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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the remaining 91 percent are in the unorganized sector. 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. casual workers and unemployed. Onethird of rural households are agricultural labor households. that constitutes about 8% of the workforce.3 million to 385.3 million out of which 60% are in agriculture. who constitute about 60% of the workforce • Organized of the formal sector.1%. 12% are employed in industries and the residual 28% are in services. During the year 1999-2000. self-employed are most loosely connected to labor market because of the possibilities of work-sharing and work spreading in a self-employed enterprise. the workforce was estimated to be 407 million. self-employed. 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. subsisting on wage employment. • The chart below describes the estimated increase in the number of labors from 1977-78 to 2004-05. wage and salary earners. or employed as casual wage laborers. Same is the case with those unemployed who are actively seeking work. Only about 9 percent of the total workforce is in the organized sector.5 million between 197778 and1993-94 showing an annual growth rate of 2. Non-contractual casual laborers have the closest connection to labor market on almost day-to day basis. Persons who are engaged in their own farm or non. The labor force has grown from 276. . Of these.The Indian labor market can be categorized into three sectors: • Rural workers . The labor force in year 2006 has grown up to 509. Labor force can be divided into four categories: self employed workers. 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.farm enterprises are defined as self employed. and • Urban unorganized or informal structure which represents the 32% of the workforce.

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.71 million workers employed thereof in the nonagricultural informal sector of the economy. and other employed in organized and unorganized enterprises that are not eligible either for paid. The unorganized / informal employment consists of causal and contributing family workers. This category of persons may. According to the results of the National Sample Survey conducted in 1999-2000.34 million enterprises .35 million enterprises and 79. 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.2000 was of the order of 406 million. sick or annual leave or for any social security benefits given by the employer.These workers. The NSS 55th round. temporary workers. their share being around 62 per cent (lines 10 to 12 of Table).74 million workers were in rural areas whereas 19. This category includes those getting time wage as well as those receiving piece wage or salary and paid apprentices. a major chunk of labor force is employed in the unorganized sector. are informal 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. The regular salaried/wage employees are those working in others farm or non. out. 1999-2000 also covered nonagricultural enterprises in the informal sector in India. include persons engaged regularly on an hourly basis. therefore. The table given below classifies labor force across male-female and rural-urban dimensions. total work force as on 1. both full time and part time. self employed persons in un-organized sector and private households. etc. As per that survey. • 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.workers. Organized and Unorganized Labor In India. either in formal or informal sector or in private households. Among these 25.01 million enterprises employing 39. there were 44.1. • Those reporting wage and salary earning dominate in the urban labor force.

5 million part times. In the matter of savings the share of household sector in the total gross domestic saving mainly unorganized sector is about three fourth. 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.84 percent of the employment in agriculture is informal. an increase of 1.with 39.34 thousand are public sector enterprises while 121. The largest numbers of informal workers are in agriculture. savings and capital formation. Thus. Percentage of female workers to the total workers is 20. 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. In fact.21 million are full time and 9. The share of unorganized employment in the economy has displayed remarkable steadiness over the years. Out of 397million workers in 1999-2000. In the non-agricultural sector. The table below describes major employment trends for the organized and unorganized sector for the years 1983. construction.97 million workers in the urban area. 1987-88.4% has been recorded in the number of . 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%. showing only a marginal increase from 24 million in 1983 to 28 million in 1999-2000.2 percent. Among the workers engaged in the informal sector. land transport. textiles etc. Thus unorganized sector has a crucial role in our economy in terms of employment and its contribution to the National Domestic Product. It is clear that employment opportunity in the organized sector has remained more or less stagnant. 172.77 thousand industrial establishments. the highest numbers of informal employees are in retail trade. Since 2004. 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. Employment In India The organized sector in India consists of 293. 70. 98. 1993-94 and 1999-2000.43 thousand are in private sector. Out of these. 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 negative growth of employment was recorded in public sector while private sector showed an increasing trend. Chandigarh and Andhra Pradesh.2%.1% in employment. highest decrease of 1.7 lakh persons while the private sector employs 84. Himachal Pradesh and Gujarat and 1 percent or more in Pondicherry. Assam and Nagaland. recorded a negative growth of 2. The same trend continued in 2005 also.3% respectively State wise analysis reflects that only Punjab and Kerala recorded a decrease of more than 3 percent.58 lakh while in 2004. with a negative growth of 2.9% followed by Quasi Govt. Local Bodies and State Govt. the employment in public sector decreased by 1 percent while private sector increased by 2..4% and 0. The branch wise analysis of the public sector data reveals that Central Govt. were also subjected to a negative growth of 0.establishments in the organized sector.52 lakh persons. it was 264.5 percent. The Local Bodies and State Govt. The public sector employs about 180.6 percent in Southern Zone whereas the highest increase was 2 percent in Western Zone followed by 1. An increase of more than 3 percent in employment was observed in Goa. This means there has been an increase of 0. Decrease in employment above 1 percent was observed in Madhya Pradesh Uttar Pradesh.6 percent was seen in Central Zone followed by 1 percent in Northern Zone and 0.43 lakh. Uttaranchal. Karnataka. in which the Central Govt. As on the 31st March. shows maximum negative growth in employment followed by Quasi Govt. West Bengal. While analyzing the figures zone wise. that is. 2005 the total employment in the organized sector was estimated to be 264.1 percent in .

