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PART A (PM) Answer 1.

(a) In discussing the objectives of Personnel Administration, one must emphasize that successful personnel work in this part of the world can no longer pursue the objectives of only one side of the work situation that is to say, the objectives of management alone. In the Middle East of today, personnel administration that attempts, to further only the objectives of Management is rejected by the working public as an anachronism stemming from an outmoded mentality. On the other hand, personnel administration that attempts, to further only the objectives of Management is rejected by the working public as an anachronism stemming from an outmoded mentality. On the other hand, personnel administration that attempts to present the image of an altruistic. Big-Brother to Labour, interested solely in employee social service, is just as promptly rejected by the no longer native working public as hypocritical and untrustworthy. With this dual obligation towards management and towards employees in mind, we list below three main objects of personnel administration. Conserving the Companys Human Assets : Modern Personnel administration should keep management informed in a continuous basis, of all personnel tangible and intangible that indicates either positive accomplishments or warning signals in the companys personnel practices. Tangible indicators are figures on absenteeism, manpower turnover, and company productivity. Intangible indicators are employees attitudes a morale. The tangible indicators with skilled analysis predict the future. The prevention of labour unrest and the consequent conservation of the companys human assets will depend to great extent upon the personnel administrators ability to observe, analysis and convey to management such tangible and intangible indications of the state of the companys personnel body. It is also the responsibility of the personnel administrator to guide company policies in accordance with his analysis of personnel trends. 2. Making certain that the line supervisors recognized and carries out his personal responsibilities : The efficient utilization of a companys human assets must be the objectives of the entire line supervision throughout the company. Personnel administration supplies tools such as policy control, advice and record keeping, but the basic personnel responsibility lies with the supervisors. The personnel administrators objective in this connection is to ensure that the line supervisor is aware of the personnel responsibilities and carries them out. He must demonstrate to supervisors that solutions to technical problems will not be effectively unless they are arrived at with due consideration for the human problems involved. However, he must also make sure that supervisors do not fall into the error of making employees happy at the expense of the companys objectives. Supervisors should be made fully aware of the fact that loose supervisory practices will jeopardize the continued existence, of the company on which both they and their subordinates depend for a livelihood. In accomplishing his objective, therefore, the personnel administrator must aim at maintaining a balance between employee satisfaction and employee efficiency. Offering Specialized Personnel Services : The personnel administrator counsel assists the line supervisions in its personnel responsibilities but he does not administer any company policies directly outside his own department. Although the personnel department may maintain attendance records and

countersign termination actions, this does not mean that it is controlling absenteeism by terminating offending employees. The personnel department may be requested by the supervisor to investigate the causes behind a divisons absenteeism, or perform research into proposed personnel procedures, or handle negotiations with a government agency. Such specialized services, however, must all have as their objective the provision of counsel and assistance to the line supervisor without relieving him of his direct personnel responsibility. Duties of Personnel Staff Personnel problems are the responsibility of every employee who supervises another. The function of auxiliary personnel tasks and routine personnel administration may be located in a staff department, but the fundamental responsibility for employees rests with the line supervision. Under such an arrangements the duties of the personnel staff will be as follows. Advice : The personnel department counsels and advises supervisors on employee problems on which the supervisors have requested assistance, but the supervisors actually handle the problems. Policy : Although it initiates proposals and defines principles, the personnel department does not determine personal department does not determine personal policy. It does the necessary research and prepares new versions of policy measure for executive management approval. Services : Employment and placement programmes, employee compensation programmes training programmes, labour relation and employee record maintenance are examples of service concentrated in Personnel Administration. Control : This is not direction or supervision. The control function of personnel administration is akin to the auditing function of the accounting department determines whether personnel policies and procedures are being administered uniformly by supervisors through the company, but if consistency are found to the personnel department does not take action beyond bringing them to the attention of those supervisors concerned. The most drastic recourse available to the personnel administrator is to notify top management of the delinquency. Less than two industrial generations in the Middle East have brought about enormous changes in the type of men who form the personnel administration group.

Answer 1. (b)

As a final point in our discussions of the organizations of the personnel function, we should mention the availability of assistance outside the organization. There are many instances where a personnel department has established a division to perform a function which is necessary only periodically for example; the need arises occasionally to perfom, research into problems of Manpower Management. In most companies of moderate size or smaller, such needs arise only periodically occasionally nevertheless; when the need does arise it is essential that it may be met by Competent Personnel. When constructing a pattern of organization the personnel administrator should evaluate the frequency of such needs and if the frequency is slow he should decide that when the need arises, he will seek assistance from outside sources. It is uneconomical under any circumstances to maintain a permanent organization composed of competent employees who are called upon to use their competence only infrequently. Simply as an illustration, we set forth a pattern of organization reflecting a personnel department including those major functions assigned to his group. We hasten to emphasize that this is simply one approach to a structure of organization and is presented to provide framework for subsequent discussions of those specific functions included within such an organization. In the final analysis, the structure of the personnel department should be designed to meet the unique needs of the organization, which it serves. This is every instance must be the over riding consideration in the creation of such a structure. Any attempt to impose a classical personnel organization, which fails to recognize the basic objectives of the company will in all likelihood, be ineffectual. Irrespective of the manner in which the personnel administration organization is constructed, its activities extend throughout all parts of the enterprise and affect every member of the work force. This principle is best illustrated by brief descriptions of the typical functions performed by the personnel administrator. Among the more prominent of these functions are the following:


The preparation and recommendations of written policies relating to manpower management which embody sound principles of employee relations designed to achieve the overall objectives of the organization. The constant evaluation and follow up of personnel policies and practices to assure that such practices conform to the basic intent of the policy. Included within these evaluations would be an assessment of the level of job satisfaction existing within the work force as well as other elements closely associate with effective employee relations, such as the volume of grievances and labour turnover. The development and maintenance of programmes of training and employee development which are designed to provide facilities for each individual to achieve the maximum level of self-development. The development of communication techniques which will assure the effective flow of information between management and the work force as well as within management. The development of devices by which each employee may be appraised and an instrument by which management may assess the degree to which all well of its human resource are being utilized. The provision of counsel to management which will further the establishment and maintenance of sound relationships within the organization as well as with public and other groups whose activities affect the organization.



