Professional Documents
Culture Documents
(DISTANCE MODE)
DBA 1748
IV SEMESTER
COURSE MATERIAL
Dr
Dr.. Joe Christy N
Assistant Professor
Department of Management Studies
BSA Cresent Engineering College
Vandalur
Chennai - 600 048
Reviewer
Dr.. R. K
Dr esan
Kesan
Assistant Professor
Department of Production
Madras Institute of Technology
Anna University Chennai
Chennai - 600 044
Editorial Board
Dr.T
Dr.T.V
.T.V.Geetha
.V.Geetha Dr.H.P
Dr.H.P eer
eeru
.H.Peer u Mohamed
Professor Professor
Department of Computer Science and Engineering Department of Management Studies
Anna University Chennai Anna University Chennai
Chennai - 600 025 Chennai - 600 025
Dr.C
.C.. Chella
Dr.C ppan
Chellappan Dr.A.K
Dr.A.K annan
.A.Kannan
Professor Professor
Department of Computer Science and Engineering Department of Computer Science and Engineering
Anna University Chennai Anna University Chennai
Chennai - 600 025 Chennai - 600 025
Copyrights Reserved
(For Private Circulation only)
ii
iii
ACKNOWLEDGEMENT
The author has drawn inputs from several sources for the preparation of this course material, to meet the
requirements of the syllabus. The author gratefully acknowledges the following sources:
Inspite of utmost care taken to prepare the list of references any omission in the list is only accidental and not
purposeful.
v
DBA 1748 INDUSTRIAL RELATIONS AND LABOUR WELFARE
Concepts – Importance - Industrial Relations Problems in the Public Sector- Growth of Trade Unions- Codes of
conduct.
Disputes – Impact – Causes – Strikes - Prevention – Industrial Peace –Government Machinery- Conciliation
– Arbitration – Adjudication.
Concept –Objectives – Scope – Need- Voluntary Welfare Measures – Statutory Welfare Measures- Labour-
Walfare Funds- Education and Training Schemes.
Causes of Accidents – Prevention –Safety – Provisions – Industrial Health and Hygiene-Importance – Problems-
Occupational Hazards- Diseases – Psychological problems- counseling- statutory provisions.
Child Labour – Female Labour- Contact Labour – Construction Labour –Agricultural labour – Disabled –
Welfare of knowledge – Social Assistance – Social Security- Implications.
REFERENCES
1. Mamoria C.B. and Sathish Mamoria , ‘Dynamics of Industrial Relations’, Himalaya Publishing House,
New Delhi 1998.
2. Dwivedi . R.S. ‘Human Relations & Organisational Behaviour’, Macmillan India Ltd., New Delhi,
1997.
3. Ratna Sen , ‘Industrial Relations in India’, Shifting Paradigms, Macmillan India Ltd., New Delhi,
2003.
4. Srivastava, ‘Industrial Relations and Labour laws’, Vikas 4 th edition , 2000.
5. C.S.Venkata Ratnam, ‘Globalisation and Labour Management Relations’, Response Books, 2001.
vii
CONTENTS
UNIT I
INDUSTRIAL RELATIONS
1.1 INTRODUCTION 1
1.2 CONCEPT OF INDUSTRIAL RELATIONS 1
1.3 TRADE UNION AND ITS IMPORTANCE 13
1.4 TREND IN NUMBER OF REPORTING
FACTORIES – EMPLOYMENT 13
1.5 TRADE UNION – CONCEPT 15
1.5.1 A few commonly cited definitions trade union are 15
1.5.2 General Features of Trade Unions 16
1.5.3 Functions of Trade Unions 19
1.6 GROWTH AND DEVELOPMENT OF THE
TRADE UNION MOVEMENT 20
1.6.1 Social Welfare period, from 1875 to 1918 21
1.6.2 Early Trade Union period, from 1918 to 1924 22
1.6.3 Left-wing Trade Unionism period, from 1924 to 1934 23
1.6.4 Trade Unions’ Unity period - 1935 to 1938 23
1.6.5 Second World War period - 1939 to 1945 23
1.6.6 Post – independence period - 1947 to 2000 24
1.7 FUNCTIONS OF TRADE UNIONS 25
1.8 FUNCTIONS OF TRADE UNIONS IN INDIA 26
1.9 TYPES AND STRUCTURE OF TRADE UNIONS 29
1.9.1 The Union Classified According to Purpose 29
1.9.2 Union Classified on the Basis of Membership Structure 31
1.10 CRAFTS VERSUS INDUSTRIAL UNIONS 33
1.11 ALL INDIA CENTRAL COUNCIL OF TRADE UNIONS (AICCTU) 34
1.11.1 Aims and Objectives 35
1.12 CODES OF CONDUCT – TRADE UNIONS 36
1.12.1 Labour conditions in India 37
1.12.2 The possible effects of CCC 38
1.12.3 General conclusions 39
1.12.4 About every meeting some distinct remarks were made 39
ix
1.13 THE INDIA COMMITTEE OF THE NETHERLANDS (ICN) 42
1.13.1 Organisation 42
1.13.2 Awareness Raising 43
1.13.3 Campaigns 43
1.13.4 Social labels and codes of conduct 43
1.13.5 Co-operation 44
1.14 CONCLUSION 44
UNIT II
INDUSTRIAL CONFLICTS
2.1 INTRODUCTION 45
2.2 INDUSTRIAL DISPUTE 45
2.3 CERTAIN ASPECTS OF INDUSTRIAL DISPUTES
ARE DISCUSSED AS BELOW 46
2.4 GOVERNMENT MACHINERY TO RESOLVE
INDUSTRIAL DISPUTES 48
2.4.1 Introduction 48
2.4.2 A. Conciliation 50
2.4.3 B. Arbitration 54
2.4.4 C. Adjudication 55
2.5 MEDIATION 59
2.5.1 Kinds of Mediator 59
2.6 CONCILIATION 60
2.6.1 Qualities of Conciliator 61
2.6.2 Role of the Conciliator 62
2.6.3 Sequential Pattern of Conciliation 64
2.7 ARBITRATION 66
2.7.1 Concept 66
2.7.2 Types of Arbitration 67
2.8 REFERENCE OF DISPUTE TO ARBITRATION UNDER
INDUSTRIAL DISPUTES ACT, 1947 68
2.8.1 Qualification of Arbitrators 69
2.8.2 Procedure for Investigation 69
2.8.3 Submission of Award 70
2.8.4 Criticism of Compulsory Arbitration 70
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2.8.5 National Arbitration Promotion Board 71
2.9 ADJUDICATION 71
2.9.1 Types of Adjudication 71
2.10 INDUSTRIAL TRIBUNALS 73
2.10.1 Constitution 74
2.10.2 Jurisdiction 74
2.10.3 National Tribunals 75
2.11 MODEL PRINCIPLES FOR REFERENCE OF DISPUTES
TO ADJUDICATION 75
2.12 COMMENCEMENT AND CONCLUSION OF
PROCEEDINGS 76
2.13 Central Industrial Relations Machinery in India 76
UNIT III
LABOUR WELFARE
3.1 INTRODUCTION 79
3.2 WELFARE AND WORKING CONDITIONS 80
3.3 IMPORTANCE OF LABOUR WELFARE 80
3.3.1 A – Labour 81
3.3.2 B –Training 82
3.3.3 C – Employment 88
3.3.4 D - Special Employment Scheme 88
3.4 WELFARE MEASURES – VOLUNTARY 88
3.5 STATUATORY WELFARE MEASURES 90
3.6 NON-STATUTORY WELFARE MEASURES 94
3.6.1 Non-statutory Welfare in Indian Industry: Some Examples 94
3.6.2 Comments on Non-Statutory Welfare 94
3.6.3 Non-Statutory Welfare: A Model 95
3.7 WORK ENVIRONMENT 98
3.7.1 Arousal Hypothesis 100
3.8 LABOUR WELFARE FUNDS 101
3.8.1 Tripartite Labour Welfare Fund Advisory Committee 101
3.8.2 Conclusion 103
3.9 WORKER’S EDUCATION AND TRAINING SCHEMES 104
3.9.1 Worker’s Education: Concept 104
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3.9.2 Objective of Workers’ Education 105
3.9.3 Techniques of Workers Education 106
3.9.4 Workers’ Education in India 106
3.9.5 The Scheme for Workers’ Education 107
3.9.6 Three Levels of Workers’ Education 108
3.9.7 Special Category Programmes 109
3.10 WORKERS’ TRAINING: CONCEPT 111
3.10.1 Training Schemes of DGET 112
3.11 EVALUATION OF THE TRAINING SCHEMES 116
UNIT – IV
INDUSTRIAL SAFETY
4.1 INTRODUCTION 119
4.2 FEATURES OF SAFETY ORGANIZATION 120
4.3 SAFETY COMMITTEES 120
4.4 ACCIDENT PREVENTION PROGRAMME 121
4.5 ROLE OF SAFETY DIRECTOR 121
4.6 STATUTORY SAFETY PROVISIONS 121
4.7 WORKERS’ HEALTH 131
4.7.1 Statutory Health Measures 131
4.8 HAZARDOUS PROCESSES 136
4.9 STATUTORY REQUIREMENTS FOR HAZARDOUS
MANUFACTURING PROCESS 141
4.10 OCCUPATIONAL HAZARDS 145
4.10.1 Match and firecracker industry in Sivakasi, Tamilnadu 146
4.11 OCCUPATIONAL HEALTH PROBLEMS 146
4.11.1 Gem polishing Industry, Jaipur, Rajshtan 146
4.11.2 Hand made Carpet Weaving Industry, Mirzapur &
Bhadoi, Uttarpradesh 147
4.12 MENTAL HEALTH PROBLEMS 148
4.12.1 Slate - Stone Mines and Industry 148
4.13 NOTIFIABLE DISEASES 149
4.14 PSYCHOLOGICAL COUNSELLING 152
4.14.1 Councelling Methodology 153
4.14.2 Employment settings 154
xii
UNIT – V
WELFARE OF SPECIAL CATEGORIES
OF LABOUR
5.1 CHILD LABOUR 155
5.1.1 Constitutional Rights of a Child 155
5.2 THE CHILD LABOUR (PROHIBITION AND REGULATION)
ACT, 1986 156
5.3 INITIATIVES TOWARDS ELIMINATION OF CHILD
LABOUR – ACTION PLAN AND PRESENT STRATEGY 159
5.4 FOCUSING OF GENERAL DEVELOPMENTAL PROGRAMMES
FOR BENEFITING CHILD LABOUR 159
5.5 THE COVERAGE OF THE NCLP SCHEME HAS INCREASED
FROM 12 DISTRICTS IN 1988 TO 100 DISTRICTS IN THE
9TH PLAN TO 250 DISTRICTS DURING THE 10TH PLAN. 160
5.6 THE CONTRACT LABOUR
(REGULATION AND ABOLITION) ACT, 1970 161
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INDUSTRIAL RELATIONS AND LABOUR WELFARE
NOTES
UNIT I
INDUSTRIAL RELATIONS
Learning Objectives
After going though this unit you should be in a position to explain the following terminologies:
• Concept of Industrial Relations
• Importance of IR
• Labour Turnover
• Absenteeism
• Trade Union
• Codes of Conduct
1.1 INTRODUCTION
Industrial relations has become one of the most delicate and complex problems of
modern industrial society. Industrial progress is impossible without cooperation of labours
and harmonious relationships. Therefore, it is in the interest of all to create and maintain
good relations between employees (labour) and employers (management).
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a group of individuals)
is (are) engaged”. By “relations” we mean “the relationships that exist within the industry
between the employer and his workmen.”
The term industrial relations explain the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers within the
organizational settings. The field of industrial relations looks at the relationship between
management and workers, particularly groups of workers represented by a union. Industrial
relations are basically the interactions between employers, employees and the government,
and the institutions and associations through which such interactions are mediated.
The term industrial relations have a broad as well as a narrow outlook. Originally,
NOTES industrial relations were broadly defined to include the relationships and interactions between
employers and employees. From this perspective, industrial relations covers all aspects of
the employment relationship, including human resource management, employee relations,
and union-management (or labour) relations. Now its meaning has become more specific
and restricted. Accordingly, industrial relations pertains to the study and practice of collective
bargaining, trade unionism, and labour-management relations, while human resource
management is a separate, largely distinct field that deals with nonunion employment
relationships and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and their
employer, the relationships between employers, the relationships employers and workers
have with the organizations formed to promote their respective interests, and the relations
between those organizations, at all levels. Industrial Relations also includes the processes
through which these relationships are expressed (such as, collective bargaining, workers’
participation in decision-making, and grievance and dispute settlement), and the management
of conflict between employers, workers and trade unions, when it arises.
is called for to impart greater flexibility to the labour market and thereby encourage more
employment. NOTES
Considering the radical changes that have taken place in the domestic industrial scenario
and the labour market, the Government has decided to set up the Second National
Commission on Labour to suggest among others, rationalization of the existing laws in the
organized sector so as to make them more relevant and appropriate in the changing context
of globalization and opening up of the Indian economy.
MEANING AND DEFINITION OF INDUSTRIAL RELATION
The relationship between Employer and employee or trade unions is called Industrial
Relation. Harmonious relationship is necessary for both employers and employees to
safeguard the interests of the both the parties 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 higher
productivity. Personnel management is mainly concerned with the human relation in industry
because the main theme of personnel management is to get the work done by the human
power and it fails in its objectives if good industrial relation is maintained. In other words
good Industrial Relation means industrial peace which is necessary for better and higher
productions.
3. As the labor and management do not operate in isolations but are parts of large
NOTES system, so the study of Industrial Relation also includes vital environment issues
like technology of the workplace, country’s socio-economic and political
environment, nation’s labor policy, attitude of trade unions workers and employers.
4. Industrial Relation also involve the study of conditions conductive to the labor,
managements co-operations as well as the practices and procedures required to
elicit the desired co-operation from both the parties.
5. Industrial Relations also study the laws, rules regulations agreements, awards of
courts, customs and traditions, as well as policy framework laid down by the
governments for eliciting co-operations between labor and management. Besides
this, it makes an in-depth analysis of the interference patterns of the executive and
judiciary in the regulations of labor–managements relations.
In fact the concepts of Industrial Relations are very broad-based, drawing heavily
from a variety of discipline like social sciences, humanities, behavioral sciences, laws
etc.
Industrial Relation encompasses all such factors that influence behavior of people at
work. A few such important factors are details below:
1. Institution: It includes government, employers, trade unions, unions’ federations or
associations, government bodies, labor courts, tribunals and other organizations
which have direct or indirect impact on the industrial relations systems.
2. Characters : It aims to study the role of workers unions and employers’ federations
officials, shop stewards, industrial relations officers/ manager, mediator/conciliators
/ arbitrator, judges of labor court, tribunal etc.
3. Methods : Focus on collective bargaining, workers’ participation in the Industrial
Relation schemes, discipline procedure, grievance re-dressal machinery, dispute
settlements machinery working of closed shops, union reorganization, organizations
of protests through methods like revisions of existing rules, regulations, policies,
procedures, hearing of labor courts, tribunals etc.