In 1981.9 percent in Eastern Zone in employment Women Employment Women workforce constitutes an integral part of total workforce in India.6 2000 104.95 lacs (42per cent) in the Private Sector.67 per cent which increased up to 22. On 31st march 2004. As on the 31st March.9 2002 106.5 26. Amongst rural women workers. women constituted 19 per cent of the total workforce. Eastern Zone (3per cent) and Central Zone (1.8 25. work participation rate for women was only 19.16 Lacs women employees were engaged in the organized sector. Only Southern Zone registered a marginal dip of 0.1 percent and by 2.9 2003 107. Thus the percentage of women job seekers to the total job-seekers has also increased from 24. The zone wise analysis showed an increase of 8 percent in NorthEastern Zone.0 25. a majority is employed in agriculture and some are employed in cottage industries.3per cent).8 percent Some Vital Statistics • The number of women job seekers has increased from 99. Employment of women in public sector increased by 1.North-Eastern Zone and 0. out of which 29. In the urban areas.3 2001 108.5 25.21 lacs (58per cent) in the public sector and 20.2per cent in 2004.1 lacs in 2004.5 percent in the private sector during 2004-2005.3per cent) and Northern Zone (1.0 • . in the rural as well as urban areas.2per cent). women from rural areas are greater in number as compared to the urban women. women workers are primarily employed in the unorganized sectors. In the women workforce.73 per cent in 1991 and 26.3 lacs in 1999 to 106.1 26.68 per cent in 2001. The participation of women in the labor force has always been lower than that of men.3 24. 2005 a total number of 50.0 2004 106. followed by Western Zone (5.6per cent in 1999 to 26. Table 1: Number of Women Job Seekers Year Number of Women (in lacs) Percentage to total 1999 99. The work participation rate for women has increased significantly.

