IRLL

INDUSTRIAL RELATIONS AND LABOUR LAWS

Prof Anubhuti Saxena, SOM, Bennett University

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CONTENT :

´ 1. INTRODUCTION TO LABOUR LAWS

´ 2. HOW ACTS ARE FORMED

´ 3. INTRODUCTION TO INDUSTRIAL RELATIONS

Ø PARTIES TO IR- THEIR ROLES

Ø OBJECTIVES OF IR

Prof Anubhuti Saxena, SOM, Bennett University

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INTRODUCTION TO LABOUR LAWS

Prof Anubhuti Saxena, SOM, Bennett University

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LABOUR LAWS

´Indian labour law refers to laws regulating labour in India

Prof Anubhuti Saxena, SOM, Bennett University

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CODE ON SOCIAL
SECURITY
CODE ON WAGES

CODE ON
CODE ON
OCCUPATIONAL
INDUSTRIAL
SAFETY, HEALTH AND
RELATIONS
WORKING
CONDIITIONS

Prof Anubhuti Saxena, SOM, Bennett University

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Prof Anubhuti Saxena, SOM, Bennett University

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Prof Anubhuti Saxena, SOM, Bennett University

 WHAT IS AN ACT

HOW IS AN ACT FORMED?

Prof Anubhuti Saxena, SOM, Bennett University

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Prof Anubhuti Saxena, SOM, Bennett University

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Prof Anubhuti Saxena, SOM, Bennett University

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INDUSTRIAL RELATIONS
INTRODUCTION

Prof Anubhuti Saxena, SOM, Bennett University

12 ´ “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.”

´ In the year 1920, John R. Commons introduced the concept of industrial relations, which
emphasized the impact of labour relations with the employer on the productivity of the
organization.

Prof Anubhuti Saxena, SOM, Bennett University

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Prof Anubhuti Saxena, SOM, Bennett University

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´ J. T. Dunlop defined industrial relations as “the complex interrelations among
managers, workers and agencies of the governments”.

´ According to Dale Yoder “industrial 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”.

´ Industrial relation aims at building a strong relation between the employees

and the employer as well as among the employees themselves. A strong
industrial relation ensures protection of employee’s interest and successful
attainment of organisational objectives in smooth and efficient manner.

Prof Anubhuti Saxena, SOM, Bennett University

15 CASE OF MARUTI SUZUKI , 2012

Prof Anubhuti Saxena, SOM, Bennett University

 § On 18th July 2012 at Maruti's labour plant,
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industrial disputes broke out when workers
became aggressive and over 96 staff members
were injured while also leading to the death of a
human resource manager.

§ Workers, both permanent and contracted felt

that they were not being given their due share of
the huge profits Maruti Udyog was making with
the highest market share in the car industry.

§ More then two-thirds of the employees were

involved in the strike, causing Maruti to lose about
INR 75 crores ($11.81 million) in revenue and INR
8 crores ($1.3 million) in operating profit daily
while also halting Maruti's production line causing it
to lose around 1200-1400 units daily.

Prof Anubhuti Saxena, SOM, Bennett University

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´ On 18 July 2012, Maruti’s Manesar plant was hit by violence as workers at one of its
auto factories attacked supervisors, engineers and other management personnel
and burnt and killed a senior HR executive, injured 100 managers, including two
Japanese expatriates. The mob also injured nine policemen.

´ The 14-day-long strike at Maruti Suzuki India's Manesar plant has been called off,
following a tripartite agreement between the management, workers and the
Haryana Government.

´ As part of the agreement, the management agreed to take back 64 permanent

workers, another 30 will remain suspended. It has also been agreed that around
1,200 casual workers would also be reinstated.

´ Setting up of two committees for grievance redressal and labour welfare was
also agreed in order to provide a harmonious working environment at the plan
Prof Anubhuti Saxena, SOM, Bennett University
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Prof Anubhuti Saxena, SOM, Bennett University

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EMPLOYEES
COURTS
AND
EMPLOYER
TRIBUNALS

INDUSTRIAL
RELATIONS

EMPLOYERS
GOVERNMENT ASSOCIATION

TRADE
UNIONS

Prof Anubhuti Saxena, SOM, Bennett University

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Workers and their Associations:

´ Workers play a crucial role in industrial relation.

´ Workers form into their associations called “Trade Unions” to get their
problems solved.

´ The trade unions work for workers’ economic interests through collective
bargaining by bringing the pressure on the management through
economic and political strategies.

Prof Anubhuti Saxena, SOM, Bennett University

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Employer and their Associations:

´ Employer plays an important role in industrial relations.

´ They have the right to hire and fire them , also regulate the working relations through
various rules, regulations, and laws. At the same time expect the workers to follow them
. Management can also affect workers’ interests by exercising their right to relocate,
close or merge the factory or to introduce technological changes.

´ They form into associations to equate their bargaining power with the trade union, and
these associations protect the employer by putting pressure on government and trade
unions. Ex: All India Organization of Employers(AIOE), Employers Federation of India (EFI)

Prof Anubhuti Saxena, SOM, Bennett University

22 Government:

´ Government plays a balancing role in industrial relations. The

government has its influence on industrial relations through industrial
relations policy, Labour policy, Labour law implementation, Acting
as a mediator in the process of conciliation and adjudication. The
government regulates the behaviour of both the employer
association and workers organizations.

Prof Anubhuti Saxena, SOM, Bennett University

 Increased
Productivity
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Safeguard the
rights and
interests

Industrial
democracy
Objectives of
Industrial Relations Mutually beneficial
labour management
relations

Improvement in
working conditions

Prof Anubhuti Saxena, SOM, Bennett University Collective

Bargaining