4. Contents : Includes matter pertaining to employment conditions like pay, hours of
works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals
retirements etc., laws relating to such activities, regulations governing labor welfare,
social security, industrial relations, issues concerning with workers’ participation in
management, collective bargaining, etc.,
Poor Industrial Relation produces highly disquieting effects on the economic life of
the country. We may enumerate the ill-effects of poor Industrial Relations as under:
1. Multiplier effects:
Modern industry and for that matter modern economy are interdependent. Hence
although the direct loss caused due to industrial conflict in any one plant may not be
very great, the total loss caused due to its multipliers effect on the total economy is
always very great.
The healthy industrial relations are key to the progress. Their significance may be
discussed as under –
1. Uninterrupted Production
The most important benefit of industrial relations is that this ensures continuity of
production. This means, continuous employment for all from manager to workers.
The resources are fully utilized, resulting in the maximum possible production. There
An economy organized for planned production and distribution, aiming at the realization
NOTES of social justice and welfare of the massage can function effectively only in an atmosphere
of industrial peace. If the twin objectives of rapid national development and increased
social justice are to be achieved, there must be harmonious relationship between management
and labor.
The term “Industrial Relations” is different from “Human Relations”. Industrial relations
refer to the relations between the employees and the employer in an industry. Human
relations refer to a personnel-management policy to be adopted in industrial organizations
to develop a sense of belongingness in the workers improves their efficiency and treat
them as human beings and make a partner in industry.
Good industrial relations depend on a great variety of factors. Some of the more
obvious ones are listed below:
1. History of industrial relations
No enterprise can escape its good and bad history of industrial relations. A good
history is marked by harmonious relationship between management and workers. A
bad history by contrast is characterized by militant strikes and lockouts. Both types
of history have a tendency to perpetuate themselves. Once militancy is established as
a mode of operations there is a tendency for militancy to continue. Or once harmonious
relationship is established there is a tendency for harmony to continue.
2. Economic satisfaction of workers
Psychologists recognize that human needs have a certain priority. Need number one
is the basic survival need. Much of men conducted are dominated by this need. Man
works because he wants to survive. This is all the more for underdeveloped countries
where workers are still living under subsistence conditions. Hence economic satisfaction
of workers is another important prerequisite for good industrial relations.
Individualized thinking makes if imperative for the administrator to consider the entire
situation in which the affected individual is placed. Policy awareness underscores the idea
of the consistency of treatment and the precedent value of any decision which a management
takes; while expected group reaction balances what we know of human nature in groups NOTES
against an individual’s situation in the light of the policy that has been formulated and
implemented. In all these different circumstances, reality demands that all the three aspects
of the personnel viewpoint should be considered at once in terms of the past, the present
and the future. This viewpoint is held at all the levels of management from the top to the
bottom, from the top executives and staff to the line and supervisory personnel.
The staff employed in the industrial relations department should know the limitations
within which it has to function. The industrial relations director generally has several assistants
who help him to perform his functions effectively, and he usually reports directly to the
president or chairman of the board of directors of an organization.
Trade unions are a part of society and as such, have to take into consideration the
national integration as well. Some important social responsibilities of trade unions include:
• promoting and maintaining national integration by reducing the number of industrial
disputes
• incorporating a sense of corporate social responsibility in workers
• achieving industrial peace
NB: 1. Workers are defined to include all persons employed directly or through any
agency, whether for wages or not, in any manufacturing process or in cleaning any part of
machinery or premises used for manufacturing process or in any other kind of work,
incidental to, or connected with the manufacturing process or the subject of manufacturing
process. Labour engaged in repair and maintenance or production of fixed assets for
factory’s own use or labour employed for generating electricity, etc. is also included.
2. Employees include all workers and persons receiving wage/salary and holding
supervisory or managerial positions engaged in administrative office, store keeping NOTES
and welfare sections, sales department as also those engaged in purchase of raw
materials, etc or purchase of fixed assets for the factory and watch and ward staff.
The classic definition of trade union was given by Sidney and Beatrice Webb states
that it is “a continuous association of wage earners for the purpose of maintaining and
improving conditions of their working lives.” In their time, the brand to trade union
organizations that existed was small and local representating a specific skill or trade. The
definition refers to a “permanent organization” of workers rather than one which is created
for a particular purpose and died later on. The term “wage earner” in its purview includes
“salary –earns.” The objectives of such association is to maintain and improve the working
conditions of its members
Dale Yoder, “A trade union is a continuous association of wage-earners for the purpose
maintaining of improving the conditions of their working lives.”
However, for the sake of discussion, these definitions may sound good, but a legalistic
definition of trade union is desirable in understanding its concept as prevalent in a particular
society. This is because in the case of industrial dispute or on all union matter, on has to go
by what the letter of laws says and not by what people perceive the union to be.
The British Trade Union Act views it thus, “A trade union is a combination with the
main objective of regulating the relation between workmen and masters or between
workmen and workmen or between masters and masters for imposing of restrictive
conditions on the conduct of any trade or business and also provision of benefits to members
In the words of India Trade Union Act, 1926, “A trade union is any combination,
whether temporary or permanent, formed primarily for the purpose of regulating the relations
between workmen and employers, or between workmen and workmen, between employees
and employers, or for imposing restrictive conditions on the conduct of any trade or business,
and includes any federation of two or more trade unions.”
This definition is defective because it allows even non-workers to form a trade union;
NOTES also it is narrow and vague about the aims and purpose of forming such a union. Yet the
definition with a clear and legal wording is certainly important in relation to getting a trade
union registered with the Registrar of Trade Unions and when legal interpretation of trade
union is required in the case of industrial disputes etc.
In the erstwhile USSR, they were a mass non-party public organization which units
on a voluntary basis, the workers and other employees of all occupations. They are really NOTES
the masses of workers and others employees around the party which are mobilized for the
struggle to build a communist society.”
In USA, theses organizations are combinations of all persons in a given trade with the
purpose of demanding and securing for each and all of them a definite minimum standard
of wages, hours and conditions of works.
It may , however , be noted that all similar organizations cannot truly be regarded as
trade unions, because the associations of employers are concerned with influencing the
terms of purchase of services in favour of their members which they need for performing
particular tasks. The associations of professional persons, too cannot be regarded as true
trade unions because their main objectives are to improve the training and education of
their members. Further, such associations include the self-employed as well as the employees.
The trade union should, therefore, be regarded as an association only of workers or
employees.
Thinkers like the Webbs, Cunnison and others do not recognize the employers’
associations and professional bodies as trade unions because they differ fundamentally
from the workers’ organizations. They are of the view that if professional associations are
treated as trade unions, a similar problem may arise for associations of sellers of services,
like traveling and commission agents, bankers, insurance and property brokers and hotel-
owners, and to include them within the fold of the trade unions would be cumbersome and
undesirable.
Sometimes, workers allow their employers to join their unions and vice versa. Such
organization may be called trade combinations or mixed combinations as provided in the
statutory provisions in Chile, France, Hungary and Romania. In India, such organizations
have been referred to as quasi-unions.
(2) Labour unions are relatively permanent association of workers and are not temporary
or casual: They persist throughout the years and conceive of their purpose as on
which is not merely immediate but continues. They do not expect to attain their
objectives in a day because they anticipate and contemplate continuing stream of
additional objectives to be adopted from time to time. The most frequently used
techniques by trade union is collective bargaining by which is meant the subordination
of individual employer-employee relationships, in so far as the latter involve
determination of wages and other conditions of employment-agreements affecting
all workers in a group, arrived at by means of bargaining carried on not by workers
themselves but by their union representatives.
(3) A Trade union is an association of workers who are engaged in securing economic
benefits for its members: In other words it is essentially “a cooperative labour
marketing association.” Its purpose is to secure control of the supply of labour in
one or more markets and to maintain that control as a means of fixing the price of
NOTES labour as well as the conditions under which it works. But this does not mean that
the advancement of the economic interests of its members is the sole purpose of a
trade union. As they also try to advance the social political and cultural complex co
economic, legal, ethical and social problems, which can be understood and met
only by knowing the facts and genesis of the viewpoint of organized labour in all its
diversity, contradictions and shifting character and by considering this viewpoint in
relation to developing social contradictions and social traditions. The trade unions
of to-day are plurist in character and by so slowly changing environment. The
traditional concept of trade union functions which was to defend the workers’
rights and interests against the employers and the state has now changed and been
replaced by a new approach to its functions, namely:
(i) Protection of workers and provision for their security;
(ii) Improving the wages, conditions of work and standards of living;
(iii) Raising the status of the workers as a part of industry and citizen of society;
and
(iv) Contributing in nation’s socio-economic development
(4) The character of trade unions has been constantly changing: The changes in
technology and system of production create fresh problems. Trade unions change
their methods and their working to adjust themselves to changing circumstances.
Therefore, there has been no finality about trade unions their working and their
methods. They have gradually evolved and have now come to occupy an important
place in modern industrial order. “From criminal and illegal associations, they have
now become legalized and recognized institutions; from institutions which were
only very small bodies, they have how become gigantic associations; form institutions
that were primarily interested in the advancement of the cause of their own
membership, they have now become institutions which are interested in the social,
cultural and political development of the country”. The trade unions, thus, have
made remarkable progress since their inception
(5) The origin and growth of trade unions have been i8nfluenced by a number of
ideologies: The socio economic and even political movements have influenced
trade unions in one or the other way. The Marx and Engles’ Theory of Class War
influenced trade unionism in a number of ways. Their theory of class-conflict and
dialectical materialism created a class of trade unionists who regarded labour
organization as “absolutely essential for bringing about a revolutionary and
fundamental change in the social order.” The proletariat must overthrow the present
bourgeois class, capture state power and usher in a classless society because the
capitalistic class has long defensive, namely, to fight for the maintenance of the
existing wages, to demand (relatively) higher wages, and the betterment of the
conditions of work.
India, too has accepted “the creation of industry democracy as a prerequisite of the
establishment of a socialist society. Lenin characterized the trade union as “an educational
organization, a school administration, a school of economic management, a school of
communism.” In all socialist countries, it has been accepted that the trade unions have to
take an active part in preparing laws concerning labour, production, the way of life, culture
and the implementation of these laws. There is no doubt there is a class conflict, but it is
sought to be met through equality and collective agreements and joint consultations. The
state recognizes the rights of the people to work, rest and leisure and maintenance in old
age, sickness and disability, education and equal pay of equal work. The workers and
managers have the same common purpose, namely, to promote the interests of the socialist
state with which their own interest are bound up.
Prof. Ghosh observers, Although modern unions’ interest is the production problem
of the industry or their concern with the broader social affairs like employment of price
stabilization, may be explained as derivations from their primary interest-maintaining or
improving or improving the conditions of their members’ working lives it cannot explain the
keenness with which many of the modern trade unions in different countries demand not
only the right to be consulted in production problems and workers’ welfare arrangements
by the management, but also a direct share in the management itself. Demand for industrial
democracy has always influenced a section of the working class, but, in the fifties of the
20th century the demand has gained particular intensity in the trade union circles of a large
numbers of countries, including some underdeveloped ones.
In fine, it can be said that the modern trade union retains four characteristics from its
early origins:
(i) It is economically –oriented
(ii) It is an instrument of defense.
(iii) It implies class distinction
(iv) It is an outcome of an individualistic society.
The functions of modern trade unions are wide and more comprehensive than those
of their forerunners. Generally speaking, these functions have been termed as – (i) militant
of protection functions, and (ii) fraternal, ministrant of positive functions. The former functions
aim at securing better conditions of work and employment for members through militant
NOTES activities such as strikes, gherao, etc. if there is failure of collective bargaining. The latter
functions provide benefits to their members and support to them during strikes/lockouts or
during periods so temporary unemployment by giving them financial support out of the
funds raised with their contributions.
One author has categorized the functions of trade union as intra-mural and extra-
mural functions. The former include the welfare schemes of the unions within factory premises
to improve workers’ conditions of employment; regulation of hours of work, and provision
of rest intervals, adequate wages, sanitation, safety and security; continuity of employment,
etc. For performing theses functions, collective bargaining, negotiations and resort to a
strike/lockout may be adopted. The latter include welfare schemes carried on with a view
to help workers when in need of such assistance (medical of financial) during casualties,
provision of education, recreational and housing facilities; provision of social and religious
benefits, including payment of expenses of funeral or religious ceremonies for the deceased
members of their dependants. All theses measures are designed to inculcate the spirit of
cooperation among the workers.
According to Samuel Gompers, “Trade unions were born of the necessity of workers
to protect and defend themselves from encroachment, injustice, and protect the workers
in their inalienable right to higher and better life; to protect them, not only as equal before
the law, but also in their rights to the product of labour, to protect their lives, their limbs,
their health, the homes, their firesides, their liberties as men, as workers, as citizens, to
overcome and conquer prejudice and antagonism, to secure them the fight to life, and the
opportunity to maintain the result of their brain and brawn, and the civilization of which
they are the founders and the mainstay.
The growth and development of the labour movement, and for that part of the trade
unions, in India, can be divided into following periods, each of them revealing different
tendencies that mark it from others.
1. Social Welfare period, from 1875 to 1918
2. Early Trade Union period, from 1918 to 1924
3. Left-wing Trade Unionism period, from 1924 to 1934
4. Trade Unions’ Unity period from 1935 to 1938
5. Second World War period from 1939 to 1945
6. Post – independence period from 1947 to date
These methods reflect the influence of leaders like Naryan Meghajee Lokhanday,
Shapurjee Bengali, S.N.Banerjee, and others who were all political moderates and law
abiding persons. They were rather social workers desirous to serve the society through
amelioration. “With theses characteristics,” writes Punekar, “the labour movement could
hardly tackle such problems as excessive hours of work, few holiday, irregular payment of
wages, incompetency of mill managers, inadequate fencing of machinery and the ill-ventilated
and filthy sate of many work places.”
(2) The movement depended greatly on external philanthropy. “Philanthropic agitation
was the fore-runner of labour movement in India and having originated in
philanthropy its motive force was sympathy rather than justice…. Born of
philanthropy, it was a movement for the workers rather than by the workers.”
(3) Most of the organizations were unstable and of loose type, as they lacked definite
aims and constitution. Once the particular grievance was settled the association
would disband.
(4) There was little conception of permanent trade union membership, the payment
NOTES of dues or organized collective bargaining. About the Bombay mill hands’
Association, Dutt observed, “The Association has no existence as an organized
body, having no roll or membership, no funds no rule…
(5) The movement developed mostly among the educated class of workers such as
the postal clerks and railway employees. It, however, did not make much progress
in organized industries like textiles, mining and plantations.
(6) The early leadership was provided by three types of persons. First, intellectuals
such as lawyers, reformers, editors, teachers and preachers, who readily came
forwarded to organize and lead the workers. Second, the careerists, who saw in
the needs of workers opportunities for furthering their own ends, jumped in
masquerading as labour leaders. The third group from M.Vardarajulu Naidu,
B.Shiv Rao, Annie Basant and B.G.Talak, N.M.Joshi.
The year 1918 was an important one for the Indian trade union movement. “It market
the start of a new era, an era of growth and one in which the leadership of the trade unions
was to pass from the hands of the social workers into the hands of the politicians. The
movement could take permanent roots in the Indian soil only after the close of World War
I. This situation was due to : (i) The industrial unrest that few up as a result of grave
economic difficulties created by war. The rising cost of leaving prompted the workers to
demand reasonable wages for which purpose they united to take resort to collective action.
