Trade Union : formation, meaning, types, objectives

8/10/2019 Trade Union : formation, meaning, types, objectives

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L IA S R N T O S I U T S D A N L WI E L A R R & AB O L

2. DEFINING IRIndustrial relations encompasses a set of phenomena, both inside and outside the

workplace, concerned with determining and regulating employment relationshipRelationship between

management and employees or among employees and their organization that characterize and grow

out of employment.

3. THEORIES AND CONCEPTS USED TO ANALYSE INDUSTRIAL RELATIONS Approaches Used

to Define Industrial Relations (1) (1) Institutional-based definitions: industrial relations are the sum of

institutional processes that establish and administer the rules regulating workplace relations (2)

Social Psychology-based definitions: industrial relations are the sum of social psychological

interactions between individuals (3) Class-based definitions: industrial relations are the sum of

institutions, interactions and processes that are a product of wider social and economic influences, in

particular the class divisions of contemporary capitalism

4. Approaches Used to Define Industrial Relations (2) Ddefinitions that seek to include all matters

contained in the first three definitions within other terms:(4) Human Resource Management: contracts

of employment (involving trade unions, worker collectives, labour courts and government agencies),

as well as management of conflict arising out of the personal interactions of individuals in the

workplace, are part of labour management functions ( i.e. recruitment, selection, training,

development, performance management, and so on)(5) Employment Relations (or Employee

Relations): contracts of employment (involving trade unions, worker collectives, labour courts and

government agencies), as well as the management of conflict arising out of the personal interactions

of individuals in the workplace, are part of workplace relations, together with the normal functions of

Human Resource Management.

5. OBJECTIVES OF IRTo enhance economic status of workerTo avoid industrial conflicts and their

consequencesTo extend and maintain industrial democracyTo provide an opportunity to the worker to

have a say in the management decision makingTo regulate production by minimizing conflictsTo

provide forum to the workers to solve their problems through mutual negotiations and consultations

with managementTo encourage and develop trade union in order to develop workers collective

strength

6. NATURE OF IRIR arise out of employer employee relationsIR is a web of rules: formed by the

interaction of Govt, industry & laborIR is multi dimensional: influenced by complex set of institutional.

economic & technological factorsIR is dynamic and changing: keep pace with employee

expectations, trade unions, employer associations and other economic and social institutions of

societyIR is characterized by forces of conflict and compromise. Individual differences and

disagreements resolved through constructive means.Govt influences and shapes IR: with its laws,

rules, agreements through executive and judicial machineryScope of IR is very wide as it covers

grievances, disciplinary measures ethics, standing orders, collective bargaining, participatory

schemes and dispute settlement mechanism etcInteractive and consultative in nature: in resolving

conflict,controversies and disputes between labor and management.


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7. SCOPE OF IRManagementUnion relationshipEmployerEmployee relationshipRelationship

amongst various groups of employeesEffect of extraneous factors like state, socio-political- economic

factors on workplace relationships

8. APPROACHES TO INDUSTRIAL RELATIONS Approaches to organisations Unitary Pluralistic

Marxist Authoritarian Co-operation Evolution Conflict Paternalism Revolution Approaches to industrial

relations Input Conversion Output Institutions Conflict Regulation and (differences) (rules) processes

Human Systems Social action Control of resource the labourmanagement process Wider approaches

to industrial relations Labour market Comparative

9. UNITARY APPROACHIR is grounded in mutual cooperation, individual treatment, team work and

shared goals.Work place conflict is seen as temporary aberration, resulting from poor

managementEmployees who do not mix well with organization cultureUnions cooperate with the

managementManagements right to manage is accepted because there is no we they

feelingUnderlying assumption is that everyone benefits when the focus is on common interest and

promotion of harmonyBased on reactive strategy. Direct negotiation with employeesParticipation of

