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

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. Methods: Methods focus on collective bargaining, workers‘ participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc. Contents: It includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals

They exchange views with management and voice their grievances. Government: The central and state government influences and regulates industrial relations through laws. social security. agreements. They also want to share decision making powers of management. are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation. 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. . 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. close or merge the factory or to introduce technological changes. laws relating to such activities. Employees: Workers seek to improve the terms and conditions of their employment. and between them and the State on the other. issues concerning with workers‘ participation in management. 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. They have the right to hire and fire them. collective bargaining. etc.. awards of court ad the like. It also includes third parties and labor and tribunal courts. rules. regulations governing labor welfare. A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand.retirements etc. industrial relations.

The main issues involved here include the following: 1. to consumers and workers. Smooth running of an industry is of vital importance for several other industries. In its wider sense. The scope or industrial relations is quite vast. to exporters if these are export goods. it means that the employer. resulting in the maximum possible production. This means. Unfair labor practices Importance of Industrial Relations The healthy industrial relations are key to the progress and success. lockouts. Strikes. continuous employment for all from manager to workers.SCOPE: The concept of industrial relations has a very wide meaning and connotation. employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. price fixation and disposition of profits among others. There is uninterrupted flow of income for all. marketing. which may transgress to the areas of quality control. if these are goods of mass consumption • Reduction in Industrial Disputes – Good industrial relations reduce the industrial disputes. 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. Standing orders 4. Collective bargaining 2. Workers participation in management 5. Their significance may be discussed as under – • Uninterrupted production – The most important benefit of industrial relations is that this ensures continuity of production. Machinery for settlement of industrial disputes 3. gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial . 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. In the narrow sense. The resources are fully utilized. go-slow tactics. to other industries if the products are intermediaries or inputs.

there must be harmonious relationship between management and labor. It is the business of leadership in the ranks of workers. it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It naturally affects production because mighty co-operative efforts alone can produce great results. 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 .peace. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same. It will help increase production. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. i. aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. • Mental Revolution – The main object of industrial relation is a complete mental revolution of workers and employees. 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. material and machines are reduced to the minimum and thus national interest is protected. to increase production. In other words. The industrial peace lies ultimately in a transformed outlook on the part of both. An economy organized for planned production and distribution. It increases the place of workers in the society and their ego is satisfied. On the other hand. • High morale – Good industrial relations improve the morale of the employees. It helps promoting co-operation and increasing production. complete unity of thought and action is the main achievement of industrial peace. It will naturally have impact on production because they recognize the interest of each other. • Reduced Wastage – Good industrial relations are maintained on the basis of cooperation and recognition of each other. Wastages of man. employees and Government to work out a new relationship in consonance with a spirit of true democracy. It also results in increased efficiency of workers. Thus. Every worker feels that he is a co-owner of the gains of industry. If the twin objectives of rapid national development and increased social justice are to be achieved. workers must recognize employer‘s authority.e.

improved living and working conditions. Unitary Perspective In unitarism. multi-skilled and ready to tackle with efficiency whatever tasks are required. • The emphasis is on good relationships and sound terms and conditions of employment. A core assumption of unitary approach is that management and staff. • 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. • Employee participation in workplace decisions is enabled. quality and improvement groups etc. unitarism has a paternalistic approach where it demands loyalty of all employees. innovation. • To avoid industrial conflict or strife and develop harmonious relations. This helps in empowering individuals in their roles and emphasizes team work. towards the shared mutual goals. said fringe benefits. unitary approach means that: • Working practices should be flexible. the organization is perceived as an integrated and harmonious system. so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. its role is that of a further means of communication between groups of staff and the company. • To improve the economic conditions of workers in the existing state of industrial managements and political government. and all members of the organization share the same objectives.participate in the process of production. which are an essential factor in the productivity of workers and the industrial progress of a country. creativity. Trade unions are deemed as unnecessary and conflict is perceived as disruptive. interests and purposes. discretion in problem-solving. • To eliminate or minimize the number of strikes. Furthermore. • 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. lockouts and gheraos by providing reasonable wages. hand-in-hand. thus working together. viewed as one happy family. From employee point of view. • If a union is recognized. . Individuals should be business process improvement oriented.

From employer point of view. Pluralistic-Perspective In pluralism the organization is perceived as being made up of powerful and divergent sub-groups . unitary approach means that: • Staffing policies should try to unify effort. • Staff-management conflicts . 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. the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Consequently. • Reward systems should be so designed as to foster to secure loyalty and commitment. • Union recognition should be encouraged and union representatives given scope to carry out their 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 .are seen as arising from lack of information.from the perspective of the unitary framework .management and trade unions. • Line managers should take ownership of their team/staffing responsibilities.• Employees should feel that the skills and expertise of managers supports their endeavors. • The personal objectives of every individual employed in the business should be discussed with them and integrated with the organization‘s needs. 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. Trade unions are deemed as legitimate representatives of employees. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. • The organization's wider objectives should be properly communicated and discussed with staff. They should anticipate and resolve this by securing agreed procedures for settling disputes. inadequate presentation of management's policies. There is a greater propensity for conflict rather than harmony.Realistic managers should accept conflict to occur. inspire and motivate employees. • Independent external arbitrators should be used to assist in the resolution of disputes.

attitudinal restructuring and intra-organizational bargaining. one party‘s gain is another party‘s loss. Here. Under it. For example. Disputants can work together to make the pie bigger.change. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. both the parties are trying to make more of something. Attitudinal restructuring: . This is most commonly explained in terms of a pie. so there is enough for both of them to have as much as they want. Distributive bargaining: It involves haggling over the distribution of surplus.distributive bargaining. or they can focus on cutting the pie up. representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. • Capitalism would foster monopolies. it tends to be more cooperative than distributive bargaining. • Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident. 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. In distributive bargaining. In general. Bargaining Form And Tactics A collective bargaining process generally consists of four types of activities. trying to get as much as they can for themselves. This type of bargaining is also known as cooperative bargaining. integrative bargaining. This type of bargaining is alsoknown as conjunctive bargaining Integrative bargaining: This involves negotiation of an issue on which both the parties may gain. This perspective focuses on the fundamental division of interest between capital and labor. Marx argued that: • Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism. or at least neither party loses. and sees workplace relations against this background. In general. salaries and bonus are discussed. the economic issues like wages. • Wages (costs to the capitalist) would be minimized to a subsistence level. distributive bargaining tends to be more competitive.

. It begins with the presentation of the charter of demands and ends with reaching an agreement. there is considerable scope for discussion. • Negotiations form an important aspect of the process of collective bargaining i. which would serve as the basic law governing labor management relations over a period of time in an enterprise. there may be differences between groups.e. organizational and workplace levels • Collective bargaining is a process in the sense that it consists of a number of steps. wherein one group. For example. It is a form of participation. representing the employers. It develops a bargaining environment and creates trust and cooperation among the parties. • It a bipartite process.This involves shaping and reshaping some attitudes like trust or distrust. representing the employees. it is flexible process and not fixed or static. attitudinal restructuring is required to maintain smooth and harmonious industrial relations. Within the management also. compromise or mutual give and take in collective bargaining. This is a type of maneuvering to achieve consensus with the workers and management. Mutual trust and understanding serve as the by products of harmonious relations between the two parties. sit together to negotiate terms of employment. skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. When there is a backlog of bitterness between both the parties. Intra-organizational bargaining: It generally aims at resolving internal conflicts. Moreover. . and the other. • 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. Even within the union. Trade unions maneuver to achieve consensus among the conflicting groups Characteristics Of Collective Bargaining • It is a group process. The negotiations generally take place between the employees and the management. This means there are always two parties involved in the process of collective bargaining. friendliness or hostility between labor and management. there may be differences.

In this phase both the employer‘s representatives and the union . hours of work. Collective Bargaining Process Collective bargaining generally includes negotiations between the two parties (employees‘ representatives and employer‘s representatives).e. policies. labor can increase productivity and management can pay better for their efforts. 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. It enables industrial democracy to be effective. holiday entitlements. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. • Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other. Prepare: This phase involves composition of a negotiation team. overtime premiums. procedural agreements are put into the company rule book which provides information on the overall terms and conditions of employment and codes of behavior. The collective bargaining process comprises of five core steps: 1. • Collective Bargaining is continuous process. In many companies. such as basic pay. capacities and interests. potentialities. bonus arrangements. 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. Frequently. disputes and discipline. A substantive agreement deals with specific issues. etc. Collective agreements may be in the form of procedural agreements or substantive agreements. The result of collective bargaining procedure is called the collective bargaining agreement (CBA). each party needs something that the other party has. Often employees are represented in the bargaining by a union or other labor organization.• Collective bargaining is a complementary process i. Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. • It is a political activity frequently undertaken by professional negotiators. • Collective bargaining takes into account day to day changes. It uses cooperation and consensus for settling disputes rather than conflict and confrontation.

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. . 3. a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. 4. Importance to employees • Collective bargaining develops a sense of self respect and responsibility among the employees. this phase could be described as ‗brainstorming‘. a recognized way of creating a system of industrial jurisprudence. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached. Settlement: Once the parties are through with the bargaining process. Thus. The first thing to be done is to determine whether there is actually any reason to negotiate at all. production norms and other relevant conditions is required.examine their own situation in order to develop the issues that they believe will be most important. It establishes rules which define and restrict the traditional authority exercised by the management. collective bargaining is. the management should be conducted by rules rather than arbitrary decision making. that is. working conditions. It acts as a method of introducing civil rights in the industry. This stage comprises the time when ‗what ifs‘ and ‗supposals‘ are set forth and the drafting of agreements take place. strategic planning and negotiated change. the parties decide the ground rules that will guide the negotiations. essentially. 2. The exchange of messages takes place and opinion of both the parties is sought. A correct understanding of the main issues to be covered and intimate knowledge of operations. This stage is described as consisting of effective joint implementation of the agreement through shared visions. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. Discuss: Here. Bargain: negotiations are easy if a problem solving attitude is adopted. 5. A process well begun is half done and this is no less true in case of collective bargaining. In a word.

