Industrial relations has become one of the most delicate and complex problems of modern industrial society.
Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). Concept of Industrial Relations: The term Industrial Relations comprises of two terms: Industry and Relations . Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged . By relations we mean the relationships that exist within the industry between the employer and his workmen. The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises. Industry: Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services
with a view to satisfy human wants or wishes whether or not any capital has been invested for the purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or profit. Thus, an industry is a whole gamut of activities that are carried on by an employer with the help of his employees and labors for production and distribution of goods to earn profits Employer: An employer can be defined from different perspectives as:a person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons. a person who directly engages a worker/employee in employment. any person who employs, whether directly or through another person or agency, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed. As per Industrial Disputes Act 1947 an employer means:in relation to an industry carried on by or under the authority of any department of [the Central Government or a State Government], the authority prescribed in this behalf, or where no authority is prescribed, the head of the department; in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;
Employee: Employee is a person who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business. An employee is any individual employed by an employer. A person who works for a public or private employer and receives remuneration in wages or salary by his employer while working on a commission basis, piece-rates or time rate. Employee, as per Employee State Insurance Act 1948, is any person employed for wages in or in connection with work of a factory or establishment to which the act applies. In order to qualify to be an employee, under ESI Act, a person should belong to any of the categories: o those who are directly employed for wages by the principal employer within the premises or outside in connection with work of the factory or establishment. o those employed for wages by or through an immediate employer in the premises of the factory or establishment in connection with the work thereof o those employed for wages by or through an immediate employer in connection with the factory or establishment outside the premises of such factory or establishment under the supervision and control of the principal employer or his agent. o employees whose services are temporarily lent or let on hire to the principal employer by an
immediate employer under a contract of service (employees of security contractors, labor contractors, house keeping contractors etc. come under this category). Employment: The state of being employed or having a job. Labor market:
The market in which workers compete for jobs and employers compete for workers. It acts as the external source from which organizations attract employees. These markets occur because different conditions characterize different geographical areas, industries, occupations, and professions at any given time.
Industrial relations is used to denote the collective relationships between management and the workers. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct. In the words of Lester, "Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and co-operation; and between conflicting interests of the individual, the group and the community . The National Commission on Labor (NCL) also emphasize on the same concept. According to NCL, industrial relations affect not merely the interests of the two participants- labor and management, but also the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform. In fact, industrial relation encompasses all such factors that influence behavior of people at work. A few such important factors are below: Institution: It includes government, employers, trade unions, union federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. Characters: It aims to study the role of workers unions and employers federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc.
policies. procedures. organizations of protests through methods like revisions of existing rules. social security. union reorganization. health.. hours of works. collective bargaining. rules. are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation. Employees: Workers seek to improve the terms and conditions of their employment. leave with wages. A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand.
Government: The central and state government influences and regulates industrial relations through laws. Management can also affect workers interests by exercising their right to relocate. Workers generally unite to form unions against the management and get support from these unions. workers participation in the industrial relations schemes. and safety disciplinary actions. regulations.Methods: Methods focus on collective bargaining. dispute settlements machinery working of closed shops. hearing of labor courts. productivity and development of the employee and generates employee loyalty and mutual trust Actors in the IR system:
Three main parties are directly involved in industrial relations: Employers: Employers possess certain rights vis-à-vis labors. close or merge the factory or to introduce technological changes.
. agreements. awards of court ad the like. issues concerning with workers participation in management. Contents: It includes matter pertaining to employment conditions like pay. lay-off. They have the right to hire and fire them. grievance redressal machinery.
Industrial Relation System
An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation. dismissals retirements etc. They also want to share decision making powers of management. etc. They exchange views with management and voice their grievances. industrial relations. and between them and the State on the other. laws relating to such activities. tribunals etc. discipline procedure. regulations governing labor welfare. It also includes third parties and labor and tribunal courts.
complete unity of thought and action is the main achievement of industrial peace. it means that the employer.SCOPE: The concept of industrial relations has a very wide meaning and connotation. Collective bargaining 2. resulting in the maximum possible production. It naturally affects production because mighty co-operative efforts alone can produce great
. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. to other industries if the products are intermediaries or inputs. to consumers and workers. Every worker feels that he is a co-owner of the gains of industry. It increases the place of workers in the society and their ego is satisfied. industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres. The scope or industrial relations is quite vast. employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. It helps promoting co-operation and increasing production. There is uninterrupted flow of income for all. to exporters if these are export goods. i. The main issues involved here include the following: 1. In other words. which may transgress to the areas of quality control. Unfair labor practices Importance of Industrial Relations The healthy industrial relations are key to the progress and success. if these are goods of mass consumption
Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes.e. lockouts. go-slow tactics. Standing orders 4. In the narrow sense. Machinery for settlement of industrial disputes 3. In its wider sense. High morale Good industrial relations improve the morale of the employees. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. to increase production. gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. price fixation and disposition of profits among others. Smooth running of an industry is of vital importance for several other industries. This means. The resources are fully utilized. Workers participation in management 5. Strikes. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same. continuous employment for all from manager to workers. Their significance may be discussed as under Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. marketing.
Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. improved living and working conditions. material and machines are reduced to the minimum and thus national interest is protected. aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions. so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. On the other hand. Objectives of Industrial Relations: The main objectives of industrial relations system are:To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. It will help increase production. workers must recognize employer s authority.results. Unitary Perspective In unitarism. To avoid industrial conflict or strife and develop harmonious relations. Thus. it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. Socialization of industries by making the state itself a major employer Vesting of a proprietary interest of the workers in the industries in which they are employed. Wastages of man. If the twin objectives of rapid national development and increased social justice are to be achieved. To improve the economic conditions of workers in the existing state of industrial managements and political government. said fringe benefits. viewed as one
. To eliminate or minimize the number of strikes. there must be harmonious relationship between management and labor. employees and Government to work out a new relationship in consonance with a spirit of true democracy. the organization is perceived as an integrated and harmonious system. lockouts and gheraos by providing reasonable wages. It will naturally have impact on production because they recognize the interest of each other. which are an essential factor in the productivity of workers and the industrial progress of a country. It also results in increased efficiency of workers. An economy organized for planned production and distribution. The industrial peace lies ultimately in a transformed outlook on the part of both. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It is the business of leadership in the ranks of workers.
multi-skilled and ready to tackle with efficiency whatever tasks are required. From employer point of view. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable.from the perspective of the unitary framework .happy family.are seen as arising from lack of information. Trade unions are deemed as unnecessary and conflict is perceived as disruptive. The personal objectives of every individual employed in the business should be discussed with them and integrated with the organization s needs. Consequently. Employee participation in workplace decisions is enabled. They should anticipate and resolve this by securing agreed procedures for settling disputes. This helps in empowering individuals in their roles and emphasizes team work. inadequate presentation of management's policies.Realistic managers should accept conflict to occur. hand-inhand. thus working together. unitarism has a paternalistic approach where it demands loyalty of all employees. From employee point of view. unitary approach means that: Staffing policies should try to unify effort. Union recognition should be encouraged and union representatives given scope to carry out their
. The organization's wider objectives should be properly communicated and discussed with staff. the role of management would lean less towards enforcing and controlling and more toward persuasion and coordination. There is a greater propensity for conflict rather than harmony. and all members of the organization share the same objectives. interests and purposes. Employees should feel that the skills and expertise of managers supports their endeavors. Line managers should take ownership of their team/staffing responsibilities. Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed could in fact be channeled towards evolution and positive change. Trade unions are deemed as legitimate representatives of employees. Pluralistic-Perspective In pluralism the organization is perceived as being made up of powerful and divergent sub-groups management and trade unions. Staff-management conflicts . Individuals should be business process improvement oriented. innovation. its role is that of a further means of communication between groups of staff and the company. quality and improvement groups etc. inspire and motivate employees. discretion in problem-solving. Reward systems should be so designed as to foster to secure loyalty and commitment. The emphasis is on good relationships and sound terms and conditions of employment. Furthermore. If a union is recognized. Independent external arbitrators should be used to assist in the resolution of disputes. unitary approach means that: Working practices should be flexible. towards the shared mutual goals. The implications of this approach include: The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation. A core assumption of unitary approach is that management and staff. creativity.
representative duties Comprehensive collective agreements should be negotiated with unions Marxist Perspective view of industrial relations is a by product of a theory of capitalist society and social change. Marx argued that: Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism. Capitalism would foster monopolies. Wages (costs to the capitalist) would be minimized to a subsistence level. Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident. This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background. It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Bargaining Form And Tactics A collective bargaining process generally consists of four types of activities- distributive bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining. Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one party s gain is another party s loss. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, distributive bargaining tends to be more competitive. This type of bargaining is alsoknown as conjunctive bargaining Integrative bargaining: This involves negotiation of an issue on which both the parties may gain, or at least neither party loses. For example, representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. Here, both the parties are trying to make more of something. In general, it tends to be more cooperative than distributive bargaining. This type of bargaining is also known as cooperative bargaining. Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management. When there is a backlog of bitterness between both the parties, attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It develops a bargaining environment and creates trust and cooperation among the parties.
Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management. Even within the union, there may be differences between groups. For example, skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. Within the management also, there may be differences. Trade unions maneuver to achieve consensus among the conflicting groups Characteristics Of Collective Bargaining It is a group process, wherein one group, representing the employers, and the other, representing the employees, sit together to negotiate terms of employment. Negotiations form an important aspect of the process of collective bargaining i.e., there is considerable scope for discussion, compromise or mutual give and take in collective bargaining. Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions of employment and the ways in which certain employment-related issues are to be regulated at national, organizational and workplace levels Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labor management relations over a period of time in an enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and understanding serve as the by products of harmonious relations between the two parties. It a bipartite process. This means there are always two parties involved in the process of collective bargaining. The negotiations generally take place between the employees and the management. It is a form of participation. Collective bargaining is a complementary process i.e. each party needs something that the other party has; labor can increase productivity and management can pay better for their efforts. Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other. Collective Bargaining is continuous process. It enables industrial democracy to be effective. It uses cooperation and consensus for settling disputes rather than conflict and confrontation. Collective bargaining takes into account day to day changes, policies, potentialities, capacities and interests. It is a political activity frequently undertaken by professional negotiators. Collective Bargaining Process Collective bargaining generally includes negotiations between the two parties (employees representatives and employer s representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Often employees
are represented in the bargaining by a union or other labor organization. The result of collective bargaining procedure is called the collective bargaining agreement (CBA). Collective agreements may be in the form of procedural agreements or substantive agreements. Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes This will normally include procedures in respect of individual grievances, disputes and discipline. Frequently, procedural agreements are put into the company rule book which provides information on the overall terms and conditions of employment and codes of behavior. A substantive agreement deals with specific issues, such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of work, etc. In many companies, agreements have a fixed time scale and a collective bargaining process will review the procedural agreement when negotiations take place on pay and conditions of employment. The collective bargaining process comprises of five core steps: 1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employer s representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required. 2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached. 3. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as brainstorming . The exchange of messages takes place and opinion of both the parties is sought. 4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when what ifs and supposals are set forth and the drafting of agreements take place. 5. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.
Importance Of Collective Bargaining Collective bargaining includes not only negotiations between the employers and unions but also includes the process of resolving labor-management conflicts. Thus, collective bargaining is, essentially,
Collective bargaining leads to industrial peace in the country 2. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry. 4. Importance to society 1. thereby. National level 2. Collective bargaining increases the morale and productivity of employees. Effective collective bargaining machinery strengthens the trade unions movement. The discrimination and exploitation of workers is constantly being checked. 3. Company/enterprise level Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation between union
. It increases the strength of the workforce. Sector or industry level 3. It establishes rules which define and restrict the traditional authority exercised by the management. It acts as a method of introducing civil rights in the industry. 3. It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Importance to employees Collective bargaining develops a sense of self respect and responsibility among the employees.a recognized way of creating a system of industrial jurisprudence. Levels of Collective Bargaining Collective bargaining operates at three levels: 1. Importance to employers 1. It helps in securing a prompt and fair settlement of grievances. the management should be conducted by rules rather than arbitrary decision making. Collective bargaining plays a vital role in settling and preventing industrial disputes. 2. 4. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. as a result of which the chances for conflicts are reduced. increasing their bargaining capacity as a group. Moreover. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. unilateral actions by the employer are also discouraged. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. It restricts management s freedom for arbitrary action against the employees. that is. It results in establishment of a harmonious industrial climate which supports which helps the pace of a nation s efforts towards economic and social development since the obstacles to such a development can be reduced considerably. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.
includes a range ofbargaining patterns. These policies directly affect workers.confederations. Voice in decisions affecting workers The economic security of employees is determined not only by the level of wages and duration of their employment. Unions also offer their members legal representation. Bargaining may be either broadly or narrowly defined in terms of the industrial activities covered and may be either split up according to territorial subunits or conducted nationally. In many workplaces there is a formal agreement between the union and the company which states that the union has the right to negotiate with the employer. So. holidays and changes to working practices are the sorts of issues that are negotiated. discuss with management. promotion and transfer. The evaluation criteria for such decisions may not be fair. Normally this is to help people get financial compensation for work-related injuries or to assist people who have to take their employer to court. If an employee feels he is being unfairly treated. the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interests. central employer associations and government agencies. Negotiation Negotiation is where union representatives. unions are said to be recognized for collective bargaining purposes. Their primary function is to protect the interests of workers against discrimination and unfair labor practices. As a supplementary type of bargaining. working hours. There may be a difference of opinion between management and union members. the issues which affect people working in an organization. trade unions have increased the range of services they offer their members. which aims at the standardization of the terms of employment in one industry. he can ask /the union representative to help sort out the difficulty with the manager or employer. Objectives Of Trade Unions Trade unions are formed to protect and promote the interests of their members. but also by the management s personal policies which include selection of employees for lay offs. retrenchment. Member services During the last few years. These include:
. Pay. Sectoral bargaining. it emphasizes the point that bargaining levels need not be mutually exclusive. Trade unions negotiate with the employers to find out a solution to these differences. often taking into account macroeconomic goals. In these organizations.