Govt, tribunals and unions are not sought or are seen as being necessary for achieving harmonious

employee relation

10. PLURALISM(CONFLICT APPROACH )Pluralism is belief in the existence of more than one ruling

principle, giving rise to a conflict of interests.The pluralist approach to IR accepts conflict between

management and workers as inevitable but containable through various institutional arrangements (

like collective bargaining, conciliation and arbitration etc) and is in fact considered essential for

innovation and growth.It perceives organizations as coalitions of competing interests , where the

managements role is to mediate among the different interest groups.It perceives trade unions as

legitimate representative of employee interestsIt also perceives stability in IR as the product of

concessions and compromises between management and unions.Employees join unions to protect

their interests and influence decision making by the management. Unions thus balance the power

between management and employees. In pluralistic approach a strong unions is not only desirable

but necessary

11. MARXIST APPROACHMarxists like pluralists also regard conflict as inevitable but see it as a

product of capitalistic society where as pluralist believe that the conflict is inevitable in all

organizationsFor Marxists IR has wider meaning. For them conflict arises not because of rift between

management and workers but because of the division in the society between those who own

resources and those who have only labor to offer.Marxist approach thus focuses on the type ofsociety in which an organization functions.Industrial conflict is thus equated with polit ical and social

unrestTrade Unions are seen both as labor reaction to exploitation by capitalists, as- well-as a

weapon to bring about a revolutionary social change. Wage related disputes as secondaryFor them

all strikes are political and they regard state intervention ( via legislations and creation of Industrial

Tribunals ) as supporting managements interests, rather than ensuring a balance between the

competing groups.


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12. SYSTEMS APPROACHIR - a social sub-system within the econ. & political systemsComp

contexts (influencesactorsonents & constraints on decisions & rules - regulatory elements i.e. the

termsideology - beliefs affecting actor views - shared or in conflictaction e.g. market, technology,

demography, industrial structure) & nature of the employment relationship developed by IR

processes

13. OTHER APPROACHES OF INDUSTRIAL RELATIONS ( DIFFERENT SCHOOLS OF THOUGHT

)PSYCHOLOGICAL APPROACHDifferences in the perceptions of labor and management wrt factors

influencing their relations i.e. wages. Benefits, services and working conditions etcDissatisfaction

compels workers to turn aggressive and resort to strike, lockouts and gherao etc.SOCIOLOGICAL

APPROACHSociological factors such as value system, customs and traditions etyc affect the

relations between labor and managementHUMAN RELATIONS APPROACHHuman behavior is

influenced by feelings, sentiments and attitudes. As per this approach humans are motivated by

variety of social and psychological factors like economic and non-economic awards to be used.GIRI

APPROACHCollective bargaining and joint negotiations be used to settle disputes between labor and

management. Outside interference to be avoided.GANDHIAN APPROACHworkers right to strike but

cautioned that this right be exercised in just cause and in a peaceful and non- violent manner for

minimum wages etc like satyagrah- Non violent non- cooperation

14. ROLES OF WORKERS,MANAGEMENT & GOVERNMENT

15. PARTIES TO IR EMPLOYEES EMPLOYERS EMPLOYEE EMPLOYER-EMPLOYEE

EMPLOYER ASSOCIATIONS RELATIONS ASSOCIATION COURTS GOVERNMENT &

TRIBUNALS

16. ROLE OF WORKERSWORKERS and their ORGANIZATIONS( Trade Unions or Associations

)Trade unions have a protecting role of safeguarding workers interests,Regulating function of

ensuring implementation of statutes / ActsEnsuring non-violation of workers rightsTrade Union Act

provides Status and Authority for the power vested in themThis power is used for negotiating Wage

Interests, better benefits and service conditions, concessions, more amenities and welfare

schemesStructure of Workers organization or Trade unions differs from country to country

17. ROLE OF MANAGEMENTAn organization is represented through officials designated in the

organization structure for coordination of activities relating to:Administering employee

benefitsRegulating terms and condition of employmentProviding welfare and social security

benefitsCoordination is done through graded hierarchical and formal communication channels of

orders and directivesStyle and manner in which employer organizations get work and regulate the

terms and conditions of employment affects the industrial relations of the unit.