(ii) The Swaraj movement intensified the movement, widened the gulf between the employees
and te employees and brought about a mass awakening among the workers demanding
racial equality with their British employers. The new consciousness produced restlessness,
discontent, a spirit of defiance as well as new ideal and aspirations. (iii) the success of the
Russian Revolution of 1971 created a revolutionary wave of ideas and a new self-respect
and enlightenment, and added momentum to the feeling of class-consciousness among
labourers. (iv) The establishment of the I.L.O., in 1919, gave dignity to the working class
and also an opportunity to send a delegation to the annual conference of this body. It is
was from this body that labour movement in various countries derived their inspiration,
help and guidance. (v) Immediately after the war many Indian soldiers (who previously
belonged to the working class) in the British army were demobilized and forced into the
labour market. Theses ex-soldiers who had seen workers and the working conditions in
Europe found that Western workers enjoyed better conditions of living because of their
greater solidarity and of more opportunities available to them but Indian workers were
denied these opportunities. By 1920, a large class of genuine proletariat developed. Hence,
theses were new opportunities for the creation of trade unions. (vi) The non-co-operative
movement of Gandhiji during 1920-21 and his support to the demand of industrial labour
also greatly influenced the working class movement.
In mid-thirties of the 20th century the state of divided labour movement was natural
thought undesirable and soon after the first split, attempts at trade union unity began to be
made through the efforts of the Roy Group on the basis of ‘a platform of unity’. The
imitative taken by All-India Railwaymen’s Federation (s neutral body) had shown fruitful
results. This Federation in its conference at Bombay, formed a Trade Union Unity committee
in 1932. The Committee adopted the following “platform of unity”. “A trade union is an
orange of class-struggle; its basis task is to organize the workers for advancing and defending
their rights and interests. Negotiation, representations and other methods of collective
bargaining must remain an integral part of the trade union activates.”
It also laid down certain broad conclusions agreeable to both wings of labour-the
AITUF and the INTUC. The final decision was taken in Delhi in 1933, when National
Federation of Labour (NFL) was formed to facilitate the attempt towards unity. The AITUF
and the railway unions amalgamated themselves with NFL under the name of the National
Trade Union Federation (NTUF). The AITUC and the RTUC, however, remained aloof
from theses efforts.
The Second World War, which broke out in September 1939, created new strains in
the united trade union movement. These strains arose because of the different political
factions in the AITUC related in different ways to the role of India as a protagonist in the
war. A large group of trade unionists led by the members of the Radical Democratic Party
(such as M.N.Roy, J.Mehra, Miss Maniben Kera and V.B.Karnik) was of the opinion that
the AITUC should support and participate in the anti-fascist war irrespective of the acts of
omission and commission of the British government. An equally large number (supported
by S.C. Bose, and others) were opposed to that view on the ground that it was an imperialist
war of Great Britain with which Indian had no unions with a membership of 3,00,000 and
formed a new central federation known as the Indian Federation of Labour. In 1942, his
As pointed out earlier, when attempts to restructure the AITUC failed, those believing
in the aims and ideals other than those of the AITUC separated from the organization and
established the Indian National Trade Union Congress (INTUC) in May, 1947. the reason
for forming a new union was expressed in the communication of G.L. Nada (the Secretary
of the H.M.S.S.) addressed to all the congress-minded trade unionists. It reads:
“Congressmen in general and particularly those working in the field of labour, have found
it very difficult to co-operate any longer with the AITUC which has repeatedly been adopting
a course completely disregarding, or even in opposition to the declared policy and advice
of the Indian National Congress.”
The Hindustan Mazdoor Sevak Sangh convened a conference in New Delhi on May
3 and 4, 1947. a resolution was adopted to set up another central organization. On
September 25, 1947, the Working Committee of the Indian National Congress
recommended to all “Congressmen to get those unions, which they organized and of which
they were the members, affiliated to the newly formed Indian National Trade Union.” On
January 20, 1984, Sardar Vallabhbhai Patel, while addressing a labour rally at Bombay,
exhorted the workers to do away with the destructive leadership of the leftists who had
been exploiting them for their own political ends and asked them to join the INTUC. The
Creation of the INTUC was a confession both of the failure to create favorable conditions
in the AITUC, and of the government and Congress party impatient with the leadership of
the AITUC which had come completely under the domination of the communists.
The INTUC was formed by Hindustan Mazdoor Sevak Sangh, a creation of the
Pro-Gandhi wing in the Congress, who were associated with the Textile Labour Association
of Ahmedabad. The ATLA became the guiding and driving force behind the INTUC. It
also supplied 55,000 of the INTUC’s intial membership of 575,000. the long experience
of the ATLA in trade union affairs also resulted in a large proportion of the INTUC leaders
coming from Ahmedabad. As Oranti puts it, “Ideologically as well as administratively the
bloodstream of the INTUC flows from Ahmedabad. Here the ATLA provides it with a
strong membership nucleus, a rich treasury, and a cadre with a long experience in labour
work. The INTUC itself joined the International Confederation of Free Trade Unions
(ICFTU) as an affiliate. The INTUC had at the time of its inception 200 unions affiliated
with it with a membership of 575,000. it grew rapidly in strength and it had the claim of
The INTUC was founded for establishing “an order of society which is free from
hindrances to al-round development of its individual members which fosters the growth of
human personality in all its aspects and which goes to the utmost limit in progressively
eliminating social, political and economic exploitation and inequality, the profit motive and
economic activity and organization of society and the anti-social concentration of power in
any form.”
Since the beginning the INTUC shared and supported the political outlook of the
Indian National Congress its popular image was identified with that of the Congress, and
hence, its policies are subject to directives of the Congress party. The constitution of the
INTUC emphasizes democratic and peaceful methods, which are in harmony with the
tradition, culture and aspirations of the people.
The functions of modern trade unions are wide and more comprehensive than those
of their forerunners. Generally speaking, these functions have been termed as –(i) militant
or protection function, 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, gherao, etc. if there is a failure of collective bargaining. The latter
functions provide benefits to their members and support to them during strikes/lockouts or
during periods of temporary unemployment by giving them financial support out of the
funds raised with their contributions.
One author has categorized the functions of trade union as intra-mural and extra-
mural functions. The former include the welfare schemes of the unions within factory
premised to improve workers’ conditions of employment; regulation of hours of work, and
provision of rest intervals, adequate wages, sanitation, safety and security; continuity of
employment, etc. For performing these functions, collective bargaining, negotiations and
resort to a strike/lockout may be adopted. The latter include welfare schemes carried on
with a view to help workers when in need of such assistance (medical or financial) during
casualties, provision of education, recreational and housing facilities; provision of social
and religious benefits, including payment of expenses of funeral or religious ceremonies for
the deceased members or their dependents. 9 All these measures are designed to inculcate
the spirit of cooperation among the workers.
According to Samuel Gompers, “Trade unions were born of the necessity of workers
NOTES to protect and defend themselves from encroachment, injustice, and protect the workers
in their inalienable right to higher and better life; to protect them, not only as equal before
the law, but also in their rights to the product of labour, to protect their lives, their limbs,
their health, their homes, their firesides, their liberties as men, as workers, as citizen, to
overcome and conquer prejudice and antagonism, to secure them the right to life, and the
opportunity to maintain that result of their brain and brawn, and the civilization of which
they are the founders and the mainstay. 10
Before we give a consolidated picture of the functions/objectives of a trade union, it
would be useful to glance at their functions in some countries.
1.8 FUNCTIONS OF TRADE UNIONS IN INDIA
As per the Indian Trade Union Act, 1926, the primary functions of a trade union are
to protect and promote the interests of the workers and the conditions of their employment.
They can also have other objectives, which are not inconsistent with this primary purpose
or opposed to any law. In India, trade unions generally undertake the following functions:
(i) To achieve higher wages and better working and living conditions for the members.
(ii) To acquire control over industry by workers.
(iii) To minimize the helplessness of the individual workers by making them stand-up
unitedly and increasing their resistance power through collective bargaining;
protecting the members against victimization and injustice by employers.
(iv) To raise the status of the workers as partners in industry and citizens of society by
demanding an increasing share for them in the management of industrial enterprises.
(v) To generate self-confidence among the workers.
(vi) To encourage sincerity and discipline among workers.
(vii) To take up welfare measures for improving the morale of the workers.
The National Commission on Labour has underscored certain basic functions to which
trade unions have to pay greater attention such as:
i. To secure fair wages for workers.
ii. To safeguard the security or tenure and improve conditions of service.
iii. To enlarge opportunities for promotion and training.
iv. To improve working and living conditions.
v. To provide for educational, cultural and recreational facilities.
vi. To cooperate and facilitate technological advancement by broadening the
understanding of workers in the issues involved in their jobs.
vii. To promote identity of interests of the workers with their industry.
viii. To offer responsive cooperation in improving levels of production and productivity,
discipline and high standards of quality.
ix. To promote individual and collective welfare.
Besides these basic functions of trade unions, the Commission enjoined the following
responsibilities upon the unions: NOTES
(i) Promotion of national integration.
(ii) Generally, influencing the socio-economic policies of the community through
the active participation in their formulation at various levels.
(iii) Instilling in their members a sense of responsibility to industry and the community.
The First Five-Year-Plan while spelling our the role of trade unions emphasized that
they should:
(a) Present plans to workers so as to create enthusiasm among them for the plans.
(b) Exercise the utmost restraint in regard to work stoppage.
(c) formulate wage demands which are attuned to the requirements of economic
development and are in keeping with considerations of social justice.
(d) Assume greater responsibility for the success of the productive effort. 20
A responsible trade union should cooperate in all crucial areas so that the tempo of
growth, particularly in the industrial sector, can be speeded up. Thus, trade unions should
maintain:
(A) A reasonable degree of peace in industry: These conditions by promoting an
uninterrupted flow of industrial output, adds to the national income and creates
the needed investment climate. A responsible union balances the short-term
worker’s gain with their long-run gain originating from a stable growth of the
industry where they are employed.
(B) Supporting technological change, i.e: to cooperate in the introduction of new
technology, new processes, new managerial techniques etc. These technological
changes by promoting an increase in the productivity of the concern also boost its
efficiency and effectiveness.
(C) Accept a growth-oriented wage payment system: The adoption of growth-
oriented wage system enables the management to utilize workers untapped
potential.
By extending co-operation in the above areas, the trade unions will be able to promote
industrial growth, in particular and economic growth, in general. The improved productivity
brought about by the promotion of technological changes and better utilization of labour
would generate higher profits which can be ploughed back into industry.
In fine, we can say that the role and functions of trade unions varies from country to
country depending on its socio-economic development, political system, extent of trade
unionism, extent of wage employment etc. In capitalist countries, they are defensive in
character. There is generally some antagonism between the workers and the employers on
basic issues relating to wage participation. In democratic countries, besides being defensive,
the trade unions also assist the Government in executing their plans for the well-being of
the working class. In erstwhile communist countries, they were dependent on the state for
NOTES their functioning.
The trade unions in countries like France and the Netherlands are statutorily required
to be consulted on any draft legislation dealing with economic and social issues. In Sweden,
unions participated at the highest level of planning. They are responsible for the
implementation of labour and social security legislation. In Germany and Yugoslavia, trade
unions take part in management under “co-determination”. In the USA and Australia, the
unions are not very formal with the Government. In Britain, the role of the trade union as a
partner in social control is played in an informal manner.
Here the main point is to emphasize the fact that trade unions change their outlook,
functions and practices to suit the prevailing conditions.
That is why it has been said: “The trade unions of to-day are not content with protecting
and improving wages and conditions of labour; they concern themselves with all matters
by which the workers are likely to be affected, whether as producers or consumers, whether
as units of industrial manpower or as citizens. 21
In India, the role of trade unions has been perceived differently by the different national
unions. For instance, according to the All India Trade Union Congress (AITUC), “a trade
union is an organization of the working class in its struggle against the all-pervading power
of the capitalist class. It has to struggle with employers … in order to secure better living
and working conditions and to serve the interests of the working class in the given capitalist
society, to mitigate the burden of exploitation. In its struggle, it used economic, political,
moral and ideological means to attain its demands and objectives. The ultimate aim of the
trade union movement is to abolish capitalism and wage slavery and establish socialism in
which not only the working class but all layers of society are freed from exploitation.”22
The Indian National Trade Union Congress (INTUC) is of the view that union should:
(i) Serve their members and cater to the many-sided requirements of workers as
responsible citizens.
(ii) Plan for sustaining the interests of their members during times of industrial
peace by organizing intellectual, social, cultural and recreational activities,
consumer cooperatives, credit cooperatives and co-operative housing societies.
(iii) Educate the rank and file so that the traditional agitational role should gradually
be transformed into one of understanding. The unions should be given an
effective role in the affairs of the industry.”23
The Hind Mazdoor Sabha (HMS) has pointed out that “if trade unions allow themselves
to be diverted from their traditional role in the name of requirements of economic
development, the weaker and exploited sections of the working class will find themselves
terrorized and deprived of safeguards to an even greater extent.”24
The principal function of the trade union is the regulation of relations between the
employers (management) and employees (workmen), and also the provision of benefit to NOTES
its members. In this vein, it carries out the following objectives:
(1) To organization of all eligible members under one platform.
(2) To represent the workers to management in cases of disputes or differences.
(3) To enter in the collective bargaining and other agreement on behalf of workers.
(4) To represent workers on various participative forums.
(5) To undertake various activities for the welfare of its members.
(6) To provide benefit to members in case of sickness, old age, trade disputes,
unemployment, litigation and also to provide funeral expenses.
(7) Furtherance of political objectives.
(8) To participate in the work of any association that furthers the activities of trade
unions and its members.
(9) To arrange the necessary activities for the social and moral upliftment of workers.
(10) To arrange for printing or publishing facilities for the benefit of workers.
It is to be noted that the functions undertaken by the trade unions are not static but
changes with the changes in the economic and social set up of the country. The institutional
set-up of the society in which they operate also determine the functions of the unions. In
the initial stages, they undertake functions which are primarily concerned with safeguarding
the member’s interests but with the passage of time and the pace of industrialization, change
in technology and the system of production create new complex problems, the functions
have been widened to meet the changing circumstances. According to Daker, “Unions aim
at securing economic security and betterment, industrial and social status, and the role as
political institution.”
Ever since the dawn of industrialization there has emerged a wide variety of unions
across the globe. These are classed under two heads.
Under this heads, normally two types of union exist. They are;
They neither seek comprehensive change nor wish to destroy the existing social,
economic or political structure of the State. They desire only to modify these in accordance
with what their members consider to be current modes in society. For example, they may
wish to increase labour’s share in the increased production or they may aim at improving
working conditions by enforcing safety measures. They may try to generate increased
purchasing power by providing for workers’ various cooperative ventures, insurance
associations and educational programmes. They generally seek to dignify labour by forcing
upon the public and its leaders a recognition of the importance of labour in modern society.
All these objectives, they believe, can be attained without any extensive change in the
present economic, social and political institutions. In the USA, the unions affiliated with
A.F.L. (American Federation of Labour) and the C.I.O. (Congress for Industrial
Organization) are predominantly of this type.