Collective bargaining plays a vital role in settling and preventing industrial disputes. • It helps in securing a prompt and fair settlement of grievances. Collective bargaining leads to industrial peace in the country 2. 2. The discrimination and exploitation of workers is constantly being checked. unilateral actions by the employer are also discouraged. 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. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. Levels of Collective Bargaining Collective bargaining operates at three levels: 1. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them. 3. 3. 4. • The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. increasing their bargaining capacity as a group.• It increases the strength of the workforce. National level 2. • Collective bargaining increases the morale and productivity of employees. It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. 4. Sector or industry level 3. Importance to employers 1. thereby. as a result of which the chances for conflicts are reduced. Moreover. Company/enterprise level Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation . It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry. • It restricts management‘s freedom for arbitrary action against the employees. Importance to society 1. • Effective collective bargaining machinery strengthens the trade unions movement.

which aims at the standardization of the terms of employment in one industry. Objectives Of Trade Unions Trade unions are formed to protect and promote the interests of their members. Unions also offer their members legal representation. It aims at providing a floor for lower-level bargaining on the terms of employment. it emphasizes the point that bargaining levels need not be mutually exclusive. If an employee feels he is being unfairly treated. he can ask /the union representative to help sort out the difficulty with the manager or employer. often taking into account macroeconomic goals. 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. As a supplementary type of bargaining. Trade unions are formed to achieve the following objectives: •Representation Trade unions represent individual workers when they have a problem at work. central employer associations and government agencies. Their primary function is to protect the interests of workers against discrimination and unfair labor practices. Sectoral bargaining.between union confederations. holidays and changes to working practices are the sorts of issues that are negotiated. In these organizations. discuss with management. 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. 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. The third bargaining level involves the company and/or establishment. • Voice in decisions affecting workers . the issues which affect people working in an organization. working hours. Trade unions negotiate with the employers to find out a solution to these differences. Pay. • Negotiation Negotiation is where union representatives. unions are said to be recognized for collective bargaining purposes. includes a range ofbargaining patterns. There may be a difference of opinion between management and union members.

gherao. So. These functions can be broadly classified into three categories: (i) Militant functions. • Member services During the last few years.People can get discounts on mortgages. strike. The evaluation criteria for such decisions may not be fair. they adopt an approach and put up a fight with the management in the form of go-slow tactics. (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. 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. o Financial discounts . Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications. Hence.As well as offering legal advice on employment issues. o Welfare benefits . 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. some unions give help with personal matters. the militant functions of trade unions can be summed up as: . etc.Most unions run training courses for their members on employment rights. trade unions have increased the range of services they offer their members. retrenchment. but also by the management‘s personal policies which include selection of employees for lay offs. these functions of the trade unions are known as militant or fighting functions. promotion and transfer. health and safety and other issues. wills and debt. Thus. like housing. When the unions ffail to accomplish these aims by the method ofcollective bargaining and negotiations. secure better conditions of work and employment. The aim of such activities is to ensure adequate wages. These include: o Education and training . get better treatment from employers. o Legal assistance . etc.The economic security of employees is determined not only by the level of wages and duration of their employment. boycott.One of the earliest functions of trade unions was to look after members who hit hard times. These policies directly affect workers. insurance and loans from unions.

Seeking a healthy and safe working union activity. which the unions raise by subscription from members and donations from outsiders. and also on their competent and enlightened leadership. But they also have a wider role in protecting their interests. Trade unions try to foster a spirit of cooperation and promote friendly industrial relations and diffuse education and culture among their members. They take up welfare measures for improving the morale of workers and generate self confidence among them.g. reading-rooms.• 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. Trade unions help in accelerated pace of economic development in many ways as follows: • by helping in the recruitment and selection of workers. in-door and out-door games. which may be called fraternal functions. school for the education of children. the fraternal functions of trade unions can be summed up as: • To take up welfare measures for improving the morale of workers • 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. Besides. Trade unions play an important role and are helpful in effective communication between the workers and the management. they undertake many welfare measures for their members. These activities.. depend on the availability of funds. They also arrange for legal assistance to its members. if necessary. these. organizing courses for their members on a wide range of matters. Decisions taken through the process of collective bargaining and negotiations between employer and unions are more influential. e. and other recreational facilities. . The central function of a trade union is to represent people at work. library. They provide the advice and support to ensure that the differences of opinion do not turn into major conflicts. Some trade unions even undertake publication of some magazine or journal. They also play an important educational role. and improving their efficiency. Thus.

This has the effect of minimizing favoritism and discrimination. This imposes a great financial and emotional burden upon the worker. Greater Bargaining Power The individual employee possesses very little bargaining power as compared to that of his employer. 3.• by inculcating discipline among the workforce • by enabling settlement of industrial disputes in a rational manner • by helping social adjustments. transfer. It is not practicable to continually resign from one job after another when he is dissatisfied. he can leave the job. 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. Minimize Discrimination The decisions regarding pay. Unions help them in such adjustment. Thus. unsatisfied and frustrated. etc. The personal relationships existing between the supervisor and each of his subordinates may influence the management. Workers coming from different backgrounds may become disorganized. are highly subjective in nature. there are chances of favoritisms and discriminations. Workers have to adjust themselves to the new working conditions. A trade union can compel the management to formulate personnel policies that press for equality of treatment to the workers. have to take into consideration the national integration as well. 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 . All the labor decisions of the management are under close scrutiny of the labor union. promotion. 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 new rules and policies. work. If he is not satisfied with the wage and other conditions of employment. The better course for him is to join a union that can take concerted action against the employer. Trade unions are a part of society and as such.

accident. The first phase (1850 to1900) . illness. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers. 6. All of us wish to share our feelings. those who are members of a union feel that they gain respect in the eyes of their fellow workers. A trade union provides such a forum where the feelings. At times. Sense of Participation The employees can participate in management of matters affecting their interests only if they join trade unions. 5. etc. They can also discuss their problem with‘ the trade union leaders. if he does not. Sense of Belongingness Many employees join a union because their co-workers are the members of the union. 7. The collective voice of the workers is heard by the management and give due consideration while taking policy decisions by the management. Platform for self expression The desire for self-expression is a fundamental human drive for most people. Similarly the workers also want the management to listen to them. Indian trade union movement can be divided into three phases. ideas and opinions of the workers could be discussed. unemployment. Unions help in betterment of industrial relations among management and workers by solving the problems peacefully. injury. Trade Unionism In India The trade unionism in India developed quite slowly as compared to the western nations. 4. he often has a very difficult time at work. opinions and complaints of the workers to the management. ideas and opinions with others. On the other hand. an employee joins a union under group pressure. It can also transmit the feelings. 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 employeremployee relations. ideas. They can influence the decisions that are taken as a result of collective bargaining between the union and the management.

In 1920. four central trade union organizations were functioning in the country: 1. Many of the leaders of this organization were leaders of the national Movement. In addition. 2. The third phase began with the emergence of independent India (in 1947). The partition of country affected the trade union movement particularly Bengal and Punjab. The Hindu Mazdoor Sangh. These unions federated into industrial union known as Textile Labor Association in 1920. These strikes taught workers to understand the power of united action even though there was no union in real terms. For instance Indian national trade Union Congress (INTUC) is the trade union arm of the . The United Trade Union Congress The working class movement was also politicized along the lines of political parties. During 1928. At Ahmedabad. By 1949. The All India Trade Union Congress. In order to regulate the working hours and other service conditions of the Indian textile laborers. the wages were also low and general economic conditions were poor in industries. 3. 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.During this phase the inception of trade unions took place. Capitalists were only interested in their productivity and profitability. the working and living conditions of the labor were poor and their working hours were long. The Indian National Trade Union Congress. occupational unions like spinners‘ unions and weavers‘ unions were formed. In 1926. under the guidance of Mahatma Gandhi. and 4. N N Joshi that became operative from 1927. Between 1918 and 1923. the First National Trade union organization (The All India Trade Union Congress (AITUC)) was established. the Indian Factories Act was enacted in 1881. many unions came into existence in the country. All India Trade Union Federation (AITUF) was formed. The second phase (1900 to 1946) This phase was characterized by the development of organized trade unions and political movements of the working class. Trade union law came up with the efforts of Mr. As a result. Small associations like Bombay Mill-Hands Association came up by this time. During this period. Many strikes took place in the two decades following 1880 in all industrial cities. A strike was launched by these unions under the leadership of Mahatma Gandhi who turned it into a satyagrah.

Lenin Sarani (UTUC . Insurance and Petroleum industries. The rural workers. 2. The Indian labor markets consist of three sectors: 1. Trade Unions Co-ordination Centre (TUCC) 11. white-collar employees. All India Trade Union Congress (AITUC) 2. Indian Federation of Free Trade Unions (IFFTU) 7. National Labor Organization (NLO) 10. and 3. Hind Mazdoor Sabha (HMS) 6. which employs 8 per cent of workforce. supervisors and managers are also organized by the trade unions. National Front of Indian Trade Unions (NFITU) 9. Hind Mazdoor Kisan Panchayat (HMKP) 5. Besides workers. Indian National Trade Union Congress (INTUC) 8. the industrial relations system in India sought to control conflicts and . The urban informal sector (which includes the growing software industry and other services. as for example in the Banking. United Trade Union Congress . Centre of Indian Trade Unions (CITU) 4.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. growing 2% annually. United Trade Union Congress (UTUC) and 12. who constitute about 60 per cent of the workforce. At present there are twelve Central Trade Union Organizations in India: 1. Bharatiya Mazdoor Sangh (BMS) 3. Organized sector. Trade unions in India The Indian workforce consists of 430 million workers. The AITUC is the trade union arm of the Communist Party of India. not included in the formal sector) which constitutes the rest 32 per cent of the workforce.Congress Party.

• HR policies and forms of work are emerging that include. no outside affiliation. especially in multi-national companies.g. • Under pressure some unions and federations are putting up a united front e. job rotation etc. Employers opted for workforce reduction. but now in sectors where it was not so. Thus. banking. layoffs and retrenchment policies. Now. • Another trend is that the employers have started to push for internal unions i. • In the expansionary economy there is a clear shortage of managers and skilled labor. industrial disputes and the like. • HRM is seen as a key component of business strategy. On the other hand. globalization brought major changes in industrial relations policy in India. the industrial relations policy began to change. However. The basic purpose of these laws was to protect labors. 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 .e. • Training and skill development is also receiving attention in a number of industries. With the coming of globalization. With the advent of liberalization in1992. variable compensation. 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.disputes through excessive labor legislations. pharmaceuticals. these protectionist policies created an atmosphere that led to increased inefficiency in firms.g. • Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition e. 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. in other industries where the demand for employment is increasing are experiencing employment growths. 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. are also facing pressures to follow decentralization. • The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions. introduced policies of voluntary retirement schemes and flexibility in workplace also increased. multi-skills. the policy was tilted towards employers. The changes can be summarized as follows: • Collective bargaining in India has mostly been decentralized.

hours. Underemployment also refers to a situation where a major portion of labor force is unemployed. whether in terms of compensation. for example paying low wages to a highly skilled employee. or level of skill and experience. It is the percentage of working age people who have jobs or are employed. without paid employment or self-employment and are currently either available for work or are seeking any work are considered to be unemployed. 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: Labor force includes all persons classified either as employed or unemployed during a specified period of time. The working-age population is the population above a certain reference age like15 years old and over or 15–64. Underemployed persons: Workers who are employed. usually a day or a week.for jobs. wage and salary earners. that is. but not in the desired capacity. etc. 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. casual workers and unemployed. Underemployment rate: It is the ratio of underemployed to either total labor force or total employment Labor Market In India . Labor force participation rate: It is the number of persons in the labor force as a percentage of the working-age population. Labor force can be categorized as self-employed. Employment rate: It is ratio of employed persons to the total labor force. The skills of such persons are underutilized. They are not entitled to any paid holiday leave or paid sick leaves. Unemployment rate: It is the ratio of unemployed people to the total labor force. It also includes the employers who compete for workers. Unemployed persons: The persons in the labor market who are without work.

the workforce was estimated to be 407 million. subsisting on wage employment. The labor force has grown from 276.1%. . self-employed are most loosely connected to labor market because of the possibilities of work-sharing and work spreading in a self-employed enterprise. Same is the case with those unemployed who are actively seeking work.3 million to 385. During the year 1999-2000. 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. 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. Non-contractual casual laborers have the closest connection to labor market on almost day-to day basis. who constitute about 60% of the workforce • Organized of the formal sector. casual workers and unemployed. Labor force can be divided into four categories: self employed workers. and • Urban unorganized or informal structure which represents the 32% of the workforce. The casual wage workers both in public work and other types of work don‘t have any job security or social security. 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. that constitutes about 8% of the workforce. Onethird of rural households are agricultural labor households.farm enterprises are defined as self employed. self-employed. or employed as casual wage laborers. • The chart below describes the estimated increase in the number of labors from 1977-78 to 2004-05. Of these.3 million out of which 60% are in agriculture. Persons who are engaged in their own farm or non.5 million between 197778 and1993-94 showing an annual growth rate of 2. The labor force in year 2006 has grown up to 509. Only about 9 percent of the total workforce is in the organized sector.The Indian labor market can be categorized into three sectors: • Rural workers . 12% are employed in industries and the residual 28% are in services. the remaining 91 percent are in the unorganized sector.