Storage & Communications.6 2004 7537. An increase of 7.• Number of Educated Women Job Seekers as on December 2004 was 7537. 5. Effective discipline should be aimed at the behavior.6 per cent in Mining and Quarrying.4 per cent in the previous year. • As far as industries are concerned. the manufacturing industry faced a dip of 1.4 per cent in Community.68 per cent in 2001. • The percentage of educated women job seekers among the total women job seekers has gone down from 73. Table 2: Number of Educated Women Job Seekers Year Number of Women Percentage to total 2000 7911. and not at the employee personality.0 lacs). As on 31st March.3 lacs) and Tamil Nadu (15.1 2002 7921.4 26.7 27.4 26. 1. there were about 49. as compared to 18. • The work participation rate for women was 25.8 • • The state wise analysis reflects that Kerala has the maximum (21. other industries reflected an increase in women employment. Insurance Real Estate & Business Services. Social and Personal Services and 1.8 2003 8032.3per cent to 70.4per cent in 2004.1 2001 8525. On the other hand.7 per cent in Electricity. Effective Discipline Discipline is the key to success. Educated Women at the end of 2004 accounted for 25. Hunting.5 per cent in Agriculture.8 per cent was registered in Wholesale and Retail Trade followed by 5. 1. This is because the reason for discipline is to improve performance rather than punishing the employee . • Women workers constituted 19 per cent of the total organized sector employment in the country.8per cent of the total educated job-seekers. Forestry & Fishing. in 2005.2 per cent in Transport.2 per cent in Financing. It is the bridge between goals and accomplishments. Discipline can be positively related to performance.5 per cent in Construction. This shows an improvement over 22.1 lacs) women jobseekers followed by West Bengal (19. Gas & Water. 2004. 1.7 25. Theodore Roosevelt has said ―With self-discipline almost everything is possible‖.1per cent in women employment.6 28.73 per cent in 1991 and 19.3 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).67 per cent in 1981. 5. Self discipline makes employee realize what is required at work.7 thousand.

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

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

victimization or go – slow tactics • that they will avoid litigation. 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. intimidation. 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. awards. settlements and decisions . • 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. damage to property and insubordination • to take prompt action to implement awards.• Actions that disturb cordial relationships should be avoided. management and unions agree on not indulging into various actions. 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. 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.

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

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

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

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

Health is the general state of well being. The terms health. 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. fire or diseases. etc.security of his employees. Safety refers to the act of protecting the physical well being of an employee. Security refers to protecting facilities and equipments from unauthorized access and protecting employees while they are on work. In organizations the responsibility of employee health and safety falls on the supervisors or HR manager. Health & Welfare)1986 Issues in Employee Health & Safety Organizations frame many approaches to ensure health and safety of their employees. conduct formal safety training. making employees aware about the health and safety policy of the company. It will include the risk of accidents caused due to machinery. The supervisors and departmental heads are responsible for maintaining safe working conditions. safety and security are closely related to each other. But not all of the approaches focus on contribution of both work design and employee behavior to safety. but also emotional and mental well being. Health and safety form an integral part of work environment. An HR manager can help in coordinating safety programs. An organizational approach to safety is effective only when both the . It not only includes physical well being. A work environment should enhance the well being of employees and thus should be accident free.

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

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

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

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

These include provisions provided in industrial acts like Factories Act 1948. at such rate not being less than one thousand rupees and not exceeding twenty thousand rupees. 3. 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. Drinking Water: At all the working places safe hygienic drinking water should be provided. Mines Act 1962. The rate of cess on Limestone and Dolomite is Re. 2.1/-.1/. 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. 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. 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. 4.to Rs. Manganese Ore & Chrome Ore between 50p to Re. 1946. 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.respectively. Dock Workers Act (safety.6/.with effect from 27th December 2000. on every feature film submitted to the Chairman. especially factories.• The Cine Workers Welfare Cess Act.to Rs. The employee welfare schemes can be classified into two categories viz. provides for levy and collection of cess on all mica exported as duty of Customs not exceeding 6. suitable seating arrangements are to be provided. health and welfare) 1986.5% ad valorem on export with effect from 1st November 1990. Re.6/. 1976 provides for levy and collection of cess on Iron Ore. • The Limestone and Mines Labor Welfare Fund Act.1/. 1981 provides for duty of cess. Facilities for sitting: In every organization.25% ad valorem.3/. • The Iron Ore.and Rs. This is 4. • Mica Mines Labor Welfare Fund Act. Manganese Ore & Chrome Ore Mines Labor Welfare Cess Act. Central Board of Film Certification. Employee Welfare Schemes Organizations provide welfare facilities to their employees to keep their motivation levels high. . The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. statutory and non-statutory welfare schemes.

