CHPATER: 8 Industrial Relations Introduction

Industrial relations constitute one of the most delicate and complex problems of the modern industrial society. This phenomenon of a new complex industrial set-up is directly attributable to the emergence of µIndustrial Revolution´. The pre-industrial revolution period was characterized by a simple process of manufacture, small scale investment, local markets and small number of persons employed. All this led to close proximity between the manager and the managed. Due to personal and direct relationship between the employer and the employee it was easier to secure cooperation of the latter. Any grievance or misunderstanding on the part of either party could be promptly removed. Also, there was no interference by the State in the economic activities of the people. Under such a set-up industrial relations were simple, direct and personal. This situation underwent a marked change with the advent of industrial revolution ± size of the business increased needing investment of enormous financial and human resources, there emerged a new class of professional managers causing divorce between ownership and management, and relations between the employer and the employer became entranged and gradually antagonistic. This new set-up rendered the old philosophy of industrial relation irrelevant and gave rise to complex, indirect, and impersonal industrial relations.

Industry today is neither viewed as a venture of employers alone nor profit if considered as its sole objective. It is considered to be a venture based on purposeful cooperation between management and labour in the process of production and maximum social good is regarded as its ultimate end and both management and employees contribute in their own way towards its success. Similarly, labour today is no more an unorganized mass of ignorant works ready to obey without resentment or protest the arbitrary and discretionary dictates of management. The management has to deal with employees today nto as individuals but also as members of organized social groups who are very much conscious about their rights and have substantial bargaining strength. Hence, the objective of evolving and maintaining sound industrial relations is not only to find our ways and means to solve conflicts to resolve differences but also to secure the cooperation among the employees in the conduct of industry. But maintaining smooth industrial relation is not an easy task. Almost all the industrialized countries of he world fact the problem of establishing and maintaining good management worker relationships in their industries. Each country has sought to find our solution, depending upon its economic, social and political environment. However, industrial conflict still arises and therefore establishment and maintenance of satisfactory industrial relations forms an important plank in the personnel policies of modern organization.

Meaning In the broad sense, industrial relations cover all such relationships that a business enterprise maintains with various sections of the society such as workers, state, customers and public who come into its contact. In the narrow sense, it refers to all types of relationships between employer and employees, trade union and management, works and union and between workers and workers. It also includes all sorts of relationships at both formal and informal levels in the organization. The term µindustrial relations¶ has been variously defined. J.T. Dunlop defines industrial relations as ³the complex interrelations among managers, workers and agencies of the governments´. According to Dale Yoder ³industrial relations is the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreement or labour contract´. In indusial relations, therefore, one seeks to study how people get on together at their work, what difficulties arise between them, how their relations including wages and working conditions etc., are regulated. Industrial relations, thus, include both µindustrial relations¶ and µcollective relations¶ as well as the role of the state in regulating these relations. Such a relationship is therefore complex and multidimensional resting on economic, social, psychological, ethical, occupational, political and legal levels. There are mainly two set of factors that determine the state of industrial relations ± whether good or poor in any country. The first set of factors, described as µinstitutional factors¶ include type of labour legislation, policy of state relating to labour and industry, extent and stage of development of trade unions and employers¶ organizations and the type of social institutions. The other set of factors, described as µeconomic factors¶ include the nature of economic organization capitalist, socialist technology, the sources of demand and supply in the labour market, the nature and composition of labour force etc.

Significance of Industrial Relations
Maintenance of harmonious industrials relations is on vital importance for the survival and growth of the industrials enterprise. Good industrial relations result in increased efficiency and hence prosperity, reduced turnover and other tangible benefits to the organization. The significance of industrial relations can be summarized as below: 1. It establishes industrial democracy: Industrial relations means settling employees problems through collective bargaining, mutual cooperation and mutual agreement amongst the parties i.e., management and employees¶ unions. This helps in establishing industrial democracy in the organization which motivates them to contribute their best to the growth and prosperity of the organization.