34 million enterprises . there were 44. 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. their share being around 62 per cent (lines 10 to 12 of Table). The table given below classifies labor force across male-female and rural-urban dimensions. The regular salaried/wage employees are those working in others farm or non. 1999-2000 also covered nonagricultural enterprises in the informal sector in India. include persons engaged regularly on an hourly basis. a major chunk of labor force is employed in the unorganized sector.2000 was of the order of 406 million. out.74 million workers were in rural areas whereas 19. etc.71 million workers employed thereof in the nonagricultural informal sector of the economy. are informal workers. temporary workers.1. • 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. This category of persons may. • Those reporting wage and salary earning dominate in the urban labor force. Organized and Unorganized Labor In India. Among these 25. According to the results of the National Sample Survey conducted in 1999-2000.35 million enterprises and 79.workers.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. This category includes those getting time wage as well as those receiving piece wage or salary and paid apprentices. total work force as on 1.These workers. either in formal or informal sector or in private households. The unorganized / informal employment consists of causal and contributing family workers. 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. sick or annual leave or for any social security benefits given by the employer. As per that survey. self employed persons in un-organized sector and private households. therefore. and other employed in organized and unorganized enterprises that are not eligible either for paid.01 million enterprises employing 39. both full time and part time. The NSS 55th round.

The share of unorganized employment in the economy has displayed remarkable steadiness over the years. Out of 397million workers in 1999-2000. Percentage of female workers to the total workers is 20. Out of these.5 million part times. textiles etc. Among the workers engaged in the informal sector. 172. Since 2004. Thus. Thus unorganized sector has a crucial role in our economy in terms of employment and its contribution to the National Domestic Product.34 thousand are public sector enterprises while 121.2 percent. showing only a marginal increase from 24 million in 1983 to 28 million in 1999-2000.with 39.4% has been recorded in the number of . 1987-88.84 percent of the employment in agriculture is informal. 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%. savings and capital formation.43 thousand are in private sector. In the non-agricultural sector. In fact. 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. construction.21 million are full time and 9. 98. an increase of 1. In the matter of savings the share of household sector in the total gross domestic saving mainly unorganized sector is about three fourth.77 thousand industrial establishments. Employment In India The organized sector in India consists of 293. 1993-94 and 1999-2000. land transport. 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.97 million workers in the urban area. 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 clear that employment opportunity in the organized sector has remained more or less stagnant. 70. The largest numbers of informal workers are in agriculture. the highest numbers of informal employees are in retail trade. It is evident that throughout this period a large portion of the workforce in India is found to be employed in the unorganized sector. The table below describes major employment trends for the organized and unorganized sector for the years 1983.

West Bengal.establishments in the organized sector.2%. The Local Bodies and State Govt.9% followed by Quasi Govt. that is. recorded a negative growth of 2. While analyzing the figures zone wise.52 lakh persons. in which the Central Govt. with a negative growth of 2.5 percent. Chandigarh and Andhra Pradesh.1% in employment. Local Bodies and State Govt.6 percent was seen in Central Zone followed by 1 percent in Northern Zone and 0. the employment in public sector decreased by 1 percent while private sector increased by 2.58 lakh while in 2004.6 percent in Southern Zone whereas the highest increase was 2 percent in Western Zone followed by 1. were also subjected to a negative growth of 0. The public sector employs about 180. Karnataka. Assam and Nagaland. As on the 31st March. The same trend continued in 2005 also. highest decrease of 1. it was 264. shows maximum negative growth in employment followed by Quasi Govt. Decrease in employment above 1 percent was observed in Madhya Pradesh Uttar Pradesh. The branch wise analysis of the public sector data reveals that Central Govt. An increase of more than 3 percent in employment was observed in Goa.1 percent in . Himachal Pradesh and Gujarat and 1 percent or more in Pondicherry..4% and 0. 2005 the total employment in the organized sector was estimated to be 264. Uttaranchal.3% respectively State wise analysis reflects that only Punjab and Kerala recorded a decrease of more than 3 percent.7 lakh persons while the private sector employs 84.43 lakh. The negative growth of employment was recorded in public sector while private sector showed an increasing trend. This means there has been an increase of 0.

North-Eastern Zone and 0. in the rural as well as urban areas.3 2001 108.9 percent in Eastern Zone in employment Women Employment Women workforce constitutes an integral part of total workforce in India. In the urban areas. Amongst rural women workers. The work participation rate for women has increased significantly.16 Lacs women employees were engaged in the organized sector.68 per cent in 2001.1 percent and by 2. women constituted 19 per cent of the total workforce. Table 1: Number of Women Job Seekers Year Number of Women (in lacs) Percentage to total 1999 99. The zone wise analysis showed an increase of 8 percent in NorthEastern Zone.0 • .3 lacs in 1999 to 106.9 2003 107. followed by Western Zone (5.0 2004 106. As on the 31st March.95 lacs (42per cent) in the Private Sector. In 1981. Eastern Zone (3per cent) and Central Zone (1.6per cent in 1999 to 26. In the women workforce.6 2000 104. women from rural areas are greater in number as compared to the urban women.1 lacs in 2004.1 26.21 lacs (58per cent) in the public sector and 20. On 31st march 2004.73 per cent in 1991 and 26.2per cent).5 25. work participation rate for women was only 19.2per cent in 2004. Thus the percentage of women job seekers to the total job-seekers has also increased from 24. 2005 a total number of 50. Employment of women in public sector increased by 1. women workers are primarily employed in the unorganized sectors.8 percent Some Vital Statistics • The number of women job seekers has increased from 99.8 25.0 25.3per cent) and Northern Zone (1.5 26. The participation of women in the labor force has always been lower than that of men. a majority is employed in agriculture and some are employed in cottage industries.3 24.5 percent in the private sector during 2004-2005. Only Southern Zone registered a marginal dip of 0.3per cent).9 2002 106.67 per cent which increased up to 22. out of which 29.

Insurance Real Estate & Business Services. • As far as industries are concerned. 1. 1. 2004. there were about 49.67 per cent in 1981.4 26. An increase of 7. On the other hand. This is because the reason for discipline is to improve performance rather than punishing the employee .1 2001 8525. • Women workers constituted 19 per cent of the total organized sector employment in the country.5 per cent in Agriculture.8 per cent was registered in Wholesale and Retail Trade followed by 5.4per cent in 2004. Discipline can be positively related to performance.4 per cent in Community. Forestry & Fishing.8per cent of the total educated job-seekers.3 lacs) while minimum number of women job-seekers are in Rajasthan (1.34 lacs women workers employed in the organized sector (Public and Private Sector).3per cent to 70.68 per cent in 2001. Storage & Communications. This shows an improvement over 22.0 lacs). Educated Women at the end of 2004 accounted for 25.7 thousand.1per cent in women employment. Theodore Roosevelt has said ―With self-discipline almost everything is possible‖.8 2003 8032.6 per cent in Mining and Quarrying.7 per cent in Electricity.6 2004 7537.8 • • The state wise analysis reflects that Kerala has the maximum (21. • The work participation rate for women was 25.1 lacs) women jobseekers followed by West Bengal (19.2 per cent in Transport. 5.7 25. As on 31st March. in 2005. the manufacturing industry faced a dip of 1.73 per cent in 1991 and 19.4 per cent in the previous year. Effective Discipline Discipline is the key to success.2 per cent in Financing. Table 2: Number of Educated Women Job Seekers Year Number of Women Percentage to total 2000 7911. Gas & Water.3 lacs) and Tamil Nadu (15. as compared to 18.1 2002 7921. It is the bridge between goals and accomplishments. 5. 1. Social and Personal Services and 1.5 per cent in Construction. other industries reflected an increase in women employment.4 26. Effective discipline should be aimed at the behavior. Hunting.7 27.6 28. Self discipline makes employee realize what is required at work. • The percentage of educated women job seekers among the total women job seekers has gone down from 73.• Number of Educated Women Job Seekers as on December 2004 was 7537. and not at the employee personality.

Moreover. Thus less chance will be left for the employee to say the he ―did not know‖ about the policy. In a progressive discipline approach the severity of actions to modify behavior increases with every step as the employee continues to show improper behavior. 4. 7. This will unable them to claim that they have not been notified. Discipline should be fair: The disciplinary decision should be fair enough for the employee. The greater the uniformity. All these action plans must be communicated to the employees.Factors necessary for effective disciplinary system include: 1. 10. Managers should limit their emotional involvement in the disciplinary sessions. This will ensure uniformity and fairness of the system and will minimize the arbitrariness of the disciplinary system. discipline decisions taken by trained supervisors are considered fair by both employees and managers. Information regarding penalties: The employer should define the penalties and other actions like warnings. discharge and dismissal well in advance. 3. Centralization of discipline: Centralized means that the discipline decisions should be uniform throughout the organization. Review discipline decisions: The disciplinary decisions must be reviewed before being implemented. 5. Documentation: Effective discipline requires accurate. Inconsistent discipline leads to confusion and uncertainty. 8. an internal fairness is to be maintained. reprimands. The advantage of this approach is that employees can‘t take it for granted. regarding the same. 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. . higher will be the effectiveness of discipline procedure. Discipline shall be progressive: Discipline system should be progressive in nature. 9. Managers should try to minimize the ill feelings arising out of the decisions by judging the offensive behavior and not by judging the person. Moreover. written record keeping and written notification to the employees. Both over-penalization and under-penalization are considered to be unfair for the problem employee. Training of supervisors is necessary: Supervisors and mangers need to be trained on when and how discipline should be used. 6. in advance. It is necessary to provide training on counseling skills as these skills are used while dealing with problem employees. that is. two employees who have committed the same offense should be equally punished. Impersonal discipline: Discipline should be handled impersonally. 2. Consistent discipline helps to set limits and informs people about what they can and cannot do. 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.