The third bargaining level involves the company and/or establishment. Trade unions are formed to achieve the following objectives: Representation Trade unions represent individual workers when they have a problem at work. It aims at providing a floor for lower-level bargaining on the terms of employment.
People can get discounts on mortgages.g. the militant functions of trade unions can be summed up as: To achieve higher wages and better working conditions To raise the status of workers as a part of industry To protect labors against victimization and injustice Fraternal Functions Another set of activities performed by trade unions aims at rendering help to its members in times of need. they adopt an approach and put up a fight with the management in the form of go-slow tactics. which may be called fraternal functions. (ii) Fraternal functions Militant Functions One set of activities performed by trade unions leads to the betterment of the position of their members in relation to their employment. health and safety and other issues.o Education and training . They also arrange for legal assistance to its members. some unions give help with personal matters. Some of the older unions offer financial help to their members when they are sick or unemployed Functions Of Trade Unions Trade unions perform a number of functions in order to achieve the objectives.Most unions run training courses for their members on employment rights. Thus. and other recreational facilities. Hence. they undertake many welfare measures for their members. o Welfare benefits . secure better conditions of work and employment. gherao. get better treatment from employers. o Financial discounts . o Legal assistance . boycott. These functions can be broadly classified into three categories: (i) Militant functions. like housing. The aim of such activities is to ensure adequate wages.As well as offering legal advice on employment issues. depend on the availability of funds. strike. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications.. Trade unions try to foster a spirit of cooperation and promote friendly industrial relations and diffuse education and culture among their members. These activities. wills and debt. When the unions ffail to accomplish these aims by the method ofcollective bargaining and negotiations. the fraternal functions of trade unions can be summed up as: To take up welfare measures for improving the morale of workers
. library. in-door and out-door games. etc. insurance and loans from unions. and also on their competent and enlightened leadership. if necessary.One of the earliest functions of trade unions was to look after members who hit hard times. reading-rooms. which the unions raise by subscription from members and donations from outsiders. these functions of the trade unions are known as militant or fighting functions. and improving their efficiency. They take up welfare measures for improving the morale of workers and generate self confidence among them. Besides. etc. school for the education of children. Thus. Some trade unions even undertake publication of some magazine or journal. e. these.
They provide the advice and support to ensure that the differences of opinion do not turn into major conflicts. All the
. Thus. Greater Bargaining Power The individual employee possesses very little bargaining power as compared to that of his employer. Minimize Discrimination The decisions regarding pay. Some important social responsibilities of trade unions include: promoting and maintaining national integration by reducing the number of industrial disputes incorporating a sense of corporate social responsibility in workers achieving industrial peace Reasons For Joining Trade Unions The important forces that make the employees join a union are as follows: 1. The better course for him is to join a union that can take concerted action against the employer. Trade unions help in accelerated pace of economic development in many ways as follows: by helping in the recruitment and selection of workers. They also play an important educational role. This imposes a great financial and emotional burden upon the worker. transfer. etc. work. there are chances of favoritisms and discriminations. It is not practicable to continually resign from one job after another when he is dissatisfied. The personal relationships existing between the supervisor and each of his subordinates may influence the management. by inculcating discipline among the workforce by enabling settlement of industrial disputes in a rational manner by helping social adjustments. Decisions taken through the process of collective bargaining and negotiations between employer and unions are more influential. Workers coming from different backgrounds may become disorganized. Workers have to adjust themselves to the new working conditions. unsatisfied and frustrated. The central function of a trade union is to represent people at work.To generate self confidence among workers To encourage sincerity and discipline among workers To provide opportunities for promotion and growth To protect women workers against discrimination Importance Of Trade Unions The existence of a strong and recognized trade union is a pre-requisite to industrial peace. Trade unions are a part of society and as such. Unions help them in such adjustment. promotion. Seeking a healthy and safe working union activity. Trade unions play an important role and are helpful in effective communication between the workers and the management. have to take into consideration the national integration as well. The threat or actuality of a strike by a union is a powerful tool that often causes the employer to accept the demands of the workers for better conditions of employment 2. A trade union can compel the management to formulate personnel policies that press for equality of treatment to the workers. organizing courses for their members on a wide range of matters. are highly subjective in nature. But they also have a wider role in protecting their interests. If he is not satisfied with the wage and other conditions of employment. he can leave the job. the new rules and policies.
Sense of Belongingness Many employees join a union because their co-workers are the members of the union. opinions and complaints of the workers to the management. 4. A trade union provides such a forum where the feelings. injury. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers. he often has a very difficult time at work. 5. It can also transmit the feelings. On the other hand. those who are members of a union feel that they gain respect in the eyes of their fellow workers. Sense of Security The employees may join the unions because of their belief that it is an effective way to secure adequate protection from various types of hazards and income insecurity such as accident. 6. They can also discuss their problem with the trade union leaders. Unions help in betterment of industrial relations among management and workers by solving the problems peacefully. This has the effect of minimizing favoritism and discrimination. unemployment.labor decisions of the management are under close scrutiny of the labor union. ideas. Sense of Participation The employees can participate in management of matters affecting their interests only if they join trade unions. They can influence the decisions that are taken as a result of collective bargaining between the union and the management. if he does not. the wages were also low and general economic
. The first phase (1850 to1900) During this phase the inception of trade unions took place. All of us wish to share our feelings. At times.
7. The collective voice of the workers is heard by the management and give due consideration while taking policy decisions by the management. Trade Unionism In India The trade unionism in India developed quite slowly as compared to the western nations. Betterment of relationships Another reason for employees joining unions is that employees feel that unions can fulfill the important need for adequate machinery for proper maintenance of employer-employee relations. an employee joins a union under group pressure. ideas and opinions with others. In addition. the working and living conditions of the labor were poor and their working hours were long. 3. Capitalists were only interested in their productivity and profitability. illness. ideas and opinions of the workers could be discussed. During this period. Indian trade union movement can be divided into three phases. Platform for self expression The desire for self-expression is a fundamental human drive for most people. etc. Similarly the workers also want the management to listen to them.
As a result. For instance Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. supervisors and managers are also organized by the trade unions. These unions federated into industrial union known as Textile Labor Association in 1920. By 1949. The United Trade Union Congress The working class movement was also politicized along the lines of political parties. who constitute about 60 per cent of the workforce. These strikes taught workers to understand the power of united action even though there was no union in real terms. the First National Trade union organization (The All India Trade Union Congress (AITUC)) was established. Trade union law came up with the efforts of Mr. The second phase (1900 to 1946) This phase was characterized by the development of organized trade unions and political movements of the working class. not included in the formal sector) which constitutes the rest 32 per cent of the workforce. The urban informal sector (which includes the growing software industry and other services. and 3. The All India Trade Union Congress. Small associations like Bombay Mill-Hands Association came up by this time. Many strikes took place in the two decades following 1880 in all industrial cities. At Ahmedabad. occupational unions like spinners unions and weavers unions were formed.In 1920.
. The Indian labor markets consist of three sectors: 1. Besides workers. The rural workers. Many of the leaders of this organization were leaders of the national Movement. In order to regulate the working hours and other service conditions of the Indian textile laborers. During 1928. All India Trade Union Federation (AITUF) was formed. employment of child labor was prohibited The growth of trade union movement was slow in this phase and later on the Indian Factory Act of 1881 was amended in 1891. Insurance and Petroleum industries. A strike was launched by these unions under the leadership of Mahatma Gandhi who turned it into a satyagrah. white-collar employees. many unions came into existence in the country. growing 2% annually. and 4. under the guidance of Mahatma Gandhi. The third phase began with the emergence of independent India (in 1947). the Indian Factories Act was enacted in 1881. Between 1918 and 1923. The Indian National Trade Union Congress. 3. Trade unions in India The Indian workforce consists of 430 million workers. 2. as for example in the Banking. The AITUC is the trade union arm of the Communist Party of India. In 1926.conditions were poor in industries. N N Joshi that became operative from 1927. The Hindu Mazdoor Sangh. 2. The partition of country affected the trade union movement particularly Bengal and Punjab. Organized sector. four central trade union organizations were functioning in the country: 1. which employs 8 per cent of workforce.
are also facing pressures to follow decentralization. the 40 year old policy of protectionism proved inadequate for Indian industry to remain competitive as the lack of flexibility posed a serious threat to manufacturersbecause they had to compete in the international market.
. Hind Mazdoor Sabha (HMS) 6. but now in sectors where it was not so. However. pharmaceuticals. Employers opted for workforce reduction. Now. introduced policies of voluntary retirement schemes and flexibility in workplace also increased. United Trade Union Congress (UTUC) and 12.LS) FIGURES REGARDING TRADE UNIONS Table Showing Growth Of Trade Unions and Membership is following below
Growth of trade unions and membership Industrial Relation Policy Prior to 1991. These labor laws were protective in nature and covered a wide range of aspects of workplace industrial relations like laws on health and safety of labors.Lenin Sarani (UTUC . National Front of Indian Trade Unions (NFITU) 9. the industrial relations system in India sought to control conflicts and disputes through excessive labor legislations. the industrial relations policy began to change. Hind Mazdoor Kisan Panchayat (HMKP) 5. industrial disputes and the like. National Labor Organization (NLO) 10. Bharatiya Mazdoor Sangh (BMS) 3. Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition e. globalization brought major changes in industrial relations policy in India. The changes can be summarized as follows: Collective bargaining in India has mostly been decentralized. in other industries where the demand for employment is increasing are experiencing employment growths. these protectionist policies created an atmosphere that led to increased inefficiency in firms. Indian Federation of Free Trade Unions (IFFTU) 7. Centre of Indian Trade Unions (CITU) 4. Trade Unions Co-ordination Centre (TUCC) 11. The basic purpose of these laws was to protect labors. On the other hand. All India Trade Union Congress (AITUC) 2. With the coming of globalization. United Trade Union Congress .At present there are twelve Central Trade Union Organizations in India: 1.g. layoffs and retrenchment policies. Thus. With the advent of liberalization in1992. the policy was tilted towards employers. Indian National Trade Union Congress (INTUC) 8. over employment and inability to introduce efficacy.
These new policies are difficult to implement in place of old practices as the institutional set up still needs to be changed. Employment rate: It is ratio of employed persons to the total labor force. Labor markets are based on the supply and demand of labor in a country or a specific location that are able and willing to work. Training and skill development is also receiving attention in a number of industries. wage and salary earners. The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions. hours. Another trend is that the employers have started to push for internal unions i. multiskills. It is the percentage of working age people who have jobs or are employed. no outside affiliation. banking. Casual Workers: Casual workers are those workers who are generally employedby small entrepreneurs on daily or weekly basis on a low wage rate. Labor force participation rate: It is the number of persons in the labor force as a percentage of the working-age population. The skills of such persons are underutilized. Unemployed persons: The persons in the labor market who are without work. HR policies and forms of work are emerging that include.In the expansionary economy there is a clear shortage of managers and skilled labor. It also includes the employers who compete for workers. Underemployed persons: Workers who are employed. etc. The working-age population is the population above a certain reference age like15 years old and over or 15 64. job rotation etc. Under pressure some unions and federations are putting up a united front e. whether in terms of compensation. for example paying low wages to a highly skilled employee. Underemployment also refers to a situation where a major portion of labor force is unemployed.g. that is. HRM is seen as a key component of business strategy. but not in the desired capacity.
Unemployment rate: It is the ratio of unemployed people to the total labor force.e. casual workers and unemployed. They are not entitled to any paid holiday leave or paid sick leaves. Labor force can be categorized as self-employed. without paid employment or self-employment and are currently either available for work or are seeking any work are considered to be unemployed. especially banking and information technology Labor Market Related Terms Labor Market: A labor market is defined as a pool of all potential workers who compete for jobs. or level of skill and experience. usually a day or a week.
. variable compensation. especially in multi-national companies. Labor Force: Labor force includes all persons classified either as employed or unemployed during a specified period of time.
