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

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

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

workers must recognize employer‘s authority. It is the business of leadership in the ranks of workers. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same.peace. The industrial peace lies ultimately in a transformed outlook on the part of both. i. It will naturally have impact on production because they recognize the interest of each other. It increases the place of workers in the society and their ego is satisfied. If the twin objectives of rapid national development and increased social justice are to be achieved. material and machines are reduced to the minimum and thus national interest is protected. it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. 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 . On the other hand. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. It naturally affects production because mighty co-operative efforts alone can produce great results. Thus. • Reduced Wastage – Good industrial relations are maintained on the basis of cooperation and recognition of each other. • Mental Revolution – The main object of industrial relation is a complete mental revolution of workers and employees. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. In other words. employees and Government to work out a new relationship in consonance with a spirit of true democracy. complete unity of thought and action is the main achievement of industrial peace. It will help increase production.e. An economy organized for planned production and distribution. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. It also results in increased efficiency of workers. Wastages of man. to increase production. there must be harmonious relationship between management and labor. • High morale – Good industrial relations improve the morale of the employees. It helps promoting co-operation and increasing production. Every worker feels that he is a co-owner of the gains of industry.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Labor force can be divided into four categories: self employed workers. casual workers and unemployed. 12% are employed in industries and the residual 28% are in services. that constitutes about 8% of the workforce. self-employed. the workforce was estimated to be 407 million. . Same is the case with those unemployed who are actively seeking work. 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.5 million between 197778 and1993-94 showing an annual growth rate of 2. The labor force has grown from 276. the remaining 91 percent are in the unorganized sector. and • Urban unorganized or informal structure which represents the 32% of the workforce. wage and salary earners. The labor force in year 2006 has grown up to 509. • The chart below describes the estimated increase in the number of labors from 1977-78 to 2004-05. The casual wage workers both in public work and other types of work don‘t have any job security or social security.1%. Persons who are engaged in their own farm or non. Non-contractual casual laborers have the closest connection to labor market on almost day-to day basis. who constitute about 60% of the workforce • Organized of the formal sector. Onethird of rural households are agricultural labor households. 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.The Indian labor market can be categorized into three sectors: • Rural workers . Of these. 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.3 million out of which 60% are in agriculture. During the year 1999-2000. subsisting on wage employment. Only about 9 percent of the total workforce is in the organized sector. or employed as casual wage laborers.3 million to 385. self-employed are most loosely connected to labor market because of the possibilities of work-sharing and work spreading in a self-employed enterprise.

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. The table given below classifies labor force across male-female and rural-urban dimensions. temporary workers. 1999-2000 also covered nonagricultural enterprises in the informal sector in India. self employed persons in un-organized sector and private households. include persons engaged regularly on an hourly basis.35 million enterprises and 79.2000 was of the order of 406 million.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.71 million workers employed thereof in the nonagricultural informal sector of the economy.01 million enterprises employing 39. and other employed in organized and unorganized enterprises that are not eligible either for paid.1.These workers. either in formal or informal sector or in private households. This category includes those getting time wage as well as those receiving piece wage or salary and paid apprentices. both full time and part time.workers. The regular salaried/wage employees are those working in others farm or non.34 million enterprises . out. • Those reporting wage and salary earning dominate in the urban labor force. • 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. The NSS 55th round. Among these 25. their share being around 62 per cent (lines 10 to 12 of Table). According to the results of the National Sample Survey conducted in 1999-2000. 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. therefore.74 million workers were in rural areas whereas 19. etc. Organized and Unorganized Labor In India. sick or annual leave or for any social security benefits given by the employer. a major chunk of labor force is employed in the unorganized sector. total work force as on 1. This category of persons may. are informal workers. As per that survey. there were 44. The unorganized / informal employment consists of causal and contributing family workers.