They reformist unions have been sub-divided by Hoxie according to the objectives,
into Business Unionism and Uplift Unionism 71 which are discussed here.
a. Business Unionism is that form of labour cooperation in which employees enter
the successful business relationships with employers. In other words, business
unions are those that are maintained primarily to represent workers in collective
bargaining with their employers. They have generally been craft-conscious rather
than class-conscious. They are distinctively reformist which try to bring economic
advantages to their members, including increased wages and improved working
conditions. They use peaceful means to attain these ends and depend primarily
upon collective bargaining for this purpose. Such unions favour voluntary arbitration,
deprecate strikes and avoid political action, but when they serve their interests,
they may use the weapon of strike and resort to political action also.
b. Friendly or Uplift Unionism is idealistic in nature and aspires to elevate the moral,
intellectual and social life of workers and advocates idealistic plans for social
regeneration. It emphasizes such other considerations as education, health,
insurance and benefits. It is not craft-conscious but interest conscious of the
workers. It is conservative and law-abiding and employs the method of collective
bargaining, but emphasizes the need of mutual insurance and “drifts easily into
political action, advocacy of cooperative enterprises, profit-sharing and other
idealistic plans.”
hese unions aim at destroying the present structure completely and replacing it with
new and different institutions according to the ideals that are regarded as preferable. The
revolutionary labour unionism generally seeks to destroy capitalist industry, to abolish the
wage system and private property, to put and end to society based primarily upon competition NOTES
and individual rights, and to substitute some other system, generally socialist and communist.
It is extremely class-conscious rather than trade-conscious. In the USA, the most common
example of this type of unionism is the Industrial workers of the World (I.W.W.).
The revolutionary unionism is also of two types, namely, anarchist and political.
(i) Anarchist Unions are those unions which try to destroy the existing economic
system by revolutionary means.
(ii) Political Unions are those which gain power through political action, the enactment
of laws eliminating the power of capital and capitalists, redistributing wealth and
giving effective power to workers.
Dr. Hoxie also enumerates a third type of union, namely, the predatory union, and the
guerrilla union. Both these he had referred to as labour racketeering.
(iii) Predatory unionism does not subscribe to any ideology. It can adopt any method
which will deliver the goods and it sticks at nothing. Its distinguishing characteristic
is the ruthless pursuit of the matter in hand by whatever means seem most
appropriate at the time, regardless of ethical and legal codes or the affect upon
those outside its own membership. It is dominated by gangsters and is “a tool for
the enrichment of its leaders. “ It may employ business, friendly or revolutionary
methods for the achievement of its goals.
(a) A hold-up union represents a combination of unscrupulous business agents of a labour
organization with equally unscrupulous employers to thrust exorbitant prices upon
customers. When a craft is sufficiently organized so as virtually to control the local
market, the bosses in an agreement with employers set excessive prices for the services
they render to the public. The workers generally receive only a small part of the increase
in charges, for their bosses and employers retain the larger portion.
(b) A guerrilla union does not believe in cooperation with employers. It aims at exploiting
whatever and whatsoever it can. It is generally not democratic but boss-ridden. Its
leaders are unscrupulous, ruthless and irresponsible, and they frequently make use of
all sorts of violence in their programmes of exploitation. This type of unionism mostly
resorts to terrorism in its efforts to enforce its demands.
A fourth type of union has also been added by the followers of Prof. Hoxie, namely,
the dependent union. The existence of this type of union is dependent wholly or party on
the other unions or the employees.
The unions have also been classified according to variations in the composition of
their members. On this basis, four types of unions have been recognized, namely, craft
unions, staff unions, industrial unions, and general unions.
Such organizations are vertical in character because they enroll all types of workers
who are engaged in preparing raw materials for consumption. NOTES
1.9.2.4 General Union
It is that organization which covers various industries and labourers having different
types of skills. The objectives of these unions are all embarrassing in character. They have
numerical superiority, for they are open to all classes of workers; and this is the source of
their strength. From the point of view of solidarity, this type is ideal. The Jamshedpur
Labour Union, Jamshedpur, the National Union of Municipal and General workers, the
Transport and General Workers’ Union in the UK are examples of this type of unions.
There has been a controversy regarding the union type – whether craft unions or
industrial unions should be developed.
In the early days of the trade union movement, craft unions in the UK (New Model
Union) and the IFL in the USA were developed, for in that period of instability, these
provided a firmer basis. The crafts are compact groups; long training and apprenticeship
develop cohesiveness in attitude, outlook and perception of problems. These unions enjoy
many advantages. Some of these are:
(i) “It may give the most stable relationship; it may give the best service in securing
desirable jobs; it is most likely to provide the needed training through apprenticeship
and to control supply of labour.”
(ii) Such a union, comprising skilled workers, has a great striking power and therefore,
a strong bargaining power; and consequently enjoys many advantages. e.g., help
wage-earners to achieve a higher status and easier recognition.
On the other hand, a craft union suffers from certain weaknesses. These are:
(a) It can be easily broken by employers’ joint action because of different agreements
expiring at different times. The employers may play one union against the other.
(b) With rapidly expanding technology, the craft unions are being gradually displaced.
(c) A craft union keeps a majority of the unskilled workers out of the main stream of
the union movement.
Thus, in the UK and the USA, where modern industry started early, the craft/
NOTES occupational trade became the organization. In the USSR and in India, industrial unionism
has been the rule, partly for political and partly for industrial reasons. The craft unions cut
across skill and craft distinction of the workers employed in an industry and attempt to
solidify them into one union. It is easy for the workers, believing in class-conflict, to fight a
single employer or a group of employers through industrial unions. The national Commission
on Labour mentions these advantages of industry wise unions.”73
(i) The facility that they afford for collective bargaining;
(ii) Introduction of a measure of uniformity in the principle governing all aspects of
working conditions; and
(iii) Reconciliation of sectional claims of different levels of workers within an
industry.
All India Central Council of Trade Unions (AICCTU) is a fighting trade union centre
of the Indian working class.
Its founding conference was held in Chennai in May 1989. The second and third all-
India conferences were held respectively in Calcutta (May 1992) and Patna (September
1995). Now the Fourth All India Conference was held in Delhi from September 22 to 24.
This was preceded by an all-India workers’ rally in the capital on September 21. The
1990s has been the most challenging decade for the Indian trade union movement. Far
from reversing the course of India’s economic stagnation and decline, the New Economic
and Industrial Policies being followed since July 1991 seem only to have aggravated the
situation. And for the working class, the new policies have led to large-scale disappearance
of jobs, extensive erosion of wages and working conditions and severe curtailment of
basic trade union rights.
Through its own affiliates and as a consistent constituent of the sponsoring Committee
of Indian Trade Unions, it has been AICCTU’s sincere effort to enable the trade union
movement in India to face this growing threat to India’s economic sovereignty and to the
basic rights and interests of our workers.
AICCTU’s motto of organizing the unorganized and unionizing the ununionised has
established it as a trusted trade union centre among large sections of the most exploited
and oppressed workers in different corners of India. From the small and medium factory
workers in Chennai to the jute mill workers around Calcutta, from the textile workers in
Kanpur and Ahmedabad to the transport workers of Delhi, from the power loom and
beedi workers of Tamil Nadu to the tea plantation workers of Assam, from the coal miners
of Bihar to the contract labourers and quarry workers of Chhattishgarh, from the low-paid
migrant labourers in Ludhiana to the construction workers in Jaipur, AICCTU has been
steadily expanding its fighting network.
(c) for a needs-based minimum wage leading to the formulation of a uniform national
NOTES wage policy and for implementation of the principle of equal pay for equal work.
(d) for proper education, housing and health care services.
(e) for introducing a six-hour working day with overall improvement in working
conditions.
(f) for greater participation of women in organized production, the eradication of
gender discrimination and sexual harassment in the workplace, and for securing
equal rights and full maternity benefits to all women workers.
(g) for abolition of child labour and all forms of bonded labour.
(h) Against the contract labour and all forms of bonded labour.
(i) against industrial pollution, environmental degradation and industrial health hazards
and for adequate safety measures to prevent industrial accidents
(j) for abolition of all occupations which go against basic human dignity and full
provision of alternative employment for the affected workers.
(6) AICCTU strives to build up solidarity with working class movements in other countries,
particularly in the Asia-Pacific region, against imperialist plunder and domination and
to promote class unity among workers of South Asian countries against the regional
hegemonism of Indian ruling classes.
Within Asia, India is both in size and in its share of international garment production an
important player. Until now, contacts between the CCC and Indian trade unions and NGOs NOTES
have been fragmented and were mainly related to specific projects. Besides, there is relatively
little co-operation between these organizations at the national level. Large differences exist
between trade unions and NGOs as well as between different Indian regions.
The meetings facilitated by CEC, each lasting half a day, took place in the last two
weeks of October and the first week of November 2001. On the CCC side Ms Jantien
Meijer from the India Committee of the Netherlands, coalition partner of the CCC and Ms
Ineke Zeldenrust from the CCC International secretariat were present. CEC sent a team
of two to each meeting: In Tirupur, the T-shirt town in Tamil Nadu, a fourth strategy meeting
was organised by SAVE, an NGO that has been a long term partner of the CCC. This
meeting took place at the beginning of November 2001. About twenty NGOs from the
region participated and the meeting led to the establishment of the CCC Tamil Nadu
Taskforce.
In India over 90% of the workforce is employed in the informal sector. Also a large
share of the workers in the garment industry form part of the informal sector. One definition
of the informal sector refers to the activities of the working poor who are not recognized,
recorded, protected or regulated by the public authorities. An example of informal sector
workers are so-called self-employed workers who run their own micro-enterprise or
homeworkers. Another example of the informal sector are small workshops where people
consider themselves as working for a boss but where workers have no contract. One of
the consequences is that these workers cannot prove that an employer-employee relationship
exists, and subsequently can’t make any claims related to job security, social benefits, or
other legal claims. If they try to organise or demand improvements in their labour situation
they can easily be dismissed. In general it can be said that informal sector workers are in a
vulnerable position.
Living and working conditions of garment workers in general are bad. In the meetings
NOTES several problems concerning labour conditions were mentioned; wages are low and often
based on a piece rate system, workers have to work long hours in order to make a living.
The government violates its own statutes by not enforcing the labour act in FTZ’s.
Complex chains of subcontracting are present within the country and the sector is
characterized by a high number of small units. Even in larger factories minimum wages are
not paid. The large majority of garment workers in India is not organised in trade unions.
The industry is organised along layers of middlemen and sub-contracting chains. Often the
real owner is not known to the trade unions. Any intervention by the trade unions, for
example if they try to organise the workers, in any of those layers is followed by the
collapse of the entire chain. As a result the workers lose their jobs. The fact that most
workers work in the informal sector hampers the formation of trade unions.
In every meeting it was mentioned that India has to export in large volumes, maintain
quality and offer competitive prices if it wants to stay in business. Cheap labour has always
been India’s competitive advantage. Trade union representatives felt that this point can not
be disregarded.
Several times the question was raised as to what the effect of an international campaign
like the CCC, which is focussed on companies with global supply chains, is on companies
which produce for the local market and consequently for workers in these facilities. The
response of CCC was that the campaign aims to improve working conditions in the garment
industry by supporting local organisations. One of the central demands of the campaign is
the right to organise and collective bargaining. It is up to the labour movement to command
respect for worker rights from employers and the government on behalf of the workers
who they represent.
The strategy of international pressure is of course most effective when workers in the
export sector are concerned. There are however strategies of international solidarity, for
example when governments are addressed with demands to implement the labour law,
which can also affect the situation of those workers who produce for the domestic market.
Besides, in the experience of the CCC, often the division between facilities that produce
for the local market and those producing for export is less clear than is assumed. Companies
can produce partly for the domestic market and partly for export, directly or via a contractor.
At the same time, we have seen examples of big foreign brands producing and selling in
India. The products are sold in India for huge prices that don’t have any relation to the
production costs in India, while profits leave the country. One can really question the local
character of the domestic market.
Many representatives of trade unions and NGOs fear that international campaigns
single out a specific region or country as violating labour standards, which may cause even NOTES
more business to go elsewhere because their image may be damaged. A way to avoid this
is to focus on one retailer or brand, while the information about labour rights violations that
is made public in such a case describes the situation in several countries simultaneously. In
such a way it can be shown that labour rights violations are central to the dynamics of the
garment industry rather than a characteristic of a country or region.
1.12.3 General conclusions
Some common conclusions can be drawn from the meetings in Delhi, Mumbai and
Tirupur. In the next section some specific outcomes per meeting will be described.
In the global organisation of industry, the local market may not be local anymore,
therefore the globalized industry needs global intervention through international labour
solidarity. Many of the participants in the meetings felt the need for international solidarity
work and appreciated the work done by CCC. It was felt that more co-operation between
Indian trade unions, NGOs and CCC is needed. A majority found the work on a voluntary
code of conduct for industry acceptable, though some felt the need to discuss this strategy
more elaborately. Several participants wanted to start the interaction with the CCC by an
exchange of information.
Due to particular local circumstances and power dynamics a successful campaign
strategy can only be developed locally. Many participants felt for instance that in India for
a labour rights campaign to be effective it will be key to raise awareness among employers
as part of a larger strategy.
Because large brands are making a clear effort to conquer the Indian market and
because there is a large Indian middle class there seems to be ground for awareness raising
activities in India. By making these consumers aware political support for worker rights
could be generated.
it is these corporations who control the international supply chain of garments and who set
NOTES the standards of production. Such a strategy has enabled trade unions and NGO’s in
Western Europe to co-operate without getting caught up in the ‘social clause divide’ (many
NGO’s in Western Europe oppose the social clause, while many Western European trade
unions are in favour of the social clause).The outcome of this meeting was the willingness
of both trade unions and CCC to ensure information exchange in the future.
Mumbai
At this meeting both representatives from trade unions and NGO’s were present.
Several of the participants had quite some understanding about the CCC already. The
result was a lively group discussion, leading to several suggestions for local activities which
could be supported by the international CCC network.
The garment industry in Mumbai is characterized by many small scale units, supplying
buying houses or traders, both for export and for the domestic market. Garment workers
in Mumbai are hardly organized. The trade unions have traditionally focussed on textiles,
while the mills are closing down or have closed already. Unemployment rates are high and
create great problems for the laid off workers. Some of them have managed to shift to the
garment industry. Attempts to organize garment workers are usually met by an immediate
shift of production to a different unit. The factory owners constantly pass on the message
that the sector is in trouble, that therefore they can’t improve the situation for workers and
that the situation will deteriorate after the phase out of the MFA in 2005.
One suggestion made in the meeting was to start a broad based local campaign on a
specific issue, for example on social security or the demand for a sectoral minimum wage.
To prevent that factory owners in response to these demands shift production to another
facility and dismiss the workers, the campaign should not target on one company but on
the sector as a whole. Neither should such a campaign address industry alone but also the
local- or state government. It could benefit from international support, pressuring government
and industry organizations via the large buyers.
A third suggestion was to make sure that a good code of conduct is included in the
contract between buyer and supplier, thereby making observance of the standards outlined NOTES
in the code part of the national law. If trade unions and NGOs in India know in which
factories this is the case, they can monitor certain suppliers and the companies concerned
can be taken to court also internationally. Contract law is very strong, and can be a valuable
tool for trade unions and NGOs in India to use and would also focus more on the legal
obligations of companies and less on voluntary initiatives, with their inherent risks.