The labor force in year 2006 has grown up to 509. Only about 9 percent of the total workforce is in the organized sector.5 million between 1977-78 and1993-94 showing an annual growth rate of 2. Contractual and hence stable hired employment (with the same employer and/or in the same job) on a regular basis is covered in the description wage and salary workers. The labor force has grown from 276. either in formal or informal sector or in private households.3 million to 385. therefore. This category includes those getting time wage as well as those receiving piece wage or salary and paid apprentices. both full time and part time.farm enterprises and getting in return salary or wages on a regular basis and not on the basis of daily or periodic renewal of work contract. self-employed are most loosely connected to labor market because of the possibilities of work-sharing and work spreading in a self-employed enterprise.1%. These workers. The regular salaried/wage employees are those working in others farm or non. Of these. During the year 1999-2000. include persons
. or employed as casual wage laborers. The employees in an enterprise can be either regular salaried/ wage employees or casual wage employees who are normally engaged on a day today basis. wage and salary earners.3 million out of which 60% are in agriculture. Non-contractual casual laborers have the closest connection to labor market on almost day-to day basis.Underemployment rate: It is the ratio of underemployed to either total labor force or total employment Labor Market In India The Indian labor market can be categorized into three sectors: Rural workers . casual workers and unemployed. self-employed. This category of persons may. The chart below describes the estimated increase in the number of labors from 1977-78 to 2004-05. Persons who are engaged in their own farm or non. who constitute about 60% of the workforce Organized of the formal sector. the remaining 91 percent are in the unorganized sector. and Urban unorganized or informal structure which represents the 32% of the workforce. Same is the case with those unemployed who are actively seeking work.
Labor force can be divided into four categories: self employed workers. subsisting on wage employment.farm enterprises are defined as self employed. the workforce was estimated to be 407 million. The casual wage workers both in public work and other types of work don t have any job security or social security. are informal workers. One-third of rural households are agricultural labor households. that constitutes about 8% of the workforce. 12% are employed in industries and the residual 28% are in services. In 2004-05 the labor market consisted of 430 million workers and has grown up to 500 million in 2006
Two-third of India s workforce is employed in agriculture and rural industries.
70.74 million workers were in rural areas whereas 19.21 million are full time and 9. The share of informal employment has risen from 92 per cent (nearly 276 million out of 300 million) in 1983 to 93 per cent in the 1999-2000. and other employed in organized and unorganized enterprises that are not eligible either for paid. out.5 million part times.2000 was of the order of 406 million. About 7 % of the total work force is employed in the formal or organized sector (all public sector establishments and all non-agricultural establishments in private sector with 10 or more workers) while remaining 93% work in the informal or unorganized sector.01 million enterprises employing 39. Among the workers engaged in the informal sector. Out of 397million workers in 1999-2000. According to the results of the National Sample Survey conducted in 1999-2000.
. total work force as on 1. self employed persons in un-organized sector and private households. The table given below classifies labor force across male-female and rural-urban dimensions. 1999-2000 also covered non-agricultural enterprises in the informal sector in India. Percentage of female workers to the total workers is 20. 1993-94 and 1999-2000. it is estimated that 369 million workers (nearly 93 per cent) are employed in the unorganized segment of the economy whereas only 28 million workers (7 per cent) are engaged in the organized sector. It is evident that throughout this period a large portion of the workforce in India is found to be employed in the unorganized sector. 1987-88. there were 44.workers. The unorganized / informal employment consists of causal and contributing family workers. their share being around 62 per cent (lines 10 to 12 of Table).engaged regularly on an hourly basis.1. The NSS 55th round. Among these 25. The Incidence of unemployment is higher in the urban than in the rural labor force with nearly 48 per cent of the total unemployed persons coming from aggregate urban labor force whose share in total (rural plus urban) work force is 22 per cent.35 million enterprises and 79. The share of unorganized employment in the economy has displayed remarkable steadiness over the years. temporary workers.34 million enterprises with 39. The table below describes major employment trends for the organized and unorganized sector for the years 1983. a major chunk of labor force is employed in the unorganized sector. It is clear that Self-employment and casual labor statuses are more prevalent among rural than urban labor force and among female than male workers.71 million workers employed thereof in the non-agricultural informal sector of the economy. showing only a marginal increase from 24 million in 1983 to 28 million in 1999-2000. Those reporting wage and salary earning dominate in the urban labor force. sick or annual leave or for any social security benefits given by the employer. As per that survey.2 percent.97 million workers in the urban area.
Organized and Unorganized Labor In India. etc. It is clear that employment opportunity in the organized sector has remained more or less stagnant.
. The public sector employs about 180.The largest numbers of informal workers are in agriculture. 98.4% and 0. the employment in public sector decreased by 1 percent while private sector increased by 2.7 lakh persons while the private sector employs 84. that is.
State wise analysis reflects that only Punjab and Kerala recorded a decrease of more than 3 percent. The negative growth of employment was recorded in public sector while private sector showed an increasing trend. textiles etc.34 thousand are public sector enterprises while 121. Since 2004. Decrease in employment above 1 percent was observed in Madhya Pradesh Uttar Pradesh. it was 264. In the matter of savings the share of household sector in the total gross domestic saving mainly unorganized sector is about three fourth. Himachal
.4% has been recorded in the number of establishments in the organized sector. Out of these. an increase of 1.2%.84 percent of the employment in agriculture is informal. land transport. In fact. were also subjected to a negative growth of 0.5 percent.9% followed by Quasi Govt. 172. the highest numbers of informal employees are in retail trade. recorded a negative growth of 2.43 lakh. This means there has been an increase of 0.52 lakh persons.77 thousand industrial establishments. The Local Bodies and State Govt. the unorganized sector plays a vital role in terms of providing employment opportunity to a large segment of the working force in the country and contributes to the national product significantly. Local Bodies and State Govt. construction. The branch wise analysis of the public sector data reveals that Central Govt. As on the 31st March. shows maximum negative growth in employment followed by Quasi Govt. In the non-agricultural sector. The same trend continued in 2005 also. savings and capital formation. The contribution of the unorganized sector to the net domestic product and its share in the total NDP at current prices has been over 60%. with a negative growth of 2. Employment In India The organized sector in India consists of 293. in which the Central Govt. Chandigarh and Andhra Pradesh.43 thousand are in private sector. 2005 the total employment in the organized sector was estimated to be 264. An increase of more than 3 percent in employment was observed in Goa. Thus unorganized sector has a crucial role in our economy in terms of employment and its contribution to the National Domestic Product.58 lakh while in 2004.1% in employment.
68 per cent in 2001.3 lacs in 1999 to 106.9 percent in Eastern Zone in employment Women Employment Women workforce constitutes an integral part of total workforce in India.1 percent in North-Eastern Zone and 0.1 percent and by 2.8 percent
Some Vital Statistics The number of women job seekers has increased from 99.5 26.
While analyzing the figures zone wise. In 1981. a majority is employed in agriculture and some are employed in cottage industries. Assam and Nagaland.2per cent in 2004.21 lacs (58per cent) in the public sector and 20. West Bengal. Table 1: Number of Women Job Seekers Year Number of Women (in lacs) Percentage to total 1999 99. highest decrease of 1.Pradesh and Gujarat and 1 percent or more in Pondicherry.6 2000 104.6 percent was seen in Central Zone followed by 1 percent in Northern Zone and 0.3 24.6per cent in 1999 to 26. women from rural areas are greater in number as compared to the urban women. in the rural as well as urban areas.9 2002 106. On 31st march 2004.6 percent in Southern Zone whereas the highest increase was 2 percent in Western Zone followed by 1.16 Lacs women employees were engaged in the organized sector. out of which 29.5 percent in the private sector during 2004-2005. In the women workforce.95 lacs (42per cent) in the Private Sector. Employment of women in public sector increased by 1. 2005 a total number of 50. The participation of women in the labor force has always been lower than that of men.3per cent).8 25.5 25.3per cent) and Northern Zone (1.0
.0 25.3 2001 108. In the urban areas. Karnataka. As on the 31st March.1 lacs in 2004.2per cent).9 2003 107.73 per cent in 1991 and 26. The zone wise analysis showed an increase of 8 percent in North-Eastern Zone. Uttaranchal. The work participation rate for women has increased significantly. Thus the percentage of women job seekers to the total job-seekers has also increased from 24. women workers are primarily employed in the unorganized sectors.67 per cent which increased up to 22. work participation rate for women was only 19. women constituted 19 per cent of the total workforce. followed by Western Zone (5. Eastern Zone (3per cent) and Central Zone (1. Only Southern Zone registered a marginal dip of 0. Amongst rural women workers.
Hunting. As on 31st March. The work participation rate for women was 25.4per cent in 2004.0 Number of Educated Women Job Seekers as on December 2004 was 7537. This shows an improvement over 22. Discipline can be positively related to performance.1 26.2004 106.1 2002 7921. discipline decisions taken by trained supervisors are considered fair by both employees and managers.3per cent to 70.2 per cent in Transport. Forestry & Fishing.4 26.34 lacs women workers employed in the organized sector (Public and Private Sector). higher will be the effectiveness of discipline
.7 27. 1. in 2005. there were about 49. Educated Women at the end of 2004 accounted for 25. 2004. the manufacturing industry faced a dip of 1.4 26.67 per cent in 1981. An increase of 7.3 lacs) while minimum number of women job-seekers are in Rajasthan (1. Effective Discipline Discipline is the key to success.7 per cent in Electricity. Training of supervisors is necessary: Supervisors and mangers need to be trained on when and how discipline should be used. Social and Personal Services and 1. Women workers constituted 19 per cent of the total organized sector employment in the country.3 lacs) and Tamil Nadu (15. Self discipline makes employee realize what is required at work.1 lacs) women job-seekers followed by West Bengal (19. Gas & Water. other industries reflected an increase in women employment.5 per cent in Construction.68 per cent in 2001.6 per cent in Mining and Quarrying. 2.5 per cent in Agriculture. and not at the employee personality. Table 2: Number of Educated Women Job Seekers Year Number of Women Percentage to total 2000 7911. Theodore Roosevelt has said With self-discipline almost everything is possible .6 2004 7537.8 The state wise analysis reflects that Kerala has the maximum (21. It is the bridge between goals and accomplishments. as compared to 18. Moreover.4 per cent in the previous year.73 per cent in 1991 and 19.0 lacs).8 per cent was registered in Wholesale and Retail Trade followed by 5.1 2001 8525. It is necessary to provide training on counseling skills as these skills are used while dealing with problem employees. 5.1per cent in women employment. Effective discipline should be aimed at the behavior. 1.4 per cent in Community.2 per cent in Financing. This is because the reason for discipline is to improve performance rather than punishing the employee Factors necessary for effective disciplinary system include: 1.6 28.8 2003 8032.8per cent of the total educated job-seekers. The percentage of educated women job seekers among the total women job seekers has gone down from 73. Insurance Real Estate & Business Services.7 thousand. As far as industries are concerned. 1. On the other hand. The greater the uniformity.7 25. 5. Storage & Communications. Centralization of discipline: Centralized means that the discipline decisions should be uniform throughout the organization.
Notification of conduct that may result in discipline: Actions that lead to misconduct can be listed and documented so the employees are aware of such actions. Both overpenalization and under-penalization are considered to be unfair for the problem employee. 4. Discipline shall be flexible and consistent: The manager administering discipline must consider the effect of actions taken by other managers and of other actions taken in the past. Impersonal discipline: Discipline should be handled impersonally. Moreover. The longer time lag between the misconduct offense and the disciplinary action will result in ineffectiveness of the discipline. Discipline shall be progressive: Discipline system should be progressive in nature. 3. All these action plans must be communicated to the employees. 11. 5. reprimands. In a progressive discipline approach the severity of actions to modify behavior increases with every step as the employee continues to show improper behavior. in advance. 10. there are two approaches to discipline employees. regarding the same. Disciplinary action should be prompt: The effective discipline should be immediate. This will unable them to claim that they have not been notified. two employees who have committed the same offense should be equally punished. 6. that is. every company opts for a discipline policy which describes the approach it will follow to handle misconduct Broadly defined. 9. They are: Positive Discipline Approach Progressive Discipline Approach Code Of Discipline In Industry
. Inconsistent discipline leads to confusion and uncertainty. Consistent discipline helps to set limits and informs people about what they can and cannot do. an internal fairness is to be maintained. Discipline should be fair: The disciplinary decision should be fair enough for the employee. To manage discipline among employees. written record keeping and written notification to the employees. This will ensure uniformity and fairness of the system and will minimize the arbitrariness of the disciplinary system. Documentation: Effective discipline requires accurate. Approaches to Discipline Handling employee misconduct is a very critical task to be performed by the senior managers. Information regarding penalties: The employer should define the penalties and other actions like warnings.procedure. discharge and dismissal well in advance. Thus less chance will be left for the employee to say the he did not know about the policy. 8. Review discipline decisions: The disciplinary decisions must be reviewed before being implemented. 7. Misconduct and other offensive behaviors often lead to decreased levels of productivity as they affect the individual performance of the employees. The advantage of this approach is that employees can t take it for granted. Managers should limit their emotional involvement in the disciplinary sessions. Managers should try to minimize the ill feelings arising out of the decisions by judging the offensive behavior and not by judging the person.