2. It contributes to economic growth and development: Good industrial relations lead to increased efficiency and hence higher productivity and income. This will result in economic development of the economy. 3. It improves morale of he work force: Good industrial relations, built-in mutual cooperation and common agreed approach motivate one to contribute one¶s best, result in higher productivity and hence income, give more job satisfaction and help improve the morale of the workers. 4. It ensures optimum use of scare resources: Good and harmonious industrial relations create a sense of belongingness and group-cohesiveness among workers, and also a congenial environment resulting in less industrial unrest, grievances and disputes. This will ensure optimum use of resources, both human and materials, eliminating all types of wastage. 5. It discourages unfair practices on the part of both management and unions: Industrial relations involve setting up a machinery to solve problems confronted by management and employees through mutual agreement to which both these parties are bound. This results in banning of the unfair practices being used by employers or trade unions. 6. It prompts enactment of sound labour legislation: Industrial relations necessitate passing of certain labour laws to protect and promote the welfare of labour and safeguard interests of all the parties against unfair means or practices. 7. It facilitates change: Good industrial relations help in improvement of cooperation, team work, performance and productivity and hence in taking full advantages of modern inventions, innovations and other scientific and technological advances. It helps the work force to adjust themselves to change easily and quickly Causes of Poor Industrial Relations Perhaps the main cause or source of poor industrial relations resulting in inefficiency and labour unrest is mental laziness on the part of both management and labour. Management is not sufficiently concerned to ascertain the causes of inefficiency and unrest following the laissezfaire policy, until it is faced with strikes and more serious unrest. Even with regard to methods of work, management does not bother to devise the best method but leaves it mainly to the subordinates to work it out for themselves. Contempt on the part of the employers towards the workers is another major cause. However, the following are briefly the causes of poor industrial relations: 1. Mental inertia on the part of management and labour; 2. An intolerant attitude of contempt of contempt towards the workers on the part of management.

3. Inadequate fixation of wage or wage structure; 4. Unhealthy working conditions; 5. Indiscipline; 6. Lack of human relations skill on the part of supervisors and other managers; 7. Desire on the part of the workers for higher bonus or DA and the corresponding desire of the employers to give as little as possible; 8. Inappropriate introduction of automation without providing the right climate; 9. Unduly heavy workloads;

10. Inadequate welfare facilities; 11. Dispute on sharing the gains of productivity; 12. Unfair labour practices, like victimization and undue dismissal; 13. Retrenchment, dismissals and lock-outs on the part of management and strikes on the part of the workers; 14. Inter-union rivalries; and 15. General economic and political environment, such as rising prices, strikes by others, and general indiscipline having their effect on the employees¶ attitudes. Objectives of Industrial Relations 1. To bring better understanding and cooperation between employers and workers. 2. To establish a proper channel of communication between workers and management. 3. To ensure constructive contribution of trade unions. 4. To avoid industrial conflicts and to maintain harmonious relations. 5. To safeguard the interest of workers and the management. 6. To work in the direction of establishing and maintaining industrial democracy. 7. To ensure workers¶ participation in decision-making. 8. To increase the morale and discipline of workers. 9. To ensure better working conditions, living conditions and reasonable wages.

10. To develop employees to adapt themselves for technological, social and economic changes. 11. To make positive contributions for the economic development of the country. Scope The scope of industrial relations includes all aspects of relationships such as bringing cordial and healthy labour management relations, creating industrial peace and developing industrial democracy. The cordial and healthy labour management relations could be brought iny y y y y y by safeguarding the interest of the workers; by fixing reasonable wages; by providing good working conditions; by providing other social security measures; by maintaining healthy trade unions; by collective bargaining.

The industrial peace could be attained ± y y by setting industrial disputes through mutual understanding and agreement; by evolving various legal measure and setting up various machineries such as Works Committee, Boards of Conciliation, Labour Courts etc.

The industrial democracy could be achieved ± y y by allowing workers to take part in management; and by recognition of human rights.

Principle of Good Industrial Relations y The willingness and ability of management and trade unions to deal with the problems freely, independently and with responsibility. Recognition of collective bargaining.