etc. Spittoons: In every work place. 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. 8. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply. 7. wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following schemes: 1. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization. disease or injury or pregnancy. such as ware houses. Paternity leave policies have also been introduced by various companies. 10. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. 6. Washing places: Adequate washing places such as bathrooms. 4. 6.5. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. 9. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees. store places. Adequate lockers are also provided to the workers to keep their clothes and belongings. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs 3. toilets. Harassment Policy: To protect an employee from harassments of any kind. Maternity & Adoption Leave – Employees can avail maternity or adoption leaves. 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. wash basins. Causes Of Industrial Disputes . 7. 5. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness. guidelines are provided for proper action and also for protecting the aggrieved employee. bathrooms. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up 2.

During the year 2002. In 2002. indiscipline accounted for the highest percentage (36. unjust layoffs and retrenchments. only 9. political factors. 40.6% in 2004 and 2005 respectively.4% were caused by retrenchment. 6. wages and allowances accounted for 21. it is evident that the number of disputes caused by indiscipline has shown an increasing trend.2%.4% of the disputes were because of leaves and working hours. working hours.Inter/Intra Union Rivalry . • Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2004. leave and holidays without pay.4% and 0. sympathetic strikes. • Indiscipline and violence: From the given table. During the year 2003.1% while those caused by retrenchment and layoffs were 2.9% of disputes were caused because of indiscipline.6% of the disputes were caused by personnel.4% and11. 21. wherein 11. • Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. followed by cause-groups wage and allowance and personnel with 20. workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. 29. while 2.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3. This percentage was 20.2% respectively.4% during 2003 and during 2004 increased up to 26.4% respectively. In year 2005.4% and 41. bonus.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. which rose up to 36. allowances.9% in 2003.2% and 0. • Bonus: Bonus has always been an important factor in industrial disputes. The economic causes will include issues relating to compensation like wages. Similarly in 2004 and 2005. and conditions for work.4% of disputes. ill treatment by staff members.8% of disputes.The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. • Wages and allowances: Since the cost of living index is increasing. and only 0. During 2002.4% of disputes were caused by demand of higher wages and allowances. only 0. In 2003.6% of disputes were caused due to indiscipline respectively. disputes caused by personnel were 14.6% of disputes were caused by retrenchment and layoffs. indiscipline etc. In 2005.2% of the disputes were caused by personnel. In 2002.9%) of the total time-loss of all disputes. A similar trend was observed in 2004 where indiscipline accounted for 40. The non economic factors will include victimization of workers. a similar trend could be seen. • Miscellaneous: The miscellaneous factors include . 0.

It is being estimated that this trend will continue in 2007 as well.Non-implementation of agreements and awards etc. only 45 cases of disputes have been recorded during the first four months of 2007. 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. 399 disputes were recorded in the private sector. In 1998. the country still witnessed some major strikes between 2004 and 2006.14 lakh mandays were lost due to work stoppages in 23 industrial disputes during January to March 2007. a deeper look at the data reveals that the number of mandays (i. it is clear that the private sector has witnessed greater number of disputes as compared to the public sector. On analyzing the data sector wise. In contrast to this. However.. This significant decline is attributed to the serious attempts made by industries to improve industrial relations with their workers. maximum number of disputes has been recorded in the manufacturing.Work Load . Analysis Of Industrial Disputes The number of industrial disputes in country has shown slow but steady fall over the past ten years.e.Standing orders/rules/service conditions/safety measures . Escorts. In 2005. only 57 disputes were recorded in public sector which resulted in a wage loss of 79 Crores. The country.Charter of Demands . To support this. agriculture and mining and quarrying industries. . More than 2. lost 25. like those in Honda. Though there has been a decline in the number of strikes. which might have affected its industrial output. on an average.4 million mandays of work annually between 1998 and 2006. In the recent past. the total number of disputes was 1097 which fell by more than half to 440 in 2006. Apollo.. and Skumars factories and in SBI bank.

