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VSB ENGINEERING COLLEGE DEPARTMENT OF MANAGEMENT STUDIES STAFF NAME CLASS/TRIMESTER SUBJECT LEGISLATION : N.

PRABHA : II MBA / IV : INDUSTRIAL RELATION AND LABOUR

2 MARK QUESTIONS WITH ANSWER: 1. 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.” 2. Approaches of IR Unitary perspective Pluralistic perspective Marxist Perspective 3. 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. Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. 4. Levels of Collective Bargaining 1. National level 2. Sector or industry level 3. Company/enterprise level

5. Collective bargaining process: .

Sense of Participation 5. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair. Trade Union The Trade Union Act 1926 defines a trade union as a combination. unjust or inequitable. Minimize Discrimination 3. 7. whether temporary or permanent. They are not entitled to any paid holiday leave or paid sick leaves 10. Reasons for Joining Trade Unions 1. Sense of Belongingness 6.LS) 11. Casual Workers: Casual workers are those workers who are generally employed by small entrepreneurs on daily or weekly basis on a low wage rate. Twelve Central Trade Union Organizations in India: • All India Trade Union Congress (AITUC) • Bharatiya Mazdoor Sangh (BMS) • Centre of Indian Trade Unions (CITU) • Hind Mazdoor Kisan Panchayat (HMKP) • Hind Mazdoor Sabha (HMS) • Indian Federation of Free Trade Unions (IFFTU) • Indian National Trade Union Congress (INTUC) • National Front of Indian Trade Unions (NFITU) • National Labor Organization (NLO) • Trade Unions Co-ordination Centre (TUCC) • United Trade Union Congress (UTUC) and • United Trade Union Congress .Lenin Sarani (UTUC . Sense of Security 4. . Fraternal functions 8. or for imposing restrictive condition on the conduct of any trade or business. and includes any federation of two or more trade unions. Betterment of relationships 9. Greater Bargaining Power 2. or between employers and employers. Functions of Trade unions Militant functions. formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen.6. Grievance Grievance means any type of dissatisfaction or discontentments arising out of factors related to an employee’s job which he thinks are unfair. 2. Platform for self expression 7. .

It may also be an extension of the sympathetic strike to express generalized protest by the workers. or a refusal under a common understanding of any number of such persons to continue to work or to accept employment”.12. allowances like traveling allowance. In these kinds of strikes. 17. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. workers ask for increase in wages. or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment. 15. of any person 13. an industrial dispute in defined as any dispute or difference between employers and employers.Inter/Intra Union Rivalry . dearness allowance. 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. labors stop their work to enforce their economic demands such as wages and bonus. These strikes are usually intended to create political pressure on the ruling government.1947. . General Strike: It means a strike by members of all or most of the unions in a region or an industry. bonus and other facilities such as increase in privilege leave and casual leave.Charter of Demands . Causes of Industrial Disputes Wages and allowances Personnel and retrenchment Indiscipline and violence Bonus: Leave and working hours Miscellaneous: The miscellaneous factors include . 16. a strike is “a cessation of work by a body of persons employed in an industry acting in combination. it is called a sympathetic strike.Standing orders/rules/service conditions/safety measures . Strike: According to Industrial Disputes Act 1947. house rent allowance. 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. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. rather than on any one employer. Industrial Disputes As per Section 2(k) of Industrial Disputes Act. or between workmen and which is connected with the employment or non-employment or the terms of employment or with the conditions of labor.Work Load .Non-implementation of agreements and awards 14. Economic Strike: Under this type of strike. or between employers and workmen.

Workers show up to their place of employment. However. In 2004. 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. GHERAO Gherao in Hindi means to surround. Slow Down Strike: Employees remain on their jobs under this type of strike. They don’t break any rules. They were protesting against some remarks allegedly made against them by an Assistant Commissioner 22. But do not work.18. 21. PICKETING when workers are dissuaded from work by stationing certain men at the factory gates. Sit down Strike: In this case. 23. 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. such a step is known as picketing. 20. it is perfectly legal. Lock Out: 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. . all or a significant number of union members call in sick on the same day. because they just use their sick leave that was allotted to them on the same day. Pickets are workers who are on strike that stand at the entrance to their workplace. a significant number of advocated went on wildcat strike at the City Civil Court premises in Bangalore. 25. 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. Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions. but restrict the rate of output in an organized manner. They also refuse to leave. but they refuse to work. They keep control over production facilities. Such a strike is also known as 'pen down' or 'tool down' strike. Sick-out (or sick-in): In this strike. They do not stop work. which makes it very difficult for employer to defy the union and take the workers' places. If picketing does not involve any violence. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. 19. workers do not absent themselves from their place of work when they are on strike. In June 1998. They adopt go-slow tactics to put pressure on the employers.