The Code is based on the following principles: There should be no strike or lockout without prior notice. intimidation and violations of rules and regulations governing industrial relations. victimization or go slow tactics that they will avoid litigation. It specifies various obligations for the management and the workers with the objective of promoting cooperation between their representatives. No unilateral action should be taken in connection with any industrial matter. To ensure better discipline in industry. These actions can b summarized as follows: Management and Union(s) agree that no unilateral action should be taken in connection with any industrial matter and that should be settled at appropriate level that the existing machinery for settlement of disputes should be utilized with the utmost efficiency that there should be no strike or lock-out without prior notice that neither party will have recourse to coercion. Employees should follow go slow tactics No deliberate damage should be caused to a plant or property Acts of violations. Avoid work stoppage in industry Secure the settlement of disputes and grievances by a mutually agreed procedure Avoiding litigations Facilitate a free growth of trade unions Eliminate all forms of coercion. that they will abide by various stages in the grievance procedure and take no arbitrary action which would by-pass this procedure. intimidation and coercion should not be resorted The existing machinery for the settlement of disputes should be utilized. Actions that disturb cordial relationships should be avoided. The basic objectives of Code of Discipline are to: Maintain peace and order in industry. sit-down and stay-in strikes and lock-outs that they will promote constructive co-operation between their representatives at all levels and as between workers themselves that they will establish upon a mutually agreed grievance procedure which will ensure a speedy and full investigation leading to settlement.To maintain harmonious relations and promote industrial peace. a Code of Discipline has been laid down which applies to both public and private sector enterprises. Promote constructive criticism at all levels of management and employment. and Management Agrees not to increase work-loads unless agreed upon or settled otherwise not to support or encourage any unfair labor practice such as discrimination and victimization of any
. intimidation. management and unions agree on not indulging into various actions.
5. Disclosure of information: The employees should not disclose the company information to third parties and other outside organizations. The financial records and unpublished data should be kept within the organizations and should not be spread outside the organization.
. The Code of Conduct policy of a company is determined on the basis of following factors: 1. 2. The significance of code of conduct is that each employee should behave and perform in a way that preserves the company values and commitments. damage to property and insubordination to take prompt action to implement awards. especially sexual harassments and verbal harassments. The code expects employees to conduct business with integrity and honesty. The employees should show truthfulness in actions throughout their tenure in the organization. settlements and decisions Factors Guiding Code Of Conduct The code of discipline and conduct communicates to the employees. agreements. it expects the employer to be an equal opportunity employer. No physical harassments like hitting or pushing are acceptable on part of employees. Harassment: The work environment should be free from all kinds of harassments. Honesty and integrity: The organization expects the employees to observe honesty and integrity and such conduct should be fair and transparent. Outside employment: Employees should not indulge in to any kind of concurrent employment without the prior knowledge of employer. 6. Confidentiality: Employees should protect company s confidential information. Conflict of interest: An employee should not indulge into other professions or services or other interests which might conflict with the interest of the company. However the employers should reveal the various policies of the organization to their employees and make them aware about the code of conduct and other policies. 4. 3. decision and orders to take appropriate disciplinary action against its officers and members in cases where enquiries reveal that they were responsible for precipitate action by workers leading to indiscipline Union agrees not to engage in any form of physical duress not to permit demonstrations which are not peaceful that their members will not engage or cause other employees to engage in any union activity during working hours to discourage unfair labor practices such as negligence of duty. This means personal interests should not overshadow organizational interests.employee to take prompt action for settlement of grievances and implementation of settlements. Moreover. awards. the expected behavior and the professional responsibilities.
Grievance resulting from inter-personal factors include o Poor relationships with team members o Autocratic leadership style of superiors o Poor relations with seniors
. (ii) working conditions. that is. unjust or inequitable. remuneration and gifts from outsiders.7. 8. a grievance may arise due to several factors such as: Violation of management s responsibility such as poor working conditions Violation of company s rules and regulations Violation of labor laws Violation of natural rules of justice such as unfair treatment in promotion. donations. intellectual property. Grievance resulting from working conditions include: o Poor safety and bad physical conditions o Unavailability of tools and proper machinery o Negative approach to discipline o Unrealistic targets 3. They are provided to them for business purposes and thus. Misusing company resources: Employees should not misuse company resources. Equal opportunity employer: This factor expects the employer to be an equal opportunity. no discrimination should be done on the basis of caste. Health and safety: An employer should provide a safe and healthy work environment to its employees. etc Various sources of grievance may be categorized under three heads: (i) management policies. color. and (iii) personal factors 1. should be used in a cost effective way. Grievance resulting from management policies include: o Wage rates o Leave policy o Overtime o Lack of career planning o Role conflicts o Lack of regard for collective agreement o Disparity between skill of worker and job responsibility 2. Proper cleanliness and lightening should be provided. gender. Payment and gifts: The employees should neither accept nor offer any kind of illegal payments. race. time and other facilities. In an organization. A health and safety committee can be set up by the employer consisting of representatives of workers as well. Grievance In Industry Grievance means any type of dissatisfaction or discontentments arising out of factors related to an employee s job which he thinks are unfair. 10. 9. religion or physical disabilities. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair.
If the chief executive also fails to redress the grievance. the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. Grievances are symptoms of conflicts in industry. This model
. Step-ladder policy Open door policy: Under this policy. Therefore. Without a grievance procedure. 1. On the other hand. If the employee is not satisfied with superior s decision. in bigger organizations. whenever an employee is confronted with a grievance. he presents his problem to his immediate supervisor. if the committee also fails to redress the grievance. then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties. management may be unable to respond to employee concerns since managers are unaware of them. then he discusses his grievance with the departmental head. Such a policy works well only in small organizations.o Conflicts with peers and colleagues It is necessary to distinguish a complaint from grievance. The departmental head discusses the problem with joint grievance committees to find a solution. However. The grievance procedures differ from organization to organization. it is believed that open door policy is suitable for executives. a formal grievance procedure is a valuable communication tool for the organization
Grievance Procedure Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance. Moreover. a model for grievance procedure was drawn up. Step ladder policy: Under this policy. top management executives are usually busy with other concerned matters of the company. GRIEVANCE PROCEDURE IN INDIAN INDUSTRY The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established grievance procedure for the country which would be acceptable to unions as well as to management. In the 16th session of Indian Labor Conference. Open door policy 2. However. because both may be important indicators of potential problems within the workforce. In this procedure. Therefore. then it may be referred to chief executive. A complaint is an indication of employee dissatisfaction that has not been submitted in written. operational employees may feel shy to go to top management. management should be concerned with both complaints and grievances. a grievance is a complaint that has been put in writing and made formal. the aggrieved employee has to follow a step by step procedure for getting his grievance redressed.
who has to give his decision within 3 days. He has to give his answer within 48 hours. conduct formal safety training. Health is the general state of well being. A work environment should enhance the well being of employees and thus should be accident free. the employer has to ensure safety and security of his employees. he can take the grievance to Grievance Committee. Security refers to protecting facilities and equipments from unauthorized access and protecting employees while they are on work. the aggrieved employee can take his grievance to head of the department. According to it.helps in creation of grievance machinery. The management must communicate its decision to the worker within 7 days STEP 4: If the grievance still remains unsettled. STEP 2: If the departmental representative fails to provide a solution. making employees aware about the health and safety policy of the company. The Grievance Committee makes its recommendations to the manager within 7 days in the form of a report. Safety refers to the act of protecting the physical well being of an employee. fire or diseases. It will include the risk of accidents caused due to machinery. etc. who is a representative of management. An HR manager can help in coordinating safety programs. workers representatives are to be elected for a department or their union is to nominate them. STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head. The supervisors and departmental heads are responsible for maintaining safe working conditions. the case may be referred to voluntary arbitration. It not only includes physical well being. safety and security are closely related to each other. Responsibilities of managers: Monitor health and safety of employees Coach employees to be safety conscious Investigate accidents Communicate about safety policy to employees Responsibilities of supervisors/departmental heads: Provide technical training regarding prevention of accidents Coordinate health and safety programs
. In organizations the responsibility of employee health and safety falls on the supervisors or HR manager. Health and safety form an integral part of work environment. The Model Grievance Procedure specifies the details of all the steps that are to be followed while redressing grievances. Employee Health and Safety For smooth functioning of an organization. An appeal for revision of final decision can be made by the worker if he is not satisfied with it. The final decision of the management on the report of Grievance Committee must be communicated to the aggrieved employee within three days of the receipt of report. These steps are: STEP 1: In the first step the grievance is to be submitted to departmental representative. but also emotional and mental well being. The terms health. Management has to specify the persons in each department who are to be approached first and the departmental heads who are supposed to be approached in the second step.
It is the interface between men and machines. Many organizational and individual issues emerge in management of employee health and safety. improper cleanliness. Problems of back ache. eye strain and headache arise due to long working hours spent in front of computers. 6. equipment layout. Moreover design of such machines and equipments also plays an important role in safety. But not all of the approaches focus on contribution of both work design and employee behavior to safety. cubicle arrangement. emergency stop buttons and other provisions help in reducing the accidents considerably. Engineering of Work Equipments and Materials: Accidents can be prevented in a way by proper placements of dangerous machines. Cumulative Trauma and Repetitive Stress: Cumulative trauma disorder occurs when same muscles are used repetitively to perform some task. inadequate ventilation. 2. rodents. A positive attitude towards work environment and other practices
. stench of adhesives and glues. Accident Rates and Individuals: An individual approach to safe environment helps in reducing the accident rates. This is generally because more problems are caused by careless employees than by machines or employer negligence. distance between work areas. 4. et al. Providing safety guards and covers on equipments. Employees encounter high levels of mental and physical stress also. Some of these factors include temperature. noise levels. Sick Building Syndrome: It is a situation in which employees experience acute health problems and discomfort due to the time spent in a building (particularly their workplace). Health & Welfare)1986 Issues in Employee Health & Safety Organizations frame many approaches to ensure health and safety of their employees. An organizational approach to safety is effective only when both the work design and employee behavior work in coordination towards it. Ergonomics is the study of physiological. and omics which means management of. and engineering design aspects of a job. Physical Work Settings: The physical settings of work affect the performance of employees to a great extent. Ergonomics: The term comes from the Greek word ergon. which means work. kinds of materials used. Other work setting factors include size of work area. Some factors that lead to sick buildings include poor air quality. They can be summarized as follows: 1. 5. Ergonomics is taken into consideration when designing the workstation for computer operators. This results in injuries of musculoskeletal and nervous system. including such factors as fatigue. tools. 3. lighting. et al. psychological. and placement of controls. and proper lighting affect job performance.Train employees on handling facilities an equipments Develop safety reporting systems Maintaining safe working conditions Legislations governing Occupational Health & safety in India * Factories act1948 * Mines act 1952 * Dock workers act(Safety.
recommendations for the award of certifications are made by the team and the certificate is granted to the organization by the concerned authorities. Labor welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries
.org. Also. If the application is accepted. they have to ensure that they are operating according to the IS 18001:2000 standard.bis. creation of industrial harmony through infrastructure for health. The organization has to apply at the nearest Regional Office of Bureau of Indian Standards in the prescribed proforma along with a questionnaire and application fee The application has to be signed by the Chief Executive Officer of the organization or any person who has been assigned by the CEO for this purpose. industrial relations and insurance against disease.promotes employee safety. Employee welfare includes monitoring of working conditions. However if the report does not meet all the requirements. accident and unemployment for the workers and their families. The welfare measures need not be in monetary terms only but in any kind/forms. This standard is known as IS 18001:2000 Occupational Health and Safety Management System.
Process of OH&S Management System certification * Source: Bureau of Indian Standards (BIS Home Page (http://www. For this purpose. Immediately after this. If the application is complete. Organizations willing to adopt OH&S Management System have to obtain a license for the same. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. it is accepted. Any OHS management system adopted by an organization should incorporate all the requirements specified in this standard. the applicant organization is asked to take corrective actions after which another audit is conducted. otherwise more information is sought from the applicant organization. an adequacy audit takes place and a preliminary visit (preaudit) is conducted by an audit team. manual or the documentation of OHS management system is to be submitted along with the application.
Occupational Health & Safety Management System The Bureau of Indian Standards has formulated a standard for Occupational health and safety management systems. If the report comes out to be satisfactory. initial certification audit takes place on the basis of which an audit report is prepared by the audit team. Once an application is received by the regional office of BIS.in/)) Employee Welfare Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. it is scrutinized for all the requirements.
cultural and material conditions of living of the workers. efficiency. provide social security and raise their standard of living. employees or by any social or charitable agency. medical care. etc are reduced to a greater extent by the welfare policies Labor Welfare Fund Labor welfare refers to all the facilities provided to labor in order to improve their working conditions. The very logic behind providing welfare schemes is to create efficient. Welfare measures may be introduced by the employers. services and amenities provided to workers for improving their health. The important benefits of welfare measures can be summarized as follows: They provide better physical and mental health to workers and thus promote a healthy work environment Facilities like housing schemes. In order to provide social security to such workers. 2. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining 3. medical benefits. and education and recreation facilities for workers families help in raising their standards of living. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. This makes workers to pay more attention towards work and thus increases their productivity. educational and recreational facilities to workers employed in beedi industry and non-coal mines and cine workers. Government has introduced Labor Welfare Fund to ensure assistance to unorganized labors. economic betterment and social status. are administered by Ministry of Labor.Labor welfare has the following objectives: 1. To make the workers happy and satisfied 3. The basic features of labor welfare measures are as follows: 1.