4) 5)


Answer 2. (a) Career Planning: Career planning is the process of synthesizing and harmonizing the needs of the organization with innate aspiration of the employees, so that while the employees realize self fulfillment, the organizational effectiveness is improved. In other words career planning means helping the employees to plan their career in terms of their capacities within the context of organizational needs. Career planning is not same as Manpower planning or Succession planning. The basic difference is shown in following table:

Manpower Planning 1. It is the inventory & potentials locating available in the organization higher echelons.

Career Planning

Succession Planning

1. Who on the basis of 1. It is the identification of vacancies performance, experience, could and locating the probable successes. be placed at where, when and how is the career planning.

2. It provides data on human 2. It provides picture of 2. It provides succession chart in respect resource a available succession plan for employees of a particular position. manpower need. as per organizational needs.

Needs of Career Plan: 1) 2) It is always wise to have planned programmes for internal HRD, then outside recruitment, when need seems to arise suddenly due to any reason or retirement. For effective man-management, organizational growth and optimum productivity, employees growing work expectation and aspirations are essentially required to meet by a proper planning. To attract competent persons in the organization. For reducing employees turnover for lack of promotional avenues. For maintaining and improving motivation and morale of employees. Purposes and Objectives of Career Planning: 1) 2) 3) 4) Attraction and retention of right persons in the organization. Mapping of careers of employees in the organization suitable to their ability and skill, and their willingness to be trained and developed for higher positions. Better use of human resources, more satisfied and productive employees, and more fulfilling careers. Reducing employees turnover and absenteeism, and thus having a more stable and satisfied workforce.

3) 4) 5)

Increasing utilization of managerial reserves available at all levels within the organization. Improvement of morale and motivation of employees. Advantages of Career Planning to the Management: 1) 2) A person comes to know in advance the level to which he can rise if he has the ability and aptitude for it. The new entrant understands that he entered into career with an organization that cares him, his talents and his aspirations. Advantages of Career Planning to the Management: Increased loyalty of the employee toward organization. Improved morale of employees. Stable workforce and low employee turnover. A more homogenous workforce. Improved market image of company and effective achievement of company objectives. Limitations of Career Planning: 1) 2) Career planning is not an effective management technique for a large number of men (mainly who work on shop floor) for which labour supply is abundant. Career planning becomes ineffective if it is attempted for a period exceeding a decade because of many factors affecting the growth of industrial enterprises in a developing country. Political intervention, favoritism and nepotism in promotion and reservation of seats for back work classes and scheduled caste may make it difficult to have systematic career planning. There exists a practical problem of maintaining a balance between the promotes and recruits. Points to Minimize the Limitations in Career Planning: 1) 2) 3) 4) 5) Business enterprise should be expanding. Organization must have clear corporate goals for long-term. Employees of the organization should be interested, goal-directed, motivated and hard working. Selection of right man for the right job is an essential prerequisite for career planning. Maintenance of proper age balance in career is necessary to avoid rapid promotion blocks caused by an age structure, which is over balanced either on the side of age or that of the youth. There should be a fair promotion policy supported by systematic training for those who are trainable, and willing and eager to learn a higher skill.

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Answer 2. (b) Training for Different Employees: Employees at different levels require different types of training: I. Unskilled Workers: They require training in improved methods of handling machines and materials to reduce the cost of production and waste and to do the job in the most economical way. Such employees are given training on the job itself, and their immediate superior officers, sardars or foreman imparts the training. The training period ranges from 3 weeks to 6 weeks. II. Semi-Skilled Workers: They require training to cope with the requirements of an industry arising out of the adoption of mechanization, rationalization and technical process. These employees are given training either in their own sections of department, or in segregated training shops where machines and other facilities are usually available. The more proficient workers, bosses or inspectors and lasts usually impose the training for a few hours or a week, depending upon the number of operations and the speed and accuracy required on a job. Training methods include instruction in several semi-skilled operations because training in one operation only creates difficulties in adjustment to new conditions, lends the colour of specialization to a job and makes work somewhat monotonous for an individual. III. Skilled Workers: They are given training through a system of apprentice shop, which varies in duration from a year to 3-5 years. Such training is also called tradesman or craftsman training and is useful for highly specialized skills. Though mass production in industry has considerably reduced the number of skilled employer yet the level of skill required has been raised highly. An apprentice programme usually takes into consideration individual difference in abilities and capacities. IV. Other Employees: These include the typists, stenographers, account clerks, computer personnel who are usually given training outside the industry. Sales Personnel are given training to let them understand the nature and quality of products and routine involved in putting through a deal. They are trained in the art of salesmanship and in customer handling. Supervisory Staff need training the most as they form an important link in the chain of administration. These training programmes are tailor-made to put the needs of the undertaking. These programmes aim at: 1. 2. 3. 4. Helping present supervisors improve their performance. Helping them to prepare for greater responsibilities of higher management. Building up their security and status. Ensuring their technical competence.

This level is usually given training in the following aspects: Organization and control of production in maintenance and material handling. Planning, association and control of work. Impact of methods study, time study, job evaluation and supervisors responsibilities. Company policies and practices. Personal Procedure, policies and programmes. Training of subordinates, grievance handling, disciplinary procedure. Communication, effective instruction, report writing. Appraisal of employers and rating. Evaluating effects of industrial legislation and welfare regulations. Leadership qualities. Principles of administration, safety, health and welfare regulations. In India such training is provided by the National Productivity Council, New Delhi and the Central Labour Institute at Delhi and Mumbai.

Answer 4. (a) A Trade Union is an association of workers in any trade or allied traders for the protection and enhancing their interests in regard to wages, hours and conditions of labour and/or the provision, from their common funds, of assistance to members during strikes, sickness, unemployment, old age etc. Trade Unions are Voluntary organizations of workers formed to promote and protect their interests by collective action. Thus the conclusion drawn from these different definitions is that: 1) 2) 3) Trade Union is economically oriented i.e. associated with wage-earners. It is a voluntary association and a permanent body, and instrument of defense against exploitation. It is a collective bargaining agent, an outcome of industrialization. Principle of Trade Unionism: There are mainly three basic principles on the basis of which Trade Unions function. These are: 1) 2) 3) Unity is strength. Equal pay for equal work for the same job. Security of service. It is generally observed that the workers join or become members of trade union because of the constrained circumstances, which raises doubts in their minds about certain aspects like: 1) 2) 3) 4) 5) 6) Economic security i.e. steady employment with an adequate income. Whether they can restrain the management from taking actions which are irrational, discriminant or prejudicial to the interest of labour. Communicating their views, ideas, feelings and other aims to the management i.e. possible or not. For securing protection from economic hazards which are beyond their control, for example, illness, accidents, old age, unemployment etc. To get along with their fellow workers in a better way and to gain respect. To get a good job. Role of Trade Union:

