
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7.2 Problems of the Trade Union Movement in India
The shortcomings or the weakness of the trade union movement in India are as
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follows:1. Lack of balanced growth
3. Low membership
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4. Poor financial position
5. Political control
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6. Multiplicity of unions7. Inter-union rivalry
8. Lack of able leaders
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9. lack of recognition
10. Opposition from employers
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11. Indifferent attitude of membersLack of Balanced Growth
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Trade unions are often associated with big industrial houses. A vast majority ofthe working population is without any union backing. The entire agricultural
sector is highly unorganized in India. The agricultural workers are subject to all
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kinds of exploitation. The same is true with respect to those working in small
scale and cottage industries. Lack of balanced growth of trade unions in all
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sectors is one of the major weakness of the trade union movement in India.Low Membership
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Trade unions , with the exception of few have low membership. This is because
many
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employees are not willing to join unions although they are ready to enjoy thebenefits arising out of the union actions. The reasons for the hesitation of
employees to join unions include, among others, the need to take pat in strikes
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and such other programmes, fear of pay cut and fear of punishment.
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Poor financial PositionLow membership is one of the reasons for the poor financial position of the
inions.
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Moreover, the subscription payable by every member is kept low.
Some members may not even make a prompt payment of the small amount of
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subscription. These are also not very many sources from which unions can getfunds.
They may probably depend on contributions from philanthropists. The poor
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financial
Position can only weaken the trade union movement.
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Political Control
Most popular trade unions in India are affiliated to certain political parties.
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Thesepolitical parties are only keen on making every grievance of the working class a
political issue to attain political gains. As a result the problem only gets wide
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publicity and remains unsolved.
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Multiplicity Of UnionsOften there exists more than one union within the same industry each backed by
a
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political party. These various unions have conflicting ideology. If one union
comes out with a strike proposal another union may work against it. As a result,
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none of the unions is actually able to solve the problems of the workers.Inter-Union Rivalry
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The existence of many unions within a particular industry paves way for what is
called inter-union rivalry. These unions do not work together for the cause of the
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workers. Each union may adopt a different approach to the problem. The inter-union
rivalry may become a more serious problem of the workers. As a result, the
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employees are unable to derive the benefits of collective bargaining.
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Lack of Able LeadersAnother barrier to the growth of trade unions is the lack of able leaders.
Some
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union leaders give a strike call even for petty problems that can easily be
resolved through talks. On the other hand, there are leaders who have secret pact
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with the management. They get bribes from the government and work againstthe interests of the employees. Some leaders don`t convene a meeting of the
general body at all even when a crisis develops. They take unilateral decisions
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that are thrust on the employees.Lack of recognition
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Most management is not prepared to recognize trade unions. This happens
because
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of any of the following reason.1. The existence of low membership that reduces the bargaining power of the
union.
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2. The existence of more unions within the same industry.
3. Inter-union rivalry.
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4. The indifferent attitude of the employees themselves towards trade unions.Opposition from employers
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Apart from the fact that most employers are not prepared to recognize
trade
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unions, they also do not let their employees from a union. This the employersare able to achieve by adopting certain punitive measures like intimidating
employees victimizing union leaders, initiating disciplinary action against
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employees indulging in union activities and so on.
Some employers also start rival unions with the support of certain
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employees.Sometimes, they may go to the extent of bribing union leaders to avert a strike
or such similar show of protest by employees. The employers fail to understand
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that the union enables the employees to express their grievances in a democratic
manner and can also be used as a means of promoting better labour management
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relationships.Indifferent Attitude of the Members
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Union leaders alone cannot be blamed for the weakness of the tradeunion
movement. The indifferent attitude of the members of certain unions is also a
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barrier. Some members do not even make a prompt payment of the subscription
amount. The
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treasurer of the union has to go behind them, remind and persuade them to paythe
subscription that is often a very small amount.
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There are on the other hand, members who do not attend the general
body
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meetings nor do they bother to know what is discussed in such meetings. Thereare still others who do not take part at all in any of the programmes of the union
organized to press the demands of the employees like slogan shouting
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procession, demonstration, hunger strike etc. Members generally expect the
office-bearers to do all that is necessary to achieve the demands.
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7.3 Measures to strength Trade Unions
The following are some of the measures that can be adapted to strength trade
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union.
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Improve financial positionThe poor financial position of the trade union does not permit it to
undertake certain activities. For example it requires fund to permit pamphlets an
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d booklets, to prepare banners and placards, to enable the officer-bearers to
travel to different places to mobilize support and so on in the processes of
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working for the cause of the employeesThe first corrective action that is necessary therefore is to improve the
financial
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position of every trade union. The following steps may be taken in this regard.1. The amount of subscription must be increased in tune with the increase
in the cost of operations.
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2. The members must be persuaded to make prompt payment of the
subscription
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3. Donations may be sought from philanthropists.Increase Membership
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Steps must be taken to increase then membership of trade unions. The
employees must be enlightened on the importance of cooperation and collective
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bargaining. This must be done on a continuous basis or till such time theemployees take the decision to join the union. The office bearers must take the
initiative to make the employers understand. The philosophy of United We
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Stand and Divided We Fall
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Get rid of Political AffiliationWhen trade unions have political affiliation, the political parties make an
Attempt to use the power of unions to their own political gains. It is therefore
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important that our unions free themselves from political control. When the
employees have certain genuine demands, they must represent the same to their
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employers through able leaders who are none other than their own fellowworkmen No attempt should be made to politicalise any issue.
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Do away with Multiple Union
The existence of many trade unions within the same industry only
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reduces the
power of collective bargaining. Moreover. Every such union works to its own
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ideals. The general interests and well being of the employees thus are ignored. Itis therefore necessary to make efforts to bring all the employees under one
union.
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Securing recognition ?every employee working in any industry must be
made
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to realize the importance of trade union. He must come forward to join the unionwillingly. Oncethe support of the employees is received; the next step is to make
all possible efforts to persuade every management to recognize the trade union.
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Essentials for success of a Trade Union
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The first essential of a trade union is to have an enlightened labour force
to guide and direct the movement. This presupposes, according to
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R.K.Mukherjee, the existence of correct leadership, which is not prepared to
sacrifice the interests of the workers to imported doctrinaire enthusiasm but
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desires to hack a highway for them to attain their stature as participants in a neworder of things.
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Another essential is that a trade union should have its foundation laid on
solid ground so that it may achieve success in the attainment of its objects.
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The objective of a trade union should be clearly enunciated. The tradeunions with a complexity of objectives are looked upon with suspicion, and the
employers, who should be willing to sit with them round a table for discussion
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and negotiation, often try to bypass them.
The trade unions should have a coherent and well-conceived policy with
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regard to their structure. A haphazard growth of trade unions is likely to giverise to difficult problems of jurisdiction and spheres of activity. A trade union
should be regarded as a business organization which requires careful planning
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and sound organizational methods.According to George Mean (former President of the American
Federation of Labour), trade unions must possess some basic characteristics, if
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they are to be effective and useful. These characteristics are:
First and foremost, a good union must be able to protect its members
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and win a reasonable measure of economic justice for them.Second, a good union must be run by the members and for the
members. There must be leaders, able and willing to stand firm for what they
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believe is right and to fight for it against what might appear at times to be a
popular position. But they must always be subject to the support or rejection of
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the general membership of the union.Third, a good union must be an honest union. This goes beyond
finances; just being money honest` is not enough. The integrity of a good
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union is all-inclusive. It extends to its relationship with employers, to what it
says to its own members, the formulation of its policies and the evaluation of its
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own performance.Fourth, a union must look beyond it own horizons. It must recognize
and fulfill its proper role in the life of the nations and of the community in which
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it lives.
CONCLUSION
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Trade unionism in India suffers from a variety of problems, such as
politicization of the unions, multiplicity of unions inter and intra-union rivalry,
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small size and low membership, financial weakness, and lack of welfare
facilities for the members, weak bargaining power, reliance on litigation and
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strikes, and dependence on outside leadership. This vicious circle has adverselyaffected their status and bargaining power, and must be broken at as many points
as possible. In this context two measures should receive due attention. One, the
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development of a sound trade union education, which would create a body ofcompetent, well-disciplines and full-time trade union leaders. Two, the unions
have to play a vital and constructive role in improving the quality of life of the
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workers. They should evince greater interest in such welfare programmes for
their members, as education, including literacy, health and family planning, and
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recreational and cultural activities. They can also promote personal andenvironmental hygiene and a sense of thrift. The government can consider some
financial aid to those trade unions which take up such welfare activities. Such
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involvement in constructive activities would help trade unions in furthering the
interests of their members.
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The factors that make a trade union strong and healthy are unflinching
adherence to the union`s constitution and rules, regular payment of dues, fully
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representative character of the union, co-operation with sister unions and a
sound leadership. A methodological organization with an enlightened labour
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force is an essential.BIBILIOGRAPHY
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Sl.No.
Books
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Author1
Personnel Management and Industrial Tripathi, P.C.
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Relations
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2Industrial Relations
Arun Monappa
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3
Human Resource Management
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J. Jayasankar4
Legal Systems in Business
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R.Senapathy
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Unit IIISTRUCTURE
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EMPLOYEE COUNSELLING ? TYPES, METHODS, CONTENTS,
PROBLEMS
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I. EMPLOYEE COUNSELLING1.1. Introduction
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1.2. Counselling in Industry
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1.3. Objectives1.4. Characteristics of Counselling
1.5. Need for Counselling
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1.6. Functions of Counselling
1.7. Benefits
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II. TYPES, METHODS AND PROCESS OF EMPLOYEE COUNSELLING1.2.1. Types of Counselling
1.2.2. Methods of Counselling
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1.2.3. The Process of Counselling: Sequential Steps
1.2.4. Effective Counselling
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III. TYPES OF PROBLEMS FOR EMPLOYEE COUNSELLING1.3.1. Problems in Counselling
References
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CONSULTATIVE BODIES ? TRIPARTITE AND BIPARTITE
I.TRIPARTITE BODIES
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2.1.1. Prelude2.1.2. Evolution of Tripartite Bodies
2.1.3. Tripartite Bodies
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II. BIPARTITE BODIES
2.2.1. Evolution of Such Bodies
2.2.2. Bipartite Bodies
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III. BIPARTISM'S LINK WITH TRIPARTISM
2.3.1. Introduction
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2.3.2. Tripartism`s contribution to Bipartism2.3.3. Bipartism`s Contribution to Tripartism
References
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IR STRATEGIES - A DISCUSSION
I.IR-Strategy
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3.1.1. Factors Affecting Employee Relations Strategy3.1.2. IR - STRATEGIES
II. COLLECTIVE BARGAINING
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3.2.1. Nature and Content of Collective Bargaining
3.2.2. Forms of Collective Bargaining
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3.2.3. Collective Bargaining Process3.2.4. Collective Bargaining as a Method of Settlement of Disputes
3.2.5. Tactics or Strategies in Collective Bargaining
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III. INDUSTRIAL DISPUTE'S SETTLEMENT MACHINERIES
3.3.1. Mediation
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3.3.2. Conciliation3.3.3. Voluntary Arbitration
3.3.4. Adjudication
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3.3.5. Employers` Associations
References
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WORKER DEVELOPMENT AND WORKER'S PARTICIPATIONI.WORKER DEVELOPMENT
4.1.1. At One Extreme
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4.1.2. At the Other Extreme
4.1.3. Human Resource Development (HRD) Approach
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II. WORKERS PARTICIPATION IN MANAGEMENT4.2.1. Introduction
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4.2.2. Implications of Workers Participation in Management4.2.3. Definitions
4.2.4. Need of Workers` Participation
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4.2.5. Objectives of Workers` Participation in Management
4.2.6. Essential Conditions for Successful Working of WPM
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III. WORKERS' PARTICIPATION IN MANAGEMENT IN INDIA4.3.1. Introduction
4.3.2. Forms of workers` participation in management
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References
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EMPLOYEE COUNSELLING ? TYPES, METHODS, CONTENTS,PROBLEMS
This lesson comprises three units. The first unit gives an overview of employee
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counselling in terms of concept, objectives, characteristics, functions and benefits.
Second unit refers to types, methods and process in employee counselling. The last
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unit broadly sketches the various problems in employee counselling.I. EMPLOYEE COUNSELLING
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1.1. Introduction
Counselling has been practiced in one form or other since the evolution of mankind.
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In every field which requires dealing with people, counselling is essential. Counsellingis a dyadic relationship between two persons; a manager who is offering help
(counsellor) and an employee whom such help is given (counsellee). It may be formal
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or informal. Formal counselling is a planned and systematic way of offering help to
subordinates by expert counsellors. Informal counselling is concerned with day to
day relationship between the manager and his subordinates where help is readily
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offered without any formal plan.
Every manager has a responsibility to counsel his subordinates. When individual
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managers are unable to deal with specific problems, the counselling services of aprofessional body is required. An organization can either offer the services of a full-
time in-house counsellor or refer the employee to a community counselling service.
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Counselling occasionally is necessary for employees due to job and personal problems
that subject them to excessive stress. Counselling is discussion of a problem that
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usually has emotional content with an employee in order to help the employee copewith it better1. Counselling seeks to improve employee`s mental health. People feel
comfortable about themselves and about other people and able to meet the demands of
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life when they are good in mental health.
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The counselling need not be limited to work-related issues. Marital problems,problems with children, financial difficulties or general psychiatric problems may not
be directly related to the job, however, we recognize that individuals cannot
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completely separate their life away from the job from their life on the job. Therefore
personal problems do affect a worker`s job performance. So counselling is also
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necessary for personal problems along with work- related issues.Performance counselling involves helping an employee understand his own
performance, find where he stands in relation to others and identify ways to improve
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his skills and performance. It focuses, essentially, on the analysis of performance of
the job and identification of training needs for further improvement2.
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An increasingly popular form of counselling involves employees who are about readyto retire. Pre-retirement counselling prepares individuals to deal with the realities of
leisure, as well as outlining details about social security benefits and company pension
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provisions.
1.2. Counselling in Industry3
It is required of every manager to help his subordinate in the free exploration of his
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strengths, abilities, competence, interests and other related positive features. It
requires participation from both the parties in the performance review and goal-setting
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process. Thus, performance counselling has become an important feature not only inperformance review but also in the implementation of the appraisal system in the
organization.
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It is natural that subordinates need guidance, coaching or help of an experienced
person. This role may be played by the immediate superior or the personnel manager.
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The managers or superiors who have to play the role of counsellor` can play itsuccessfully if they develop the skill for counselling. Such a skill would be useful in
understanding subordinates, assisting them in their efforts to grow and develop, and in
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improving their interpersonal relations both at work and in the society at large.
Counselling is a two-way process in which a counsellor provides help to the workers
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by way of advice and guidance. There are many occasions in work situations when aworker feels the need for guidance and counselling. The term counselling refers to
the help given by a superior to his subordinate in improving the latter`s performance.
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It is in effect a process of helping subordinates to achieve better adjustment with his
work environment, to behave as a psychologically mature individual, and help in
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achieving a better understanding of others so that his dealings with them can beeffective and purposeful.
1.3. Objectives
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Counselling helps a person overcome emotional problems and weaknesses relating to
performance. It involves the following objectives:
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1. Provide empathic atmosphere of genuine concern about his difficulties,tensions, worries, problems, etc., so that he can freely discuss and share his
views with counsellor;
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2. Understand himself better and to gain knowledge about his potential, strengthsand weaknesses;
3. Gain an insight into the dynamics of his behaviour by providing necessary
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feedback;
4. Have better understanding of the environment in which he functions;
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5. Increase his personal and interpersonal effectiveness by assisting him inanalyzing his interpersonal competence;
6. Prepare alternate action plans for improving on his performance and behaviour.
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1.4. Characteristics of Counselling4
1. Counselling is an exchange of ideas and feelings between two people.
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2. It tries to improve organizational performance by helping the employees tocope with the problems.
3. It makes organization be more human and considerate with people`s problems.
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4. Counselling may be performed by both professionals and non-professionals.
5. Counselling is usually confidential in order to have free talk and discussions.
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6. It involves both job and personal problems.1.5. Need for Counselling
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Need for employee counselling arises due to various causes in addition to stress.
These causes include: emotions, inter-personal problems and conflict at place,
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inability to meet job demands, over-work load, confrontation with authority,responsibility and accountability, conflicts with the superiors, subordinates and
management and various family problems, health problems, career problems etc.
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1.6. Functions of Counselling
The general objective of counselling is to help employees to improve their mental
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health and develop in self-confidence, understanding, self-control and ability to workeffectively. This objective can be achieved by performing various counselling
functions. They are:
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1. AdviceOne of the important functions of counselling is offering advice to the counselee. The
counsellor has to understand the problem of the counselee completely, before offering
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advice and suggesting a course of action.
2. Reassurance
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In order to give courage to face a problem confidently, counselling providesemployees with reassurance. Normally reassurance is not acceptable to the counselee.
However, it is useful in some situations.
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3. Communication
Counselling will improve both upward and downward communication abilities of the
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counselees.4. Release of Emotional Tension
Releasing emotional tension is an important function of counselling. People feel
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emotional release from their frustration after counselling. Release of tension may not
solve the entire problem, but run over mental blocks to the solution.
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5. Clarified Thinking
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Release of tension and thereby removal of mental blocks to the solution through
counselling allows the counselee to think freely and objectively. Thus, clarified
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thinking tends to be the result of emotional release.6. Reorientation
Reorientation is not just emotional release or clear thinking, but it involves a change in
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the counselee`s psychic self through a change in the basic goals and values.
1.7. Benefits
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Performance counselling takes a positive approach. The underlying philosophy isquite simple: People can grow and improve their competence and performance with
timely help and proper coaching. An effective counsellor-manager is one who helps
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his employees to become more aware of their strengths and weakness and helps themto improve further on the strong points and overcome weaknesses`. Counselling,
generally speaking, offers the following benefits to the counselee:
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1. He learns to respond and adjust more positively to people and situations
2. He is able to improve his personal effectiveness
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3. He is able to clear the mind of emotional irritants; overcome his personalweaknesses and work more effectively.
4. He feels more relaxed when he is able to share his concerns and problems with
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a trusted friend, the counsellor who assures confidentiality and extends a
helping hand readily.
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II. TYPES, METHODS AND PROCESS OF EMPLOYEE COUNSELLING1.2.1. Types of Counselling
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In attempting to help an employee who has a problem, a variety of counselling
approaches are used. All of these approaches, however, depend on active listening.
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Sometimes the mere furnishing of information or advice may be the solution to whatat first appeared to be a knotty problem. More frequently, however, the problem
cannot be solved easily because of frustrations or conflicts that are accompanied by
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strong feelings such as fear, confusion, or hostility. A manager, therefore, needs to
learn to use whatever approach appears to be suitable at the time. Flexibility is a key
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component of the counselling process.1. Directive Counselling
It is full counseling. It is the process of listening to an employee`s problem, deciding
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with the employee what should be done and telling and motivating the employee to do
it5. This type of counselling mostly does the function of advice, reassurance and
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communication. It may also perform other functions of counselling.--- Content provided by FirstRanker.com ---
2. Nondirective CounsellingIn nondirective counselling, the employee is permitted to have maximum freedom in
determining the course of the interview. It is the process of skillfully listening and
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encouraging a counselee to explain troublesome problems, understand them and
determine appropriate solutions6. Fundamentally, the approach is to listen, with
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understanding and without criticism or appraisal, to the problem as it is described bythe employee. The employee is encouraged, through the manager`s attitude and
reaction to what is said or not said, to express feelings without fear of shame,
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embarrassment, or reprisal.
The free expression that is encouraged in the nondirective approach tends to reduce
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tensions and frustrations. The employee who has had an opportunity to release pent-up feelings is usually in a better position to view the problem more objectively and
with a problem-solving attitude.
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3. Participative Counselling
Both directive and non-directive methods suffer from limitations. While the former is
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often not accepted by independent employees, the latter needs professionals to operateand hence is costly. Hence, the counselling used in most situations is in between these
two. This middle path is known as participative counselling. Participative is a
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counselor-counsellee relationship that establishes a cooperative exchange of ideas to
help solve an employee`s problems. It is neither wholly counsellor-centred nor wholly
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counselee-centred. Counsellor and counselee mutually apply their differentknowledge, perceptions, skills, perspectives and values to problem into the problems
and find solutions.
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These methods of counselling can be used depending upon the problem, employee,
situation, availability and ability to employ professional counsellors.
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Non-directiveParticipative
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DirectiveCounselling
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Counselling
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Counselling
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Low Direction
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Medium Direction
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High Direction
Source: Keith Davis and John, W. Newstrom, op. cit., p.498.
1.2.2. Methods of Counselling7
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Effectiveness of counselling largely depends on the methods and techniques as well as
the skills used by the counsellor. Methods and techniques change from person to
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person and from situation to situation. Some of the assessment tools are psychologicaltesting, statistical methods, Attitude Measurement, Caring Relationship Inventory,
Interpersonal Behaviour Surveys, Observation, Taylor-Johnson Temperament
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Analysis, etc.
It involves the following methods:
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1. DesensitizationAccording to Desensitization, once an animal has been shocked in a particular
situation, it will continue to avoid it indefinitely. This is quite true in respect of human
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beings also. Once an individual is shocked in a particular situation, he gives himself
no chance for the situation to recur. This method can be used to overcome avoidance
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reactions, so as to improve the emotional weak-spots.If an employee is once shocked by the behaviour, approach or action of his superior,
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he would continue to avoid that superior. It is difficult for such superiors to be
effective counsellors, unless such superiors prove otherwise through their behaviour or
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action on the contrary. Similarly, once an employee is shocked by a particularsituation, he can be brought back to that situation only if he will be convinced through
desensitization that the shock will not to take place further. Counsellor can make use
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of desensitization in such situations.
2. Catharsis
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Discharge of emotional tensions can be called catharsis. Emotional tensions can bedischarged by talking them out or by relieving of the painful experience which
engendered them. It is an important technique as a means of reducing the tensions
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associated with anxiety, fear, hostility, or guilt. Catharsis helps to gain insight into theways an emotional trauma has been affecting the behaviour.
3. Insight
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With the help of insight one may find that he has devalued himself unnecessarily, or
his aspirations were unrealistic, or that his childish interpretation of an event was
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inaccurate. Then he can overcome his weakness.4. Developing the new patterns
Developing new patterns becomes very often necessary when other methods to deal
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with weak spots remain ineffective. In order to develop new, more satisfying
emotional reactions, the individual needs to expose himself to situations where he can
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experience positive feelings. The manager who deals with such individuals maymotivate or instigate them to put themselves into such situations, so that their self-
confidence may increase.
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Every counsellor must concentrate his full attention on two aspects viz., using of
assessment tools, and utilizing counselling methods, choice of which differs from
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person to person, situation to situation, and from case to case.1.2.3. The Process of Counselling: Sequential Steps8
The counselling process has three phases: rapport building, exploration and action
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planning, these are discussed below:
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1. Rapport Building
Initially the counsellor-manager should level himself with his employee and tune
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himself to his orientations. General opening rituals like offering a chair, closing the
door to indicate privacy, asking the secretary not to disturb are all important in
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demonstrating the manager`s genuine interest in employee`s problems. The counsellormust listen to the feelings and concerns of the employee carefully and attentively.
Leaning forward and eye contact are important signs of active listening. The
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employee must feel that he is wanted and the counsellors is interested in himgenuinely.
2. Exploration
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Besides active listening, the counsellor should help the employee find his own
weaknesses and problems through open and exploring questions. He should be
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encouraged to open up fully and talk more on the problem. This would enable bothparties to uncover various dimensions of the problem clearly. Once the key issue is
identified, (e.g., inability to get along with colleagues, not being promoted despite
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hard work, boss does not like his work etc.,) it should be diagnosed thoroughly. Open
questions like- why do people pick arguments with you? On what occasions did you
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try to get ahead in the race? Who are coming in your way and why? ? may help theemployee visualize the problem from different angles. The whole exercise is meant to
generate several alternative causes of a problem.
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3. Action Planning
Counselling should finally help the employee find alternative ways of resolving a
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problem. The list of alternatives could be generated after two or three brain stormingsessions. The merits and limitations of each course of action could also be identified
and the best course of action picked up-keeping the background factors (boss,
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colleagues, work-related issues, competitive pressures etc.) in mind. The employee
should be encouraged to self-monitor the action plan without seeking further helps
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from the counsellor. The counselling sessions could be monitored and reviewed atregular intervals later on.
1.2.4. Effective Counselling9
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Counselling is an art. It requires serious effort on the part of the counselee to learn
from each situation and stand on his own. The counsellor is there to lend a helping
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hand, clarify things, enable the counselee look at the picture himself clearly, show thealternative paths and suggest action plans for improvement.
The prerequisites for effective counselling are as follows:
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1. Open two-way communication between the counsellor and the worker.2. Genuine concern of the counsellor for providing necessary help to the worker
and develop him further; and
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3. Influence by the counsellor by recognizing worker`s feelings, by sharing his
experience and ideas, by posing questions that stimulate his thinking, and by
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helping him to solve his problems.The counsellor should give sufficient importance to the communication process by
listening carefully to what the subordinate has to convey and by, being responsive to
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the same. Any movement which distracts the subordinate`s attention should be
controlled e.g. fidgeting with paper weight, clip, pencil, rubber and etc. Moreover, it
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is essential to generate the necessary confidence in the subordinate and to assure himthe counsellor`s interest in helping him.
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III. TYPES OF PROBLEMS FOR EMPLOYEE COUNSELLING
1.3.1. Problems in Counselling
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A manager has to deal with various types of problems in dealing with his subordinates,
employees and particularly problem employees. Basically no employee is a problem
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employee, except hereditary and inborn perversions, criminal tendencies, addictions,and nervous and psychological breakdowns. Once an employee turns to be a problem
employee, the employer has mainly two options viz., repair and recover, or replace.
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For the purpose of repairing and recovering and rehabilitating, counselling has an
important role to play. Problems are generally associated with the causes like:
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1. Inferiority and Low Self-EsteemInferiority feeling of an employee may play great havoc in individual life and work.
Though a mild form of inferiority in certain persons may help them to work hard and
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overcome the inferiority. But very often, inferiority complex may lead a person to
utter disappointment and depression leading to withdrawal perversion, absenteeism
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and even psychosomatic and psychotic problems.Inferiority is a feeling of inadequacy in comparison with others, or a feeling of being
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inferior to others. When the inferiority feelings in a person become overwhelming andpersisting, it may develop into a state which Adler called inferiority complex.
Recently thinkers started believing that inferiority can be overcome with the help of
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self-esteem, and effective counselling helps in gaining self-esteem.
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Self-esteem is closely linked with self-image, self-worth and self-concept. Self-concept and self-image are the terms which represent the picture which we have of
ourselves. Self-image and self-concept may include a list of character traits, physical
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features, attitudes, feelings, strengths, weaknesses etc. Self-esteem refers to the
evaluation which an individual makes of his worth, competence, value and
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significance.When a person loses self-esteem, he develops inferiority in him, which grows into an
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inferiority complex. Such people do not feel worth of themselves. Hence, the basic
task of a counsellor is to improve self-esteem in such counselees.
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2. Injustice or Ill-treatmentVery often injustice or ill-treatment make considerable impact in their minds resulting
in behavioural problems, inferiority and low self-esteem. Depriving an employee of
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adequate wages, leave, or any perks, giving him an arrogant treatment, depriving a
legitimate promotion, promoting somebody overlooking the legitimate candidate; may
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such incidents take place in organizations very often which may result in inferiorityfeeling or feeling of low self-esteem and low morale affecting the efficiency of the
aggrieved employee. As far as possible such incidents must be avoided. Once such a
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situation arises and an employee is aggrieved, it is better to rectify it. However, if the
aggrieved employee is counselled and rectification is promised at a later date, he or
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she can be brought back to the proper track.3. Premarital Anxieties and Sexual Perversions
Premarital anxieties are common in many young employees. Once the marriage is
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arranged and the person is engaged, his anxiety increases. Two people of differentfamily backgrounds, different cultures, different environments, etc., are bound to have
anxieties before they come together. If one happens to wait unmarried after a
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particular age too, one`s anxiety is bound to increase. Similarly, there are possibilities
for sexual perversions in not only young employees but even in married employees.
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There are people with broken relationships who are tempted to be subject to sexualperversions and resulting guilty conscious. In all such cases the concerned employee
needs counselling before a total breakdown and collapse of personality. Such people
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can be spiritually motivated, educated, kept under the close contact of an influence
group, and so on.
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4. AlcoholismAlcoholism is, perhaps, the largest threat to the human element of organization. In
fact, alcoholism is a serious social, moral and health problem. It ruins careers, disrupts
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families, affects productivity and efficiency, destroys bodies, and leads to untold
human misery. Many traffic accidents are caused by alcohol abuse.
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a. Causes of AlcoholismThere are many causes which lead to alcoholism. Prominent among them are:
(i) Hereditary drinking; (ii) Executive culture; (iii) Executive stresses;
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(iv) Physiological reasons; (v) Broken family set up; (vi) Environmental influence;
(vii) Low job satisfaction and morale; (viii) Tasks involving strenuous physical
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exertion; (ix) Perpetuating influences ; (x) Feelings of depression and stagnation; and(xi) Feeling of isolation and loneliness.
A counsellor`s job is not easy as far as an alcoholic is concerned. One or a few
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counselling sessions may not yield any considerable effect. However, a sincere efforton the part of an executive-counsellor may help an alcoholic employee, at least in the
long-run. Some medical intervention may also be helpful along with counselling.
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5. The problem of Addictions
Another important employee problem which deserves counelling is addictions.
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Addiction is a very dangerous problem which torments the social and workenvironment of today. Drug addiction has gone beyond proportions among youngsters
now-a-days. Not only drug addiction, many people are addicted to alcohol,
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pornographic materials, television, sexual immorality, smoking, compulsive spending,
overeating, gambling, and so on. There are some people who are addicted to earning
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money and amassing wealth by hook or by crook. There are workaholics who haveaddiction to work, due to which there are many broken families in the urban society.
Addiction is any habit, practice, behaviour or even thinking which is habitually or
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compulsively attached to a person, which exerts more and more control and power
over him. There can be many causes for addiction; some of which are :
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(i) Inadequate parental care; (ii) Broken family atmosphere; (iii) Bad company; (iv)Peer or other social influence; (v) Feeling of emptiness in life; depression or stresses;
(vi) Low self-esteem and deception; and (vii)Psychological problems.
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Both drug addiction and alcohol abuse involve behaviour change, physical
deterioration, family stresses, financial problems, career destruction, increasing
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psychological disintegration, lawlessness and so on. Addiction affects both the victimand his family. Even the psychologists and counsellors may exhaust and drain
themselves out by constant pressure of dealing with addicts. Hence, it is not an easy
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task for executives to deal with such cases. However, very tactful approach on the part
of the executives and managers may make a considerable effect in helping them if
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they act in time. A stitch in time saves nine.6. Mental Conflict in Union Rivalries
In recent times, there are many employees who lose their confidence, mental peace,
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job satisfaction and productivity due to union rivalries. Many right thinking andunattached employees become the victims of such rivalries. Some militant trade union
leaders and their henchmen even manhandle assault and ill-treat such employees.
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Their legitimate promotions and claims are blocked by such trade unionists.
Sometimes even management becomes helpless in doing justice to such employees
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due to the obstructions and resistances created by such union leaders.In such situations victims are bound to be disappointed, disgruntled and aggrieved
resulting in depression and stress. Executive counsellors and human resources
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executives have great role to play in rebuilding the personality and career through
counselling and timely intervention. They can be recovered, and revitalized through
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counselling and timely guidance. They can then be exposed and developed throughtraining followed by redeployment and a change in placement.
7. Breakdown in Interpersonal Relationships
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Breakdown in interpersonal relationships is another important problem which creates
low morale and depression in work-life which deserves timely intervention and
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counselling. There are many stress situations in one`s work life. Organizational causesof stress are occupational demands, role conflict, role ambiguity (stress from
uncertainly), stresses from overload and under load, responsibility for others, stresses
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from evaluation, poor working conditions, unwanted changes, and such other factors
lead to personal stresses. Interpersonal stresses make more impact in work life.
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Strains and breakdowns in interpersonal relationships have direct relationship withindividual stresses. When cordial relationships exist in the work place, impact of other
stresses may get effectively tackled. But when stresses from strained interpersonal
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relationship in the work environment increase, the individual`s effectiveness, balance
and productivity can get affected. In all such occasions, counselling and guidance
would become necessary to help the individual to control his problem emotions and
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sustain himself to be effective in the group.
8. Low Job Satisfaction and Morale
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Another important cause which affects the human behaviour in organization is low jobsatisfaction backed by low morale. Low job satisfaction leads to low morale and vice
versa. According to Kolasa10, morale and job satisfaction are closely tied to the basic
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concepts of attitudes and motivation. Katz11 and associates have identified four
measures of general job satisfaction viz., (1) Pride in work group; (2) Intrinsic job
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satisfaction; (3) Company involvement; and (4) Financial and job status satisfaction.Wages have been found to be the basic determinant of job satisfaction. However, once
the monetary needs are considerably met by the wages, other aspects like self-
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actualization, fulfillment, working conditions, security of employment, prestige,
agreeability of the job, group cohesiveness, expertise, etc., also determine the job
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satisfaction. Some researchers (for example Hoppock) have thrown light on thepositive relationship between occupational level and job satisfaction. Accordingly to
Morse, job satisfaction has a considerable relation with the promotion possibility.
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Superior-subordinate relationship and cooperative and affectionate attitude and
approach of the superior may also influence the job satisfaction level of the
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subordinates, though much empirical work has not been done in this area.Low job satisfaction and low morale must be tackled at the root. Immediate supervisor
or superior may first come to know about the problem in his subordinate and initiate
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timely and sincere counselling efforts. At times, assistance of professional counsellors
can be sought. Every manager must make up his mind to nip in the bud all such
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problems which adversely affect job satisfaction and morale with the help of skillfulcounselling.
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9. Breakdown in Family Life
Every individual, rich or poor, has to face many family problems, some of which can
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seriously affect the peace of mind, happiness, achievement motivation and efficiency.
Those who have broken family lives and serious family problems may possibly
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become unsuccessful in their work life too. Very often problem which affect thefamily life can convert a good employee into a problem employee. Studies have
already proved that some alcoholics and drug addicts are the products of broken
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families. In fact, breakdown in family life very often affects the work life. Hence, if
such employees are provided with ways to release their tension, their efficiency can be
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improved. Counselling is of great importance in such cases once such employees canbe brought to proper track with the help of counselling, their personality, behaviour
and performance can be improved with the help of exposure in training, T-group
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formation, etc., so that better sense of cohesion and commitment to organization can
be ensured.