to more institutionalized forms such as the presence of workers’ member on management or supervisory boards or even management by workers themselves 27. voluntary quit. refusal or inability of an employer on account of shortage of coal. or (d) termination of the service of a workman on the ground of continued ill-health. Workers’ participation: ILO: Workers’ participation. decisions and negotiations. may broadly be taken to cover all terms of association of workers and their representatives with the decision-making process. Employee Turnover The ratio of the number of workers that had left in a given time period to the average number of workers. consultations. or discharge. retirement. Retrenchment means the termination by the employer of the service of a workman for any reason whatsoever. Lay-off means the failure. Attrition Attrition refers to reduction in staff that are vacated through resignation. Separation Any termination of employment. What is Factory? Where on 20 or more workers are working or were working on any day of the preceding 12months and in any part of which a manufacturing process is being carried on without the aid of power or in ordinarily so carried on 33. 29. 32. 30. 28. transfer. otherwise than as a punishment inflicted by way of disciplinary action. 31. or (c) termination of the service of the workman as a result of the non-removal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein. Adult A person who has completed his 18 years of age . or means other than layoffs. but does not include (a) voluntary retirement of the workman. ranging from exchange of information. reassignment. It is generally classifiable as a layoff. or (b) retirement of the workman on reaching the age of superannuating if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf. power or raw materials or the accumulation of stocks or the breakdown of machinery or natural calamity or for any other connected reason to give employment to a workman whose name is borne on the muster-rolls of his industrial establishment and who has not been retrenched.26.

34. Appeal: Application to a higher Court for a review of a decided case 41. Employer Association: An organisation whose membership generally consists of employers who operate in the same or related industries and tend to act as coordinator of some industrial interest of the member companies. decides upon the basis of agreement. Employee: A person whose employment is governed by a contract of service or other relevant employment law. As such. Employer: A person. 46. administrative rulings. employers and employees 40. Registration with the Commission is mandatory for an organisation to be included under this heading. or a person defined as or deemed to be an employee under the Industrial Relations Act 1999 44. seeks to bring the disputants to the point where they can reach agreement. The conciliator acts as an "honest broker" in the negotiations. usually an independent. 38. and precedents which address the legal rights of. The decision is then binding on the parties 42. Child A person who has not completed his 15th year of age 36. Jurisdiction: The power of the Court or Commission to hear a matter . agreements produced through formal conciliation lead to changes in award provisions. Calendar year It means the period of 12 months beginning with the 1st day of January in any year. it mediates many aspects of the relationship between trade unions.g. corporation. enterprise or organisation that employs or engages a person or persons including those persons who are defined as an employer under the Industrial Relations Act 1999 45. Queensland Industrial Relations Commission) considers a dispute between two or more parties. 35. working people and their organizations. Young person A person who is either a child or an adolescent 39. and restrictions on. Conciliation: A dispute settling method in which a third party. If the conciliator is unsuccessful in settling some or all of the issues that are in dispute. In Australia. Labour Laws Labour law also known as labor law is the set of laws. Arbitration: A system of dispute settlement in which an independent third party (e. 43. these items can be referred to arbitration. and having taken submissions. Competent person A person or an institution recognized as such by the chief inspectors 37. Adolescent A person who has completed his 15th year of age but has not completed his 18th year.

training. Employee retentionOrganizational policies and practices designed to meet the diverse needs of employees. 55. The piece rate is typically the product of (a) an attempt to measure the normal or expected output for a period of time for an employee working normally. the employee and spouse are normally required to take the leave at different times 49. benefit or training related functions or services to the external provider. resignation or frustration of contract. UnionCommon name for an employee organisation. LegislationLaw emanating from Parliament in the form of Acts. 54. 53. 50. 48. 57. 56. Termination: The act of ending the employee/employer contract by either the giving of notice. Group of employees in similar occupations or industries who join together to bargain with their employers regarding working conditions. Piece Rate: The rate per unit or output that is fixed from time to time in a payment by results system. and job-finding assistance. Parental Leave: Parental leave is an entitlement that MAY be shared between the parents of the child. instant dismissal. and employee retirements that result in a reduction to the employer's physical workforce. 52. Except for one week after birth. AttritionA term used to describe voluntary and involuntary terminations. OutsourcingA contractual agreement between an employer and an external third party provider whereby the employer transfers responsibility and management for certain HR. deaths.47. and create an environment that encourages employees to remain employed. Occupier: The person who has ultimate control over the affairs of the factory . SuspensionA form of disciplinary action resulting in an employee being sent home without pay for a specified period of time. and (b) negotiation with employees concerning a 'fair' rate of pay per unit produced. OutplacementA benefit offered by the employer to displaced employees which may consist of such services as job counseling. 51.