The Trade Unions are organized by the workers to solve the labour problems created by or due to industrialization. Various agencies in the field of labour are working to tackle these problems. They use the methods of labour legislation and labour administration. The employers try to solve/deal with labour problems through the personnel management and labour welfare methods. Public organizations try to solve the economic and social problems of workers and their families through voluntary social work activities. Even though all these organizations try to solve the labour problems Trade Unions deal or handle these problems more effectively and efficiently. It tries to facilate the welfare of workers; eliminate exploitation through organized action like collective bargaining, welfare work, strikes etc. Thus, it is concluded that the primary role of a Trade Union is to protect the workers and to channelize their efforts into more rational directions. Functions of Trade Unions: The functions of Trade Unions are wide and comprehensive. These functions have been termed as: (i) Militant or protective functions, and (ii) Fraternal, ministrant or positive functions. The former functions aim at securing better conditions of work and employment for members through militant activities such as strikes, gheraos etc., if there is a failure of collective bargaining. The latter functions provide benefits to their members and support them during strikes/lockouts or during periods of temporary unemployment by giving them financial support out of the funds raised with their contributions.

Answer 4. (b) Organizational Structure of Trade Unions In India: The Organizational Structure in India consists of three levels: 1) 2) 3) Plant / Shop or Local State Central Every National or Central Federation of labour in India has state branches from its organization works down to the local level. These are two types of organizations to which the trade union in India are affiliated: 1) National Federation 2) The Federation of Unions National Federations: The National Federation have all the trade unions in a given industry as their affiliated members. Every trade unions, irrespective of the industry to which it belongs, can join a general national federation. The National / Central Federation are empowered to decide the question of jurisdiction of the various local and national unions, e.g. INTUC consists of: Central organization, the affiliated unions, the industrial federation, regional branches and councils, the assembly of delegates the general council and the working committees. Federation of Unions: These have as the objection the establishment of new unions, uniting and strengthening the existing ones, creating harmonious relations between capital and labour and improving the status of trade unions and workers. Unions Security: Sometimes the individual employees may refuse to follow contract provisions. These people can create dissatisfaction among union members who may also likewise refuse to continue their support to union activities. For these reasons, the union propose a system of union security, of which all employees are required to be or to become and to remain union members. Union Security Covers: (a) Sole or Exclusive Bargaining Agent: Under this type of security, the union is accepted as a bargaining agent for all employees in the Unit.


(b) Preferential Union Shop: In this, additional recognition is granted to a Union by agreement that management hall give first chance to union members in recruitment. (c) Maintenance of Membership: Under this all employees who are or who become members of the union must remain members in good standing for the duration of the contract as a condition of employment. (d) Agency Shop: In this, an employee in a bargaining unit is obliged to pay dues to the Union in return for the collective bargaining service which it is rendering him, although he does not join the unions. (e) Union Shop: Under this all employees in the bargaining unit must become members of the union after a specified date. The Union shop is preliminary to the acceptance of collective bargaining. (f) Check-off: It is a practice which the employer deducts union dues from the pay of the workers and hands over the deductions to the union. It lays down the procedure whereby the employer collects for a trade union its subscription from members by withholding the necessary amount from the wages of the Union members.


Answer 5. (a) The Trade Unions Act was passed in 1926 under the title of the Indian Trade Union Act and was brought into effect from 1st June 1927 by a notification in the Official Gazette by the Central Government. The Act was amended in 1947, 1960 and 1962. Subsequently, the word India was deleted from the amended Act of 1964, which came into force from 1 st April 1965. A comprehensive Trade Unions (Amendment) Act was passed in 1982. Object of the Act: The Act was enacted with the object of providing for the registration of trade unions and verification of the membership of trade unions to registered so that they might acquire a legal and corporate status. As soon as a trade union is registered, it is treated as an artificial person in the eyes of the law, capable for enjoying rights and discharging liabilities like a natural person. In certain respects, the Act attempts administration and penalties, makes provision for: (a) (b) (c) Conditions governing the registration of trade unions; The obligation of a registered trade union, and The rights and liabilities for registered trade unions.

The amendments in the Act in 1982 have been made with the following objectives: (i) To reduce multiplicity of unions, the existing provision of enabling any seven workers membership of 10% of the workers (subject to minimum of ten) employed in the industry or establishment where the trade union is proposed to function, or 100 workers, whichever is less, for the registration of trade unions. There is at present no machinery for the resolution of trade union disputes arising from interunion and intra-union rivalries. Therefore, the term trade union dispute has been defined afresh to make provision for resolving such disputes through voluntary arbitration, or by empowering the appropriate government and the parties to the disputes to refer it to the Registrar of Trade Unions for adjudication. The Act of 1926 did not set any time limit for the registration of trade unions. Now a provision has been made for a period of 60 days for the registration of trade unions by the Registrar after all the formalities have been completed by the trade unions. Provision has also been made that a trade union, whose certificate of registration has been cancelled, would be eligible for re-registration only after the expiry of a period of 6 months from the date of cancellation of registration, subject to certain conditions being fulfilled by the trade union. Under the existing provisions of the Act, 50% of the office bearers in the executive of registered trade union shall be persons actually engaged or employed in an industry with which the trade union is connected. This limit has been enhanced to 75% so as to promote the development of internal leadership. Registrar of Trade Unions has been empowered to verify the membership of registered trade unions and connected matters and report the matter to the state and the Central Government.






Provisions of the Act: The main provision of the Act relates to 1) 2) 3) 4) 5) 6) 7) 8) Definition Registration of trade unions. Duties and liabilities of registered trade unions. Rights and privileges of registered trade unions. Amalgamation and dissolution of trade unions. Submission of returns. Penalties and fines. Power to make regulations.