In the non-agricultural sector. The share of unorganized employment in the economy has displayed remarkable steadiness over the years. 98. 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. land transport. savings and capital formation. Out of 397million workers in 1999-2000.5 million part times. the highest numbers of informal employees are in retail trade.with 39.77 thousand industrial establishments. Out of these. construction.97 million workers in the urban area. It is clear that employment opportunity in the organized sector has remained more or less stagnant. 70.34 thousand are public sector enterprises while 121. showing only a marginal increase from 24 million in 1983 to 28 million in 1999-2000. 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%.43 thousand are in private sector. In the matter of savings the share of household sector in the total gross domestic saving mainly unorganized sector is about three fourth. The largest numbers of informal workers are in agriculture.2 percent.4% has been recorded in the number of . 1993-94 and 1999-2000. Among the workers engaged in the informal sector. Employment In India The organized sector in India consists of 293. 1987-88. Percentage of female workers to the total workers is 20. Since 2004. an increase of 1. It is evident that throughout this period a large portion of the workforce in India is found to be employed in the unorganized sector. In fact. 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. 172. The table below describes major employment trends for the organized and unorganized sector for the years 1983.21 million are full time and 9. textiles etc. 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. Thus. Thus unorganized sector has a crucial role in our economy in terms of employment and its contribution to the National Domestic Product.84 percent of the employment in agriculture is informal.

2%.. The public sector employs about 180.1 percent in . As on the 31st March. were also subjected to a negative growth of 0. Decrease in employment above 1 percent was observed in Madhya Pradesh Uttar Pradesh.4% and 0. While analyzing the figures zone wise. shows maximum negative growth in employment followed by Quasi Govt. The same trend continued in 2005 also. with a negative growth of 2.52 lakh persons.58 lakh while in 2004. 2005 the total employment in the organized sector was estimated to be 264. The Local Bodies and State Govt.establishments in the organized sector. recorded a negative growth of 2. Uttaranchal. An increase of more than 3 percent in employment was observed in Goa. Karnataka. The negative growth of employment was recorded in public sector while private sector showed an increasing trend. Assam and Nagaland. Local Bodies and State Govt. that is. West Bengal. the employment in public sector decreased by 1 percent while private sector increased by 2.3% respectively State wise analysis reflects that only Punjab and Kerala recorded a decrease of more than 3 percent.7 lakh persons while the private sector employs 84. highest decrease of 1. Himachal Pradesh and Gujarat and 1 percent or more in Pondicherry.9% followed by Quasi Govt.5 percent.6 percent was seen in Central Zone followed by 1 percent in Northern Zone and 0.43 lakh.6 percent in Southern Zone whereas the highest increase was 2 percent in Western Zone followed by 1. This means there has been an increase of 0. in which the Central Govt.1% in employment. Chandigarh and Andhra Pradesh. it was 264. The branch wise analysis of the public sector data reveals that Central Govt.

Amongst rural women workers.9 2003 107.1 26. In 1981.6per cent in 1999 to 26.3 lacs in 1999 to 106.North-Eastern Zone and 0. In the women workforce. Eastern Zone (3per cent) and Central Zone (1.21 lacs (58per cent) in the public sector and 20. 2005 a total number of 50. women from rural areas are greater in number as compared to the urban women. women workers are primarily employed in the unorganized sectors.9 percent in Eastern Zone in employment Women Employment Women workforce constitutes an integral part of total workforce in India.3 24.3per cent) and Northern Zone (1. Thus the percentage of women job seekers to the total job-seekers has also increased from 24.95 lacs (42per cent) in the Private Sector. followed by Western Zone (5.5 25. a majority is employed in agriculture and some are employed in cottage industries. Only Southern Zone registered a marginal dip of 0.67 per cent which increased up to 22.3per cent).2per cent).0 2004 106.2per cent in 2004.6 2000 104. As on the 31st March. The zone wise analysis showed an increase of 8 percent in NorthEastern Zone.5 26.8 percent Some Vital Statistics • The number of women job seekers has increased from 99.0 • .1 percent and by 2.73 per cent in 1991 and 26. Table 1: Number of Women Job Seekers Year Number of Women (in lacs) Percentage to total 1999 99. in the rural as well as urban areas.16 Lacs women employees were engaged in the organized sector. The participation of women in the labor force has always been lower than that of men.68 per cent in 2001. work participation rate for women was only 19. The work participation rate for women has increased significantly. On 31st march 2004.5 percent in the private sector during 2004-2005.1 lacs in 2004. out of which 29.8 25.3 2001 108. Employment of women in public sector increased by 1. women constituted 19 per cent of the total workforce. In the urban areas.9 2002 106.0 25.