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References:1. Peter C.Cairo, Counselling in Industry, Personnel Psychology, Spring
1983 p.1-18.
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2. Udai Pareek, T.V. Rao, Designing and Managing Human Resource
System, Oxford IBH, New Delhi, 1995.
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3. B.P. Singh, T.N. Chhabra and P.L. Taneja, Personnel Management andIndustrial Relations, Dhanpat Rai and Sons, 1990,p.357.
4. P. Subba Rao, Essentials of Human Resource and Industrial Relations,
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Himalaya Publishing House, 2000, p.320-321.
5. Keith Davis and John W. Newstroom, Human Behaviour at Work,
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McGraw Hill Book Co., New York, p.498.6. Ibid p. 499.
7. V.P. Michael, Human Resource Management and Human Relations,
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Himalaya Publishing House, 2002, p.425-426.8. V.S.P. Rao, Human Resource Management Text and Cases, Excel
Books, 2005,p.662-663.
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9. Ibid, p.664.
10. Blair J. Kolasa, Introduction to Behevioural Science for Business,
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wiley Eastern, New Delhi, 1970.11. Katz, Maccoby and Morse, Productivity, Supervision and Morale in an
Office Situation, Institute of Social Research, University of Michigan,
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1950.
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CONSULTATIVE BODIES ? TRIPARTITE AND BIPARTITEThis lesson comprises three units. The first unit dwells upon the evolution and
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different tripartite bodies. The second unit takes care of bipartite bodies to
resolve the conflicts. The third unit discuss about the bipartism link with
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tripartism and mutual contribution to each other.I.TRIPARTITE BODIES
2.1.1. Prelude
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Tripartism is a system of labour relations in which the state, employers, and
workers are autonomous yet interdependent partners, pursuing common interests
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and participating in decisions affecting them in a binding spirit of mutuality andreciprocity. This can take place at either or both macro and micro levels.
Tripartite consultation is an important feature of India`s industrial relations
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system. It has a long history in India as it was set up as early as 1942. The Indian
Labour Conference (ILC) and the Standing Labour Committee (SLC) are two
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main forums for Tripartite Consultation. The objectives of TripartiteConsultation could be mentioned as under:
i.
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To promote uniformity in labour legislation.
ii.
To lay down a procedure for settlement of industrial disputes.
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iii.
To consider matters of importance to both the managements and
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labour.Tripartite forums evolve norms or standards in the form of guidelines.
There are a number of tripartite bodies which operate at the Central and State
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levels. The Indian Labour Conference, Standing Labour Committees, Wage
Boards and Industrial Committees operate at the Central level and State Labour
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Advisory Boards operate at the state level. All these bodies play an importantrole in reaching at voluntary agreements on various labour matters. Though the
recommendations of these bodies are only advisory in nature they carry
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considerable weight with the government, workers and employers. Some
important measures agreed to by the Indian Labour conference in past are:
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1. Setting up of bipartite works committees, joint consultative andproduction committees.
2. Adoption by employers and unions of a voluntary code of discipline;
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3. Following proper grievance and disciplinary procedures;
4. Deciding norms for fixing need based wages;
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5. Rationalizing and revising wage structures of important industriesthrough non-statutory wage boards; and
6. Encouraging voluntary arbitration for the settlement of industrial
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disputes.
Industrial relations in India have been shaped largely by principles and policies
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evolved through tripartite consultative machinery at the industry and nationallevels. The aim of the consultative machinery is to bring the parties together for
mutual settlement of differences in a spirit of co-operation and goodwill. The
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role of the tripartite machinery has been summarized by the Planning
Commission thus1. Labour policy in India has been evolving in response to the
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specific needs of the situation in relation to industry and the working class andhas to suit the requirements of planned economy. A body of principles and
practices has grown up as a product of joint consultation in which
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representatives of government, the working class and the employers have beenparticipating at various levels. The legislative and other measures adopted by
government in this field represent the consensus of opinion of the parties vitally
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concerned and thus acquire the strength and character of a national policy,
operating on a voluntary basis.
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A large number of tripartite bodies have been set up by the government toprovide a forum of discussion and consultation on various labour-related issues.
Among these bodies, a few notable ones are:
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1. The Indian Labour Conference (ILC);
2. The Standing Labour Committee (SLC);
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3. The Committee on Conventions;4. The Industrial Committee; and
5. Other bodies of tripartite nature deals with various aspects of labour
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problems.
There are 44 tripartite committees at the national level. Additionally, in the
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public sector, there is a national-level bipartite machinery in select coreindustries, such as banking, coal, oil, port, transport and steel. Such bipartite
arrangements also exist at the industry-cum-region level in jute, engineering,
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plantations, textiles, etc., which are predominantly in the private sector.
2.1.2. Evolution of Tripartite Bodies
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The need for consultation on labour matters on the patterns set by the I.L.O. wasrecommended by the Whitley Commission in 1931. It envisaged a statutory
organization which should be sufficiently large to ensure adequate
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representation of the various interests involved; but it should not be too large to
prevent the members from making individual contributions to the discussion.
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The representatives of employers, of labour and of government should meetregularly in conference. The commission also recommended that labour
members should be elected by registered trade unions and employers`
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representatives should be elected by their associations.2But the recommendation was not implemented and nothing could be done in this
respect till the outbreak of the Second World War, which necessitated the need
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for maintenance of industrial peace. During the Second World War separate
consultations with the representatives of labour and employers were held in
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1941 and 1942 by the Government of India to finalize post-war labourprogrammes. The experience of these consultations highlighted the necessity of
holding joint meetings of the representatives of the government, workers and
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employers, thus, providing a common platform for the resolution of differences
between the employers and workers by means of discussion and mutual
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understanding. Accordingly, the Fourth Labour Conference was held in August1942. It set up a permanent tripartite collaboration machinery and constituted a
Preliminary Labour Conference (later named as the Indian Labour Conference ?
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ILC) and the Standing Labour Advisory Committee (which subsequently
dropped the word Advisory from its title SLC). Initially the ILC consisted of 44
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members whereas the SLC was about half the size of the ILC. The pattern ofrepresentation was governed by the obtaining in the International Labour
Conference. It ensured:
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i. Equality of representation between the government and the non-
government representatives;
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ii. Parity between employers and workers;iii. Nomination of representatives of organized employers and labourers was
left to the concerned organizations; and
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iv. Representation of certain interests (unorganized employers and
unorganized workers), where necessary, on an adhoc basis through
nomination by government. The delegates are free to bring one official
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and one non-official adviser with them3.
2.1.3. Tripartite Bodies
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(1 and 2) Indian Labour Conference and Standing Labour CommitteeBoth ILC and SLC are two important constituents of tripartite bodies. They play
a vital role in shaping, the I.R. system of the country. A brief account of these
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bodies is discussed here:
The objects of the Indian Labour Conference (ILC) are:
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a. To promote uniformity in labour legislation;b. To lay down a procedure for the settlement of industrial disputes;
and
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c. To discuss all matters of all-India importance as between
employers and employees.
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The function of the ILC is to advise the Government of India on any matterreferred to it for advice, taking into account suggestions made by the provincial
government, the states and representatives of the organizations of workers and
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employers.
The Standing Labour Committee`s (SLC) main function is to consider and
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examine such questions as may be referred to it by the Plenary Conference orthe Central Government, and to render advice taking into account the
suggestions made by various governments, workers and employers.
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The representatives of the workers and employers were nominated to these
bodies by the Central Government in consultation with the all-India
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organizations of workers and employers.The agenda for ILC/SLC meetings was settled by the Labour Ministry after
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taking into consideration the suggestions sent to it by member organizations.
These two bodies worked with minimum procedural rules to facilitate free and
fuller discussions among the members. The ILC meets once a year whereas the
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SLC meets as and when necessary.
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i. The rules and procedures, which characterize the Indian tripartiteconsultative machinery, are largely in tune with the recommendations of
the ILO Committee on consultation and co-operation. (Recommendation
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No.113).
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A detailed account of various resolutions adopted by the ILC`s in their last twosessions is presented here:
a. The 30th Session of the Indian Labour Conference
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The 30th Session of the ILC was held on September 7-8, 1993 at New Delhi.
After deliberations, it arrived at the following conclusions4.
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1. On the impact of New Industrial Policy, the chairman referred to theassurance by the Prime Minister that it would not lead to any human distress
and the legitimate interests of labour would be protected.
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2. In regard to retraining and redeployment, the conference desired
identification of labour for such retraining and redeployment and a scheme
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for industry-wise and occupation-wise redeployment. The conference alsoexpressed the view that Government should identify the agency for
retraining and their redeployment. The conference also wanted to know how
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labour of one unit would be redeployed in another unit.
3. For absorption of surplus labour, if any, as for maximizing capacity
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utilization, the conference suggested diversification and broad-basing byworking the units round the clock and on all days of the week.
4. The conference expressed its serious concern at the low productivity of
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Indian industry and expressed its determination to improve wherever
necessary its productivity, enhance its quality and reduce the price of goods
to make them internationally competitive. The conference decided to strive
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for improvement in discipline and attitude to work at all levels. It also
decided that bipartite efforts to improve productivity and quality should be
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institutionalized.5. The Trade Unions demanded:
i. The removal of ceiling on bonus both for eligibility and for computation
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by promulgation of an ordinance;
ii. The immediate implementation of the DA rate of Rs.2 per point of the
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Consumer Price Index (1960 series).iii. Permission for the managements of the public sector units to commence
negotiations with the unions on their charter of demands immediately.
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iv. Clearance by government to the agreement regarding pension and for the
pension scheme for its early introduction.
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v. Enhancement of the rate of interest on Employees` Provident Fund to atleast 13 per cent.
vi. Enhancement of the limits of exemption of income tax substantially.
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6.
The employers wanted postponement of the decision on removal of ceiling
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on bonus both for eligibility and computation of bonus by one year so thata well- thought out scheme could be evolved. They also wanted
productivity linked bonus as prescribed under the law.
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7.
The trade unions indicated that the first National Commission on Labour
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was appointed about 25 years ago and a time had come to set up anotherNational Commission on Labour to examine the issues that labour was
facing today in view of the many changes that has occurred in the
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meantime.
8.
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The Labour Cell in the Planning Commission may be revived to facilitateconsultation with trade unions while formulating policies concerning
labour. The view expressed by the participants in the conference with
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regard to employment policy may be conveyed to the PlanningCommission for its consideration and for the consideration of the two Sub-
Committees of the Planning Commission/ NDC which are considering
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strategies for implementation of the employment policy.
b. 31st Session of I.L.C
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This session of I.L.C was held at Delhi on 3rd-4th January 1995. In this sessionvarious problems of industrial relations in the context of changed economic
environment were discussed. The various resolutions adopted at the said
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conference are as under.
1. The institution of the Indian Labour Conference should be strengthened
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further2. The Central and State Governments and the social partners should come
together in making the comprehensive industrial relations law a reality and
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an instrument of production, productivity, employment generation and
enhancement of living standards.
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3. Productivity of economic enterprises as a whole is of paramount importance.4. The government should give special attention to streamlining the public
distribution system, particularly in centers of concentration of working
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people.
5. The Government should review the situation arising out of the wage
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negotiations in Central Public Sector Undertakings and should facilitatespeedy conclusion of wage negotiations and settlements.
6. The worker`s representatives demanded that the eligibility and calculation
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ceilings under the Payment of Bonus Act should be scrapped, whereas the
employers` representatives demanded that a quick decisions should be taken
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on introduction of DA slabs.7. The government should introduce the Pension for Provident Fund
subscribers on priority basis and there should be tripartite consultations
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before its introduction. Management of Social Security Funds should beprofessionally handled so as to maximize the returns on investments.
8. Steps should be taken for speedy and orderly investigation into the
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rehabilitation of sick industrial enterprises registered with the BIFR,
minimizing distress for the workers and disabilities for the employers.
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9. The constitution and the functioning of the National Renewal Fund shouldbe reviewed such that the Fund truly serves the purpose of industrial renewal
and regeneration and creation of employment opportunities.
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10. Implementation of training programmes should be undertaken within the
framework of a well thought-out plan.
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11. The Central and State Governments should give high priority to allocation ofresources for elementary and vocational education. Special attention should
be given to the education of women.
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12. The government should enact, on priority basis, laws for covering
agricultural and construction workers.
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13. The Labour Ministry should set up an Advisory Body to review, from timeto time, the status of women.
14. The Constitution of the Child Labour Advisory Committee should be
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reviewed to ensure that it is fully representative of the social partners.
15. Representatives from workers` and employers` organizations should be
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included in the National delegation to the World Summit for SocialDevelopment.
16. The Vocational Training System in the country should be reorganized.
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17. The resolutions of the 32nd Session of the Standing Labour Committee in
respect of the social clause, child labour elimination and bonded labour were
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fully endorsed. The social partners should take further follow up action onthe resolutions.
18. The new International Economic Order holds out vast opportunities for
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economic betterment and upgradation of the living standards of the people.The risks involved in formulating and implementing economic policies to
avail of these opportunities should be so handled as to minimize human
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distress5.
c. The 31st Session of Standing Labour Committee
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The 31st session of S.L.C was held in New Delhi on July 25, 1992. TheCommittee arrived at the following conclusions:
1. It was resolved that future sessions of the Standing Labour Committee
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(SLC) should carry fewer items on the agenda so that these could be
discussed in greater detail.
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2. It was resolved that Government may bring specific proposals for newIndustrial Relations Law in the ensuring session of Indian Labour
Conference which should reflect the needs of the qualitative change in the
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industrial/economic scenario in the national/global context.
3. It was resolved to set up a tripartite sub-committee to review the
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implementation of important Labour laws.4. It was resolved to set up an autonomous Bipartite Productivity Councils at
the national, regional, industrial and plant levels.
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d. The 32nd Session of Standing Labour Committee
The thirty second session of the Standing Labour Committee was held in New
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Delhi on October 27, 1994. It discussed various issues concerning employment,vocational training, child labour, bonded labour, labour standards and
international trade. It adopted three important resolutions discussed below:
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(a) Social Clause: It was agreed that the government along with employers and
labour organizations would resist in I.L.O. and all other fora any attempt to
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introduce Social clause, in relation to carrying our marketing at theinternational level, contingent upon enforcement of labour standards.
Further, it advocated sustained national and international action for
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upgrading labour standards without any trade linkage.(b) Child Labour: With respect to child labour, it remarked that the Central
and State Governments and Organizations of employers and workers should
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take co-ordinated action for the elimination of child labour in hazardous
occupations by the year 2000 and in other employments progressively. It
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also emphasized that both Central and State Governments should implementtime bound and action plans to take away children from work and provide
them education, primary vocational training, health and nutrition and
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concurrently provide to the parents of such children gainful employment.
(c) Bonded Labour: It exhorted that all states should take fresh surveys for the
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identification release and rehabilitation of bonded labour. Besides this,measures shall be initiated to check the relapse of bondage of such labour.
(3) Committee on Conventions:
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This is a three-man tripartite committee set up in 1954. The object was (i) to
examine the ILO conventions and recommendations which have not so far been
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ratified by India; and (ii) to make suggestions with regard to a phased andspeedy implementation of ILO standards.
(4) Industrial Committees
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The eighth session of the ILC (1947) decided to set up Industrial Committees
to discuss various specific problems special to the industries covered by them
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and submit their report to the Conference, which would co-ordinate theiractivities. These committees are tripartite bodies in which the number of
workers` representatives is equal to the number of employers` representatives.
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They do not meet regularly; meetings are considered afresh each time a session
is called.
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The committees that were set up immediately after independence related to
plantations, cotton textiles, jute, coal mining, mines other than coal, cement,
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tanneries, and leather goods manufactures, iron and steel, building andconstruction industry, chemical industries, road transport, engineering
industries, metal trades, electricity, gas and power, and banking.
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A special tripartite committee was constituted by the Ministry of Labour
November 1992 to study the impact of the new industrial policy on various
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labour and other problems and for making useful recommendations. Thecommittee in its meetings on December.21, 1991 and January.21, 1992 took a
note of the analysis of the performance of public sector units made by the
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department of public enterprises in its monograph on performance status central
public sector enterprises and recognized that some of the public sector units are
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chronically sick required radical treatment. The committee decided setting up ofTripartite Industrial Committees to examine endemically sick units and suggest
preventive measures6.
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As per the recommendations of special tripartite committee six industries
committees viz... (1) cotton textiles, (2) jute, (3) chemicals, (4) engineering, (5)
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electricity, (generation and distribution), (6) road transport were revived. On themajor conclusion of these tripartite committee was that there should be case by
case discussion on sick unit for their revival and before taking a final decision
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on sick PSUs, BIFR should be urged to consider the views of tripartite
committees. Another important conclusion of the tripartite committees was that
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at the enterprise level workers and management should prepare a joint revivalplans on the basis data supplied by the concerned administrative
ministry/management. The revival proposal would then be considered by the
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Sectorial tripartite committee7.
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a. Other committees
(1) Committee on N.T.C. Turnaround
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The Labour Ministry constituted a special committee to consider the turn-
around strategy for NTC on June 26, 1993. On the recommendation of this
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committee, a sub-committee was constituted to consider the implementation
of turnaround strategy. It had eight rounds of meetings. This committee led
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to the final agreement on April 9, 1994 for the modernization of N.T.C(2) Committee on Plantation:
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For the effective amendment of the Plantation Labour Act, 1951, a Tripartite
Committee on Plantation was reconstituted. The first meeting of the
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committee took place on April 27, 1994.A sub-committee of the tripartite committee also considered the specific issue
relating to medical facilities was held on April 27, 1994. The consensus arrived
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at meetings called for amendment in Plantations Labour (Amendment) Bill 1992
(that was earlier introduced by the government in the Rajya Sabha).
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The 41st session of the Labour Ministers conference was in held New Delhi. OnAugust 13, 1992 under the chairmanship of Union Minister of State for Labour.
After deliberations on various issues it arrived at the following conclusion:
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(i) The Ramanujan Committee report on trade unions was considered by
the conference it was decided to place the report before the next I.L.C.
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(ii) It was decided to appoint a committee of labour ministers to go into therecommendations of National Commission on Rural Labour (NCRL)
pertaining to (1) Social Security, (2) Central legislation for agriculture
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labour, (3) Central legislation for construction workers, (4) Appointment
of National Commission on Bonded Labour.
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(iii)It was decided to convene a labour minister conference to consider thequestion of improvement of quality of medical services rendered under
the E.S.I.C.
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(iv) It was held that restriction on the employment of outsider and theproblem of inter state migrant worker needs serious consideration and
therefore be referred to inter state and even to the national integration
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council.
For safeguarding the interest of child labour it was emphasized that the Child
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Labour (Prohibition and Regulation) Act, 1986 needs more effectiveimplementation. The conference also called for the amendment of the Act.
(5) Other Tripartite Committees
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Besides the various committees discussed earlier, all those committees that have
been playing a vital role in the implementing a uniform and co-ordinated labour
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policy in the country are discussed under this head. A few important committeesare:
(a) Steering Committee on Wages
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It was set up in 1956 as a study group on wages and was subsequently
reconstituted as the steering committee on wages. It consists of representatives
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of state governments, employers and workers and an economist. The functionsof this committee are: (i) to study trends in wages. production and prices; (ii) to
plan collection of material for drawing up a wage map of India; and (iii) to draw
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up reports from time to time for laying down principles which will guide wage
fixing authorities.
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(b) Central Implementation and Evolution MachineryThe 18th session of the Standing Labour Committee in 1957 recommended the
setting up of a special machinery at the Centre as well as in the states to ensure
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proper implementation of labour awards, agreements and Code of Discipline.
--- Content provided by FirstRanker.com ---
The implementation machinery at the Centre consists of an Evaluation andImplementative Division and a tripartite implementation committee, consisting
of 4 representatives each of central employers` and workers` organizations with
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the union labour minister as chairman.(c) Central Boards of Workers' Education
Was constituted to encourage the growth of strong and well-informed trade
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union movement conducted by the workers themselves on responsible and
constructive lines. This consists of representatives of employers and workers,
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and of central and state governments.(d) National Productivity Council
Consists of representatives of the government, employers` associations,
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labourers` organizations and certain independent experts. It encourages the
productivity in the country.
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II. BIPARTITE BODIES
Bipartism is a system of industrial relations where social and labour issues are
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discussed between trade unions and management, usually at the enterprise level.
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The bipartite consultative machinery comprises two important constituents, viz.,the works committees and the joint management councils. These are purely
consultative, and not negotiating bodies. This consultative joint machinery- with
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equal representation of the employers and the workers ? has been set up
exclusively for dealing with disputes affecting the plant or industry.
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2.2.1. Evolution of Such BodiesThe importance of bipartite consultative machinery was first recognized as early
as in 1920, when a few joint committees were set up in the presses controlled by
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the Government of India. They were also introduced in Tata Iron and Steel
Company at Jamshedpur.
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The importance of bipartite consultation was further highlighted by the First-
Five-Year Plan which maintained: There should be the closest collaboration,
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through the consultative committee at all levels, between employers andemployees for the purpose of increasing production, improving quality, reducing
cost and eliminating waste8, The second Plan also stressed the need for joint
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consultation and progressively associating the workers and technicians,
wherever possible, in management9.
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2.2.2.Bipartite BodiesThe two important constituents of bipartite consultative machinery are (A)
Works Committee, (B) Joint Management Councils. A brief review of these
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bodies is given here.
1. Works Committees
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These committees have been regarded as the most effective social institution ofindustrial democracy and as a statutory body, established within the industrial
units with representatives of the management and workmen, for preventing, and
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settling industrial disputes at the unit level. The works committee can be formed
by any enterprise, employing 100 or more workers. Its objectives are:
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(i) To remove the causes of friction in the day-to-day work situation byproviding an effective grievances-resolving machinery;
(ii) To promote measures securing amity and good relationship;
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(iii)To serve as a useful adjunct in establishing continuing bargaining
relationship; and
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(iv) To strengthen the spirit of voluntary settlement, rendering recourse toconciliation, arbitration and adjudication rather infrequent; for these are
achieved by commenting upon matters of concern or endeavour to
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compose any material difference of opinion in respect of such matters.
2. Joint Management Council
These committees give labour a greater sense of participation and infuse a spirit
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of co-operation between the two parties without encroaching upon each other`s
sphere of influence, rights and prerogatives. They establish a channel of close
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mutual interaction between labour and management which, keeping tension at alow level, generates a co-operative atmosphere for negotiation and settlement.
These committees also aim at making the will of the employees effective in the
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management; ensure the operation of the private-owned concern in conformity
with national interests and provide for a popular agency for supervising the
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management of nationalized undertakings. In brief, such committees try topromote industrial goodwill and harmonious relations through better
understanding of employees by management and of management by workers. To
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accomplish this goal, the works committees are entrusted with a number of
functions which are of benefit to management as well as employees.
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III. BIPARTISM'S LINK WITH TRIPARTISM2.3.1. Introduction
Bipartism is complementary to tripartism at national and other levels. Bipartism
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and tripartism should be seen as the two sides of the same coin. Both mutually
reinforce each other. The prerequisites for the success of both bipartism and
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tripartism-notions about equality among partners, freedom of association, theright to collective bargaining, and democratic decision-making, among others-
are similar.
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National and centralized tripartite consultations are usually more influenced by
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political considerations and state support. Bipartism arrangements, particularlyin the context of the current trend towards decentralized firm/plant-level
bargaining, adjustment to structural and other changes, and economic crisis, are
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influenced more by economic considerations. The institutional framework for
industrial relations influences substantially, the relative role of tripartism and
bipartism in responding to economic changes/policies at macro level.
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2.3.2. Tripartism's contribution to Bipartism
Tripartite consultations and agreements can exercise profound influence in
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directing and shaping collective bargaining and industrial relations. The three-tier frame work of industrial relations proposed by Kochan, (1987) suggests a
direct and active role for tripartite consultation at macro level, to be reinforced
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by bipartite consultations, collective bargaining, communication, information
sharing, and employee participation at industry and firm/plant level.
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Whether it was the arrangements for the avoidance/settlement of disputes,procedures for recognition of unions, grievance redressals, consultations and
cooperation at work place, or collective bargaining on a host of matters relating
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to industrial relations and human resources, tripartite initiatives played a
substantial role in setting up international labour standards, enactment of
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national legislations, and conclusion of national agreements.In the Indian context, for instance, the following tripartite declaration played a
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useful role, at least for a number of years, in influencing bipartite relations and
agreements relating to union recognition, automation, and modernization.
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1.Code of discipline, 2.Code of Conduct, 3.Automation Without Tears.2.3.3. Bipartism's Contribution to Tripartism
Bipartism or more importantly, collective bargaining, which is a key instrument
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of bipartism, may reduce the need for tripartite interventions. In some cases,
tripartism begins where bipartism fails. For instance, when bipartite dialogue
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does not result in dispute avoidance or settlement, tripartite interventions such asconciliation/mediation and arbitration/adjudication become imperative.
Bipartite arrangements can contribute in the following ways to facilitate
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meaningful and effective tripartite social dialogue at industry and national level:
1. In countries where the representative character of the social partners is very
much limited due to the predominant characteristics of an economy (large
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unorganized, in formal-sector economy), the outcomes of tripartite
discussions do not necessarily reflect the wishes of the large majority of the
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working population, not to speak of the society at large. In these and similarother situations it is better to adopt a bottom-up approach through bipartite
dialogue at enterprise level.
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2. The interests of employers and workers are affected by government policies
in areas other than industrial relations such as fiscal, monetary, trade,
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taxation, licensing, etc. The effects of these aspects is ;more closely andeffectively reckoned and evaluated in bipartite consultations, particularly
collective agreements, than in tripartite dialogue.
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3. Consensual approaches are best planned and implemented if they are
developed by parties at the grassroot level, that is plant level. The
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parties/persons directly affected should be involved in consensus-buildingsocial dialogue. Externally imposed consensus through tripartite declarations
often may not work effectively at industry/enterprise level.
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References:
1. The Third Five-Year Plan 1961, Government of India, p.250.
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2. Report of Royal Commission on Labour, 1931, p.467.3. Quoted by the National Commission on Labour in its Report, 1969,
p.311.
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4. Indian Labour Year Book, 1992, p.84-85.
5. Annual Report Ministry of Labour, 1994-95, p.47-50.
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6. Indian Labour Year Book, 1992, p.83-84.7. Annual Report Ministry of Labour, 1994-95, p.42.
8. The First Five-Year Plan, p.572.
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9. The Second Five-Year Plan, p.577.
10. C. S. Venkata Ratnam, Industrial Relations, Oxford University Press,
2006, p.248-52
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IR STRATEGIES - A DISCUSSION
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This lesson comprises three units. The first unit explains IR decisions, IR
strategies- trade unionism, grievance procedure and disciplinary procedure. The
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second unit deals with nature and content of collective bargaining, process of
collective bargaining, methods and tactics of collective bargaining. The third
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unit describes about the various machineries of settlement of disputes likemediation, conciliation, voluntary arbitration, adjudication, employers
association.
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I.IR Strategy
It is necessary to have a clear-cut strategy for IR, although the management of
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IR is essentially a knee-jerk reaction to events and problems and is, therefore,far removed from the world of strategic thinking and planning. Since employer-
employee relations are usually presumed to be satisfactory until they get out of
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hand, managers, rarely, feel the need to act before the trouble breaks out.1
3.1.1. Factors Affecting Employee Relations Strategy:
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Two sets of factors, internal as well as external, influence an IR strategy. Theinternal factors are:2
1. The attitudes of management to employees and unions.
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2. The attitudes of employees to management.
3. The attitudes of employees to unions.
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4. The inevitability of the differences of opinion between management andunions.
5. The extent to which the management can or wants to exercise absolute
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authority to enforce decisions affecting the interests of employees.
6. The present and likely future strength of the unions.
7. The extent to which there is one dominating union or the existence of
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multiple unions leading to inter-union rivalry.
8. The extent to which effective and agreed procedures for discussing and
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resolving grievances or handling disputes exist within the company.9. The effectiveness of managers and supervisors in dealing with problems and
disputes related to IR.
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10. The prosperity of the company, the degree to which it is expanding,
stagnating or running down and the extent to which technological changes
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are likely to affect employment conditions and opportunities.The external factors affecting IR strategy are: 3
1. The militancy of the unions-nationally or locally.
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2. The effectiveness of the union and its officials and the extent to which the
officials can and do control the activities of supervisors within the company.
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3. The authority and effectiveness of the employer`s association.4. The extent to which bargaining is carried out at national, local or plant level.
5. The effectiveness of any national or local procedure agreements that may
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exist.
6. The employment and pay situation-nationally and locally.
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7. The legal framework within which IR exists.3.1.2. IR - STRATEGIES
1. Trade unionism
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Trade unions are voluntary organizations of workers formed to promote and
protect their interest through collective action. Trade unions have always played
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a powerful role in improving the lot of workers in India, using aggressivebargaining tactics. Trade union constitutes one of the stakeholders in IR. They
are not confined to mere striking and negotiating on behalf of workers. Their
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role is much wider.
Trade unions in India have been recognized as legitimate social organizations
and have become part and partial of industrial organizations. Trade unions aim
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at achieving various objectives primarily protecting the social and economic
interest of the worker. Trade unions play a vital role in protecting worker`s
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interests. They have undergo serious stress, bargain with management andsometimes fight against employers by organizing strikes of different kinds,
threaten the management etc., before they could achieve even legitimate
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demands of workers.
Trade unions adopt various strategies to safeguard workers interest. These
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strategies include: representation of the issues/ demands through grievanceprocedure, disciplinary procedure, collective bargaining, organizing strikes,
political pressure etc.
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2. Grievance Procedure
Grievance procedure is another method of resolving disputes. All labour
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agreements contain some form of grievance procedure. And if the procedure isfollowed strictly, any dispute can easily be resolved4.
A typical grievance procedure followed in a Bangalore-based public sector unit
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is as follows:
1. First Stage:
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The aggrieved employee shall, first submit his grievance in writing to hisSectional Head` in the prescribed form. The sectional head should study the
grievance carefully with the least possible delay and the aggrieved employee
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should be given an opportunity to present his case in person if he requests for
the same. If the employee so desires, he may take the assistance of a co-worker
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or a union representative. A written reply shall be given to the employee beforethe end of the fifth working day, if reply is not given before the end of the fifth
working day, the concerned officer should record reasons for the delay which
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should be communicated to the aggrieved employee.
2. Second Stage:
In case the said employee is not satisfied with the reply of the sectional head, or
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if the Sectional Head fails to give a reply within the stipulated time as in First
stage above, he shall be free to register his grievance in writing in the prescribed
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form with his Departmental Head. Departmental head shall, after careful study,give an opportunity to the concerned person to present his case before him. The
head of the department should study the grievance and the points brought out by
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the employee in the personal hearing and give a reply at the end of the fifth
working day from the day of receipt of such complaint.
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3. Third Stage:If the employee is not satisfied with the decision of the departmental head or if
the latter fails to give any decision within the stipulated period, the employee
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will be entitled to lodge an appeal to the Divisional Head or any other officer
nominated by the management for this purpose. This officer should also follow
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the same procedure as prescribed in Stages I and II and a reply should be givenbefore the end of the tenth working day.
4. Fourth Stage:
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If the aggrieved employee is not satisfied with the decision of the divisional
head, he can refer the case to THE EMPLOYEE`S UNION within 10 days. The
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Union may discuss the subject if they deem fit, in the periodical management-union meetings which will be held within one month from the day, such
reference is made by the Union to the management.
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a. Model Grievance Procedure
The Model Grievance Procedure suggested by the National Commission on
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Labour has provided for the successive time bound steps each leading to thenext in case of lack of satisfaction.
At the outset an aggrieved worker shall approach the foreman and informs his
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grievance orally and seeks the redressal of his grievance. If it is not redressed to
his satisfaction he approaches the supervisor who has to give reply to the
complaint worker within 48 hours. If the decision (answer) is not acceptable to
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the worker or if the superior does not give an answer, the worker can go to the
next step. At the third stage the worker can, either in person or accompanied by
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his departmental representative, approach the head of the department who has togive an answer before the expiry of three days. If the department head fails to
do so or if the decision given by him is not acceptable to the worker then the
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worker can resort to the Grievance Committee which comprises of the
representatives of employers and employees. This Committee shall
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communicate its recommendations to the manager within seven days of thegrievance reaching it. If there are unanimous decisions, these shall be
implemented by the management. In case, unanimous decisions have not been
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arrived at, the views of the members of the Committee shall be recorded and all
the relevant records shall be placed before the manager for decision. The
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manager shall communicate his decision within three days. The worker has gota right to appeal against the manager`s decision. These appeals shall be decided
within a week. If the aggrieved desires, he can take along with him a union
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official for discussion with the authority. In case a decision has not been arrived
at, at this stage, the union and management may refer the grievance to voluntary
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arbitration within a week of receipt of the management`s decision by the worker.this stage, the union and management may refer the grievance to voluntary
arbitration within a week of receipt of the management`s decision by the worker.
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The Tata Iron and Steel Company (works), for example, has grievance
procedure which consists of several stages (Monappa 1985)5 have shown in
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figure 1.Figure:1
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Submits toWorker fills grievance
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St St
age age
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I 1f
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o r
m Shift in-charge
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Approaches
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Stage IIWorker, if unsatisfied
Department Head
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Worker not satisfied,
Management and 5
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Goes to
Stage III
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unanimous decisionunion representations
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binding on both parties
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No unanimous
Central Works Committee
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Approaches t
op
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man
Stage IV
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decisions binding on
agement and
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both parties
union officials
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Taken by
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St
age
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V
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Final decision
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Chairman of the Company--- Content provided by FirstRanker.com ---
3. Disciplinary ProcedureMaintenance of harmonious human relations in an organization depends upon
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the promotion and maintenance of discipline. No organization can prosperwithout discipline. Discipline has been a matter of utmost concern for all
organizations.
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Maintenance of effective discipline in an organization ensures the most
economical and optimum utilization of various resources including human
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resources. Thus, the objective of discipline in an organization is to increase and
maintain business efficiency6. Effective discipline is a sign of sound human and
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industrial relations and organizational health.a. Approaches to Discipline
The different approaches to discipline include,(i) human relations approach, (ii)
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human resources approach, (iii) group discipline approach, (iv) the leadership
approach, and (v) judicial approach.