The outcome of this meeting is that trade union representatives and NGO’s came up
with some inspiring strategies to improve the situation of garment workers in Mumbai.
A major point that was raised in Tirupur was the very low level of organisation in the
area called the ‘T-shirt belt’, which is Tirupur and surrounding towns. The problem of this
very low organisation rate was recognized by all present in the meeting.
The main worry for those working on behalf of workers in Tirupur is the process of
relocation, both within the region as well as abroad, leading to job losses and insecurity of
employment. Consequences of the WTO entry of China plus phase-out of MFA are
considered to be extremely important developments.
Obviously the CCC cannot stop the process of constant relocation. What it can do is
raise the issue of cut & run at all levels, and address it as one of the major causes of bad
labour conditions in the garment industry. The risk of campaigning is that it can single out
Tirupur as violating labour standards, giving it a bad reputation and leading to more
relocation. A way to prevent this is to always present the situation in Tirupur within the
national and international context and by giving information about several regions
simultaneously. In that way it can be shown that Tirupur is not an exceptional case but that
poor working conditions are a central dynamic of the garment industry.
The outcome of this meeting was the agreement to ensure information exchange in the
future.
SAVE invited a broad group of NGO representatives from the region for a strategy
meeting in Tirupur. The NGOs who participated in the meeting work on issues like child
labour, development and human rights. Because the textile and garment industry is shifting
from Tirupur to other towns in the region and because the participants are frequently
confronted with problems of the workers in these sectors they feel the importance for joint
action.
Different NGO representatives feel that if a relationship with trade unions could be
NOTES developed a strong movement could exist. They see the work done in Europe as an example
of how trade unions and NGO’s can work on shared issues. The problems between trade
unions and NGO’s in Tirupur can partly be explained by the fact that employers actively
drive a wedge between them. NGOs should consider the question how this gap can be
filled and how a new campaign can be started.
1.13.1 Organisation
The ICN is an association of people who share their involvement in India and its
people. The association works with a small paid staff and with a number of volunteers.
ICN’s activities are financed by membership contributions, private donations and subsidies.
The ICN carries out research, owns a public library, publishes and distributes books,
booklets and a bimonthly magazine ‘India Nu” (India Today). The ICN also lends out
video tapes, slide shows, and organizes seminars, exhibitions, conferences, information
and discussion meetings and other educational activities for and with a wide variety of
individuals and groups.
The India Committee of the Netherlands (ICN) is an independent NGO (non-
governmental organization). The ICN informs the public in the Netherlands about India
and how social, economic and political developments in the West influence the daily lives
of millions of Indians. The ICN is based on solidarity with deprived groups in Indian
society: the poor, dalits (the so-called ‘untouchables’), child labourers, victims of
environmental degradation, landless people and countless women and girls. The ICN
supports their struggle against poverty, oppression, unequal treatment and degradation of NOTES
their environment.
1.13.2 Awareness raising
The ICN’s main strategy is to influence public opinion and political decision-making
processes in the Netherlands and Europe. The ICN does this through lobbying, generating
publicity in the media, and organising public meetings and campaigns. The committee works
with a wide variety of target groups, ranging from teachers, company managers to students
and housewives. The ICN does not provide direct financial support to development projects.
Being a small-scale and low-budget organisation, it does not have the means to do this.
The ICN takes the position that the disadvantaged groups in India should benefit
from development co-operation initiatives. It therefore exposes the sometimes harmful
effects of development aid on the living conditions of the poor, and argues in favour of a
larger share of development aid to be dedicated to sectors such as primary education and
health care.
In addition, the ICN alerts western consumers and companies about the effects of
their behaviour. In these days of globalisation, the social and environmental conditions in
developing countries such as India are increasingly the responsibility of every citizen in the
world. The ICN finds it of paramount importance to inform consumers and companies in
the Netherlands and Europe about these conditions and the measures that can be taken to
improve them.
1.13.3 Campaigns
In the past, the ICN has successfully campaigned against large-scale European dairy
aid to India as part of the so-called ‘Operation Flood’, and the delivery of big fishery
trawlers and fertiliser shipments funded by Dutch development aid. These types of aid had
proven harmful rather than beneficial to small peasants and local fishermen.
The ICN has also supported the national campaign for the right to work staged by
Indian organisations of agricultural labourers. With the slogan ‘Work Against Poverty’, the
ICN urged the Dutch government and the European Union to support employment guarantee
programs. Women’s rights and Adivasis’ rights, and the consequences of the Bhopal disaster
are other examples of issues taken up by the ICN in its campaign work.
At present, the ICN is campaigning against child labour, and in favour of decent
primary education for all children. The committee is campaigning for socially responsible
business and fair trade, for women’s rights and for human rights for Dalits.
1.13.4 Social labels and codes of conduct
Under the impact of globalisation, governments are increasingly inclined to allow
markets to regulate themselves. At the same time, trade and investment by multinational
NOTES
UNIT II
INDUSTRIAL CONFLICTS
Learning Objectives
After going though this unit you should be in a position to explain the following terminologies
• Industrial Dispute
• Mediation
• Conciliation
• Arbitration
• Adjudication
• Labour Court
• Industrial Tribunal
• National Tribunal
• Government Machinery to resolve Industrial Disputes
• National Arbitration Promotion Boar
• Central Industrial Relations Machinery in India
2.1 INTRODUCTION
This unit discusses in detail the meaning and definition of Industrial disputes and the
government machinery to resolve the issues of the disputes.
Industrial Dispute has been defined as “any dispute or difference between employers
and employers or between employers and workmen or between and workmen which is
connected with the employment of non-employment, or the terms of employment or the
conditions of labour, of any person.(Sec.2(k), Indian Trade Unions Act, 1926)
The definition very wide and takes within its fold many disputes between an employer
and a workman. A dispute is an industrial dispute provided it satisfies these conditions,
(a) There should be an industry, employer and workman. There must be a “collective
NOTES will of substantial or appreciable number of workmen taking up the cause of the
aggrieved workman. It must be in a position to redress the grievance.
(b) There should be a real and substantial dispute or difference and should be one in
which the workman is substantially interested, i.e., there must be ‘community of
interest’.
(c) The dispute should be between the employer and his workman, between employers
and employers or between workman and workmen.
(d) The dispute must be connected with: (i) the employment or (ii) non – employment,
or (iii) terms of employment or with conditions of labour. Non – employment
includes retrenchment and refusal to reinstate.
(e) There should be a contractual relationship between the employer and the workman.
The former following a trade, business and manufacture and the latter following
any calling, service, or employment in aid of employers enterprise.
(f) The dispute should relate to existing industry, and not a dead on one which is not
even in existence.
(g) An individual dispute could assume the character of an industrial dispute provided
it is sponsored either by the trade union or by a number of workmen.
Collective support by the workmen is essential for making an individual dispute an
industrial dispute, i.e., the workman as a body or a considerable section of them make
common cause with the individual workman.
For any industrial dispute it is not necessary that there must be any undertaking with
a profit motive or trade or business in a commercial sense. However, for a dispute, it is
necessary that a demand must be raised by the employees or their unions and rejected by
the employer.
In fact the term industrial dispute denotes a real and substantial difference having
some elements of persistence and continuity till resolved and likely, if not adjusted, to
endanger the industrial peace of the undertaking or the community.
2.3 CERTAIN ASPECTS OF INDUSTRIAL DISPUTES ARE DISCUSSED AS
BELOW
(a)Employment and non employment: Besides employment, conditions relating to
non employment also constitute a dispute. The term non employment includes
retrenchment as well as refusal to reinstate.
(b)Individual dispute and industrial dispute: Before introduction of the Section
2-A of the Act an individual dispute could not attain the status of dispute unless
raised by the trade union or a number of workmen. However, Section 2- A has its
own limitation. If fact all individual disputes cannot be termed as industrial dispute.
The disputes connected with the discharge, dismissal retrenchment or termination
cannot be termed as industrial dispute. These disputes connected with other matters
will have to satisfy the basic conditions of industrial dispute.
(c) Disputes regarding facilities: For any industrial dispute the tribunals and court
has adequate jurisdiction to pass proper and reasonable order. But the facilities NOTES
like housing, education and medical are the responsibilities of the state. Therefore,
such obligations cannot be imposed on the employer. Hence any dispute pertaining
to the facilities cannot be termed as industrial disputes.
(d)Withdrawal of privilege of trade union leader: In case where any privilege is
given to a trade union leader and its withdrawn by the management it cannot from
a subject matter of dispute. As such granting of privilege is management’s
discretionary right and it cannot be treated as part of the service condition. So
whenever any concession or privilege is to be withdrawn the beneficiate cannot
raise a dispute.
(e)Dispute relating to workmen employed by the contractor: The question
whether the disputes relating to workmen employed by the contractor, can be
regarded as dispute is quite controversial. In this context the case of Vacuum
Refining Company, is leading one. The company in question used to give annual
contract for maintenance of plants and premises. In the year 1970 it employed 67
workers whereas in the next year only 40 workers were employed. The workers
employed on a contract basis raised a dispute demanding abolishing of the contract
system. It was observed by the Supreme Court, that there is an industrial dispute
between the company and the workmen, on the question of employment of contract
labour, for the work of the company.
The very fact that the workmen are employed by the contractor would not alter the
nature of dispute as long as party raising a dispute has a direct interest in the subject matter
of dispute.
(f) Lay off (Section 2 kkk): It means “the failure, refusal or inability of an employer
on account of shortage of coal, power or raw material of the accumulation of
stocks of the breakdown of machinery; natural calamity or for any other connected
reasons to give employment to a workman whose name is borne on the muster
rolls of his industrial establishment and who has not been retrenched.
Every workman whose name is borne on the muster rolls of the industrial establishment
and who present himself for work at the establishment at the time appointed for the purpose
during normal working hours on any day and is not given employment by the employer
within 2 hours of his so presenting himself shall be deemed to have been laid off within the
meaning of the clause. But where a workman after attendance at the commencement of
any shift for day, is asked to present himself for the purpose of second half that shift, and is
given employment, the workman shall be deemed to have laid off only for one half of that
day. When after presenting himself for the second half of the shift the employee is not given
employment he shall be deemed to have been laid for the day and not for the second half
of the shift of that day. In such circumstances, the laid off workman shall be entitled to full
basic wages and dearness allowance for the part of the day.
Lay off is not a right conferred but an obligation imposed on the employer for the
NOTES benefit of workmen. The very genesis of the lay off is that it is break in the service of the
employee and within a reasonable time, the employer expects that, the business or industry
would restore its normal situation and the laid off persons would be reinstated. A leading
case in this context is of Nutan Mills Ltd., v S.I.C the question came for the consideration
was in case of laid off employee whether relation of master and servant continue. It was
held by the Bombay High Court that during period of lay off the relationship between
master and servant is suspended and the employee is entitled for wages.
(g) Lockout (Section 21) : Lockout means “the temporary closing of place of
employment, or the suspension of work, or temporary refusal by an employer to
continue to employ any number of person employed by him.
In cash of a lay-off, owing to the reasons specified in the definition, the employer is
unable to give employment to one or more persons. But in case of lockout the employer
closes the place of business and locks out the whole body of workmen for reasons which
have no relevance, to causes specified in the definition of lay-off.
In case of closure, the employer does not merely close down the place of business
but he also closes the business itself.
Lockout has been described by the Supreme Court as the anti thesis of strike. The
Madras High Court is of opinion that whatever be the circumstances in which the employer
find himself placed and whatever be the strength of the agencies which forced on him the
steps and however impotent he may be to avoid the result if an employer closes the place
of employment or suspends work on his premises, a lockout would come into existence.
The main object of the Industrial Disputes Act is the investigation of and management
of industrial disputes.
2.4.1 Introduction
One of the principal aims of the Industrial Disputes Act is to harmonise the conflicting
interest of employers and employees engaged in industrial establishments as defined in the
Act. The advent of the doctrine of welfare has cast responsibilities on the State to participate
actively in the prevention and settlement of industrial conflicts which are of common
occurrence under the present economic set-up. The old doctrine of laissez faire has become
absolute in the present socio-economic context mainly due to the reason that active
participation of the State in necessary in order to protect the interest of the weaker section
of the society who always look upon the State as their benefactor. The traditional theory of
hire and fire as well as the theory of supply and demand are outmoded concepts in the NOTES
present socio-economic context. In the present context the goal is to achieve social and
economic justice in the community. One of the methods for achieving this goal is to evolve
a system of industrial adjudication and arbitration whereby industrial disputes can be settled
peaceably, justly and as far as possible uniformly.
Industry adjudication needs different philosophy, outlook, attitude and behavior on
the part of the authorities associated in the task to harmonies the conflicting interest of
capital and labour as compared to settling civil disputes where set rules of law govern the
justice. Whereas prevent, as far as possible, and if they fail in this fask than to solve the
disputes to the satisfaction of both the parties involved in the dispute by narrowing down
the differences to the minimum possible in the ever changing complex of social needs and
necessities by using his own sense of justice, equity and good conscience. The law as
already evolved in the labour field is also subject to stress and strains of the changes in
outlook of the employers and employers and employees. In certain fields of conflicts there
is no codified law of rights and liabilities of the disputants and, therefore, the persons
vested with the authority to adjudicate the industrial disputes are to depend upon the
reasoning of common sense suited best under the prevailing circumstances. The industrial
adjudication requires a pragmatic approach rather a dogmatic approach to the problems
which vitally affect the entire social structure of the society.
The various methods and machinery under the industrial disputes act can be classified
as under the following heads:
(I) Conciliation
a. Works committee
b. Conciliation officer
c. Board of conciliation
(II) Arbitration
d. Court of inquiry
(III) Adjudication
e. Labour court
f. Industrial tribunal and
g. National tribunal
Of these settlement machineries the first one can be described as “quasi-administrative
machinery”, because it is governed and guided mainly by administrative principles and
policy. Further, the persons constituting these machineries are generally chosen from those
having administrative experience or qualities. They apply normally administrative mind to
resolve an industrial dispute. On the other hand, the last two are “quasi-judicial machineries”
for these are mainly governed and guided by judicial principles. The persons constituting
theses machineries are chosen from those having judicial background.
49 ANNA UNIVERSITY CHENNAI
DBA 1748
2.4.2 A. Conciliation
NOTES
Conciliation is an important method for the settlement of industrial disputes through
third party intervention. It is an attempt to reconcile the views of disputants, to bring them
to an agreement. Conciliation is generally understood as the friendly intervention of a neutral
person, in a dispute, to help the parties to settle their differences peacefully.
Conciliation may be described as “The practice by which the services of neutral third
party are used in a dispute as a means of helping the disputing parties to reduce the extend
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.
The conciliator is a natural party, who without using force, seeks to find some middle
course for mutual agreement between the disputants so that the deadlock is brought to an
end at the earliest possible moment and normal peace restored.
Various methods of conciliation are discussed below:
(a) Works committee (Section 3): the following are the objectives of the works
committee:
(1) To promote measure for securing and preserving good relations between employer
and employees.
(2) To strive for minimizing the difference of opinion in regard to matters of mutual
interest between the employees and the employer. It is meant to create a sense of
partnership or comradeship between the employers and workmen.