68 per cent in 2001.1 lacs) women jobseekers followed by West Bengal (19.34 lacs women workers employed in the organized sector (Public and Private Sector).1 2001 8525. Theodore Roosevelt has said ―With self-discipline almost everything is possible‖.4 per cent in the previous year.8per cent of the total educated job-seekers.5 per cent in Agriculture.8 per cent was registered in Wholesale and Retail Trade followed by 5.1 2002 7921.• Number of Educated Women Job Seekers as on December 2004 was 7537. • As far as industries are concerned. and not at the employee personality. as compared to 18. An increase of 7. This is because the reason for discipline is to improve performance rather than punishing the employee .4per cent in 2004.1per cent in women employment.3 lacs) and Tamil Nadu (15.7 25.7 27. Social and Personal Services and 1. Hunting.6 28.3per cent to 70. in 2005.73 per cent in 1991 and 19. Forestry & Fishing.4 26. there were about 49. Discipline can be positively related to performance.7 per cent in Electricity. This shows an improvement over 22. It is the bridge between goals and accomplishments. • The work participation rate for women was 25. Effective discipline should be aimed at the behavior. 1. other industries reflected an increase in women employment.2 per cent in Transport. Gas & Water. the manufacturing industry faced a dip of 1. 1. Table 2: Number of Educated Women Job Seekers Year Number of Women Percentage to total 2000 7911.5 per cent in Construction. Effective Discipline Discipline is the key to success.4 per cent in Community. 5.6 per cent in Mining and Quarrying. Educated Women at the end of 2004 accounted for 25.8 2003 8032.67 per cent in 1981. Storage & Communications. • Women workers constituted 19 per cent of the total organized sector employment in the country. 5. On the other hand. • The percentage of educated women job seekers among the total women job seekers has gone down from 73. Self discipline makes employee realize what is required at work. 1. 2004.3 lacs) while minimum number of women job-seekers are in Rajasthan (1.4 26.8 • • The state wise analysis reflects that Kerala has the maximum (21. As on 31st March. Insurance Real Estate & Business Services.6 2004 7537.2 per cent in Financing.0 lacs).7 thousand.

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

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

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

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

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

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

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

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

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

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

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

1976 • The Cine Workers‘ Welfare Fund Act. Majority of labor force in India is working in unorganized sector. The purpose of these welfare funds is to provide housing. In order to provide social security to such workers. provide social security and raise their standard of living. 1981 Schemes under welfare funds provide assistance with respective to the following: • Public health and sanitation • Housing • Recreational (including standard of living) • Social security • Educational facilities • Water supply • Transportation • Medical facilities (prevention of diseases) • Social security o Group Insurance Schemes for Beedi and Cine workers o Social Security under Mine Workers Welfare Fund • Family welfare The welfare funds are raised by government by imposing cess on manufactured beedis. 1946 • The Limestone and Dolomite Mines Labor Welfare Fund Act.Labor Welfare Fund Labor welfare refers to all the facilities provided to labor in order to improve their working conditions. export of mica. consumption of limestone & dolomite and consumption and export of iron ore. The five legislations governing welfare funds are as follows: • The Mica Mines Labor Welfare Fund Act.per thousand manufactured beedis. feature films. Government has introduced Labor Welfare Fund to ensure assistance to unorganized labors. 1976 provides for levy of cess by way of excise duty on manufactured beedis from Re. . which are governed by different legislations.5/. medical care.to Rs. 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. are administered by Ministry of Labor. Manganese Ore and Chrome Ore Mines Labor Welfare Fund Act.1/. manganese ore & chrome ore. educational and recreational facilities to workers employed in beedi industry and non-coal mines and cine workers. Five different welfare funds. 1972 • The Iron Ore.