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The employee is treated as human being and his acts of indiscipline will be dealtfrom the viewpoint of values, aspirations, problems, needs, goals behaviour etc.
Under human relations approach the employee is helped to correct his
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deviations. The employee is treated as a resource and the acts of indiscipline are
dealt by considering the failure in the areas of development, maintenance and
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utilization of human resources under the human resources approach. The groupas a whole, sets the standards of discipline, and punishments for the deviations.
The individual employees are awarded punishment for their violation under the
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group discipline approach. Every superior administer the rules of discipline and
guides, trains and controls the subordinates regarding disciplinary rules under
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the leadership approach.In Judicial approach, indisciplinary cases are dealt on the basis of legislation and
court decisions. The Industrial Employment (Standing Orders) Act, 1946, to a
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certain extent, prescribed the correct procedure that should be followed before
awarding punishment to an employee in India. No other enactment prescribed
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any procedure for dealing with disciplinary problems. But over a period of time,a number of principles regarding the basic formalities to be observed in
disciplinary procedures emerged, gradually resulting from the awards of several
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Industrial Tribunals, High Courts and the Supreme Court. Principles of NaturalJustice:
II. COLLECTIVE BARGAINING
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3.2.1. Nature and Content of Collective Bargaining
Collective bargaining is a method by which trade unions protect and improve the
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conditions of their members working lives. Collective bargaining brings the
employer and the employees around one table to discuss and settle many
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contentious issues effectively. It enables both the parties to know each other andtheir views, and to define their rights and obligations regarding terms of
employment, working conditions, etc., through negotiations, discussions and
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bargains. ILO`s remark is very relevant here7 Collective bargaining enables to
conduct negotiations about working conditions and terms of employment
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between an employer and a group of employees or one or more employees`organization with a view to reaching an agreement wherein the terms serve as a
code of defining the rights and obligations of each party in their employment
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relations with one another; fix a large number of detailed conditions of
employment; and during its validity, none of the matters, it deals with, can in
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normal circumstances be given as a ground for a dispute concerning anindustrial worker.
3.2.2. Forms of Collective Bargaining8
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At the outset it should be stated that there is a great deal of variation in the
collective bargaining practices ranging from an informal oral agreement to very
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formal and detailed agreement.Collective Bargaining takes the following forms:
i. It may be a single plant bargaining, that is, bargaining may be between a
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single trade union. This type of collective bargaining prevails in the United
States and India.
ii. It may be a multiple plant bargaining, that is, bargaining may be between a
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single factory or establishment having several plants and the workers
employed in all these plants.
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iii. It may be a multiple employer bargaining, that is, bargaining between all thetrade unions of workers in the same industry through their federal
organizations, and the employer`s federation. This is possible both at the
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local and regional levels and is generally resorted to in the textile industry.
In India, collective bargaining has been classified under four categories. These
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are:i. Agreements which are negotiated by officers during the course of
conciliation proceedings and are called settlements under the Industrial
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Disputes Act.
ii. Agreements which are concluded by the parties themselves without
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reference to a Board of Conciliation and are signed by them. Copies of suchagreements, however, are sent to appropriate governments and to
conciliation officers.
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iii. Agreements which are negotiated by the parties on a voluntary basis when
disputes are sub judice and which are later submitted to industrial tribunals,
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labour courts or labour arbitrators for incorporation into the documents asparts of awards. These are known as consent awards.
iv. Agreements which are drawn up after direct negotiation between labour and
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management and are purely voluntary in character. These depend for their
enforcement on moral force and on the goodwill and co-operation of the
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parties.3.2.3. Collective Bargaining Process
There are two stages in collective bargaining, viz., (i) the negotiation stage and
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(ii) the stage of contract administration.
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i.
Negotiation
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a) Identification of Problem: The nature of the problem influences wholeprocess. Whether the problem is very important that is to be discussed
immediately or it can be postponed for some other convenient time, whether
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the problem is minor that it can be solved with the other party`s acceptance
on its presentation and does not need to involve long process of collective
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bargaining process etc. It also influences selection of representatives, theirsize, period of negotiations and period of agreement that is reached
ultimately. As such it is important for both the parties to be clear about the
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problem before entering into the negotiations.
b) Preparing for Negotiations: When it becomes necessary to solve the
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problem through collective bargaining process, both the parties preparethemselves for negotiations. The preparation starts with selection of
representatives. Such representatives should be selected who can carry out
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negotiations with patience, composure and who can present their view
effectively. After selection they should be fed with complete problem and
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its pros and cons. His powers and authority during negotiations also shouldbe clearly spelt out. Other preparations include fixing up time for
negotiations, period of negotiations etc. But once the parties enter into
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negotiations the period of negotiations may vary depending upon
circumstances.
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c) Negotiations of Agreement: usually there will be a chief negotiator who isfrom management side. He directs and presides the process. The chief
negotiator presents the problem, its intensity and nature and the views of
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both the parties. Then he allows the representatives of both the parties to
present their views. During negotiations, the representatives should be
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attentive as to find out what the other party is arguing for. Therepresentatives tend to think about what counter arguments they can present
and how to say no` effectively, while the other party is presenting its own
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views. This is a major obstacle in the bargaining process. By understandingtheir problems and weighing them, sometimes a better solution may be
reached, which is more acceptable to both the parties. So, it is important that
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representatives should reach negotiating table with positive attitudes. When
a solution is reached at, it is put on the paper taking concerned legislations
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into consideration. Both the parties concerned sign the agreement which, inturn, becomes a binding contract for both the parties.
ii. Contract Administration
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Implementation of the contract is as important as making a contract.
Management usually distributes the printed contract, its terms and conditions
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throughout organization. The union takes steps to see that all the workersunderstand the contract and implement it. From time to time depending upon
changing circumstances, both the parties can make mutually acceptable
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amendments.
3.2.4. Collective Bargaining as a Method of Settlement of Disputes
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Till now, collective bargaining has been taken as a means of arriving at anagreement. It establishes rules which the management is bound to implement.
Specifically, collective bargaining is:
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A rule-making or legislative process, in the sense that it formulates the terms
and conditions under which labour and management will cooperate and
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work together over a certain stated period,An executive process; both management (foreman and supervisory officials)
and trade union officials share the responsibility of enforcing the rules.
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A judicial process, for in every collective agreement there is a grievance
procedure to settle any dispute concerning the application of the agreement.
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Where the agreement does not specifically cover the disputes, it may besettled according to the unwritten norms of shop practices. The decisions in
these cases act as precedents in a manner similar to the common laws and
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interpretation of the legislation by the court.After a dispute has erupted, collective bargaining acts as a peace treaty between
the two warring groups. The treaty is invariably a compromise, but helps
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resolve the conflict nevertheless.
3.2.5. Tactics or Strategies in Collective Bargaining9
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The tactics or strategies to be adopted in any collective bargaining situation varydepending upon the culture of the organization and different environmental
factors, particularly the type of union operating in an industrial establishment.
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But the following are some of the common strategies to make collective
bargaining exercise more meaningful:
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1. The management has to anticipate the demands and also understand the maindirections in which the demands are going to be placed. Generally speaking,
negotiations are best done if both the parties do their home work well. The
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representatives must come to the bargaining table equipped with the necessary
information and supportive data regarding the company`s economic status and
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prospects, the prevailing rates of pay and conditions of employment incomparable industries in the local areas. The management team should take into
consideration the financial liability involved, the past agreements, and the
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impact of present negotiations in future years.
2. It is essential that a real team spirit is maintained throughout the negotiations.
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For this purpose, it is necessary that the roles to be played by each member ofthe team are properly pre-assigned, and each member knows when to take over
the discussions. The team must have the confidence of facing any eventuality
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which may come up during negotiations. The team must have the power of
taking decisions. The team must consist of people who have confidence of the
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workforce and unions. It is good to have a rehearsal among the team memberson such points which can be anticipated to be made forcefully by the opposite
team.
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3. Any collective bargaining strategy should firstly separate the personalitiesfrom the problems for arriving at a workable and desirable agreement and
secondly, explore the possibilities for harmony and compatibility.
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4. Collective bargaining is two way traffic. The management as well as the
union must gain out of collective bargaining. Hence, the management team
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should also present their counter-proposals. For instance, the union pressure fora wage-hike may be matched by a counter demand for an increase in production,
reduction in absenteeism, avoidance of wasteful/restrictive practices, industrial
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peace, and so on.
5. There is a greater necessity on the part of the management representatives to
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give a patient hearing to the demands of the union and not to react even if thereis a threat of strike or work-stoppage. A rational well reasoned approach can
achieve better results than an emotionally charged loud-mouthed approach.
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6. It is also a bad strategy to depute persons of low rank without authority to
commit the management on the negotiating table. Such a step may give an
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impression to the union that the management does not take the bargainingprocess with all the seriousness that it deserves.
7. It is a good practice always to classify the various demands raised by labour
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representatives distinguishing the real from the unreal. A thorough analysis and
understanding of different items in the charter of demands will enable
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negotiators to arrive at a proper judgment.8. It is a good tactic to total the cost of all the union proposals and to take up the
non-cost items first or items on which it is easy to come to an agreement so that
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a suitable collective bargaining atmosphere is created for negotiating on more
serious items which have financial implications.
9. Sometimes, the management instead of announcing its concessions at the
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bargaining table announces them before the conciliation officer as the starting
point for further negotiations. This is not bargaining in good faith.
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10. Any collective bargaining strategy must result in a good agreement orsettlement, the characteristics of which are: (a) It must strike a proper balance
between the various factors that go into its making in order to ensure its
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workability; (b) it must be viewed as a whole and the interrelation of its parts
must be balanced one against the other; (c) it must be based upon experience,
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logic and principles rather than on coercive tactics, propaganda and force; (d) itmust be fair and reasonable to the workers as regards their emoluments and
service conditions; to the management in terms of improved production and
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productivity; and to consumer in respect of better quality goods and services;
and (e) it must be complete and coherent in all respects without any ambiguity.
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In any event, it is enforcement that is the crucial test of a contract`s workability.11. As a measure of follow up: (a) evaluate prevailing environmental changes
and cultivate a healthy pragmatic approach; (b) train and develop rank and file
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of working group to inculcate in them individual effectiveness and
professionalism in collective bargaining; and (c) develop specific action-plans
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for collective bargaining based on prevailing situation.III. INDUSTRIAL DISPUTE'S SETTLEMENT MACHINERIES
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3.3.1. Mediation
Mediations is a process available to the parties involved in contract negotiations
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by which an outside party is called in by union and management to help themreach a settlement. The neutral mediator does not ultimately resolve the dispute,
but instead tries to move the parties towards agreement by maintaining
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communication and suggesting alternative solutions to dead-locked issues. The
mediator`s function is to provide a positive environment for dispute resolution
by drawing on extensive professional experience in the field of labour
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management interaction. The mediator must possess thorough knowledge of the
issues, and an ability to innovate solutions to problems. The mediator must be an
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effective communicator, know the importance of timing and most of all, havethe confidence and trust of the parties. A mediator must possess attributes such
as integrity, impartiality and fairness.
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3.3.2. Conciliation
Conciliation is a process by which representatives of workers and employers are
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brought together before a third person or a group of persons with a view topersuade them to come to a mutually satisfying agreement. The objective of this
method is to settle disputes quickly and prevent prolonged work stoppages if
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they have already occurred. The essential hallmarks of this approach are10:
1. The conciliator tries to bridge the gulf between the parties, if possible.
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2. If he does not fully succeed, he tries to reduce the differences to the extentpossible. He acts as a conduit through which message are passed from one
side to the other, coupled with his own interpretations facilitating the
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understanding of disputing parties. To the extent possible, he tries to clear
the fog` surrounding the issue.
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3. He persuades parties to take a fresh look at the whole issues, through aprocess of give and take and explore the possibility of reaching a consensus.
4. He only advances possible lines of solutions for consideration by the
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disputants. He never tries to force the parties to accept his viewpoint. He
never offers judgement on the issues. If parties feel that the suggestions
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offered by the conciliator are acceptable, they may strike a deal.5. The conciliator need not follow the same path in each case. The process of
conciliation, therefore, has a certain amount of flexibility and informality
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built around it.
The conciliation machinery in India consists of the following:
a. Conciliation Officer
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According to the Industrial Disputes Act, 1947, the Central and State
governments can appoint a conciliation officer to mediate in all disputes brought
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to his notice. The officer enjoys the powers of a civil court. He can call andwitness disputing parties on oath and interpret the facts of the case. He is
expected to give judgement within 14 days of the commencement of the
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conciliation proceedings. His judgement is binding on all the parties to the
dispute. The conciliation officer has a lot of discretion over the ways and means
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to be followed to bring about a settlement between the disputants. He may doall such things as he thinks fit for the purpose of inducing the parties to come to
a fair and amicable settlement of disputes.
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b. Board of Conciliation
When the conciliation officer fails to resolve the disputes between the parties,
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the governments can appoint a Board of Conciliation. The Board of Conciliationis not a permanent institution like the Conciliation officer. It is an adhoc,
tripartite body having the powers of a civil court, created for a specific dispute.
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It consists of a Chairman and two or four other members nominated in equal
number by the parties to the dispute. The chairman who is appointed by the
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government should not be connected with the dispute or with any industrydirectly affected by such dispute. The board, it should be remembered, cannot
admit a dispute voluntarily. It can act only when the dispute is referred to it by
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the Government. The board conducts Conciliation proceedings in the same way
as conducted by a Conciliation officer. The board, however, is expected to
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submit its report within two months of the date on which the dispute wasreferred to it. The Boards of Conciliation are rarely constituted by the
government these days. In actual practice, settling disputes through a
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conciliation officer was found to be more flexible when compared to the Board
of Conciliation.
3.3.3. Voluntary Arbitration
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When conciliation proceedings fail to settle the dispute, the conciliation officer
may persuade the conflicting parties to voluntary refer the dispute to a third
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party known as Arbitrator, appointed by the parties themselves. The arbitratorlistens to the viewpoints of both parties and delivers an award or judgement on
the dispute. He, however, does not enjoy judicial powers. The arbitrator submits
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his judgement on the dispute to the government. Thereafter the government
publishes the award within 30 days of its submission. The award becomes
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enforceable after 30 days of its publication. The arbitration award is binding onall the parties to the agreement and all other parties summoned to appear in the
proceedings as parties to dispute. Before delivering the judgement, the arbitrator
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is expected to follow due procedure of giving notice to parties, giving a fair
hearing, relying upon all available evidence and records and following the
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principles of natural justice.Arbitration is effective as a means of resolving disputes because it is:
1. Established by the parties themselves and the decisions is acceptable to
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them, and
2. Relatively expeditious when compared to courts or tribunals. Delays are cut
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down and settlements are speeded up.Arbitration has achieved a certain degree of success in resolving disputes
between the labour and the management. However, it is not without its
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weakness. Some weaknesses are:
1. Arbitration is expensive. The expenditure needs to be shared by the labour
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and the management.2. Judgement becomes arbitrary if there is a mistake in selecting the arbitrator.
3. Too much arbitration is not a sign of healthy IR.
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3.3.4. AdjudicationAdjudication or compulsory arbitration is the ultimate remedy for the settlement
of disputes in India. Adjudication consists of settling disputes through the
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intervention of a third party appointed by the government. An industrial dispute
can be referred to adjudication by the mutual consent of the disputing parties.
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The government can also refer a dispute to adjudication without the consent ofthe parties. The Industrial Disputes Act, 1947, provides three-tier adjudication
machinery ? namely Labour Courts, Industrial Tribunals and National Tribunals
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? for the settlement of industrial disputes. Under the provisions of the Act,
Labour Courts and Industrial Tribunals can be constituted by both Central and
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State governments but the National Tribunals can be constituted by the Centralgovernment only.
a. Labour Courts (section-7)
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The labour court consists of one independent person (called as presiding officer)
who is or has been a judge of a High Court, or has been a district judge or
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additional district judge for not less than 3 years or has held any judicial officein India for not less than 7 years. The labour court deals with disputes relating
to: (a) the property or legality of an order passed by employer under the standing
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orders; (b) the application and interpretation of standing orders; (c) discharge or
dismissal of workers including reinstatement of, or grant of relief to wrongly
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dismissed persons; (d) withdrawal of any statutory concession or privilege; (e)illegality or otherwise of a strike or lockout; and (f) all matters except those
reserved for industrial tribunals.
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b. Industrial Tribunal (section-7A)
This is also a one ? man adhoc body (presiding officer) appointed by the
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Government. It has a wider jurisdiction than the labour court. The Governmentconcerned may appoint two assessors to advise the presiding officer in the
proceedings. An industrial Tribunal can adjudicate on the following matters; (a)
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wages including the period and mode of payment; (b) compensatory and otherallowances; (c) hours of work and rest periods; (d) leave with wages and
holidays; (e) bonus, profit sharing, provident fund and gratuity; (f) shift
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working, otherwise than in accordance with the standing orders; (g)
classification by grades; (h) rules of discipline; (i) rationalization; (j)
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retrenchment and closure of establishment; and (k) any other matter that may beprescribed.
c. National Tribunal (section-7B)
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This is the third one-man adjudicatory body to be appointed by the central
government to deal with dispute of national importance or issues which are
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likely to affect the industrial establishments in more than one state.It consists of one person only, who is an independent person and below 65 years
of age. He should be or has been judge of a High Court or held the office of
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Chairman or any other member of the Labour Appellate Tribunal for a period of
not less than 2 years.
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The Central Government may, if it thinks fit, appoint two persons as assessors toadvise the National Tribunal. Duties of a national tribunal are to hold
proceedings of an industrial dispute referred to it by the Central Government
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expeditiously, and to submit the award to the referred on the conclusion thereof.
When a national tribunal has been referred to, no Labour Court or Industrial
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tribunal shall have any jurisdiction to adjudicate upon such a matter.3.3.5. Employers' Associations11
Introduction
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Employers` Associations came into existence as a result of the formation of ILO
and the growing presence of Trade Unions, especially after the First World War.
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The Royal Commission on Labour, 1929, recommended that the Indianemployers need an organization to deal with labour problems from the
employer`s point of view. As rightly pointed out by Mr. Naval Tata,
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employers` organizations are required to:Develop healthy and stable industrial relations;
Promote collective bargaining at different levels;
Bring a unified employers` viewpoint on the issues of industrial relations
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to the government in a concerted manner; and
Represent in the meetings of ILC and SLC boards in conformity with
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tripartite approach to labour matters.Tripartite and Bipartite bodies and Workers Participation in Management has
been dealt elaborately in lesson two and four respectively in this unit.
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References:
1. E.A. Ramaswamy, From IR to HRD, Business India, April 21- May 4,
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1986, p.1.2. Michael Armstrong, A Handbook of Personnel Management Practices,
Third Edition, Kogon Page, London, 1998, p.567
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3. Ibid, p.568.
4. K. Aswathappa Human Resource and Personnel Management, Text and
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Cases, Tata McGraw-Hill Publishing Company Limited, New Delhi, 2003,p.519-520.
5. Monappa, Arun 1985, Industrial Relations, Tata McGraw-Hill, New
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Delhi, p.153-55.
6. P.Ghosh and Santosh Ghosh, Labour Relations in India, Sudha
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Publications (P) Ltd., 1973, p.313.7. International Labour Organization, Collective Bargaining, Worker`s
Educational Mannual Series, p.3.
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8. C.B. Mamoria and Satish Mamoria, op.cit, p. 558-59.
9. A. M. Sarma, Industrial Relations Conceptual and Legal Framework,
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Himalaya Publishing House, 2004, p.202-204.10. V. S. P. Rao, Human Resource Management, Text and Cases, Excel
Books, New Delhi, 2005,p.599-602.
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11. Ibid, p.571-72.WORKER DEVELOPMENT AND WORKER'S PARTICIPATION
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This lesson comprises three units. The first unit gives an account of worker`s
development. Second unit deals with the concept, objectives and essential
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conditions for successful working of worker`s participation in management.The last unit explains worker`s participation in management in India adopting
various practices and strategies for making participation work effectively.
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I.WORKER DEVELOPMENT
HRD has become the key factor in India handling industrial relations to usher
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new industrial era. Managing men at work has been a most complex problem for
management scientists. Some studies are:
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1.Scientific management ? 1910, 2.Time and Motion Studies ? 1910, 3.HumanRelations Approach ? 1920, 4.Behaviour Science Movement ? 1950, 5.Human
Resource Management (HRD) Movement ? 1980.
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As result of these studies coupled with emergence of strong trade union
movement and labour legislation, man management has gone evolutionary
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change. Inspite of this evolution of management thought, it is still dilemma as towhich approach is best in handling industrial relations. The two extreme trends
are:
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4.1.1. At One Extreme
1. Trade Unions have become second-line` management. Managerial
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prerogatives are eroded.2. New generation of workers is more conscious of rights and privileges
rather than duties and obligations towards the organization.
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3. Trade unions remain silent about workers` obligations towards
organization. Forth-right leaders, if talk, they are dubbed as
management stooges.
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4. Trade unions succeed in getting more through pressures and violencethan by reasoning.
5. Collective bargaining has become a pressure game. Unions are
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exploiting the emotions of workers.
6. Only fear and force can restore discipline.
7. Trade unions should be dealt with a heavy hand. (Authoritarian or hard
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approach)
4.1.2. At the Other Extreme
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1. Human beings are considered as assets not liabilities.2. Employees should be cared for, persuaded and motivated.
3. It is felt forced disciplined is not enduring.
4. Trade union`s through a pain-in-neck are a reality. They have role to
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play.5. Conflict and confrontation to be avoided. Win-lose strategy does not
work for long.
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6. Manager`s should not spend much time on trade union wrangles but on
preventive and proactive approaches and actions. Environment in the
organization is creation of the management. An environment of conflict
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can be converted into cooperation and collaboration. (Humane and softapproach)
4.1.3. Human Resource Development (HRD) Approach
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Balanced approach lies somewhere in between:1. Human Resource Development (HRD) generally covers some sub-
systems, e.g. training and development, counselling, performance
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appraisal, career planning, etc. But HRD can extended to industrialrelations (IR).
2. HRD is new concept. It is a renaissance of traditional ways of man
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management.Due to new economic policy of liberalization, privatization and globalization
(LPG), competition in the local market with MNC`s and changing technologies,
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there are fast changes in industrial relations scene. A number of practices are
involved in organizations, e.g restructuring of organizations, ERP, VRS,
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disinvestment of government shares, TQM, ISO 9000, Etc.Company`s are projecting certain views which are:
I. There will never be job security.
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II. One will be employed as long as he adds value to the organization,
Economic Value Addition (EVA).
III. Employee should continuously find ways to add value by being innovative,
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risk-taking and committed to organization goals.
In turn employee has right to demand:
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I. Interesting and important work, II.Freedom and resources to perform it well,III.Proper pay, IV. Training. V.Employees become more responsible for their
work and careers.
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New deal in employee relationship calls for:
a. Less control over employees and give more authority to work in teams.
b. No more parent-child relationship, but adult to adult. Employees are to be
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treated as partners with management.
c. Use of modern approaches to job design for better job satisfaction-such as
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job rotation, job enrichment, quality circles, flexi-time, compressed workweek, to increase skill variety, task identity, task significance and autonomy
and job feed-back. These will play positive role in employee satisfaction and
make him feel his work is meaningful.
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d. Workers to be moved from one job category to another to enhance theirexposure and employable skills.
e. Management to encourage training as old jobs are getting extinct. This will
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provide job security.
f. Management will explain to workers/unions importance of customer
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satisfaction, quality and low price to remain competitive.II. WORKERS PARTICIPATION IN MANAGEMENT
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4.2.1. Introduction
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The word participation` means sharing the decision-making power with the
lower ranks of the organization in an appropriate manner. Participation has a
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unique motivational power and a great psychological value. It promotesharmony and peace between workers and management. When workers
participate in organizational decisions, they are able to see the big picture
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clearly, i.e., how their actions would contribute to overall growth of the
company. They can offer feedback immediately based on their experiences and
improve the quality of decisions significantly. Since they are involved in the
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decisions from the beginning, they tend to view the decisions` as their own`
and try to translate the rhetoric into concrete action plans with zeal and
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enthusiasm. Participation makes them more responsible. They are willing totake initiative and contribute cost-saving suggestions and growth-oriented ideas.
The feeling of being treated as equals, forces them to repose their confidence in
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management and accept plans of rationalization, expansion, etc., without raising
serious objections. Since they are treated with respect now they begin to view
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the job and the organization as their own and commit themselves toorganizational activities wholeheartedly.
Output cannot be increased unless there is effective co-operation between labour
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and management at all levels. The way of ensuring this is to satisfy their social
and psychological need besides economic ones. Workers` participation in
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management is one of the most significant modes of resolving industrialconflicts and encouraging among workers a sense of belongingness in
establishment where they work.
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Moreover, India which has launched a vast programme of industrialization, the
need for workers` participation is all the more important. It is in reorganization
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of these need that under the Second, Third, Fifth and Seventh plans specificmeasures have been suggested for worker`s participation.
The scheme of Joint Management Council, popularly known as Workers`
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participation in management, was introduced on voluntary basis only after over
a decade. However, the scheme of Joint Management Council for various
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reasons could not succeed. In order to meet this unhappy state of affairs and tosecure greater measure of co-operation between labour and management to
increase efficiency in public service, the Government of India on October 30,
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1975 introduced a scheme of workers` participation in management at shop floor
and plant levels. In addition to these, there are voluntary schemes of making the
workers` shareholders and Directors in the Board of Management. The
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inclusion of the concept of workers` participation in management in the
Directive Principles of State Policy through the Constitution (Forty-second)
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Amendment Act, 1976, gave a momentum to the institution of worker`sparticipation in management. After the constitutional Amendment the Central
Government expressed its intention to amend the 1975-Scheme and to provide
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for effective participation of workers in production processes and accordingly
amended the scheme in January 1977.
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There are two distinct groups of people in an undertaking, viz., managers` andworkers` performing respectively two separate sets of functions which are
known as managerial` and operative`. Managerial functions are primarily
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concerned with planning, organizing, motivating and controlling in contrast with
operative work. A self-employed man may carry out both these functions if the
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area of his operations is very small. But in case of big organizations, thesefunctions are to be performed by different sets of people. Workers` participation
in management seeks to bridge this gap authorizing workers to take part in
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managerial process. Actually, this is a very wide view of the term worker`s
participation in management and this is not practically possible.
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Participation may take two forms. It may be: (1) ascending participation, and(2) descending participation. In case of ascending participation, the workers
may be given an opportunity to influence managerial decisions at higher levels
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through their elected representatives to joint councils or the board of directors of
the company. But in descending participation, they may be given more powers
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to plan and to make decisions about their own work (e.g. delegation and jobenlargement). This form of participation is quite popular in many organizations.
4.2.2. Implications of Workers Participation in Management
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The implications of workers` participation in management have been
summarized by the International Labour Organization thus:
1. Workers have ideas which can be useful.
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2. Upward communication facilitates sound decision-making. Workers
may accept decisions better if they participate in them.
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3. Workers may work more intelligently if they are informed about thereasons for and the intention of decisions that are taken in a participative
atmosphere.
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4. Workers may work harder if they share in decisions that affect them.
5. Workers participation may foster a more cooperative attitude amongst
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workers and management thus raising efficiency by improving teamspirit and reducing the loss of efficiency arising from industrial disputes.
6. Workers participation may act as a spur to managerial efficiency.
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4.2.3. Definitions
The concept worker`s participation in management (WPM) is a broad and
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complex one. Depending on the socio-political environment and culturalconditions, the scope and contents of participation may change. In any case, a
common thread running through all interpretations is the idea of associating
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employees in managerial decision-making. The view expressed by the
International Institute for Labour Studies (Bulletin 5) is worth quoting here.
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WPM has been defined as, the participation resulting from practices whichincrease the scope for employee`s share of influence in decision-making at
different tiers of organizational hierarchy with concomitant assumption of
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responsibility.
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The concept of worker`s participation in management crystallizes the concept ofIndustrial Democracy, and indicates an attempt on the part of an employer to
build his employees into a team which work towards the realization of a
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common objective1.
According to Davis, it is a mental and emotional involvement of a person in a
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group situation which encourages him to contribute to goals and shareresponsibilities in them2.
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Worker`s participation in management is a resounding phrase, bridging the past
and the future. It echoes the millennial vision of nineteenth century thinkers
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while heralding the evolution of new forms of industrial organization undertwentieth century pressures. The word workers` participation` is plentifully
supplied with ideas, institutions and opinions3.
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Mamoria defines it as a system of communication and consultation either formal
or informal by which employees of an organization are kept informed about the
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affairs of the undertaking and through which they express their opinion andcontribute to management decisions4.
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The International Institute of Labour Studies remarks: The participation results
from practices which increase the scope for employees` share of influence in
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decision-making at different tiers of the organizational hierarchy withconcomitant assumptions of responsibility5. This becomes meaningful only in
such a situation. Here it is quite evident that the participation of each should
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strictly confine to the field for which he is competent and concerned with.
Everybody poking his nose into everything is, therefore, not participation, but
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proliferation. This must have been the reason why a group of practisingmanagers defined: workers` participation in management is involvement of
workers only in such areas of activities of the enterprises where they can make
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some positive contribution for the betterment of the enterprise.6 Such
participation should facilitate effective utilization of available resources and
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effective execution of long-term expansion plans, including diversification. Itshould facilitate the day-to-day functioning as well as inventions and
innovations.
4.2.4. Need of Workers' Participation
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Worker`s participation in management has assumed great importance these days
because of the following advantages:
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1. Reduced industrial unrest: Industrial conflict is a struggle between twoorganized groups which are motivated by the belief that their respective
interests are endangered by the self-interested behaviour of the other.
Participation cuts at this very root of industrial conflict. It tries to
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remove or at least minimize the diverse and conflicting interests betweenthe parties, by substituting in their place, cooperation, homogeneity of
objects and common interests. Both sides are integrated and decisions
arrived at becomes ours rather than theirs.
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2. Reduced misunderstanding: Participation helps dispelling employee`smisunderstanding about the outlook of management in industry.
3. Increased organization balance: If worker are invited to share in
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organizational problems, and to work towards common solutions, a
greater degree of organizational balance occurs because of decreased
misunderstanding of individual and group conflict. Participation leads to
increased understanding throughout the organization. People learn that
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others have problems beside themselves.4. Higher productivity: Increased productivity is possible only when there
exists fullest co-operation between labour and management. It has been
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empirically tested that poor labour management relations` do notencourage the workers to contribute anything more than the minimum
desirable to retain their jobs. Thus, participation of workers in
management is essential to increase industrial productivity.
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5. Increased Commitment: An important prerequisite for forging greatercommitment is the individual`s involvement and opportunity to express
himself. Participation allows individuals to express themselves at the
work place rather than being absorbed into a complex system of rules,
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procedures and systems. If an individual knows that he can express hisopinion and ideas, a personal sense of gratification and involvement
takes place within him. This, in turn, fortifies his identification with the
organization resulting in greater commitment.
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6. Industrial democracy: Participation helps to usher in an era ofdemocracy in industry. It is based on the principle of recognition of the
human factor. It tends to reduce class conflict between capital and
labour. It also serves as a support to political democracy.
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7. Development of Individuals: Participation enhances individual creativity
and response to job challenges. Individuals are given an opportunity to
direct their initiative and creativity towards the objectives of the group.
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This facilitates individual growth.8. Less resistance to change: when changes are arbitrarily introduced from
above without explanation, subordinates tend to feel insecure and take
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counter measures aimed at sabotage of innovations. But when they haveparticipated in the decision making process, they have had an
opportunity to be heard. They know what to expect and why. Their
resistance to change is reduced.
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The realization of workers` need for participation in the management isinfluenced by the following factors:
1. Technology adoption leading to complexity in production process calls
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for increased worker cooperation.
2. Employees are no longer treated as subservient but are treated as equals.
3. Growing influence of union prevents exploitation of employees by
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management.
4. There are regulations and legislations that facilitate increased workers
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participation in management.5. Higher levels of productivity and efficiency can only come through
motivated and committed employees.
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4.2.5. Objectives of Workers' Participation in Management:
The main objectives of workers` participation in management include:
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i. To promote increased productivity for the advantage of the organization,workers and society at large;
ii. To provide a better understanding to employees about their role and
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place in the process of attainment of organizational goals;
iii. To satisfy the workers` social and esteem needs; and
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iv. To strengthen labour management co-operation and thus maintainingindustrial peace and harmony.
v. To develop social education for effective solidarity among the working
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community and for tapping latent human resources.
vi. An ideological point of view to develop self-management in industry.
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vii. An instrument for improving efficiency of the company and establishingharmonious industrial relations.
viii. To build the most dynamic human resource.
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ix. To build the nation through entrepreneurship and economic
development.
x. To improve the quality of working life by allowing the workers greater
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influence and involvement in work and the satisfaction obtained from
work.
xi. Development of human personality
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xii. Development of leader from within the industry.
xiii. Development of working class.
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xiv. Creation of a just egalitarian society.xv. Facilitate self-development of worker.
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4.2.6. Essential Conditions for Successful Working of WPM
The success of workers portion in management depends upon the following
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conditions7.1. The attitude and outlook of the parties should be enlightened and impartial
so that a free and frank exchange of thoughts and opinions could be possible.
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Where a right kind of attitude exists and proper atmosphere prevails theprocess of participation is greatly stimulated.
2. Both parties should have a genuine faith in the system and in each other and
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be willing to work together. The management must give the participatinginstitution its rightful place in the managerial organization of the undertaking
and implementing the policies of the undertaking. The labour, on the other
hand, must also wholeheartedly co-operate with the management through its
trade unions. The foremen and supervisory cadre must also lend their full
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support so that the accepted policies could be implemented without anyresentment on either side.
3. The experiment of labour participation in management must be given a wide
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publicity in order that the idea of participation is ingrained in the minds ofthose who are to implement the scheme. Lectures, discussion, film shows,
conferences, seminars and other methods of propaganda may be fruitfully
employed to create enthusiasm about the scheme among the management as
well as the workers.
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4. Participation should be real. The issues related to increase in production and
productivity; evaluation of costs, development of personnel and expansion of
markets should also be brought under the jurisdiction of the participating
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bodies. These bodies should meet frequently and their decisions should betimely implemented and strictly adhered to.
5. Objectives to be achieved should not be unrealistically high, vague or
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ambiguous but practicable of achievement and clear to all.6. Form, coverage, extent and level of participation should grow in response to
specific environment, capacity and interest of the parties concerned.