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

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

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

. As can be seen from the below chart. There were 227 strikes in 2005.3 million workers were involved in these labor disputes.4 per cent in 2005. The number of strikes and lockouts. The number and seriousness of strikes and lockouts have varied from year to year. 1. This continuous decline in strikes and lockouts indicates that the industrial relations in India are improving. from which 10. which resulted in the time loss of 3.5 million to lockouts.6 million were lost to strikes and 13. Maximum time-loss was caused by 297 lockouts during 2003 which resulted in a time-loss of 27.16 million man-days and 10.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. in 2006 only 13. 24.86 million mandays.1 million workdays were lost. was down by 4. During 2005. financial intermediation. 426 strikes and 325 lockouts were observed which resulted in total timeloss of 28. Industrial disturbances were concentrated mainly in manufacturing (textile). More than 1. agriculture and mining and quarrying industries during 2005. During 2000.76 million mandays.81 million man-days. resulting in the loss of 10. there has been a steep decline in the number of strikes and lockouts.825 strikes and lockouts were recorded.76 million mandays were lost due to strikes and lockouts. while the number of lockouts stood at 229 with a loss of 18.60 million man-days respectively. As compared to previous years. In January-September 2006.05 million mandays. West Bengal experienced the maximum instances of strikes and lockouts (19216) followed by Kerala (3619) and Rajasthan (19247). As a result. as compared to the statistics of 2005. there were only 154 strikes and 192 lockouts across the country. taken together.

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

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

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

uneconomic size.federations that could secure for them a voice at national policy making levels. Unfortunately trade unionism in India suffers from a variety of problems such as politicisation of the unions. 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. financial debility and dependence on outside leadership. 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.

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

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

In practice. as equal partners. to influence managerial decisions at various levels. Participation makes them more responsible. 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.implementation. o They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas. Scope and ways of participation: One view is that workers or the trade unions should. through their representatives. He or she can serve as a guide and a control element. sit with the management and make joint managerial decisions. 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. .

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

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

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

analyze. QCs can be an excellent bridge between participative and non-participative approaches. • Technical problems got solved. concrete. and solve quality and related problems in their area.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. A QC consists of seven to ten people from the same work area who meet regularly to define. o Organization gets to enjoy higher savings-to-cost ratios. Trade unions look at it as: • A way of overburdening workers. Godrej and Boyce among others. 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. acquire communication and analytical skills and improve efficiency of the work place. Most QCs have a definite life cycle – one to three years. o Chances of QC members to get promotions are enhanced. brainstorming. • Workers got to get out of their daily routine and do something challenging. Mahindra and Mahindra. Advantages: o Employees become involved in decision-making. analysis. etc.  For QCs to succeed in the long run. . and impressive results when correctly implemented. The Indian Scenario: o Tried by BHEL. QCs are said to provide quick. These circles require a lot of time and commitment on the part of members for regular meetings. and • An attempt to undermine their role. o Few circles survive beyond this limit either because they loose steam or they face simple problems. Training in problem-solving techniques is provided to the members. 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 Defects cannot be completely eliminated. may get more work done. o High quality costs more. and are enjoying positive results. o Quality in the job of the QC personnel. improve Features of empowered or self-directed teams: o Empowered to share various management and leadership functions. seniority Team-based. Every step in company‘s processes is subjected to intense and regular scrutiny for ways to improve it.Employees may feel more responsible. ABB. of an organization to quality. almost obsession. control and improve their work. New principles of TQM are: o Meet the customer‘s requirement on time. improve Teams plan. o Often create their schedules and review their performance as a group. single task Whole process. team Job design Narrow. For empowerment to occur. keep inventories and deal with suppliers. Some traditional beliefs are discarded. .  Titan. o May prepare their own budgets and co-ordinate their work with other departments. multiple tasks Management role Direct. Total Quality Management: TQM refers to the deep commitment. shared Rewards Individual. GE Plastics (India). individual Flat. skill-based Job process Managers plan. control. and may enjoy the work more. Wipro Corporation and Wipro InfoTech are empowering employees – both frontline as well as production staff. o Usually order materials. the first time. limited Open. the following approach needs to be followed as compared to the traditional approach: Element Traditional Org. o Plan. may take initiative in their work. and 100% of the time. facilitate Leadership Top-down Shared with the team Information flow Controlled. o May hire their own replacement to assume responsibility for the quality of their products or services. o Frequently responsible for acquiring any new training they might need. control. control Coach. Empowered Teams Organizational structure Layered. o Quality can be improved by inspection. Reliance.

