Introduction to industrial relations.

Back ground

Growth of labor jurisprudence

Development in Europe in 16th Century

Adoption of philosophy of laissez faire in most of the nations in Europe

Development of Marxian philosophy Labour unrest in Europe Emergence of communist states.

Rise of international labour organizations

Danial Le grand’s contribution International benevolent congresses

of 1856 and 1857 International factory and mine labour

conference of 1890 International association of labour

legislation 1900 Establishment of ILO 1919

ILO’s efforts to standardize principles governing industrial relation through conventions and recommendations.

Meaning of industrial relations

Meaning of industrial relations: It is a process by which people and their

organizations interact at the place of work to establish the terms and conditions of employment.

It denotes employee-employer relations, in both organized and unorganized sectors of the economy.

Definition given by ILO

Importance of industrial relations

Implication of industrial relations on workers and economy.

Development of healthy labour management relations.

Maintenance of industrial peace. Development of industrial democracy

Factors of industrial relations and factors affecting industrial relations.

Factors of industrial relations Workers and their organization Management The Government

Factors affecting industrial relations.

Institutional factors Economic factors Social factors Technological factors Psychological factors. Political factors. Enterprise-related factors. Global factors.

Approaches to industrial relations.

Psychological approach Sociological approach Human relation approach Socio ethical approach Gandhian approach System approach

Human relations approach For maintaining good human relations

in general and industrial relations in particular, the study of human needs is of paramount importance.

Types of human needs Physiological needs Safety needs Social needs Egoistic needs

Human relations approach Physiological needs

Food, water, clothing, shelter etc.

Security needs or safety needs Physical security Financial security Job security

Social needs Companionship affection

Egoistic needs Desire of self-esteem and Esteem from others.

How to manage IR under Human relations approach

Management has to design a suitable motivational strategy to provide environment for their optimum need satisfaction, required for maintaining good human relations in the organizations, which in turn also leads to good industrial relations.

Human relation approach cont…

If both the management and the workers understand and apply the techniques of human relations to industrial relations then it is beneficial for both of them leading to following results:

Workers are to achieve greater job satisfaction, develop greater involvement in their work and achieve a measure of identification of their objectives with the objectives of the organization.

Management will also get greater insight and effectiveness in the work leading to industrial progress

Socio-ethical approach This approach is not widely accepted It holds that industrial relations to great

extent depends on ethics of the people involved in it.

For maintenance of good Industrial relations both the labour and management should realize their moral responsibility and greater understanding of each other’s problem

Example - Scandinavian approach.

Socio-ethical approach contd..

The goal of labour management relations is ensuring maximum productivity, leading to rapid economic development

This goal can be achieved by adequate understanding among employers, workers and the government, of each other’s role in industry and willingness among parties to co-operate as partners in the industrial system.

Role of manager under socio-ethical approach

Development of a code of ethics and a management philosophy for industrial relations.

This philosophy should be firm but fair, tough but tender and hard but human.

Gandhian approach to industrial relations.

This approach of industrial relations is based on the following concepts: Truth Non-violence Aparigraha Non-co-operation trusteeship

Gandhian approach - contd…

Worker has right to strike This right has to be exercised in a just

cause, and in a peaceful and non-violent manner

It should be resorted to only after the employer fail to respond to their moral appeals

Disputes between employers and labourers are to be resolved non-violent means.

Non-co- operation amounts to peaceful strikes

Principles of Aparigraha

Individual does not have any right to hold or use wealth in disregard of the interest of society

The character of production is to be determined by social necessity rather than by personal whims or greed.

Trusteeship

There is no room for conflict of interest between the capitalist and labourers.

Characteristics of Indian labor Social composition Sex composition of workers Emergence of tribal labour Heterogeneity of labour Lack of differentiated class character High rate of absenteeism and labour

turnover Migratory character Instability and village nexus

Social composition

Workforce was generally provided by lowest castes, depressed classes.

Present trend

Sex composition

Participation of women in socioeconomic activities is a common practice in developed as well as developing countries of the world.

Position in India Domination of male workers in earlier

stages Women’s right to work Constitutional provisions

Tribal labour

Exploitation of forest resources

Heterogeneity of of labour

Division on the basis of caste, communities, ethnic group, religion, language, s

High rate of Absenteeism and labour turnover

Sickness Accidents or maternity Social and religious causes Other causes

Labour movement in India Labour movement confused with trade

union movement It is a movement for the workers Trade union movement is the movement by

the workers The people involved in the labour

movement are social reformers to improve working and living conditions.

It started from 1875 Trade union movement started in 1918

Trade union - Meaning By Webb “A trade union is a continuous association of

wage-earners for the purpose of maintaining or improving the conditions of their working lives.

Clyde states that A trade union is a continuing organization of employees established for the purpose of protecting or improving through collective action, the economic and social status of its members

GDH Cole defines a trade union to mean “an association of workers in one or more professions carried on mainly for the purpose of protecting and advancing the members’ economic interest of members.