Desirability of associations of workers and managements with the Government while formulating and implementing policies relating to general economic and social measures affecting industrial relations. Fair redressal of employee grievances by the management Providing satisfactory working conditions and payment of fair wage. Introducing a suitable system of employees education and training. Developing proper communication system between management and employees. To ensure better working conditions, living conditions and reasonable wages. To develop employees to adapt themselves for technological, social and economic changes. To make positive contributions for the economic development of the country.

y y y y y y


Grievance in Industry:
Grievance means any type of dissatisfaction or discontentment¶s arising out of factors related to an employee¶s job which he thinks are unfair. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair, unjust or inequitable. In an organization, a grievance may arise due to several factors such as: y Violation of management¶s responsibility such as poor working conditions y Violation of company¶s rules and regulations y Violation of labor laws y Violation of natural rules of justice such as unfair treatment in promotion, etc. Various sources of grievance may be categorized under three heads: (i) management policies, (ii) working conditions, and (iii) personal factors 1. Grievance resulting from management policies include:
o o o o

Wage rates Leave policy Overtime Lack of career planning

o o o

Role conflicts Lack of regard for collective agreement Disparity between skill of worker and job responsibility

2. Grievance resulting from working conditions include:
o o o o

Poor safety and bad physical conditions Unavailability of tools and proper machinery Negative approach to discipline Unrealistic targets

3. Grievance resulting from inter-personal factors include
o o o o

Poor relationships with team members Autocratic leadership style of superiors Poor relations with seniors Conflicts with peers and colleagues

It is necessary to distinguish a complaint from grievance. A complaint is an indication of employee dissatisfaction that has not been submitted in written. On the other hand, a grievance is a complaint that has been put in writing and made formal. Grievances are symptoms of conflicts in industry. Therefore, management should be concerned with both complaints and grievances, because both may be important indicators of potential problems within the workforce. Without a grievance procedure, management may be unable to respond to employee concerns since managers are unaware of them. Therefore, a formal grievance procedure is a valuable communication tool for the organization. Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance. The grievance procedures differ from organization to organization. 1. Open door policy 2. Step-ladder policy Open door policy: Under this policy, the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. Such a policy works well only in small organizations. However, in bigger organizations, top management executives are usually busy with other concerned matters of the company. Moreover, it is believed that open door policy is suitable for executives; operational employees may feel shy to go to top management.

Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step procedure for getting his grievance redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with superior¶s decision, then he discusses his grievance with the departmental head. The departmental head discusses the problem with joint grievance committees to find a solution. However, if the committee also fails to redress the grievance, then it may be referred to chief executive. If the chief executive also fails to redress the grievance, then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties. GRIEVANCE PROCEDURE IN INDIAN INDUSTRY The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established grievance procedure for the country which would be acceptable to unions as well as to management. In the 16th session of Indian Labor Conference, a model for grievance procedure was drawn up. This model helps in creation of grievance machinery. According to it, workers¶ representatives are to be elected for a department or their union is to nominate them. Management has to specify the persons in each department who are to be approached first and the departmental heads who are supposed to be approached in the second step. The Model Grievance Procedure specifies the details of all the steps that are to be followed while redressing grievances. These steps are: STEP 1: In the first step the grievance is to be submitted to departmental representative, who is a representative of management. He has to give his answer within 48 hours. STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee can take his grievance to head of the department, who has to give his decision within 3 days. STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he can take the grievance to Grievance Committee. The Grievance Committee makes its recommendations to the manager within 7 days in the form of a report. 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. An appeal for revision of final decision can be made by the worker if he is not satisfied with it. The management must communicate its decision to the worker within 7 days.
STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary arbitration.

Collective Bargaining
Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry. It is the process of negotiation between firm¶s and workers¶ representatives for the purpose of establishing mutually agreeable conditions of employment. It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. ILO has defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment/industrial relations with one another. Collective bargaining involves discussions and negotiations between two groups as to the terms and conditions of employment. It is called µcollective¶ because both the employer and the employee act as a group rather than as individuals. It is known as µbargaining¶ because the method of reaching an agreement involves proposals and counter proposals, offers and counter offers and other negotiations. Thus collective bargaining:
y y y y y

is a collective process in which representatives of both the management and employees participate. is a continuous process which aims at establishing stable relationships between the parties involved. not only involves the bargaining agreement, but also involves the implementation of such an agreement. attempts in achieving discipline in the industry is a flexible approach, as the parties involved have to adopt a flexible attitude towards negotiations.