18. ROLE OF GOVERNMENTGovt or state machinery regulates the relationship between workers

organizations and employers organizations.It does it through : - Statutes and legislations, - The

judiciary- labor courts industrial tribunals - An executive machinery- that lays down rules, procedures

and gives awards and monitors them


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19. EMPLOYMENT RELATIONSDunlops model

20. FACTORS AFFECTING EMPLOYEE RELATIONSINTERNAL FACTORS:Attitudes of

management to employees and unionsAttitudes of employees to management and unionsAttitudes of

unions to unions to management and employeesPresent and likely future strength of unionsEffective

and agreed procedures for discussing and resolving grievances or handling disputes within the

companyInter union rivalries in case of more than one unionEffectiveness and capability of managers

and supervisors in resolving grievances and handling disputes.Companys strategy wrt expansion,

diversification, contraction , stabilization, turnaround and stagnation etcQuality of work life ( QWL),

growth and developmental opportunitiesDegree of Autonomy and Empowerment given to employees;

21. FACTORS AFFECTING EMPLOYEE RELATIONSEXTERNAL FACTORS:Militancy of unions-

nationally or locallyAuthority and effectiveness of the employers familyThe extend to which

bargaining is carried out at national, local or plant levelThe effectiveness of any national or local

procedure agreements that may existEmployment situation nationally or locallyLegal framework

within which IR exists

22. SOCIAL SECURITY( IMPACT ON EMPLOYEE RELATIONS )Social security is one of the key

components of labor welfareLabor welfare refers to all such services, amenities and facilities to the

employees that improve their working conditions as-well-as their standard of livingSocial security

benefits provided by an organizations should protect not only their employees but also their family

members including financial security and health care etcSocial security envisages that the employee

shall be protected against all types of social risks that may cause undue hardship to them in fulfil ling

their basic needs.Accidents, job losses, retirement, sickness, death while on duty- these are realities

of working life and leave a person and his dependents vulnerableSocial security is an attempt by the

employer and the state io institute measures that mitigate such social risks

23. MAJOR LEGISLATIONSIndia being a welfare state has taken up itself the responsibility of

extending various benefits of social security and social assistance to its citizens.Although the

constitution of india is yet to recognize social security as a fundamental right, it does require state to

promote the welfare of the people by providing social, economic and political justiceConstitution

requires companies to make effective provisions for making effective provisions for securing right to

work, to educate and public assistance in case of unemployment, old age, sickness and disablement.

Securing just and humane conditions of work. Raise level of nutrition and standard of living,

improvement of public health etcA social security division has been set up under the ministrybof labor

and employment.In the context of labor , social security aims at reducing risks against loss ofearnings or earning capacity due to old age,illness or work- related injuries.

24. Social security to the workers is provided through 5 major Acts:1. The Employees State

Insurance act, 19482. Employees provident Fund and Miscellaneous provisions Act3. The Workers

Compensation Act4. The Maternity Benefit Act5. The payment of Gratuity ActIn addition there are

large number of welfare funds also for some speci fic segmentsMajor thrust of social security relating

to labor is on: a) Provisions relating to medical facilities, compensation benefits and insurance


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coverage incase if accidents, incapacity, illness etc.. b) Provisions relating to provident fund and

gratuity

25. TRADE UNIONS &INDUSTRIAL DISPUTES

Enhance their status in societyIn most countries, there are laws governing the formation,

membership and administration of trade unions.Improve the terms and conditions at their

workplace26. WHAT IS A TRADE UNION?Definition: An organization of workers or employees

formed mainly to _ Negotiate with the employers on various employment related issues

27. ORIGIN & GROWTH OF TRADE UNIONMOVEMENTIndustrialization brought about new

economic and social order in societies. TU emerged as a result of industrialization in new social

orderFirst workers union in India under the leadership of Mr Lokhande was developed in

1890Beginning of labor movement in the modern sense started after the outbreak of World War

IEconomic. Political and social conditions influenced the growth of trade union movement in

India.Establishment of ILO helped the formation of TUs in the countryIn 1920 AITUC( All India Trade

Union Congress) was formed- the 1st All India trade unionWorld War I I brought splits in AITUC.