Meaning of trade union under trade union Act

It is any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relation between the workmen and employer, or between workmen and workmen, between employers and employers or for imposing restrictive condition on the conduct of any trade or business and includes any federation of two or more trade unions.

General features of trade unions It is an association of either employers or employees

or of independent workers. Examples of employer’s unions are :

Merchant’s of employers association , all India manufactures organization, Organization of industrial employers, the Tea planters' Association of North India, The united planters’ Association of South India.

General labour unions Combination of intellectual labour like All India

teachers’ association, all India Bank Employees Association, National federation of Indian Railwaymen, All-India Medical doctors’ association

Labour unions are relatively permanent association of workers and are not temporary or casual

Trade unions are association engaged in securing economic benefits for its members.

The character of trade unions has been constantly changing

The origin and growth of trade union have been influenced by a number of ideologies

Functions of trade unions in India Protect and promote the interest of workers and conditions

of their employment. To achieve higher wages and better working and living

conditions for members. To acquire control over running of the industry by workers. To minimize the helplessness of the individual workers and

protecting them from victimization. To raise the status of the workers as partners in industry To encourage sincerity and discipline among workers Take up welfare measures for improving the morale of the

workers To safeguard the security of tenure To enlarge opportunities for promotion and training To provide for educational, cultural and recreational

facilities

Types and structures of trade unions.

Unions classified on the basis of purpose

Union classified on the basis of membership structure

Structure of trade unions in India

Trade unions classified according to purpose

Reformist union Revolutionary union Reformist union:

Preservation of capitalist society Maintenance of usual employer-employee

relationship, Elimination of competitive system of production Desire to modify in industry in accordance with

what their members consider to be current modes in society

Reformist union …..

Improving working conditions by enforcing safety measures

Try to generate increased purchasing power

Seek to dignify labour by forcing upon public and its leaders a recognition of the importance of labour in modern society

Revolutionary unions Aim at destroying the present

structure completely and replacing it with new and different institutions.

They seek to destroy capitalist industry and abolish the wage system and private property, to put an end to a society based primarily upon competition and individual rights, and substitute some other system,

Classification of revolutionary unionism

Anarchist unions Political unions Predatory unionism Guerrilla union

Union classified on the basis of membership structure

Craft union Staff union Industrial union General union

Craft union Organizations of workers employed in a particular

craft or trade Such unions link together those workers who have

similar skills, craft training and specialization They are mostly found amongst non-manual

employees and professional workers The members are craft-conscious than class

conscious. These unions aim at safeguarding the interests of the

members against the onslaughts of employers. they provide only the barest minimum of associative

integration.

Staff union

It refers to both craft and industrial unions.

Industrial unions

Industrial unions are organisation of workers

Common bond is the industry They include all type of workers Organised upon an industry wise

rather than a craft wise basis. Solidarity among them is due to class

conciousness.

General unions Organisations which covers various

industries and labourers having different types of skills

Objectives of these unions are all-embracing in character

They have numerical superiority They are open to all classes of

workers

Trade union structure

National federations Federation of unions

Trade union movement in India

Early years Slow pace of the trade union movement First strike at Express Mills at Nagpur Establishment of Bombay Mill Hands

Association by N.M. Lokhande Limitation of this association

First world war period Increase in number of strikes and their

ruthless suppress of these strikes – starting point of trade union movement

Formation of the Madras labour union 1918 Formation of unions in Bombay and

Calcutta in the year 1918 itself Establishment of unions in all important

industries such as railways, docks, textiles, engineering and coal mining in 1920

Between 1920 -29 Formation of AITUC Expansion of number of trade unions

and membership Enactment of The Indian Trade union

Act.1926 Growth of the Left-wing influence on

the Indian Trade union Movement Split in AITUC and formation of Indian

trade union federation

Between 1930 -1939

Further split in AITUC and formation of red trade union congress

Reunification of trade union movement

Present scenario of trade union movement in India

Central trade unions Indian national trade union congress All Indian trade union congress United trade union congress Bhartiya Mazdoor sangh National front of Indian trade unions

Problems of trade unions

Internal problems External problems

Internal problems

Migratory character Heterogeneous character Poor economic condition Illiterate labour Ineffective leadership Lack of unity among different federations. Low membership Low standard of life

External problems

Problems with respect to recognition Political pressures Out dated labour law Impact of changing industrial scenario

Measures to strengthening trade union movement Educating workers Economic and social upliftment Encourage internal leadership Sufficient funds Internal unity Clarity as to recognition Free from political pressure Promotion of welfare activities Training of leaders Mobilizing mass support

Trade unions Act 1926

Scheme of the Act Registration of trade union Cancellation of registration Recognition of trade union Rights and privileges of registered

trade union.

Scope of the Act

It applies to all kinds of unions of workers and association of employers.