IMPORTANCE OF COLLECTIVE BARGAINING Collective bargaining plays a vital role in settling and preventing industrial disputes. Specifically its importance is evident from the following: 1. Increase the economic strength of unions and management.
2. Establish uniform conditions of employment with a view to avoiding industrial disputes and maintaining stable peace in the industry.

3. Secure a prompt and fair settlement of grievances. 4. Avoids interruptions in work which follow strikes, go-slow tactics and similar coercive activities;

5. Lay down fair rates of wages and norms of working conditions; 6. Achieve an efficient operation of the plant; 7. Promote the stability and prosperity of the industry; 8. Provides a method or the regulation of the conditions of employment of those who are directly concerned about them; 9. It provides a solution to the problem of sickness in industry, and ensure old age pension benefits and other fringe benefits; 10. It creates new and varied procedures for the solution of the problems as and when they ariseà problems which vex industrial relations; and its form can be adjusted to meet new situations. Since basic standards are laid down, the employee is assured that he will be required to work under the stipulated audit; 11. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced. 12. As a vehicle of industrial peace, collective bargaining has no equal. It is the most important and significant aspect of labor-management relations, and extends the democratic principle from the political to the industrial field. 13. It builds up a system of industrial jurisprudence by introducing civil rights in industry. In other words, it ensures that management is conducted by rules rather than by arbitrary decisions;

Need for Collective Bargaining
(a) A high degree at collective bargaining as measured in terms of the proportion of workers covered by collective agreements; (b) Qualitative conduct of the parties to collective bargaining both before a situation warranting negotiations develops and the methods followed at the time of arriving at agreements; (c) The right priorities assigned to different methods in the agreement and their changing pattern over time; and (d) A structure of bargaining with emphasis on central bargaining which is purported to give some order and stability to labor management relations. ESSENTIALS FOR SUCCESSFUL COLLECTIVE BARGAINING: 1. Mutual Recognition

In the first phase, recognition of union by management is of great importance. A trade union should be recognized. Collective bargaining cannot begin until union is recognized and regarded as an integral part of industrial relations. Similarly union should not pursue the militant aggressive strategy. Since collective bargaining is a two way process it is necessary for both to shed their suspicion for each other and recognize each other in good faith. 2. Mutual accommodation: Heat of collective bargaining is the process for continuous joint consideration and adjustment of plant problems. There has to be a greater emphasis on mutual accommodation rather than conflict. The approach must be of mutual ³give and take´ rather ³take it or leave it´. 3. Single strong union: A strong and stable union is an essential for the success of collective bargaining. The employers can easily ignore a weak union on the plea that it hardly represents the workers. Further, rivalry among unions also thwarts the development of collective bargaining. Rival unions make it more difficult to introduce collective bargaining. 4. Efficient and permanent bargaining machinery: The bargaining machinery must be efficient and permanent. No ad-hoc arrangements are satisfactory because bargaining is a continuing process. An agreement is merely a framework for every day working relationships, the main bargain is carried on daily and for this, there is a need to have permanent machinery. As for machinery being efficient, it has three aspects: (a) availability of full information; (b) selection of proper representatives; and (c) recognition of natural temperament of each other. 5. Bargainers must have authority: To procedures must be developed to assure that negotiators are known to have authority to bind their constituents. If bargaining representatives have to refer constantly back to their respective organizations, it makes bargaining process most ridiculous and ineffective, because parties know by experience that bargaining team is only a showpiece and not the real authority. The technical character of contemporary bargaining requires that negotiations be conducted by top union leaders and top management in most cases. 6. Political climate: Finally if collective bargaining has to be fully effective, a favorable political climate must exist. The particular government must be convinced of bargaining¶s positive contribution. If encouraging attitude of government exists, it does everything to facilitae bargaining process such as providing facility for starting unions, giving them recognitions and providing machinery for the settlement of dispute, mediation and conciliation.