Approaches to Discipline Handling employee misconduct is a very critical task to be performed by the senior managers. Disciplinary action should be prompt: The effective discipline should be immediate. The basic objectives of Code of Discipline are to: • Maintain peace and order in industry. there are two approaches to discipline employees. The longer time lag between the misconduct offense and the disciplinary action will result in ineffectiveness of the discipline. every company opts for a discipline policy which describes the approach it will follow to handle misconduct Broadly defined. • 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. a Code of Discipline has been laid down which applies to both public and private sector enterprises. They are: • Positive Discipline Approach • Progressive Discipline Approach Code Of Discipline In Industry To maintain harmonious relations and promote industrial peace. • No unilateral action should be taken in connection with any industrial matter. To manage discipline among employees. It specifies various obligations for the management and the workers with the objective of promoting cooperation between their representatives. intimidation and violations of rules and regulations governing industrial relations. The Code is based on the following principles: • There should be no strike or lockout without prior notice. . Misconduct and other offensive behaviors often lead to decreased levels of productivity as they affect the individual performance of the employees. • Promote constructive criticism at all levels of management and employment.11. intimidation and coercion should not be resorted • The existing machinery for the settlement of disputes should be utilized.

• that they will abide by various stages in the grievance procedure and take no arbitrary action which would by-pass this procedure. To ensure better discipline 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. victimization or go – slow tactics • that they will avoid litigation. settlements and decisions . agreements. 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.• Actions that disturb cordial relationships should be avoided. 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. damage to property and insubordination • to take prompt action to implement awards. intimidation. awards. 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 employee • to take prompt action for settlement of grievances and implementation of settlements. management and unions agree on not indulging into various actions.

The financial records and unpublished data should be kept within the organizations and should not be spread outside the organization. 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. Health and safety: An employer should provide a safe and healthy work environment . 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. religion or physical disabilities. 2. No physical harassments like hitting or pushing are acceptable on part of employees. race. 6. Misusing company resources: Employees should not misuse company resources. the expected behavior and the professional responsibilities.Factors Guiding Code Of Conduct The code of discipline and conduct communicates to the employees. gender. Disclosure of information: The employees should not disclose the company information to third parties and other outside organizations. This means personal interests should not overshadow organizational interests. The Code of Conduct policy of a company is determined on the basis of following factors: 1. 8. The employees should show truthfulness in actions throughout their tenure in the organization. They are provided to them for business purposes and thus. time and other facilities. Honesty and integrity: The organization expects the employees to observe honesty and integrity and such conduct should be fair and transparent. color. intellectual property. especially sexual harassments and verbal harassments. Harassment: The work environment should be free from all kinds of harassments. no discrimination should be done on the basis of caste. it expects the employer to be an equal opportunity employer. 4. The significance of code of conduct is that each employee should behave and perform in a way that preserves the company values and commitments. 9. should be used in a cost effective way. 3. 7. 5. The code expects employees to conduct business with integrity and honesty. that is. Confidentiality: Employees should protect company‘s confidential information. Outside employment: Employees should not indulge in to any kind of concurrent employment without the prior knowledge of employer. Moreover. Equal opportunity employer: This factor expects the employer to be an equal opportunity.

donations. 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. A health and safety committee can be set up by the employer consisting of representatives of workers as well. Proper cleanliness and lightening should be provided. and (iii) personal factors 1. Payment and gifts: The employees should neither accept nor offer any kind of illegal payments. etc Various sources of grievance may be categorized under three heads: (i) management policies. (ii) working conditions. unjust or inequitable. 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. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair.to its employees. 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. 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. 10. remuneration and gifts from outsiders. Grievance resulting from inter-personal factors include o Poor relationships with team members o Autocratic leadership style of superiors . In an organization.

On the other hand. If the employee is not satisfied with superior‘s decision. Grievances are symptoms of conflicts in industry. In this procedure. Without a grievance procedure. management should be concerned with both complaints and grievances. the aggrieved employee has to follow a step by step procedure for getting his grievance redressed. then he discusses his grievance with the departmental head.o Poor relations with seniors o Conflicts with peers and colleagues It is necessary to distinguish a complaint from grievance. 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. The departmental head discusses the . in bigger organizations. it is believed that open door policy is suitable for executives. Moreover. Such a policy works well only in small organizations. Open door policy 2. Therefore. a grievance is a complaint that has been put in writing and made formal. A complaint is an indication of employee dissatisfaction that has not been submitted in written. whenever an employee is confronted with a grievance. because both may be important indicators of potential problems within the workforce. Step ladder policy: Under this policy. Therefore. 1. the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. management may be unable to respond to employee concerns since managers are unaware of them. Step-ladder policy Open door policy: Under this policy. top management executives are usually busy with other concerned matters of the company. The grievance procedures differ from organization to organization. operational employees may feel shy to go to top management. However. he presents his problem to his immediate supervisor.

In the 16th session of Indian Labor Conference. The management must communicate its decision to the worker within 7 days STEP 4: If the grievance still remains unsettled. the case may be referred to voluntary arbitration.problem with joint grievance committees to find a solution. 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. who is a representative of management. The Grievance Committee makes its recommendations to the manager within 7 days in the form of a report. Employee Health and Safety For smooth functioning of an organization. he can take the grievance to Grievance Committee. STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head. a model for grievance procedure was drawn up. If the chief executive also fails to redress the grievance. 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. if the committee also fails to redress the grievance. The Model Grievance Procedure specifies the details of all the steps that are to be followed while redressing grievances. the aggrieved employee can take his grievance to head of the department. workers‘ representatives are to be elected for a department or their union is to nominate them. then it may be referred to chief executive. STEP 2: If the departmental representative fails to provide a solution. 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. He has to give his answer within 48 hours. the employer has to ensure safety and . However. then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties. This model helps in creation of grievance machinery. According to it. These steps are: STEP 1: In the first step the grievance is to be submitted to departmental representative. who has to give his decision within 3 days.

It will include the risk of accidents caused due to machinery. 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 • 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. conduct formal safety training. 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 .security of his employees. fire or diseases. But not all of the approaches focus on contribution of both work design and employee behavior to safety. making employees aware about the health and safety policy of the company. Safety refers to the act of protecting the physical well being of an employee. The supervisors and departmental heads are responsible for maintaining safe working conditions. The terms health. Health and safety form an integral part of work environment. but also emotional and mental well being. A work environment should enhance the well being of employees and thus should be accident free. Security refers to protecting facilities and equipments from unauthorized access and protecting employees while they are on work. Health is the general state of well being. An HR manager can help in coordinating safety programs. etc. In organizations the responsibility of employee health and safety falls on the supervisors or HR manager. safety and security are closely related to each other. It not only includes physical well being.

5.‖ Ergonomics is the study of physiological. 3. Ergonomics: The term comes from the Greek word ergon. This is generally because more problems are caused by careless employees than by machines or employer negligence. emergency stop buttons and other provisions help in reducing the accidents considerably. Problems of back ache. Cumulative Trauma and Repetitive Stress: Cumulative trauma disorder occurs when same muscles are used repetitively to perform some task. and placement of controls. and proper lighting affect job performance. Occupational Health & Safety Management System The Bureau of Indian Standards has formulated a standard for Occupational health and . They can be summarized as follows: 1. et al. distance between work areas. Many organizational and individual issues emerge in management of employee health and safety.work design and employee behavior work in coordination towards it. 6. Employees encounter high levels of mental and physical stress also. eye strain and headache arise due to long working hours spent in front of computers. Engineering of Work Equipments and Materials: Accidents can be prevented in a way by proper placements of dangerous machines. Ergonomics is taken into consideration when designing the workstation for computer operators. It is the interface between men and machines. and engineering design aspects of a job. inadequate ventilation. et al. cubicle arrangement. 2. equipment layout. 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). Some factors that lead to sick buildings include poor air quality. 4. noise levels. kinds of materials used. This results in injuries of musculoskeletal and nervous system. lighting. tools. which means ―work. Physical Work Settings: The physical settings of work affect the performance of employees to a great extent.‖ and omics which means ―management of. stench of adhesives and glues. including such factors as fatigue. Other work setting factors include size of work area. psychological. Moreover design of such machines and equipments also plays an important role in safety. improper cleanliness. rodents. Some of these factors include temperature. A positive attitude towards work environment and other practices promotes employee safety. Accident Rates and Individuals: An individual approach to safe environment helps in reducing the accident rates. Providing safety guards and covers on equipments.

If the report comes out to be satisfactory. otherwise more information is sought from the applicant organization. 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. Organizations willing to adopt OH&S Management System have to obtain a license for the same. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions. creation of industrial harmony through infrastructure for health. it is accepted. initial certification audit takes place on the basis of which an audit report is prepared by the audit team. Any OHS management system adopted by an organization should incorporate all the requirements specified in this standard. it is scrutinized for all the requirements. recommendations for the award of certifications are made by the team and the certificate is granted to the organization by the concerned authorities. If the application is complete. For this purpose. This standard is known as IS 18001:2000 Occupational Health and Safety Management System. industrial relations and insurance against disease. Once an application is received by the regional office of BIS.safety management systems. Process of OH&S Management System certification * Source: Bureau of Indian Standards (BIS Home Page) Employee Welfare Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Also. manual or the documentation of OHS management system is to be submitted along with the application. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. the applicant organization is asked to take corrective actions after which another audit is conducted. Immediately after this. If the application is accepted. However if the report does not meet all the requirements. . an adequacy audit takes place and a preliminary visit (pre-audit) is conducted by an audit team. they have to ensure that they are operating according to the IS 18001:2000 standard.

government. medical benefits. healthy. • Employers get stable labor force by providing welfare facilities. Labor welfare includes various facilities. To make the workers happy and satisfied 3. • Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. 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. 5.accident and unemployment for the workers and their families. Labor welfare schemes are flexible and ever-changing. To provide better life and health to the workers 2. 4. 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 Labor welfare has the following objectives: 1. economic betterment and social status. To relieve workers from industrial fatigue and to improve intellectual. employees or by any social or charitable agency. Workers take active interest in their jobs and work with a feeling of involvement and participation. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. etc are reduced to a greater extent by the welfare policies . services and amenities provided to workers for improving their health. The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce. Welfare measures may be introduced by the employers. New welfare measures are added to the existing ones from time to time. 2. cultural and material conditions of living of the workers. loyal and satisfied labor force for the organization. The very logic behind providing welfare schemes is to create efficient. • The social evils prevalent among the labors such as substance abuse. and education and recreation facilities for workers‘ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining 3. efficiency. The basic features of labor welfare measures are as follows: 1.

educational and recreational facilities to workers employed in beedi industry and non-coal mines and cine workers.to Rs. consumption of limestone & dolomite and consumption and export of iron ore. export of mica. provide social security and raise their standard of living. are administered by Ministry of Labor. 1976 provides for levy of cess by way of excise duty on manufactured beedis from Re. medical care. manganese ore & chrome ore. Majority of labor force in India is working in unorganized sector. 1972 • The Iron Ore. In order to provide social security to such workers. 1976 • The Cine Workers‘ Welfare Fund Act. . This is presently Rs 2 per 1000 beedis with effect from 28th June 2000. Five different welfare funds. feature films.per thousand manufactured beedis. which are governed by different legislations. 1946 • The Limestone and Dolomite Mines Labor Welfare Fund Act.1/. The five legislations governing welfare funds are as follows: • The Mica Mines Labor Welfare Fund Act. The purpose of these welfare funds is to provide housing.Labor Welfare Fund Labor welfare refers to all the facilities provided to labor in order to improve their working conditions.5/. Manganese Ore and Chrome Ore Mines Labor Welfare Fund Act. Government has introduced Labor Welfare Fund to ensure assistance to unorganized labors. An explanation of the cess levied under different legislations is given below: • Beedi Workers Welfare Cess Act. 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.

