Industrial relations & TU

Factors affecting IR and various aspects of TUs


Factors affecting IR
Institutional factors Economic factors Technological factors Psychological factors Political and legal factors Global factors


Institutional factors
HR policies and practices Organizational climate and culture and value

systems Adaptability to change Codes of conduct Collective bargaining agreements Labour unions Employers’ organizations/ federations


Economic factors
Type of ownership: public or private limited,

Whether domestic or MNC, Govt. or private sector Nature and composition of the workforce The source of labour Labour market status Disparity of wages between groups Level of unemployment


Technological factors
Work methods Type of technology Rate of technology change Ability of organizations and people to cope

with change
Since these factors have a direct influence on

employment status, wage level, collective bargaining process in an organisation.


Psychological factors
Owners’ attitude Perception of the workforce Workers’ attitude towards work Their motivation, interest, dissatisfaction

and boredom leading from man-machine interface.
These have a great impact on job and

personal life factors and hence indirectly impact IR

Political and legal factors
Prevalent Political philosophy Attitude of government The ruling party/ ies ideology Labour laws and The legal framework for IR Changes in the above framework Role of political factions in TUs


Global factors
Role of ILO International relations Newer formats of business


Trade Unionism

The why and how

A union is An association either of employees or employers or of independent workers Relatively permanent formations with the legal authority to represent workers, Formed for securing economic and social benefits for members


Trade Unions
management positions normally

not part of the union but still responsible for employee performance, budgets & profits the goals & objectives of the union influenced by membership


Motivation to Join Unions


Motivation to Join Unions…..Cntd.


Objectives of Labor Unions
Wages and salaries Job security factors Working conditions Discipline issues Personnel policies Welfare of workers: sanitation,

hospitals, quarters, education etc. Negotiating machinery Safeguarding health and interest of the industry

What do unions do?
The main service a union provides for its

members is negotiation and representation. There are other benefits people get from being members of trade unions. Negotiation Representation Information and advice Member services


Negotiation 1. Negotiation is where union representatives discuss with management issues which affect people working in an organisation. 2. Pay, working hours, holidays and changes to working practices are the sorts of issues that are negotiated.


Representation 1. Trade unions also represent individual members when they have a problem at work. 2. If the problem cannot be resolved amicably, the matter may go to an industrial tribunal. 3. People can ask their union to represent them at industrial tribunals. 4. Most cases that go to industrial tribunals are about pay, unfair dismissal, redundancy or discrimination at work. 5. Unions also offer their members legal representation. 6. Normally this is to help people get financial compensation for work-related injuries


Information and advice

1. Unions have a wealth of information which is useful to people at work. 2. They can advise on a range of issues like how much holiday you are entitled to each year, how much pay you will get if you go on maternity leave, and how you can obtain training at work.


Member services During the last ten years, trade unions have increased the range of services they offer their members. These include: • Education and training - Most unions run training courses for their members on employment rights, health and safety and other issues. • Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt. • Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed


Classification of Functions
Militant or protective or intra-mural: include protecting the worker’s interest through collective bargaining and collective action such as strikes, gheraos etc. Fraternal or extramural: providing financial and nonfinancial assistance to workers during the periods of strikes and lock-outs, provision for education etc. Political functions: affiliating union to political parties, collecting donations, seeking political help for TU actions, and providing feedback for changes in legal framework.


The Labor Organization Process
Workers Seek Collective Representation Union Begins The Organizing Process Management Labor

Representation Election is Held

Collective Bargaining For A Contract

Contract Administration

Employer Tactics Opposing Unionization

Stressing favorable employer-employee

relationship experienced without a union. or working conditions the employees may enjoy strikes, union dues, abuses of legal rights. Use statistics to show that unions indulge in large numbers of illegal activities.

Emphasize current advantages in wages, benefits, Emphasize unfavorable aspects of unionism:

Proactive HR measures


Impact of Unionization on Managers
Challenges to Management Prerogatives
 Management prerogatives versus union

participation in decision-making in the work place.
Loss of Supervisory Authority
 Constraints on management in directing and

disciplining the work force by terms of the collective bargaining agreement.