It task is only to smooth away friction that might arise between the workmen and the
management in day to day work. NOTES
The Act requires that a works committee shall be constituted in every establishment
where 100 or more workmen are employed or have been employed on any day in the
preceding 12 months; to “promoted measures for securing and preserving amity and good
relations between the employers and workmen and to comment upon such matters of
common interest or concern and endeavour to compose any material difference of opinion
on such matters.” It shall consist of any equal number of representatives of employers and
also elected representatives of workmen ( the total number not to exceed 20 ), the
representatives of the employer are to be nominated by the employers and those of workmen
by registered trade unions of 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.
The committee shall represent various categories, groups and classes of workmen
engaged in different sections, shops or departments of the establishment. It shall have
among its office bearers a Chairman, a Vice – Chairman, a Secretary. If a vacancy occurs
for membership, the newly elected member will continue in office of the residual term in
whose place he has been elected. The employers are required to provide accommodation
for holding meetings of the committee.
The works Committee is set up with a definite objective, limited power and scope but
without any defined subjects over which it can exercise jurisdiction. For this reason, in
many cases they have mere instruments without teeth or sharpness, and a large number of
them have proved to be ineffective in practice.
(b) Conciliation Officer (Section 4): Under the act, the appropriate government is
empowered to appoint desired number of conciliation officers, by notification in
the Official Gazette, for the settlement of industrial disputes.
Duties of the Conciliation Officer: The Act provides (under Sec.12) that (i) if an
NOTES industrial dispute exist or is apprehended in a public utility industry, the Conciliation Officer
shall hold conciliation proceedings: and (ii) in case of other industry, his power is discretionary,
i.e he may or may not hold such proceedings.
The Conciliation Officer has wide powers of making investigation without delay, into
an industrial dispute and all matters affecting the merits and rights of settlement thereof and
may do all such things as he thinks fit, to induce the parties to come to a fair and amicable
settlement of the dispute. The Conciliation Office can send only report but has no authority
to pass a final order. Any order passed by him requiring the parties to act in particular
manner is without jurisdiction and therefore, illegal and imperative.
If a settlement is arrived at in the course of conciliation proceedings, the conciliation
officer must submit its report within 14 days or within such short period as may be fixed by
the appropriate government duly signed by the parties to dispute. A conciliation proceeding
is deemed to have commenced on the date on which a notice of strike or lock-out is
received by the conciliation officer. In the other cases, it is deemed to have commenced
from the date when conciliation officer holds proceedings. A settlement brought through
the conciliation officer is an administrative act and not a quasi judicial one.
If no settlement is reached at, then the conciliation office is required to immediately
send to the appropriate government, a full report setting forth the steps taken by him for
ascertaining the facts and circumstances relating to the dispute and for bringing about a
settlement thereof and the probable reasons for failure.
A conciliation proceeding is not concluded and its deemed to be pending until any of
the following conditions are fulfilled:
(a) where a settlement is arrived, at a memorandum of the settlement is signed by the
parties of the dispute;
(b)where no settlement is arrived at, the report of conciliation officer is received by
the appropriate government; and
(c) a reference is made to the Court of Inquiry, labour court, tribunal or national tribunal,
during the pendency of the conciliation proceedings. The time of submission of
the report may be extended by such period as may be agreed upon in wiring by
the parties to the dispute, subject to the approval of the conciliation officer.
If, on consideration of the report submitted by the conciliation officer, appropriate
government is satisfied that there is a case for reference to any authority under the Act, it
may make such reference. Where the appropriate government chooses not to make such
a reference, it shall record and communicate the reasons recorded for not referring the
dispute to the contending parties.
Thus , a wide discretion has been conferred on the government either to refer or not
to refer in industrial dispute. But in exercise of its discretion three thing must be satisfied:
A board, having the prescribed quorum may act notwithstanding the absence of the
chairman or any of its members or any vacancy in its number.
(4) If no settlement is arrived at the board shall, as soon as practicable after the close
NOTES of the investigation, send a report to the appropriate government stating the facts
and circumstances, the steps taken, the reasons why no settlement was arrived at,
and its recommendations for the determination of the dispute.
(5) A board of must submit its report within 2 months of the data (on which the
dispute was referred to it) or with such shorter time as the government may fix.
The time may be extended by the government up 2 months, with the consent of
both the parties in writing.
The report must be signed by all the members. Any member can submit a dissenting
minute. Every report together with the minute of dissent must be published by the appropriate
government within 3 days from its receipt.
In case no settlement is arrived at, the government may refer the matter to the labour
court, tribunal or national tribunal. If it does not do so, it shall record and communicate the
parties concerned it reasons therefore.
Every board has the same powers as are vested in a civil court (under the code of
civil Procedure, 1980) when trying a suit, in respect of the following matters:
(1) enforcing the attendance of any person and examining him on oath;
(2) compelling the production of documents and material objects;
(3) issuing commissions for the examination of any witness
(4) in respect of such other matters as may be prescribed
2.4.3 B. Arbitration
The section 22,23 and 33 lays down that during the pendency of the proceeding
before a court of inquiry, the following rights of works remain unaffected viz. NOTES
(1) The right of the worker to go on strike:
(2) The right of employer to resort to lockout and
(3) The right of employer to dismiss or otherwise to punish the worker in certain cases
under section 33.
2.4.4 C. Adjudication
The ultimate legal remedy for the settlement of an unresolved dispute is its reference
to adjudication by the government. The adjudication involves intervention in the dispute by
a third party appointed by the government for the purpose of deciding the nature of final
settlement.
On getting a report for the failure of conciliation, the government has to decide whether
it would be appropriate to refer the dispute to adjudication. The rational behind this is that
the developing countries can ill-afford to suffer from loss of production due to long-draw
strikes and lockouts. Further, the trade union movement is yet not storing and mature
enough to adopt and rely on only collective bargaining for protecting the interest of the
workers. Therefore, the necessity for intervention by the government is felt. Thus, the
government does by making references of the dispute to the adjudication machinery.
The importance of adjudication has been emphasized by the Supreme Court and has
been considered at par with decisions on fundamental rights under the Constitution in the
following words.
As in the decision of the Constitutional question of this kind, so in adjudication it is
always a matte of making reasonable adjustments between the two competing claims. The
fundamental right of the individual citizen is guaranteed and its reasonable restriction is
permissible in the interest of general public, so the claims of the interest of general public
have to be weighed and balanced against the claims of the individual citizens in regard to
his fundamental right. So too in the case of adjudication, the case of adjudication, the
claims of the employer based on the freedom of contract have be adjusted with the claims
of industrial employees for social justice.”
Accordingly, the adjudication machinery has to consider not only the demands of
social justice but also the claims of national economy required that attempts should be
made to secure to workmen a fair share of the national income. On the other hand, the
adjudication machinery has to take care to see that the attempt at a fair distribution does
not tend to dry up the source of national income itself.
(a) Labour Court (Section 7) : One or more labour curt may be constituted by the
appropriate government by notification in the Official Gazette, for adjudication on industrial
disputes relating to any matter specified in the Second Schedule of the Act, and for
NOTES performing such other functions as may be assigned to them.
A labour court shall consist of one person only, to be appointed by the appropriate
government. Such a person should have 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; or has been a presiding officer of a lobour court for not less than 5 years.
No person shall be appointed or continue in the office of the labour court if he is not an
independent person, or he has attained the age of 65 years.
The duties of the labour courts are (i) to hold adjudication proceedings expeditiously,
and (ii) submit the award to the appropriate government as soon as practicable on the
conclusion of the proceedings. The labour court usually deals with matters which arise in
day-to-day working.
The labour court has no power whatsoever except those which can be traced to
Statute, to a statutory rule or a statutory instrument. It has no supervisory jurisdiction i.e. it
cannot act as the guardian of an industrial establishment.
The jurisdiction of the labour court is very much circumscribed. It does not sit as an
appellate court to weigh the pros and cons and apply its mind to find our if a different
conclusion is possible. Its duty is to see whether the enquiry satisfies the principles of
natural justice and whether there was material for the management to act in the manner
they did and whether their act was not favour of any malpractices as victimization. In the
absence of such an indication the labour court normally approves the decision of the domestic
enquiry and grants the permission asked. But if there is no domestic enquire the proceedings
are vitiated, the labour court has the jurisdiction to undertake an inquiry, accept fresh
evidence, re-appraise the same and render a new decision there on. Commenting upon the
jurisdiction of the labour court, the Supreme Court in Anand Bazar Patrika.v. Its Employees,
held that if the termination of an industrial employee’s service has been preceded by a
proper domestic enquiry perverse the tribunal is not entitled to consider proprietary of the
said conclusion. If one the other hand in terminating the service of the employee the
management has acted maliciously or vindictively or has been actuated by a desire to NOTES
punish the employee for the trade union activities, the tribunal would be entitled to give
adequate protection to the employee by ordering his reinstatement.
(D) Industrial Tribunal (section 7 A) : The appropriate government may appoint one or
more Industrial Tribunals for the adjudication of industrial disputes relating to any matter
whether specified in the Second Schedule of 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 tribunal shall consist of one person only, who shall be appointed by the appropriate
government. He should be an independent person and below the age of 65 years; he is or
has been, the judge of a High Court, or has for a period of not less than 3 years, been a
District Judge; or he has held the office of the chairman or as any other member of the
labour appellate tribunal or any tribunal, for a period of not less than 2 years, unless he is
or has been a Judge of a High Court.
The appropriate government may, if it so thinks fit, appoint two persons as assessors,
to advise the tribunal in the proceeding before it. Its duty is to hold adjudication proceedings
expeditiously, and to submit award to the appropriate government as soon as practicable,
on the conclusion of the proceedings. The award shall be in writing and shall be signed by
its presiding officer.
The functions of the industrial tribunal are essentially quasi – judicial and as such, are
subject to the overriding jurisdiction of the Supreme Court. The powers of the tribunals
are derived from the statue that creates them and they have to function within the limit
imposed thereon and to act according to its provisions.
It is obvious from the act that tribunals are constituted when an industrial dispute
arises and normally functions as long as dispute is not settled. Whenever a new tribunal is
appointed, it is required to start hearing a fresh, specially when it is felt that any prejudice
is likely to be caused to any party. The tribunals are supposed to decide the case without
any bias.
In the Lipton Ltd. Case, the award of the Industrial Tribunal, Delhi, was confirmed by
the Labour Appellate Tribunal. However, when a similar dispute between the same company
and their workmen of madras arose, the company contended that the award of Delhi
tribunal is not binding on the employee, working in madras. The madras high court held
that Delhi’s tribunal decision is certainly not enforceable on the workman.
(c) National Tribunal (Section 7 B): The Central Government may, by notification in
the official gazette, constitute one or more national tribunals for adjudication of industrial
disputes: (i) involving questions of national importance; or (ii) which are of such a nature
that idsutries 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 and below 65 years of
age. He should be or has been judge of a high court or held the office of chairman or any
other member of the Labour Appellate tribunal for a period of not less than 2 years.
The Central Government may, if it thinks fit, appoint two persons as assessors to
advise the National Tribunal Duties of a national tribunal are to hold proceedings of an NOTES
industrial disputes referred to it by the Central Government expeditiously, and to submit
the award to the referred on the conclusion thereof.
When a national tribunal has been referred to, no Labour Court or Industrial tribunal
shall have any jurisdiction to adjudicate upon such a matter
2.5 MEDIATION
Mediation’ is the ancient art of the peace-maker. It has been practiced in a number of
areas when people disagree. It is an ancient and honorable process for the settlement of
disputes – disputes between two warring nations, disputes between litigants, disputes
between labour and management, and in general, disputes between people. It has been
most usefully employed to smooth out serious disagreements which threaten the rupture of
established relations, such as those between husbands and wives, among associates and
friends, and among partners in common endeavors.
As a formalized activity, its justification lies in the danger that the consequences of
disagreement will have an adverse effect on bystanders, whether as individuals or as a
community. Warren (a former Director of the United States Conciliation Service) has stated.
“Despite the fact that other forms of settlement of labour disputes are more dramatic and
have captured the headlines more often, the process of mediation has proved successful in
reaching settlement in the great majority of those cases in which agreement had not been
reached by direct negotiation between the parties.”
Theses are not mutually incompatible but can be advantageously used to supplement
one another. For a certain class of disputes, the eminent outsider cannot be dispensed
with, provided that his services are available as and when needed. The non-governmental
board has the advantage over the eminent outsider that, on being constituted as an ad hoc
body, it is more readily brought into play and has a better chance of making its voice heard
in that breathing space before a strike or lockout actually beings. There are various
advantages inaccessible to non-governmental boards but which are readily available to the
boards attached with governmental machinery of the country, because:
(i) They Possess exceptional facilities for ascertaining the existence of difference at
NOTES the earliest possible moment through administrative officers;
(ii) They are endowed with greater intellectual and financial resources and can use
them more liberally ; and
(iii) When mediators are sent out, they are likely to wield a modicum of power which
may enable them to work well.
Different types of these mediators are valuable in their own spheres. But they are
sometimes dangerous. The development of a pace-promoting machinery within separate
industries may be checked by the actions of the intervening body.
2.6 CONCILIATION
Conciliation is the most important method for the prevention and settlement of industrial
disputes through third party intervention. It is an attempt to reconcile the views of the
disputants and bring them to an agreement. Conciliation is generally understood as the
friendly intervention of a neutral person in a dispute to help the parties to settle their
differences peacefully.
Conciliation 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 difference between the parties to a dispute under the
guidance of a conciliator.”
The conciliator is a neutral party who, without using force, seeks to find some middle
course for mutual agreement between the disputants so that the deadlock us brought to an
end at the earliest possible moment and normal peace restored. “He tries to bridge the gulf
between the two contending parties; and if he does not succeed, he at least tries to reduce
the differences, as far as possible, by tendering advice to the parties and bring them close
to a settlement. Thus m he is a mere go between; the catalytic agent who creates an
opportunity for the parties to meet face – to – face- to - resolve their difference amicably.
His duty is not to suggest solutions for the dispute, but to make suggestion for alternative
solutions. He tries to persuade the parties to have a fresh viewpoint and different outlook.
There are certain basic characteristics which are essential to the work of conciliation.
A conciliator must have these if he is to win the trust and confidence of the parties.
(i) Independence and impartiality are the two attributes which every conciliator should
possess. It is essential that he should not only possess these qualities but be also
seen to possess them. He must be above suspicion; and both parties must have
confidence in his integrity and neutrality. He should be independent enough not to
be swayed or influenced by others. He should be able to resist undue pressures of
persuasion from powerful employees or unions.
(ii) Since conciliation, in certain cases, involves arduous work, a conciliator should be
physically and psychologically fit for the rigours of his task. He must have a strong
and deeply held conviction of importance and usefulness of conciliation. It has
been noted that “conviction is an expression of one of the highest virtues which
can be praised the desire to understand and be just to one another. Each time that
one attempts to the resolve a conflict without force, one renders to men an enormous
service and lead them along the path of wisdom and of respect for themselves and
for each other.”
(iii) A conciliator should never allow conciliation proceedings before him to constitute
a mere formality or a step on the road to arbitration. He must be able to offer to
the parties inducements that will persuade them to prefer a settlement with his
assistance, and to make serious efforts to reach an agreement.