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7. Participation must work as complementary body to help collective
bargaining, which creates conditions of work and also creates legal relations.
8. Institutional participation should be discouraged but such participation
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should be encouraged through changes in leadership styles, communication
process, and inter-personal and inter-group relations.
9. There should be a strong trade union, which has learnt the virtues of unit and
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self-reliance so that they may effectively take part in collective bargaining or
participation.
10. Multiple unions in the enterprise should be restricted by legislative
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measures. Similarly, there should be no multiplicity and duplicacy of
bipartite consultative machinery at the plant level.
11. A peaceful atmosphere should be there wherein there are no strikes and lock-
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outs, for their presence ruins the employees, harms the interest of the
society, and puts the employees to financial losses.
12. Authority should be centralized through democratic management process.
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The participation should be at the two or at the most three levels.
13. Programmes for training and education should be developed
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comprehensively. Labour is to be educated to enable him to think clearly,rationally and logically; to enable him to feel deeply and emotionally; and to
enable him to act in a responsible way. The management at different levels
also needs to be trained and oriented to give it a fresh thinking on the issues
concerned.
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14. Progressive personnel policies should ensure growth of individual workers
within industry and proper policies should exist for selection, promotion,
compensation, rewards and discipline.
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15. Management should be prepared to give all information connected with the
working of the industry and labour should handle that information with full
confidence and responsibility.
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16. The Follow-up action on the decisions of the participating forums should be
ensured. The government may also set up machinery to act as a watch-dog
for implementing the scheme.
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17. Effective two-way communication is a must for the success of the
programme. The shorter is the time for communication, the greater is the
probability of correct interpretation.
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III. WORKERS' PARTICIPATION IN MANAGEMENT IN INDIA
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4.3.1. Prelude
In our country, the concept of workers` participation in management is
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comparatively of recent origin. Workers` participation in management in India
entered the Indian scene in the year, 1920, when Mahatma Gandhi had
suggested that workers should participate and contribute to the organization and
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also share its prosperity. He advocated a relationship characterized by friendship
and co-operation between the workers and the management.
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In India workers` participation in management is one of the Directive Principlesof State Policy embodied in Article 43-A of our constitution. The Royal
Commission on Labour (1929-1931) recommended the formation of works
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committees and joint machinery. The Tata iron and steel company (TISCO) has
established joint committees in 1958. The committee under the chairmanship of
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Justice Rajendra Sachar suggested methods for improving workers` participationin management. The recommendations of the committee included workers`
representation in board of directors and allotment of equity to workers. Similarly
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another committee under the chairmanship of Ravindhra Varma the then union
Minister for Labour was constituted to look into various aspects, statutory and
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non statutory schemes and also recommended outlines or comprehensiveschemes for workers` participation in management. The key recommendations
of the committee included:
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1) Three ? tier system of participation that is, shop-floor, plant and board
levels.
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2) Legislation for covering all undertakings with 500 or more workers. ( publicor private)
3) Provision for extending the scheme to enterprises with at least 100 workers.
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4) Usage of secret ballot for electing representative.5) Issue of not less than 10% equity to workers.
4.3.2. Forms of workers' participation in management
The various forms of workers` participation in management currently prevalent
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in the country are:
1) Works Committee8
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The tri-partite sub-committee of the 17th session of the Indian LabourConference (1959) laid down an illustrative list of items which the works
committee will normally deal with, namely:
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i. Conditions of work, such as ventilation, lighting, temperature and sanitation,including latrines and urinals;
ii. Amenities, such as drinking water, canteens, dinning rooms, cr?ches, rest
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rooms, medical and health services;
iii. Safety and accident prevention, occupational diseases and protective
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equipment;iv. Adjustment of festival and national holidays;
v. Administration of welfare and fine funds;
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vi. Educational and recreational activities, such as libraries, reading rooms,
cinema shows, sports, games, picnic parties, community welfare and
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celebrations;vii. Promotion of thrift and savings;
viii. Implementation and review of decisions reached at meetings of works
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committees.
The sub-committee has also pointed out a list of items which the works
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committees will not normally deal with, like:i. Wages and allowances;
ii. Bonus and profit sharing schemes;
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iii. Rationalization and matters connected with the fixation of workload;
iv. Matters connected with the fixation of standard labour force;
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v. Programmes of planning and development;vi. Matters connected with retrenchment and lay-off;
vii. Victimization for trade union activities;
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viii. Provident fund, gratuity schemes and other retirement benefits;
ix. Quantum of leave and national and festival holidays;
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x. Incentive schemes; andxi. Housing and transport services.
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The usefulness of the institution of works committee as a channel for jointconsultation and for the promotion of harmonious industrial relations was
stressed in the successive five-year plans. The National Commission on Labour
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(1969), the general feeling among knowledgeable people in the country is that
the committees have not proved effective. The employers` associations have
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attributed the failure of the works committees to factors like inter-unionrivalries, conflict between union jurisdiction and the jurisdiction of the works
committees, lack of positive response, routine meetings without any worthwhile
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discussions. etc. In a nutshell, works committee mechanism is a failure in India.
According to the NCL, the effectiveness of the committees will depended on
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the following factors:i. A more responsive attitude on the part of the management;
ii. Adequate support from the unions;
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iii. Proper appreciation of the scope and functions of the works committees;
iv. Wholehearted implementation of their recommendations;
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v. Proper co-ordination of the functions of the multiple bipartite institution atthe plant level; and
vi. Conferring of right to the recognized union to nominate all worker members
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on this body.
2) Joint Management Councils (JMCs 1958)
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The Second Five-Year Plan recommended the setting up of joint councils of
management consisting of representatives of workers and management. The
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Government of India deputed a study group (1957) to study the schemes of
workers` participation in management in countries like UK, France, Belgium
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and Yugoslavia. The report of the study group was considered by the IndianLabour Conference (ILC) in its 15th session in 1957 and it made certain
recommendations:
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a. Workers` participation in management schemes should be set up in selectedundertaking on a voluntary basis.
b. A sub-committee consisting of representatives of employers, workers and
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government should be set up for considering the details of workers`
participation in management schemes. This committee should select the
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undertakings where workers` participation in management schemes wouldbe introduced on an experimental basis.
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Objectives
The objectives of Joint Management Councils are as follows:
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i. To increase the association of employers and employees, thereby promotingcordial industrial relations;
ii. To Improve the operational efficiency of the workers;
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iii. To provide welfare facilities to them;
iv. To educate workers so that they are well prepared to participate in these
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schemes; andv. To satisfy the psychological needs of workers.
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A tripartite sub-committee was set up as per the recommendations of Indian
Labour Conference which laid down certain criteria for selection of
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enterprise where the JMCs could be introduced. They are:i. The unit must have 500 or more employees;
ii. It should have a fair record of industrial relations;
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iii. It should have a well organized trade union;
iv. The management and the workers should agree to establish JMCs;
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v. Employers (in case of private sector) should be members of the leadingEmployers` Organization; and
vi. Trade unions should be affiliated to one of the central federations.
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It was observed by the sub-committee that if the workers and employers
mutually agree they can set up JMCs even if these conditions are not met.
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Functions
The following are the important functions of JMCs:
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a. To be consulted on matters like standing orders, retrenchment, rationalization,closure, reduction of operations etc.
b. To receive information, to discuss and offer suggestions.
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c. To shoulder administrative responsibilities like maintaining welfare measures,
safety measures, training schemes, working hours, payments of rewards.
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3) Joint Councils9At every division/region/zonal level, or as may be considered necessary in a
particular branch of an organization/service employing 100 more people, there
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shall be a joint council.
a. The main feature of the joint council shall be:
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(i) Each organization/service shall decide the number of councils to be set upfor different types of services rendered by it in consultation with the
recognized unions-or workers as the case may be, in the manner best suited
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to the local conditions.
(ii) Only such persons who are actually engaged in the organization/service shall
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be members of the joint council. Each organization/service may decide thenumber of members in the manner suggested in item(s) but the membership
should not be unwieldy.
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(iii)The tenure of the council shall be two years. If, however, a member is
nominated in the mid-term of council to fill a causal vacancy, the member
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nominated shall continue in office for the remaining period of the council`stenure.
(iv) The chief executive of the organization/service or of
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itsdivisional/regional/zonal branch, as the case may be, shall be the chairman
of the joint council. There shall be a vice-chairman who will be chosen by
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the worker-members of the council.
(v) The joint council shall appoint one of its members as its secretary who will
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prepare the agenda, record the minutes of the meetings and report on theimplementation of the decisions arrived at every meeting. The management
shall provide the necessary facilities within the premises of the
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organization/service for the efficient discharge of his functions by the
secretary.
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(vi) The joint council shall meet whenever considered necessary, but at leastonce in a quarter. Every meeting shall review the action taken on the
decisions of earlier meetings for an effective follow-up action.
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(vii) Every decision of the joint council shall be on the basis of consensus and
not by a process of voting; it shall be binding on the management and
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workers and shall be implemented within one month, unless otherwisestated in the decision.
b. Functions of the Joint Councils
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The following are the functions of the joint council:
i. The settlement of matters which remain unresolved by unit level councils
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and arranging joint meetings for resolving inter-council problems.ii. Review of the working of the unit level council for improvement in the
customer service and evolving for the best way of handling of goods traffic,
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accounts, etc.
iii. Unit level matters which have a bearing on other branches or on the
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enterprise as a whole.iv. Development of skills of workers and adequate facilities for trading.
v. Improvement in the general conditions of work.
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vi. Preparation of schedules of working hours and holidays.vii. Proper recognition and appreciation of useful suggestions received from
workers through a system of rewards.
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viii. Discussion on any matter having a bearing on the improvement of
performance of the organization/service with a view to ensuring better
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customer service.4) Unit councils
Encouraged by the success of the Joint Councils scheme in manufacturing and
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mining units, a new scheme of workers` participation in management in
commercial and service organizations in the public sector, having large-scale
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public dealings, was announced on 5th January 1977. The scheme envisaged thesetting-up of unit councils in units employing at least 100 persons.
a. Features of the Scheme
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The main features of the scheme are:
(i) A unit level council, consisting of representatives of workers and
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management of the organization/service, employing 100 or more workers,may be formed in each unit to discuss day-to-day problems and find
solutions; but wherever necessary a composite council may be formed to
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serve more than one unit, or a council may be formed department-wise to
suit the particular needs of an organization/service.
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(ii) Every unit council shall consist of an equal number of representatives ofthe management and workers. The actual number of members should be
determined by the management in consultation with the recognized union,
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registered unions or workers in the manner best suited to the local
conditions obtaining in a unit or an organization but their total number
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may not exceed 12. It would be necessary to nominate suitable andexperienced workers from various departments, irrespective of their cadre,
affiliation or status, and not trade union functionaries who may not be
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actually working in the unit.(iii) The management`s representatives should be nominated by the
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management and should consist of persons from the unit concerned.
(iv) The management shall, in consultation with the recognized union or the
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registered union or workers as the case may be, determine in the mannerbest suited to local conditions, the number of unit councils and the
departments to be attached to each council of the organization/service.
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(v) All the decisions of a unit council shall be on the basis of consensus and
not by a process of voting, provided that either party may refer the
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unsettled matters to the joint council for consideration.(vi) Every decision of a unit council shall be implemented by the parties
concerned within a month, unless otherwise stated in the decisions itself.
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(vii) The management shall make suitable arrangements for the recording and
maintenance of minutes of meetings and designate one of its
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representatives as a secretary for this purpose, who shall also report on theaction taken on the decisions at subsequent meetings of the council.
(viii) Such decisions of a unit council as have a bearing on another unit of the
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organization/service as a whole shall be referred to the joint council for
consideration and decision.
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(ix) A unit council once formed shall function for a period of three years. Anymember nominated or elected to the council in the mid-term to fill a casual
vacancy shall continue to be a member of the council for the unexpired
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period of the term of the council.
(x) The council shall meet as frequently as is necessary but at least once a
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month.(xi) The chairman of the council shall be a nominee of the management. The
worker members of the council shall elect a vice-chairman from amongst
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themselves.5) Plant Council
(i) The plant council is formed in pursuance of the recommendations of the
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second meeting of the Group on Labour at New Delhi on 23rd September
1985. The scheme is applicable to all Central public sector undertakings,
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except those which are given specific exemption from the operation of thescheme by the government.
a. Functions of Plant Council
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The plant council shall normally deal with the following matters:
(A) Operational Areas
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(i) Determination of productivity schemes taking into consideration the localconditions;
(ii) Planning, implementation, and attainment and review of monthly targets
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and schedules;
(iii) Material supply and preventing its shortfall;
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(iv) Housekeeping activities;(v) Improvement in productivity in general and in critical areas in particular;
(vi) Quality and technological improvements;
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(vii) Machine utilization, knowledge and development of new products;
(viii) Operational performance figures;
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(ix) Encouragement to and consideration of the suggestion system;(x) Matters/problems not sorted out at the shop floor level or those that
concern more than one shop; and
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(xi) Review of the working of shop level bodies.
(B) Economic and Financial Areas
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(i) Profit and loss statements, balance sheet;(ii) Review of operating expenses, financial results, and cost of sales;
(iii) Enterprise performance in financial terms, labour and managerial cost, and
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market conditions, etc.(C) Personnel Matters
(i) Matters relating to absenteeism;
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(ii) Special problems of women workers; and
(iii) Initiation and administration of workers` programmes.
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(D) Welfare Areas(i) Implementation of welfare schemes, such as medical benefits, housing and
transport facilities;
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(ii) Safety measures;
(iii) Township administration; and
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(iv) Control of the habits of gambling, drinking and indebtedness among theworkers.
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(E) Environmental Areas
(i) Environmental protection; and
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(ii) Extension activities and community development projects.(6) Shop Councils
a. Main features
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The main features of the shop council scheme are:
(i) In every industrial unit employing 500 or more workers, the employers
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shall constitute a shop council for each department or shop or one councilfor more than one department or shop, on the basis of the number of
workers employed in different departments or shops.
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(ii) (a) Each council shall consist of an equal number of representatives of
employers and workers.
(b) The employers` representatives shall be nominated by the management
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and must consist of persons from the unit concerned.
(c) All the representatives of workers shall be from amongst the workers
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actually engaged in the department of the shop concerned.(iii) The employer shall, in consultation with the recognized union or the
various registered trade unions or with workers, as the case may be
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determine in the manner best suited to local conditions, the number shop
councils and departments to be attached to each council of the undertaking
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or establishment.(iv) The number of members of each council may be determined by the
employer in consultation with the recognized union. The total number of
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members may not exceed 12.
(v) All the decisions of the shop council shall be on the basis of consensus and
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not by voting.(vi) Every decision of the shop council shall be implemented by the parties
concerned within a period of one month unless otherwise stated in the
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decision it self.
(vii) Such decisions of the shop council having a bearing on another shop or
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department or the undertaking as a whole shall be referred to the jointcouncil for consideration and decision.
(viii) A shop council, once formed, shall function for a period of three years.
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(ix) The council shall meet as frequently as is necessary but at least once a
month.
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(x) The chairman of the shop council shall be a nominee of the management;the worker members of the council shall elect a vice-chairman from
amongst themselves.
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a. Functions of Shop Councils
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To achieve increased production, productivity and over-all efficiency of the
shop department, the shop council should attend to the following matters:
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(i) to assist management in achieving monthly/yearly production targets;(ii) To improve production, productivity and efficiency. Including elimination
of wastage and optimum utilization of machine capacity and manpower;
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(iii) To specially identified areas of low productivity and take the necessary
corrective steps at shop level to eliminate relevant contributory factors;
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(iv) To study absenteeism in the shop/department and recommend steps toreduce it;
(v) To suggest safety measures;
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(vi) To assist in maintaining general discipline in the shop/department;
(vii) Suggest welfare measures to be adopted for efficient running of the
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shop/department;(viii) Suggest improvements in physical conditions of working ? lighting,
ventilation, noise, dust, etc., and reduction of fatigue;
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(ix) To ensure proper flow of adequate two-way communication between the
management and the workers, particularly on matters relating to
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production schedules and progress in achieving the targets that have beenset;
(x) Suggest technological innovations in the shop;
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(xi) To assist in the formulation and implementation of quality improvement
programme;
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(xii) To determine and implement the work system design;(xiii) To formulate plans for multiple skill development programme;
(xiv) To assist in the ;implementation of cost reduction programme;
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(xv) To supervise the group working system;
(xvi) To ensure a periodic review of the utilization of the critical machines;
(7) Workers' Representation on Board of Management
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On the recommendations of the Administrative Reforms Commission made in
its report on public sector undertakings, the Government of India accepted, in
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principle, that representatives of workers should be taken on the Board ofDirectors of public sector enterprises. A few notable features of the scheme are:
(i) The representatives of workers on the board should be those actually
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working in the enterprise.
(ii) To begin with, participation should be limited to companies which employ
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1,000 or more persons (excluding casual and badli workers).(iii) The definition of workmen`, as given in the Industrial Disputes Act, 1947,
would be appropriate for the scheme.
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(iv) The participation at the Board level should be introduced if at least 51 per
cent of the workers vote in a secret ballot in favour of this participation. In
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that event, the company will be legally bound to fall in line with theirwishes. However, any company can voluntarily introduce this participation
scheme.
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(v) Before fixing the proportion of Worker Directors on the Board, a more
detailed consideration should be given to the issue by the Central
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Government.(vi) The Worker Director will be elected by all the workers of the company
through secret ballot. Each voter will have cumulative voting rights.
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(vii) The pre-requisite of this scheme of participation shall be training in the
business of the company. It will be the responsibility of the government to
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organize this training programme. An awareness of industrial relationsand of business techniques will certainly make the workers more aware of
the actual problems faced by the companies in modern society. The
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training of the employees must, therefore, be immediately taken in hand.
(viii) The presence of the Worker Director on the Board would not lead to any
breach in the confidentiality of the information required by him.
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(ix) The Reforms Commission did not favour a two-tier representation, i.e., a
Supervisory Board and the Smaller Management Board.
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a. Functions Under the Scheme
The employees` representative/Worker Director participates in all the functions
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of the Board. Besides this, they also review the working of shop and plant
councils and takes decisions on matters not settled by the council.
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(8) Workers' Participation in Share CapitalThe Sachar Committee had, in its report to the government, observed: Quite a
majority (was) in favour of the suggestion that, in all their future issues of
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shares, the companies should reserve a portion of their new shares, say about
10% to 15%, exclusively for the workers, called the workers shares. These
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shares, in the first instance, must be offered to the employee if the company;failing that, they should be offered to the existing shareholders or the public. For
that purpose, Section 81 of the Act should be suitably amended. Section 77 of
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the Act should also be amended, permitting companies to give to the employees
a loan up to 12 months` salary or wages, not exceeding Rs.12, 000, for the
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purchase of the shares of the company. This scheme, however, has not foundfavour with the industries in India.
Reference
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1. .J.P. Kesari, The System of Workers Participation in Management,
Indian Journal of Social work, xx.1:4.
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2. Keith Davis, Human Relations in Business, 1957, p.288.3. Kenneth F. Walker, workers Participation in Management in Practice,
An International Perspective, in Thakur and Sethi, op.cit.,p.226.
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4. C.B. Memoria and Satish Mamoria, Dynamics of Industrial Relations inIndia, Himalaya publishing house, Mumbai, 1990, p.479.
5. The International Institute for Labour Studies, Bulletin 5,
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November,1968.
6. A Group of senior managers who participated in a workshop on workers`
participation in management and equity at the Indian Institute of
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Management, Calcullta,quoted by Sethi, Krishnan C., Decisions, Vol.5,No.3, July 1978, p.187.
7. C.B. Mamoria and Satish Mamoria, Himalaya Publishing House, 2005,
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pp.518-519.8. A.M. Shrma, Industrial Relation Conceptual and Legal frame work,
Himalaya Publishing House, 2004, p.249-250.
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9. C.B. Mamoria, Satish Mamoria, S .V. Gankar, Dynamics of Industrial
Relations, op.cit, p.618-625.
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Review Questions1. Describe various methods and process in employee counselling?
2. What is the role of Indian Labour Conference and Standing Labour
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Committee in promoting harmonious industrial relations?
3. What are the stages in collective bargaining process? What are the
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strategies or tactics adopted by the management and union in thebargaining process?
4. What are the various settlement machinery setup for settling industrial
--- Content provided by FirstRanker.com ---
disputes? How far they are helpful to settle the disputes?
5. Explain about Model Grievance Procedure? And discuss about the stages
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in the grievance procedure?6. Write about the problems in employee counselling?
7. Write about the implications and essential conditions for successful
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working of worker`s participation in management?
8. Give a brief explanation on worker development?
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9. What are the various methods or forms through which the participationof workers in management is encouraged in our country? Why the results
are far from the expectations?
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10. Discuss about the tripartism link with bipartism and mutual contribution
to each other?
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Unit ? IV
Lesson 1
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Employee Discipline
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Objectives:- The aim of this lesson is to familiarize the student with :The concept of employee discipline
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Causes for indiscipline
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The procedure for taking disciplinary action
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Structure :- 1. 1 ? Introduction1.2 ? Causes of indiscipline
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1.3 ? Types of discipline
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1.4 ? Essentials of a good disciplinary system
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1.5 ? Kinds of punishment1.6 ? Procedure for taking disciplinary action
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1.7 ? Self assessment questions
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1.8 ? Further Readings
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1.1 - INTRODUCTION
Nothing left loose ever does anything creative. No horse gets anywhere until he
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is harnessed. No steam ever drives anything until it is confined. No Niagra isever turned into light and power until it is funnelled. No man ever grows until he
is disciplined.
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Discipline is an inevitable correlate of organisation. To be organised means to
be disciplined and vice versa. The behaviour of an employee is at the root of all
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discipline in an organisation. Every manager wants this behaviour to be inconformity with the required system which he has prescribed in order to achieve
the organisational goals. But not infrequently we find employees deviating from
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this required system. The reason is that they have their own unique individual
systems of behaviour which they cannot easily give up when they enter as
members of an organisation. It is at that many problems of employer-employee
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relations and of individual adjustment arise.
1.2 - CAUSES OF INDISCIPLINE
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It is very difficult to prepare an exhaustive list of the reasons which leademployees to indiscipline. In fact, a number of social, economic, cultural and
political reasons contribute to indiscipline in an organisation. Important among
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these causes are the following:
1. Ineffective leadership which cannot control, coordinate and motivate
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workers.2. Low wages and poor working conditions.
3. Lack of promotional opportunities due to which people feel stagnated
4. Absence of any code of conduct to regulate behaviour on both sides.
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5. Lack of timely redressal of workers' grievances.6. Unfair management practices.
7. Defective communication system.
8. Lack of workers' education.
9. Uninteresting work.
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10. Drunkenness and family problems.11. Outside political influences.
12. Excessive work pressure.
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1.3 - TYPES OF DISCIPLINEDiscipline may be of two types: positive and negative. Positive discipline or
'self-discipline' is the best discipline. This refers to an organizational atmosphere
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in which subordinates willingly abide by rules, which they consider fair. The
techniques followed by the management to achieve this type of discipline
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include positive motivational activities such as praise, participation andincentive pay. Negative or punitive discipline is one in which management has
to exert pressure or hold out threat by imposing penalties on wrongdoers. When
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this pressure becomes increasingly severe each time a man is disciplined, it is
called "progressive" or "corrective" discipline.
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Arguments Against Negative Discipline or Punishment
Many people argue that punishment should be avoided as a means of trying to
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Influence behaviour. Their objections are as follows:(a) For punishment to be at all effective, there must be continued monitoring or
surveillance, which is a very wasteful use of high-priced managerial time.
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(b) Punishment never really extinguishes or eliminates undesirable response
tendencies, but only temporarily suppresses them. These tendencies
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reappear with full force when the threat of punishment is removed(c) Punishment has undesirable side effects. It may cause resentment and
hostility awards the punisher with motive of trying to "get even" later
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through sabotage, output restriction, or doing things that make the punisher
"look bad" or cause him inconvenience. The fear associated with the
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punishing agent may lead the punished person to avoid his very presence;this, in turn, makes it more difficult for the manager to play the desired role
of coach, teacher, or counsellor. Or the reaction to punishment may be
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more extreme, resulting in generalised inhibition and rigidity or stereotyped
behaviour in the punished person; this can make it more difficult for the
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person to learn new behaviour, including very desirable behaviour, or toadjust to change.
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Alternatives to Punishment
Alternatives to punishment in eliminating undesired behaviour include the
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following:(a) Extinction. Find out what reinforces the undesired behaviour. For example,
the unruly subordinate may be getting praise and recognition from peers.
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Then get those peers to co-operate with you by ignoring the unruly
behaviour. When such behaviour is not reinforced, it will eventually lose
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strength and extinguish.(b) Environment Engineering. Rearrange the features of the environment so
that the Stimulus situation does not evoke the undesired response but some
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other response. Skinner (1953) tells the story of a manager who had atraffic problem caused by women hurrying down the corridor as soon as the
end of the workday was signalled. The manager solved his problem by
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placing wall mirrors along the corridor. The stimulus situation that had
evoked stampeding down the hallway was transformed into one which
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encouraged a more leisurely and orderly walk-and-stop sequence.(c) Reward. Reward either desirable or natural behaviour, which is physically
incompatible with the undesired behaviour. If children are rewarded for
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taking exercise or for performing light outdoor chores before dinner, they
are prevented from excessive snacking and television watching.
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(d) Adjustment. Allow adjustment, development, or maturation to take itscourse. New or inexperienced employees make many mistakes and do
many wrong things that they will learn to avoid, given a reasonable period
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of adjustment: punishment may not hasten this process, and it causes undue
anxiety, it can actually retard this process.
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1.4 - ESSENTIAL OF A GOOD DISCIPLINARY SYSTEM
While punitive discipline or punishment may sometimes be ineffective in
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changing behaviour or may produce unwanted by-products, there is nevertheless
considerable evidence that punishment can be an effective tool under certain
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conditions. These are as under:1. Knowledge of Rules. The employee must be informed clearly about what
constitutes good behaviour and the rewards that may emanate from it. All
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instructions should be clear and understandable. It is common sense that an
employee will obey an instruction more readily if he understands it.
The supervisor himself must know all the rules. He cannot effectively
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communicate with his workers if his own knowledge about rules is half baked.
In fact, he needs to know more than the barest minimum that he wants his
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workers to know. This reserve of knowledge is essential in order to be able toanswer several unexpected question from workers. In other works, a supervisor's
span of knowledge and understanding of rules should be greater than that of his
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workers. If this is not so, the supervisor will lose personal prestige both before
his supervisors and subordinates.
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2. Prompt Action. All violations and misconducts-big and small-should bepromptly enquired into. For example, a supervisor is most unwise to wait until
lunch break before rebuking a worker for arriving late. Beat the iron when it is
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hot. This is because when the penalty is imposed immediately following the
violation of a rule the person punished tends to identify the punishment with the
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act he committed. Accordingly, the subordinate attempts to avoid the violationin future. This is called the "law of effect". The greater the delay the more one
forgets and the more one feels that punishment is not deserved.
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3. Fair Action. Promptness of disciplinary action at the cost of its fairness is not
proper. An action in order to be fair must possess the following characteristics:
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(a) All violations-big and small-should be duly punished. A violation shouldnot be overlooked or condoned merely because it is small otherwise this will
give an impression that announced rules are meaningless.
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(b) All individuals-big and small-should receive equal punishment for equal
indiscipline. If a rule is applied to one individual but not to another, the
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management is bound to be accused of favouritism.(c)
Discipline should be uniformly enforced at all times. If management soft-
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pedals on taking a disciplinary action when there is shortage of labour and
toughens its policy when labour is plentiful it is acting arbitrarily.
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Similarly, if the management overlooks a wrong on one occasion andpunishes it on another occasion it is acting inconsistently. Inconsistent
behaviour of management leads to uncertainty in the minds of
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subordinates. They simply do not know where they stand.(d) The alleged violation should be fully inquired into. Making a mistake by
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hastily administering a penalty which on the basis of facts collected later
on is found to be uncalled for will mean a permanent destruction of the
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morale of the punished worker and general loss of face for the supervisor.(e) The employee should always be given an opportunity to explain his
action. The common law principle that an offender is innocent until he is
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proved guilty beyond doubt should be followed. The burden of proving
the violation always lies on the management.
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4. Well Defined Procedure. The procedure to be followed to reach to a penaltydecision should be carefully laid down. It should include the following steps:
(a) The supervisor must assure himself that some violation of the rules has
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taken place.
(b) He should state precisely and objectively the nature of the alleged
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violation.(c)
He should then proceed to gather full facts about the case and maintain
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proper records. Facts will have to be gathered concerning the nature of the
event, the participants and the surrounding circumstances. Extenuating
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circumstances such as ill-health, family troubles, etc., should be foundout. A critical analysis should be made of the person's background such as
his past service record, length of service, local practice, etc. Fact gathering
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is often a process of fact-sifting. Opinions should not be mistaken for
facts. The methods used for gathering the fact must not smack of spying
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and statements should not be prejudged.(d) After all the facts have been gathered, thought should be given to the
various types of disciplinary action which can be taken in the case in
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question. It is advisable to prepare three separate lists of actions. The firstlist should include all types of disciplinary action to make certain that no
possibility is overlooked. The second list should classify penalties
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according to rank in order to acquaint the executive with those actions
which lie within his command and those for which he should refer the
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case to his superiors. The third list should include only those penalties,which the offence in question specifically calls for.
(e) The appropriateness of a disciplinary action should be decided in terms of
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its effectiveness in correcting the employee. This is very important
because the purpose of a disciplinary action is to mend an employee and
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not to punish him, to help him and not to harm him.(f) The accused employee should have the right to appeal to higher
authorities.
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5. Constructive Handling of Disciplinary Action. Disciplinary action should
be handled in a constructive manner. It should be carried out by the immediate
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line supervisor. This employee should be told not only the reasons for the actiontaken against him but also how he can avoid such penalties in future.
Disciplinary action should be taken in private. By exposing an employee to
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public ridicule the supervisor attacks his dignity and social standing. This may
produce an opposite effect on the employee. He may react violently or may
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become obstinate to preserve his ego.It is most unwise for a supervisor to take a general disciplinary action against a
group of subordinates. Disciplinary action is a matter for the individual. It is the
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individual who should be held responsible for any wrong. A management which
takes disciplinary action against a group is likely to set off a wave of unrest
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associated with falling morale and even the possibility of wildcat strike.After the disciplinary action has been taken the supervisor must assume a normal
attitude towards the employee. He should revert to his role of a helping hand-as
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if nothing has happened. This is possible only when the supervisor uses animpersonal approach in administering a penalty. He should not engage in
personal ridicule, insult or even criticism. He should avoid getting into an
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argument. In short, he must play the role of a judge enforcing the law with
impartiality.
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Hot-stove RuleThis rule, so called by Douglas McGregor, draws an analogy between touching a
hot stove and undergoing discipline. When a person touches a hot stove:
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1.
The burn is immediate.
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2.He had warning. Particularly if the stove was red hot he knew what would
happen if he touched it.
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3.
The effect is consistent. Every one who touches a red-hot stove would be
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burned.4.
The effect is impersonal. A person is burned not because of who he is but
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because he touched the hot stove.
5.
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The effect is commensurate with the gravity of misconduct. A person whorepeatedly touches the hot stove is burnt more than one who touched it only
one.
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The same should be with discipline. The disciplinary process should begin
immediately after the violation is noticed. It must give a clear warning that so
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much penalty would be imposed for a given offence. The same kind ofpunishment should be consistently imposed for the same offence. Punishment
should be impose regardless of status difference. In other words, it should be
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impersonal in application. Punishment should be commensurate with the gravity of
the offence. An employee found guilty of an act of minor misconduct like
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unpunctuality or irregular attendance should not be awarded the same punishmentas may justifiably be awarded to an employee found guilty of an act of major
misconduct like the theft of employer's property.
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1.5 - KINDS OF PUNISHMENTFor various types of misconduct there are various punishments which are set out
below in the ascending order of their severity.
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1. Oral reprimand
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2. Written reprimand Minor
Minor
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3. Loss
of
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privilegesPunishments
Punishments
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4. Fines
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6. Withholding of increments
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Major7. Demotion
Punishments
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8. Discharge
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9. Dismissal1. Oral Reprimand. This is the mildest form of disciplinary action in which the
superior makes it clear to his subordinate that he does not approve of the
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subordinate's behaviour. This punishment is generally given for some minor
offences such as failure to obey safety rules, smoking in a prohibited area,
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sleeping on the job or giving sub-standard performance.Issue of reprimand does not involve loss of status or wages to the employee and,
therefore, though it amounts to disciplinary action, it is not deemed to be a
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substantive punishment. However, as people invariably value the social approval
of their superiors and fellow beings a reprimand is generally effective in
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correcting subordinates. But it should be used sparingly, otherwise it will notproduce any effect on the subordinate. A subordinate who is continually
criticised tries to cover up his mistakes, becomes tense, and loss his sense of
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security. He does not want to accept responsibility and on account of low moralecommits further mistakes.
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2. Written Reprimand. An oral reprimand may not be sufficient in case of
habitual misconduct or inefficiency. In such a situation it is desirable that it is
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issued in writing and brought on record so that it may support, if necessary, anysubstantive punishment that may have to be given to the employee in future. A
written reprimand may state that certain privileges would be withheld or
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withdrawn if the subordinate continues with his present conduct. In some
enterprises the records of an employee may be marked and the employee shown
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a copy of the notation to serve as a warning.A warning serves to alter the expectations of an individual by making him aware
of the exact nature of punishment that awaits him following further acts of
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disobedience. It is not fair for a superior to warn a subordinate and later punish
him more severely than was expected at the time of the warning.
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3. Loss of Privileges. For such offences as tardiness or leaving work withoutpermission, the employee may be put to loss of various privileges such as good
job assignments, right to select machine or other equipment and freedom of
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movement about the workplace or company.
4. Fines. Fine means a deduction from the remuneration of the employee by
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way of punishment. Power to make penal deductions from the remuneration ofthe employee is not an implied term of ordinary contract between master and
servant and can be exercised only if especially reserved to the employer under
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the contract of employment or a statute.
5. Punitive Suspension. Punitive suspension is different from the suspension
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pending an enquiry. Punitive suspension is inflicted on the workman as apunishment for some misconduct whereas suspension pending an enquiry is only
an expedient action which a manager may find necessary to take following
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commission of a grave and serious misconduct. Under punitive suspension anemployee is prohibited from performing the duties assigned to him and his
wages are withheld for so long as the prohibition subsists. Under suspension
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pending an enquiry, unless the conditions of service make a contrary provision,
a workman is entitled to wages for the period of suspension.