Efforts of Indian National Congress resulted in the formation of INTUC( Indian National Trade Union

Congress)Socialists separated from AITUC formed HMS( Hind Mazdoor Sabha) in 1948Some other

unions were also formed. They were BMS ( Bhartiya Majdoor Sangh) in1955, HMP( Hind Majdoor

Panchayat) in 1965, CITU( Centre of Indian Trade Union ) in 1970

28. PRINCIPLE OF TRADE UNION1. UNITY: Unity is strength2. Workers must not be discriminated

wrt EQUALITY: caste, creed, sex etc. Each worker should get equal pay for equal work3. Security of

their employment and their SECURITY: families must be safeguarded

For the benefits of members, resolve disputes in a mutually acceptable mannerProtect jobs of

members1. Cooperate with employers TRADE UNION Collective bargaining Represent members

to negotiate with employers, for better wages and conditions of employment1. Safeguard jobs 29.

OBJECTIVES OF A1.

30. OBJECTIVES OF A TRADE UNION activities4. Political - Support pro-union political parties5.

Social activities - Support members with recreation facilities and benefits for unemployment, illness,

retirement, death

Non-manual workersFor unskilled workers1. Staff union Same craft or occupation1. General

union 31. TYPES OF UNIONS1. Craft union

All members are from the same company regardless of occupation or jobSame industry,

regardless of skills, occupation or job4. House union (company or enterprise union) 32. TYPES OF

UNIONS4. Industry union


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Meet co-workers from other departments or companiesMore secured with collective agreement3.

Social need Collective bargaining with employer2. Job security 33. WHY WORKERS JOIN

UNIONS1. Higher wages and better working conditions

Serve other membersColleagues are members6. Self-fulfillmentAttend training courses organized

by union5. Peer pressure34. WHY WORKERS JOINUNIONS4. Upgrading of skills

35. OBJECTIVES/IMPORTANCE OF TRADE UNIONSWages & salaries Policy matter but

differences in implementation, so comes the role of trade unionWorking conditions safeguarding

workers health: Lighting & ventilation, sanitation, rest rooms, safety equipments ( hazards free

atmosphere , drinking water, refreshments, working hours, leave & rest, holidays with pay, j ob

satisfaction, social security benefits and other welfare measuresDiscipline Protect workers from

victimization by management- transfers, suspensions, dismissals etcPersonal policies Fighting

against improper implementation of personnel policies wrt recruitment, selection, promotion, transfer,

training etc..Welfare Solving difficulties of workers through collective bargaining wrt sanitation,

hospitals, quarters, schools, colleges and other basic amenitiesEmployer- employee relations

Bureaucratic attitude and unilateral thinking of mgmt may lead to conflicts Trade unions go for

constant negotiations for industrial democracy and peace.

36. Negotiating machinery Based on give and take principle, negotiations continue till parties reach

an agreement. Protect interests of workers through collective bargaining.Safeguarding organizational

health Methods evolved for grievance redressal, techniques adopted to reduce absenteeism and

labor turnover. upgrading skills- attend training courses organized by unions

37. ACTIVITIES OF TRADE UNIONECONOMIC: Improved economic status, shorter working day,

improvement in living and working conditions, better health & safety standards, upgrading welfare

facilities, reducing inequalities- both internally & externallyPOLITICAL: Seeking / obtaining political

power through political affiliations, lobbying activities to influence the cause of labor and legislations,

participating & representing workers on bipartite forums, developing revolutionary ideologies among

workers, protesting against Govt. decisionsSOCIAL: Initiating & developing workers education

system, organizing welfare & recreational facilities, providing monitory and other help during period of

strike and economic distress, running cooperative welfare schemes and societies, hosing needs/

community development, organizing cultural functions & social welfare programmesNATIONAL /

INTERNATIONAL LEVEL: Representing workers at the national level on advisory committees,

associating with national federations for unity & solidarity, Raising funds in case of national /