Answer 5. (b) Addition of New Sections under 1982 Amendments: (a) Registrars Power to Verify Trade Union Membership: Section 28A: (i) The Registrar shall have the power to verify the membership of registered trade unions and matters connected herewith in such manner as may be prescribed and shall send a report about such membership to the State Governments and The Central Government. To exercise such powers, the Registrar shall follow such procedure as may be prescribed and shall have the same powers as are yested in a Civil Court documents or other connected materials. (b) Voluntary Reference of Trade Union Dispute to Arbitration: Section 28 B: (i) Where any trade union dispute exists or is apprehended and the parties to the dispute agree to refer the dispute to arbitration, they may, by a written agreement(i.e. arbitration agreement), refer the dispute to arbitration, and the reference shall be to such arbitrator or arbitrators as may be specified in the arbitration agreement. Where an arbitration agreement provides for the reference of the dispute to an even number of arbitrators, the agreement shall provide for the appointment of another person as umpire who will make and award on the reference. Arbitrators should be equally divided in their opinion, and the award of the umpire shall prevail and shall be deemed to be the award of the arbitrators for the purposes of this section. The arbitration agreement shall be in such form and shall be signed by the parties thereto in such manner as may be prescribed. A copy of the arbitration agreement shall be forwarded to the appropriate government and the government shall, within one month from the date of the receipt of the copy, publish the same in the official Gazette. (c) Reference of trade Union Disputes to Registrar : Section 28 C: (i) Where the appropriate government is of the opinion that any trade union dispute exists or is apprehended, it may, at any time, by an order in writing, refer the dispute to the Registrar for adjudication. Subject to any regulations that may be made in this behalf, the Registrar shall, in adjudging the dispute referred to him, follow such procedure, as he thinks fit. Where in an order referring a trade union dispute to the Registrar, the appropriate government has specified the points of dispute for adjudication, the Registrar shall confine his jurisdiction to those points and matters incidental thereto. The award of the Registrar shall be in writing and shall be signed by him. The award published shall be final and shall not be called into question by any count in any manner whatsoever.



(iii) (iv)

(ii) (iii)

(iv) (v)


(vi) Any award made by the Registrar in a reference made to him shall be final and shall not be called into question by any Court in any manner whatsoever.

Penalties and Fines: A Penalty may be imposed for default in submitting returns or for the supply of false information or statements. (a) Failure to give notice which is required to be given by a registered trade union;

(b) Failure to send any return, required to be sent by a registered trade union; or (c) Failure to send any documents, required to be sent by a registered trade union. Every office bearer or other member of the executive is bound to give such information, or send statements or documents, as required under the provisions of the Act; and if this is not done, they are punishable with fine which may extend to Rs.25. In the event of a continuing default, and additional fine, not exceeding Rs. 25, may be imposed for each week after the first week during which the default continues. But in no case shall the total amount of the fine exceed Rs.500. The following information or statements are required to be submitted by the registered trade union: (i) (ii) (iii) Notice of change in the address of the head office of the trade union: Notice of change of the name or amalgamation of the union; Notice of change in the officers of the trade union;

(iv) Copies of the corrected rules; and (v) (vi) Copy of every alteration made in the rules; Notice of dissolution of trade union; and

(vii) Annual returns for the period ending March 31 The Act also lays down that where any person with intent to deceive gives; to any member of such trade union, a copy of the rules or a copy of any alterations of rules which he knows or has reason to believe is not a correct copy of the rules of alteration or rules that are for the time being in force, shall be punishable with fine which may extent to Rs.200.



Answer 8 (a) Causes of Industrial Disputes: There is no one single cause for industrial disputes in India. The causes are many; psychological potential and economic. As early as in 1931, the Royal Commission on Labour observed; although workers may have been influenced by persons with nationalist, communist or commercial ends to serve, we believe that there has rarely been a strike of any importance which has not been due entirely or largely to economic reasons. A classification for work-stoppages by cases is given for disputes whose causes are known. The Labour Bureau, simla, has listed the following causes:(i) Wages and Allowances; (ii) Bonus; (iii) Personnel; (iv) Leave and hours of work; and (v) Others In 1971, a new cause indiscipline and violence was added to the older classification. During the period from 1921 to 1931, 15.2 percent of the demands related to wages, 4.6 percent to bonus, 21.3 percent to personnel matters, 4.4 percent to leave and hours of work and 18.5 percent to other matters. According to V.B Singh the causes of industrial disputes may be categorized under: (a) (b) (c) Income Employment; and Technological changes Under these three groups are included the following causes: (a) The causes of industrial disputes falling under the Income category include wage items and piece rates, dearness allowance, bonus, minimum and basis wages, the fixation and scales of provident fund, gratuity and pension, pay for night and overtime work, and fines. The causes falling under Employment are : holidays and leave, including maternity, privilege and sick leave, shift duty and hours of work, welfare activities, including canteens, dispensary, crches, sports, and education, recruitment, dismissals retirement and permanency, reintatement and discharge, standing orders. Code of Discipline, production target and lay-off, lockout and strikes.




Technological changes include those relations to workload, standardization of raw materials, rationalization scheme and modernization of the plant.

The Ways of Industrial Peace: One of the prime threads to the efficient conduct of the modern industrial system seems to be the ravaging industrial disharmony, characterized by embittered relationships between the employer and the workers. The gulf between the employer and the employee has widened more than ever before. Distributional disparities have worsened. Discounted and frustration at the lower ends of the echelon have heightened; and if things are not put in there proper setting, the grand industrial frabic ma show tears that may not be repaired. Industrial peace can be built upon mutual and proper understanding of the problems of employers and workers. It is absolutely necessary to have an enlightened management and workers union. The Royal commission on Labour, 1931, has suggested three ways of stabilizing industrial relationship. 1) Appointment of labour officer in undertakings to look after the welfare of workers and to represent their grievances to the employers with a view to establishing and promoting healthy contacts between labour and management; Constitution of Works Commities in industrial establishing and joint consultative councils for different industries; Development of stable and responsible trade unions.

2) 3)


Answer 8 (b) The definition is very wide and covers a variety of disputes between and employer and a workman. A dispute is an industrial dispute provided it satisfies the following conditions:(a) There should be an industry, employer and workman. There must be a collective will of a substantial or appreciable number of workmen taking up the cause of the aggrieved workman. It must be fully raised with the management and rejected by it, i.e., the employer must be in a position to redress the grievance. (b) There should be a real and substantial dispute or difference. It should be one in which the workman is substantially interested, i.e., there must be a community of interest. (c) The dispute should be between the employer and his workmen, between employers and employers or between workmen and workmen. (d) The dispute must be connected with (i) (ii) (iii) the employment, or non-employment, or terms of employment or conditions retrenchment and refusal to reinstate of non-employment includes

(e) An individual dispute may assume the character of an industrial dispute provided it is sponsored either by a trade union or by a number of workmen. Collective support by workmen is essential before an individual dispute becomes an industrial dispute, i.e., the workmen as a body or a considerable section of them must make common cause with the individual workman before his dispute becomes and industrial dispute. Authorities under the Act The Act provides for a number of authorities. Viz.: (a) Works Committee; Sec 3 A works committee shall be constituted in every establishment where 100 r more workmen are employed or have been employed on any day in the preceding 12 months; to promote measures, for securing and preserving amity and good relations between the employers and workmen and comment upon matters of common interest or concern and endeavor with a view to reconciling any material difference of opinion on such matters. It shall consist of an equal number of representatives of employers and of the elected representatives of workmen (the total number must not to exceed20). The representatives of the employer shall be nominated by the employers and those of workmen by the registered trade union or by non-members, if there is no trade union. The tenure of office of the representatives is for two years; and they lose membership if they fail to attend three consecutive meetings. The committee may meet as often as possible, but not less than once in 3 months.