respectively.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. 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. on every feature film submitted to the Chairman. statutory and non-statutory welfare schemes. especially factories. suitable seating arrangements are to be provided.to Rs. Employee Welfare Schemes Organizations provide welfare facilities to their employees to keep their motivation levels high.with effect from 27th December 2000.6/. These include provisions provided in industrial acts like Factories Act 1948.3/. 1981 provides for duty of cess. 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. provides for levy and collection of cess on all mica exported as duty of Customs not exceeding 6.• The Cine Workers Welfare Cess Act. Manganese Ore & Chrome Ore between 50p to Re.1/. Mines Act 1962. 3. at such rate not being less than one thousand rupees and not exceeding twenty thousand rupees. . 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. The employee welfare schemes can be classified into two categories viz.to Rs.1/.5% ad valorem on export with effect from 1st November 1990.25% ad valorem. 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. Manganese Ore & Chrome Ore Mines Labor Welfare Cess Act. Central Board of Film Certification. Dock Workers Act (safety. 1946.6/. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. • The Limestone and Mines Labor Welfare Fund Act. Re. Facilities for sitting: In every organization. Drinking Water: At all the working places safe hygienic drinking water should be provided. • Mica Mines Labor Welfare Fund Act. The rate of cess on Limestone and Dolomite is Re. 1976 provides for levy and collection of cess on Iron Ore. This is 4. health and welfare) 1986. 2. • The Iron Ore.and Rs.

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

• Bonus: Bonus has always been an important factor in industrial disputes. and only 0. During the year 2003.2% and 0.2% of the disputes were caused by personnel. In 2002. ill treatment by staff members. followed by cause-groups wage and allowance and personnel with 20. The non economic factors will include victimization of workers. only 9. 0.2% respectively. disputes caused by personnel were 14. it is evident that the number of disputes caused by indiscipline has shown an increasing trend. wherein 11.1% while those caused by retrenchment and layoffs were 2.4% during 2003 and during 2004 increased up to 26. political factors. and conditions for work. During 2002.4% of the disputes were because of leaves and working hours. unjust layoffs and retrenchments. In 2003.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3. working hours. 6.9% in 2003. bonus. In 2002.5% and 3. The economic causes will include issues relating to compensation like wages.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003.6% in 2004 and 2005 respectively. 40.4% were caused by retrenchment. only 0. indiscipline accounted for the highest percentage (36.6% of disputes were caused by retrenchment and layoffs. In year 2005.4% of disputes. • Indiscipline and violence: From the given table. • Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes.9% of disputes were caused because of indiscipline. • Wages and allowances: Since the cost of living index is increasing. while 2.9%) of the total time-loss of all disputes. 29.4% and11.6% of disputes were caused due to indiscipline respectively. • Miscellaneous: The miscellaneous factors include . 21.6% of the disputes were caused by personnel. • Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During the year 2002. which rose up to 36.Inter/Intra Union Rivalry . During 2004. A similar trend was observed in 2004 where indiscipline accounted for 40. sympathetic strikes. This percentage was 20. Similarly in 2004 and 2005. allowances.4% of disputes were caused by demand of higher wages and allowances.4% and 0. workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living.4% respectively. indiscipline etc. a similar trend could be seen. In 2005.4% and 41.8% of disputes.The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. leave and holidays without pay.2%. wages and allowances accounted for 21.

399 disputes were recorded in the private sector.. which might have affected its industrial output. only 57 disputes were recorded in public sector which resulted in a wage loss of 79 Crores.Work Load . .Non-implementation of agreements and awards etc. lost 25.14 lakh mandays were lost due to work stoppages in 23 industrial disputes during January to March 2007.4 million mandays of work annually between 1998 and 2006. This significant decline is attributed to the serious attempts made by industries to improve industrial relations with their workers. More than 2. However.Standing orders/rules/service conditions/safety measures . The country. Though there has been a decline in the number of strikes. the country still witnessed some major strikes between 2004 and 2006. like those in Honda. the total number of disputes was 1097 which fell by more than half to 440 in 2006. a deeper look at the data reveals that the number of mandays (i. only 45 cases of disputes have been recorded during the first four months of 2007. Analysis Of Industrial Disputes The number of industrial disputes in country has shown slow but steady fall over the past ten years. Apollo. In 1998. In the recent past. it is clear that the private sector has witnessed greater number of disputes as compared to the public sector. In 2005.e.It is being estimated that this trend will continue in 2007 as well. In contrast to this. To support this. 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. on an average. Escorts. On analyzing the data sector wise. and Skumars factories and in SBI bank.Charter of Demands .. agriculture and mining and quarrying industries. maximum number of disputes has been recorded in the manufacturing.