6/. health and welfare) 1986. Employee Welfare Schemes Organizations provide welfare facilities to their employees to keep their motivation levels high. 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. 1976 provides for levy and collection of cess on Iron Ore. at such rate not being less than one thousand rupees and not exceeding twenty thousand rupees. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety.and Rs. .1/. Manganese Ore & Chrome Ore Mines Labor Welfare Cess Act.6/. Central Board of Film Certification. Drinking Water: At all the working places safe hygienic drinking water should be provided. Dock Workers Act (safety.with effect from 27th December 2000. 2. Mines Act 1962. 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. 3. • The Limestone and Mines Labor Welfare Fund Act. This is 4.• The Cine Workers Welfare Cess Act. suitable seating arrangements are to be provided. These include provisions provided in industrial acts like Factories Act 1948. Facilities for sitting: In every organization.to Rs.to Rs.3/.5% ad valorem on export with effect from 1st November 1990. 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. especially factories. 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.respectively. The employee welfare schemes can be classified into two categories viz. 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. The rate of cess on Limestone and Dolomite is Re.1/-.1/. provides for levy and collection of cess on all mica exported as duty of Customs not exceeding 6. on every feature film submitted to the Chairman. statutory and non-statutory welfare schemes. 4. • Mica Mines Labor Welfare Fund Act. Manganese Ore & Chrome Ore between 50p to Re. 1946. Re.25% ad valorem. • The Iron Ore. 1981 provides for duty of cess.

such as ware houses. 10. 7. Causes Of Industrial Disputes . toilets. NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following schemes: 1. wash basins. 6. Maternity & Adoption Leave – Employees can avail maternity or adoption leaves. bathrooms. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs 3. Washing places: Adequate washing places such as bathrooms. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization. Harassment Policy: To protect an employee from harassments of any kind. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up 2. 9. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. guidelines are provided for proper action and also for protecting the aggrieved employee. etc. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees. 7. disease or injury or pregnancy. Paternity leave policies have also been introduced by various companies. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. 6. Spittoons: In every work place. 8. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness.5. store places. 5. 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. Adequate lockers are also provided to the workers to keep their clothes and belongings. 4. 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. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply. wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.

and only 0.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3. only 0. political factors.4% of disputes. sympathetic strikes. In 2002.9%) of the total time-loss of all disputes. leave and holidays without pay. • Wages and allowances: Since the cost of living index is increasing. 40.2% and 0.2% of the disputes were caused by personnel. • Bonus: Bonus has always been an important factor in industrial disputes.4% during 2003 and during 2004 increased up to 26.9% in 2003. ill treatment by staff members.6% in 2004 and 2005 respectively.5% and 3. This percentage was 20. During the year 2002. which rose up to 36. wherein 11. disputes caused by personnel were 14. • Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. unjust layoffs and retrenchments. The economic causes will include issues relating to compensation like wages. A similar trend was observed in 2004 where indiscipline accounted for 40. During the year 2003.2% respectively.Inter/Intra Union Rivalry .2%. • Indiscipline and violence: From the given table. Similarly in 2004 and 2005. wages and allowances accounted for 21. while 2.4% were caused by retrenchment. • Miscellaneous: The miscellaneous factors include . 29. 6.6% of disputes were caused by retrenchment and layoffs.8% of disputes. workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living.4% and 41. followed by cause-groups wage and allowance and personnel with 20.6% of disputes were caused due to indiscipline respectively.4% and 0. working hours. During 2002. In year 2005. indiscipline accounted for the highest percentage (36. The non economic factors will include victimization of workers. • Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes.4% and11. allowances.4% of the disputes were because of leaves and working hours.4% of disputes were caused by demand of higher wages and allowances. bonus. In 2003. During 2004.6% of the disputes were caused by personnel. 21.9% of disputes were caused because of indiscipline.The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes.1% while those caused by retrenchment and layoffs were 2. In 2002. indiscipline etc.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. In 2005. and conditions for work.4% respectively. only 9. 0. it is evident that the number of disputes caused by indiscipline has shown an increasing trend. a similar trend could be seen.

In the recent past.Non-implementation of agreements and awards etc. The country. Escorts.Work Load . 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.14 lakh mandays were lost due to work stoppages in 23 industrial disputes during January to March 2007. only 57 disputes were recorded in public sector which resulted in a wage loss of 79 Crores. Though there has been a decline in the number of strikes. maximum number of disputes has been recorded in the manufacturing. Apollo. To support this. Analysis Of Industrial Disputes The number of industrial disputes in country has shown slow but steady fall over the past ten years. lost 25.Charter of Demands . the country still witnessed some major strikes between 2004 and 2006. and Skumars factories and in SBI bank. only 45 cases of disputes have been recorded during the first four months of 2007. it is clear that the private sector has witnessed greater number of disputes as compared to the public sector.It is being estimated that this trend will continue in 2007 as well. like those in Honda. a deeper look at the data reveals that the number of mandays (i. the total number of disputes was 1097 which fell by more than half to 440 in 2006. .e. 399 disputes were recorded in the private sector. More than 2. In 2005..4 million mandays of work annually between 1998 and 2006. In 1998.. on an average. However. In contrast to this. On analyzing the data sector wise. agriculture and mining and quarrying industries.Standing orders/rules/service conditions/safety measures . which might have affected its industrial output. This significant decline is attributed to the serious attempts made by industries to improve industrial relations with their workers.

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. When workers collectively cease to work in a particular industry. Firstly. Demands made by strikers can range from asking for higher wages or better benefits to seeking changes in the workplace environment. they are said to be on strike. Provident fund and gratuity • Retrenchment of workmen and closure of establishment . a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Labors withhold their services in order to pressurize their employment or government to meet their demands. According to Industrial Disputes Act 1947. In a strike. Secondly.Strikes A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems. a strike is ―a cessation of work by a body of persons employed in an industry acting in combination. profit sharing. This definition throws light on a few aspects of a strike. it also includes the refusal of a number of employees to continue work under their employer. a group of workers agree to stop working to protest against something they think is unfair where they work. 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. or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment. or a refusal under a common understanding of any number of such persons to continue to work or to accept employment‖.

it is called a sympathetic strike. They do not stop work. Slow Down Strike: Employees remain on their jobs under this type of strike. In June 1998. all or a significant number of union members call in sick on the same day. 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. bonus and other facilities such as increase in privilege leave and casual leave. allowances like traveling allowance. Sit down Strike: In this case. But do not work. They also refuse to leave. rather than on any one employer. Economic Strike: Under this type of strike. workers ask for increase in wages. house rent allowance. workers do not absent themselves from their place of work when they are on strike. 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. However. 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. They keep control over production facilities. Such a strike is also known as 'pen down' or 'tool down' strike. 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. but restrict the rate of output in an organized manner. These strikes are usually intended to create political pressure on the ruling government. which makes it very difficult for employer to defy the union and take the workers' places. a significant number of advocated went on . because they just use their sick leave that was allotted to them on the same day. 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.• Dispute connected with minimum wages TYPES OF STRIKE 1. In 2004. General Strike: It means a strike by members of all or most of the unions in a region or an industry. Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions. They adopt goslow tactics to put pressure on the employers. It may also be an extension of the sympathetic strike to express generalized protest by the workers. 2. 4. 3. labors stop their work to enforce their economic demands such as wages and bonus. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. They don‘t break any rules. Sick-out (or sick-in): In this strike. dearness allowance. 7. Workers show up to their place of employment. 5. but they refuse to work. 6. In these kinds of strikes.

A lockout may happen for several reasons. The main object of . If picketing does not involve any violence. PICKETING When workers are dissuaded from work by stationing certain men at the factory gates. When only part of a trade union votes to strike. Thus. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement. Acc to Industrial Disputes Act 1947. in which employees refuse to work. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. This is different from a strike. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages. 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. if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive.wildcat strike at the City Civil Court premises in Bangalore. Pickets are workers who are on strike that stand at the entrance to their workplace. 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 GHERAO Gherao in Hindi means to surround. 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. It is declared by employers to put pressure on their workers. 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. The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins. a lockout is employers‘ weapon while a strike is raised on part of employees. the employer may declare a lockout until the workers end the strike. it is perfectly legal. such a step is known as picketing. 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.

agriculture and mining and quarrying industries during 2005. .81 million man-days. As can be seen from the below chart. The number and seriousness of strikes and lockouts have varied from year to year.76 million mandays. As compared to previous years. was down by 4.05 million mandays.4 per cent in 2005. Maximum time-loss was caused by 297 lockouts during 2003 which resulted in a time-loss of 27.825 strikes and lockouts were recorded. taken together. from which 10. there were only 154 strikes and 192 lockouts across the country. which resulted in the time loss of 3. During 2005. while the number of lockouts stood at 229 with a loss of 18. 1.76 million mandays were lost due to strikes and lockouts.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. The number of strikes and lockouts. As a result. Industrial disturbances were concentrated mainly in manufacturing (textile).3 million workers were involved in these labor disputes. in 2006 only 13. 426 strikes and 325 lockouts were observed which resulted in total timeloss of 28. In January-September 2006. there has been a steep decline in the number of strikes and lockouts. This continuous decline in strikes and lockouts indicates that the industrial relations in India are improving. 24. More than 1.60 million man-days respectively. West Bengal experienced the maximum instances of strikes and lockouts (19216) followed by Kerala (3619) and Rajasthan (19247). as compared to the statistics of 2005.16 million man-days and 10.86 million mandays. During 2000. There were 227 strikes in 2005.5 million to lockouts.6 million were lost to strikes and 13. resulting in the loss of 10. financial intermediation.1 million workdays were lost.

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. If a strike or lockout has already taken place and is being referred to a Board. 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. a notice should be issued on the day on which the lockout is declared just to intimate the appropriate authorities about the lockout. The same rule applies to the employers. if the notice period is not served or if the strike is held within the fourteen days of issuing the notice of strike. However. 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. that is.Prohibition of Strikes and Lock-Outs Employees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947. cannot go on a strike without giving a notice of strike within the six weeks before striking. Employees. In similar way. 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. According to . 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. the continuance of such a strike or lock out is not illegal provided it is in compliance with the provisions of act. 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. 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. Moreover. 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.