(iv) Because of the nature of his work, a conciliator must have the ability to get along
well with people. He must be, to a certain extent, a specialist in human relations, in
the relations between the parties when they come face-to-face, and in his own
relations with them. He must be honest, polite, tactful, self-confident, even-tempered
and patient in trying to achieve results. He should have powers of persuasion,
including a good command of language and a facility for expression, and should be
NOTES able to communicate with the parties in the language they understand.
(v) Since a conciliator has to deal with different persons and has to preside over their
meetings in conciliation proceedings, he does not only have to have tact and ability
to guide and control their joint discussions, but must also give an impression of
responsibility, clear-headedness and mature judgment. He must be able to show
others that he possesses enough common sense and practical mindedness.
(vi) A conciliator should have a friendly personality, a sense of humour, and have a gift
for relieving tensions at joint discussion. A nimbleness of mind will enable him to
grasp quickly and analyze rapidly the main elements of controversy.
(vii)A conciliator should be well acquainted with law and regulations concerning industrial
relations and the settlement of industrial disputes. He should be familiar with the
industrial relations system, e.g., the development and structure of trade union and
employers’ associations; the development and structure of trade union and
procedures and practices; the operation of agreed negotiation bodies set up by
the parties; the main causes and patterns of disputes; knowledge of human resource
management, functioning of trade unions within undertakings grievance and
disciplinary procedures and joint consultancy machinery.
(viii)He should be well-trained in different aspect of the management process. He
should have some knowledge of products and services, the production methods,
practices, etc. knowledge about wage rates and other financial matters, incentive
schemes; and an understanding of traditional outlooks and cultural peculiarities,
and of the way in which they after labour relations.
(ix) He must have the ability and versatility to form judgments. He should, therefore,
acquire knowledge from personal experience and observation; besides getting
knowledge of social sciences, psychology, social institutions, group behavior and
cultural changes.
The conciliator often functions as a face saver. When a party knows at the outset or
realizes during the course of proceedings that it has a week case and can hope for title
success in pursuing the dispute. The people concerned are often reluctant to admit defeat,
NOTES because they feel that this will involve them in a loss of face, or prestige, with their members
or with the public. In such situations, the conciliator may devise a form of announcing
settlement, which apparently makes some small concession to party concerned but which
in reality gives it little or nothing.
Thus, a conciliator has to play a wide variety of roles. When a strike or lock-out is
threatened, it is his duty to advise the party concerned on the legality of the proposed
action and to use all his powers of persuasion so that the action may be postponed while
conciliation is going on. He makes efforts to persuade the parties against violent or disorderly
behaviour in carrying out the proposed action which might lead to bitterness. He also tries
to bring the parties together to the negotiating table before the factory is shut down or any
damage to equipment or property is done. And he ensures that work is immediately resumed
when the strike or lockout is terminated.
effecting the supply of essential goods and services to the community. In some situations
NOTES such as national emergencies, or when inflation running wild, there is a greater public concern
over the way disputes are settled and wage claims dealt with.
This relates to market conditions and the parties’ bargaining strength. This is the pressure
which parties themselves seek to exert on each other. Pressure for a particular type of
settlement will be generated by the factual situation – rise in living costs, wage increases
granted by comparable firms, wages rates paid by competitors, comparative productivity
levels. Economic pressure is more generally associated with the resort to a strike or lockout.
2.7 ARBITRATION
2.7.1 Concept
Arbitration is to be distinguished from conciliation not only by the fact that its decision
is binding on the parties but also by its different approach and spirit. 1 The main objective
of arbitration is adjudication and, hence, there is no place for compromise in awards though
the parties are at liberty to do so. While the conciliator has to reconcile the recommendations
of the parties, sometimes against his own discretion, as long as he brings about an agreement
between the contending parties, the arbitrator enforces his own point of view on the
contending parties and the opinions of the disputants are not given any predominance.
Moreover, arbitration is more judicial in character than conciliation.
Voluntary arbitration implies that the two contending parties, unable to compose their
differences by themselves or with the help of the mediator or conciliator, agree to submit
the conflict/dispute to an impartial authority, whose decision they are ready to accept. In
other works, under voluntary arbitration, the parties to the dispute can and do themselves
refer voluntarily any dispute to arbitration before it is referred for adjudication. This type of
reference is known as a “voluntary reference”, for the parties themselves volunteer to
come to a settlement through arbitration machinery.
The essential elements in voluntary arbitration are:
The voluntary submission of dispute to an arbitrator
The subsequent attendance of witnesses and investigations;
The enforcement of an award may not be necessary and binding because there is no
compulsion. But, generally, the acceptance of arbitration implies the acceptance of its
award-be it favorable or unfavorable; and
Voluntary arbitration may be specially needed for disputes arising under agreements.
Compulsory arbitration, on the other hand, is one where the parties are required to
accept arbitration without any willingness on their part. When one of the parties to an
industrial dispute feels aggrieved by an act of the other, it may apply to the appropriate
government to refer the dispute to adjudication machinery. Such reference of a dispute is
known as ‘compulsory’ or ‘involuntary’ reference, because reference in such circumstances
does not depend on the sweet will of both the contending parties or any party to the
dispute. It is entirely the discretion of the appropriate government based on the question of
existing dispute, or on the apprehension that an industrial dispute will emerge in a particular
establishment.
Under compulsory arbitration, the parties are forced to arbitration by the state when:
(i) The parties fail to arrive at a settlement by a voluntary method; or
(ii) When there is a national emergency which requires that the wheels of production
should not be obstructed by frequent work-stoppages; or
(iii) The country is passing through grave economic crisis; or
(iv) There is a grave public dissatisfaction with the existing industrial relations; or
(v) Industries of strategic importance are involved; or
(vi) Parties are ill balanced, i.e., where the unions are weak, ill-organised, and powerless
and the means of production are in the hands of the capitalists who are well-
organised and powerful; or
(vii)Public interest and the working conditions have to be safeguarded and regulated
NOTES by the state.
Compulsory arbitration leaves no scope for strikes and lockouts; it deprives both the
parties of their very important and fundamental rights.
Where any industrial dispute exists or is apprehended and the management and workers
agree, under a written agreement, to refer the dispute to arbitration, they may do so. Since
the parties to the agreement are the trade union and the employer, either of them would
ordinarily be responsible for initiating proceedings to settle differences through arbitration.
Where arbitration is voluntary, only the issues that have been agreed upon by the parties as
arbitrable can be submitted to arbitration under the agreement. Conceivably the parties
might agree to a coverage so broad as to embrace any and all disputes between the
parties. The agreement may specify questions that shall not be subject to arbitration (such
as certain management prerogatives); or it may otherwise limit the scope of the arbitrator’s
authority. The arbitrator, then, shall have no power to add to, subtract from, alter or otherwise
change or modify the terms and conditions of agreement.
Under the Industrial Disputes Act, 1947, a dispute may be referred to arbitration
under the following conditions:
(a) An industrial dispute exists or is apprehended in an establishment;
(b) The employer and the workers agree, in writing, to refer the dispute to arbitration;
(c) The arbitration agreement is in the prescribed form and signed by the parties to it
in the prescribed manner;
(d) The agreement must be accompanied by the consent, in writing, of the arbitrator
or arbitrators;
(e) The dispute must be referred to arbitration at any time before it has been referred
to a labour court or tribunal or a national tribunal;
(f) The reference must be to the person or persons specified in the arbitration agreement
to act as arbitrator/arbitrators;
(g) The arbitration agreement must set forth the issue/issues to be decided by the
arbitration procedure and a copy of the agreement is forwarded to the government NOTES
and the conciliation officer.
2.8.1 Qualification of Arbitrators
If arbitration is to be successful, the arbitrators must have the qualifications to ensure
that the parties entrust them with the responsibilities for making decisions on the questions
at issue. They should have the following qualifications;
(i) an understanding of the complexities of the labour-management relationship;
(ii) a knowledge of collective bargaining and the operation of arbitration procedures,
as well as skill and experience in the interpretation of collective agreements; and
familiarity with personnel policies, industrial discipline and human relations;
(iii) high integrity, that is, they should be non-partisan persons with a deep sense of
impartiality, which requires that they should be free from any commitment to, or
prejudice in favour of, one side or the other;
(iv) they must be committed to the maintenance of harmonious labour management
relations and have a strong belief in the importance of successful arbitration;
(v) They must be acceptable to the parties.
2.8.2 Procedure for Investigation
After the dispute has been referred to the arbitrator, he will hear both the parties.
Hearing involves mastery of the facts of a particular dispute as well as the relevant provisions
of the collective agreement and of the past practices of the parties in relation to matters
relevant to the dispute. An investigation of the facts and circumstances of the dispute is of
great importance. The investigation should aim at ascertaining who and what are involved
in the dispute. The arbitrator may call witnesses, get evidence and relevant records and
documents, current and the past agreements; ordinances, court decisions, statutes (bearing
on the case) and arbitration decisions by other arbitrators in similar cases, that may suggest
a line of reasoning. When an important witness is unable to attend, sworn affidavit is often
used.
After the collection of facts and supporting materials, arguments take place. Certain
principles are followed by an arbitrator while dealing with a particular dispute, namely:
(i) Fair hearing, which demands that an opportunity should be given to both the parties
to be heard and cross-examined.
(ii) Principle of natural justice requires that a party should have due notice of
proceedings, and it must know what are the issues involved and what part it has to
play.
(iii) The party should be free to give any evidence which is relevant to the enquiry and
on which it relies for its arguments. The evidence given by one party should be
taken in the presence of the other party so that the other party may rebut and
place counter evidence, if necessary.
(iv) The arbitrator should not rely on any document which is not shown and explained
NOTES to the other party and to which a reply has not been received. He has to be
completely impartial without any bias or prejudice against anybody.
The arbitrator, after investigating the dispute, has to submit his award to the government.
The award will have the same legal force as the judgment of a labour court or tribunal. The
award must be signed by the arbitrator.
The system of compulsory arbitration has been tried in Australia, New Zealand and
America; but, in the last country, it has now been inoperative because of severe opposition
by workers, who consider compulsory arbitration equivalent to involuntary servitude and
denial of civil liberty and loss of personnel freedom.
(vi) It exposes workers to arbitrary restraints and penalties before trail and correction;
(vii)It denies the working people the right to protect themselves and resist a wrong,
NOTES
and to strive peacefully for improvement in their conditions;
(viii)Decisions handed down through arbitration might be coloured by political
expediency. Thus, both employers and the unions would become deeply involved
in political pressures and efforts to win favors;
(ix) It means loss of personal freedom, loss of mobility, loss of power of initiative, loss
of hope and aspiration for self-betterment;
(x) The prohibition of strikes is not readily enforceable; lower productive efficiency,
and shuts of all productive possibilities.
On the other hand, when reference is made to adjudication by the government without
NOTES the consent of either or both the parties to the dispute, it is known as Compulsory
Adjudication.
The Industrial Disputes Act, 1947 provides for a three-tier system of adjudication
(1) Labour Courts;
(2) Industrial Tribunals; and
(3) National Tribunals.
These are the adjudication bodies which decide the disputes refereed to them by the
appropriate government and pass their awards.
The Labour Courts adjudicate upon disputes listed in Schedule II of the Act.
The Industrial Tribunals adjudicate upon disputes which are of national importance,
or when the dispute is of such a nature as to effect industrial establishment situated in more
than one state.
LABOUR COURTS
One or more labour courts may be constituted by the appropriate government for
adjudicating on industrial disputes relating to any matter specified in the second schedule
to the Act, and for performing such other functions as may be assigned to them.
Constitution
No person shall be appointed or continue in the office of the labour curt if he is not an
independent person, or if he has attained the age of 65.
The labour court usually deals with matters which arise out of the day-to-day working
of an undertaking.
Jurisdiction
NOTES
The jurisdiction of labour courts extends to the adjudication of the following disputes
relating to matters specified in the Second Schedule:
(1) The propriety or legality of an order passed by an employer under the Standing
Orders.
(2) The application and interpretation of Standing Orders.
(3) Discharge or dismissal or workers, including reinstatement of, or grant of relief to,
workers wrongfully dismissed.
(4) Withdrawal of any customary concession or privilege.
(5) Illegality or otherwise of a strike or lockout.
(6) All maters other than those specified in the Third Schedule of the Act (i.e., those
matters which are within the jurisdiction of industrial tribunals).
The labour court has no power whatever except those powers which can be traced
to a Statue, to a statutory rule or a statutory instrument. It has no supervisory jurisdiction,
i.e., it cannot act as a guardian of an industrial establishment.
Further, though the labour court does not have jurisdiction over the matters specified
in the Third Schedule, where the dispute relates to any matter specified in the Third Schedule
and is not likely to effect more than 100 workers, the appropriate government may, if it
thinks fit, refer the dispute to a labour court.
The jurisdiction of the labour court is circumscribed. It does not sit as an Appellate
Court to weigh the pros and cons and apply its mind to find out if a different conclusion is
possible. Its duty is to see whether the enquiry satisfies the principles of natural justice;
whether there was material for the managements to act in the manner they did and whether
their act was savoured of any malpractice or victimization. In the absence of such an
indication ex facie in the proceedings of the enquiry officer, the labour court is normally
expected to approve the decision of the domestic enquiry and grant the permission asked
for.
Only in cases where there was no domestic enquiry or the proceedings at the domestic
enquiry were in any way vitiated would the labour court have jurisdiction to undertake a
re-enquiry accept fresh evidence, re-appraise the same and render a new decision thereon.
2.10 INDUSTRIAL TRIBUNALS
The appropriate government may appoint one or more industry tribunals for the
adjudication of industrial disputes relating to any matter, whether specified in the Second
Scheduler 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 refereed to an industrial tribunal. The industrial tribunal may be appointed for a
limited period on an ad hoc basis or permanently.
2.10.1 Constitution
NOTES
A tribunal shall consist of one or more persons, such as
(a) Are or have been judge(s) of High Court
(b) Are or have been District Judge(s) for a period of not less than 3 years;
(c) Hold or have held the office of the chairman or any other member of labour
appellate tribunal or any tribunal for a period of not less than 2 years.
The government may, if it thinks fit, also appoint two persons as assessors to advise
the tribunal in the proceedings before it.
The functions and duties of the industrial tribunal are very similar to those of a body
discharging judicial functions. Although it is not a court, it has all the necessary attributes of
a court of justice. It may create new obligations or modify contracts in the interest of
industrial peace; protect legitimate trade union activities and prevent unfair practices and
victimization. The tribunals are required to give awards based on circumstances peculiar to
each dispute; and they are, to a large extent, free from restrictions of technical consideration
or rules oe evidence imposed on courts.
2.10.2 Jurisdiction
An industrial tribunal has a wider jurisdiction than labour courts. It has jurisdiction
over any matter specified in the Second Schedule or Third Schedule. The jurisdiction
covers the promoting of social justice, that is, fairness in the adjudication proceedings to all
concerned parties.
The matters specified in the Third Schedule are:
(1) Wages, including the period and mode of payment
(2) Compensatory and other allowances
(3) Hours of work and rest intervals.
(4) Leave with wages and holidays.
(5) Bonus, profit-sharing, provident fund and gratuity.
(6) Shift working, otherwise than in accordance with the standing orders.
(7) Classification of grades.
(8) Rules of discipline.
(9) Rationalization
(10)Retrenchment of workman and closure of an establishment
(11)Any other matter than may be prescribed.