60. Total disablement: Disablement whether of a temporary or permanent nature. appropriate government means the state government 67. . the central government.58. Disablement: Disablement means loss of capacity to work or to move. In all other cases. Permanent partial disablement: Disablement reduces the earning capacity of a workman in every employment which he was capable of undertaking at the time of injury.Such councils have not enjoyed too much of success union leaders fear the erosion of their power and prestige if because trade such workers’ bodies were to prevail. Partial disablement: Any disablement as reduce the earning capacity of a workman as a result of some accident. The employees of the respective sections elect the members of the councils. as incapacitates a workman for all work which he was capable of performing at the time of the accident resulting in such disablement. 69. Temporary partial disablement: As reduce the earning capacity of a workman in any employment in which he was engaged at the time of accident. 63. Accounting year: In relation to a corporation the year ending on the day on which the books and accounts of the corporation are to be closed and balanced. 59. 65. Employment injury: Personal injury to an employee cause by accident or an occupational disease arising out of and in the course of his employment being an insurable employment whether the accident occurs or the occupational disease in contracted within or outside the territorial limits of India. mines or oilfield. 66. There may be one council for the entire organization or a hierarchy of councils. Appellate authority: It means an authority appointed by the appropriate government by notification in the official gazette to exercise the functions of an appellate authority under the act. Appropriate Government: It means in respect of industrial establishments under the control of the central government or a railway administration or in a major poart. Staff and Works Councils: 1. Their role ranges from seeking information on the management’s intentions to a full share in decision-making. 2. Such councils play a varied role. 68. Disablement of a workman may result in loss or reduction of his earning capacity. 64. Staff councils or works¬ councils are bodies on which the representation is entirely of the employees. Certifying officer: Certifying officer means a labour commissioner or a regional labour commissioner and includes any other officer appointed by the appropriate government by notification in the official gazette to perform all or any of the functions of a certifying officer under the act. 62. Superannuation: In relation to an employee who is the member of the pension scheme means the attainment by the said employee of the age of 58 years. 61.

70. . as in an employment. typically a monetary payment for services rendered. Work committees: Work committees are a legal requirement in industrial establishments employing 100 or more workers. received by a worker in exchange for their labor. Gratuity: Gratuity is a lump sum payment made by the employer as a mark of recognition of the service rendered by the employee when he retires or leaves service. Usage of the word is considered formal 79. safety committee. Gratuity is paid to employee out of Gratitude by employer if an employee complete 5 years of continuous service with the organisation.. rather than on a periodic basis. 72. as these councils are mostly consultative bodies. etc. 77. Joint Councils: Joint councils are bodies comprisin representatives of employers and employees. Salary: A salary is a form of periodic payment from an employer to an employee.Cost of living index: Cost of living is the cost of maintaining a certain standard of living.Gratuity will be calculated as Basic + DA *15*No of years of service / 26 73. . usually financial. 78. Absenteeism: Absenteeism means an individual remain absent without any information or intimation to his superior. Remuneration: Remuneration is pay or salary. Wage:A wage is a compensation. o Such committees have not proven to be too effective in promoting industrial democracy. the provisions of a sufficient number of spittoons in convenient places is obligatory. 75. "his approval was an added fillip" an additional payment (or other remuneration) to employees as a means of increasing output 80. which may be specified in an employment contract. Closure: A process by which the organisation ceases the operation. increasing productivity and reducing labour unrest. 71. Bonus: anything that tends to arouse. Such committees discuss a wide range of topics connected to labour welfare. o Examples of such committees are welfare committee. Such spittoons are required to be maintained in a clean and hygienic condition. hour or other unit is paid separately. Changes in the cost of living over time are often operationalized in a cost of living index. 76. It is contrasted with piece wages. This method sees a very loose form of participation..Spittoons: a receptacle for spit (usually in a public place) In every factory. 74. where each job.