(b) Conciliation Officer, Sec 4 His duty is to induce the parties to come to fair and amicable decisions on matters in disputes. He is an independent person who investigates the dispute and all matters affecting it. He is not an adjudicating body but is merely a suggesting body. He goes from company to company and finds out the greatest common measures of agreement. He is charged with the duty of mediating in, and promoting the settlement of industrial disputes. The appropriate government appoints this officer by a notification in the official gazette. The number of conciliation officers to be appointed is determined by number of industrial disputes that actually exist or may arise. A conciliation officer may be appointed for a specified are or for specified industries either permanently or for a limited time. (c) Boards of Cociliation: Sec 5 A Board of Conciliation is constituted an ad hoc body by the appropriate government. Its purpose is to induce the parties to come to a fair and amicable settlement. The appropriate government is not empowered to constitute a Board for the purpose of referring criminal proceedings. The Board cannot enforce and award. It also cannot thrust upon the contending parties its own terms and conditions of settlement. It can take action only when the appropriate government has referred a dispute to it. The appropriate government may constitute the board by a notification in the Official Gazette. It shall consist of a chairman (who shall be an independent person, i.e., unconnected with the dispute or with any industry directly affected by such dispute) and two or four members, as the government thinks fit, who shall be appointed to represent the parties. If any party fails to recommend any name within the prescribed time, the appropriate government shall appoint such persons as it thinks fit to represent that party. (d) Courts of enquiry: Sec 6 A court of Inquiry is constituted as an ad hoc body by the appropriate government. It can inquire into any matter connected with or relevant to an industrial dispute; but not into the dispute itself. The constitution of the court has to be notified in the Official Gazette. It may consists of one independent person or such member of independent persons as the appropriate government thinks fit. If there are more than Two persons, one them shall be appointed as chairman. A court, having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its members or any vacancy that may have occurred. The court of inquiry is not required to make any recommendations for resolving disputes. It is seldom appointed, as it is a superfluous and an ad hoc body. It has no power to impose any settlement on the parties. It is merely a fact-finding body. It does not care much for the settlement of the dispute. (e) Labour courts: Sec 7 One or more Labour Courts may be constituted by the appropriate government by a notification in the Official Gazette to adjudicate on industrial disputes relating to any matter specified in the Second Schedule to the Act, and to perform such other functions as may be assigned to them.

A labour court shall consist of one person only to be appointed by appropriate government such a person is or has been a judge of a High Court; or has been, for a period of not less than 3 years, a District Judge or an Additional District Judge; or has held any judicial office in India for not less than 7 years; (f) Industrial Tribunal: Sec 7A The appropriate government may appoint one or more Industrial Tribunals for the adjudication of industrial disputes reacting to any matter, whether specified in the Second Schedule or the Third Schedule. The matters, which are in the form of new demands and give rise to industrial disputes, which affect the working of a company or industry, are usually referred to an industrial tribunal. The functions of the industrial tribunal are essentially quasi-judicial and, are therefore, subject to the over-riding jurisdiction of the Supreme Court. The powers of the Tribunals are derived from the Statute that creates them and they have to function within the limits imposed thereon and to act according to its provisions. (g) National Tribunals, Sec 7B The Central Government may, by a notification in the Official Gazette, constitute one or more national tribunal for adjudication of industrial disputes (i) (ii) Involving questions of national importance; or Which are of such a nature that industries in more than one state are likely to be interested in, or affected by, such disputes.

It consists of one person only, who is an independent person below 65 years of age. He should be or has been a judge of a High Court or has held the office of chairman or any other member f the Labour Appellate Tribunal for a period of not less than 2 years.


Answer 9 (a)

TRIPARTITE BODIES : The Industrial Relations in India have been shaped largely by principles and policies evolved through Tripartite consultative machinery at the Industrial and National levels. The process of consultations was itself the outcome of a realization between employers and workers, without their participation in direct action. Importance:


To bring the parties together for a mutual settlement of differences and a spirit of cooperation and goodwill. (2) To promote uniformity in labour legislation. (3) To discuss all matters of All India importance as between employers and employees. (4) To determine a procedure for the settlement of Industrial disputes. Evolution: The need for tripartite consultation on labour matters on the pattern set by the ILO was recommended by the Whitley Commission in 1931. It envisaged a statutory organization which should: (1) Be sufficiently large to ensure adequate representation of the various interests involved. (2) Not be too large to prevent the members from making individual contributions to the discussions. (3) Representatives of employers, Labour and government should meet regularly in a conference. Separate consultations held during the Second World War highlighted the necessity of holding joint meetings of the representatives thus providing a a common platform for the resolution of differences. Accordingly, the fourth labour conference held in August 1942, set up permanent tripartite collaboration machinery and constituted a preliminary labour conference, named as the Indian Conference and The Standing Labour Advisory Committee. BIPARTITE BODIES : Relations between laborers and managements set the tone of social relationships in an industrial society. With industrialization the government has attempted to democratize these relations and thus extend democracy to the work place. The institutions of WORKS COMMITTEES and JOINT MANAGEMENT COUNCILS were some of the early steps taken by the country in stride towards this goal. Evolution: The importance of BIPARTITE CONSULTATIVE MACHINERY was recognized as early as 1920, when a few joint committees were set up in the presses controlled by the Government of India. They were introduced in TISCO in Jamshedpur.


