A contemporary Industrial Relations in India

Assignment -1

Submitted by,

NAME : LOGESH WARAN.S

REG. NO : 1820108
CLASS : II MBA
INDUSTRIAL RELATIONS AND
COURSE :
LABOUR LAWS
DATE : 31.07.2019

Criteria Marks

Organization (4)

Level of Content (4)

Grammar & Mechanics (4)

Style (4)

Format (4)

Total (20 Marks)

 HRD Practices in Industries
(Google Inc., Microsoft, Apple Inc.,
Indian Oil Corporation, Essar Oil Limited)

Assignment -1

Submitted by,

NAME : LOGESH WARAN.S

REG. NO : 1820108
CLASS : II MBA
COURSE : TRAINING AND DEVELOPMENT
DATE : 31.07.2019

Criteria Marks

Organization (4)

Level of Content (4)

Grammar & Mechanics (4)

Style (4)

Format (4)

Total (20 Marks)

A contemporary Industrial Relations in India
Definition of Industrial Relations
As per Dale Yoder Industrial Relations refers to the relationship between
management and employees, or employees and their organization that arise out
of employment.
Teed and Metcalfe observed Industrial Relations are the composite
approach of the attitudes and approaches of the employers and employees towards
each other with regard to planning, Supervision, direction and unification of the
activities of a set up with less friction and more co-operation with mutual effort
for others well-being.

Industrial Relations in India:

Prior to 1991, the industrial relations system in India sought to control
conflicts and disputes through excessive labor legislations. 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, layoffs and retrenchment
policies, industrial disputes and the like. The basic purpose of these laws was to
protect labors. However, these protectionist policies created an atmosphere that
led to increased inefficiency in firms, over employment and inability to introduce
efficacy.
With the coming of globalization, 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 manufacturers because they had to compete
in the international market. With the advent of liberalization in1992.
Industrial Relation Policy in India:
The industrial relations policy began to change. Now, the policy was tilted
towards employers. Employers opted for workforce reduction, introduced
policies of voluntary retirement schemes and flexibility in workplace also
increased. Thus, globalization brought major changes in policy in India.
The changes can be summarized as follows:
 Collective bargaining in India has mostly been decentralized, but now in
sectors where it was not so, are also facing pressures to follow
decentralization.
 Some industries are cutting employment to a significant extent to cope
with the domestic and foreign competition e.g. pharmaceuticals. On the
other hand, in other industries where the demand for employment is
increasing are experiencing employment growths.
 In the expansionary economy there is a clear shortage of managers and
skilled labor.
 The number of local and enterprise level unions has increased and there
is a significant reduction in the influence of the unions.
 Under pressure some unions and federations are putting up a united front
e.g. banking.
 Another trend is that the employers have started to push for internal
unions i.e. no outside affiliation.
 HR policies and forms of work are emerging that include, especially in
multi-national companies, multi-skills, variable compensation, job
rotation etc. These new policies are difficult to implement in place of old
practices as the institutional set up still needs to be changed.
 HRM is seen as a key component of business strategy.
 INDUSTRIAL RELATIONS AND ITS POSITION IN INDIA
Simply the relationship between employer and employee is called
Industrial Relation. But it also covers the relation between employer vs. employer
and employees vs. employees. To safeguard the interests of the all the parties,
harmonious relationship is necessary for both employers and employees of the
production. In order to maintain good relationship with the employees, the main
functions of every organization should avoid any dispute with them or settle it as
early as possible, so as to ensure industrial peace and harmony with higher
productivity. The Industrial Relation relations also called as labor -
management, employee-employers relation.
a. Industrial Relation is deals with the manpower of the enterprise and the
management which is concerned with – whether machine operator, skilled
worker or manager.
b. Industrial Relation is a relation between employer and employees, employees
and employers and employees and trade unions. and the “process by which
people and their organizations interact at the place of work to establish the
terms and conditions of employment.” - Industrial dispute Act 1947

In fact, Industrial Relation encompasses all such factors that influence

behavior of people at work. A few such important factors are details below:
1. Process / Methods: The collective bargaining between both the employer and
employee. The participation of workers’ in the Industrial Relation schemes in
necessary. Others are disciplinary procedure, grievance readdress machinery,
dispute settlements, union reorganization, revisions of existing rules,
regulations, policies, procedures, hearing of labor courts, tribunals etc.