However, the role of state has to be minimum because collective bargaining is primarily two way process more concerned with micro aspects. CAUSES OF LIMITED SUCCESS OF CB IN INDIA/ FAILURE: Problems with unions: 1. CB mainly depends on the strength of unions. 2. Weak trade unions cannot initiate strong arguments during negotiations. 3. Not many strong unions in India. Indian unions are bogged down by the problems of: multiplicity, inter and intra-union rivalry, weak financial position and non-recognition. So, unanimous decision is unlikely to be presented at the negotiating table. Problems from Government: The Government has not been making any strong efforts for the development of CB. Imposition of many restrictions regarding strikes and lockouts has removed the `edge` of the CB process. Political interference: Interference of political leaders in all aspects of union matters has increased over the years. Almost all unions are associating themselves with some political party or the other. Legal problems: Now that adjudication is easily accessible, the CB process is losing its importance. Management attitude: In India, managements have a negative attitude towards unions. They do not appreciate their workers joining unions. Suggestions for better functioning of CB: The Indian Institute of Personnel Management has offered the following suggestions: 1. A progressive and strong management that is conscious of its obligations and responsibilities to the various stakeholders. 2. A truly representative ± enlightened and strong ± trade union should come into being and should function on strictly constitutional lines. 3. There should be unanimity between labor and management on the basic objectives of the organization and a mutual recognition of their rights and obligations. 4. When there are several units of the company, there should be a delegation of authority to the local management. 5. A fact-finding approach and a willingness to use new tools should be adopted for the solution of industrial problems.

Industrial Disputes Meaning According to Section 2(K) of the Industrial Disputes Act, 1947, and µindustrial dispute¶ means ³any dispute or difference between employers and employees or between employers and workmen or between workmen and workmen, which is connected with the employment or nonemployment or the terms of employment or with the conditions of labour of any person. Thus form the legal point of view, industrial dispute does not merely refer to difference between labour and capital as is generally thought, but it refers to differences that affect groups of workmen and employers engaged in an industry. Essentially, therefore, the differences of opinions between employers and workmen in regard to employment, non-employment, terms of employment or the conditions of labour where the contesting parties are directly and substantially interested in maintaining their respective contentious constitute the subject-matter of an industrial dispute. Causes of Industrial Disputes The causes of industrial conflict or disputes have been much varied. These may be described partly a psychological or social and partly political, but predominantly economic. Some important factors responsible for industrial conflict and poor industrial relations many be briefly stated as follows: y Management¶s general apathetic towards workers or employees because of their contention that they want more and more economic or monetary rewards and want to do less work. Mental inertia on the part of both management and labour. Lack of proper fixation of wages inconformity with cost of living and a reasonable wage structure generally. Bad working conditions. Attempts by management to introduce changes (such a rationalization, modernization or automation) without creating a favourable to appropriate climate or environment for the same. Lack of competence or training on the part of first-line supervision as well management at upper levels in the practice of human relations. Assignment of unduly heavy work-loads to worker, unfair labour practices (such as victimization or undue dismissal).

y y

y y




Lack of strong and healthy trade unionism, lack of a proper policy of union recognition and inter-union rivalries. A spirit of non-cooperation and a general tendency among employees to criticize or oppose managerial policies or decisions even when they may be in the right directions. A fall in the standard of discipline among employees largely due to wrong or improper leadership, often resulting in insubordination or disobedience on the part of employees. Difference in regard to sharing the gains of increased productivity. Inadequate collective bargaining agreements. Legal complexities in the industrial relations machinery or settlement of industrial disputes. Lack of necessary changes in the working of government in accordance with changing needs and circumstances. Combination of too much law and too little respect for law even at high levels. Growing factional and personal difference among rank-and-file employees who are union members or union leaders and a tendency on the part of the management in some cases to prefer having with outside leaders and not give due respect to worker-leaders. Political environment of the country; and Agitation and wrong propaganda by selfish labour leaders to further their own interests of their own party.



y y y


y y

y y

Forms of Disputes Strikes, lockouts and gheraos are the most common forms of disputes. Strike ³Strike´ means a cessation of work by a body of persons employed in any industry acting in combination; or a concerted refusal or a refusal under a common understanding or an number of persons who are or have been so employed to continue to work or to accept employment. The following points may be noted regarding the definition of strike: y Strike can take place only when there is a cessation of work or refusal to work by the workmen acting in combination or in a concerted manner.