In 1922, the worker Peoples Welfare Committee was established in the Buckingham and Carnatic Mills, Madras to achieve close contact with workers. Some other committees were also started in private and state owned enterprises. The results were rather disappointing. By the end of Second World War, committees were functioning in a few industrial undertakings; and these were known as Workers councils, Joint Committees or Workers Committees. The industrial Truce Resolution 1947 found a place in the Industrials Disputes Act of 1947. FUNDAMENTALS OF THE INDUSTRIAL SETTLEMENT : (1) Both the parties agree that this settlement is being entered into at a a time when the total business environment in the country is undergoing a a metamorphic change towards liberalization, globalization and fierce international competition. This break-away from the past is in turn going to put continuous pressure on improving the quality of man-power at all times and positive and pro-active response from human resource to the demanding changes in the future from time to time. It is also agreed and understood by the parties that survival in the demanding business environment, calls for a greater degree of working together and sharing together to bring about highest degree of qualitative performance, timely response and supply of goods to the society at competitive price. Appreciating above realities, parties agree and accept following Charters of Human Resources Policy which will govern the conduct of employee in future. Every effort shall be made by every individual employee to improve his performance, quality of skill through training and participation in development activities. The Company will organize/introduce programmes /schemes from time to time and the employee shall participate and respond to the needs of the company, multi-trades, versatility skills, etc. As a departure from the past, every employee will appreciate through including skills, and versatility in operations, and in doing so, shall be available for any operations depending upon the exigencies of work. Under no circumstances, machinery shall remain idle and inoperative for want of either skill or availability of trained man-power, meaning thereby depending on the needs of the industry, it would be the joint endeavor to utilize the machinery round the clock throughout the year. There shall be a growing emphasis on conversion of indirect employees into direct employees thereby reducing the indirect cost and optimise utilization, etc.. There shall be a greater degree of emphasis on planned absenteeism to reduce uncalled for holdups in the process. A greater degree of concern towards ensuring all critical operations is being considered as top priorities for man-power development in order to avoid bottlenecks and to ensure that the trained employees will bring down progressively the need for increase in short term employment. Short term employment will be resorted only to meet sporadic increase in business commitments, but shall be in accordance with relevant statues. It is also clearly understood between the parties that the above measures are intended to bring about utilization, cost effectiveness, quality of performance and timely response to changing situations. The intent and purpose is not exploitation in any form, not avoidance of any of the statutory obligations but taking care of ups and downs in the demand. It is agreed endeavor of the parties that every employee is totally committed to 100% quality standards and shall strive hard to ensure Zero defect performance in every role he plays, namely customer to the earlier process, Supplier to the subsequent process and Inspector of his own work process. Every employee will spread the Quality mission not only in his work environment, but also in his total quality of life. Towards this end, he shall take part in


(3) (a)

(b) (c)

(d) (e) (f)




training ad developmental programmes and disseminate the message to all others in the organization.

Answer 9 (b) MEDIATION : Mediation is the ancient art of the peace-maker. It has been practiced in the number of areas when people disagree; it is an ancient and honorable process for the settlement of disputes between two warring nations, disputes between litigants, disputes between labour and management and in general disputes between people. Mediation is an attempt at setting disputes with the help of an outsider who assists the parties in their negotiations. It contemplates affirmative and positive action by a third party to bring about and a settlement of disputes. It encourages the employers and the union to come to a decision without any force or orders from the mediator. He does not exercise any compulsion; he cannot and should not undertake to decide what parties should do; he may advance various considerations, but certain evaluations and judgments must be left to the parties themselves. CONCILIATION: Conciliation is the most important method for the prevention and settlement of industrial disputes through third party intervention. It may be described as the practice by which the services of a neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution. It is a process of rational and orderly discussion of differences between the parties to a dispute under the guidance of a conciliator. It is a process by which representatives of workers and employers are bought together before a third person or a group of persons with a view to persuading them to arrive at an agreement by mutual discussion between them. As a process of peace-making in industrial relations, conciliation tends to bring about a speedy settlement of disputes without resorting to strikes or lockouts, and to hasten the termination of work stoppages when these have occurred. ROLE OF THE CONCILIATOR : The conciliator induces the parties to a course of action. His intervention in the disputes creates for the parties a situation different from one of direct confrontation. The conciliator opens to the parties a variety of available options besides those they can think themselves. By promoting their attitudes and discovering in what fields they may prepared to show some flexibility, he gains a perspective of the issues in dispute and of alternative possibilities of settlement. The role of a conciliator may be discussed under the following heads: (a) Discussion Leader:


As a discussion leader, the conciliator reduces irrationality and antagonism between the parties. He guides them towards a problem solving approach to their dispute, he ensures that they discuss their differences in as friendly a manner as possible, he helps them to analyze their problem, always striving to keep the analysis on a a rational plane, he identifies the elements of the problem for the benefit of both the parties and for his own.

(b) Safety Value: The conciliator places him in the position of an alternative target when he feels that the parties are in an aggressive mood. By setting a substitute target, the parties can achieve an emotional release without direct and immediate damage to the negotiations. (c) Communication Link: The conciliator fulfils an important function as communication link between the parties. Serving as a communication link may either constitute his main conciliatory effort or be a contribution to it. (d) An Innovator: The conciliator acts as an invaluable source of new information and new thoughts, particularly in providing the parties with different views of the issues, with possible alternative solutions and possibly an entirely new approach. (e) A Sounding Board: He is often described as a flying ambulance squad, appearing whenever or wherever a collision or conflict, which threatens to disturb harmonious relations, occurs or is apprehended to occur between interest of the parties. (f) A Protector: The conciliation plays a protecting role, for he readies the parties for collective bargaining position by exploring alternative solutions during separate meetings. (g) A Fail-safe Device The conciliator often assists a party which has overstated its position to the extent of bluff or exaggeration of its reaction to some move on the part of the other or taken a clearly untenable stance to withdraw gracefully under the banner of reason. (h) A Stimulator: Sensing the need for positive action, the conciliator can provide the necessary impulse to a settlement, he makes a concise statement, supplies some data, gives a hint or suggestion. He crystallizes changes of opinion in the course of discussions by intervening at the appropriate moment and giving such ideas a concrete form. (i) An Advisor:


The conciliator tries to remove the misunderstandings regarding the others position, intention and capabilities. He tries to see that misinterpretation do not occur and that each side thoroughly understands the others point of view, obtains pictures of the opponents strength and realizes its own limitations and weaknesses. (j) A face saver: When a party knows at the outsets or realizes during the course of proceedings that it has a weak ease and can hope for little success in pursuing the dispute. The people concerned often reluctant to admit defeat, because they feel that this involve them in loss of face, or prestige, with their members or public. In such situations, the conciliator may devise a form of accommodating settlement, which apparently makes some small concession to the party concerned but which in reality gives it little or nothing. (k) Promoter of Collective Bargaining: While intervening in dispute, he is not only concerned with promoting a settlement, but often assists in collective bargaining and guides the parties in the development of their relationship.