2. Contents: There may be two parts includes the matter pertaining to

employment conditions like pay, hours of works, leave with wages, health, and
safety, disciplinary actions, lay-off, dismissals retirements etc., and other part
are laws relating to such activities, regulations welfare, social security,
industrial relations, etc.

3. Institution / Establishment: The direct or indirect impact on the industrial

relations systems is it includes government, employers, trade unions, union’s
 federations or associations, government bodies, labor courts, tribunals and
other organizations.

Determinants of Industrial Relations:

 Measures for securing and preserving unity and better relations between
workers and employers
 Arrange to probe and settle industrial dispute between employer employee or
employer and employer or employee and employee, give proper representation
to workers union and industrial federations of employers.
 Both the ultimate weapons of employers and employee – strike and lock out
should be prevented at any cost. Proper relief to workers after a ‘lock out’ or
‘lay off’ through government agencies
 Workers participation at all levels and encourage give and take principle in
collective Bargaining.

Industrial relation requires a study regarding

 conditions of work
 Compensation paid for the sweat the worker makes
 Permanency of the job assured continuance of work or otherwise.

The parties to Industrial Relations are Workers and their unions, the
intelligence level knowledge of workers, background of worker leaders, real or
bogus their linkage with political unions, are to be considered for the effective
relations.

Nature of employment and employers, whether benevolent, interested in

workers or aiming to get as much profit as possible squeezing workers their
attitude plays vital role in maintaining better relations. Whether they want to
have team and growth of their team as a whole or just hire and fire system.
 SOME IMPORTANT TERMS USED IN INDUSTRIAL RELATIONS

 Arbitrator
A private, neutral person chosen to arbitrate a disagreement, as opposed
to a court of law. An arbitrator could be used to settle any non-criminal dispute,
and many business contracts make provisions for an arbitrator in the event of
a disagreement. Generally, resolving a disagreement through an arbitrator is
substantially less expensive than resolving it through a court of law.
 Average pay
Taken literally, the average salary of a particular position is the
mathematical "mean" of the salaries of all people employed in that position.
This number is calculated by adding up all the salaries of people working in
the position and then dividing that sum by the number of people working in
the position. The number received is the "average" salary. Most organizations
that track career salaries, such as Pay scale, calculate this number through a
sampling of people
 Award
An interim or a final determination of any industrial distribute or of any
question relating thereto by any labour (court), industrial Tribunal or national
Tribunal and includes an arbitration award
 Conciliation officer
Means conciliation officer appointed under (1) Act to make conciliatory
effort between employer and employees to bring amity.
 Labour Court
A court in some countries that deals with cases or disagreements involving
employers and employees.
 Public utility Service –
Anorganization which provides a basic service to the public, such as water,
energy, transportation, or telecommunications. Firms providing these services
are sometimes given monopoly status by the government, when doing so is
perceived to be in the best interest of the consumers.
 Settlement
Means a settlement arranged or in the course of conciliation proceedings
andinclude a written agreement between the employer and workmen arrived at
 otherwise than in the course of conciliation proceeding where such agreement
has been signed by the parties there to in such manner as may be prescribed
and a copy there of has been sent to an officer authorized in this behalf by the
appropriate government and the conciliation officer It means an adjustment
arrived at in the course of conciliation proceeding before a conciliation officer
or before Board of conciliation.
It also includes a written agreement between the employer and the
workmen otherwise than in the conciliation proceedings. In such a case the
agreement must be signed by the parties in the prescribed manner and a copy
of which must be sent to an officer authorized in this behalf by the appropriate
government and the conciliation officer. Thus the settlement indicates the
agreement arrived at either in the conciliation proceedings or otherwise
between employer and the workmen.
 Wages
All remuneration capable of being expressed in terms of money which
would if the terms of employment expressed or implied, were fulfilled, be
payable to a workman in respect of his employment or of work done in such
employment – includes
1. Allowances
2. House revert allowance
3. Traveling concession
4. Commission for sale or business does not include bonus, gratuity provident
fund etc.
 Workman
Any person employed in an industry to do any manual and unskilled,
skilled, technical, operational Clerical or supervisory work for hire or reward
whether the terms of employment be express or implied, and for the purpose of
any proceeding under 1.D Act in relation to q 1.D includes any such person who
has been dismissed discharged or retrenchment in connection with or as a
consequence of that dispute or whose dismissal discharge or retrenchment has
led that dispute, but does not include – Navy, police, managerial, administrative
position holders or working with wages exceeding one thousand six hundred
rupees per month
 SUGGESTIONS FOR THE IMPROVEMENT OF INDUSTRIAL RELATIONS
AND REDUCE DISPUTES

The suggestions to improve Industrial relations are the essence of good

industrial relation lies in the bringing up of good labour relations which gives a
forum to understand each other (employer, employee) properly. Creates co-
operative thinking and working to achieve the goal of the organization.