. To relieve workers from industrial fatigue and to improve intellectual. which are governed by different legislations. Majority of labor force in India is working in unorganized sector. The social evils prevalent among the labors such as substance abuse. government. To provide better life and health to the workers 2. 4. New welfare measures are added to the existing ones from time to time. 5. The purpose of these welfare funds is to provide housing. Workers take active interest in their jobs and work with a feeling of involvement and participation. Labor welfare schemes are flexible and ever-changing. The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. Five different welfare funds. Employers get stable labor force by providing welfare facilities. loyal and satisfied labor force for the organization. healthy. Labor welfare includes various facilities.
Employee Welfare Schemes Organizations provide welfare facilities to their employees to keep their motivation levels high.3/.1/. The Cine Workers Welfare Cess Act. Manganese Ore & Chrome Ore Mines Labor Welfare Cess Act. on every feature film submitted to the Chairman.respectively. 1972 The Iron Ore.1/. Manganese Ore & Chrome Ore between 50p to Re. This is presently Rs 2 per 1000 beedis with effect from 28th June 2000. The Iron Ore. This is Rs 20000 per feature film of Hindi and English and for regional films it is Rs 10000 per film with effect from 20th April 2000. Re. 1976 The Cine Workers Welfare Fund Act. Manganese Ore and Chrome Ore Mines Labor Welfare Fund Act.6/and Rs.to Rs. The
.25% ad valorem. manganese ore & chrome ore. Mica Mines Labor Welfare Fund Act. 1946 The Limestone and Dolomite Mines Labor Welfare Fund Act. The Limestone and Mines Labor Welfare Fund Act. 1981 provides for duty of cess.to Rs.with effect from 27th December 2000.1/-. Central Board of Film Certification. export of mica.5/. 1972 provides for the levy and collection of cess on Limestone and Dolomite as a duty of excise at such rate not exceeding one rupee per metric tone of limestone & dolomite.per thousand manufactured beedis. 1976 provides for levy of cess by way of excise duty on manufactured beedis from Re.5% ad valorem on export with effect from 1st November 1990. An explanation of the cess levied under different legislations is given below: Beedi Workers Welfare Cess Act. consumption of limestone & dolomite and consumption and export of iron ore.1/. feature films.to Rs.6/. provides for levy and collection of cess on all mica exported as duty of Customs not exceeding 6.The five legislations governing welfare funds are as follows: The Mica Mines Labor Welfare Fund Act. This is 4. at such rate not being less than one thousand rupees and not exceeding twenty thousand rupees. The rate of cess on Limestone and Dolomite is Re. 1981 Schemes under welfare funds provide assistance with respective to the following: Public health and sanitation Housing Recreational (including standard of living) Social security Educational facilities Water supply Transportation Medical facilities (prevention of diseases) Social security o Group Insurance Schemes for Beedi and Cine workers o Social Security under Mine Workers Welfare Fund Family welfare The welfare funds are raised by government by imposing cess on manufactured beedis. 1946. 1976 provides for levy and collection of cess on Iron Ore.
wash basins. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. 8. 6. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees. NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following schemes: 1. Harassment Policy: To protect an employee from harassments of any kind. Mines Act 1962. toilets. 5. Spittoons: In every work place. The non statutory schemes differ from organization to organization and from industry to industry STATUTORY WELFARE SCHEMES The statutory welfare schemes include the following provisions: 1. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. 9. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply. Adequate lockers are also provided to the workers to keep their clothes and belongings. statutory and non-statutory welfare schemes. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee. Washing places: Adequate washing places such as bathrooms. in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition. Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs 3. such as ware houses. 4. Paternity leave policies have also been introduced by various companies. 7. 5. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition. etc. Drinking Water: At all the working places safe hygienic drinking water should be provided. wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.employee welfare schemes can be classified into two categories viz. bathrooms. 2. health and welfare) 1986. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up 2. guidelines are provided for proper action and also for protecting the aggrieved employee. 10. Maternity & Adoption Leave Employees can avail maternity or adoption leaves.
. Facilities for sitting: In every organization. especially factories. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. 4. suitable seating arrangements are to be provided. These include provisions provided in industrial acts like Factories Act 1948. 3. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. store places. Dock Workers Act (safety.
political factors. The non economic factors will include victimization of workers.9% of disputes were caused because of indiscipline. indiscipline accounted for the highest percentage (36.4% were caused by retrenchment.6% in 2004 and 2005 respectively.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.2%.2% respectively. In 2002. 0. The economic causes will include issues relating to compensation like wages. A similar trend was observed in 2004 where indiscipline accounted for 40. which rose up to 36. During the year 2003.5% and 3.Work Load . and conditions for work. working hours. Wages and allowances: Since the cost of living index is increasing. allowances. while 2. 21.8% of disputes. 40. followed by cause-groups wage and allowance and personnel with 20. unjust layoffs and retrenchments. Causes Of Industrial Disputes The causes of industrial disputes can be broadly classified into two categories: economic and noneconomic causes. In 2002. Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes.4% of disputes.1% while those caused by retrenchment and layoffs were 2. In year 2005.Standing orders/rules/service conditions/safety measures . 7. wages and allowances accounted for 21. workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. leave and holidays without pay. and only 0. ill treatment by staff members. Miscellaneous: The miscellaneous factors include .
. bonus. wherein 11.4% and11.4% and 41. indiscipline etc. disease or injury or pregnancy. During 2004.4% of the disputes were because of leaves and working hours. Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes.Non-implementation of agreements and awards etc.6.6% of disputes were caused due to indiscipline respectively.4% respectively. Bonus: Bonus has always been an important factor in industrial disputes.4% during 2003 and during 2004 increased up to 26.4% and 0.Inter/Intra Union Rivalry . Indiscipline and violence: From the given table.9% in 2003. sympathetic strikes.Charter of Demands .6% of the disputes were caused by personnel.4% of disputes were caused by demand of higher wages and allowances. During the year 2002. This percentage was 20. 29. 6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness.2% and 0.2% of the disputes were caused by personnel.9%) of the total time-loss of all disputes. Similarly in 2004 and 2005. only 0. In 2003.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. a similar trend could be seen. it is evident that the number of disputes caused by indiscipline has shown an increasing trend. disputes caused by personnel were 14. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization. During 2002.6% of disputes were caused by retrenchment and layoffs. only 9. In 2005.
e. or a concerted refusal of any number of persons who are or have
.14 lakh mandays were lost due to work stoppages in 23 industrial disputes during January to March 2007. the total number of disputes was 1097 which fell by more than half to 440 in 2006.
On analyzing the data sector wise. More than 2. which might have affected its industrial output. To support this. In 1998.4 million mandays of work annually between 1998 and 2006. on an average. a strike is a cessation of work by a body of persons employed in an industry acting in combination. the country still witnessed some major strikes between 2004 and 2006. and Skumars factories and in SBI bank.It is being estimated that this trend will continue in 2007 as well. In the recent past. Though there has been a decline in the number of strikes..
Strikes A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. According to Industrial Disputes Act 1947. only 57 disputes were recorded in public sector which resulted in a wage loss of 79 Crores. In 2005. Escorts.Analysis Of Industrial Disputes The number of industrial disputes in country has shown slow but steady fall over the past ten years. like those in Honda. agriculture and mining and quarrying industries. 399 disputes were recorded in the private sector. The country. When workers collectively cease to work in a particular industry. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. lost 25. maximum number of disputes has been recorded in the manufacturing. the industrial unit of production equal to the work one person can produce in a day) lost due to disputes has not come down as significantly. Apollo. only 45 cases of disputes have been recorded during the first four months of 2007. However. In contrast to this. a deeper look at the data reveals that the number of mandays (i. This significant decline is attributed to the serious attempts made by industries to improve industrial relations with their workers. it is clear that the private sector has witnessed greater number of disputes as compared to the public sector. they are said to be on strike.
2. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. or a refusal under a common understanding of any number of such persons to continue to work or to accept employment . 4. a group of workers agree to stop working to protest against something they think is unfair where they work. General Strike: It means a strike by members of all or most of the unions in a region or an industry. house rent allowance. Causes of strikes: Strikes can occur because of the following reasons: Dissatisfaction with company policy Salary and incentive problems Increment not up to the mark Wrongful discharge or dismissal of workmen Withdrawal of any concession or privilege Hours of work and rest intervals Leaves with wages and holidays Bonus. They keep control over production facilities. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike. labors stop their work to enforce their economic demands such as wages and bonus. Sympathetic Strike: When workers of one unit or industry go on strike in sympathy with workers of another unit or industry who are already on strike. Provident fund and gratuity Retrenchment of workmen and closure of establishment Dispute connected with minimum wages TYPES OF STRIKE 1. Economic Strike: Under this type of strike. It may also be an extension of the sympathetic strike to express generalized protest by the workers. dearness allowance. In a strike. 3. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems. rather than on any one employer. Demands made by strikers can range from asking for higher wages or better benefits to seeking changes in the workplace environment. But do not work. Such a strike is also known
. Labors withhold their services in order to pressurize their employment or government to meet their demands. These strikes are usually intended to create political pressure on the ruling government. bonus and other facilities such as increase in privilege leave and casual leave. Sit down Strike: In this case. Firstly. a strike is a referred to as stoppage of work by a group of workers employed in a particular industry.been so employed to continue to work or to accept employment. In these kinds of strikes. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. workers do not absent themselves from their place of work when they are on strike. allowances like traveling allowance. profit sharing. This definition throws light on a few aspects of a strike. workers ask for increase in wages. it also includes the refusal of a number of employees to continue work under their employer. Secondly. it is called a sympathetic strike.
Slow Down Strike: Employees remain on their jobs under this type of strike. 7. but restrict the rate of output in an organized manner. all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the non-acceptance of their demands by the state government. However. it is perfectly legal. When only part of a trade union votes to strike. The purpose of picketing is: to stop or persuade workers not to go to work to tell the public about the strike to persuade workers to take their union's side
. 6. 5. Acc to Industrial Disputes Act 1947. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement. In 2004. Pickets are workers who are on strike that stand at the entrance to their workplace. They adopt go-slow tactics to put pressure on the employers. A lockout may happen for several reasons. They were protesting against some remarks allegedly made against them by an Assistant Commissioner Lockouts A lockout is a work stoppage in which an employer prevents employees from working. In June 1998. It is declared by employers to put pressure on their workers. This is different from a strike. which makes it very difficult for employer to defy the union and take the workers' places. PICKETING When workers are dissuaded from work by stationing certain men at the factory gates. all or a significant number of union members call in sick on the same day. but they refuse to work.as 'pen down' or 'tool down' strike. because they just use their sick leave that was allotted to them on the same day. Workers show up to their place of employment. If picketing does not involve any violence. such a step is known as picketing. the employer may declare a lockout until the workers end the strike. a significant number of advocated went on wildcat strike at the City Civil Court premises in Bangalore. Thus. the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work For example. if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive. Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions. lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him. They also refuse to leave. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. Sick-out (or sick-in): In this strike. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent workstoppages. in which employees refuse to work. They don t break any rules. a lockout is employers weapon while a strike is raised on part of employees. They do not stop work. the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike.
86 million man-days. 1. 426 strikes and 325 lockouts were observed which resulted in total time-loss of 28.825 strikes and lockouts were recorded. agriculture and mining and quarrying industries during 2005.6 million were lost to strikes and 13. During 2005.81 million man-days. financial intermediation. from which 10. in 2006 only 13. as compared to the statistics of 2005. More than 1.5 million to lockouts.76 million mandays were lost due to strikes and lockouts. The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent Analysis Of Strikes and Lockouts In 1990.4 per cent in 2005.1 million workdays were lost.76 million mandays. there has been a steep decline in the number of strikes and lockouts. There were 227 strikes in 2005. resulting in the loss of 10. West Bengal experienced the maximum instances of strikes and lockouts (19216) followed by Kerala (3619) and Rajasthan (19247). The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins. 24. The number and seriousness of strikes and lockouts have varied from year to year. there were only 154 strikes and 192 lockouts across the country. This continuous decline in strikes and lockouts indicates that the industrial relations in India are improving. Prohibition of Strikes and Lock-Outs
During 2000. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. As a result.3 million workers were involved in these labor disputes.
The number of strikes and lockouts.05 million mandays. Maximum time-loss was caused by 297 lockouts during 2003 which resulted in a timeloss of 27. As can be seen from the below chart.60 million man-days respectively. As compared to previous years. In January-September 2006.GHERAO Gherao in Hindi means to surround. was down by 4. Industrial disturbances were concentrated mainly in manufacturing (textile). which resulted in the time loss of 3. while the number of lockouts stood at 229 with a loss of 18.16 million man-days and 10. taken together.