A concerted refusal or a refusal under a common understanding of any number of persons to continue to work or to accept employment will amount to a strike. A general strike is one when there is a concert of combination of workers stopping or refusing to resume work. Going on mass casual leave under a common understanding amounts to a strike. If on the sudden death of a fellow-worker, the workmen acting in concert refuse to resume work, it amounts to a strike (National Textile Workers¶ Union Vs. Shree Meenakshi Mills (1951) II L.L.J. 516). The striking workman, must be employed in an µindustry¶ which has not been closed down. Even when workmen cease to work, the relationship of employers and employees is deemed to continue albeit in a state of belligerent suspension.




Types of Strike y Stay-in, sit-down, pen-down strike: In all such cases, the workmen after taking their seats, refuse to do work. All such acts on the part of the workmen acting in combination, amount to a strike. Go-slow: Go-slow does not amount to strike, but it is a serious case of is conduct. Sympathetic strike : Cessation of work in the support of the demands of workmen belonging to other employer is called a sympathetic strike. The management can take disciplinary action for the absence of workmen. However, in Remalingam Vs. Indian Metallurgical Corporation, Madras, 1964-I L.L.J.81, it was held that such cessation of work will not amount to a strike since there is no intention to use the strike against the management. Hunger strike: Some workers may resort to fast on or near the place of work or residence of the employers. If it is peaceful and does not result in cessation of work, it will not constitute a strike. But if due to such an fact, even those present for work, could not be given work, it will amount to strike (Pepariach Sugar Mills Ltd. Vs. Their Workmen). Lightning or wildcat strike: A wildcat strike is an unofficial strike i.e. a strike not sanctioned by the union. Such strikes occasionally occur in violation of the no-strike pledge in collective bargaining agreements. In such a situation union is obliged to use its best efforts to end the strike. Such strikes are prohibited in public utility services under Section 22 of the Industrial Disputes Act, 1947. Further, the standing order of a company generally required for notice. Work-to-rule: Since there is a no cessation of work, it does not constitute a strike.

y y




Lockout Section 2(1) of the Industrial Disputes Act, 1947 defines ³lockout´ to mean the temporary closing of a place of employment or the suspension of work, or the refusal by an employers to continue to employ any number of persons employed by him, lockout, thus, is the counterpart of strike ± the corresponding weapon the hands of employer to resist the collective demands of workmen or to enforce his terms. It has been held by the courts that the suspension of work as a disciplinary measure does not amount to lockout. Similarly, temporary suspension of work called lay-off is not lock-out. Gherao Gherao means encirclement of the managers to criminally intimidate him to accept the demands of the workers. It amounts to criminal conspiracy under Section 120-A of the I.P.C. and is not saved by Sec. 17 of the Trade Unions Act on the grounds of its being a concerted activity. Regulation of strikes and lock-outs Employees do not have an unfettered right to go on strike nor do employers have such right to impost lockout. The Industrial Disputes Act lays down several restrictions on the rights of both the parties. A strike or lockout commenced or continued in contravention of those restriction is termed illegal and there is serve punishment provided for the same. Illegal strikes and lockout are of two types: y y Those which are illegal form the time of their commencement; and Those which are not illegal at the time of commencement but become illegal subsequently. Section 22 and 23 of the IDA provide for certain restriction which if not followed make strikes and lockouts illegal from their very commencement. According to this section, no person employed shall go on strike in breach of contracty Without giving notice of strike to the employer, as here matter provided, within 6 week before striking; or Within fourteen days of giving such notice; or Before the expiry of the date of strike specified in any such notice as aforesaid; or During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after the conclusion of such proceedings.

y y y

Consequences of illegal strikes and lock-outs.
1. Penalty for illegal strikes [Sec.26(1)]: Any workman who commences, continues or otherwise acts in furtherance of a strike which is illegal, shall be punishable with imprisonment for a term which may extend to 1 month, or with fine which may extend to Rs. 50, or with both.