International calamities or tragedies

38. FEATURES OF AN EFFECTIVE TRADE UNIONInternally democraticHave a strong

leadershipExhibit a responsibility towards their worker membersCommitted to promote industrial

peace and harmonyInclined towards collective bargaining that is collaborative and not

competitrivePossess financial securityAdaptable to change


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39. INDUSTRIAL DISPUTE AND INDIVIDUALDISPUTEIndustrial dispute means any dispute or

difference between employers and employers, or between employers and workmen or between

workmen and workmen, which is connected with employment or non-employment or the terms of

employment .The dispute has to be between plurality of workman and employerIndividual workman

cannot raise an industrial dispute

40. INDIVIDUAL DISPUTE DEEMED AS INDUSTRIALDISPUTE 1965 amendment to I.D ACT and

insertion of 2A. Where any employer discharges, dismisses, retrenches or otherwise terminates the

services of an individual workman, any dispute or difference between that workman and his

employer.shall be deemed to be an industrial dispute notwithstanding that no other workman nor

any union of workmen is a party to the dispute. This definition is not applicable to disputes short of

termination

41. FORMS OF UNREST/DISPUTESSTRIKES: A strike is spontaneous and concerted refusal of

work and withdrawal of labor from production temporarily. It is a collective stoppage of work for

pressurizing their employers to accept certain demands.TYPES OF STRIKES:SYMPATHETIC

STRIKE: To show sympathy with workers in other industriesGENERAL STRIKE: Strike by all or most

of the unions in an industry or a regionUNOFFICIAL STRIKE: Strike undertaken without the consent

of the unionsSECTIONAL STRIKE: Refusal of a section of a given class of workers to perform their

normal dutiesBUMPER STRIKES: to paralyze the industry firm by firmSIT DOWN /TOOL

DOWN/PEN DOWN: Strike when unions plan strike and workers cease to perform but do not leave

the place of work:SLOW DOWN STRIKE: Go-slow tactic, workers do not stop working but dot

perform at their normal paceLIGHTNING STRIKE: Workers may go on strike without notice or at very

short notice with an element of surpriseHUNGER STRIKE: To gain sympathy from public and get

noticed by employer workers may decide to forego food for a specified period. Such non-violent

protests generally bring moral pressure on employers

42. FORMS OF UNREST/DISPUTESLOCK-OUTS:It is the counterpart of strike.It is the weapon

available with employer to close down the factory til l the workers agree to resume work on the

conditions laid down by employer.If it is impossible to meet the demands of workers, employers may

decide o go for lock-outAn employer may also pull down the shutters so as to bring psychological

pressure on the workers to agree to his conditions or face the closure of unitGHERAO:Gherao means

to surroundGroup of workers initiate collective action aimed at preventing members of he

management from leaving the office. This can happen outside the premises tooPersons who atre

under gherao are not allowed to move for a long time, sometime even without food or waterNational

commission on labor has refused to accept it as a form of industrial protestPICKETING and

BOYCOTTWhile picketing workers carry/display signs ,banners and placards( In connection with

dispute), prevent others from entering the place of work and persuade others to join the strikeBoycott

aims at disrupting the normal functioning of an enterprise, Through forceful and negative behavioral

acts, strikers prevent others not to cooperate with employer


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43. MANAGEMENT ACTION TO COUNTER STRIKESEMPLOYERS ASSOCIATION:Employers

may form their unions to collectively oppose the working class and put pressure on trade

unionsLOCKOUT:It is the counterpart of strike.An employer may close down the place of

employment temporarily. It is very powerful weapon available with employer to pressurize workers till

they agree to resume work on the conditions laid down by employer.If it is impossible to meet the

demands of workers, employers may decide o go for lock-outAn employer may also pull down the

shutters so as to bring psychological pressure on the workers to agree to his conditions or face the

closure of unitTERMINATION:Employer may resort to suspension or disciplinary action leading to

termination of workers on strike. The list of employees so suspended or dismissed may be circulated

to the other employer so as to restrict their chances of getting employment with other employers.