Answer.10. (a) Salary Administration Procedures: In this section we will be concerned with the implementation and control of salary policies and with the control of salary consists against budgets. Control is an essential element of salary administration. We will also examine the following procedures: Salary Budget: A salary budget is a statement in qualitative/financial terms of the planned allocation and use of resources to meet the operational needs of the company. Ina salary budget, you should forecast the levels of activity, which will indicate the number of different categories of staff that are needed for the budget period. When you prepare the salary budget you must take account of the financial resources available to the company. This will, as you can see, affect the ability to pay general or individual merit increases, or the numbers employed, or both. Salary Reviews: General salary reviews take place when it is necessary to increase all or most salaries as a result of an increase in the cost of living or in market rates, or as a result of settlements. It is equally important to keep individuals informed of how they stand in the salary structure and the rewards they are getting or can obtain. The purpose of an individual salary review is to decide on the merit increments that should be given to staff. You can have one annual review for all staff or you may phase increases through the year on the anniversary of the staff joining the organization. The later enables you to give more individual attention to the staff and removes the emotional atmosphere that surrounds the annual review. Fixing Salaries on Appointment or Promotion: Control over starting salaries should be exercised by providing guidelines on the policies to be flowed and by defining who has the authority to approve salaries. Promotions should be dealt with as they arise rather then being left to the annual review. The increase should be meaningful and the starting point in the new grade should provide adequate scope to reward performance in the new job. Other Allowances: Employees are given various forms of additional cash remuneration or encourage commitment to and participation in the success of the organization. Payment other than the


basic salary is also meant to compensate the employees for the special demands imposed on them by working for the organization.

Bonus Schemes: The amount of reward received should be sufficiently high to encourage staff to accept exacting targets and stands of performance. The scheme should be sensitive enough to ensure that rewards are proportionate to achievements. The scheme should contain provisions for a regular review which could result in its being changed or discontinued. The scheme should be easy to administrator and understand, and it should be tailored to meet the requirements of your organization. The formula for calculating the bonus and the conditions under which it is paid should be clearly defined.


Answer.10. (b) Factors for Low Efficiency of Labours: Efficiency of labour depends upon the capacity of laborers hand, head and heart i.e. upon his ability, intelligency and willingness to do the work. Labour efficiency may be expressed in terms of Unit of Physical Output-Output Per Man Hour, Output Per Man Shift. Ability depends on diet, housing, climate, work combination and training. 1) Willingness depends upon the behavior of employer, family condition, social impacts, prospects of rewards and promotion, his own intelligence and motivation and morale and the remuneration that he gets. Factors for Relatively low Efficiency:

2) Climate Migratory Character

Low Wages lower Standard of Living Break up of Joint family so insecure feeling Obsolete machinery, poor quality raw material Education and training Hours of work and unsatisfactory work condition Bad housing condition Indent tends Absenteeism Social habits Lack of discipline and easy going attitude Political influence. Relationship between low wages and high prices is evident.


3) 4)

Higher productivity: Not at End in itself but means of Production, Social progress and strengthening economic foundations of human well being. Different to production Production is mere volume of output. Mere increase in production does not mean higher productivity, though HIGHER productivity IMPLIES higher production. Increasing productivity IMPLIES the full, proper and optimum utilization of the available resources of men, machines, materials, money, management techniques, power and level. It implies ruthlessly cutting down waste in all.


Answer.10. (c) Job Analysis: Developing an organization structure results in the jobs, which have to staff. Work is an organizations primary function. The basic work activities may relate to three categories Data, People and Things. Under Data are include, computing, copying and comparing activities. People relate to monitoring, negotiating, instructing supervising, and diverting, persuading, speaking, signaling, serving and taking instructions. The following are the certain terms relating to job analysis: Job: A job may be defined as a collection or aggregation of tasks, duties and responsibilities which as a whole, is regarded as a regular assignment to individual employees, and which is different from other assignments. In other words, when the total work to be done is divided and grouped into packages, we call it a job. Job Analysis: It is a procedure by which pertinent information is obtained about a job i.e. it is detailed and systematic study of information relating to the operations and responsibilities of a specific job. In authority has defined job analysis as the process of determining, by observations and study, and reporting of a specific job. It is the determination, the skills, knowledge, abilities and responsibilities required of the worker of a successful performance and which differentiate on job from all others. Job Description: It is a written record of the duties, responsibilities and requirements of a particular job. It is concerned with the job itself and not with the work. It is a statement describing the job in such terms as its title, it is to be done and why. It is a standard of function, in that it defines the appropriate and authorized content of a job. Job Specification: It is a standard of personnel and designed required for an acceptable performance. It is a written record of the requirements sought in an individual worker for a given job. In other words, in refers to a summary of the personal characteristics required for a job, it is a statement of the minimum acceptable human qualities necessary for the proper performance of a job. Job Design: It is the division of the total task to be performed into the manageable and efficient units, position, departments and divisions and to provide for their proper integration. The sub-division of work is both on a horizontal scale with different tasks across the organization being performed by different people and on the vertical scale, in which higher levels of the organization are responsible for the supervision of such groups, more complex planning etc.


Job Analysis (JA): After a job has been defined, it is analyzed i.e. each task is described in detail. Job analysis is a procedure and tool for determining the specified tasks, operations and requirements of each job. In the process of getting information about jobs: specially, what the worker does, how he gets it don; why he does it; skill, education and training is required; relationship to other jobs; physical demands; environmental conditions. In other words, it refers to the anatomy of the job. It is a complete study of the job, embodying every known and determinable factor including the duties and responsibilities involved in its performance, the nature of the task, the qualities required in the worker, and such conditions of employment as pay, long, opportunities and privileges. It also emphasized the relation of one job to others in the organization.

Answer.10. (d) Recruitment Checklist: Recruitment Policy assesses the objective of recruitment and provides a framework of implementation of the recruitment programme. In the form of procedures, a good Recruitment Policy must contain the following elements. (a) Organizations objective: Both the short-term and the long-term. (b) Identification of the recruitment needs to take decisions regarding the balance of The Qualitative dimensions. (c) Preferred sources of recruitment Whether internal or external (d) Criteria of selection and preference. (e) Cost of recruitment and the financial implications of the same. The following checklist has to be made: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Has the responsible Manager agreed the vacancy? Is there up to date job description? What are the conditions of employment (salary, hrs, and holiday) for the vacant position? Has a candidate specification been prepared? Has a notice of vacancy been submitted earlier? Has the job advertisement been agreed? What arrangements have been made fro drawing a short list of candidates? Have the interview arrangement been made? Have unsuitable candidates held in reserve been inform? Have offer letters been agreed and dispatched?