• Mutual Accommodation. or with fine which may extend to one thousand rupees. The employers must recognize the right of collective bargaining of the trade unions. confidence and respect. Therefore.‖ The management should be willing to co-operate rather than blackmail the workers. • Mutual Trust: Both management and labor should help in the development of an atmosphere of mutual cooperation. Similarly. The management should sincerely implement the settlements reached with the trade unions. 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.Section 25 of Industrial Disputes Act 1947. 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. no person should provide any sort of financial aid to any illegal strike or lock-out. One must clearly understand that conflicting attitude does not lead to amicable labor relations. The employers can easily ignore a weak union on the plea that it hardly represents the workers. joint consultation and other methods. If the agreements are not implemented then both the union and management stop trusting . • 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. • Sincere Implementation of Agreements. labor unions should persuade their members to work for the common objectives of the organization. it may foster union militancy as the union reacts by engaging in pressure tactics. In any organization. The agreement with such a union will hardly be honored by a large section of workforce. 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. Management should adopt a progressive outlook and should recognize the rights of workers. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes. there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude. This will improve communication between managers and workers. The agreements between the management and the unions should be enforced both in letter and spirit. increase productivity and lead to greater effectiveness.

each other. An environment of uncertainty is created. To avoid this, efforts should be made at both ends to ensure the follow up of the agreements. • Sound Personnel Policies: The following points should be noted regarding the personnel policies. The policies should be: o Formulated in consultation with the workers and their representatives if they are to be implemented effectively. o Clearly stated so that there is no confusion in the mind of anybody. o Implementation of the policies should be uniform throughout the organization to ensure fair treatment to each worker. • Government‘s Role: The Government should play an active role for promoting industrial peace. It should make law for the compulsory recognition of a representative union in each industrial unit. It should intervene to settle disputes if the management and the workers are unable to settle their disputes. This will restore industrial harmony. • Progressive Outlook: There should be progressive outlook of the management of each industrial enterprise. It should be conscious of its obligations and responsibilities to the owners of the business, the employees, the consumers and the nation. The management must recognize the rights of workers to organize unions to protect their economic and social interests. Ethics at work place Ethics are most important in one's life, unethical, whether it is individual or corporation is bad and are doing harm to the society. In corporate social responsibility reports, every company have spell out its policy on ethics of company and follow code of conduct to conduct business and ask the employees to follow ethics and code of conduct to accomplish economic, social and environmental responsibilities of the company to the society. 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, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabad and Pune. Around 55.7 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, says a survey by Team Lease Services. The fourth survey in the World of Work series tries to understand the changing scenario at workplaces in India. It says any company trying to tackle productivity issues needs to check internally. 55% of staff misuse company facilities. 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, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabad and Pune. Surabhi Mathur, general manager, permanent staffing, TeamLease Services, said, ―The acceptable code of conduct in Corporate India is morphing from dogmatic thought police, whose card-carrying members were the HR department, to a more fluid situation that accepts diversity, relativity and materiality. Some people view this as a devaluation, but companies are getting better at defining non-negotiable without interfering in trivia.‖ Nearly 62 per cent of the respondents were willing to use any means to get competitor information. The study further reveals that Kolkata reacted strongly to unethical office behaviour, whereas the most lenient city was Ahmedabad. While Mumbaikars would confront their co-workers directly for unethical behaviour, Ahmedabad believed in the indirect route, according to the report. Hyderabad and Kolkata insisted that leaders and managers should walk the talk on office ethics, with Hyderabad stressing on the need for frequent training on ethics in offices and by increasing open lines of communication. 75% respondents from Bangalore, Hyderabad and Pune conceded they lied to take leave and did not considered it unethical. However 78% of the Kolkatta work force differed on this. Taking credit for subordinate ideas is not unethical said Ahmedabad and Bangalore, the other cities differ with an average score of 42 per cent. One third respondents in Bangalore, Delhi and Hyderabad are unaware of their company‘s ethical policy, while those in Mumbai and Chennai felt they were better information on this. Mumbai, Bangalore and Chennai felt having open lines of communication would help check it. Those in Delhi and Ahmedabad felt flexible work schedule will curtail it. The study commissioned by Team Lease Services and conducted by global research company Synovate in May and June, covered top 500 companies and had a sample size of401. IT majors Infosys, TCS and Wipro have emerged as the three most admired companies in India, followed by Sunil Mittal-led telecom giant Bharti Airtel and another Tata group company Tata Steel in the top five, according to a list prepared by the Wall Street JournalAsia. From the survey it is evident that the ethics in corporate sector are eroding. It is the duty of individual employee and employer to enforce ethics for benefit of the company and society. An ethical company will achieve its social economic and environmental objectives towards society, it should feel it is its duty and responsibility to serve the

society. With out the help of employee this is not possible. Your ethical behaviour is most important. 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. Traditionally trade unions role has been to protect jobs and real earnings, secure better conditions of work and life and fight against exploitation and arbitrariness to ensure fairness and equity in employment contexts. In the wake of a long history of union movement and accumulated benefits under collective agreements, a plethora of legislations and industrial jurisprudence, 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, a qualitative change. It can be said that the protective role of trade unions remains in form, but varies in substance. There is a considerable debate on the purposes and role of trade unions. The predominant view, however, is that the concerns of trade unions extend beyond 'bread and butter' issues. 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. Trade unions are also seen as moral institutions, which will uplift the weak and downtrodden and render them the place, the dignity and justice they deserve. The State of Trade Unions in the World. Public opinion is hostile to trade unions in most countries. The public is not against unionism in principle. It is against the way unions and union leaders function. The public image of union leaders is that they are autocratic, corrupt and indifferent to the public interest 'Too much power, too little morality' sums up the publics' assessment of unions There have been many opinion surveys especially in the United States, which bring out the poor public image of trade unions. In surveys which rank the confidence of the American public in fourteen institutions (as for example the army, church, supreme court, stock market, legal profession, industrialists, newspapers etc.) trade unions have been consistently placed at the bottom of the list. There is a serious decline in union membership in most industrialized nations. There are two possible ways of looking at union membership figures. The first method is to

simply add up all union members in a factory, office or country. This gives overall membership position. In the second method, the density of membership is calculated. Density is the percentage of union members in relation to total employment, for example, if unions have 50 members in a factory employing 100, the density is 50 percent. When the reference is to entire country, density is measured by comparing union members against total employment in all sectors. Density is generally accepted as a better indicator because it shows not only how many are members but also how many are not. Trade Unions in India The trade union movement in India is over a century old. It is useful to take stock to see whether the trade unions in India are at the centre stage or in periphery. In order to do that, one may peruse the following relevant, though selective, statistics. The Indian workforce 31.479 Crore (314.79 million) constitutes 37.3 percent of the total population. Of the total workforce, 91.5 percent is accounted for by the informal sector, while the formal sector accounts for 8.5 percent. Further, only abut 3 Crore (30 million) (i.e. 9.5 percent of the workforce) are employed on permanent basis, implying 90.5 percent being employed on casual basis. It has also been reported that by December 1991, the claimed membership of the Indian trade union movement was 3.05 Crore (30.5 million) (i.e. 9.68 percent of the workforce) with 82.24 percent of the trade union membership being accounted for by the organised sector. Thus the unorganised sector is meagrely represented. The World Labour Report summarises the trade union situation in India "Indian unions are too very fragmented. 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. It is difficult to say how many trade unions operate at the national level since many are not affiliated to any all- India federation. The early splits in Indian trade unionism tended to be on ideological grounds each linked to a particular political party. Much of the recent fragmentation, however, has centered on personalities and occasionally on caste or regional considerations.‖ Apart from the low membership coverage and fragmentation of the trade unions, several studies point to a decline in membership, 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. 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. but a contractual relationship. . inter-union rivalry. 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. multiplicity of unions. WORKERS‘ PARTICIPATION IN MANAGEMENT Introduction: Three groups of managerial decisions affect the workers of any industrial establishment and hence the workers must have a say in it. uneconomic size. Unfortunately trade unionism in India suffers from a variety of problems such as politicisation of the unions. financial debility and dependence on outside leadership.

transfers. demotions. questions affecting work rules and conduct of individual worker‘s safety. grievance settlement. automation. to more institutionalized forms such as the presence of workers‘ member on management or supervisory boards or even management by workers themselves as practiced in Yugoslavia. Definitions: The concept of WPM is a broad and complex one. lay-offs. o Personnel decisions – recruitment and selection.o Economic decisions – methods of manufacturing. may broadly be taken to cover all terms of association of workers and their representatives with the decision-making process. welfare measures. ranging from exchange of information. work distribution. workers‘ participation may be viewed as: o An instrument for increasing the efficiency of enterprises and establishing harmonious relations. sanitation and noise control. Participation basically means sharing the decision-making power with the lower ranks of the organization in an appropriate manner. the scope and contents of participation change. Depending on the socio-political environment and cultural conditions. mergers. Objectives: According to Gosep. health. shutdown. o Social decisions – hours of work. ILO: Workers‘ participation. promotions. consultations. International Institute of Labour Studies: 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. decisions and negotiations. .

Workers get to see how their actions would contribute to the overall growth of the company. The main implications of workers‘ participation in management as summarized by ILO: o Workers have ideas which can be useful. the workers.o A device for developing social education for promoting solidarity among workers and for tapping human talents. and o To secure the mutual co-operation of employees and employers in achieving industrial peace. greater efficiency and productivity in the interest of the enterprise. Importance:  Unique motivational power and a great psychological value. Other objectives of WPM can be cited as: 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. o A means for achieving industrial peace and harmony which leads to higher productivity and increased production. 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. the consumers and the nation. o An ideological way of developing self-management and promoting industrial democracy. They tend to view the decisions as `their own‘ and are more enthusiastic in their . Peace and harmony between workers and management. elevating the status of a worker in the society.

In practice. Scope and ways of participation: One view is that workers or the trade unions should. . sit with the management and make joint managerial decisions. as equal partners. o They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas.implementation. He or she can serve as a guide and a control element. Participation makes them more responsible. through their representatives. The workers‘ representative on the Board can play a useful role in safeguarding the interests of workers. The other view is that workers should only be given an opportunity. the participation of workers can take place by one or all the methods listed below: 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: This would be the highest form of industrial democracy. to influence managerial decisions at various levels.