. the continuance of such a strike or lock out is not illegal provided it is in compliance with the provisions of act. or with both Measures For Improving Industrial Relations The following measures should be taken to achieve good industrial relations: Strong and Stable Union: A strong and stable union in each industrial enterprise is essential for good industrial relations. The employers can easily ignore a weak union on the plea that it hardly represents the workers. a lockout declared in consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal. The same rule applies to the employers. The agreement with such a union will hardly be honored by a large section of workforce. The employer is supposed to report the number of notices of strikes received by him to the appropriate Government or the authority prescribed by the government within the five days of receiving such notices. cannot go on a strike without giving a notice of strike within the six weeks before striking. that is. an employer who initiates and continues a lockout is punishable with imprisonment extendable to a month or with a fine of one thousand rupees or both. Therefore. Any person who knowingly provides such a help in support of any illegal strike or lock-out is punishable with imprisonment for a term which may extend to six months. According to Section 25 of Industrial Disputes Act 1947. Illegal Strikes and Lock-Outs A strike or a lock-out is illegal if it is declared in noncompliance with the section 22 (as defined above) of Industrial Disputes Act 1947.Employees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947. the notice of strike or lockout is to be given in a prescribed manner showing the number of persons involved in the strike/lockout The notice of strike or lockout is not necessary when there is already a strike or lockout going on in the company. However. Moreover. a notice should be issued on the day on which the lockout is declared just to intimate the appropriate authorities about the lockout. Employers who are carrying on a public utility service can not lockout any of their employees without giving them a prior notice within six weeks before the lock out or within the fourteen days of giving such a notice. who are working in a public utility service. if the notice period is not served or if the strike is held within the fourteen days of issuing the notice of strike. there must be strong and stable unions in every enterprise to represent the majority of workers and negotiate with the management about the terms and conditions of service. They can not go on strike either within fourteen days of providing the strike notice or before the expiry of the date of strike specified in any such notice. Employees. If a strike or lockout has already taken place and is being referred to a Board. or with fine which may extend to one thousand rupees. In similar way. no person should provide any sort of financial aid to any illegal strike or lock-out. Penalty for Illegal Strikes and Lock-outs A workman who is involved in an illegal strike can be penalized with imprisonment for a term extendable to a month or with a fine or fifty rupees or both. Moreover.
it may foster union militancy as the union reacts by engaging in pressure tactics. An environment of uncertainty is created. The policies should be: o Formulated in consultation with the workers and their representatives if they are to be implemented effectively. Ethics at work place Ethics are most important in one's life. whether it is individual or corporation is bad and are doing harm to the society. Sincere Implementation of Agreements. labor unions should persuade their members to work for the common objectives of the organization. This will improve communication between managers and workers. It should make law for the compulsory recognition of a representative union in each industrial unit. increase productivity and lead to greater effectiveness. Management should adopt a progressive outlook and should recognize the rights of workers. One must clearly understand that conflicting attitude does not lead to amicable labor relations. The agreements between the management and the unions should be enforced both in letter and spirit. The management should be willing to co-operate rather than blackmail the workers. Mutual Accommodation. Progressive Outlook: There should be progressive outlook of the management of each industrial enterprise. It should intervene to settle disputes if the management and the workers are unable to settle their disputes. Workers Participation in Management: The participation of workers in the management of the industrial unit should be encouraged by making effective use of works committees. The approach must be of mutual give and take rather than take or leave. confidence and respect. every company have spell out its policy on ethics of company and follow code of conduct to conduct business and ask the employees to
. The management should sincerely implement the settlements reached with the trade unions. o Clearly stated so that there is no confusion in the mind of anybody. If the agreements are not implemented then both the union and management stop trusting each other. joint consultation and other methods. the employees. The management must recognize the rights of workers to organize unions to protect their economic and social interests. o Implementation of the policies should be uniform throughout the organization to ensure fair treatment to each worker. In any organization. efforts should be made at both ends to ensure the follow up of the agreements. Government s Role: The Government should play an active role for promoting industrial peace. Similarly. In corporate social responsibility reports. The employers must recognize the right of collective bargaining of the trade unions. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes. This will restore industrial harmony. To avoid this. the consumers and the nation. Sound Personnel Policies: The following points should be noted regarding the personnel policies. unethical. there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude.Mutual Trust: Both management and labor should help in the development of an atmosphere of mutual cooperation. It should be conscious of its obligations and responsibilities to the owners of the business.
Bangalore. followed by Sunil Mittal-led telecom giant Bharti Airtel and another Tata group company Tata Steel in the top five. However 78% of the Kolkatta work force differed on this. It is the duty of individual employee and employer to enforce ethics for benefit of the company and society. relativity and materiality. Mumbai. Ahmedabad. An ethical company will achieve its social economic and environmental objectives towards society. while those in Mumbai and Chennai felt they were better information on this. Those in Delhi and Ahmedabad felt flexible work schedule will curtail it. Nearly 62 per cent of the respondents were willing to use any means to get competitor information. social and environmental responsibilities of the company to the society. Chennai. The acceptable code of conduct in Corporate India is morphing from dogmatic thought police.follow ethics and code of conduct to accomplish economic. Mumbai. 75% respondents from Bangalore. The study further reveals that Kolkata reacted strongly to unethical office behaviour. said. TeamLease Services. Chennai. Hyderabad and Pune conceded they lied to take leave and did not considered it unethical. 55% of staff misuse company facilities. Hyderabad and Kolkata insisted that leaders and managers should walk the talk on office ethics. according to the report. to a more fluid situation that accepts diversity. Surabhi Mathur.7 per cent of the workers had no qualms in fudging their cost details and almost 61 per cent felt that it is fine to take printouts and photocopies in offices for personal work. Hyderabad and Pune. Ahmedabad believed in the indirect route. While Mumbaikars would confront their co-workers directly for unethical behaviour. permanent staffing. whereas the most lenient city was Ahmedabad. according to a list prepared by the Wall Street JournalAsia. covered top 500 companies and had a sample size of401. the other cities differ with an average score of 42 per cent. says a survey by Team Lease Services. Kolkata. it should feel it is its duty and responsibility to serve the society. general manager. The study commissioned by Team Lease Services and conducted by global research company Synovate in May and June. with Hyderabad stressing on the need for frequent training on ethics in offices and by increasing open lines of communication. Around 63 per cent of the respondents are fine with doing personal work during office hours. reveals World of Work survey The study titled Nothing Ethical about Ethics encapsulates views of the corporate workforce on workplace ethics across eight cities in India -New Delhi. Delhi and Hyderabad are unaware of their company s ethical policy. Kolkata. Hyderabad and Pune. Around 55. According to the study titled Nothing Ethical about Ethics encapsulates views of the corporate workforce on workplace ethics across eight cities in India New Delhi. Some people view this as a devaluation. The fourth survey in the World of Work series tries to understand the changing scenario at workplaces in India. Your ethical
. Mumbai. Bangalore and Chennai felt having open lines of communication would help check it. IT majors Infosys. It says any company trying to tackle productivity issues needs to check internally. With out the help of employee this is not possible. TCS and Wipro have emerged as the three most admired companies in India. Ahmedabad. From the survey it is evident that the ethics in corporate sector are eroding. Taking credit for subordinate ideas is not unethical said Ahmedabad and Bangalore. One third respondents in Bangalore. Bangalore. but companies are getting better at defining non-negotiable without interfering in trivia. whose card-carrying members were the HR department.
stock market.behaviour is most important. growing literacy and awareness among the employees and the spread of a variety of social institutions including consumer and public interest groups the protective role must have undergone. industrialists. too little morality' sums up the publics' assessment of unions There have been many opinion surveys especially in the United States. a qualitative change. legal profession. In surveys which rank the confidence of the American public in fourteen institutions (as for example the army. Trade unions are also seen as moral institutions. The public is not against unionism in principle. There are two possible ways of looking at union membership figures. This gives overall membership position. for example. is that the concerns of trade unions extend beyond 'bread and butter' issues. Trade Unions in India The trade union movement in India is over a century old. It can be said that the protective role of trade unions remains in form. which will uplift the weak and downtrodden and render them the place. office or country.) trade unions have been consistently placed at the bottom of the list. Density is generally accepted as a better indicator because it shows not only how many are members but also how many are not. In the wake of a long history of union movement and accumulated benefits under collective agreements. The public image of union leaders is that they are autocratic. a plethora of legislations and industrial jurisprudence. the dignity and justice they deserve. There is a serious decline in union membership in most industrialized nations. which bring out the poor public image of trade unions. Traditionally trade unions role has been to protect jobs and real earnings. one may peruse the
. Density is the percentage of union members in relation to total employment. but varies in substance. There is a considerable debate on the purposes and role of trade unions. if unions have 50 members in a factory employing 100. The State of Trade Unions in the World. corrupt and indifferent to the public interest 'Too much power. however. church. supreme court. density is measured by comparing union members against total employment in all sectors. The first method is to simply add up all union members in a factory. the density is 50 percent. Trade unions through industrial action (such as protests and strikes) and political action (influencing Government policy) establish minimum economic and legal conditions and restrain abuse of labour wherever the labour is organised. You are key person to make or unmake better society
The Role of Trade Union Trade unions are unique organisations whose role is variously interpreted and understood by different interest groups in the society. secure better conditions of work and life and fight against exploitation and arbitrariness to ensure fairness and equity in employment contexts. The predominant view. It is against the way unions and union leaders function. In the second method. newspapers etc. It is useful to take stock to see whether the trade unions in India are at the centre stage or in periphery. Public opinion is hostile to trade unions in most countries. In order to do that. the density of membership is calculated. When the reference is to entire country.
financial debility and dependence on outside leadership. Unfortunately trade unionism in India suffers from a variety of problems such as politicisation of the unions. The early splits in Indian trade unionism tended to be on ideological grounds each linked to a particular political party.India federation. 9. Several studies also point to a shift in employment from the organised to the unorganised sector through subcontracting and emergence of a typical employment practice where those work for the organisation do not have employment relationship. Much of the recent fragmentation.05 Crore (30.79 million) constitutes 37. The Indian workforce 31. growing alienation between trade unions and membership particularly due to changing characteristics of the new workforce and waning influence of national federations over the enterprise unions. has centered on personalities and occasionally on caste or regional considerations. Thus the unorganised sector is meagrely represented. statistics. New pattern of unionisation points to a shift from organising workers in a region or industry to the emergence of independent unions at the enterprise level whose obsession is with enterprise level concerns with no forum to link them with national federations that could secure for them a voice at national policy making levels.5 percent is accounted for by the informal sector.3 percent of the total population. Further. the claimed membership of the Indian trade union movement was 3.5 percent of the workforce) are employed on permanent basis. multiplicity of unions.479 Crore (314.5 million) (i.following relevant. uneconomic size. but a contractual relationship. however. It has also been reported that by December 1991. though selective. Of the total workforce.68 percent of the workforce) with 82. 9. It is difficult to say how many trade unions operate at the national level since many are not affiliated to any all.5 percent being employed on casual basis.24 percent of the trade union membership being accounted for by the organised sector. only abut 3 Crore (30 million) (i. implying 90.e. The World Labour Report summarises the trade union situation in India "Indian unions are too very fragmented.
. Apart from the low membership coverage and fragmentation of the trade unions. 91. several studies point to a decline in membership.5 percent. while the formal sector accounts for 8. inter-union rivalry.e. In many work places several trade unions compete for the loyalty of the same body of workers and their rivalry is usually bitter and sometimes violent.
taken to cover all termsILO: Workers participation. questions affecting work rules and conduct of individual worker s safety. demotions. welfare measures. promotions. decisions and negotiations. o Social decisions hours of work. health. automation. mergers. may broadly be of association of workers and their representatives with the decision-making process. grievance settlement.The concept of WPM is a broad and conditions. to more institutionalized forms such as the presence of workers member on management or supervisory boards or even management by workers themselves
.Depending on the socio-political environment and cultural Institute of Labour SInternationaltudies: WPM is the participation resulting from the practices which increase the scope for employees share of influence in decision-making at different tiers of organizational hierarch with concomitant assumption of responsibility. Definitions: complex one.WORKERS PARTICIPATION IN MANAGEMENT
Introduction: managerial decisions affect the workers of anyThree groups of industrial establishment and hence the workers must have a say in it. work distribution. shutdown. the scope and contents of participation change. consultations. o Economic decisions methods of manufacturing. sharing the decision-making power withParticipation basically means the lower ranks of the organization in an appropriate manner. transfers. ranging from exchange of information. o Personnel decisions recruitment and selection. sanitation and noise control. lay-offs.
They tend to
. and o To secure the mutual co-operation of employees and employers in achieving industrial peace. o Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere. harmony between workers and management. main implications of workers participation in management as summarized by ILO:The o Workers have ideas which can be useful.Peace and actions would contribute to the overall growth of the company. the workers. greater efficiency and productivity in the interest of the enterprise.
Importance: Unique motivational power and a great psychological value. o A device for developing social education for promoting solidarity among workers and for tapping human talents. elevating the status of a worker in the society. o A means for achieving industrial peace and harmony which leads to higher productivity and increased production. can be cited as:Other objectives of WPM o To improve the quality of working life (QWL) by allowing the workers greater influence and involvement in work and satisfaction obtained from work. o A humanitarian act. Objectives: viewed as:According to Gosep. the consumers and the nation. workers participation may be o An instrument for increasing the efficiency of enterprises and establishing harmonious relations.as practiced in Yugoslavia.Workers get to see how their view the decisions as `their own and are more enthusiastic in their implementation. o An ideological way of developing self-management and promoting industrial democracy.
workers should only be given an opportunity. o He or she can guide the Board members on matters of investment in employee benefit schemes like housing. and even nationalized banks. HMT (Bangalore). to influence managerial decisions at various levels.