2. Penalty for illegal lock-out [Sec.26(2): Any employer who commences, continues or otherwise acts in furtherance of a lock-out which is illegal, shall be punishable with imprisonment for a term which may extend to 1 month, or with fine which may extend to Rs. 1,000 or with both. 3. Penalty for instigation, etc. [Sec. 27]: Any person who instigates or incites others to take part in, or otherwise acts in furtherance of, a strike or lock-out which is illegal, shall be punishable with imprisonment for a term which may extend to 6 months, or with fine which may extend to Rs. 1,000 or with both. 4. Penalty for giving financial aid for illegal strikes and lock-outs [Sec. 28] : Any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out shall be punishable with an imprisonment for a term which may extend to 6 months, or with fine which may extend to Rs. 1,000 or with both. Machinery for Prevention and Settlement of Industrial Relations The machinery for prevention and settlement of the disputes has been given in the following figure: Machinery for Prevention and Settlement of Industrial Relations

Voluntary Methods

Government Machinery

Statutory Measures

Code of Discipline

Tripartite Machinery

Worker¶s Participation

Collective Bargaining

I.D. Act, 1947

State Acts

Labour Administration (States & Central Levels) Works Committee Conciliation Voluntary Arbitration Court of Enquiry Adjudication

Conciliation Officers

Conciliation Board

Labour Court

Industrial Tribunal

National Tribunal

Voluntary Methods Code of discipline Formally announced in 1958, the Code of Discipline provides guidelines for the workers, unions and employers. The code which was approved by major national trade unions and principal organisation of employers enjoyed on them to create an environment of mutual trust and cooperation and to settle the disputes by mutual negotiation, conciliation and voluntary arbitration. It required the employers and workers to utilize the existing machinery for the settlement of disputes. A few important provisions of code of discipline are: y y y Strikes and lockout cannot be declared without proper notice. The parties should not take any action without consulting each other. There should be no go slow statistics or any resort to deliberate damage to plant or property or resort to acts of violence, intimidation, coercion etc.

The code has moral sanction only and it does not entail any legal liability or punishment. Tripartite machinery Tripartite machinery consists of various bodies like Indian Labour Conference, the Standing Labour Committee, the International Committees, the Central Implementation and Evaluation Committee and the Committee on conventions. Generally, these committees include representatives from centre and the states, and the same number of workers¶ and employers¶ organisatoins. These various committees are basically of advisory nature, yet they carry considerable weight among the government, workers and employers. Workers¶ participation in management Workers¶ participation in management is an essential ingredient of industrial democracy. The concept of workers participation in management is based on ³Human Relations´ approach to management which brought about new set of values to labour and management. According to one view, workers participation is based on the fundamental concept that the ordinary workers invest his labour in, and ties his fate to, his place of work and, therefore, he has a legitimate right to have a share in influencing the various aspects of company policy´.

According to G.S. Walpole, participation in management gives the workers a sense of importance, pride and accomplishment; it gives him the freedom and the opportunity for selfexpression; a feeling of belonging to his place of work and a sense of workmanship and

creativity. It provides for the integration of his interests with those of the management and makes him a joint partners in the enterprise´. The forms of workers participation in management vary from industry to industry and country to country depending upon the political system, pattern of management relations and subject or area of participation. The forms of workers participation may be as follows: 1. Joint Consultation Modes 2. Joint Decision Model 3. Self Management, or Auto Management Scheme 4. Workers Representation on Board It should be borne in mind that when individuals are provided with opportunities for expression and share in decision-making, they show much initiative and accept responsibility substantially. The rationale of workers¶ participation in management lies in that it helps in creating amongst the workers a sense of involvement in their organisatoin, a better understanding of their role in the smooth functioning of industry and provides them a means of self-realization, thereby, promoting efficiency and increased productivity. Collective bargaining Collective bargaining is a source of solving the problems of employees in the work situation collectively. It provides a good climate for discussing the problems of workers with their employers. The employees put their demands before the employers and the employers also gives certain concession to them. Thus it ensures that the management cannot take unilateral decisions concerning the work ignoring the workers. It also helps the works to achieve reasonable wages, working conditions, working hours, fringe benefits etc. It provides them a collective strength to bargain with the employer. It also provides the employer some control over the employees. The process of collective bargaining is bipartite in nature i.e., the negotiations are between the employers without a thirds party¶s intervention. Thus collective bargaining serves to bridge the emotional and physiological between the workers and employers through direct discussions. Government Machinery The Ministry of Labour and Employment at the centre is the key agency for the policy formulation and administration in all the matters pertaining to labour. The State governments with the cooperation of their labour departments are responsible for the enforcement thereof. The Directorate General of Employment and Training (DGET), Office of Chief Labour Commissioner (CLC) (Central), the Director General of Mines Safety (DGMS), the Director General of Factory Advice and Labour Institutes, and Industrial Tribunals are some of the agencies through which the Central Government discharges its functions related to framing of