44. CHANGING ROLE / PUBLIC PERCEPTIONTRADE UNIONSChange in the attitude of unions

towards management, Industry, Govt. and economyUnions becoming increasingly matured,

responsive and realistic Gone are the days of frequent strikes, bandhs, gheraoes and violenceUnions

are reconciled to economic reforms. The accent is on opposing the adverse impact of reforms and

not the reformsDiscussion among trade union circles is now on issues like productivity, TQM,

Technology, competition, MNCs, exports etc..Unions aware of the Right Sizing and feel the need for

suplus labor fat to be shedDays when unions were affiliated with political parties are gone by. Today

thrust is on de- politicization of unionsExperience of politically free unions is pleasant, reinforcing the

belief that farther the unions are from politics, more advantageous it is for them

45. Workers association in our country is highly fragmented and the consequence is multiplicity of

unions, which weakens the bargaining strength of employees.One of the defects of trade union

movement in India has been the phenomenon of outside leadership. The fault of outside leadership

lies with trade Union Act, 1926 itself. The act permitted outside participation to the extent of 50% of

the strength of office bearers in a union.Trade Unions are at cross roads. Their membership is

declining, Their political support is waning, public sympathy is receding, their relevance itself is at

stakeManagements on the other hand are on the offensive. They are able to force unions to accept

terms and conditions. Workers,officers and managers are mercilessly terminated in the name of

restructuring, downsizing etcProfessionalisation of trade unions movement is another trend

witnessed, they are trying to upgrade their leadership quality. Topics lie IT, strategic planning,

diversity, networking and productivity etc now form inputs in training programmes organized for union

leaders

46. TRADE UNIONISM IN INDIA TODAYUnionization according to industry/region/state70,000

registered trade unions , many not regisered9 central unions, all affiliated to political parties2 % of the

union force unionizedPSUs: Industrial level collective bargaining in coal/steel, enterprize level

elsewherePrivate sector: Plant level collective bargainingUnion density according to the size of of

industryCraft unions in Govt transport sectorUnionization in India under recessionTwin battle against

Inter Union Competition and assertive management


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47. MAJOR PROBLEMS FACED BY TRADE UNIONSIN INDIAOutside or political

leadershipMultiplicity of trade unionsSmall size of unionsLow membershipUneven growthPoor

financial positionLow level of knowledge of labor legislationFear of victimization

48. TRADE UNION ACT (1926)It legalizes the formation of trade unions by allowing employees the

right to form and organize unions and also strengthen bargaining power of workersAct aims to

provide law for the registration of trade unions and get it registered under the actPermits any seven

persons to form a unionOBJECTIVESLay down conditions governing the registration of trade

unionsDefines obligations of trade unionsPrescribe rights and liabilities of a registered trade

unionSTATUS OF A REGISTERED UNIONIt becomes a body corporateIt gets a common sealIt can

buy and hold movable and immovable propertyIt can enter into contracts with othersIt can sue and be

sued in its name

49. TRADE UNION ACT (1926)REGISTRATION:A trade union formed with at least 7 members may

apply for registration with following documentsA copy of the rules of trade unionName, occupation

and addresses of membersName of trade union and address of its office Office Bearers of the trade

unionsIn case already in operation- submit statement of accounts/assets and liability

statementOBLIGATIONS: It should have a name, clearly laid down objective, membership list readily

available, purpose for which funds shall be utilized, members to be the actually working persons ,

Honorary/temporary office bearers, conditions for benefits/fines, conditions under which rules shall be

amended, manner in which office bearers shall be appointed, safe custody of funds and manner in

which trade union shall be dissolvedRIGHTS AND LIABILITIES Section 15 of the Act provides for

certain obligations and liabilities of registered unionsIt also stipulates the purpose for which funds can

be utilizedTHE AMALGAMATION OF TRADE UNIONS:Any two or more registered unions may get

amalgamated together as one trade union

50. INDUSTRIAL DISPUTE ACT (1947)Ever expanding complex multi product/project companies

with diverse and conflicting interests of workmen and employers, growing labor consciousness,

resulting in strikes and lockouts, lead to the outcome of Industrial dispute Act, 1947Main provisions of

the Act are:Settlement machinery -Provides suitable machinery for investigation, just, equitable and

peaceful settlement of industrial disputes and aims to provide justice both to employers and workmen