. India took the initiative and appointed workers The Government of representatives on the Board of Hindustan Antibiotics (Pune). sit with the management and make joint managerial decisions.The other view is that through their representatives. the o Board level participation o Ownership participation o Complete control o Staff or work councils o Joint councils and committees o Collective Bargaining o Job enlargement and enrichment o Suggestion schemes o Quality circles o Empowered teams o TQM o Financial participation Participation at the Board level: highest form of industrial democracy. Scope and ways of participation: that workers or the trade unions should. as equalOne view is partners.He o He or she can prevail upon top management not to take measures that would be unpopular with the employees. and so forth.The workers representative on the or she can serve as a guide and a control element.This would be the Board can play a useful role in safeguarding the interests of workers.Participation makes them more responsible. participation of workers can take place by one or all the methods listed below:In practice. o They become more willing to take initiative and come out with cost-saving suggestions and growthoriented ideas.
o Such representatives of workers on the Board. he or she may be less effective with the other members of the Board in dealing with employee matters. o Because of the differences in the cultural and educational backgrounds. associated with this method:Problems o Focus of workers representatives is different from the focus of the remaining members of the Board. his or her role as a director may not be satisfying for either the workers or the management. and he or she may feel suffocated. to theConclusion: Complete control by workers is not an answer problem of participation because the workers do not evince interest in management decisions. Drawback: o Effect on participation is limited because ownership and management are two different things.The employees of the
. Participation through ownership: the workers shareholders of the company by inducing them to buy equity shares.Examples of this method are available in the manufacturing as well Advantage: o Makes the workers committed to the job and to the organization.The system of gives complete control to workers to manage directly all aspects of industries through their representatives. o Industrial disputes disappear when workers develop loyalty to the organization.There may be one council for respective sections elect the members of the councils.Staff councils or works councils are bodies on which the the entire organization or a hierarchy of councils. advances and financial assistance in the form of easy repayment options are extended to enable employees to buy equity shares.The Tatas.Workers acquire self-management in Yugoslavia is based on this concept.This involves making o In many cases.He or she tends to become o As a result. DCM. such an employees representative may feel inferior to the other members. places them in a minority. as the service sector.Self-management Advantages: o Ensures identification of the workers with their organization. Participation through Staff and Works Councils: representation is entirely of the employees. and a few others have adopted this practice. alienated from the workers. o Trade unions welcome this type of participation. Hence. Participation through complete control: complete control of the management through elected boards. o Communication and subsequently relations between the workers representative and the workers suffers after the former assumes directorship. And the decisions of the Board are arrived at on the basis of the majority vote. and differences in behaviour and manners.
workers and the employers representatives need to bargain in the right spirit. o Such committees have not proven to be too effective in promoting industrial democracy. etc. increasing productivity and reducing labour unrest. o Examples of such committees are welfare committee. concern to him issuesThe worker has no say in other vital issues of such as job and income security. o WPM.Two methods of job designing job enlargement and o Job enlargement means expanding the job content adding task elements horizontally. safety committee. management and workers may reach collectiveThrough the agreement regarding rules for the formulation and termination of the contract of employment.For CB to work. CB is based on the crude concept of exercising power for the benefit of one party.iThis is WPM in that it offers freedom and scope to the as it provides onlyiBut this form of participation is very basic limited freedom to a worker concerning the method of performing his/her job.
Participation through Joint Councils and Committees: Joint councils are bodies comprising representatives of employers and employees. job enrichment are seen as methods of addressing the problems. while bargaining. workers to use their judgment. Participation through Job Enlargement and Job Enrichment: by-product of massExcessive job specialization that is seen as a production in industries. o This method sees a very loose form of participation. o Job enrichment means adding `motivators to the job to make it more rewarding. are not legally biEven though these agreementsnding. requirement in industrial establishments employing 100 or more workers.varied role. on the other hand. welfare schemes and other policy decisions. as these councils are mostly consultative bodies. as well as conditions of service in an establishment. leads to boredom and associated problems in employees. enjoyed too much of success because trade unionSuch councils have not leaders fear the erosion of their power and prestige if such workers bodies were to prevail.But in practice.
.Work committees are a legal o Such committees discuss a wide range of topics connected to labour welfare. brings both the parties together and develops appropriate mutual understanding and brings about a mature responsible relationship. the advantage of the other. they do have some force.Such councils play a o Their role ranges from seeking information on the management s intentions to a full share in decisionmaking. Participation through Collective Bargaining: process of CB. each party tries to take strongest sense as inThis process of CB cannot be called WPM in its reality.
Participation through Suggestion Schemes: Employees views are invited and reward is given for the best suggestion.Progressive managements increasingly use the Suggestions can come from various levels.The rewards given to the employees are in line with the Participation through Quality Circles: all over the world.These cycle one to three years.QCs are said to provide quick. analyze. the employees interest in the problems of the organization is aroused and maintained. those accepted could provide marginal to substantial benefits to the company. iTrade unions look at it as: A way of overburdening workers. With this scheme.Concept originated in Japan in the early 1960s and has now spread work area who meetA QC consists of seven to ten people from the same regularly to define. o Organization gets to enjoy higher savings-to-cost ratios. acquire communication and analytical skills and improve efficiency of the work place.Most QCs have a definite life o Few circles survive beyond this limit either because they loose steam or they face simple problems. Mahindra and Mahindra. Godrej and Boyce among others. concrete.QCs can be an For QCs to succeed in the long run. excellent bridge between participative and non-participative approaches. Workers got to get out of their daily routine and do something challenging. analysis. to the members. and An attempt to undermine their role. benefits derived from the suggestions. paper-work reduction and the like. the management needs to show its commitment by implementing some of the suggestions of the groups and providing feedback on the disposition of all suggestions.Training in problem-solving techniques is provided results when correctly implemented. circles require a lot of time and commitment on the part of members for regular meetings. ideas could range from changes in inspection procedures to designThe changes. and solve quality and related problems in their area. and impressive Advantages: o Employees become involved in decision-making.
. o Out of various suggestions. brainstorming. Technical problems got solved. process simplification. suggestion schemes. etc. The Indian Scenario: o Tried by BHEL. o Chances of QC members to get promotions are enhanced. o Experienced mixed results: iM&M (jeep division) with 76 QCs has experienced favourable results.
may take initiative in their to occur. and are enjoying positive results. New principles of TQM are: o Meet the customer s requirement on time. the first time. may get more work done. the following approach needs to be followed as compared to the traditional approach:For empowerment Element Traditional Org. o Quality can be improved by inspection. Wipro Corporation and Wipro InfoTech are empowering employees both frontline as well as production staff. control and improve their work. o Usually order materials. o Defects cannot be completely eliminated. facilitate Leadership Top-down Shared with the team Information flow Controlled. o Strive to do error-free work. almost obsession. shared Rewards Individual.TQM refers to step in company s processes is subjected to intense and regular scrutiny for ways to improve it. Titan. and 100% of the time. team Job design Narrow. o Quality in the job of the QC personnel. o May prepare their own budgets and co-ordinate their work with other departments. multiple tasks Management role Direct. individual Flat. and may enjoy the work more. Empowered Teams Organizational structure Layered. GE Plastics (India). control. of an organization to quality. improve teams:Features of empowered or self-directed o Empowered to share various management and leadership functions. single task Whole process. ABB. o Manage by prevention. improve Teams plan. control. keep inventories and deal with suppliers.
. o Plan.Empowered Teams: Empowerment occurs when authority and responsibility are passed on to the employees who then experience a sense of ownership and control over their jobs. work. Total Quality Management: the deep commitment. o Often create their schedules and review their performance as a group.Employees may feel more responsible. control Coach. Reliance. skill-based Job process Managers plan. not correction. seniority Team-based. o High quality costs more. o May hire their own replacement to assume responsibility for the quality of their products or services. o Frequently responsible for acquiring any new training they might need.Every Some traditional beliefs are discarded. limited Open.
Evolution of participative management in India: the Industrial Disputes Act. making each one responsible for improving quality everyday.Free flow of to be avoided. involvingTQM is called participative because it is a formal programme every employee in the organization. which made Works Committees mandatory in industrial establishments employing 100 or more workers. and improve employer-employee relations.The beginning towards WPM was made with 1947. promoting participative management has been fThe role of trade unions inar from satisfactory. he/she is likely to be more positively motivated and involved. Financial Participation: involves less consultations or even joint decisions. they must have clearly defined and complementary objectives.o Measure the cost of quality. all levels of decision-making. o Pension-fund participation. financial participation:Some schemes of o Profit-linked pay o Profit sharing and Employees Stock Option schemes. Policy Resolution adopted by the government in 1956The Industrial stated that there should be some joint consultation to ensure industrial peace. Managers consider participative management a fraud. Employers are unwilling to share power with the workers representatives. education and training.The functions of both these joint bodies were
.Technology and organizations today are so complex that o This means employees will not be able to participate effectively in matters beyond their particular environment. Pre-requisites for successful participation: Management and operatives/employees should not work at cross-purposes i.Performance of the this is that if an employee has a financial stake inThe logic behind the organization.Workers should be associated at participation to the exclusion of all other work.Workers Trust between both the parties.This method organization is linked to the performance of the employee. Everybody need not want participation.Employees cannot spend all their time in Limitations of participation: specialized work-roles are required.e. to be consultative and were not binding on the management. communication and information.Participation of outside trade union leaders Strong and effective trade unionism. Trade unions and government needs to work in this area.
iNo these schemes wasDuring the emergency of 1975-77. commitment in India. o Then. the 42nd Amendment to the Constitution was made.In was again emphasized by the non-statutory vein till the late 1980s. by suitableiNow. the government introduced the Participation of Workers in Management Bill in the Rajya Sabha. on May 30. employers and employees. Managers and workers are partners in the progress of business. or in any other way. to power in 1977 carried on this initiative.The response to o A study team was appointed in 1962 to report on the working of joint councils and committees. bill requires every industrial enterprise to constitute one oriThe more `Shop-Floor Councils at the shop floor level. to secure the participation of workers in the management of undertakings.these schemes was encouraging to begin with. but gradually waned.But participative management is staging a o The compulsions of emerging competitive environment have made employee involvement more relevant than ever before.In spite of all these comeback.1990. establishments or other organizations engaged in any industry. concrete steps were taken to remove the difficulties.iThus.iThe bill provides for the individuals who contravene any provision of the bill. o Managers and the managed are forced to forget their known stands.iThe constitution of a Board of Management of every corporate body owning an industrial establishment. the interest in revived by the then Prime Minister by including Workers Participation in industry in the government s 20-point programme. o The government started persuading large enterprises to set up joint consultative committees and councils at different levels. iThe team identified some reasons for their failure.
.iThese councils will have equal representation of of functions from production. and theThis continued in a response from the employers and employees stayed luke-warm. only the government and the academicians have been interested in participative management. legislation. wastage control to safety hazards. Article 43-A reads: The State shall take steps. participative management is a constitutional o And then.iShop-Floor councils enjoy powers over a wide range Establishment Council enjoys similar powers.The Janata Government who came Congress government who came back n 1979. and work in unison. break barriers. and`Establishment Council at the establishment level. or change the pattern of participative management.iThe bill also provides for penalties on efforts.
According to an ILO Manual in 1960. hours of work and other conditions of employees arguing in concerted economic actions dispute settlement procedures . a group of employees or one or more employers organization on the other. It is also asserted that the terms of agreement serve as a code defining the right & obligations of each party in their employment relations with one another. ____BEACH Collective Bargaining is a process in which the representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement. Collective Bargaining involves: Negotiations Drafting Administration Interpretation of documents written by employers and the union representatives their employees. internal circumstances give grounds for a dispute counseling and individual workers . The essence of Collective Bargaining is bargaining between interested parties and not from outside parties . Able management
. with a view to reaching an agreement. ____ FLIPPO Collective Bargaining is a mode of fixing the terms of employment by means of bargaining between organized body of employees and an employer or association of employees acting usually through authorized agents.COLLECTIVE BARGAINING Collective Bargaining is concerned with the relations between unions reporting employees and employers (or their representatives). if fixes large number of detailed conditions of employees and during its validity none of the matters it deals with. the Collective Bargaining has defined as: Negotiations about working conditions and terms of employment between an employer. It involves the process of union organization of employees. which specifies the nature of employee-employer union relationship . negotiations administration and interpretation of collective agreements concerning wages.
A method of settling disputes during pendency of agreement and of determining. a) one Company and b) either one union or c) more than one union (Where there are several unions at different plants) Multi-employer bargaining
. services and administers many of rules which governs the workers place of workA system which establishes.Organizational Trade Unions with open mind. after its expiry. Thus categories of Collective Bargaining are:Single employer bargaining. A procedure which determines the quantum of compensation which employee should receive and which influences the distribution of economic benefits. such as: authorityUnion recognition as an Raised standard of living of workers in the Company s profitGreater share for them Due respect to workers decision influencing their working conditionsParticipation in settle disputes arising in day-to-day situationsEstablishment of practices to throughout the countryWorkers interest of employees and employers as wellA technique for the accomplishment of the goals both societyThey are the integral part of the freelyIt implies agreement between representatives of management and designated representatives of employees relating to the solutions of Industrial problems with minimum government dictates. Collective Bargaining is Workers Bill of Right which serves several objectives of the union. whether a dispute should be re-opened or whether a strike or lock-out should be resorted to or not. Collective Bargaining is .