It extends to the whole of India

Registration of trade union Registration is not compulsory Any seven or more members by subscribing

to the rules of the trade union can apply for registration

At least 10% of the applicants should be actually employed in the industry

Application has to be made to the registrar of trade union

Application must be accompanied by copy of the rules of trade union and containing few statutory details

Details to be given along with Application

Name, occupation and addresses of members making application

Name of the trade union and the address of its head office

Titles, names, addresses and occupation of the officers of trade union

Legal status of registered trade union

Trade union is a body corporate Perpetual succession Common seal Registered trade union can sue and be

sued in its own name Can acquire, hold, sell or transfer any

moveable or immovable property

Cancellation of registration

On the application Suo motu

Registration obtained by fraud and mistake

Trade union ceased to exit. Contravention of provision of trade Act

Recognition of trade union Recognition of trade union is a voluntary

measure Annexure A to trade union Act 1926 on

recognition of trade union Where there are more than one trade union, a

union functioning of for at least one year after registration should get recognition

Once the union is recognized, there should be no change in its position for 2 years

Union with largest membership should be recognized

Unions which observe the code of discipline are entitled to recognition

Collective bargaining

Introduction Concept of collective bargaining Definition of collective bargaining

objectives of collective bargaining

Prime objective is to maintain cordial relations between the management and the workers;

settle disputes relating to wages and working conditions.Safe guard the interest of workers through collective

actionPrevent unilateral action on part of the employersTo raise workers standard of living and win a better share

in company's profitDemocratic participation in decision making on the

working conditions

Pre-requisites of effective collective bargaining Freedom of association Strong and stable trade union Enlightened management Mutual trust There should not be exaggerated demands It should be undertaken in the spirit of

accommodation rather than conflict Regular meetings between representatives and

employers to consider matters of common interest. Problem solving attitude Favourable political climate Avoidance of unfair labour practices from both sides

Factors inhibiting collective bargaining in India Lack of proper appreciation as to the philosophy,

objectives and advantages of collective bargaining among workers and also on the part of employers and policy makers.

Multiplicity of trade unions and rivalry among unions.

Organizational and financial weakness of trade unions

Lack of definite procedure to determine as to recognition of trade union

Frequent political intervention in the process of collective bargaining which gives political colour and orientation to the collective bargaining process

Provision of elaborate adjudication machineries Comprehensive coverage of labour laws

Grievance Handling and Industrial Discipline

Meaning of grievance Grievance is a complaint or

representation as regards to work place related matter arising from employment or service condition

Causes of grievances

Matters like discipline and dismissal Payment of wages and fringe benefits Working time, over-time entitlements Promotion, demotion and transfer Rights deriving from seniority Obligations relating to safety and

health as laid down in the agreement

Procedure for settlement of grievances

Procedure for settlement of grievances

Model grievance procedure

Indiscipline and misconduct

Meaning of indiscipline and misconduct

Causes of misconduct Forms of misconduct

Standing order

Meaning Objects of standing orders Model standing orders Types of punishments under standing

ordersLaw dealing with standing orders

Disciplinary proceedings

Ethical codes and industrial relations

Industrial disputes (Conflicts)

Definition of industrial disputes Essentials of industrial disputes

Factum of dispute Parties to the dispute Subjectmatter to the disputes Origin of disputes

Industrial disputes

Classification of industrial dispute Impact of industrial disputes Causes of industrial disputes

Strikes and lock out

Meaning Types of strikes When strikes justified? When the strike becomes illegal Meaning of lockout Right to lock out

Dispute settlement inside the organization

Works committee Joint management councils Grievance settlement authority Domestic enquiry

Dispute settlement machinery outside the organization

Conciliation

Arbitration

Adjudication

conciliation Conciliation

definition Conciliation officer

Meaning Appointment Procedure Powers Functions of conciliation officers Duties of conciliation officer

Board of conciliation

Constitution of board of conciliation Duties of Board Commencement and conclusion of

conciliation proceedings Persons on whom settlement is

binding Period of operation of settlement

Adjudication

Meaning of adjudication Constitution of adjudicating authority Judges of labour courts Jurisdiction of labour courts Duties of labour courts

Industrial tribunal

Constitution Judges of tribunal Jurisdiction Functions of tribunals

National tribunal

Constitution Presiding officer of national tribunal Jurisdiction Procedure Powers Finality of orders of national tribunal

High courts and Supreme Court

Awards of the adjudication bodies

Definition of awards Form of the award Publication of award Enforcement of award Persons on whom the award is

binding Penalty for breach of award.

Arbitration

Definition of arbitration Voluntary arbitration Reference to arbitrator Selection of arbitrator Arbitration agreement Publication of arbitration agreement Jurisdiction of arbitrator

Arbitration - continued

Procedure before the arbitrator Functions of arbitrator Commencement of arbitration

proceedings Status of arbitrator Award of arbitrator Exclusion of the arbitration Act

Workers participation in management

Evolution of concept of worker’s participation in the management

Participation of workers in management in industrially advanced countries

Levels of participation Sachar’s committee on worker’s

participation. Varma’s committee on workers

participation in management

Various policy and legislative measures to ensure industrial democracy in India

Form of workers participation in India

Joint councils and their function Plant council and its function Shop councils and their functions. Scheme of workers’ participation in

management in India.