Problems and Weaknesses of Trade Unions:
Uneven growth, Multiplicity of unions Outside leadership Indifferent Attitude of workers Lack of education May not welcome change, Strike on Illogical

basis Undue demands relating to wages Militant activities Political involvement


Types of Unions: Classification based on trade
Craft unions  Unions that represent skilled craft workers Industrial unions
 Unions that represent all workers—skilled,

semiskilled, unskilled—employed along industry lines

Employee associations  Labor organizations that represent various groups of professional and white-collar employees in labor-management relations.

Types of Unions: Classification based on representation
Qualified union
total employees
 Unions having at least 5% of membership of

Primary Unions

 Having membership of at least 15% of the

employees in an undertaking

Representative Union

 Having a membership of not less than 25% of

the total employees as members in an undertaking


Employers Response
 Decide what the organizations

response is going to be  I.e.. counter campaign, union acceptance, union avoidance, union substitution?  Prepare to hire labour relations specialist if required  seek legal advice and conduct training sessions to ensure management/supervisors are aware of legal responsibilities etc.

Unfair Labor Practices
Engaging or

encouraging illegal strikes failing to represent employees fairly



All of the organized activity of wage-earners to better their own conditions their own conditions either immediately or in the more or less distant future.” Labour movement implies in some degree, a community of outlook, it is an organization, or rather many forms of organizations based upon the sense of common status and a common need for mutual help. A trade union is an essential basis of a labour movement for without cannot exist, because trade unions are the principal schools in which the workers learn the lesson of self-reliance and solidarity. The trade union movement on the other hand, started after 1918, when the workers formed their associations to improve their conditions. It is, thus, a part of the ‘labour movement’, which is a much wide term.


Why the Trade Union Movement?

 The main elements in the development of trade unions of

workers in every country have been more or less the same.

 The

setting up of large-scale industrial units, created conditions of widespread use of machinery, new lines of production, and brought about changes in working and living environment of workers, and concentration of industries in large towns.

 It was this labour protest on an organized scale, through the

support of some philanthropic personalities, that organized labour unions came to be formed.


Growth and Development of the Trade Union Movement:
Social Welfare Period (1875-1918)
 The development of industries led to large-scale production on the one hand and

social evils like employment and exploitation of women and child labour and the deplorable workable conditions, the government’s attitude of complete indifference in respect of protection of labour from such evils, on the other. rest at noon; iii. Working hour no longer than 6.30 p.m., which should cease at sunset; iv. The payment to injured worker until they recovered together with suitable compensation, if they are permanently disabled. and growth of the industrial labour movement are:

 The memorial demanded: i. a complete day of rest every Saturday; ii. Half an hour’s

 According to Pandey, the important factors which have helped in the emergence

 While the economic hardships of workers have been present as a latent force, the

impetus for the growth of labour movement is provided by the major political currents, particularly movement for national independence. philanthropists and social workers who generally came from classes higher in economic and social status.

 The failure of workers’ initial attempts to organize led them to seek the help of


Early Trade Union Period (1918-1924)
 The year 1918 was an important one for the Indian trade union movement.  The industrial unrest that grew up as a result of grave economic difficulties created

by war. The rising cost of living prompted the workers to demand reasonable wages for which purpose they united to take resort to collective action.

 The swaraj movement intensified the movement, widened the gulf between the

employers and the employees and brought about a mass awakening among the workers demanding racial equality with their British employers.

 The success of the Russian Revolution of 1917 created a revolutionary wave of

ideas and a new self-respect and enlightenment, and added momentum to the feeling of class-consciousness among laborers.

 The establishment of the I.L.O., in 1919, gave dignity to the working class and also

an opportunity to send a delegation to the annual conference of this body.

 Immediately

after the war many Indian soldiers in the British army were demobilized and into the labour market.

 The non-co-operative movement of Gandhiji during 1920-21 and his support to the

demands of industrial labour also greatly influenced the working class movement.