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6. Withholding of Increments. Withholding of annual increment of anemployee in a graded scale is a major punishment and, generally speaking, the
acts of misconduct for which this punishment may be awarded are the same as
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those for which the extreme punishment of dismissal may be awarded. The
cumulative effect of losing an increment is considerable. It is equal to the
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amount of increment times twelve months times the number of the year ofservice still remaining.
7. Demotion. Demotion means reduction of an employee to a lower grade from
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the one hitherto enjoyed by him. According to some writers since demotion
implies condemnation of the employee as being unfit for the position occupied
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by him it should not be used as a penalty if the employee is properly qualifiedfor the present assignment. Demotion should be used only in a case when an
employee does not meet present job requirement or in the event of a cutback in
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the work force.
8. Discharge. In common law, if both parties to an agreement have performed
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what they have agreed to do, the contract is discharged. Thus, in a contract ofservice if both parties have agreed to terminate the contract by giving stipulated
amount of notice or by paying money in lieu thereof the contract of service can
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be terminated in the agreed manner for reasons which do not imply any act of
misconduct; for example, an employee may be discharged owing to either
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redundance, or superannuation or infirmity, etc., in accordance with his contractof service, without any fault on his part. However, in the field of industrial
jurisprudence the term 'discharge' is used to denote removal of an employee
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from service by way of punishment. But no stigma is attached to the expression'discharge'. Hence, it is not a disqualification for future employment. Discharge
should be distinguished from discharge simpliciter which is termination of an
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employee's service not necessarily for any misconduct but for loss of
confidence.
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The plea of loss of confidence should, however, be bonafide and should besupported by evidence and should not be used as a mere pretext to terminate the
services of an unwanted employee. In the case of a discharge simpliciter the
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employer is not bound to hold an enquiry.
9. Dismissal. Also referred to as industrial capital punishment, dismissal is the
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ultimate penalty which is rarely resorted to now a days. Though discharge anddismissal both have the same result, namely, the termination of service of the
employee, there are some vital differences between the two. These are as
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follows:
(a) While dismissal is always a punishment, discharge may or may not be a
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punishment(b) A dismissal is more severe punishment than discharge. There is a stigma
attached to the expression "dismissal" which makes dismissal a
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disqualification for future employment. This is not so in the case of
discharge.
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(c) A dismissal is usually summary, that is, immediate action is taken toterminate the employment contract of the employee without notice. But in
case of a discharge an agreed amount of notice may have to be given. The
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justification for not giving a warning lies in the general acceptance that
the acts and omissions for which the punishment of dismissal may be
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inflicted are socially repugnant and a management is fully entitled toprotect itself against such acts.
(d) In cases of dismissal the employee is not usually entitled to provident fund
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or gratuity benefits but this is not so in the case of a discharge.The supreme punishment of dismissal is inflicted very rarely. Managers
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generally try to avoid it. They very often follow several other means of
eliminating a person without an outright dismissal. These are as follows:
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(a) The flow of work may be altered so that it goes around the particularemployee; thus he may take hint and submit his resignation.
(b) The job may be abolished and duties scattered about among other
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employees. Then after the employee has left the organisation, the duties
can be reassembled and a new employee hired to fill the job.
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(c) Resignation may be demanded by holding out threat of discharge.(d) In higher positions, the employee may be 'kicked upstairs' and promoted
out of the way; he may be made a special consultant and never consulted.
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The cost of his salary may be much less than the loss from retention in his
present job.
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(e) The employee may be transferred to some other department.1.6 - PROCEDURE FOR TAKING DISCIPLINARY ACTION
If the Standing Orders of an organisation provide for the procedure the same
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should be strictly followed, for the punishment may be held invalid if there is
any deviation from the laid down procedure.
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Whether or not there are Standing Orders the procedure for taking disciplinaryaction against workers should be based on the following principles of natural
justice:
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(a) The worker charged should be given an opportunity to present witnesses
of his own choice on whom he relies;
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(b) The worker should be given the right to cross examine management'sevidence;
(c) The evidence of the management should be taken in worker's presence;
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(d) No material should be used against the worker without giving him anopportunity to explain;
(e) The enquiry against the worker should be fair and conducted by an
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impartial person; and
(f) The punishment awarded should not be out of proportion to the
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misconduct committed. Following should be the steps for takingdisciplinary action:
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1. Preliminary Investigation. The first and primary step should be to hold a
preliminary investigation in order to find out whether a prima facie case of
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misconduct exists.2. Issue of a Charge-sheet. On the prima facie case of misconduct being
established the management should proceed to issue a charge-sheet to the
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worker. Charge-sheet is not a punishment in itself. It is merely notice of a charge
that the worker is responsible for some misconduct and that the management
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wants to know what he has to say about it. It gives the worker an opportunity toexplain his conduct. A charge-sheet is, therefore, also called a 'show cause
notice. This fact should be explained to the worker also who may sometimes
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refuse to accept the charge-sheet on the ground that he has not done any wrong.
The following guidelines may be followed in framing the charges:
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(a) Each charge must be very clear and precise. It should not be vague.(b) There should be a separate charge for each allegation.
(c)
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There should be no multiplication of charges for the same allegation.
(d)
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Charges must not relate to any matter which has already been decidedupon.
On the question whether the proposed punishment should or should not be
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mentioned in the charge-sheet, there is divergence of opinion among various
High Courts. Chennai, Andhra, Kolkata, Punjab and Haryana High Courts hold
the view that if the proposed punishment is mentioned in the charge-sheet then it
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amounts to prejudging the issue and the proceedings are vitiated. But the
Mumbai, Rajasthan and Allahabad High Courts seem to hold the opposite view.
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They observe that the mere mention of the proposed punishment mentioned inthe charge-sheet does not vitiate the enquiry. It does not mean that the employer
intended to punish the employee irrespective of the result of the enquiry or that
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he formed any opinion against the employee. It rather makes the employee
aware of the seriousness of the charges against him so that he can take proper
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defence. To be on the safer side, however, the employer should avoidmentioning proposed punishment in the charge-sheet.
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3. Suspension Pending Enquiry, if Needed. If the nature of misconduct is
grave and if it is in the interest of discipline and security in the establishment,
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the management may suspend a worker even before the charge-sheet is issued oran order of suspension may be given to the worker along with the charge-sheet.
Under Section 10A of the Industrial Employment (S.O) Act, 1946 the suspended
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worker is to be paid a subsistence allowance equal to one-half of his wages for
the first ninety days of suspension and three-fourths of the wages for the
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remaining period of suspension if the delay in the completion of disciplinaryproceedings against him is not due to his conduct. The Second NCL
recommends that the total period of suspension of a worker should in no case
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exceed one year.
4. Notice of Enquiry. On receipt of reply to the charge-sheet, three situations
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may arise: (i) The worker may admit the charge in an unqualified manner. If so,the employer can go ahead in awarding the punishment without getting the
matter enquired further, (ii) The worker may not admit the charge and the charge
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merits only minor penalty. In this case also the employer can go ahead in
awarding the punishment without holding further enquiry. (iii) The worker may
not admit the charge and the charge merits major penalty. In this case the
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employer must hold enquiry to investigate into the charge against the worker.
This enquiry is classed domestic enquiry.
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Proper and sufficient advance notice should be given to the worker indicatingthe date, time and venue of the enquiry and name of the enquiry officer so that
the worker may prepare his case. It should also be notified that he should be
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ready with oral and documentary evidence on the date of enquiry and bring
witnesses to prove his case.
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5. Conduct of Enquiry. This step should deal with three points:? deciding as to who should be the enquiry officer;
? deciding as how to proceed;
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? deciding about the order of examining witnesses.
Standing orders may provide as to who should hold the enquiry. Otherwise, an
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assistant manager or labour welfare officer or company's lawyer or someoutsider may be nominated. It should be remembered that for the purpose of
enquiry, the enquiry officer is a judge. So, it is necessary that he must be
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impartial and qualified to act in that capacity. An enquiry officer is disqualified
on any of the following grounds:
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(a) If he is involved in the incident which led to the charge-sheet.(b) If he has personal knowledge of the incident or himself gives or
collects evidence for the very enquiry conducted by him or helps
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others in doing so.
(c) If he himself has issued the charge-sheet.
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(d) If he is directly subordinate to the person accused.If the accused employee requests for another co-worker to represent and assist
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him in the conduct of his defence, the enquiry officer should allow this. But it is
management's discretion to allow or not to allow the accused worker to be
defended by a non-employee official of the union.
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As regards the order of examining witnesses, first the management witnesses
should be examined in the presence of the accused. Then fair opportunity should
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be given to him to cross-examine the management witnesses. Next, he himselfand his witnesses should be examined. They can be cross-examined by the
management.
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If a worker does not turn up for the enquiry without notice or reasonable cause
or refuses to participate or walks out then the enquiry officer may proceed to
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hold the enquiry exparte. The person who leads evidence from the managementside is called the Presentation Officer.
6. Recording of Findings by the Enquiry Officer. At the conclusion of the
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enquiry proceedings the enquiry officer should decide as to whether the charges
made are valid or not along with the reasons for his findings. As far as possible
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he should refrain from recommending punishment and leave it to the decision ofthe appropriate authority.
7. Awarding Punishment. This is the task of management. The punishment
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should be awarded on the basis of findings of the enquiry, past record of the
employee and gravity of misconduct.
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It should be noted that when a dispute is pending in conciliation, arbitration oradjudication proceedings the employer has no right to punish a workman for his
misconduct which is connected with the pending dispute. For example, a
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workman who has taken part in a gherao in furtherance of some demands
covered by the dispute being guilty of misconduct connected with the pending
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dispute cannot be punished. The authority before which the proceeding ispending for approval of the action taken by him (Sec. 33 of the Industrial
Disputes Act). In case of 'protected workmen', prior permission for dismissal
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and discharge is essential even when the misconduct is not connected with the
pending dispute. These protected workmen are trade union office--bearers who
are declared as such to save them from being victimised for raising or
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conducting the dispute. They are nominated by the unions, and their number is
not to exceed one per cent of the total workforce, subject to the minimum
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number of five.8. Communication of Punishment. The punishment awarded to the accused
should be communicated to him expeditiously. The letter communicating the
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punishment should contain:
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reference to the letter of charges issued to the employee;reference to the enquiry;
reference to the findings of the enquiry;
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decision whether to punish or not;date from which the punishment is to be effective.
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1.7 - SELF ASSESSMENT QUESTIONS:
1. Explain the procedure for taking disciplinary action.
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2. Describe the various kinds of punishment which are inflicted on a workerfor misconduct.
3. Discuss the reasons which lead employees to indiscipline.
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1.8 ? FURTHER READINGS
1. K.K. AHUJA, Personnel Management, KALYANI PUBLISHERS, NEW
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DELHI.2. C.B. MAMORIA & S. MAMORIA, Dynamics of Industrial relations,
HIMALAYA PUBLISHING HOME, NEW DELHI.
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3. A.M. SARMA, Concepts of Labour Welfare & Social Security,
HIMALAYA PUBLISHING HOME, NEW DELHI.
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=========================================================Lesson 2
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GRIEVANCE HANDLING MACHINERYObjectives:- After studying this lesson you should be able to:
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Understand the concept of Grievances
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Knowing the causes of Employee Grievances
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Learn the model Grievance procedure
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Structure:- 2.1 ? Introduction2.2 ? Causes of Employee Grievance
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2.3 ? Model Grievance Procedure
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2.4 ? Suggestions
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2.5 ? Self Assessment Questions2.6 ? Further Readings
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2.1 - INTRODUCTION'Grievance' implies dissatisfaction, or distress, or suffering or grief caused
unnecessarily or illegally. In labour-management relations it is a complaint or
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representation made in writing as regard to a company related matter arising
from employment or service conditions, or from conditions involving unfair
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treatment by the employers, or from violation of any agreement or standing ins-tructions. Grievance is defined as real or imaginary feeling of personal injustice
that an employee has concerning his employment relation.
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Prompt redressal of grievances is a must for creating good labour-management
relations and promoting efficiency at the plant level. Grievances must not be
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allowed to accumulate because grievances breed grievances. Piling up ofgrievances may create a sense of frustration, disloyalty and non-cooperation
among workers who may lose interest in work and thus may affect the quality
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and quantity of out put. This may also lead to indiscipline taking the form of
increased absenteeism, go slow, work to rule, demonstrations, gherao, violence
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and strikes. Proper disposal of grievance needs a serious consideration forharmonious industrial relations and maintenance of industrial peace.
Employees sometimes do not know precisely what is making them dissatisfied.
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Their own feeling may set up mental blocks that prevent them from interpretingcorrectly what is happening. They may not have sufficient knowledge of human
nature or of the many social forces impinging on them. Not knowing their actual
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grievances but still feeling dissatisfied they tends to file grievances about some-
thing else.
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A grievance rate is usually stated in terms of, number of written grievancespresented for 100 employees in one year. A typical grievance rate is 10 to 20
and any rate above or below that range might indicate a labour relations
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situation meriting further investigation. Method of handling grievances will affect
the rate of grievance.
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Employees of all types and at all levels develop grievances. Grievances are notsome headache, brought about by unions but may complicate the situation and
cause more grievances either temporarily or permanently. Other factors affecting
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grievance rate are management job conditions, government`s rules, general
social conditions and the home environment.
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The principal object of any grievance system is to encourage human problems tobe brought to the surface. Management can learn about them and may try
corrective action. The social organization of a plant is very much like a
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complicated machine. Both need constant attention and frequent adjustments.
Grievances, which are expressed, whether they are presented formally or
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informally, are symptoms, which should be carefully studied by management todetermine the real causes of this "human machine" breakdown.
Almost everyone agrees that it is better to prevent fire than trying to stop them
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after that have started and the same philosophy applies to grievances.
Grievance system helps to solve problems before they become serious. If
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problems are allowed to accumulate unsolved, their quantity may get so greatthat they may have adequate pressure "to blow off the lid of the whole section or
department." A good grievance system can prevent the developments of
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unwanted system and keep social pressures within bounds.A grievance system like counselling is a process of employees` emotional release of
their dissatisfaction. It provides a means by which a frustrated and aggrieved
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employee can become aggressive and strike back at the various controls, which any
group imposes, on him. Emotional release often plays an important role in individual
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grievance cases. Grievance procedures help to establish and maintain a work cultureor way of life. Each group has its own particular way of living together, and the
grievance procedure helps to develop this group culture.
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A manager tends to give more care to the human aspects of his job when he
knows that some of these actions are subject to challenge and review in a grievance
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system. He is encouraged to develop effective compromises and workingrelationship with his group. However that the pendulum can swing too far, a
supervisor may become so aware of the grievance system that he is afraid to make
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decisions and hesitates to direct and discipline his men.
Grievances are human problems and are to be handled in a human way. Every
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worker has the right to present his grievances to his employer and obtain theirredressal. The management has to see that grievances are so received and settled
that the worker gets the necessary sense of satisfaction. The following are the
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important steps that should be taken in handling grievances.
1. Define, express and describe the nature of grievance at the heart of the
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employee's complaint as early as possible, so that the wrong complaint maynot be handled and the real grievance may not turn up again to plague the
management.
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2. After locating the real issue, the next step is to gather all relevant facts,
about the issue, i.e. how and where it took place and the circumstances under
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which it transpired. Such fact gathering requires interviewing and listening toemployees. This will, however, convince the employees that the management
was sincere in seeing that justice is done.
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3. After getting the real picture of the grievance the management must make a listof alternate solutions. If possible the suitability of this decision may be checked
before taking and announcing the final decision.
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4. Gather additional information for checking tentative solutions for finding out
the best possible one. For this, or the past experience of the executive in
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similar cases maybe helpful. Company's own record of grievances, ifmaintained can also be helpful in this respect.
5. The decision having finally being reached should then be passed in clear
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unequivocal terms to the employees concerned. The ultimate decision is the tool
of action.
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6. Follow up the case so that it is handled satisfactorily and the trouble
eliminated. It is essential to see the attitude of the Secondly, he should feel that
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the employees are fair in presenting their grievances, unless it is proved
otherwise. Thirdly, in handling grievances, management should display a
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sincere interest in the problems of employees and a constructive willingness tobe of help. All executives must have confidence in themselves and should be
fully aware of their responsibilities and be willing to carry these burdens.
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Such a positive attitude must be apparent to employees in order to gain their
respect and cooperation. The manager should consider the grievance
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seriously and should not show a casual attitude. Grievances should be handledin terms of their total effects upon the organisation and not merely their
immediate or individual effects.
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Organisational Responsibility. Organisational responsibility for handling
grievances should be divided and shared by all levels of management and
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representatives of labour unions. As a good practice or procedure theemployees should be required to present their grievances to their immediate
superior, even if the final decision matter rests with the higher authority. This
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will save the supervisor from losing his importance and respect with hissubordinates. After examining and investigating the matter at his level he can
pass it on to the higher level with his findings and recommendation. Similarly,
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action can be taken by the executives at the middle level, if the matter is
beyond their jurisdiction. The top-level management has the responsibility to
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decide cases which are having company wide implication. In this they may beeven assisted by personnel or labour officers with their advice and the
information collected and maintained. The top-level management must
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establish the broad policies and rules, which may form the basis for handling
grievances.
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In some companies labour unions assume the responsibility of getting the
grievances redressed, particularly at the middle and top-level management.
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2.2 - CAUSES OF EMPLOYEE GRIEVANCES:
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1.Promotions
2.
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Amenities
3.
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Continuity of service4.
Compensation
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5.
Disciplinary action
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6.Fines
7.
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Increments
8.
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Leave9.
Medical benefits
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10.
Nature of job
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11.Payment
12.
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Acting promotion
13.
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Recovery of dues14.
Safety appliances
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15.
Superannuation
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16.Supersession
17.
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Transfer
18.
Victimization
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19.
Condition of work
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The International Labour Organization (ILO) classifies a grievance as a
complaint of one or more workers with respect to wages and allowances,
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conditions of work and interpretations of service stipulations, covering such
areas as overtime, leave, transfer, promotion, seniority, job assignment and
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termination of service. The National Commission of Labour states "complaintsaffecting one or more individual workers in respect of their wage payments,
overtime, leave, transfer, promotion, seniority, work assignment, and discharges
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would constitute grievances. A point to be noted is that where the issue is of a
wider or general nature, or of general applicability, then it will be outside the
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purview of the grievance machinery. Policy issues relating to hours of work,incentives, wages, DA, and bonus are beyond the scope of the grievance
procedure--they fall under the purview of collective bargaining.
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A grievance has a narrower perspective; it is concerned with the interpretation
of a contract or award as applied to an individual or a few employees.
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2.3 - THE MODEL GRIEVANCE PROCEDURE
The model Grievance Procedure settled by the tripartite committee has successive
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time bound steps, each leading to the next in case of dissatisfaction.
1. Under the procedure, an aggrieved employee would first present his grievance
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verbally to a designated officer who would 48 hours.2. In case the worker is dissatisfied with the decision or fails to get an answer within
stipulated time, he would, personally or accompanied by his department
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representative, present his grievance to the head of the department.
3. If he departmental head fails to give a decision within three days or if his decision
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is unsatisfactory, the aggrieved worker can seek relief through the "GrievanceCommittee consisting of management and workers. This committee would
communicate its recommendations to the manager within seven days of the
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grievance reaching it.4. If the recommendation is not made within the stipulated time, reasons there for
would be recorded, and in case unanimous recommendations are not possible, the
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relevant papers would be placed before the manager for decision. The manager is
expected to communicate his decision to the worker within three days,
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5. The worker would have a right to appeal to the higher authorities for revision ofthe manager's decision. All such appeals have to be decided within a week of
the worker`s petition. The worker, if he so desires, could take a union official with
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him for discussion with the appellate authority.
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6. In case of failure to settle the grievance even at the stage, the union andmanagement may refer it to voluntary arbitration within a week of receipt of the
management's final decision.
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2.4 - SUGGESTION :
The National Commission on Labour observed that there should be statutory
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backing for the formulation of an effective grievance procedure whichshould be simple, flexible and less cumbrous, and more or less on the lines of
the pre Grievance Procedure. A grievance procedure, whether formal or
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informal, statutory or voluntary, has to ensure that it gives a sence of,
(i) satisfaction to the individual worker,
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(ii) reasonable exercise of authority to the manager, and(iii) participation of unions.
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The participation of the unions is necessary, because ultimately the unions will
be answerable to members. To make procedure the effective, it is important
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that it should be simple and have a provision for at least one appeal. Besides,the procedure should be time-bound and have a limited number of steps.
Hence, the Commission recommended that a grievance procedure should
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normally provide for three steps.(a) approach to the immediate superior;
(b) appeal to the departmental head/manager; and
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(c) appeal to the bipartite grievance committee representing management
and recognised union.
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The constitution of the committee should have a provision that in case a
unanimous decision is not possible, the unsettled grievance may be referred to
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an arbitrator. At earlier stages a worker should be free to be presented by a co-
worker and an officer of the union.
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Considering the varying size and nature of units, the Commission suggested
that it would not be desirable to be too rigid to have standardised procedure in
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all sizes of units. Hence, the Commission said that some informality in the
approach may be required in case of small units, say units employing less than
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100 workers, because in them it is easier both for the management and workersto have close contacts and personal approach. On the other hand, it would be
more appropriate to introduce a formal procedure in units employing 100 or more
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workers.
2.5 ? SELF ASSESSMENT QUESTIONS
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1. Comment on the Practical utility of Grievance procedure.2. Why are Grievances caused in an organization? How can these be
redressed?
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3. Define Grievance and give its characteristics.
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2.6 ? FURTHER READINGS
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1. ARUN MONAPPA, Industrial Relations, TATA MCGRAW-HILL, NEWDELHI.
2. P.C. TRIPATHI, Personnel Management & Industrial Relations, SULTAN
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CHAND & SONS, NEW DELHI.
3. Dr. B.P. TYAGI, Labour Economics & Social Welfare, JAYA PRAKASH
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NAG & Co. PUBLISHERS, MEERUT.Lesson 3
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COLLECTIVE BARGAINING ? AN OVERVIEW
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Objectives :- The present lesson familiarizes the student with:The concept of Collective Bargaining
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Objects of unions in Collective Bargaining
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Theories of Collective Bargaining
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Forms of Collective Bargaining
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Structure:- 3.1 ? Introduction3.2 ? Objects of unions in Collective Bargaining
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3.3 ? Functions of Collective Bargaining
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3.4 ? Union goals in Collective Bargaining
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3.5 ? Determination of goals3.6 ? Theories of Collective Bargaining
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3.7 ? Constituents of Collective Bargaining
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3.8 ? Prerequisites of Collective Bargaining
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3.9 ? Collective Bargaining Agreements at different levels
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3.10 - Self Assessment Questions3.11 ? Further Readings
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3.1 - Introduction
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In political life democratic countries have established systems of discussionthrough representative assemblies for determining the laws by which they shall
be governed. In international relationships we have gone only some way along
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this road. Mean while in the world of industry and commerce a process has beenevolving the past century for the negotiation between management and
employees of terms and conditions of service and the establishment of peaceful,
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orderly relations at the place of work through mutual settlement of differences
and the cooperation of all those engaged in the enterprise. This process is known
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as Collective Bargaining.The development of collective bargaining has been closely associated with the
growth of trade unions in all countries and sometimes with the growth of
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employers associations also. However, the Webbs did not consider that the
collective bargaining depended on or necessarily had its origin in trade unions.
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If facts they pointed out that it could and take did place in British industrythrough committees set up to settle specific issues, but they added that, "it was
the Trade Union alone which can provide the machinery for any but its most
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casual and limited application. Thus, trade unions could provide machinery for
the settlement of any dispute.
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It generally began with craft unions of skilled workers or organised to protecttheir skill by preventing employers from under cutting jobs rates. The craft
unions discoverd that it was only by strengthening their organisation and forcing
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the issues at district and national level that genuine standards could be achieved,
It was only at the end of nineteenth century that general unions began to
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develop in Britain and to bargain at all levels of employees.A bargain is an agreement, and it takes at least two to make a bargain. But
collective bargaining as opposite of individual bargaining which take place
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between management and a worker, as an individual, apart from his fellow
employees.
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A collective bargain is an agreement made by or on behalf of a group, andcollective bargaining is, therefore, the method by which a group agreement is
reached between the representatives of employers aid the employees. Thus,
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collective bargaining is method of fixing the terms of employment by means ofbargaining between an organised body of employees and an employer or
association of employers, usually acting through duty authorized agents. The
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essential thing is that collective bargaining intends to put t the workers on a
footing of equality with employers at the occasion of a bargain in regard to
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the terms of employment. It should, however, be noted that collectivebargaing is a bargain between interested parties not a decree from outside
parties.
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Beatrice Webb, a famous socialist writer and speaker, is credited with the
coinage of the term "Collective Bargaining. Accordingly, collective bargaining
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takes place when a number of work-people enter into negotiation as bargainingunit with an employer or groups of employers with the object of reaching
agreement on concilitions of employment for the work people concerned.
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Collective bargaining has been defined in the Encyclopaedia of social
Sciences as "a process of discussion and negotiation between two parties,
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one or both of whom is a group of persons acting in concert. The resultingbargaining is an understanding as to the terms or conditions under which a
continuing service is to be performed More specially, collective bargaining is
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the procedure by which an employer or employers and a group of employees
agree upon the conditions of work.
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Collective bargaining has also been defined as he process of employer-unionnegotiation for the purpose of reaching agreement as to the terms and conditions
of employment for a specified period.
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The National Association of Manufactures has stated that in its simplest
definition, the process of collective bargaining is a method by which
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management and labour may explore each others problems and view points, anddevelop a frame work of employment relations within which both may carry on
their mutual benefit.
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In a workers education manual issued by the International Labour Officecollective bargaining is defined as "negotiations about working conditions and
terms of employment between employer, a group of employers or one or more
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employers organisations, on one hand, and one or more representative workers
organisations on the other, with a view to reaching agreement, and it is stated
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that "the terms of an agreement serve as a code defining the rights andobligations of each party in their employment relations one another; it fixes a
large number of detailed conditions of employment ; and during its validity
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none of the matters it deals with care in normal circumstances give grounds for a
dispute concerning on industrial worker.
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Whatever, definition may be accepted, the essence of collective bargaining,however, lies in the readiness of the parties and the attitude of mutual
acceptance. Bargaining includes give and take the offers and counter-offers
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which may precede any agreement. Collective bargaining deals with the
emotions of people as well as with the logic of their interests. Collective
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bargaining, thus, becomes a medium to give expression to pent up emotions.Nature of Collective Bargaining
Collective Bargaining is a continuous process. Even after an agreement is
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reached a number, of aspects remain incomplete, for new situations always crop
up. These situations require negotiations, interpretations and get-together. Local,
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industry-wide and nation-wide labour relations and developments affect theagreement once reached. Since negotiations for a new agreement are under way
collective bargaining, maintains a continuity as a process.
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Collective bargaining is an institutional process of representations. The chief
participants in collective bargaining do not act for themselves. They are
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representatives of their respective institutions. Thus, collective bargaining asan institution unfolds a device for safeguarding interests of employees and
employers and strengthen their organisations. It involves the maintenance of
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labour unions with certain objectives and group interests to act as a bargainingagent. Employers or their groups or association also develop an organisation,
working rules, regulations and a common discipline. Hence, in collective
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bargaining the employer does not deal directly with his workers. He deals
with an institution (may be representatives of the unions) authorised to represent
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the workers purposes of negotiating and administering the terms and conditionsof employment. This representative nature of the organised union-management
relationship applies to administration as well as to negotiation.
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Collective bargaining and state intervention co-exist in the mixed economy of
India, although in theory they are contradictory to each other. Collective
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bargaining has been accorded acceptance not only as an instrument formaximization of production but also as a means for equitable distribution.
Collective bargaining, thus, has been inter-twined with the political oriantations
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of the labour movement that produce conditions necessitating state arbitration.
3.2 - Objects of Unions in Collective Bargaining
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The central focus of union activity is collective bargaining, the process ofarriving at compromises which settle disputes between an employer and an
organisation of his employees. It is called collective bargaining because
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the employees, as a group, select representatives to meet and discuss
differences with the employer.
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The unions objects is Collective Bargaining may be the following:(1) To establish and build up union recognition as an authority the work place.
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(2) To raise workers standards of living and win a better share in company's
profits.
(3) To express in practical terms the workers desire to be treated with due
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respect and to achieve democratic participation in decisions affecting their
working conditions.
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(4) To establish orderly practices for sharing in these decisions and to settledisputes which may arise in the day to day life of the company.
(5) To achieve broad general objectives such as defending and as promoting the
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interests throughout the country.
Thus, the objective of the trade unions is to safeguard the interest of workers
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and to establish industrial peace in dignified manner through collectivebargaining. It is said that, 'industrial peace is something more than the
mere absence of conflict. The absence of strike is not necessarily an
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indication of real industrial peace. More adverse consequences might flow
from steady deterioration of relations in industry than from an
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occasional spectacular stoppage of work. Just as health in human bodywas something more than an absence of diseases, so health in industrial body is
the conscious and laborious creation of man. A really healthy collective
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bargaining would see that benefits derived from industry were equitably
distributed among all the parties involved--the employers, the unions, the
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management, the customers, the suppliers, the public. Thus, Haribison writes,"collective bargaining is a process of accommodation between two institutions
which have both common and conflicting intertsts. Its aim is not to seek
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industrial peace at any price. Constructive bargaining should seek to promote the
attainment of the commonly held goals of a free society."
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Distinction between Collective Bargaining and Joint Consultation or
Cooperation through Joint Committees :
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In collective bargaining the object is to reach agreement on wages and other
conditions of employment about which the parties begin with divergent view
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points but try to reach a compromise. When the bargain is reached the terms of
the agreement are put into effect.
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The main task of joint committees such as works councils is the exchange ofinformation and suggestions on matters of common interest such as health,
safety, welfare and productive efficiency, and the outcome of discussions may
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take the form of recommendations but the final decision is left to the
management.
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Even if there is resemblance between such recommendations and parts of acollective agreement; in works councils the emphasis mainly on cooperation
based on common interests, whereas in collective bargaining it is on
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reconciliation of divergent interests or demands.
The success of collective bargaining, according to Carpenter, depends on the
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extent to which both sides understand the essential nature of the bargainingprocess. Negotiation, he says, should be an appeal to reason, a process by which
the problems of both sides are thoroughly explored, and both the management
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and the union should enter into negotiation with the expectation that their ideas
may be changed in the process.
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In a single sentence, negotiations are a process by which men`s mind andopinions are changed and should be approached by both sides with an
understanding that it is likely to produce these results.
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Collective bargaining starts with claims advanced by both sides--demands
from the union and statement by management on how far they can conced
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these demands and what they want in return --just as in the bazar vendorand buyer start by quting prices which are at variance, each knowing that he
will have to make some accommodation in the end in order to reach a final
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agreed price. Frankly recognising this, the Canadian Labour Degress has
declared: "Bargaining would not be bargaining if each side did not start off
by asking more than it really excepts to get; bargaining in itself presupposes
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some amount of gives and take."
3.3 - FUNCTIONS OF COLLECTIVE BARGAINING
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Collective bargaining is a technique of social change, some-times performingits function smoothly and at other times threatening to blow up. The
performance of its function can be viewed under the following three headings.
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(1) Collective bargaining acts as a technique of long-run social change,
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bringing rearrangements in power hierarchy of competing groups.(2)
Collective bargaining serves as peace treaty between two parties in
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continual conflict.
(3)
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Collective bargaining establishes a system of industrial jurisprudence,defining the rights and duties of the conflicting parties
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Long Term Social Change :
Collective bargaining, in its broader aspects, is not confined solely to
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economic relations between employers and employees. Selig Perlman hasdefined it as a "technique whereby an inferior social class or group carries on a
never slacking pressure for a bigger share in social sovereignty as well as for
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more welfare, security, and liberty for its individual member.
Collective bargaining manifests itself equally in politics, legislation, court
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litigation, government administration, religion education and propaganda.When viewed as a process of social change, collective bargaining
encompasses more than the direct clash between employers and unions. It
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refers to the rise in political and social power achieved by workers and their
organisation.
Thus collective bargaining is not an abstract class struggle in a Marxian
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sense, but it is rather pragmatic and concrete. The inferior class does not
attempt to abolish the old ruling class, but merely to become equal
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with it. It aims to acquire a large measure of economic and politicalcontrol over crucial decisions in the area of its most immediate interest
and to be recognised in other areas of decision making.
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Collective bargaining has no final form. It adapt- itself to the changing
social, legal and economic environment. It has varied considerably from
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plant to plant and industry to industry, and also between and within unions.For example, a number of industrial unions have successfully bargained for
higher bonus and Provident Fund benefit, why many unions in the
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construction industry have ignored these goals. Bargaining in some plants is
characterised by comparatively frequent strikes, whereas in other
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plants there are long records of uninterrupted industrial peace.Wage corners have enhanced their social and economic position in absolute
terms and in relation to other groups and at same time, management has
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retained a large measure of power and dignity. These gains were not
registered in one great revolutionary change, but rather step by step, with
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each clash between the apposing parties settled with a new compromisesomewhat different from the previous settlement. In short, collective bargaining
accomplishes long-run stability on the basis of day-to-day -adjustments in
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relation between labour and management.
2. Temporary Truce :
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Collective bargaining may be viewed as a struggle between two opposing forceswith the outcome depending on their relative strength. The inherent strength of
each side is its ability to withstand a strike. This is partly an economic matter :
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To what extent can the union provide financial aid to the strikers ? Can the
workers find temporary jobs ? How much will the employers sales be reduced.
? Will his position in the product market be permanently impaired ? These
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are the economic factors on which the ability to withstand a strike depends.
The ability to withstand a strike also depends on such non-economic factors as
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the loyalty of the workers to the union, their willingness to make personnelscarifice to support its goals. The degree of loyalty, of course, is affected by
the presence of factionalism within the union. For either the employer or
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the union, a belief that some basic principle is at stake, e.g. management right
or union security, stiffens the will power of the antagonists.