Drawback: o Effect on participation is limited because ownership and management are two different things. o Such representatives of workers‘ on the Board. Hence. And the decisions of the Board are arrived at on the basis of the majority vote.  The Tatas. DCM. such an employees‘ representative may feel inferior to the other members. o As a result. Participation through complete control: .o He or she can prevail upon top management not to take measures that would be unpopular with the employees. o In many cases. o He or she can guide the Board members on matters of investment in employee benefit schemes like housing. and so forth. Problems associated with this method: o Focus of workers‘ representatives is different from the focus of the remaining members of the Board. HMT (Bangalore). he or she may be less effective with the other members of the Board in dealing with employee matters. Advantage: o Makes the workers committed to the job and to the organization. o Communication and subsequently relations between the workers‘ representative and the workers suffers after the former assumes directorship. He or she tends to become alienated from the workers. advances and financial assistance in the form of easy repayment options are extended to enable employees to buy equity shares. and even nationalized banks. Examples of this method are available in the manufacturing as well as the service sector. and a few others have adopted this practice. The Government of India took the initiative and appointed workers‘ representatives on the Board of Hindustan Antibiotics (Pune). o Because of the differences in the cultural and educational backgrounds. and differences in behaviour and manners. Participation through ownership: This involves making the workers‘ shareholders of the company by inducing them to buy equity shares. and he or she may feel suffocated. places them in a minority. his or her role as a director may not be satisfying for either the workers or the management.

The employees of the respective sections elect the members of the councils. Participation through Joint Councils and Committees:  Joint councils are bodies comprising representatives of employers and employees. Such councils play a varied role. etc. Participation through Staff and Works Councils: Staff councils or works councils are bodies on which the representation is entirely of the employees. Participation through Collective Bargaining: Through the process of CB. as . management and workers may reach collective agreement regarding rules for the formulation and termination of the contract of employment. The system of self-management in Yugoslavia is based on this concept.Workers acquire complete control of the management through elected boards. Work committees are a legal requirement in industrial establishments employing 100 or more workers. o This method sees a very loose form of participation. as these councils are mostly consultative bodies. o Industrial disputes disappear when workers develop loyalty to the organization. o Examples of such committees are welfare committee. Conclusion: Complete control by workers is not an answer to the problem of participation because the workers do not evince interest in management decisions. Advantages: o Ensures identification of the workers with their organization. increasing productivity and reducing labour unrest. o Such committees have not proven to be too effective in promoting industrial democracy. safety committee. Self-management gives complete control to workers to manage directly all aspects of industries through their representatives. Such councils have not enjoyed too much of success because trade union leaders fear the erosion of their power and prestige if such workers‘ bodies were to prevail. There may be one council for the entire organization or a hierarchy of councils. o Trade unions welcome this type of participation. o Such committees discuss a wide range of topics connected to labour welfare. o Their role ranges from seeking information on the management‘s intentions to a full share in decision-making.

This is WPM in that it offers freedom and scope to the workers to use their judgment. the workers‘ and the employers‘ representatives need to bargain in the right spirit. Even though these agreements are not legally binding. Progressive managements increasingly use the suggestion schemes. The worker has no say in other vital issues of concern to him – issues such as job and income security. o Job enrichment means adding `motivators‘ to the job to make it more rewarding. CB is based on the crude concept of exercising power for the benefit of one party.  With this scheme. o WPM. each party tries to take advantage of the other. welfare schemes and other policy decisions. The ideas could range from changes in inspection procedures to design changes. For CB to work. those accepted could provide marginal to substantial benefits to the company. Participation through Suggestion Schemes:  Employees‘ views are invited and reward is given for the best suggestion. Two methods of job designing – job enlargement and job enrichment– are seen as methods of addressing the problems. But in practice. The rewards given to the employees are in line with the benefits derived from the suggestions. o Job enlargement means expanding the job content – adding task elements horizontally. they do have some force. Suggestions can come from various levels. But this form of participation is very basic as it provides only limited freedom to a worker concerning the method of performing his/her job. brings both the parties together and develops appropriate mutual understanding and brings about a mature responsible relationship. o Out of various suggestions. paper-work reduction and the like. . leads to boredom and associated problems in employees. Participation through Job Enlargement and Job Enrichment: Excessive job specialization that is seen as a by-product of mass production in industries. This process of CB cannot be called WPM in its strongest sense as in reality. the employees‘ interest in the problems of the organization is aroused and maintained. process simplification. on the other hand.well as conditions of service in an establishment. while bargaining.

and solve quality and related problems in their area. acquire communication and analytical skills and improve efficiency of the work place. . QCs can be an excellent bridge between participative and non-participative approaches.  For QCs to succeed in the long run. Most QCs have a definite life cycle – one to three years. and impressive results when correctly implemented. o Organization gets to enjoy higher savings-to-cost ratios. Advantages: o Employees become involved in decision-making. Godrej and Boyce among others. The Indian Scenario: o Tried by BHEL. and • An attempt to undermine their role. o Few circles survive beyond this limit either because they loose steam or they face simple problems. analyze. Trade unions look at it as: • A way of overburdening workers. These circles require a lot of time and commitment on the part of members for regular meetings. etc. 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. analysis. Training in problem-solving techniques is provided to the members. A QC consists of seven to ten people from the same work area who meet regularly to define. Mahindra and Mahindra.Participation through Quality Circles: Concept originated in Japan in the early 1960s and has now spread all over the world. o Experienced mixed results: M&M (jeep division) with 76 QCs has experienced favourable results. 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. o Chances of QC members to get promotions are enhanced. • Technical problems got solved. concrete. brainstorming. QCs are said to provide quick. • Workers got to get out of their daily routine and do something challenging.

keep inventories and deal with suppliers. limited Open. facilitate Leadership Top-down Shared with the team Information flow Controlled. o Defects cannot be completely eliminated. o Plan. improve Teams plan. Wipro Corporation and Wipro InfoTech are empowering employees – both frontline as well as production staff. control Coach. ABB. o May hire their own replacement to assume responsibility for the quality of their products or services. may take initiative in their work. individual Flat. improve Features of empowered or self-directed teams: o Empowered to share various management and leadership functions. the first time. o Frequently responsible for acquiring any new training they might need. . multiple tasks Management role Direct. o Often create their schedules and review their performance as a group.  Titan. single task Whole process. control and improve their work. control. Every step in company‘s processes is subjected to intense and regular scrutiny for ways to improve it. New principles of TQM are: o Meet the customer‘s requirement on time. the following approach needs to be followed as compared to the traditional approach: Element Traditional Org. control.Employees may feel more responsible. seniority Team-based. and are enjoying positive results. Total Quality Management: TQM refers to the deep commitment. o Quality in the job of the QC personnel. o High quality costs more. may get more work done. and 100% of the time. GE Plastics (India). Some traditional beliefs are discarded. shared Rewards Individual. o May prepare their own budgets and co-ordinate their work with other departments. of an organization to quality. skill-based Job process Managers plan. o Usually order materials. For empowerment to occur. Empowered Teams Organizational structure Layered. Reliance. o Quality can be improved by inspection. almost obsession. and may enjoy the work more. team Job design Narrow.

making each one responsible for improving quality everyday. Some schemes of financial participation: o Profit-linked pay o Profit sharing and Employees‘ Stock Option schemes. Pre-requisites for successful participation:  Management and operatives/employees should not work at cross-purposes i.  Everybody need not want participation.e. not correction. o This means employees will not be able to participate effectively in matters beyond their particular environment. Workers should be associated at all levels of decision-making. Limitations of participation: Technology and organizations today are so complex that specialized work-roles are required. Strong and effective trade unionism. Financial Participation: This method involves less consultations or even joint decisions. Workers‘ education and training. Performance of the organization is linked to the performance of the employee. Participation of outside trade union leaders to be avoided. o Measure the cost of quality.o Strive to do error-free work. they must have clearly defined and complementary objectives. Trust between both the parties. Free flow of communication and information. he/she is likely to be more positively motivated and involved. TQM is called participative because it is a formal programme involving every employee in the organization. Employees cannot spend all their time in participation to the exclusion of all other work. The role of trade unions in promoting participative management has been far from . The logic behind this is that if an employee has a financial stake in the organization. Trade unions and government needs to work in this area. o Pension-fund participation. o Manage by prevention.

The Industrial Policy Resolution adopted by the government in 1956 stated that there should be some joint consultation to ensure industrial peace. by suitable legislation. which made Works Committees mandatory in industrial establishments employing 100 or more workers. the government introduced the Participation of Workers in Management Bill in the Rajya Sabha. Thus. and`Establishment Council‘ at the establishment level.  Managers consider participative management a fraud. on May 30. the 42nd Amendment to the Constitution was made. or change the pattern of participative management. o The government started persuading large enterprises to set up joint consultative committees and councils at different levels. and the response from the employers and employees stayed luke-warm. In was again emphasized by the Congress government who came back n 1979.1990. but gradually waned. Now. o A study team was appointed in 1962 to report on the working of joint councils and committees. This continued in a ―non-statutory vein‖ till the late 1980s. The team identified some reasons for their failure. o Then. Evolution of participative management in India: The beginning towards WPM was made with the Industrial Disputes Act. establishments or other organizations engaged in any industry. 1947. The functions of both these joint bodies were to be consultative and were not binding on the management. the interest in these schemes was revived by the then Prime Minister by including Workers‘ Participation in industry in the government‘s 20-point programme. or in any other way.satisfactory. The bill requires every industrial enterprise to constitute one or more `Shop-Floor Councils‘ at the shop floor level. Article 43-A reads: The State shall take steps. The Janata Government who came to power in 1977 carried on this initiative. During the emergency of 1975-77. to secure the participation of workers in the management of undertakings. . participative management is a constitutional commitment in India. and improve employeremployee relations.  Employers are unwilling to share power with the workers‘ representatives. o And then. The response to these schemes was encouraging to begin with. No concrete steps were taken to remove the difficulties.

negotiations administration and interpretation of collective agreements concerning wages. In spite of all these efforts. hours of work and other conditions of employees arguing in concerted economic actions dispute settlement procedures‖. The Establishment Council enjoys similar powers. Managers and workers are partners in the progress of business. COLLECTIVE BARGAINING ―Collective Bargaining is concerned with the relations between unions reporting employees and employers (or their representatives). and work in unison. But participative management is staging a comeback. o Managers and the managed are forced to forget their known stands. The bill also provides for penalties on individuals who contravene any provision of the bill. ____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 . wastage control to safety hazards. It involves the process of union organization of employees. o The compulsions of emerging competitive environment have made employee involvement more relevant than ever before.These councils will have equal representation of employers and employees. The bill provides for the constitution of a Board of Management of every corporate body owning an industrial establishment. break barriers. only the government and the academicians have been interested in participative management. Shop-Floor councils enjoy powers over a wide range of functions from production.