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

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

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

4 per cent in 2005.60 million man-days respectively. This continuous decline in strikes and lockouts indicates that the industrial relations in India are improving. 426 strikes and 325 lockouts were observed which resulted in total timeloss of 28. as compared to the statistics of 2005. . The number of strikes and lockouts. During 2000. Maximum time-loss was caused by 297 lockouts during 2003 which resulted in a time-loss of 27. taken together. from which 10. Industrial disturbances were concentrated mainly in manufacturing (textile).6 million were lost to strikes and 13. in 2006 only 13. As a result.86 million mandays. The number and seriousness of strikes and lockouts have varied from year to year. there were only 154 strikes and 192 lockouts across the country. resulting in the loss of 10.76 million mandays. while the number of lockouts stood at 229 with a loss of 18. More than 1. During 2005. which resulted in the time loss of 3.76 million mandays were lost due to strikes and lockouts.81 million man-days.3 million workers were involved in these labor disputes.05 million mandays. As can be seen from the below chart.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 1990.1 million workdays were lost. There were 227 strikes in 2005. As compared to previous years.5 million to lockouts. financial intermediation.825 strikes and lockouts were recorded. West Bengal experienced the maximum instances of strikes and lockouts (19216) followed by Kerala (3619) and Rajasthan (19247).16 million man-days and 10. In January-September 2006. there has been a steep decline in the number of strikes and lockouts. was down by 4. 24. agriculture and mining and quarrying industries during 2005. 1.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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. Thus categories of Collective Bargaining are:Single employer bargaining. Collective Bargaining is…. A system which establishes. after its expiry. services and administers many of rules which governs the workers‘ place of work A procedure which determines the quantum of compensation which employee should receive and which influences the distribution of economic benefits. a) 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 .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. A method of settling disputes during pendency of agreement and of determining. whether a dispute should be re-opened or whether a strike or lock-out should be resorted to or not.

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

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

• Thus minor issues are defused and settled peacefully. • No legal compulsion on either side to negotiate of a dispute. • To iron-up differences in the beginning • Frank discussions. . the Industrial Relations Manager to initiate preliminary work and have initial discussions and inform the results to top management. • If both the parties are mutually prepared results can be achieved. • When issue is raised by the union.• 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.

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

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

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

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

Industrial Peace • Cordial labour – Management relations • Ideal situation for industrial growth • Constant vigilance is required • Is just opposite to industrial unrest Preconditions for Industrial Peace • Strong trade unions with democratic norms • Employers to have a progressive outlook • Both workers and management should have faith in Collective Bargaining & other peaceful means of settling disputes.• It is inappropriate to say that conflict is all good or bad. • It depends whether the conflict is functional or dysfunctional (destructive) and thus hinders the performance of the organization. disciplinary action and dismissal • Social security and labour welfare measures to provide for the legitimate needs of workers and their families. • When the conflicts become open. it gets into public lime-light and gets public opinion and support • During conflicts. . complaints and grievances and effective grievance handling machinery. • Better employer-employee communication greater and more effective attention to employee‘s problem. promotion. • Workers participation in management should encouraged • There should be open two-way communication between the parties to the IRs Measures of Industrial Peace • Liberal and fair management policy regarding wages and other benefits • Satisfactory working conditions • Mutually acceptable personnel policies in respect of employees. who do not normally accept decisions of the union leaders and management shows greater homogeneity during the strike period • Conflicts brings issues in open and thus are easy to solve. group gain power which is identified to solve the problem. Positive Aspects of Conflicts • It provides stability to the group concerned • Workers.

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

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

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