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The compromise, then, is a temporary truce with neither side beingcompletely satisfied with the results. Each would like to modify it at the
earliest opportunity. Since the contract is always of limited duration, each
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begins immediately to prepare a new list of demands, including previously
unsatisfied demands, and to build up its bargaining strength in anticipation of
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the next power skirmish.3. Industrial Jurisprudence :
Collective bargaining creates a system of industrial jurisprudence. It is a
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method of introducing civil rights into industry, that is of requiring that
management be conducted by rule rather than by arbitrary decisions. It
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establishes rules which define and restrict the traditional authority exercised byemployers over their employees, placing part of the authority under joint control
by union and management. Finally collective bargaining must never stagnate if
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it is to serve its role of adapting labour and management institutions, and their
relative power positions, to the changing socio-economic environment
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3.4 - UNION GOALS IN COLLECTIVE BARGAININGIn approaching collective bargaining, a union has series of goals, some
economic and some non-economic, not all of which can be won from the
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employer at one time. Further more, a number of the goals are in conflict with
each other. Therefore, union decides to give priority to these goals, and for
giving priority union may classify the goals. There are many ways of
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classifying the goals union seek to achieve through collective bargaining.
The two categories used here are economic and non- economic, they may also
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be classified according to the members as individuals opposed to the unions asan institution, according to leader versus rank and file, or according to intra-
union interest groups, such as the young against the old or one group of skill
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against another.
It follows, then, that the priority ranking of the demands by the union
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represents a compromise between the different pressures within the union.The compromise must, of course take into account the prevailing economic
environment.
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1. Economic Goals
The unions major economic goal is to increase wages constantly. In
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general terms, this means "more and more " or as much as we can get." Thiscould mean the maximum wage rate or the maximum wage bill, or some
variation of two. Generally, unions place greater emphasis on the wage rate
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than the total amount paid out in wages by an employer, because after a wage
increase, multiplant firm might close down its less efficient plants, and
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marginal firms might be forced out of business. This may cause unemployment.Therefore, the best technique to enhance the economic position of the members
is through raising the wage rate. However, there are some exception to this,
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particularly in construction and clothing industries. For example, a wage
increases of house painters may have a significant effect on the do it yourself
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trend; or a wage in unionised clothing firm may shift employment tounorganised firms.
The fact that unions generally emphasise the wage rate rather than employment
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does not mean that union neglect the latter. However, the approach to this
goal is usually not through wage rate adjustments, but rather through regulation
of hours, seniority, and working rules. Thus, whenever unemployment
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increases significantly as a result of increase in wage rates, unions will
propagandize and bargain for shorter work weeks rather than decreased wages.
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Unions also attempt to enhance the employment of their members by devisingand enforcing work rules. In many cases they try to place restrictions on
production, limiting the type of machinery used and the speed at which the
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machinery is to be operated. In some instances the work rules are designed to
protect the life and limb of the employees or to avoid "speed ups" and
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unhealthful working for the workers. In some instances what wasoriginally necessary for the workers safety may, after a change in the
methods of production become outdated. Never-the less, the union may still
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insist on the working rule in order to provide more jobs for the members.
In deciding which economic goals to pursue most vigorously, unions must
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choose, then, between wages, hours, and working rules. More, fringe benefitsshould be included, since they add to the employer`s labour cost.
2. Non-economic Goals
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The social and psychological need center around the workers desire to express
his individuality and at the time to be an accepted members of his social
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group. Workers, if they are to feel they have some distinct personal worth,must be able to complain to their employers without fear of reprisal. They
want to be more than a lump of economic assets in a depersonalized enterprise.
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The workers feeling of security, of protection against arbitrary or spiteful action
by his supervisor, are of un-measurable value to him. For this reason union is
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worth while to many workers regardless of whether it is able to bring themhigher wages than they otherwise would have received. It satisfies the need of
feeling secure in their jobs and in their status as individual.
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The union also provide an opportunity for the worker to become active in social
organisation in association with his fellow workers as equals.
The second variety of non-economic goals sought through collective
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bargaining is aimed at protection of the union as an institution-. When an
employer threatens to break a union or when a rival union attempts to raid its
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membership, the fight to protect itself becomes more urgent to a union thansecuring immediate wage increase.
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3.5 - Determination of Goals
Unions have a wide range of economic and non-economic goals. All goals of
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them can not be won in one instance. All goals are in conflict with each othersince employers are willing to make only limited number of concessions at any
particular bargaining session. Therefore, unions have to determine
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priorities, are five factors which affect the priority of collective bargaining
goals.
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(i) Economic conditions relevant to the bargaining relationship(ii) Precedent of recent major agreements,
(iii) Inter-union rivalry,
(iv) Influence of international situation,
(v) Intra-union influence.
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The relative importance of these factors varies from one bargaining situation
to another.
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1. Economic Conditions
The cost of living is used by unions as an argument for higher wages during
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periods of rising prices. Although unions generally give more attention to moneywages than real wages, a decline in real wages, resulting from cost of living, is
always used as a potent argument for a wage increase, partly because it wins
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public support. But unions do not use this argument when prices are falling.
The cost of living and the condition of firm in terms of ability to pay is used
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as a basis of setting terms of contract. Finally, since nothing succeeds likesuccess, when a union feels that employer is vulnerable to a strike, e.g., if he
is behind in filling his customers orders, it may decide that it is the appropriate
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time to win maximum concession.2. Precedent of Recent Major Agreements
A major agreement made in an industry does not guarantee that other unions
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will receive the same concessions; there will be variations around the
precedent. Nevertheless, employers resistance to similar demands is
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lessoned. Once an important employer makes a given concession, otheremployers are in less advantageous position to object it for public relations
reasons. The employer may feel compelled to grant the demand in order to
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maintain the morale of his workers who are aware of the concessions
granted by other employers. This will bold true even in firms which are
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not unionised. Furthermore, unionized employees would be more willing towithstand a long strike after other employers have granted what their employer
refuses.
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The effect of recent major agreements cuts both ways. That is, it may cause
some unions to accept less than the; might have been able to receive had no
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such precedent existed. The unions would have less public sympathy instriking for amounts greater than other unions have accepted.
3. Inter-union Rivalry
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The ability of a union leader to gain concessions at least equal to those won
by other unions affect his status with his constituency, which of course is an
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important reason why major agreements affect settlements in other industries.However, inter-union rivalry has implications beyond merely following
precedents. It may involve a struggle for power between leaders of two
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different unions, or perhaps leaders of two different factions of the same
union. An ambitious local leader or regional director who wants to rise in the
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union hierarchy seeks to make greater gains than his rivals. To theextent that he influences the bargaining demands of his local or region,
he gives priority to those demands which will enhance his position. In this
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way inter-union rivalry affect the determination of priority in collectivebargaining goals.
4. Influence of International Situation
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The increase in the international's control over bargain influences the
choice between various union goals, tending to give greater emphasis to
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nation wide goals as opposed to strictly local goals. The internationalofficers and representatives are generally shrewder and more mature
bargainers; they are professionals. They have a better understanding of the
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employer`s ability to pay, of the impact of any bargaining demand on the entire
industry. In some cases this will cause them to bargain for larger amounts,
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while in other cases they may seek less than the local desire, depending onthe economic conditions affecting the industry at that time. When the
international exercises a large amount of control in the bargaining, less emphasis
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is generally placed on such purely local issues as speed up of the production
line, discharge of a single employee or setting the wage rate for a new job. It
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is not that the international is uninterested in these matters, but rather it seesthem as matters of local importance and should be dealt with the local unions.
5. Intra-union Influences
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Intra-union influences also affect the priority of collective bargaining goals.
Within the union there are many actual and potential areas of conflict between
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different interest groups. Different skill groups within the union are liable todisagree over pay-differentials; they may take different views, of
technological changes within the plant, since each group is likely to be affected
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differently by such changes. A conflict may develop between the more
productive and the less productive workers, the former favouring an incentive
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pay plan which would increase their earnings, the latter favouring, straighttime payment. Conflict between the shift and night shift over the amount
of the differential are not uncommon; since the employer will grant only a
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limited total amount of monetary concessions, a larger night differential maymean a lower average wage for the day shift. The older workers would favour
pension plans, whereas younger workers have little interest in these.
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Union leaders are not free to consider the problem of wages purely as an
exercise of economics. They are leaders of mass movement, subject to variety of
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pressures and cross pressures, who meet the needs of their membership or therisk of replacement at the next election. If wage pressures are mounting, then an
increase must be sought, even though they are more fearful than the membership
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that a lower volume of employment might result. The less skilled workers in an
industrial union may keep the gains equal to all because of their numbers and
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voting strength.Since most union members are apathetic, the active minority may have little or
no difficulty in securing the priority of goals it desires. However, the apathetic
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members may rise up and unseat the leadership or revolt and form a new union
if they feel cheated out of their fair share of collective bargaining rewards. The
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leader must be an actual politician in satisfying all competiting groups.3.6 - THEORIES OF COLLECTIVE BARGAINING
There are three important concepts on collective bargaining which have been
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discussed as follows--
l. The marketing concept and the agreement as a contract The marketing
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concept views collective bargaining as a contract for the sale of labour It is amarket or exchange relationship and is justified on the ground that it gives
assurrance of voice on the part of the organised workers in the matter of sale.
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The same objective rules which apply to the construction of all commercial
contracts, are invoked since the union-management relationship is concerned as
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a commercial one.According to this theory, employees sell their individual labour only on terms
collectively determined on the basis of contract which has been made through
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the process of collective bargaining. Thus, collective bargaining remains ameans for employees to sell their manpower through a common agent.
The uncertainty of trade cycles, the spirit of mass production and competition
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for jobs make bargain a necessity. The trade union's collective action
provided strength to the individual labourer. It enabled him to resist the
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pressure of circumstances in which he was placed and to face an unbalancedand disadvantageous situation created by the employer. The object of trade
union policy through all the maze of conflicting and obscure regulations has
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been to give to each individual worker something of the indispensability of
labour as a whole. This is also called the union approach to collective
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bargaining.It can not be said whether the workers attained a bargaining equality with
employers. But, collective bargaining had given a new relationship under
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which it is difficult for the employer to dispense without facing the relatively
bigger collective strength.
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2 The Governmental Concept and the Agreement as LawThe Governmental Concept views collective bargaining as a constitutional
system in industry. It is a political relationship. The union shares
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sovereignty with management over the workers and, as their representative,
uses that power in their interests. The application of the agreement is
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governed by a weighing of the relation of the provisions of the agreement tothe needs and ethics of the particular case.
Thus, the Governmental concept/theory establishes a political relationship
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admitting the contractual nature of the bargaining relationship. The contract is
viewed as a constitution, written by the point conference of union and
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management representatives in the form of a compromise or trade agreement.The agreement lays down the machinery for making executing and
interpreting the laws for the industry. The right of initiative is
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circumscribed within a framework of legislation. Whenever, managementfails to conform with the agreement of constitutional requirements, a
judicial machinery is provided by the grievance procedure and arbitration.
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This creates a joint Industrial Government where the unions share sovereignty
with management over the workers and defend their group affairs and joint
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autonomy from external interference.3. The Industrial Relations (managerial) Concept at Jointly decided
directives :
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The industrial relations concept views collective bargaining a system of
industrial governance. It is a functional relationship. Group Government
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substitutes the State Government. The union representatives get a hand inthe managerial role. Discussions take place in good faith and agreements are
arrived at. joins with company officials in reaching decisions on matters in
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which both have vital interests. Thus, union representatives and the
management meet each other to arrive at a mutual agreement which they can not
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do alone. When the terms of agreement fail to provide the expected guidance tothe parties, it is the joint objective and, not the terms, which must control.
Hence, this theory recognises the principle of mutuality, joint concern and the
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extension to workers of the corporate responsibilities.
To some extent, these approaches represent stages of development of the
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bargaining process itself. Early negotiations were a matter of simplecontracting for the terms of sale of labour. Developments of the latter period led
to the emergence of the Government theory. The industrial relations approach
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can be traced to the industrial Disputes Act of 1947 in our country, which
established a legal basis for union participation in the management.
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3.7 - CONSTITUENTS OF COLLECTIVE BARGAININGThere are three distinct steps in the process of collective bargaining ; (1) the
creation of the trade agreement, (2) the interpretation of the agreement, and (3)
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the enforcement of the agreement. Each of these steps has its particular characterand him, and therefore, each requires a special kind of intellectual and moral
activity and machinery.
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1. The Creation of the Trade Agreement:
In negotiating the contract, a union and management present their demands to
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each other, compromise their differences, and agree on the conditions underwhich the workers are to be employed for the duration of the contract. The
coverage of collective bargaining is very uneven; in some industries almost all
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the workers are under agreement, while in others only a small portion of the
employees of the firms are covered by the agreement.
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The negotiating process is the part of collective bargaining more likely to makeheadline news and attract public attention; wage increases are announced,
ominous predictions about price increases are reduction in employment are
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made. And it is in the negotiating process that strikes and threats of strikes are
most liable to occur, particular strikes which shut down an entire industry.
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2. The Interpretation of the Agreement :The administrative process is the day-to-day application of the provisions of the
contract to the work situation. At the time of writing the contract, it is imposible
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to foresee all the special problems which will arise in applying its provisions.
Sometimes, it is a matter of differing interpretations of specific clause in the
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contract, sometimes, it is a question of whether the dispute is even covered bythe contract. Nevertheless, each case must somehow be settled. The spirit of
the contract should not be violated. The methods that management and the
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union pointly adopt for this purpose constitute the administrative process.
3. Enforcement of the Agreement :
Proper and timely enforcement of the contract is very essential for the success
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of collective bargaining. If a contract is enforced in such way that it reduces or
nullifies the benefits expected by the parties, it will defeat basic purpose of
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collective bargaining. It may give rise to fresh industrial disputes. Hence, inthe enforcement of the contract the spirit of the contract should not be violated.
However, new contracts may be written to meet the problems involved in the
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previous contract. Furthermore, as day-to-day problems are solved, they set
precedents for handling similar problems in future. Such precedents are almost
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as important as the contract in controlling the working conditions. In short,collective bargaining is not an on-and-off relationship that is kept in cold
storage except when new contracts are drafted. Rather it is continuously, going
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relationship that takes on new dimensions each day.
3.8 - PREREQUISITES OF COLLECTIVE BARGAINING
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Collective bargaining could be an effective instrument in the settlement ofdisputes and advancement of the cause of labour if certain basic conditions are
fulfilled. These basic conditions have been given as follows:
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1.
Existence of a truly representative, enlightened and strong union
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functioning strictly on constitutional trade union lines.2.
Existence of a progressive and strong management, conscious of its
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responsibilities to the owners of business, the employees, the consumers and
the country.
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3.Unanimity on the basic objectives and recognition of of mutual rights
and obligations.
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4.
Delegation of authority to local management, where there are several units
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of a company.5.
Acceptance of a fact finding approach and willingness to use new
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techniques and tools for the solution of industrial problems.
It is, thus, obvious that collective bargaining can be an effective technique of
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settling industrial disputes where there is a spirit of give and take between the
employers and the workers. It depends upon the moral fibre of the labour leaders
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as well as the employer.Face to face meeting between the representatives of workers and employers can
serve a useful purpose only when the traditional prejudices are kept aside by
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both the parties. Hence, there should be a complete and true understanding and
appreciation of each other`s viewpoint.
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Through collective bargaining, the negotiating parties should not only try tobargain for gains but also try to find out ways and means for solving problems in
a satisfactory manner. The approach at the bargaining table should not be a
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fighting but a problem solving approach.
FORMS OF COLLECTIVE BARGAINING
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The working of collective bargaining assumes various forms. In the first place,bargaining may be between the single employer and the single union, this is
known as single plant bargaining. This form prevails in the United States as well
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as in India.
Secondly, the bargaining may be between a single firm having several plants and
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workers employed in all those plants. This form is called multiple plantbargaining where workers bargain with the common employer through different
unions.
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Thirdly, instead of a separate union bargaining with separate employer, all the
unions belonging to the same industry bargain through their federation of that
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with the employer's federation of that industry. This is known as multipleemployer bargaining which is possible both at the local and regional levels.
Instances in India of this industry wide bargaining are found in the textile
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industry. The All India Bank Employees Federation also bargained with the
management of different banks in India on a multiemployer basis in 1955 and in
1957.
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The common malady of union rivalry, small firms and existence of several
political parties has given rise to a small unit of collective bargaining. It has
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produced higher labour cost, lack of appreciation, absence of sympathy andeconomic inefficiency in the realm of industrial relationships. An industry-wide
bargaining can be favourable to the economic and social interests of both the
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employers and employees.
3.9 - COLLECTIVE BARGAINING AGREEMENTS AT DIFFERENT
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LEVELSCol ective bargaining agreements have been concluded at various levels in India--at
plant level, industry level and national level.
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At Plant Level
A collective agreement at plant level is reached only for the plant for which it has
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been drafted, and its scope and extent are limited only to that particular unit orundertaking. The agreement generally provides for certain common norms of conduct
with a view to regulating labour management-relations and eliminating hatred and
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misunderstanding. It contains provisions for a quick and easy solution of those issues
which require immediate and direct negotiation between the two parties, and lays down a
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framework for their future conduct if and when controversial issues arise.Since 1955, a number of plant level agreements have been reached. These include:
The Bata Shoe Company Agreement, 1955,1958 and 1962; the Tata Iron & Steel Co.
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Agreement, 1956 and 1959; the Modi Spinning and Weaving Mills Company's
Agreement of 1956; the National Newsprint Nepanagar Agreement of 1956; the Belur
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Agreement of 1956 (between the Aluminium Co. and its employees); The MetalCorporation of India Agreement of 1960 and 1961; the agreement reached between
Caltex India and its workmen in 1959, and the one arrived at between the Hind
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Mercantile Corporation and the workers of the manganese mines at ChikangyakamHaiti, in 1968; the Bhilai Steel Plant and its workers.
The highlights of the agreement between the Tata Iron & Steel Co. and its workers'
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union, which was concluded in 1956 " to establish and maintain orderly and cordial
relations between the company and the union so as to promote the interests of the
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employees and the efficient operation of the company's business", are:(i)
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The company recognises the Tata Workers' Union as the sole bargaining agent
of the employees at Jamshedpur. It agrees to the establishment of a union
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membership security system and the collection of union subscriptions whichwould be deducted at the source from the wages of al employees, except from the
salaries and wages of the supervisory staff.
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(i )
The union recognises the right of the company to introduce new and/ or improved
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equipment and methods of manufacture, to decide upon the number and locationsof plants, and the nature of machinery and/ or equipment required for them,
subject to the condition that the union would be consulted beforehand if the
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interests of the employees are likely to be affected adversely.
(iii) The union recognises the right of the company to hire transfer promote or
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discipline employees after the normal procedure for this' purpose has been gonethrough; to fix the number of men required for the normal operation of a section or
a department; and to abolish change or consolidate jobs, sections, departments,
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provided that' when the employees' interests are likely to be adversely affected the
management shall consult the trade union before any decision is taken.
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(iv) The company assures the union that there shall be no retrenchment of existingemployees. The employees required for the various jobs shall, wherever necessary,
be trained on the specific jobs; and if any employees are transferred or put under
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training, their present average earnings shall be guaranteed to them.
(v)
The company and the union agree to a programme of job evaluation as the basis
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of a simplified and rational wage structure.
(vi) The company agrees that promotions to vacancies in the supervisory and non-
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supervisory staff shall be made, wherever possible, internally. It further agreesthat the grievance redressal procedure, formulated in consultation with the union,
shall be introduced in all the departments, and shal be strictly fol owed. The top
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management of the company and of the union shal intervene only in exceptional
cases.
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(vii) The company agrees that the amount of dearness allowance will be included inthe wages of employees at the time of the calculation of gratuity to be paid to
them.
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(viii) The company and union agree to negotiate revised wages and emoluments
separately for the workers in the plant, for the supervisory staff and for
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employees outside the works.At the Industry Level
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The best example of an industry level agreement is offered by the textile industry of
Bombay and Ahmedabad.
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The agreements between the Ahmedabad Millowners' Association and the AhmedabadTextile Labour Association, which were signed on 27th June, 1955, laid down the
procedure to be followed for the grant of bonus and the voluntary settlement of
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industrial disputes. The salient features of the first agreement are:
The agreement applied to all the member mills of the Association and contained terms
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for the determination and set dement of bonus claims for four years--from 1953 to1957. It was agreed between the parties that the bonus would be payable only out of an
"available surplus or profit" after all the charges had been provided for--charges for
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statutory depreciation and development rebate, taxes, reserves for rehabilitation,
replacement and/or modernisation of plant and machinery, including a fair return on
paid-up capital. The fair return would be computed at 6 per cent on the paid-up capital
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in cash or otherwise, including bonus shares and reserves employed as working capital.
The bonus would be paid to employees out of the available surplus or profit at a rate
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which would be not less than 4.8 per cent and not more than 25 per cent of the basicwages earned during a particular year.
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The two Associations agreed that they would jointly determine the quantum of the
available surplus or profit, and fix the quantum of bonus to be distributed by each mil . If
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mere was any difference of opinion between the two Associations, the matter would bereferred for decision to the President of the Labour Appellate Tribunal or, if he was not
available, to an umpire to be mutually agreed upon under the second agreement or, in
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his absence, to a person acceptable to both the parties; and that decision would be final
and binding on both.
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The second agreement provided that all future industrial disputes between themembers of the two Associations would be settled by mutual negotiation, failing which
by arbitration, and that they would not resort to any court proceedings for the purpose of
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resolving their disputes. If arbitration was agreed upon, each party would constitute a
panel of arbitrators and also jointly nominate a panel of umpires consisting of not less
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than two and not more than five independent persons. Whenever there was an industrialdispute which had not been settled by mutual negotiation each party would nominate its
own arbitrator from a Board of Arbitrators. This Board would select an umpire out of the
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panel or from among outsiders so that, in the event of a difference of opinion between
the two arbitrators, their individual decisions might be referred to him for evaluation.
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The award given by the umpire would then be final and binding on both the parties.The agreements at the national level are generally bipartite agreements and are
finalised at conferences of labour and managements convened by the Government of
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India. The Delhi Agreement of 7th February 1951, and the Bonus Agreements for
Plantations Workers of January 1956 are example of such bipartite agreements.
The Delhi Agreement was concluded at a conference of the representatives of labour
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and managements and related to rationalisation and allied matters. It was agreed at
this conference that:
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(i)Musters would be standardised and workloads fixed on the basis of the
technical investigations carried out by experts selected by the management and
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labour. At the same time, the working conditions of labour would be
standardised. When a new machinery is set up, a period of trial may be
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necessary before standardisation is effected.(ii) Wherever rationalisation is contemplated, fresh recruitment should be stopped;
and vacancies which occur as a result of death or retirement should not be
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filled.
(i i) Surplus workers should be offered employment in other departments whenever it
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is possible to do so. At the same time, it should be ensured that there is no breakin their service and that their emoluments do not go down.
(iv) Whenever conditions in an industry permit--that is, conditions governed by the
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raw materials position, the state of the capital goods and the products
manufactured by a company--new machinery should be installed.
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(v)Gratuities should be offered to workers to induce them to retire voluntarily.
(vi) Whenever there is need for retrenchment, the services of those who were
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employed last should be terminated first.
(vii) Workers who are thrown out of employment as a result of rationalisation should
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be offered facilities for re-training in alternative occupations. The period ofsuch re-training may be extended up to nine months. A scheme for this purpose
should be jointly worked out by the government, the employers and the workers.
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(viii) The maintenance of the workers during the period of their retraining would
be the responsibility of the employers, while the cost of this re-training would be
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borne by the government.(ix) The fullest use should be made of surplus labour in the various projects
undertaken by the government.
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(x)Incentives in the form of higher wages and a better standard of living should be
offered to show the gains which have accrued as a result of rationalisation.
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Where such gains have largely been the result of additional efforts made by the
workers, the latter should have a share in them, particularly when their wages are
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below the living wage. The capital investment of the management should,however, be taken into account while determining the workers' share in the gains
of rationalisation. In this way, workers would be persuaded to accept the need for
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rationalisation.
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The bonus agreement for plantations workers was concluded in January 1956 betweenthe representatives of the Indian Tea Association and the India Tea Planters'
Association on the one hand and the Hind Mazdoor Sabha and the Indian National
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Trade Union Congress (INTUC) on the other. The agreement was about the payment
of bonus to about one million plantation workers.
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3.10 - SELF ASSESSMENT QUESTIONS
1.
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Discuss the nature, structure and role of Collective Bargaining.
2.
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Describe the requirements of an effective Collective Bargaining.3.
What are the important contents of a Collective Bargaining Agreement.
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4.
Examine the role and limitations of Collective Bargaining in India.
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3.11 ? FURTHER READINGS
1.
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S.C.SRIVASTVA, Industrial Relations and Labour Laws, VIKAS
PUBLISHING HOUSE, NEW DELHI.
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2.D.C.SHARMA & R.C. SHARMA, Personnel Management & Industrial
Relations, S. J. PUBLICATIONS, MEERUT.
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3.P.C.TRIPATHI, Personnel Management & Industrial Relations, SULTAN
CHAND & SONS, NEWDELHI.
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-------- END -------
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Lesson 4
COLLECTIVE BARGAINING IN INDIA
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Objectives :- The present lesson familiarizes the student with:
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The concept of Collective Bargaining in IndiaWhy Collective Bargaining has not flourished in India
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The future of Collective Bargaining
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Structure:- 4.1 ? Introduction
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4.2 ? Why Collective Bargaining has not flourished in India
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4.3 ? Recommendations of 1st National Commission4.4 ? Collective Bargaining in public sector undertakings
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4.5 ? The future of Collective Bargaining
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4.6 ? Self Assessment Questions
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4.7 ? Further Readings
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4.1 - INTRODUCTIONCollective bargaining in India has passed through several important phases
during the last few decades. It was during the 1960s that it began to show up in
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some pockets across the country due to two reasons. One reason was that during
this period large industries with well-developed employers` associations and
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trade union centers had come up in many big cities which facilitated collectivebargaining. Examples were the cotton textile industry in Mumbai, Ahmedabad,
Coimbatore, Kanpur and Indore, the jute industry in Kolkata, the coir industry in
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Kerala and the plantations in southern and eastern India. The other reason wasthe encouragement for bilateralism which came from the public sector
comprising the banking, coal, steel and ports and docks.
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Collective bargaining took a back seat- as did industrial conflict ? with the
declaration of emergency in 1976. With civil liberties suspended and the
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government bestowing extraordinary powers upon itself, the environmentbecame least congenial for collective bargaining. But as soon as the emergency
was lifted in 1977 a new chapter in collective bargaining been with unions
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making unprecedental demands on employers. It was Boulwarism in the reverse.
The labour`s power was at its peak like never before. It was asking for all sorts
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of allowances from the employers or face a strike.The above phase continued till the late 1980s when union power began to
plateau. The pendulum had taken its swing from one end to other. Now it was
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the employer`s turn to gain upper hand. Initially employers` demands were for
increase production- they were asking for greater volumes rather than increased
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efficiency or productivity. But they soon began to bargain for increasedproductivity through lockouts. Notable lockouts were at Bata and Wimco in
West Bengal and at Hindustan Lever in Mumbai. The four-month lockout at
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Bata compelled workers to accept sweeping changes in work methods and
labour deployment. The sixteen-month lockout at Wimco forced workers to
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accept new production norms and the year-long lockout at Lever authorizedmanagement to modernize the plant and prune the work force as it wanted.
At present, there is a sea change in the environment. Unions which have been
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accustomed to making demands are now at the receiving end, with employers
asking them to roll back wages and reduce benefits. Concession bargaining or
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the practice of employers asking labour to make concessions, has becomecommonplace. Managements have also been attracted by Japanese work
practices which focus on multiskilling, flexible deployment, and greater worker
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involvement in improving productivity. The centrality of the two institutions-trade unions and collective bargaining which all prior theories have upheld- is
suddenly in doubt. The strategic management approach to industrial relations is
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now demanding productivity and performance from the system.
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4.2 - WHY HAS COLLECTIVE BARGAINING (BIPARTITISM) NOTFLOURISHED IN INDIA?
Collective bargaining is the ultimate in negotiations and is possible only when
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workers` and employers` organizations are equally strong, mature and conscious
of their rights and duties. That is why in no country expect Israel does one find
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unadulterated bipartitism. Even in the U.S.A. it is not practiced in its pure form.State steps in in certain situations. In India both biparttism and tripartitism have
co-existed but they generally operate at different levels. At the unit level it is
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generally the bipartitism that has flourished whereas at the industry and national
levels it is the tripartitism that has prevailed. Some reasons for bipartitism not
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flourishing at the national level are that:labour is a concurrent subject;
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there are varying conditions of work and life in different parts of thecountry;
there is absence of strong central unions and employers` organizations who
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can represent country-wide interests; and
there are a number of problems(e.g., layoffs and closures) which need to be
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looked at from the point of view of larger objectives of government policy.Hence in tackling such problems government`s participation at the national
level becomes unavoidable.
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Even at the plant-level bipartitism has not made much headway in our country
due to the following reasons:
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(a) Excessive Dependence on Compulsory Adjudication for the Settlement
of Industrial Disputes. There is not a single piece of legislation at the national
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level which requires an employer to bargain or prescribes the method ofindentifying a bargaining agent. There is no law requiring voluntary agreements
to be registered or giving any guarantee that a rival union will not raise a dispute
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on the very subjects already covered by a voluntary agreement. On the other
hand, what the Industrial Disputes Act provides is a system of conciliation and
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compulsory adjudication which, therefore, have reamianed the main stay for alarge number of industrial organizations and trade unions in our country.
(b) Reduction in the Area of Collective Bargaining. The area of collective
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bargaining has gradually receded in recent years due to the emergence of several
new institutions and modes such as wage boards, statutory fixation of minimum
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wages and payment of bonus, regulations of fines and deductions, workinghours, overtime payment, holidays, leave and other working and employment
conditions including welfare and social security measures.
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(c) Weak Trade Union Movement. Trade union movement still covers only a
small portion of the total industrial employment. Besides, the unions are too
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weak to bargain collectively on account of their small membership, poorfinancial resources, their multiplicity, inter-union and intra-union rivalry,
politicization, poor leadership and absence of suitable legislative provisions for
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recognizing them as bargaining agents. In no unit, far less in an industry, do we
have a union which is recognized and is recognizable as a representative union
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with which an employer can negotiate a settlement in the hope that it would beacceptable to all and endure for stipulated period. And so far we have not
evolved a fool-proof system to determine the majority union.
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(d) Little Government Support. The government has shown little interest incollective bargaining because
it does not have confidence in the bargaining strength of our trade unions,
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it has fear of strikes and lockouts,
it has fear of the communists gaining in strength, and
it has apprehension of the planned economy being disrupted by inflation, etc.
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In a planned economy the overall industrial relations pattern is sought to be
developed taking into account the overall objectives of the nation and
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government`s fiscal, monetary and industrial policies. Hence industrial bilateral
negotiations without the State`s involvement are not possible.
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4.3
-
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RECOMMENDATIONS
OF
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THEFIRST
NATIONAL
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COMMISSION ON LABOUR TO MAKE COLLECTIVE BARGAINING
MORE EFFECTIVE IN INDIA
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1.
Compulsory adjudication of disputes should be used only as a last resort.
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2.
Trade unions should be strengthened both organizationally and financially
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by amending the Trade Unions Act to make registration of unionscompulsory, enhance the union membership fee, reduce percentage of
outsiders in the union executive and among the office bearers, and
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increase the minimum number of members of union applying for
registration of union.
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3.Legal provision may be made either by a separate legislation or by
amending an existing enactment for
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compulsory recognition of trade unions and certification of unions as
bargaining agents,
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prohibition and penalization of unfair labour practices,bargaining in good faith by both employers and unions, and
conferring legal validity and legitimacy on collective agreements.
4.
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Workers` education should be intensified for building up internal union
leaderships and making workers more knowledgeable and conscious about
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their rights and obligations.5.
The idea of one union for one plant or one industry should be popularized.
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6.
The Government should declare its policy to allow and encourage the
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parties to settle their conflicts by bipartite consultation and negotiationconsistent with public safety and interest of the society in general.
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Other Suggestions
1. Unions should be made strong so that they are able to honour the terms of
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collective agreements. They can be made strong in the following ways:(a) By excluding minority unions from industrial relations rights such as
right to bargain or right to carry labour disputes to conciliation or
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industrial tribunals. This will spur minority unions into expanding their
membership. At present many of them feel why they should exert
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themselves when a mere 5,10 or 15 percent membership gives them allthe privileges of representation, conciliation and adjudication.
(b) By freeing unions from political control and building new leadership.
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To achieve these ends there should be greater use of the local Indian
languages in the matter of labour laws, adjudication proceedings,
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employer-union correspondence, etc. Face-to-face negotiations shouldtake the place of conciliators, tribunals and lawyers. A real complaints
procedure for settling the daily small problems of the factory must
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develop and the union posts should made whole time and salaried.
(c) By making secret ballot vote rather check-off membership the test of a
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union`s majority status.2. Adequate statutory provisions should be made to make an agreement cover
all the workers. At present, under section 18(1) of the Industrial Disputes
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Act, a collective agreement binds only those workers who are a party to it.An agreement does not automatically extend to workers who were not a
party to it even though they might have obtained certain benefits under it.
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3. On the failure of negotiations both parties should have equal right and
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freedom to strike work or to declare a lockout. It is totally unjust andinequitable to leave one party absolutely free in the exercise of its right and
to impose all sorts of curbs on the right of the other party.
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4. In addition to the existing authorities under the Industrial Disputes Act., one
more authority should be constituted to promote collective bargaining. Its
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functions may include advising parties on various aspects of collectivebargaining (such as procedure, content and form of agreement), helping
parties in resolving jurisdictional disputes and registering agreements
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concluded by the parties.
5. Each party should cultivate the right type of attitude towards the other party.
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If the management starts with the proposition that the union is a nuisance orthat it to a very favourable start. Similarly, if the union starts with the
proposition that the management is selfish, autocratic and exploitative and
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the union must have the last word then the process of successful bargaining
cannot begin.
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6. Each party should develop the skill to understand the view point of the otherparty. To acquire this skill a lot of homework is required which is helpful in
analysing a problem. Failure to do sufficient homework leads to confused
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arguments and counterarguments and delays the whole process of collective
bargaining.
7. A tradition of successful collective bargaining should be built. Every issue
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which is amicably settled through collective bargaining strengthens the
possibility that future issues also will be similarly settled and vice versa.
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8. Collective bargaining should usually be resorted to in settling disputesconcerning interests only. Disputes concerning rights should not be
magnified into collective bargaining issues and should be better through
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grievance redressal machinery.