Guide for Trade Union Training Issued by the International Confederation of Free Trade Union. extension of the principles and practices of democracy to the industryIn fact it is an Actually it is the beginning of Industrial Jurisprudence abide by certain rules rather than arbitrary decisionsManagement to According to John T Dunlop.
safety. welfare and productive efficiency.a) Employer s federation b) Workers of an industry representatives by the federation of all the trade unions (At local. It involves not only the negotiation of the contract. This only includes recommendations the ultimate decisions rests with the management. It is an attempt in achieving and maintaining discipline in industry It is an effective step in promoting industrial jurisprudence. hours of work Leave and festival holidays Bonus & profit sharing schemes Seniority and rationalism Fixation of work loads Standard of labour force
. Subject matter of Collective Bargaining: Employment Relationship between the workers and the management. It means that bargaining is a day-to-day process Summer Sticher has rightly observed: It would be mistake as to assume that Collective Bargaining begins and ends with the writing of the contract. Features of Collective Bargaining It is a collective process: The representative of both the management & the employees participate in it. It is a continuous process: It establishes regular & stable relationship between the parties involved. Joint Consultation means joint councils relates to the sharing of information & suggestion with regard to the issues of common interest including health. regional or industry level)
Collective Bargaining Vs Joint Consultation Collective Bargaining is to arrive at an agreement on wages and other conditions of employment about which the parties start with divergent viewpoints but ultimately attempts to make a comprise. but also the administration or application of the contract also. Recognition of union Wages and allowances. It is in fact a way to establish industrial democracy. Actually. It is based on give and take approach and take or leave approach. that is only the beginning of the Collective Bargaining It is a flexible and dynamic process: The parties have to adopt a flexible attitude throughout the process of bargaining It is a method of partnership of workers in management.
leave. its scope. gratuity and other retirement benefit schemes Incentive schemes Housing & transport facilities Issues related to discipline and stop rules Grievance proceedings Working conditions Issues related to safety and accident prevention. and the definition of important terms Rights and responsibilities of the management and of the trade union Wages. production norms. Purpose of agreement.Programs of planning and development. bonus. influencing workforce Issue related to retrenchment and lay offs Victimization of trade union activities PF. Employment benefits such as canteens. retirement benefits and terms & conditions of service Grievance redressal procedure Methods and machinery for settlement Termination clause. occupational diseases and protective clothing. Signification of Collective Bargaining Negotiations Administration Enforcement of the written contract between employees and the employer Process of reserving labour-management conflicts It is legally and socially sanctioned way of regulating in the public interest the forces of power and influence inherent in organized labour management groups Labour legislation and machinery for settlement of disputes To promote cooperation and mutual understanding To provide strikes and lock-outs Bipartite / tripartite machinery An important solution to the problem of IRs Importance to employees Importance to employers Importance to Society Functions of Collective Bargaining Social change
. medical & health services and crèches Administration of welfare funds Cooperative thrift and credit societies Educational recreational and training schemes The Indian Institute of Personnel Management suggested the following subject matter of Collective Bargaining.
Correct understanding of the main issue and intimate knowledge of operations. Thus minor issues are defused and settled peacefully. To iron-up differences in the beginning Frank discussions. Proper climate for mutual understanding and a common desire to reach an agreement. 1. mutual benefits and attempts to appreciate the other parties approach/point of view for fruitful negotiations. Composition of Negotiating Team: Representatives of both workers and the employees Adequate qualify job knowledge and skills for negotiations. The Indian Institute of Personnel Management has suggested following procedure for negotiation and Collective Bargaining between Management and Union. the Industrial Relations Manager to initiate preliminary work and have initial discussions and inform the results to top management. Basic qualities of balanced views even temper. Inclusion of functional heads will be more beneficial. If both the parties are mutually prepared results can be achieved. An IRM is to act as a liaison with the union members and as a bridge.Temporary Treaty Industrial peace --¢Peace Treaty or Industrial Democracy # With Combative aspects #Without Combative aspects
Long run Social Change
Industrial Jurisprudence(To follow laws/Rules)
Procedure of Negotiation and Collective Bargaining Discussion between Management/workers/Trade Unions Counter-proposals followed by arguments come up.
. No legal compulsion on either side to negotiate of a dispute. To have full authority to speak and make decisions. etc. working conditions. production norms. objective look out. Make a good beginning Well begun is half done is true in the Collective Bargaining Steps for mutual cooperation Members in the right frame of mind. When issue is raised by the union. analytical mind. 2. A team of senior managers to involve from the management side for discussions in matter.
analyses can fluid a solution with open mind. As the field of agreement is widened and the field of disagreement is narrowed down. but the entire field of industrial activity. These are the basic difference and conflict never gets resolved. Encourage leadership Possibilities of solution of both sides are argued. 5. bringing things to fundamentals will then help. sympathy and firness Growth of healthy and strong trade unionism. 4. threatening discipline peace and production gets disturbed. Maintain continuity of Talks With good will and understanding Occasions for emotional outbursts and roadblocks likely Never to reach the dead end Side track blind alleys and keep talks continuing Even under the worst situations breaking off temporarily for scrolling down and rethinking may be necessary. United and homogeneous climate on both sides Management gets the union it deserves Principle of justice. a solution will be possible. Develop a problem-solving attitude Appreciation on both the sides Better understanding Better performance and increased prosperity for future Proper discussion. Thus development of the right type of leadership is only a matter of time. Bring in the other managers Contribution and involvement of other managers Collective agreement covers not just one part. Thus maintaining normal conditions and preserving in spirit of agreement in such a situation presents a tough challenge to the skill & ability of the management. Lack of understanding and proper communication often create problems and difficulties Discipline for management and productivity/job security for workers is important. To keep the discussion fluid is therefore very important. Right of association and fight for justice and a fair deal. small gaps can be bridged over more easily later. Better to leave controversial issues for the time being and leap over to the next issue. 3.True spirit of give and take Maximum chances of success. As long as talks continue. 6.
. At times conflict grows more serious and a situation becomes explosives. When the main issue get confused the dust and storm raised.
since contacts are regularly re-negotiated. Following conditions must be fulfilled to make Collective Bargaining successful. a) Strong and stable union b) Recognition of trade union c) Permanent bargaining machinery d) Mutual accommodation e) Political climate f) Bargainers authority Note-worth trends on Collective Bargaining Collective Bargaining was initially coined by Sydney & Beatrice Webb in 1897 Trade unionism came into existence during early 20th Century in England In USA. it is not very popular in the private sector but is very popular in public sector Bipartite agreements in banks is very common practice Trade unions put forward their demands with counter demands from the management. Collective Bargaining is an important element It became national bargaining between two world wars In India. Almost all Collective Bargaining agreements contain formal procedure to be used in resolving difference over the interpretation and application of the agreement.
Essentials of Successful Collective Bargaining Process It is an institutionalized representative process It is a graceful retreat and to compromise It involves:a) Psychology b) Politics c) Poker (Interference in a negative way) It is a tough-minded economic calculus and horse-trading Bargaining sessions almost are unavoidably contain certain stress and strains Labour-management tensions are recurrent in nature.7. Contract Administration Once a contract is agreed upon it must be diminished Contract to specify the procedure for handling disagreement over the interpretation of different clause of the agreement. Most of the unions and
. Coercive tactics from both sides Industry-wise bipartite committees formation Workers participation in management Collective Bargaining at various levels is feasible and effective. Obstacles to Collective Bargaining in India Progress of the Collective Bargaining process is not very encouraging in India.
management lay emphasis on adjudication rather sorting out issues themselves. the conflict is an epidemic to the industrial society. Conflict of interests of management and labour is the progeny of the capitalist form of economic organization. collaboration and conflict between labour and management though industrial peace and harmony may be sought as an organizational objective. Traditionally. It is inappropriate to say that conflict is all good or bad. stable representative by union Recognition by the law of the trade unions Political leadership to be replaced by internal workers leadership No political interference Both management and unions should adopt peaceful means of settling disputes Adjudication to be resorted to as last resort. Conflict is not only a positive force in a modern group but is also necessary for a group to perform effectively. when all other remedies have failed. Conflict indicates malfunctioning within the organization and it represents management failure to bind the workers and the organization together. the very factor of the existence of the wide cleft of authority between the Hands that Produce And Hands that Control The means of production has become a major issue and source of conflict between management and labour. It is not only the sharing of the fruits of industry that generate conflicts. It depends whether the conflict is functional or dysfunctional (destructive) and thus hinders the performance of the organization.
. conflict in organizations has been viewed very negatively The classical writers believe that conflict is inherently bad and so it must be curbed.
Dynamics of Industrial Relations Industrial Conflicts IRs are invariably a combination of cooperation. same conflict is inherent in the industrial structure and in fact. Several factors are responsible for this: Multiple unions Non-recognition Political orientation Defective laws Mediation by political leaders Suggestions for effective Collective Bargaining To create conditions for strong.
complaints and grievances and effective grievance handling machinery.Positive Aspects of Conflicts It provides stability to the group concerned Workers.
Introduction To Industrial Relations
. who do not normally accept decisions of the union leaders and management shows greater homogeneity during the strike period Conflicts brings issues in open and thus are easy to solve. Industrial Peace Cordial labour Management relations Ideal situation for industrial growth Constant vigilance is required Is just opposite to industrial unrest Preconditions for Industrial Peace Strong trade unions with democratic norms Employers to have a progressive outlook Both workers and management should have faith in Collective Bargaining & other peaceful means of settling disputes. it gets into public lime-light and gets public opinion and support During conflicts. group gain power which is identified to solve the problem. Better employer-employee communication greater and more effective attention to employee s problem. promotion. responsibilities and procedures for implementation of decisions. fair treatment and demonstrably impartial treatment of workers Evolution of a strong. Workers participation in management should encouraged There should be open two-way communication between the parties to the IRs Measures of Industrial Peace Liberal and fair management policy regarding wages and other benefits Satisfactory working conditions Mutually acceptable personnel policies in respect of employees. Effective measures and techniques for preservation and improvement of employees morale and motivation Healthy supervision. disciplinary action and dismissal Social security and labour welfare measures to provide for the legitimate needs of workers and their families. Collective Bargaining and establishment of mutually acceptable agreements defining policies. When the conflicts become open. representative and responsible trade union Effective and mutually satisfactory measures for attaining participation of workers in the management of industrial enterprises.
Concept of Industrial Relations: The term Industrial Relations comprises of two terms: Industry and Relations . and the management of conflict between employers. Industrial relations are basically the interactions between employers. particularly groups of workers represented by a union. the term industrial relations is used to cover such aspects of industrial life as trade unionism. The relationships which arise at and out of the workplace generally include the relationships between individual workers. while human resource management is a separate. employee relations. Traditionally. The term industrial relations has a broad as well as a narrow outlook. and labor-management relations. and the institutions and associations through which such interactions are mediated. workers and trade unions. collective bargaining. Accordingly. From this perspective. at all levels industrial relations also includes the processes through which these relationships are expressed (such as. employees and the government. industrial relations covers all aspects of the employment relationship.
Industrial Relations Industrial relations is used to denote the collective relationships between management and the workers. workers participation in decision-making. The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. The field of industrial relations looks at the relationship between management and workers. and the relations between those organizations. Industrial progress is impossible without cooperation of labors and harmonious relationships. and union-management (or labor) relations. the relationships employers and workers have with the organizations formed to promote their respective interests. the relationships between workers and their employer. Now its meaning has become more specific and restricted. and grievance and dispute settlement). Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged . By relations we mean the relationships that exist within the industry between the employer and his workmen. discipline and grievance
. industrial relations pertains to the study and practice of collective bargaining. collective bargaining. largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. the relationships between employers. Originally. industrial relations was broadly defined to include the relationships and interactions between employers and employees. Industrial relations are the relationships between employees and employers within the organizational settings. workers participation in management. Therefore. trade unionism. it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). including human resource management.Industrial relations has become one of the most delicate and complex problems of modern industrial society. when it arises.
lay-off. industrial relations. Characters: It aims to study the role of workers unions and employers federations officials. issues concerning with workers participation in management. discipline procedure. industrial disputes and interpretation of labor laws and rules and code of conduct. tribunals etc. the group and the community . procedures. between the profit motive and social gain. union reorganization. trade unions. between bargaining and co-operation.
.handling. Methods: Methods focus on collective bargaining. workers participation in the industrial relations schemes. Contents: It includes matter pertaining to employment conditions like pay. leave with wages. To regulate these relations in socially desirable channels is a function. grievance redressal machinery. regulations. hours of works. which the State is in the best position to perform. mediator/conciliators / arbitrator. and between conflicting interests of the individual. The National Commission on Labor (NCL) also emphasize on the same concept. government bodies. organizations of protests through methods like revisions of existing rules. social security. between authority and industrial democracy. In fact. A few such important factors are below: Institution: It includes government. "Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values.. etc. employers. regulations governing labor welfare. collective bargaining. industrial relations officers/ manager. between discipline and freedom. tribunal etc. laws relating to such activities.labor and management. hearing of labor courts. judges of labor court. labor courts. union federations or associations. industrial relations affect not merely the interests of the two participants. tribunals and other organizations which have direct or indirect impact on the industrial relations systems.
In the words of Lester. According to NCL. shop stewards. dispute settlements machinery working of closed shops. policies. health. dismissals retirements etc. industrial relation encompasses all such factors that influence behavior of people at work. and safety disciplinary actions. but also the economic and social goals to which the State addresses itself.