Left-Wing Unionism Period (1924-1934)
 In 1924, a violent and long-drawn-out strike by

unions led to the arrest, prosecution, conviction and imprisonment of many communist leaders. The rapid growth of the trade unionism was facilitated by several factors, such as:

 The growth of anti-imperialist national movement;  The brutal violence and repressive measures let

loose by the British government, particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate arrests and imprisonment of national leaders and Satyagrahis, the face of falling real wages during the post-war period

 The phenomenal profits earned by the capitalists in


Trade Union’s Unity Period (1935-1938)
 In mid-thirties the state of divided labour movement was

natural thought undesirable and soon after the first split, attempts at trade union unity began to be made through the efforts of the Roy Group on the basis of ‘a platform of unity’. costly for the Indian working class. In 1933, more than 50,000 workers in Bombay city were thrown out of employment. evidenced by the 1937 general elections.

 The division in the Indian labour movement was proving very

 The unity efforts were synchronized by a popular upheaval as

 According to Punekar, “During the decade 1930-40 Indian

trade unionism was a divided house and the average industrial worker kept himself aloof from organized action.”


Second World War Period (1939-1945)
 The Second World War, which broke out in September 1939, created new strains in the united trade union


 Hence, again a rift took place in 1941 and the Radicals left the AITUC with nearly 200 unions with a

membership of 3, 00,000 and formed a new central federation known as the Indian Federation of Labour.

 During war-time certain factors helped to enhance the status of the trade unions in the country, namely, The

government as well as employers launched a number of labour welfare measures with a view to increase production of war materials and other essential goods and maintain high profits.

 Recognition to trade unions was accorded by many employers. This fact gave amoral strength to the unions.  Ban was placed on the strikes and lockouts, during war-time, under the Defense of India Rules 81-A, and all

disputes had to be referred to adjudication and their awards were enforced.

 A Tripartite Labour Conference was convened in 1942, for the first time, to provide a common platform for

discussions and mutual understanding between the labour and the employers.


The Post-Independence Period (From 1947 to-date)
 As pointed out earlier, when attempts to restructure the AITUC

failed, those believing in the aims and ideals other than those of the AITUC separated from the organization and established the Indian National Trade Union Congress (INTUC) in May, 1947. in the field of labour have found it very difficult to co-operate any longer with the AITUC which has repeatedly been adopting a course completely disregarding, or even in opposition to the declared policy and advice of the Indian National Congress. union movement free from domination by government and political parties and the methods to be employed were to be peaceful, legitimate and democratic.”

 It reads: “Congressmen in general and particularly those working

 The HMS was launched ostensibly with a view to “keep the trade

 In 1958, the HMS and the UTUC reached an agreement to create

a joint front against the AITUC which was working inroads in their membership.


 The post-war period has been made by the trade union movement in India.

The most important factors being:

 The constant inflow of outside and international influences;  The pressure of trade union rivalries, often based on political or ideological


 Government’s Industrial Relations Policy with its provision for compulsory

adjudication machinery; trade unions;

 The enactment of labour laws conferring special privileges on registered

 Desire of workers to unite for safeguarding their interest especially to face

harder conditions for labour such as retrenchment, lay-off, etc.;

 Attempts made by some employers to set up unions under their influence.


Present Scenario of the Trade Union Movement
 The Indian trade unions have come to stay now not as ad

hoc bodies or strike committees but as permanent features of the industrial society.

 The

unions succeeded in organizing Central Union Federations which help in the determination of principles, philosophy, ideology and purposes of the unions and give some sense of direction to the otherwise scattered and isolated large number of unions. voices are heard by the government and the employers; they are consulted on matters pertaining to improvement in conditions of work health and safety, job security, wages, productivity, all matters concerning the interests of labour. The splitting up of unions and formation of new unions having sympathies with political parties have permitted unions operating at different levels.

 The unions have achieved a remarkable status where their

 The trade union rivalries have become sharper in free India.


Suggestions for Healthy growth of Unions
One Union Per Industry Paid Union Officials Development of Internal Leadership Recognition of Trade Unions Improved Financial condition


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