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

The response to these schemes was encouraging to begin with. the 42nd Amendment to the Constitution was made. Article 43-A reads: The State shall take steps.  Employers are unwilling to share power with the workers‘ representatives. but gradually waned. This continued in a ―non-statutory vein‖ till the late 1980s. o The government started persuading large enterprises to set up joint consultative committees and councils at different levels. o Then. In was again emphasized by the Congress government who came back n 1979. No concrete steps were taken to remove the difficulties. and`Establishment Council‘ at the establishment level. The Industrial Policy Resolution adopted by the government in 1956 stated that there should be some joint consultation to ensure industrial peace. Evolution of participative management in India: The beginning towards WPM was made with the Industrial Disputes Act. The Janata Government who came to power in 1977 carried on this initiative. and the response from the employers and employees stayed luke-warm.  Managers consider participative management a fraud. participative management is a constitutional commitment in India. establishments or other organizations engaged in any industry. 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. o And then. The functions of both these joint bodies were to be consultative and were not binding on the management. The bill requires every industrial enterprise to constitute one or more `Shop-Floor Councils‘ at the shop floor level. or change the pattern of participative management. . on May 30. 1947. by suitable legislation. During the emergency of 1975-77. to secure the participation of workers in the management of undertakings. and improve employeremployee relations. o A study team was appointed in 1962 to report on the working of joint councils and committees.satisfactory. which made Works Committees mandatory in industrial establishments employing 100 or more workers. The team identified some reasons for their failure. Now. or in any other way. the government introduced the Participation of Workers in Management Bill in the Rajya Sabha.1990. Thus.

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

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

 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 . 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. 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. Collective Bargaining is…. 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. after its expiry.

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

• Employment benefits such as canteens. and the definition of important terms • Rights and responsibilities of the management and of the trade union • Wages. bonus. production norms. Signification of Collective Bargaining • Negotiations • Administration • Enforcement of the written contract between employees and the employer • Process of reserving labour-management conflicts .• Wages and allowances. 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. leave. 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. 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. • Purpose of agreement. occupational diseases and protective clothing. influencing workforce • Issue related to retrenchment and lay offs • Victimization of trade union activities • PF. retirement benefits and terms & conditions of service • Grievance redressal procedure • Methods and machinery for settlement • Termination clause.

• Thus minor issues are defused and settled peacefully. . • To iron-up differences in the beginning • Frank discussions.• 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. mutual benefits and attempts to appreciate the other parties approach/point of view for fruitful negotiations. 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. • When issue is raised by the union. • If both the parties are mutually prepared results can be achieved.

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

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

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

• Traditionally. same conflict is inherent in the industrial structure and in fact. the conflict is an epidemic to the industrial society. 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. • 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. conflict in organizations has been viewed very negatively • The classical writers believe that conflict is inherently bad and so it must be curbed. Conflict of interests of management and labour is the progeny of the capitalist form of economic organization. . collaboration and conflict between labour and management though industrial peace and harmony may be sought as an organizational objective. Dynamics of Industrial Relations Industrial Conflicts IRs are invariably a combination of cooperation.• Multiple unions • Non-recognition • Political orientation • Defective laws • Mediation by political leaders Suggestions for effective Collective Bargaining • To create conditions for strong. stable representative by union • Recognition by the law of the trade unions • Political leadership to be replaced by internal workers leadership • No political interference • Both management and unions should adopt peaceful means of settling disputes • Adjudication to be resorted to as last resort. • Conflict is not only a positive force in a modern group but is also necessary for a group to perform effectively.

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

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

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

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

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