- Collective bargaining, NegotiationAims at promoting security, amity and good relations between

employer and employee or between employers and workmen or among workmenPrevent illegal

strikes and lockouts and explains the contingencies when these can be lawfully resorted to or when

these can be declared illegal or unlawful.Provide conditions and relief to workmen in the matters of

lay-offs, retrenchment, dismissals and victimization Last in first out in a retrenchment case or specific

reasons in case of othersProvides conditions under which an industrial unit can be closed down 60

days notice to be given of intention to close down any undertaking Compensation to workmen in case

of closing downGet the workmen the right of collective bargaining and promote conciliationLists down

unfair labor practices on the part of both parties introduced in 1984


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51. MACHINARY FOE SETTLEMENT OF INDUSTRIALDISPUTESKEY PROVISIONS OF ID

ACT:COLLECTIVE BARGAINING:It is a technique by which disputes as to conditions of employment

are resolved amicably, by agreement rather than coercionNEGOTIATIONCONCILIATION AND

MEDIATION: It is facilitated negotiation, essential in public utility services, Binding on parties to the

disputesARBITRATION:Voluntary Arbitration: agreement between workman and management, Send

copy to the Govt and conciliation officer, publication of agreementADJUDICATION

52. Compulsory Adjudication LC, IT, NT Reference by the Appropriate Government Sec. 10(1) Award

Sec. 18(3) of ID Act S. 2-A, 33-A Publication of awardConciliation (if successful Judicial review - Art.

226 or Settlement) Art. 136 Sec. 18(3) of INDUSTRIAL The I D act DISPUTES Voluntary Arbitration

10-A Award18(2) & 18(3) Judicial review - Art. 226 or Art. 136 Collective BargainingIf successful

settlement Sec. 18(1) of ID Act

53. PUBLICATION OF AWARDSPublication is mustTime duration of 30 days is directoryAward

comes in to operation 30 days after publicationTribunal to recall the award

Collective bargaining begins after employer recognizes the union that claims to represent the

specific group of workers.union is able to honor the agreement.1. Recognition of union by

employer Unions have to be stable for collective bargaining to be effective Workers and

employers are free to form their own associations to represent their interests.1. Stability of union 54.

CONDITIONS FOR SUCCESSFUL BARGAINING1. Freedom of association

Employment laws to ensure process takes place in an orderly manner.Relationship affected and

process becomes tense and difficult if any party used unfair practices such as victimization.6.

Supportive legal system Both parties must be willing to resolve differences to reach an

agreement.5. Mutual respect 55. CONDITIONS FORSUCCESSFUL BARGAINING4. Good faith

56. NEGOTIATIONSProcess depends on these factors: 1. Subject matter to be discussed 2. Persons

involved 3. Circumstances under which the discussion is held.A Typical Negotiation Process begins

with each party stating its position.As discussion progresses, each party adjusts its demands to seek

a mutually acceptable agreement.

Parties sign a written statement on what have been agreed.Parties look for possible adjustment or

compromise.1. Reaching an agreement Each party presents its case.1. Exchange and compromise

Each party must know what it wants.1. Presentation 57. STEPS IN NEGOTIATION1. Preparation

ArbitrationMediationConciliation58. WAYS TO SETTLE DISPUTESImpasse: settlement cannot

be reachedImpasses may be solved by these alternatives:

Conciliator does not impose a solution but works with the parties to enable them to come to an

agreement.Conciliator meets parties separately or together to exchange information, clarify issues

and settle misunderstanding. Impartial third party helps the two parties to reach a mutually

acceptable settlement. 59. WAYS TO SETTLE DISPUTESConciliation


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Arbitration gives some people the impression that they did not give in to the other party but fought

all the way to the Arbitration Court.Some prefer arbitration as the responsibility for reaching

agreement is made by a neutral party (quite often, appointed by the government e.g. Arbitration

Court). Third party settles the dispute by making an independent decision for the two parties. 60.

WAYS TO SETTLE DISPUTESArbitration

Final agreement is made by the two parties themselves.Mediator makes recommendations for the

two parties to consider. Impartial third party helps to reach a mutually acceptable agreement. 61.

WAYS TO SETTLE DISPUTESMediation

Trade Union : formation, meaning, types, objectives

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Transcript of Trade Union : formation, meaning, types, objectives