A good Industrial Relations increases the morale of employers and goods

them to give their maximum, each think of their mutual interest which paves way
for introduction of new methods, developments and leading to adoption of
modern technology. This progressive ways when designed with their mutual
interest and consent develops many incentive propositions, effective participators
forum is created in management. Profit are shared, workers get their dues in the
organization leading to job satisfaction-which is needed for good relations. Good
industrial relation increase production, improves quality of work and products
efficiency of workers increased. Cost of production lowered.
A Bad Industrial Relations leads to industrial unrest industrial dispute
and downward trend to industries workers and the nation. Of course the first hit
will be on the employer, who has invested. Industrial worker and the employers
normally don’t think, feel or act in precisely the same way and because each starts
from a different point conflict of some fort can mover be eliminated completely.

The main reasons for industrial discard, can be due to

1. Misunderstanding or differences in perception
2. Lack of co operation real or imagined
3. Problems with authority
4. Future to comply with policies or stick to plans.
5. His Agreements over ways to achieve agreed goals.
6. Conflict can have some positive aspects also, they may give positive results
like
7. Reveal new aspect of an existing issue
8. Improve long term communication between the individuals concerned
9. Always previously stifled emotions to be released
 FUTURE OF INDUSTRIAL RELATIONS IN INDIA
The future of industrial relation in India can be reviewed from reports of the
commissions constituted by the government for this purpose. From these certain
issues are emerging which are posing challenges to the three actors in the system.
1. The first is the issue of strengthening collective bargaining by trying to
determine a sole bargaining agent for negotiations. The state of Maharashtra
has already passed a law for the creation of asole bargaining agency in every
unit and industry. Collective bargaining is advocated where the parties
involves have a fuller understanding. This will help to arrive at a speedier
settlement of dispute, between them.

2. The second issue relates to the gaps that are occurring as a result of the various
that occur in central and state legislations as far as labour matters are
concerned. In India, labour fall under the concerned. In India, labour fall under
the concurrent list though NCL has made a recommendation for forming a
common labour code which is yet to be adopted. Adoption of this
recommendation will go a long way in solving some of the problems that indias
legislation process is facing.

3. Another issue is that of workers participation in management. India has already

experienced the working of many forms of workers-participation schemes but
none of them seems to have made any headway. The reasons for the failure of
these schemes need to be probed into.

The three actors in the system need to take into account the effect of their
actions on the consumer s and society in general, owing to the growing inter-
linkages between industry and its environment. They have to evaluate and decide
on the appropriate alternatives in terms of the strategy they are going to adopt in
managing the personnel and industrial relations functions. The environment is
fast changing and the pressure from various groups involves are starting to get
more vocal and intense. The strategy chosen for the attainment of the goals will
have to depend on the objectives, values structures available and the environment
in which they have to operate.
Features of Industrial Relations
Dominance of Tripartitism:
Ever since labour was put on the concurrent list in the Indian Constitution
and formed a part of the Directive Principles of the State Policy, ever since the
enactment of regulatory labour laws to give effect to the protective labour policy
of the government and ever since the politicization of trade.
Late Emergence and Development of Collective Bargaining Relationships:
Industrial relations primarily bipartite. It is left to labour and management
to develop their relationships the way they desire. This bipartite relationship is
determined, shaped and given a direction through collective bargaining.
Fragmented and Politicized Trade Union Movements:
A trade union is a voluntary organize ion of workers seeking to protect and
promote the interests of its members vis-a-vis that of the employers. Hence, a
trade union is a political organization.
Dilatory and Ineffective Methods of Disputes Settlement:
When the negotiations fail and no agreement on some or all the issues is
reached the negotiating parties have two options, viz. to resort to a work stoppage
to pressurize the other party to accept the offers or the demands made or to seek
the assistance of a third party to help them to resolve negotiations and settle the
issues.
Labour-Management Cooperation:
Though conflict has been the most dominant form of industrial relations,
cooperation between the two is most desirable if both the parties have to realize
their objectives in industrial relations and help the society develop economically
and socially