labour laws and settlement of industrial disputes. The Labour Secretary is the overall incharge of policy formulation and administration, and commissioners of labour in the States are the operative arms for the effective implementation of Labour Laws. Statutory Measures ± Industrial Disputes Act, 1947 The States are free to frame their own labour laws as the labour falls in the concurrent list, Some States like Maharashtra, M.P., U.P. and Rajasthan have their own Acts. In the rest of the states, Industrial Disputes Act, 1947 applies. However, in the States having their own Acts, the IDA, 1947 will be applicable to the industries not covered by the State Legislation. Formally announced in 1947, the Industrial Disputes Act, has been amended several times since then. Under the Act the following authorities have been proposed for the investigation and settlement of industrial disputes. Works committees The IDA, 1947 provides for setting up works committees in every organisation having 100 or more employees. Having representatives of employees and employees, these are consultative bodies and are set up for maintaining harmonious relations at the work lace and sort out the difference if any. Though the act does not define the jurisdiction of these committees, yet their functions mainly include providing proper working conditions and amenities for the welfare of employees at the work place or away from the work. A work committee aims at promoting measures for securing the preserving amity and good relations between employees and workers. Conciliation When the services of a neural party are availed for the amicable solution of a dispute between the disputing parties, this practice is known as conciliation. The IDA, 1947 provides for conciliation and it can be utilized either by appointing Conciliation Officer or by setting up Board or Conciliation. The Conciliation Officers are appointed by the Government by notifying in the Official Gazettee. Usually at the State level, Commissioners of Labour, Additional and Deputy Commissioners of Labour act as Conciliation Officer for disputes arising in any undertaking employing less than twenty workers. In the conciliation process the officer ties to bring the disputing parties together towards a settlement of the dispute and hence works as a mediator. The intervention of conciliation officer may e mandatory or discretionary. But in the disputes related to public utilities in respect of which proper notice is served to him, his intervention becomes mandatory. The Board of Conciliation is a higher forum and is constituted for a specific dispute. It consists of equal number of representatives of employers and employees under the chairmanship of an independent person, appointed by the government. The Board has to submit its report to the government regarding the dispute within two months from the date dispute was referred to it. However, depending on the case, the period can be extended.

Voluntary arbitration Industrial Disputes (Amendment) Bill, 1956 incorporated Section 10A favouring voluntary arbitration. In case of existed or apprehended dispute, the disputing parties can enter into an arbitration agreement in writing. The success of voluntary arbitration depends on ³a sufficient degree of mutual confidence in decision by agreement on subjects which may be submitted for arbitration´. Court of enquiry The IDA, 1947 empowers the appropriate government to constitute a Court of Enquiry. This body basically is a fact-finding agency, constituted just to reveal the causes of the disputes and does not care much for the settlement thereof. The Court of Enquiry is required to submit its report to the government ordinarily within six months from the commencement of enquiry. The report of the court shall be published by the government within 30 days of its receipt. Adjudication If the dispute is not settled by any other method, the government may refer it for adjudication. Hence it is a compulsory method which provides for three-tier system for adjudication of industrial disputes. This machinery consists of Labour Court, Industrial Tribunals and National Tribunal. The first two bodies can be set up either by State or Central Government but the National Tribunal can be constituted by Central Government only, when it thinks that the solution of dispute is of national significance. A Labour Court consists of one person only, called Presiding Officer, who is or has been a judge of a High Court. The jurisdiction of Industrial Tribunal is comparatively wider than Labour Courts, and further the Presiding Officer of Tribunal can have two assessors may be appointed by the Central Government to help its Presiding Officer. Labour Courts and Tribunals are now required to submit award to the appropriate government within three months in case of individual disputes The submitted award shall be published by government within 30 days from the date of its receipt. It shall come into force on the expiry of 30 days from the date if its publication and shall be operative for a period of one year, unless declared otherwise by the appropriate government.

asures - Non-implementation of agreements and awards etc.

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