The essence of Collective Bargaining is bargaining between interested parties and not from outside parties‖. Collective Bargaining involves: • Negotiations • Drafting • Administration • Interpretation of documents written by employers and the union representatives their employees. a group of employees or one or more employers organization on the other. if fixes large number of detailed conditions of employees and during its validity none of the matters it deals with. Guide for Trade Union Training Issued by the International Confederation of Free Trade Union. such as: . According to an ILO Manual in 1960.‖ 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. Collective Bargaining is ―Workers‘ Bill of Right‖ which serves several objectives of the union. with a view to reaching an agreement. the Collective Bargaining has defined as: ―Negotiations about working conditions and terms of employment between an employer. which specifies the nature of employee-employer union relationship‖.or agreement. internal circumstances give grounds for a dispute counseling and individual workers‖. • Able management • Organizational Trade Unions with open mind. ____ 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.

after its expiry. Collective Bargaining is…. In fact it is an extension of the principles and practices of democracy to the industry  Actually it is the beginning of Industrial Jurisprudence Management to abide by certain rules rather than arbitrary decisions According to John T Dunlop. services and administers many of rules which governs the workers‘ place of work A procedure which determines the quantum of compensation which employee should receive and which influences the distribution of economic benefits. A method of settling disputes during pendency of agreement and of determining. A system which establishes.Union recognition as an authority Raised standard of living of workers Greater share for them in the Company‘s profit Due respect to workers Participation in decision influencing their working conditions Establishment of practices to settle disputes arising in day-to-day situations Workers‘ interest throughout the country A technique for the accomplishment of the goals both of employees and employers as well They are the integral part of the society It implies agreement between representatives of management and freely designated representatives of employees relating to the solutions of Industrial problems with minimum government dictates. Thus categories of Collective Bargaining are:Single employer bargaining. whether a dispute should be re-opened or whether a strike or lock-out should be resorted to or not. 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 a) Employer‘s federation b) Workers of an industry representatives by the federation of all the trade unions .

• Joint Consultation means joint councils relates to the sharing of information & suggestion with regard to the issues of common interest including health. • Recognition of union . 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. • It is an attempt in achieving and maintaining discipline in industry • It is an effective step in promoting industrial jurisprudence. but also the administration or application of the contract also.(At local. This only includes recommendations the ultimate decisions rests with 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. • It is a continuous process: It establishes regular & stable relationship between the parties involved. 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. It is in fact a way to establish industrial democracy. safety. Subject matter of Collective Bargaining: • Employment • Relationship between the workers and the management. • It involves not only the negotiation of the contract. • It is based on give and take approach and take or leave approach. Actually. Features of Collective Bargaining • It is a collective process: The representative of both the management & the employees participate in it. welfare and productive efficiency.

• Wages and allowances. hours of work • Leave and festival holidays • Bonus & profit sharing schemes • Seniority and rationalism • Fixation of work loads • Standard of labour force • Programs of planning and development. production norms. influencing workforce • Issue related to retrenchment and lay offs • Victimization of trade union activities • PF. and the definition of important terms • Rights and responsibilities of the management and of the trade union • Wages. Signification of Collective Bargaining • Negotiations • Administration • Enforcement of the written contract between employees and the employer • Process of reserving labour-management conflicts . retirement benefits and terms & conditions of service • Grievance redressal procedure • Methods and machinery for settlement • Termination clause. its scope. 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. 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. occupational diseases and protective clothing. leave. bonus. • Employment benefits such as canteens. • Purpose of agreement.

• When issue is raised by the union. • Thus minor issues are defused and settled peacefully. the Industrial Relations Manager to initiate preliminary work and have initial discussions and inform the results to top management. . • No legal compulsion on either side to negotiate of a dispute.• 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 Peace Treaty or Industrial peace -- Temporary Treaty 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. • If both the parties are mutually prepared results can be achieved. • To iron-up differences in the beginning • Frank discussions. mutual benefits and attempts to appreciate the other parties approach/point of view for fruitful negotiations.

1. etc. • Proper climate for mutual understanding and a common desire to reach an agreement.• A team of senior managers to involve from the management side for discussions in matter. a solution will be possible. 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. 2. • Better to leave controversial issues for the time being and leap over to the next issue. 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. production norms. • An IRM is to act as a liaison with the union members and as a bridge. • As the field of agreement is widened and the field of disagreement is narrowed down. small gaps can be bridged over more easily later. bringing things to fundamentals will then help. 3. • Inclusion of functional heads will be more beneficial. • Correct understanding of the main issue and intimate knowledge of operations. • True spirit of give and take • Maximum chances of success. analytical mind. Composition of Negotiating Team: • Representatives of both workers and the employees • Adequate qualify job knowledge and skills for negotiations. • As long as talks continue. • Basic qualities of balanced views even temper. • To have full authority to speak and make decisions. working conditions. . The Indian Institute of Personnel Management has suggested following procedure for negotiation and Collective Bargaining between Management and Union. objective look out. • When the main issue get confused the dust and storm raised.

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. analyses can fluid a solution with open mind. 4. Develop a problem-solving attitude • Appreciation on both the sides • Better understanding • Better performance and increased prosperity for future • Proper discussion. Bring in the other managers • Contribution and involvement of other managers • Collective agreement covers not just one part. • Lack of understanding and proper communication often create problems and difficulties • Discipline for management and productivity/job security for workers is important. Encourage leadership • Possibilities of solution of both sides are argued. • Right of association and fight for justice and a fair deal. • United and homogeneous climate on both sides ―Management gets the union it deserves‖ • Principle of justice. but the entire field of industrial activity. threatening discipline peace and production gets disturbed. sympathy and firness • Growth of healthy and strong trade unionism. Thus development of the right type of leadership is only a matter of time. 5. • These are the basic difference and conflict never gets resolved. 7. • Almost all Collective Bargaining agreements contain formal procedure to be used in resolving difference over the interpretation and application of the agreement.• To keep the discussion fluid is therefore very important. . • 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. 6. • At times conflict grows more serious and a situation becomes explosives.

• Following conditions must be fulfilled to make Collective Bargaining successful. since contacts are regularly renegotiated. Obstacles to Collective Bargaining in India Progress of the Collective Bargaining process is not very encouraging in India.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. 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. • Coercive tactics from both sides • Industry-wise bipartite committees formation • Workers participation in management • Collective Bargaining at various levels is feasible and effective. Several factors are responsible for this: . Most of the unions and management lay emphasis on adjudication rather sorting out issues themselves. 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. Collective Bargaining is an important element • It became national bargaining between two world wars • In India.

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 of interests of management and labour is the progeny of the capitalist form of economic organization. • Conflict indicates malfunctioning within the organization and it represents management failure to bind the workers and the organization together. when all other remedies have failed. It is not only the sharing of the fruits of industry that generate conflicts. Dynamics of Industrial Relations Industrial Conflicts IRs are invariably a combination of cooperation. . conflict in organizations has been viewed very negatively • The classical writers believe that conflict is inherently bad and so it must be curbed. • Conflict is not only a positive force in a modern group but is also necessary for a group to perform effectively. collaboration and conflict between labour and management though industrial peace and harmony may be sought as an organizational objective. 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.• Multiple unions • Non-recognition • Political orientation • Defective laws • Mediation by political leaders Suggestions for effective Collective Bargaining • To create conditions for strong. • Traditionally. the conflict is an epidemic to the industrial society. same conflict is inherent in the industrial structure and in fact.

• Better employer-employee communication greater and more effective attention to employee‘s problem. it gets into public lime-light and gets public opinion and support • During conflicts. complaints and grievances and effective grievance handling machinery. 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. . group gain power which is identified to solve the problem. • When the conflicts become open. 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. Positive Aspects of Conflicts • It provides stability to the group concerned • Workers. • It depends whether the conflict is functional or dysfunctional (destructive) and thus hinders the performance of the organization. disciplinary action and dismissal • Social security and labour welfare measures to provide for the legitimate needs of workers and their families. promotion. • 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.• It is inappropriate to say that conflict is all good or bad.

Industrial relations are basically the interactions between employers. Therefore. and the institutions and associations through which such interactions are mediated. The field of industrial relations looks at the relationship between management and workers. employees and the government. and union-management (or labor) relations. industrial relations was broadly defined to include the relationships and interactions between employers and employees. particularly groups of workers represented by a union. responsibilities and procedures for implementation of decisions.• Effective measures and techniques for preservation and improvement of employees morale and motivation • Healthy supervision. Introduction To Industrial Relations Industrial relations has become one of the most delicate and complex problems of modern industrial society. Originally. From this perspective. Now its meaning has . Concept of Industrial Relations: The term ‗Industrial Relations‘ comprises of two terms: ‗Industry‘ and ‗Relations‘. including human resource management. By ―relations‖ we mean ―the relationships that exist within the industry between the employer and his workmen. industrial relations covers all aspects of the employment relationship. • Collective Bargaining and establishment of mutually acceptable agreements defining policies. employee relations. it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). representative and responsible trade union • Effective and mutually satisfactory measures for attaining participation of workers in the management of industrial enterprises. Industrial progress is impossible without cooperation of labors and harmonious relationships.‖ The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. The term industrial relations has a broad as well as a narrow outlook. ―Industry‖ refers to ―any productive activity in which an individual (or a group of individuals) is (are) engaged‖. Industrial relations are the relationships between employees and employers within the organizational settings. fair treatment and demonstrably impartial treatment of workers • Evolution of a strong.

In the words of Lester. between the profit motive and social gain. industrial relations affect not merely the interests of the two participants. while human resource management is a separate. collective bargaining. the group and the community‖. discipline and grievance handling. Accordingly. between authority and industrial democracy. and the management of conflict between employers. collective bargaining. workers‘ participation in decision-making. 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. workers‘ participation in management. workers and trade unions. . and grievance and dispute settlement). between bargaining and co-operation. According to NCL. trade unionism. the relationships between workers and their employer. and labor-management relations. Traditionally. The National Commission on Labor (NCL) also emphasize on the same concept. but also the economic and social goals to which the State addresses itself. Industrial Relations Industrial relations is used to denote the collective relationships between management and the workers. which the State is in the best position to perform. and the relations between those organizations. the relationships employers and workers have with the organizations formed to promote their respective interests.labor and management. between discipline and freedom. and between conflicting interests of the individual. To regulate these relations in socially desirable channels is a function.become more specific and restricted. the term industrial relations is used to cover such aspects of industrial life as trade unionism. the relationships between employers. industrial disputes and interpretation of labor laws and rules and code of conduct. when it arises. industrial relations pertains to the study and practice of collective bargaining. at all levels industrial relations also includes the processes through which these relationships are expressed (such as. "Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values.

tribunals etc. regulations. etc. policies. trade unions. dismissals retirements etc. industrial relations officers/ manager. discipline procedure. tribunal etc. industrial relation encompasses all such factors that influence behavior of people at work. hours of works. shop stewards. government bodies. Characters: It aims to study the role of workers unions and employers‘ federations officials. health. social security. hearing of labor courts. grievance redressal machinery. procedures. mediator/conciliators / arbitrator. judges of labor court. employers. A few such important factors are below: Institution: It includes government. organizations of protests through methods like revisions of existing rules. workers‘ participation in the industrial relations schemes. industrial relations.. lay-off. union reorganization. . Contents: It includes matter pertaining to employment conditions like pay. laws relating to such activities.In fact. and safety disciplinary actions. issues concerning with workers‘ participation in management. leave with wages. collective bargaining. labor courts. dispute settlements machinery working of closed shops. Methods: Methods focus on collective bargaining. tribunals and other organizations which have direct or indirect impact on the industrial relations systems. regulations governing labor welfare. union federations or associations.

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