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4.4 - COLLECTIVE BARGAINING IN CENTRAL PUBLIC SECTORUNDERTAKINGS
Collective bargaining in central public sector undertakings is done according to
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the guidelines issued by the Department of public Enterprises (earlier known as
the Bureau of Public Enterprises). This department gives the content and limits
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of financial commitments which public enterprise can make with the unionduring the course of bargaining. However, in many instances these limits are
circumvented by the management by making gentleman`s promises with the
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unions on several issues outside the written agreement and implementing these
promises over a period through administrative orders.
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In core industries like steel, coal, ports and docks and bank, collectivebargaining is done at the national level for the industry as a whole. Thus, in steel
industry, one main collective agreement is entered into by the National Joint
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Committee comprising representatives of trade unions and the steel companies`
management. This is followed by several supplementary agreements being
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entered into at the plant level to cover aspects not covered in the national levelagreement. Such centralized bargaining has resulted in creating uniform wage
structures and fringe benefit patterns in all public sector units irrespective of the
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nature of industry ( labour or capital-intensive) and the paying capacity of a unit
as determined by its financial performance. This is sharp contrast to a private
sector unit where its wages and fringe benefits are more geared to its specific
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requirements and circumstances.
4.5 - THE FUTURE OF COLLECTIVE BARGAINING
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There has been a decline in the number of workers covered by collectivebargaining in several industrialized nations. Bargaining coverage has declined
from 70 to 47 percent of the employee force in the U.K., and from 26 to 18
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percent in the U.S.A. in the course of decade from 1980 to 1990. Many forces
have combined to bring about this decline. Decline in trade union membership
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has been the fundamental force, followed by the preferences of employers forindividualized pay under the influence of HRM strategies, the decline of
centralized bargaining structures and the growth of enterprise level negotiations
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that tie benefits to the economic situation of the firm.
With collective bargaining, as with trade unions, adversaralism is acknowledged
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to be the root of the problem. There is general agreement that the future ofcollective bargaining lies in its ability to transform itself from an adversarial
process to an integrative and problem-solving partnership between labour and
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capital.
4.6 - SELF ASSESSMENT QUESTIONS
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1.Write a short note on Collective Bargaining in India?
2.
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Has Collective Bargaining flourished in India? If not what are the
reasons?
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3.What is the importance of Collective Bargaining in Industrial Relations?
Is Collective Bargaining successful in India?
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4.7 - FURTHER READINGS
1.
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K.K.AHUJA, Personnel Management, KALYANI PUBLISHERS,
NEWDELHI.
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2.C.B. MEMORIA & S. MEMORIA, Dynamics of Industrial Relations in
India, HIMLAYA PUBLISHING HOUSE, DELHI.
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3.
A.M. SHARMA, Aspects of Labour Welfare & Social Security,
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HIMALAYA PUBLISHING HOUSE, DELHI.--- END ---
Lesson 5
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Collective Agreements in India
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Objectives :- The aim of this lesson is to familiarize the students with:Methods used for the settlement of Industrial Disputes
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Collective Agreements in India
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Methods of arbitration
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Structure:- 5.1 ? Introduction
5.2 ? Negotiation
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5.3 ? Collective Agreements in India
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5.4 ? Conciliation and Mediation
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5.5 ? Arbitration
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5.6 ? Self Assessment Questions5.7 ? Further Readings
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5.1 - INTRODUCTION
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Generally, there are four important methods of collective bargaining, namely,negotiation, mediation, conciliation and arbitration for the settlement of trade
disputes. In this context R. F. Hoxie said that arbitration is often provided for
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in collective bargaining under certain contingencies and for certain purposes,ally when the parties can not reach agreement, and in the interpretation of an
agreement through negotiation.
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Conciliation is a term often applied to the art of collective bargaining, a term
often applied to the action of public board which attempts to induce collective
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bargaining.Mediation is the intervention usually uninvited, of some out-side person or
body with a view of getting conciliation or to force a settlement, compulsory
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arbitration is extreme mediation. All these things are aids or supplements to
collective bargaining where it breaks down. They represent the intervention of
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outside parties.5.2 - NEGOTIATION
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Negotiation, conciliation, mediation and arbitration are the four methods
used for settlement of industrial disputes in India. While last three are based
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upon the participation by outsiders, negotiation presupposes the existence oftwo parties to a dispute eager to negotiate and settle mutually? [There is no
scope for third party intervention It relies only bipartite dialogue. Thus,
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through negotiation both parties (representatives of labour and employer) may
arrive at mutually settled agreement. An agreement arrived at through
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negotiation or discussion between the representatives of both the parties, thatis through collective bargaining may be a treaty, a code, and, in some respects
a contract. As a treaty, it aims at reduction of disputes. It states conditions under
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which work is offered and accepted, and it is supported by detailed codes for
performance of that task. However, problems arise only when the negotiating
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machinery breaks down in practice and the issue continue to be unresolved.Nature and Purposes
The agreement has more flexibility than lawyer-down contract. It imposes no
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obligation upon an employer to offer work or upon a workingman to acceptit. It may cover a single shop and a handful of employees in it; or it may take
in entire industries and apply directly to scores of thousands of workers. But
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whatever form it takes, no matter, what is its length or completeness of
coverage, the purpose of a collective bargaining agreement is, "to establish and
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maintain wages, hours, and working conditions for the work covered by thisagreement; to prevent; to ensure the peaceful adjustment and settlement of any
and all grievances, disputes or differences that may arise."
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An agreement, usually establishes wage rates, hours of work, working
conditions and service conditions. It lays down the grievance procedure and
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whether dispute arising out of it may be submitted to arbitration, it specifies itsown duration and the ways and mean of renegotiation. Some agreements are
standardized document prepared by the international union which establishes
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more or less uniform conditions throughout an industry. But most agreement
are as individual as ringer prints; almost every item is a product of give and take
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negotiation, reflective of union pressure and employer's resistance.5.3 - COLLECTIVE AGREEMENTS IN INDIA :
Collective agreements are the result of negotiations between the representatives
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of the employer's association and trade union These agreements can be made on
matters like rate wages, hours of work, holidays with pay and the disciplinary
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procedure etc. In short, they may relate to working and service conditions.In India, collective agreements were not common in the past. The Royal
Commission on Labour found that the only attempt made to set up machinery
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for regulating the relations between a group of employers and their work-
people was at Ahmedabad. However, the situation has changed since
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independence, the trade unions have been growing and agreements withemployers have become more common. A sample study made by Employers
Federation of India for the years 1956-60 reveals that the number of disputes
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settled by collective agreements during the period in question varied between 32per cent and 49 percent in the units studied. Broadly the agreements are of the
following types:
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(i)
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Agreements which have' been drawn-up after direct negotiations betweenthe parties are purely voluntary in character for the purpose of their
implementation;
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(ii) Agreements which combine the elements of voluntariness and compulsion
i.e. those negotiated by the parties but registered before a conciliator as
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settlements; and(iii) Agreements which acquire legal status because of successful discussion
between the parties when the matters in dispute were under reference to
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industrial tribunals/courts and could be considered subjudice, the
agreements reached being recorded by the tribunals/courts as consent
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award.In this respect, it may be mentioned here that, this is the most welcome trend
and provides a healthy climate for industrial peace. The changing attitude of the
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employers and the emergence of a new generation of employers and workers
have also helped. Legal measures, inspite of their limitations, have lent as
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much support to collective agreements as joint consultations in bipartite andtripartite meetings at the national and industrial levels.
Most of the collective agreements have been at the plant level, though in
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important textile centres like Bombay and Ahmedabad, industry level agreement
have been common. These have a legal sanction under the state Act and have to
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be distinguished from other where no statutory sanction prevails, suchagreements are also to be found in the plantation industry and in the coal
industry.
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Apart from these, in new industries like chemicals, petroleum, Oil refining anddistribution, aluminium, manufacture of electrical and other equipment and
automobile repairing arrangements for settlement of disputes through voluntary
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agreements have become in recent years. In ports and docks collective
agreements have been the rule at individual centres. On certain matters
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affecting all parts, all India agreements have been method.On the whole, the record of reaching collective agreements has not
unsatisfactory, though its extension to wider area is desirable for prevention and
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settlement of disputes. However, to make them more effective, the trade
unions must be strong and sound in their organisation. The workers can be
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benefitted only through collective and united action, they can counteract thestrong bargaining power of the employers, and thus, can get a fair deal at
their hands. Moreover, any decision agreed upon collectively by workers can
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not be treated lightly by the employers. Hence, the importance of strong trade
unions and negotiations is the prevention and settlement of industrial disputes.
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5.4 - CONCILIATION AND MEDIATION:The absence of permanently constituted organs of negotiations and its creation
when a conflict is threatened does not solve the disputes effectively in the
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world of industry. Moreover, a temporary phase only provides hostility to
bargaining. It deprives the employers and the employees of a feeling of
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partnership in a joint venture. The values of organisation and work getjeopardized due to the inability of the parties in conflict to avoid extreme action.
To avoid the shock in adjustment and working jointly in a cordial atmosphere
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necessitate the help of outsiders in negotiations. Thus, conciliation and
mediation are the methods of settling industrial disputes with help of an
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outsider. It is considered necessary when mutual negotiations breaks down andissues remain unresolved.
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MEANING OE CONCILIATION AND MEDIATIONAgreements are arrived at mutually by an intermediary who either mediates or
conciliates. Conciliation is a method or a process which brings together the
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representatives of workers and employers before a conciliator (a third person
or a group of persons). The main objective is to help mutual discussion
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and persuasion in order to come to an agreement. Thus, conciliation isusually employed when management and labour are in dead-lock in negotiating
a trade agreement. In conciliation both parties look towards the conciliators
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with the intention that he should help us to agree. The conciliator's aim is
to reconcile the parties bringing them to an agreement which is very much
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similar to that of the mediator. He offers his advice and suggests ways ofresolving the controversy. The parties may or may not accept his
recommendations but once they accept them, they become legally bound by
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them.
Again, the aim of the conciliator is to break the dead lock, if any, explain the
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stand and view-points of one party to the other`, convey messages andgenerally keep the negotiation going Suggestions may come from the
conciliator or the mediator, but the parties are tree to accept reject them. It is
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the parties who ultimately decide the issues. They may come to an agreement
or they may not. These are the methods, which are primarily based on the
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principles of collective bargaining.Mediator helps the parties at their initiation or at least with the consent of both
parties, but it is not necessary in conciliation It is a passive act of intervention
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by a third party, i.e. the mediator. A mediator does not impose his will or
judgement upon the disputants but helps the parties to agree and reach a final
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decision of their own making. Thus, mediation by an outsider helps the partiestowards positive settlement of a dispute without imposing any personal will or
judgement. A compromise formula is suggested by the mediator with a view to
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bring about voluntary agreement between the parties. But the parties may ormay not accept it. Thus, a mediator plays a more positive role by am sing the
views and interest of the parties in dispute and by advancing suggestion for
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compromise for their consideration.
Conciliation and mediation are similar in that neither is compulsory nor
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judicial. The mediator has been described as a confidential adviser and anindustrial diplomat. His chief function is to help the two sides to come to an
agreement of their own accord, he does not impose his will or judgement but
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helps the parties to reach to an agreement. Thus, it is very much similar to
conciliation. Hence, the term conciliation is often used for the method
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which would be more properly described as mediation Obviously, the objectiveof conciliation and mediation is the same that is to avert an impending rupture
between the disputant or if the rupture has already taken place to bring them
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together as soon as possible without resorting to arbitration. It should,
however, be noted that conciliation is based on mutual negotiation while
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mediation is based on negotiation through the third party. There isintervention of third party both in conciliation and mediation out the conciliator
is more active and more intervening than the mediator.
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5.5 - ARBITRATION
Arbitration is the means of securing a definite judgment or award for any
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controversial issue by referring it to a third party. It may imply the existence ofan authority set apart to adjudicate on industrial disputes under recognized
conditions. Arbitration is by mutual consent of the parties. When the
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Government decides to refer a case to a Labour Court or Industrial Tribunal, it is
called adjudication. Thus, compulsory arbitration is referred to as adjudication.
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Arbitration involves the exercise of an authority to bring about an agreement orto help the process of settlement by adjudicating on industrial disputes. The
arbitrator has powers to probe and in the process becomes acquainted with the
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facts of the industrial situation.Arbitration in industry shares several common features with conciliation and
mediation. Just like conciliation and mediation, there is also intervention of third
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party. It can either be voluntary or compulsory like conciliation and mediation.
The note of distinction between arbitration an conciliation is that in the former
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the decision is finding on the parties, while in the case of later the parties may ormay not accept the decision. Arbitration is characterized by a different approach
than conciliation and mediation. Arbitration procedure is more of judicial nature
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and the award has the resemblance of a court`s judgment. The arbitrator has his
own decision and does not care for the recommendations of the parties. The
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procedure of conciliation is not of judicial nature and the conciliator persuadesthe parties towards positive settlement of dispute without imposing any personal
will or judgment.
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METHODS OF ARBITRATION
Voluntary Arbitration:
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The arbitration can either be voluntary or compulsory. Arbitration is voluntary,if the parties, having failed to settle their differences by negotiation agree to
submit their cases to arbitrator whose decision they agree to accept. Arbitration
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is voluntary in the sense that the disputants are free to give their consent or to
refuse to submit their differences to the decision of the arbitrator. Hence, the
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fundamental character of voluntary arbitration is the voluntary submission ofcases to an arbitrator, and therefore, it does not necessitate the subsequent
attendance, of witness, investigation and enforcement of awards may not be
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necessary, because there is no compulsion. Under voluntary arbitration, it is not
necessary that there may be an arbitration agreement or arbitration clause.
The former refers to the arrangement for submission of certain types of disputes
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while the latter is concerned with the disputes to occur in future.
Compulsory arbitration or adjudication means, when the Government decides to
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refer the dispute to arbitration and for the parties to abide by the award of thearbitration and at the same time prohibit parties from causing work-stoppages.
The main idea behind the imposition of compulsory arbitration is to maintain
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industrial peace by requiring the parties to refrain from causing work-stoppages
and providing a way for settling the dispute.
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Compulsory Arbitration:Where parties fail to arrive at a settlement by the voluntary method, recourse is
taken to compulsory arbitration. Arbitration is compulsory, when parties to the
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dispute are compelled to submit their cases to an outside person, board or court
and the decision of such agencies is binding upon them. Thus, arbitration when
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compulsory follows statutory action and necessitates the submission of case byparties to an arbitrator. Generally, when the parties fail to arrive at a settlement
by voluntary methods, the Government under statutory provision refer the case
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to an authority for adjudication and enforces its award on the parties. Hence,
adjudication is a form of arbitration, which implies compulsory arbitration. The
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rules and procedures of arbitration are similar to those commonly followed incourts of law. Thus, compulsory powers of investigation and compulsory
enforcement of awards, with penalties for breaches of these awards.
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5.6 - SELF ASSESSMENT QUESTION
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1. Explain the various methods for the settlement of industrial disputes?2. Explain collective bargaining process with examples in Indian context.
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5.7 - FURTHER READINGS1.
K.K.AHUJA, Personnel Management, KALYANI PUBLISHERS,
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NEWDELHI
2.
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ARUN MONAPPA, Industrial Relations, TATA Mc GRAW - HILLPUBLISHERS, NEWDELHI.
3. T.C. TRIPATHI, Personnel Management & Industrial Relations,
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SULTAN CHAND & SONS, NEWDELHI.
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Unit - VLESSON-1
LABOUR ADMINISTRATION
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Labour administration ia a wide term. It is primarily conserned with labour
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affairs and administration of social policy. The meeting of experts on labouradministration held in Geneva in October 1973 felt that to deal with the major
substantive programmes of labour administration, there should be central
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specialized units for each of the following:
1. Labour protection (formulation of standards relative to working conditions
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and terms of employment, including wages)2. Labour inspection;
3. Labour relation;
4. Employment or manpower, including training; and possibly
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5. Social security..These bodies are either bipartite or tripartite in character
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Labour administration is not simply the responsibility of the department oflabour . many agencies and government department such as chambers of
commerce, factory and mines inspectorate, social insurance directorate, and
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department of human resource development and education are involved in it. Insome countries, the organizations of employers and workers are also involved in
the administration of labour matters. But it is primarily the responsibility of the
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department of labour of lay down, develop and apply sound labour policies,
coordinate various recommendations received from various departments which
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have a bearing on labour affairs. Formulation of policy decision are based onconsultation with other interests (particularly of Employers and workers
organizations) and of research and field investigation. Most of the labour policy
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proposals may emanate from the minister of labour himself or from his
department. The department of labour is the body which receives most such
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proposals and initiates the preparatory process. In some cases, labour courts,arbitration bodies and different adhoc commissions can be regarded as forming
part of the labour administration machinery, though they are usually outside of
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the department of labour
Most of the work done in department of labour is either professional or
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technical. The meeting of experts on labour administration viewed that labouradministration officials in particular services should have the basic academic
qualifications required for such services (especially in law, economics, socio-
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logy, administrative sciences, psychology, statistics, actuarial sciences,
medicine, engineering and so forth). The exact qualifications required for each
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post can be determined by the government of each country.It is a part of the job of labour administrator to give effect to laws governing
employment and conditions of work. Labour legislation is a necessary
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instrument for a governments administration of labour affairs. Standards
established by legislation may be further developed, complemented or applied
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through administrative action. Legislation automatically entails the prescribingof procedures for enforcement and imposition of penalties. A system of law is a
guarantee for peoples personal safety, liberties and right. To maintain respect
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for the law in general, the laws that are adopted must be strictly applied, withoutfear or favour. Labour administrators have a fundamental duty to uphold the rule
of law at all times. To inculcate a respect for the law, they must also remember
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the old maxim that justice must not only be done, but must manifestly be seen
to be done.
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Labour law does not consist entirely of laws produces by law makers. Unwrittencustomery and case law deriving from generations of judicial practice also play
a role, particularly with regard to contracts, torts and the right to receive
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compensation for damages. There are countries where the entire labour
legislation has been codified covering entire gamut of labour laws and labour
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administration. The greater number of non-statutory lagal requirements in thelabour field are derived from the practice of industrial relations. A highly
developed system of collective bargaining operated by strong organizations of
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employers and workers can cut out much of the need for subsidiary regulations.
There are various ways in which collective agreements amplify the law and
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serve as an alternative to statutory rule making. Two basic principles governingsuch collective agreement are:(a)there should be no conflict between the
agreement and the law;(b)better terms and conditions will prevail, i.e., an
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agreement may grant employees conditions more favourable than the minimum
laid down by the law of the land.
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It is a basic principle of modern ,law that, to be valid, a contract has to involve aconsideration, i.e., something in return for the other party`s performance of the
contract; this is usually wages rent or purchase price. There are various forms of
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contract of service, whether written or verbal.
In certain countries, collective agreements are contracts binding on the partied.
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They would not supersede the contract of service of employers and workerswho were not parties to the agreement. However, in many countries the
legislation now states that the terms of collective agreement with countries the
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legislation now states that the terms of collective agreements with unions thatenjoy recognized bargaining status shall be deemed to be legally binding on all
persons in the specified occupations in the industry or service for which can be
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enforced in the courts. Consequently in the later case, labour inspectors are also
involved in enforcing these conditions just like the minimum conditions laid
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down by law.INDIAN CONTEXT
In the government of India (amendment) Act, 1919, the central legislature was
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given the power to legislate in respect of practically all labour subjects. The
provincial Governments were empowered to legislate only in respect of those
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labour matters which were classified as provincial. But they were required totake the sanction of the Governor General in respect of these subjects also. All
labour legislation was enacted by the central legislature during this period.
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When the whitely commission reported in 1931, the bulk of the labour problems
within the jurisdiction of the government of India was dealt with by the then
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department of industries and labour under the charge of a member of thegovernor generals executive council. Its administrative head was a secretary to
government. While industries and labour was a short title for the department, it
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dealt with a variety of subjects, such as post and telegraph, public works, civil
aviation, patents and copyright and broadcasting. The department, however did
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not cover all labour within the jurisdiction of the central government. Questionsrelating to labour in docks, and transport by sea or inland water, the concern of
the commerce department; matters pertaining to the railway labour were dealt
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with by the chief commissioner for Railways. The department of Education,
health and lands looked after emigrant labour. In the chief inspector of mines,
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the department of industries and labor had an adequate source of advice on allsubjects relating to mining ;abour. No specialist advice was considered
necessary on the conditions of work in factories, workmen`s compensation,
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trade union and trade disputes. Administration of such legislation as was thereon these matters was the responsibility of the government of
presidencies/provinces.
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In the provinces, the labor portfolio was handled by a member of the executive
council who was responsible also for other subjects. Labour probles had
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acquired neither the vastness nor the complexity to warrant the attention of afull-time member, except in some industrially advanced provinces which had
their respective labour officers for the limited responsibilities they had to carry,
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no specialised agency existed for administration. It is in this context that the
Whitley commission recommended the setting up of the office of the labour
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commissioner in the provinces.On the introduction of provincial autonomy under the government of the Indian
Act,1935, labour was included in the concurrent list. Accordingly, matters
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exclusively included in the federal list and central and state legislation were
given authority to enact legislation in respect of all other labour matters.
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When popular ministries took over administration under the government ofIndiaAct,1935, labour problems started attracting more attention. The
appointment of the labour commissioner in industrially important provinces as
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recommended by the whitely commission did help labour. However, problems
of coordination still remained .The labour ministers conference and the Indian
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labour conference/standing labour committee which were the product of theforties, partly met this need. With the impact of the second world war, the
machinery for labour administration at the center expanded. According to the
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rege committee which reported on the eve of independence, the instuition of
labour officers under the commissioners of labour to whom workers could
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represent their grievances, was well established in most provincial government.Like wise the government of India appointed under its chief labour
commissioner, a number of regional labour commissioners and conciliation
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officers who were entrusted with duties of setting labour disputes. The chieflabor commissioner`s organization had also an inspectorate for supervising the
implementation of labour laws. The government of India appointed labour
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welfare adviser in its ordinance factories. An advisory service was built up at the
center for the factory inspectorates in the states which were operating under the
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auspices of the state government. The labour bureau was established. A networkof national employment service and training instates was getting organized. The
five year programme for labour(1946) had many elements in it requiring the
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strengthening of the administration and intensifying its operations. The
legislative support given to the programme resulted in (a) the creation of
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administrative machinery for the implementation of new enactments and (b) thestrengthening of the then existing set-up to cope up with the additional functions
entrusted to it. The expanding operations of the tripartite bodies also added new
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responsibilities.
The beginning of world war II in 1939 necessitated the creation of an adequate
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and contented labour force in order to maxmise production for meeting theincreased demand of Indian manufactured goods. The central government
therefore, assumed wide power to control and regulate the industrial labour
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welfare. The labour department was strengthened and a machinery to deal with
industrial relations was created. An integrated resettlement organization for
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demobilized war personnel was established. For advising the government toimprove working conditions in factories a chief advisor of factories was
appointed. A new department of works, mines and power was created and
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certain subjects which were having only an indirect bearing on labour were
transferred to this department. This lessened the burden of the labour
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department. In pursuance of the decisions of the provincial labour ministersconference in 1946 the central ministry of labour chalked out a five year
programme of legislative and administrative measures for improving the health,
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efficiency and working conditions of the labourers.At present there is a tripartite labour machinery. It consists of the Indian labour
conference, the standing labour committee, the industrial committees and a few
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other committees of a tripartite nature. Labour ministers conference are also a
bipartite joint consultative committees and boards such as committees, steering
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group on wages, wage board, central board for workers education, centralcommittee on labour research.
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According to the constitution of India, the enactment and administration of
labour laws is the responsibility of both the union and the state governments.
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SCOPE OR FIELDS OF LABOUR ADMINISTRATION:
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The scope or fields of activities under labour administration have expanded
during the course of time initially confined to the enforcement of a few labour
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laws or regulations, labour administration has come to cover within its fold awide variety of subjects. Substantial enlargement of the number and contents of
labour laws and regulations all the more necessitated the establishment of a
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network of labour administration machineries. State regulation of labour
matters become necessary also from many other consideration. The broad areas
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covered under labour administration today , whether statutory or non-statutory,include- contract and terms of employment, wages ,working conditions,
industrial relations, social security employment and un-employment ,training ,
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employment of children and women, organisation of workers and employers
information and research and industrial disputes and work-stoppages. The
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specific fields of labour administration activities include:quantum of wagesincluding minimum wages, protection of wages fringe-benefits, bonus hours of
work , workmens compensation, provident funds and pension, gratuity, sickness
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benefit , medical protection, unemployment benefit , employment policy ,employment exchange, training , vocational guidance, labour measures and so
on. The degree of emphsis, activities undertaken, and the extent of intervention
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vary from country to country.
Lobour administration is confined not only to the nation ministerial department
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or departments of state or local government. It also covers the role of otheragencies including workers and employers organizations and non-governmental
agencies at various levels. The fields of labour administration activities
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essentially depend on the nature of labour policy, labour laws and regulations
and practices operationg in particular countries at particular times.
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Of the agencies involves in labour administration, the government the nationalministerial labour department has to play the most significant role. The
international labour conference suggests the following main functions of such a
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department:
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1. It should be required to provide the government with all usefulinformation for or to advise it with regard to the elaboration of
governments labour policy abd where necessary the preparation of law
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and regulation;
2. It should be entrusted with the administration of labour laws and
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regulations, the implementation of governments labour policy and thehandling of labour questions;
3. It should participate at the highest level and on an accepted and
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reciprocal basis with other government department in elaboration of
policies concerning such objectives as eradication of unemployment,
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industrial peace and other questions relating to labour; and4. It should have at its disposal competent and adequate staff and
administrative resources such as will enable it to perform its functions
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efficiently and impartially.IMPORTANCE OF LABOUR ADMINISTRATION:
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Efficient labour administration, capable of responding to changing and social
conditions and justifying the confidence of both employers and workers , makes
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a vital contribution to the improvement of working conditions and at the sametime to national development. Its contribution towards development of
participation through social dialogue and tripartism has been recognized all over
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the world. Labour administration has increasingly acquired credibility on
account of the fairness of labour policies, laws and regulations which are known
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and applied uniformly. It also contain elements of transparency as there isopenness in decision-making which generally involves consultation with and
participation by the parties concerned. Decision are generally taken after
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informing to the parties about the proposals. Services in labour administration
are made available without discrimination. Organisation for labour
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administration is generally open and responsible. It is accountable for itsmandates and activities. In brief labour administration has come to contain
elements of participation, credibility, transparency and responsibility.
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About the points of strength of labour administration, the department for
government and labour law and administration of ILO states, labour
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administration is an acknowledged actor in the elaboration of governmenteconomic and social policies a major source of information in its fields of
competence for government employer and worker decision-making; an active
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intermediary for preventing and setting industrial disputes; an informed
decision- making ;an active intermediary for preventing and settling industrial
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disputes; an informed observer of the trends and development of society byvirtue of its special links with social partners; a provider of effective solutions to
the evolving needs of its users.
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Some if the specific contribution of labour administration have been thefollowing:
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1. Formulation of labour policy consistent with the needs of the society and
economy and taking into account the views of the parties effected;
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2. Establishment of uniform standards of labour and adaptation of steps fortheir effective observance and enforcement;
3. Improvement of the working and living conditions of workers and
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protecting those who need special protection;
4. Maintenance of industrial peace and harmony;
5. Identification of the rights and obligations of the parties and ensuring
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their effective compeliance;
6. Promotion of co-operation among the parties and encouragement to
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consultation with and participation of the employers and workers;7. Penalising those not complying with the provisions of laws, rules or
regulations; and
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8. Making available the government services for ensuring compliance with
the declared policies and programmes.
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QUESTION FOR EXERCISE1 Explain briefly the concept of labour administration?
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2. Write about evolution of labour administration in Indian context?
3 Describe the nature and scope of the labour administration?
4 Explain the importance of labour administration
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REFERENCES
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1.I L O: labour administration, function & organization, report V(i),international labour conference, 61st session,1976,p.14
2. labour administration in India by A.M.SHARMA, Himalaya publishing
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house-1993
========================================================
LESSON NO:2
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INTERNATIONAL LABOUR ORGANISATION AND LABOUR
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COUNCIL &CONSTITUTIONAL PROVISIONSConference as an autonomous body associated with League of Nations. It was
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born as a result of the peace conference at the end of World War I at Versailles.
India became member of ILO in 1919, as an original signatory to the treaty of
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peace. the ILO was the only international organization that survived the secondworld war even after the dissolution of its parent body the League of Nations. It
became specialized agency of United Nations (UN) in 1946. The ILO is now
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social institution trying to make the word conscious that world peace may be
affected by unjust conditions of its working
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The International Labor Organization was established on April 19, 1919 byVersailles Peace population. It deals with International Labor Problems. The
Unique feature of ILO is that it is a tripartite body consisting of representations
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of employers, labor government. There are three constituents namely the
governments, which finances it, the workers, for whose benefit it, is created and
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the employers who share responsibility for the welfare of the workers.Objectives of the I.L.O
The objectives of the ILO are enumerciated in the preamble to its constitution
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and in the Declaration of Philadelphia(1944) supplemented by Article 427 of the
Peace Treaty of Versailles (1919). The Preamble affirms (i) where as universal
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and lasting peace can be established only if its is based upon social justice, (ii)and where as conditions of labour exist involving such injustice, hardship and
privation to large numbers of people as to produce unrest so great, that the peace
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and harmony of the works is imperiled, (iii) whereas also the failure of anynation to adopt however the conditions of labour is an obstacle in the way of
other nations which desire to improve the conditions in their own countries.
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Thus, ILO has been attempting to promote world-wide respect for the freedom
and dignity of the working men and to create conditions in which that freedom
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and dignity can be more fully and effectively enjoyedIn April 1914, during the second world war a conference was convened at
Philadelphia. During the discussions at this conference the aims of ILO were
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redefined. This was termed as Declaration of Philadelphia. This was
incorporated in the constitution of ILO. The conference reaffirmed the principles
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of ILO namely: (i) labour is not a commodity, (ii) freedom of expression and ofassociation are essential to substantial progress, (iii) poverty any whose
constitutes a danger to prosperity everywhere, (iv) the war against want requires
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to be carried on with unrelenting vigour within each nation, and by continuous
and concerted international effort in which the representatives of workers and
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employees enjoying equal status with those of governments form with them infree discussion and democratic decision with a view to the promotion of the
common welfare.
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The Declaration of Philadelphia enunciated 10 objectives with the ILO was to
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further promote among the nations it the world. These are:1. Full employment and the raising of standards of living.
2. The employment of workers in the occupation in which they can have
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the satisfaction of giving the fullest measure of their skill and make their
contribution to the common well being.
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3. The provision, as a means to the attachment of this e3nd and underadequate guarantees for all concerned, of facilities for training and the
transfer of labour including migration for employment and settlement.
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4. Policies in regard to wages and earnings bonus and other conditions ofwork calculated to ensure a just chare of the fruits of progress to all and a
minimum living wage to all employed and in need of protection.
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5. The effective recognition for the right of collective bargaining, the co-
operation of management and labour in continuous improvement of
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productive efficiency and the collaboration of workers and employers insocial and economic measures.
6. The extension of social security measures to provide a basic income to
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all in need of such protection and comprehensive medical care.
7. Adequate protection for the life and health of workers in all occupation.
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8. Provision for child welfare and maternity protection.9. The provision of adequate nutrition, housing, and facilities for recreation
and culture
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10. The assurance of educational and vocational opportunity.
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Procedure for Admission as a MemberThe constitution of ILO provides that all the states, who are members of ILO on
1 November, 1945 and any original member of UN can become member of ILO
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by accepting its obligations of its constitution.
The constitution of ILO was amended in 1945, and the ILO entered into
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arrangement with the UN. The new rules say that:1. Membership of the UN does not mean membership of ILO, any original
member of the UN and any state subsequents admitted to the
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membership of Un may become member of ILO by communicating to
the Director General, its formal acceptance of the rules and obligations
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of the ILO.2. If a state is not a member of the UN, the ILO confess on the International
LabourConference (ILC ? parliamentary wing of the ILO), the right to
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admit that state to membership, which it had assumed defects during theperiod of the relationship of the ILO with the league.
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In 1919 there were 45 states who were members of ILO by ? the membership of
the ILO had referred to.
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The ILO consists of three principal organs namely (i) the International LabourConference and the Governing Body is supplemented by that of Regional
Conferences, Regional Advisory Committee and Industrial Committees.
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The conference is the supreme policy making and legislative body. The
Governing Body in the Executive Council and the International Labour Office is
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the secretarial, operational headquarters and information center.The structure of ILO and various functions are depicted below in Chart
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ILO
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International Labour
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Governing Body
International Labour
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ConferenceOffice
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1. Examines social
Representatives of the
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Research Investigationproblems and
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1. Governments
Technical Corporation
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2. Adopts conventions2. Employers
Publications
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for ratification by
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3. Workers in theGovernments
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ratio of 2:1:1
3.It is the electoral
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colleges of the
conference that
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International
Internation
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elects the Governing
Body
Center for
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al Institute
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Advancedof Labour
Technical and
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Studies
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VocationalTraining
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The ILC International Labor Conference : is the policy making organ of the
ILO. It Comprises 4 groups representing governments, employers and workers
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in the ratio of 2:1:1. ILC holds its sessions once in a year. Delegates to thissession may be accompanied by advisors not exceeding two for each item on the
agenda. the government delegates are mostly ministers diplomats or government
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official. As per the constitution, the government of that state in agreement with
respective organizations of employers are tripartite in nature.
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One of the primary powers of the conference is to appoint committees to dealwith different matters during each session. see committees except finance
committee, and tripartite in nature.
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These committees are: (i) The Selection Committees, (ii) The Credential
Committee, (iii) The Resolution Committee, (iv) A committee for the
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application of conventions and Recommendations, (v) The Drafting Committee,(vi) The Committed on Standing Orders, (vii) The Finance Committee.
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Functions of ILC (International Labour Conference)
(1)To formulate international labour standards
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(2) To fix amount of contribution by the member states(3) To decide the expenditure budget estimate proposed by the director
general and submitted to the governing body
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(4) To make amendment to the constitution subject to subsequent ratification
of the amendment by 2/3 member states including 5 of the 10 states of
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industrial importance.(5) To consider the report of the director general giving labour problems
and assist in their solution
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(6) To appoint committees to deal with different matters doing each
session.
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(7) To select once in 3years members of the governing body.(8) To elect its president.
(9) To seek advisory opinion from the international committee of justice.
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(10) To confirm the powers, functions and procedure of regionalconference.