11) 12)

Have suitable rejection letters been sent to unsuccessful short listed candidates? Have all replies to offer letters been accounted for?

Answer.10. (e) (1) Rights of Recognized Trade Union Such officers, members or the office staff and members of a recognized union as may be authorized by or under rules made in this behalf by the stage government shall in such manner and subject to such condition as may be prescribed, to have a right: (a) To collect sums payable by members of recognized union on the premises, where wages are paid to them. (b) To put up or cause to be put up a notice board on the premises of the undertaking in which the members are employed and affix or cause to be affixed notice thereon. (c) For the purpose of the prevention or settlement of an industrial dispute: (i) to hold discussion on the premises of the said undertaking with the employees concerned, who are the members of the union, but so as not to interfere with the due working of the undertaking. (ii) to meet and discuss, with an employer or any person appointed by him in that behalf, the grievances of employees employed in his undertaking. (iii) to inspect, if necessary, in an undertaking any place where an employee of the undertaking is employed. (d) To appear on behalf of any employee or in any domestic or departmental inquiry held by the employer. (2) Where there is a recognized union for any undertaking: (a) that union alone shall have the right to appoint its nominee to represent workmen on the works committee constituted under sec.3 of the central Act (IDA) (b) no employee shall be allowed to appear or act and be allowed to be represented in any proceedings under the Central Act (not being a proceeding in which the legality or propriety of an order of dismissal, discharge, removal, retrenchment, termination of service or suspension of an employee is under consideration) except through the recognized union; and the decision arrived at, or order made, in such proceeding shall be binding all the employees in such undertaking.


Answer.10. (f) Women Workers in India: The following are the salient features of employment of women observed in the Annual Report 1993-94, Ministry of Labour, Government of India and as revealed by the 1991 Census figure: As per 1991 Census over one third of India population is working. Among males, more than half are workers while among females nearly one in four is engaged in some kind of work. The Census of 1991 has registered 22.89% of the female population as workers 91.4 million persons is absolute terms out of a total female population of 402.8 million. The rate of women Workers in the total worker population in urban and rural areas is respectively 9.73% and 27.06%. Majority of women workers in rural areas and 87% of them are employed in agriculture as cultivators and laborers.

The average daily annual rate of growth of employment amongst educated women was 11.08% during the period 1983 to 1987-88, compared to only 6.58% during the period 1977-78 to 1983. These figures reflect a higher rate of growth than for men during the same period which men 6.76 and 5.51 respectively. The Report of the National Commission on Self-Employed Women in the Informal Sector observes that 90% of the working women are in the informal and unorganized sector, and only 10% work in the formal sector. According to a World Bank Report, 1991, the percentage of women in the non-agricultural formal sector ranges between 2 and 5% of the total female labour force and the non-agricultural informal sector between 7 and 15% Women in agriculture account for 81% of the work force. Types of Work Done By Women: According to Maitheryi Krisnaraj the type of work done by women in India can be classified into the following categories: 1) Wage and Salaried employment.

2) 3) 4) 5)

Self-employment outside the household for profit. Self-employment in cultivation and household industry for profit. Self-employment in cultivation for own consumption. Other subsistence activities in all allied sectors like dairying, other livestock rearing such as poultry, goats, pigs, etc. and fishing, hunting cultivation of fruit and vegetable gardens. Activities related to domestic work such as fetching fuel, fodder, water, forest produce, repairing


Answer. 10. (g) Sources of Income and Items of Expenditure: Membership Fee: The main source of the income of a trade union is the membership fee. Every member is expected to pay a fee which may be recovered monthly, quarterly or annually. The fee is small or big depending upon the emoluments of members and services rendered by the union. In India, according to Trade Union Act, 1926, minimum membership fee to be charged is 25 paisa per member. Admission Fees: A union may charge an admission fee. This admission fee may be deposited in a fund to be utilized for special purpose. Donations: A union may also recover from members from time to time donations and other levies. Such recoveries are usually made when members get some lump sum payments by way of bonus or arrears of wages. Usually such payments are secured as a result of the efforts of the union. Members do not then grudge making additional contributions to the funds of the union. Levy Charges: A union may levy charges for some of its services. For example, there may be a fee for the use of a library or reading room or for medical and other type of help that may be rendered. Welfare Fund: A union may also start a welfare fund out of which assistance may be provided in cases of sickness, unemployment or old age. Members may be asked to make contributions to it. British and American unions have many such funds and they have contributed materially to their strength and stability. Fines and Forfeitures:


Fines may be levied upon members for non-payment of dues or other departures from rules. There may be also some forfeiture, when members may leave the union and not claim the benefit due to them. Interest on Investments: When unions make investment in securities, fixed deposits etc. they get interest thereon. It is so far an insignificant factor because in the case of our unions very few have funds which can be invested in securities. But the position change in the next few year.

Sale of Periodicals, Books etc.: Unions may publish some periodicals and books about their activities. They are sold to workers and other concerned people. From this sale proceed union may get some amount. But this amount also is very small.

Income from Miscellaneous Sources: Unions can also raise donations from non-members. They can also get in times of need, financial assistance from sister unions or from their federations and nations organizations, But these are not usual items of revenue on which a union can build its activities. Items of Expenditure: The funds of a union can be spent only for the purpose of the unions. Section 15 of the Indian Trade Union Act 1926 provides The General funds of a registered trade union cannot spent on any other object than the following: 1) The payment of salaries, allowances and expenses to officers of the trade union. 2) The payment of expenses for the administration of the trade union, including audit of accounts of the trade unions. 3) The prosecution or defense of any legal proceedings to which the trade union or any member thereof is a party. 4) The conduct of trade disputes on behalf of the trade union or any member thereof. 5) The compensation of members for loss arising out of trade disputes. 6) Allowances to members or their dependents on account of death, old age, sickness, accidents or an employment of such members. 7) The issue of or the undertaking of liability under policies of assurance on the lives of members, or under policies insuring members against sickness, accidents or unemployment.


8) The upkeep of periodical published mainly for the propose of discussing questions affecting employers or workmen as such.