THE GOVERNING BODY
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It is another principal organ of the ILO. It is now political, non-legislative partite
body. In implements decision of the ILC with the help of the international labour
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office. Out of the 56 members in it, 28represent the governments,14 employersand 14 labour. Out of 28 government members,10 are appointed by the members
of the states of chief of industrial importance and the balance are delegates of
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the other governments. The criteria laid down for the selection of members of
the chief industrial importance is the strength of its total industrial population .
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India of the ten states of chief industrial importance. The tenure of office of thisbody is 3 years. It meets several times a year to take decisions on the
programmes of the I L O. The functions of this body are:
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(1) To co-ordinate work of the organization.(2) To prepare agenda for each session and subject to the decision of the ILC to
decide what subject should be included in the agenda of the ILC.
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(3) To appoint the director general of the office.
(4) To scrutinize the budget.
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(5) To follow up the implementation of the conventions and recommendationsadopted by the ILC by member states.
(6) To fix the date, duration and agenda of the regional conference.
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(7) To seek advisory opinion from the international court of Justice with theconsent of ILC.
THE INTERNATIONAL AND LABOUR OFFICE
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This is the third major and important organ of the ILO, it function as the
secretariat of the ILO in Geneva. The director of general of the ILO is the chief
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executive of the secretarial. He is appointed by the governing body. He also actsas the secretary general of the ILO, conference. He is tenure is for 10 years and
his term may be extended by the governing body. The director general is
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assisted by two deputy director generals, six assistant director denerals and by
one director of the international institute of labour studies, one director of the
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international centre of advanced technical and vocational training and of thestaff drawn from 100 nations. The important functions for the international
labour office are:
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(1) To prepare documents on the times of the agency for the conference.
(2) To assist governments informing legislate on the basis of the decisions
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of the ILC.(3) To carry out its functions related to the observance of the conventions.
(4) To bring out publication dealing with industrial labour problems of
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international interest.
(5) To collect and distribute information of international labour and social
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problems.FINANCE OF THE ILO
The budget is prepared and fixed on the recommendation of the governing body
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and member states make their contribution. Contribution are fixed on adhoc
basis from year to year. India contributes 2.77% of the annual budget of the
ILO.
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IMPACT OF THE ILO ON THE INDIAN LABOUR
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India is a member of the ILO since its inception and it gave great fillip to labourlegislation in India. India has adopted many of the conventions and
recommendations on international standards for improvement in labour
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conditions, under Article 3 of the constitution of the ILO. India has been
nominating non-government delegates and advisors to the ILC every year.
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One of the main functions of the ILC the legislative wing of the ILO is toformulate international labour standards. The ILC provides a forum for
discussion and deliberation of international labour problems and then formulate
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the standard in the form of conventions and recommendations.
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A convention is a treaty, which when rectified by a members stat, createsbinding international obligations on that state. A recommendation creates no
such obligation but is essentially a give to the nation action.
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The ILO adopted a series of conventions and recommendations covering hours
of work employment of women, children and young persons, weekly rest,
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holiday, leave with wages, night work , industrial safety, health hygienic, socialsecurity, labour management relation, freedom of association wages and wage
fixation productivity, one of the fundamental obligations, imposed on
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governments by the constitution of ILO is that they a submit the instrument
before the competent national or state authorities, written a maximum period of
18 months of their adoption by the conference for such action as might be
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considered practicable.
India has been one of the founder members of the ILO and has been taking
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advice part in its deliberations. The ILO has so far adopted 173 conventions and180 recommendations. India has ratified 36 conventions. The Ilo standards have
a decisive have been incorporated in the labour lagislation. The ILO standards
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have a decisive impact on the factory, mines, social security and wage
legislation in India. The AITUC owes its immediate origin to it. Indias
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commitment to the ILO is reflected in its adherence to the institution oftripartism as a novel method of researching labour management conflicts.
The ILO standards have influenced Indian labour legislation. The ILO
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conventions have formed the sheet anchor of Indian labour legislation especially
after 1947 when the Indian national government assumed office at the center.
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The directive principles of the state policy in articles 34,41,42, and 43 of theconstitution lay down policy objectives in the field of labour having close
resemblance and influence to the ILO constitution and the Philadelphia charter
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of 1944.
CONSTITUTIONAL
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PROVISIONIN
RELATION
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TO
LABOUR
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ADMINISTRATIONLabour administration in the country acquired a new orientation with the
adoption of the Indian constitution in 1950. Article 246 and schedule 7 of the
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schedule 7 of the constitution contain provisions relating to distribution of
legislative powers between the central and state government. For legislative
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purpose the subjects have been kept under three lists namely (i) union list ii)concurrent list and iii) state list. only parliament can enact laws on matters
included in the concurrent list. subjects specified under state list come under the
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jurisdiction of state legislature
Labour matter in the three lists are as follows:
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Union list: participation in international conferences, associations and other
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bodies implementing their decisions; regulation of Labour and safety in minesand oil fields, and industrial dispures concerning union employees, union
pension, inter state migrations, and labour in major ports, railways, posts,
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telegraphs and telephones, and air transport, and union agencies and institutions
for a) professional, vocational or technical training and b) promotion of special
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studies and research.concurrent list trade unions, industrial and labour disputes, social security and
social insurance, employment and unemployment, welfare of labour including
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conditions of work, provident fund, employers liability, workmen`s
compensation, invalidity and old age pension and maternity benefits; vocational
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and technical training of labour, labour in factories, boilers and electricity,inquiries and statistics, and economic and social planning.
State list state pension and relief of the disabled and unemployables
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Under articles 256 and 257, the central government is empowered to give
directions to the state government in respect of laws enacted by the parliament.
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under article 258,the central government can delegate powers to the stategovernments and impose duties on them. the central government can also
transfer to the state governments the power to legislate on matters in the
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concurrent list.
A few clauses of fundamental rights and directive principles of state policy also
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influenced subsequent course of labour administration. the relevant fundamentaltights are: freedom of association(art 19), and right against exploitation which
prohibits forced labour, employment of children under 14 years of age in
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factories, mines and other hazardous employments, and traffic in human beings(art 23). the directive principles of state policy enjoin upon the state to direct its
policy in such a manner as to secure to all men and women right to an adequate
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means of livelihood , equal pay for equal work, and with in the limits of its
economic capacity and development to make effective provision for securing the
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right to work, education and to public assistance in the event of unemployment.old age, sickness and disablement or other cases of undeserved want. The state
is also directed to make endeavour to secure to workers a living wage humane
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conditions of work, a decent standard of life and involvement of workers in
management of industries. The policy of the state is also standard of life and
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involvement of workers in management of industries. The policy of the state isalso to be directed towards securing that the health and strength of workers,
men and women, and the tender age of children are not abused and that citizen
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are not forced by economic necessity to enter avocations unsuited to their age or
strength. The state is further required to ensure that children are given
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opportunities and facilities to develop in a healthy manner and in conditions offreedom and dignity and that childhood and youth are protected against
exploitation and against moral and material abandonment. The directive
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principles of state policy are not justice able, but are fundamental in the
governance of the country and it is the duty of the state to apply these principles
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while making laws, fundamental rights are justiceable.IMPORTANT QUESTIONS
1(Q) Briefly explain about the ILO and its objectives?
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2(Q) Explain about the declaration of Philadelphia enunciated 10 objectives?
3(Q) Write the procedure for Admission as a member in ILO?
4(Q) Explain the structure of the ILO?
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5(Q) Explain the organs of ILC and its objectives.
6(Q) What is the impact of the ILO on the Indian labour.
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7(Q) What are the constitutional provision in relation to labour administrationREFERENCES
Labour problem in Indian industry, Asia publishing house, Bombay
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1972,v.v.giri.
Dynamics of industrial relations ? mamoria, gankar ? himalaya publisihing
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house-2003Industrial relations and trade unions ?P R N SHARMA ? PEARSONS
EDUCATIONS , SINGAPUR.
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LESSON -3
Labour administration machinery of the central government
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The main responsibility for labour administration of the Government of Indiavests in the Ministry of Labour. The Ministry presently consists of the main
Ministry(Secretariat), and four attached offices, ten subordinate offices, four
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autonomous organization, a number adjudication bodies and one arbitration
body.
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THE MAIN MINISTRY (SECRETARIAT)The main ministry of labour (secretariat) is the center for consideration and
decision of all questions relating to labour so far as the government of India is
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conderned. It is the central administrative machinery for the formulation of
labour policy, enforcement of labour laws and for the promotion of labour
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welfare. It guides, controls and coordinates the activities of all organizations andagencies involved in labour administration at the center or in the states. The
government of India allocation of business rules have laid down in detail the
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specific subjects allotted to the ministry. The main subjects include: labour
policy including wage policy and legislation, safety, health and welfare of
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labour, social security for labour, policy relating to special target groups such aswomen and child labour, industrial relations and enforcement of labour laws in
the central sphere, adjudication of industrial disputes through central
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government industrial tribunals, labour courts and national industrial disputers
through central government industrial tribunals, labour courts and national
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industrial tribunals, workers education, labour and employment statistics,emigrational of labour for employment abroad, employment services and
vocational training, administration of central labour and employment services,
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and international cooperation in matters relating to laour and employment.ATTACHED OFFICES
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The attached to the ministry of labour are i) Office of Chief Labour
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Commissioner, ii) Directorate General Factory Advice Service Labour Institutes,and iii) Directorate General Factory Advice Service Labour Institutes and iv)
Directorate General, Employment and Training
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Office of Chief Labour Commissioner
The headquarter of the organization is in New Delhi. The chief labour
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commissioner is assisted by a joint chief labour commissioner, a chief adviser,labour welfare, a directors training and a few deputy chief labour
commissioners, regional labour commissioners, and a number of regional labour
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commissioners, assistant labour commissioners and labour enforcement officers
in the field. The functionaries in the hierarchy of the organization have been
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designated and inspectors, authorities, controlling authorities, appellateauthorities, conciliation officers, registrar to trade unions as per requirements of
various acts and according to their ranks and convenience of administration. The
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organization of chief labour commissioner is also known as central industrial
relation machinery (CIRM)
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The organization is responsible for: prevention, investigation and settlementof industrial disputes in the central sphere, implementation of labour laws in
industries and establishments in respect of which the central government is the
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appropriate government, enforcement of settlements and awards, verification of
membership of trade unions affiliated to the central organization of workers for
the purposes of giving them representation in national and international
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conferences and committees and determining their representation in national and
international conferences and committees and determining the representative
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character for recognition under the code of discipline, and investigation intobreaches of code of discipline.
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The labour laws enforced by the organization in industries or establishments in
the central sphere include: payment of wages act.1936, industrial employment
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(standing orders) act, 1946, industrial disputes act, 1947, trade unions act, 1926,minimum wages act, 1948, maternity benefit act, 1961, payment of bonous act,
1965, child labour (prohibition and regulation) act, 1986, payment of gratuity
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act, 1972, equal remuneration act 1976, inter state migrant workmen (regulation
of employment and conditions of service)act, 1979, contract labour (regulation
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and abolition act),1970, and dock workers(regulation of employment)Directorate General Factory Advice Service Labour Institutes
The head quarter of this organization is located in Mumbai. It functions as a
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technical arm of the ministry in regard to matters concerned with safety, health
and welfare of workers in factories and ports and docks. It assists the central
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government in the formulation and review of policy and legislation onoccupational safety and health in factories and ports. It maintains liaison with
factory inspectorates of states in regard to implementation and enforcement of
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provisions of the factories act, 1948. It enforces the dock worker (safety, health
and welfare) act,1986. the organization renders advice on technical matters, and
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undertakes research in industrial psychology, and so forth. It provides advicetraining in the field of industrial safety and health and conducts one year
diploma course in industrial safety and three months certificate course in
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industrial health. Labour institutes are located in Mumbai, Kanpur Calcutta and
Chennai.
Labour Bureau
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The labour bureau is located in Shimla and Chandigarh. The organization is
headed by Director general.
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The labour bureau is responsible for : collection, compilation and
dissemination of labour statistics, construction and maintenance of working
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class consumer price index numbers for selected centers and all India basis for
industrial workers, construction of CPI numbers for agricultural and rural
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workers, maintenance of up to date data relating to working conditions ofindustrial workers, undertaking research into specific problems concerning
labour with a view to supplying date and information needed for the formulation
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of labour policy, publishing reports, pamphlets and brochures on various aspects
of lanbour. And bringing out regular publications of Indian labour journal
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(monthly), Indian labour year book, and pocket book of labour statistics.Labour bureau also brings out reports on the working of a few labour, laws,
reviews on industrial disputes, closures, lay off retrenchment, special
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publications on matters of labour interest, and a monthly news letter under the
title labour intelligence
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Directorate General, Employment and TrainingThe headquarter of this organization is located in New Delhi. It is headed by the
director general , employment and training. The organization is responsible for
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laying down the polices, standards, norms and guidelines in the area of
vocational training throughout the country and also for the coordinating
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employment services. Employment exchanges, industrial training institutes anda numbers of other specialized institutions both at the central an in the
states/union territories. Development of these programmes at the national leve,
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particularly in the area of evolving common polices, laying down standards and
procedure of training of officers and evaluation of the programmes in the
responsibility of the directorate general of employment and training. The day-to-
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day administration of the employment exchanges and industrial training
institutes rests with the state governments/union territory administration.
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Employment exchanges provide placement and vocational guidance services tojobseekers.
The main training schemes operated under the organization include:
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craftsmen training schemes, apprenticeship training scheme, craft instructors
training schemes, training of highly skilled craftsmen and supervisors, training
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of women, staff training and research, and development of instructionalmaterials.
SUBORDINATE OFFICES
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The subordinate offices under the ministry f labour are: the Directorate
General of Mines Safety and nine offices of Welfare Commissioners.
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The Directorate General of Mines Safety is located in Dhanbad. It is entrestedwith the responsibility of enforcing the Mines Act,1952 and the Rules and
Regulations framed under it. The organization also enforces the Indian
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Electricity Act, 1910 as applicable to mines and oil-fields, and Maternity Benefit
Act, 19 61 in mines.
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The nine offices of Welfare Commissioners are located in Allahabad,Bangalore, Bhilwara, Bhubaneshwar, Kolkata, Hyderabad, Jabalpur Karma and
Nagpur. The organization are responsible for the enforcement of various labour
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welfare funds aacts such as those for mica mines (1946), limestone and dolomite
mines (1972), beedi workers (1976), cine workers (1981), dicj-wirjers (1986),
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building workers (1996) and chrome ore mines. The activites of Coal MinesLabour Welfare Organisation which were governed by the Coal Mines Labour
Welfare Fund Act, 1947 were taken over by the Coal India Ltd,. in 1986. The
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organizations formulate and implement various welfare schemes for the benefit
of the coal mines workers such as housing, medical and recreational facilities,
water supply, education facilities, and so on. They have also undertaken
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schemes of scholarships for the children of the workers and accident benefits for
the workers and their dependants. Most of the welfare activities are administered
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directly by the organizations, but loans and subsidies are also made available tothe state governments, local authorities and to the employees for implementation
of Prototype schemes
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Autnomous organisations
The autonomous organizations of the Ministry are :
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1. Employees State Insurance Corporation,2. Employees Provident Fund Organization
3. Central Board for Workers Education, and
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4. VV Giri National Labour Institute.
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EMPLOYEES STATE INSURANCE CORPORATIONThe corporation is a statutory body set up under the Employees State Insurance
Act, 1948. its headquarter is located in New Delhi. The principal officers of the
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Corporation are: Director General, Insurance Commissioner, Medical
Commissioner, Chief Accounts Officer, and Actuary. There is also a standing
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committee, which is the executive committee of the corporation and MedicalBenefit Council.
The organization administers various benefits under the Act, for instance,
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sickness benefit, maternity benefit, dependants` expenses, funeral benefit, which
are cash benefits, and medical benefit. The medical benefit has been made
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available to the family members of the insured employees and also tosuperannuated employees.
Employees Provident Fund Organization
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The head quarter of the organization is in New Delhi and its chief executiveofficer is the Central Chief Provident Fund Commissioner. The organization has
a number of regional and other offices spread throughout the country.
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The organization is responsible for the enforcement of the Employees Provident
Funds and Miscellaneous Provisions Act, 1952 and the schemes framed under it.
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The schemes framed and in operation under the Act are: I) Employees ProvidentFund Scheme,1952. ii) Employees Deposit linked Insurance Scheme, 1976, and
iii) Employees Pension Scheme, 1995. the Employees Family Pension Scheme,
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1971 had been merged in the Employees Pension Scheme, 1995.
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Central Board for Workers Education (CBWE)The Central Board for Workers Education was set up in 1958 as a tripartite
society in the Ministry of Labour. Its headquarter is in Nagpur.
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The objectives of the Board inter alia include
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1. To strengthen among working class a sense of patriotism, nationalintegrity, unity, communal harmony and secularism
2. To equip all section of workers for their intelligent participation in social
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and economic development of the nation
3. To develop among workers a greater understanding of the problems of
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their social and economic environment, their responsibilities, and theirrights and obligations and citizens, as workers and as members and
office-bearers of trade unions.
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4. To develop leadership from among the rank-and-file of workers
5. To develop strong, united and more responsible trade unions
6. To strengthen democratic processes and traditions in the trade union
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movement
7. To enable trade unions themselves to take over ultimately the functions
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of workers education.The Board conducts a variety of workers education and training programmes for
workers in the organized, unorganized and rural sectors. Programmes for
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workers in the organized sector include: training of trainers, refresher courses
for trainers, personality development programme, joint educational programme,
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need based seminars, unit level classes, and functional adult literacy classes.Programmes for workers in the unorganized sector include organizing camps for
the purpose of educating them in various areas and organizing special seminars.
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Special attention is given to the education of women and child labour and
workers belonging to weaker sections. The training programmes for workers in
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the rural sector lay emphasis on rural educators training courses, orientationprogrammes for rural educators and organizing rural awareness camps.
Most of the eduation and training programmes of the organisatlin are conducted
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by Regional and sub-regional cinters spread in different parts of the country.
They organize workers education activities in various levels- regional, unit,
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enterprise and village levels. There are four Zonal offices of the Board at Delhi,Mumbai, Kolkata and Chennai
The Board has set up an apex-level training institute at Mumbai known as Indian
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Institue of Workers Education(IIWE). The institute conducts national level
training programmes.
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The Board provides grants-in-aids to trade unions and educational institutions toundertake their own workers education programmmes of the approved pattern
and standard. The grant is available for conducting full or part-time residential
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and non-residential programmes. The grantees are allowed flexibility regarding
subjects to be covered and number of participants. The Board also publishes
textual and pictorial booklets in English and Indian languages on topic o interest
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to the working class, and a quarterly journal titled workers Education.
VV. Giri National Labour Institute
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The institute was set up in 1974 as a registered society with the objective ofundertaking, promoting and coordinating research on labour. It is located in
NOIDA. It is an autonomous organization of the Ministry of Labour. Its affairs
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are governed by the General Council. The general council elects an executive
council which monitors the day to day functioning of the institute. Secretary,
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ministry of labour, is the chairman o the executive council.Research occupies a primary place in the activities of the institute. The subject
of research comprises a broad spectrum of labour related problems in both the
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organized and the unorganized sectors. The institute gives priority to action
research projects with special emphasis on the problems and issues of labour in
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the unorganized sector. The institute has so far completed a number of researchprojects relating to labour market, employment relations, rural labour and
agrarian relations, labour history and child labour.
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The institute also organizes training programmes for various target groups
including, labour administrators of the central and state governments, industrial
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relations managers, trade union leaders, social partners associated with theelimination of child labour, and representatives of the Panchayati Taj
institutions. Other activities of the institute include: organizing workshops and
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seminars, and publications.
ADJUDICATION BODIES
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As on march 31, 2002,17 central government industrial tribunal- cum labourcourts set up under the industrial dispute Act, 1947 were functioning in the
country. Of these two each are located in mumbai and dhanbad and one each in
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asansol, bangalore, bhubaneshwar, chandigarh, chennai, hederabad, kolkata,kanpur, lucknow, jabalpur, jaipur, new delhi and nagpur.
BOARD OF ARBITRATION
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The board of arbitration was set up in 1968 under the scheme of joint
consultative machinery and compulsory arbitration- introduced by the ministry
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of labour in 1966. The board of arbitration consists of one full time chairman,and two other members representing the staff and official sides appointed out of
a panel at the time of reference of a dispute to the board. The board is an
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instution for compulsory arbitration of disputes between employees and the
government on matters relating to pay and allowance, weekly hours of work and
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leave of a class or grade of employees.LABOUR ADMINISTRATION MACHINERY OF STATE ,DISTRICT
AND LOCAL GOVERNMENTS
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The machineries for labour administration in the states are similar to those
operating at the center. As explained earlier in the chapter, most of the important
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labour subjects in the concurrent list of the constitution. The central governmentis empowered to give direction to the state government and to delegate powers
and impose duties on them. Many central labour laws are enforced both by the
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central and state government in industries or establishments falling under their
respective jurisdictions.
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Generally speaking, labour administration of the state governments is on apattern similar to central labour administration with slight variations relating to
implementing agencies and the requirements of the state enactments and non-
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statutory labour programmes. the main organizations for labour administration
in the states comprise, department of labour and employment (secretariat), office
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of labour commissioner chief inspectorate of factories, chief inspectorate ofboilers, office of chief inspector, shops and establishments, directorate,
employment and training, directorate, medical services esi scheme), social
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security directorate and adjudication authorities.DEPARTMENT OF LABOUR AND EMPLOYEMNT (SECERTARIAT)
The responsibility for labour administration in the states generally vests in the
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department of labour and employment, the secretariat of which represents the
government side. it is generally in charge of a minister, who may occasionally
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be assisted by a minister of state and deputy minister. on the official side, thesecretary or the principal secretary is the chief executive. his team generally
includes an additional secretary, and a few joint secretaries, deputy secretaries
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and under secretaries according to requirements. it is this organization that
formulates the labour policy of the state, establishes liaison with the central
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ministry of labour coordinates and guides the activities of enforcing machineriesand takes decisions on behalf of the government.
OFFICE OF THE LABOUR COMMISSIONER
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The office of the labour commissioner plays the anchor role in the labour
administration of the states. majority of labour laws are enforced in the state
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under the auspices of this organization. a mention of these laws has already beenmade above. the organization also makes efforts to prevent work stoppages
including strikes and lockouts and to maintain industrial peace. the labour
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commissioner is assisted by joint labour commissioners, deputy labour
commissioners, assistant labour commissioners, labour superintendents, labour
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officers and labour enforcement officers or labour inspectors, some of whom areposted in the headquarters, but majority of them operate in the different areas or
centers of the state.
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The labour commissioner is generally conciliation officer under the industrialdisputes act,1947, registrar of trade unions under the trade unions act, 1926,
inspector under mist of the relevant labour laws, authority, controlling authority,
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appellate authority and so on under a few labour laws. Of late, special
responsibility of enforcing minimum wages act, 1948 in agriculture have
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devolved upon the organization. In some states, directorates of agriculturallabour has been established to assist the labour commissioner. A large number
of labour enforcement officers or labour inspectors have been appointed for the
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purpose. The labour commissioner also looks after the establishment, arbitration
and several other non statutory programmes. His jurisdiction is the whole state.
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In some states, the chief inspector of factories and the chief inspector of boilersalso report to him, while in others, they function independently. The labour
commissioner also guides, controls and supervises other functionaries working
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under him. The joint labour commissioners, deputy labour commissioners,
assistant labour commissioners, and labour superintends, and others are also
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designated as inspectors, conciliation officers, inspecting officers, deputyregistrar of tr4ade unions, authorities, certifying officers, workmen`s
compensation commissioners, appellate or controlling authorities for the
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purpose of relevant central and state labour laws and their areas of operation are
defined.
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CHIEF INSPECTORATE OF FACTORIESThe chief inspectorate of factories in primarily responsible for the enforcement
of the factories act 1948. he is generally assisted by a few deputy chief
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inspectors and a number of inspectors of factories. In some states, apart from the
inspectors of regular cadre, other public servants have also been designated as
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inspectors of factories. Besides implementing the provisions of the factories act,1948 ? those relating to safety, health, welfare, hours of worm, dangerous
operations, hazardous process, leave with wages ? the organization has also
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been entrusted with the responsibility of enforcing the provisions of the paymentof wages act 1936, maternity benefit act 1961, child labour (prohibition and
regulation) act, 1986 and the minimum wages act, 1948 in respect of factories.
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The organization also generally looks after productivity and cooperates with the
national productivity council in this area.
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CHIEF INSPECTORATE OF BOILERSThe main responsibility of this organization is the implementation of the boilers
act, 1923.
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OFFICE OF CHIEF INSPECTOR, SHOPS AND ESTABLISHMENTS
Office of chief inspector or chief inspecting officer has been established in most
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of the states of enforcing the provisions of the shops and establishments acts,which have been state enactments. In most states, the acts are implemented by
regular personnel of labour department, but in a few others, the responsibility
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has been entrusted on local bodies also.
--- Content provided by FirstRanker.com ---
DIRECTORATE, EMPLOYMENT AND TRAININGThe organization primarily looks after the operation of employment exchanges,
industrial training institutes, vocational guidance programme and some other
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institutions. The activities of the directorate are essentially governed by the
policies, standards and procedures set by the central directorate general,
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employment and training. Other activities of the organization include,employment market information, vocational rehabilitation centers, and training
of handicapped groups such as women and physically handicapped. The training
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wing of the department also looks after the implementation of the apprenticesact, 1961. generally, the directorate functions independently of the organizing of
labour commissioner.
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DIRECTORATE, MEDICAL SERVICES (ESI SCHEME)
The main responsibility for the operation of medical benefit under the
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employees state insurance act, 1948 lies with the state governments which arerequired to make available the services of the medical and para-medical
personnel. In most the states a special wing has been established for the purpose.
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As the medical benefit under the ESI scheme has been extended also to the
family members of the insured persons and superannuated employees, the
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responsibility of the state governments in this regard has increases. A director,administr4ative medical officer or a chief medical officer under the labour
department has been made in charge of the wing.
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SOCIAL SECURITY DIRECTORATE
A few states have established social security directorates for implementing
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certain social security schemes for the poor, unorganized workers, rehabilitationof bonded labourers and implementation of the inter state migrant workmen
(regulation of employment and conditions of services) act, 1979. They also look
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after the implementation of national old age pension scheme, national family
benefit scheme and national maternity benefit scheme.
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ADJUDICATION AUTHORITIESThe state governments have also constituted labour courts and tribunals under
the industrial disputes act, 1947, and a few of them have set up other
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adjudication authorities such as industrial courts and wages boards under state
laws. As on October 31,1998, as many as 214 labour courts, 97 tribunals and 22
labour courts-cum-tribunals were functioning in the states.
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Apart from the above machineries, the stage government have also set up
tripartite standing evaluation and implementation committee, minimum wage
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advisory boards, and few of them labour advisory boards, labour welfare boardsand standing committees for a few industries.
EVALUATION AND SUGGESTIONS
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The foregoing discussion has shown that since independence, labour
administration in India has expanded tremendously. The overall economic
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growth of the country has resulted in expansion of industries, spurt in tradeunionism, increase in the labour force and so forth. These developments created
a need for an improved organizational structure of labour administration
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machineries. As such, under the guidance of constitutional provisions and
economic planning, labour administration in India was expanded and revamped.
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However, certain deficiencies in the system, as also difficulties in operation,have been experience during the course of its working.
IMPORTANT QUESTIONS
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1. Explain the machinery for labour administration of the central
government?
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2. Explain the machinery for labour administration of the stategovernment?
3. Explain the machinery for labour administration of the district
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government?
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REFERENCES
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1. Govt. of India, Ministry of Labour. Annual Report, 2001-20022. Govt. of India, Report of the National Commission on Labour, 1969.
3. Industrial Relations, Trade Unions, and Labour Legislation, PRN Sinha,
Pearson Education, 2004
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=========================================================
LESSON -4
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INDUSTRIAL RELATIONS AND ITS CONTEMPORARY TRENDS
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Dictionary defines the labour industrial relations as the relations between
employers and employees in industry. According to dale yoder industrial
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relations describe relationship between management and employees or amongemolyees and their organizations that characteristics or grow out of
employment. In order that the term industrial relations could cover every secor
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of the labour force in all parts of the world the international institute of labour
studies has defined it as social relations in production. Today this term stands for
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such a wide variety of practices and institutions and has been used in suchdivergent context, 6that to define just the essence of it, is an extremely
complicated task. However a few element of this term are clear. these are;
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1. That originally the term stood for employer ?employee relations in an
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industry;2. Later on, when the worker organized themselves into trade unions and
the latter started dealing with the employers trade union activities also
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came to be included under this term;
3. Still later, when the relation between employers and employers and
employees came to be vested with public importance and ceased to be
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private the state had to be involved in such relations therefore the
activities of the state designed to modify regulate and control relations
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between employers and employees also become a part of industrialrelations.
4. The term industry is no longer confined to a small of economic activity
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but has come to include all gainful employments, including service under
the state.The relationship between the state and its employee-employer
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relationship in the industry. Therefore, employer- employee relationshipunder public services has also come to be covered by the term.
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Considering all these element mentioned above the term industrial relations can
be taken to stand for employees union employers government relationship in
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employment. As the term indicates industrial relations spring from the contactbetween employers employees and their trade union. such relations spring from
the contacts between employers, employees and their trade unions. such
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relations and contacts prevail at various levels and in various forms such as the
relations between a single employer and a single of his employees, between a
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single employer and more than one union or between many employersorganized on one side and many unions grouped under federations on the other .
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The modern industrial organization is based upon two large
aggregates(a)accumulation and aggregation of large capital and (b) aggregation
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of large number of workers organized under trade unions. The availability andsupply of a large quantity of capital and of a large number of workers divorced
from any ownership of the means of production, is the sine qua non of the
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establishment and the growth of modern industries. The center of industrial
relation is the coming together of these two big aggregates. Used narrowly the
term industrial relations covers industrial employment only, but in a wider
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sense, it covers public employment also.
DOMINANT ASPECTS OF INDUSTRIAL RELATIONS
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There are two important aspects of the industrial relations scene in amodern industrial society:
(1)cooperation, and (2) conflict.
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Cooperation
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Modern industrial production is based upon cooperation between labour andcapital. Here labour stands for the workers who man the factories, mines and
other industrial establishment or services. Capital stands for the owners of
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business enterprises who supply the capital and own the final product. The
cooperation between the two is one of the basic requirement for the smooth
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functioning of modern industries and the growth of industrialization.Conflict
The second aspect of the system of industrial relations obtaining today is the
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existence of conflict, conflict, like cooperation is inherent in the industrial
relations set up of today. The prevailing industrial unrest, the frequency of work
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?stoppages resulting either from strikes or lock-outs, and the slowing down ofproduction, are the occasional expressional of the ever- present and latent
conflict between workers and the management.
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Contemporary trends in industrial relations
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Percentage distribution of the causes of industrial dispute resulting inwork-stoppages in India
YEAR WAGES BONUS PERSONNEL
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LEAVE INDISCIPLINE OTHER&
&
ALLOWANCE
VOILENCE
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1990
24.9
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4.116.4
1.3
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16.1 37.2
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1991
24.5
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4.O17.4
1.0
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18.8 34.3
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1992
23
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8
17.5
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1.7
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21.2 28.21993
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26.8
7
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20.31.7
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18.7 25.5
1994
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30
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7.818
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1.5
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17.1 25.61995
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30.97.6
19.8
--- Content provided by FirstRanker.com ---
2.0
--- Content provided by FirstRanker.com ---
15.3 24.41996
--- Content provided by FirstRanker.com ---
25.48.6
19.9
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1.9
--- Content provided by FirstRanker.com ---
19.0 25.21997
--- Content provided by FirstRanker.com ---
248.8
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21.2
2.4
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20.4 23.2
1998
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21.2
11.2 17.3
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1.321.3 27.9
--- Content provided by FirstRanker.com ---
1999
21.9
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9
14.9
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1.O21.9 31.3
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Source: compiled on the basis of data published by ministry of labour,
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government of IndiaEFFECT ON THE SOCIETY AS A WHOLE
year mandays lost per strike mandays lost per
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lock-out(000s) (000s)
1990 9.7 36.7
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1991 7.3 26.31992 15.0 22.9
1993 6.1 30.7
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1994 8.2 36.5
1995 7.8 31.6
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1996 10.2 30.91997 7.9 20.9
1998 14.1 29.4
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1999 19.4 41.8
2000 23.2 48.6
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Source: compiled on the basis of data published by ministry of labourgovernment of India
FUTURE OF INDUSTRIAL RELATIONS IN INDIA
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The future of industrial relation in India can be reviewed from reports of the
commissions constituted by the government for this purpose. From these certain
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issues are emerging which are posing challenges to the three actors in thesystem.
1. the first is the issue of strengthening collective bargaining by trying to
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determine a sole bargaining agent for negotiations. The state of
Maharastra has already passed a law for the creation of asole bargaining
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agency in every unit and industry. Collective bargaining is advocated--- Content provided by FirstRanker.com ---
where the parties involves have a fuller understanding. This will help toarrive at a speedier settlement of dispute, between themselves.
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2. The second issue relates to the gaps that are occurring as a result of thevarious that occur in central and state legislations as far as labour matters
are concerned . In India ,labour fall under the concerned. In India , labour
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fall under the concurrent list though NCL has made a recommendation for
forming a common labour code which is yet to be adopted. Adoption of
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this recommendation will go a long way in solving some of the problemsthat indias legislation process is facing.
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3. Another issue is that of workers participation in management. India hasalready experienced the working of many forms of workers-participation
schemes but none of them seems to have made any headway. The reasons
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for the failure of these schemes need to be probed into.
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The three actors in the system need to take into account the effect of theiractions on the consumer s and society in general, owing to the growing inter-
linkages between industry and its environment. They have to evaluate and
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decide on the appropriate alternatives in terms of the strategy they are going to
adopt in managing the personnel and industrial relations functions. The
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environment is fast changing and the pressures from various groups involves arestarting to get more vocal and entense. The strategy chosen for the attainment of
the goals will have to depend on the objectives, values structures available and
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the environment in which they have to operate.
IMPORTANT QUESTIONS
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1. Define the concept of industrial relation and explain its factors?2. Discuss about the future of industrial relations in India?
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REFERENCE
1.Industrial relations- Arun Monappa-tata mcgraw hill-2000
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2. Industrial Relations, Trade Unions, and Labour Legeslation, PRN Sinha,Pearsons educations 2000
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