The industrial tribunal has to hold judicial proceedings expeditiously and submit its
award to the appropriate government as soon as practicable on the conclusion of the
proceedings.
The Central Government may, by Notification in the Official Gazette, constitute one
or more national tribunals for the adjudication of industrial disputes which, in the opinion of
the Central Government, involve questions of national importance or are of such nature
that industrial establishment situated in more than one state are likely to be interested in, or
affected by, such disputes.
Constitution
A national tribunal shall consist of one person only to be appointed by the Central
Government, who: (a) is or has been a judge of a High Court or (b) has held the office of
the Chairman or any other member of the Labour Appellate Tribunal for a period of not
less than 2 years.
If the Central Government thinks fit, it may appoint two persons as assessors to
advise the national tribunal on the proceedings before it.
The Indian Labour Conference (held in Madras in July 1959) evolved a set of model
principles for reference of disputes to adjudication, according to which the central industrial
relations machinery is to take these principles into consideration before recommending
adjudication, and the government it required to consider them before referring to
adjudication. These principles were:
(1) All Duties ordinarily be refereed to adjudication on request.
(2) Disputes may, not, however, be ordinarily referred to adjudication:
(a) Unless efforts at conciliation have failed and there us no further scope for conciliation
and the parties are not agreeable to arbitration;
(b) If there is a strike or lockout declared illegal by a court, or a strike or lockout
resorted to without seeking settlement by means provided by law and without
proper notice or in breach of the Code of Discipline as determined by the machinery
set up for the purpose, unless such a strike or lockout, as the case may be, is
called off;
(c) If the issues involved are such as have been the subject matter of recent judicial
NOTES decisions or in respect of which an unduly long time has elapsed since the origin of
the cause of action; and
(d) If, in respect of demands, other legal remedies are available, that is, matters covered
by the Factories Act, Workmen’s Compensation Act, payment of wages Act, etc:
(3) Industrial disputes raised in regard to individual cases, that is, cases of dismissal,
discharge or any other action of management on disciplinary grounds, may be
referred for adjudication when the legality or propriety of such action is questioned,
and in particular:
The proceeding before a labour court, tribunal or national tribunal is deemed to have
commenced on the date of the reference of the dispute for adjudication.
The proceedings before the labour court, tribunal or national tribunal are deemed to
have concluded on the date on which the award becomes enforceable.
The Act provides that any information obtained by the labour court, tribunal or national
tribunal is not to be included in nay report or award.
(i) in the course of any investigation or enquiry as to a trade union or as to any other
individual business:
(ii) if such information is not available otherwise than through evidence before such
officer or court or tribunal.
(iii) If the trade union, person, firm or company in question has made a request in
writing to the authority concerned that such information shall be treated as
confidential.
Neither the authority nor any person present at or concerned in the proceedings is
allowed to disclose any information, or contents of any document claimed to be confidential,
without the consent in writing of the secretary of the trade union or other person, firm or
company , as the case may be.
The Central Industrial Relations Machinery was set up in 1945, with the Chief Labour
Commissioner as Head of the Department. The purpose was to give effect to the various
provision of the Industrial Disputes Act – for the prevention, investigation and settlement of
disputes in the industries in the Central sphere and the enforcement of awards, settlement
of other labour laws of which the responsibility is vested in the Central Government. The
specific functions of C.I.R.M are as under.
(1) “Prevention and settlement of industrial disputes in industries located in the central
sphere (for which the Central Government is “appropriate government” under the NOTES
Industrial Disputes Act, 1947)
(2) “Enforcement of labour laws in industries and establishments located in the central
sphere ((for which the Central Government is “appropriate government” under
the relevant labour laws).
(3) “Verification of Membership of trade unions in nationalized banks for identification
of the representative union to facilitate the appointment of workers director on the
board of directors.
(4) “ad hoc verification of membership of trade unions in major prots.
(5) “Verification of membership of registered trade unions affiliated to the Central
Trade Union Organisations (CTUOs) to determine the strength of CTUOs for the
purpose of giving representation to CTUOs on national and international force.
(6) “Enforcement of awards and settlements.
(7) “Conduct of enquiries into the breaches of code of discipline.
(8) “Promotion of Works Committees and workers’ participation in management
(9) “Collection of statistical information in the central sphere pertaining to industrial
disputes, work stoppages ages, labour situation and labour regulation.
(10)“Defence of Court cases and writ petitions arising out of implementation of labour
laws”
The C.I.R.M is located at Delhi, headed by the Chief Labour Commissioner (Central)
(C/L/C (C)). He is assisted by 31 officers who perform line and staff functions. In the field
set-up, C.L.C had 18 (RLC), 70 Assistant Labour Commissioners and 160 Labour
Enforcement Officers. So it can be said that C.I.R.M. is well spread in different parts of
country with zonal, regional and unit level formation as depicted in the organ gram.
The central machinery also includes Courts of Enquiry, labour courts, Indistrial and
National tribunal and the State Arbitration Board.
The CIRM with a view to check the exploitation of unorganized workers undertakes
inspection of the establishments with specific reference to enforcement of labour laws.
( P ) = Provisional
N.B.: Only those work stoppages which are on account of industrial disputes and which
involves 10 or more workers, whether directly and /or indirectly are included in the statistics
of Industrial disputes.
NOTES
UNIT III
LABOUR WELFARE
Learning Objectives
After going though this unit you should be in a position to explain the following terminologies:
• Concept of Labour welfare
• Welfare Measures – voluntary & non-voluntary
• Statutory welfare measures
• Welfare Funds
• Workers’ Education
• Training Schemes
3.1 INTRODUCTION
Industrial progress of country depends on its committed labour force. In this regard
the importance of labour welfare was recognized as early as 1931, when the Royal
Commission on Labour stated that the benefits which go under this nomenclature are of
great importance to the worker who is unable to secure by himself. The schemes of labour
welfare may be regarded as “a wise investment” which should and usually does bring a
profitable return in the form of greater efficiency. Twenty years later, the Planning commission
realized the importance of labour welfare, when it observed that “In order to get the best
out of a worker in the matter of production, working conditions require to be improved to
a large extent. The worker should at least have the means and facilities to keep himself in
a state of health and efficiency. This is primarily a question of adequate nutrition and suitable
housing conditions. The working condition should be such as to safeguard his health and
protect him against occupational hazards. The work place should provide reasonable
amenities for his essential needs. The worker should be quipped with the necessary technical
training and certain level of general education.
Labour and Labour Welfare sub-sector consists of six main programmes viz. Labour
Administration, Rehabilitation of bonded labour, Assistance to Labour Cooperatives,
Craftsmen training programme, Apprenticeship training programme, Employment Services
and Sanjay Gandhi Swavalamban Yojana.
79 ANNA UNIVERSITY CHENNAI
DBA 1748
The report of the Committee on Labour Welfare set up the Government of India in
1969 refers to welfare as a broad concept, a condition of well-being. It speaks of measures
which promote “the physical, psychological and general well-being of the working
population”. Welfare covers the families of workers, especially in India, well-being
encompasses that of their families.
Labour welfare implies providing better work conditions, such as proper lighting,
heat control, cleanliness, low noise level, toilet and drinking-water facilities, canteen and
rest rooms, health and safety measures reasonable hours of work and holidays, and welfare
services, such as housing, education, recreation, transportation, and counseling.
In India, welfare is of the statutory and the non-statutory kinds. Though statutory
welfare ensures a bare minimum of facilities and reasonably good working conditions,
employers are free to provide, or not to provide, non-statutory welfare. However, practically
all organizations in India provide non-statutory measures in varying degrees. Why are
such organizations involved in extensive welfare measures? These questions can be viewed
from the point of view of the workers, the unions and the employers.
From the viewpoint of workers, welfare measures must eliminate risk and insecurity.
This is to ensure their personal safety and provide them with equipment and atmosphere
needed to draw a fair day’s wage without any feeling of guilt. Given the workers’ economic
constraints, probably due to large families, organizations should provide facilities such as
transport, medical aid, crèches, and subsidized food required by worker.
Unions would like to secure several benefits to maintain their image. The role of
unions in welfare has also been influenced by the sociopolitical and legal environment and
the economy. Their role in labour welfare stems economy. Their role in labour welfare
services apart from those available to them as citizens and members of the community.
Therefore, unions feel that such services apart from those available to them as citizens and
members of community. Therefore, unions feel that such services ought to be provided
either by the Government or the employers. However, much depends on the initiative of
the unions, their bargaining strength and the priority given by the to the rights of the workers.
In organizations where unions have been assertive, welfare activities have been considerable,
while in unorganized sectors workers have not been able to derive sufficient benefit from
their employers.
3.3.1 A – Labour
Labour Administration
A brief description of the important schemes under the Labour Administration Sub-
Sector is given below. During Tenth Five Year Plan, 2002-2007 outlay of Rs. 568.00 lakh
is provided and Rs.40.00 lakhs is provided for Annual Plan 2002-2003.
(1) Training & Research Programme
It is proposed to train officers of the Labour Department in connection with various
Labour Laws implemented in the State. A provision of Rs.1.00 lakh is provided in
2002-2003 and outlay for Tenth Five Year Plan 2002-2007 is Rs.10.00 lakh.
(2) Scheme for wide Publicity to various Labour Laws.
It is proposed under this Scheme to regulate service conditions of workers and to
give publicity to various labour laws through the media like television, radio, short
documentaries, display of slides in rural theatres, video films, posters, folders and
newspapers etc. An outlay of Rs. 10.00 lakh is provided for Tenth Five Year Plan
2002-2007, and Rs.1.00 lakh for 2002-2003.
(3) Strengthening of Medical wing of the Directorate of Industrial Safetyand
Health
There are different types of industries in Maharashtra like heavy and light engineering,
heavy and light chemical industries, petrochemicals, pesticides, fertilizers, textile and
Electronic Industries. All these pose their own potential hazards, which may cause
acute And chronic side effects on the health of the workers. In Maharashtra, the
chemical factories which include heavy chemical complexes or small chemical factories
which may produce acute effects on the health of the workers to such an extent that
it may result in death. Pesticides spilled on the body of the workers are equally
dangerous. An outlay for Tenth Five Year Plan 2002-2007 Rs.200.00 lakh, out of
that an outlay Rs.5.00 lakh is provided in the Annual Plan 2002-2003.
(4) Improvement of communications, mobility of Factory Inspectors
For the quick transmission of messages relating to factory accidents, gas leaks, fires
and
(NCVT). This programme mainly deals with the training of craftsmen in various engineering
and non-engineering trades. NOTES
The syllabi for the various trade courses which are introduced in ITI’s are prepared
by NCVT. The courses are of one or two year’s duration. Some of the trade courses are
started under the aegis of State Council for Vocational Training (SCVT) to meet the local
needs. Accordingly at present training is being imparted in 58 different trades out of which
28 are of two years duration and remaining 30 are of one year duration. Out of these 58
trades, 41 are Engineering trades while remaining 17 are non-engineering trades. At present,
out of 58 trades, 4 are covered under the aegis of SCVT and remaining are as per syllabi
laid down by NCVT. The training in It’s is aimed at equipping the trainees with adequate
practical and theoretical knowledge of the concerned trades and to develop them into
semi-skilled craftsmen suitable for Industrial Employment or as an apprentice in the
designated trades under the Apprenticeship Act or to undertake self-employment ventures.
At present, there are 347 Government I.T.Is. and 269 non Government ITIs, with
intake capacity of 65704 and 30724 respectively. Government ITIs includes 15 ITIs for
women with intake of 3648 Women. There are 56 Government ITIs in tribal sub-plan area
with an intake capacity of 8692 trainees. 75% of the available seats in these ITIs are
reserved for scheduled tribes. In the ITIs in the general plan area 25% of seats in each
trade are reserved for women. Thus the total Number of ITIs in the State is 616 with
intake capacity of 94656. In order to extend the feasibility for vocational training to the
people, the State Government has taken a decision to set up in phased manner, one
Government I.T.I. in every taluka where no I.T.I. exists at present. In view of this out of
326 total talukas, all talukas are already covered by establishing mini ITIs.
The Training imparted in ITIs is skill oriented and in order to avoid any mismatch
between what is taught and what is needed, a systematic plan to improve upon the existing
training system was required to be evolved. Government of India in collaboration with
World Bank has undertaken “Vocational Training Project” Phase II for skill development
NOTES in ITIs and Maharashtra is participating in this project. Every care is therefore, taken to
fund adequately every activity covered under this programme.
The ITIs’ training is need-based and unless it is constantly updated, the same cannot
be of any use to the Industrial world. Updating of curriculum results in new requirement of
tools and gadgets, shop outfits and machineries. Further normal usage of such tools lead to
their wear and tear which ultimately results in the need for new tools. Thus, technological
advance, revision of syllabi and normal wear and tear results in deficiency of tools and
equipment. Outlay for Tenth Five Year Plan 2002-2007 is Rs.3082.00 lakhs, outlay for
Annual Plan 2002-2003 is Rs.786.26 lakhs.
Staff is created in ITI’s as per the norms laid down by DGE T in its training manual.
The requirements of staff in ITIs are related to its strength and additional staff is required to
be created with the increase in intake. However, the required staff is not provided at the
time of establishing new ITIs as well as introduction of additional seats. A review of staff
position has revealed that teaching as well as non-teaching posts are required to be created
immediately. Further to facilitate placement of ITI pass-outs and to promote their better
interaction with industries, posts of Training and Placement Officer in each ITI in the State
is created. Outlay for Tenth Five Year Plan 2002-2007 and Annual Plan 2002-2003 is Rs.
200.00 lakhs and Rs.10.21 lakhs respectively.
Acquisition of Land
In order to acquire land for the construction of ITI buildings, an outlay of Rs.100.00
is provided in Tenth Five Year Plan 2002-2007. The outlay for Annual Plan 2002-2003 is
Rs.17.06 lakhs.
At present, there are 347 Government ITIs out of which 95 institutes have their own
buildings and workshops. An outlay of Rs.9273.00 lakhs is provided for Tenth Five Year
Plan 2002-2007 and an outlay for Annual Plan 2002-2003 is Rs.4173.59 lakhs.
of Rs.100.00 lakhs is provided for Tenth Five Year Plan 2002-2007. An outlay for Annual
Plan 2002-2003 is Rs.19.49 lakhs. NOTES
Construction of Hostel Buildings for Trainees
The Trainees of ITIs come generally from economically lower strata of the Society.
Many of the trainees come from their villages to undertake ITI training and do not find
suitable place to reside. NCTVT has also fixed norms according to which 20 percent of
the trainees are to be provided with hostel facilities. An outlay of Rs.400.00 lakhs is provided
for Tenth Five Year Plan 2002-2007. An outlay for Annual Plan 2002-2003 is Rs.40.79
lakhs.
Introduction of additional seats in existing ITI’s
In order to take proper care of certain skill areas in the context of technological
advancement as well as development in other sectors viz: Electronic Industry, creation of
TV transmission centres, Refrigeration and Air Conditioning, development of petro-chemical
complexes, Plastic technology as also to train manpower in the field of Electronics with
particular reference to Computer Service etc., about 50,000 additional seats are to be
provided for. An outlay for Tenth Five Year Plan 2002-2007 is Rs. 6735.00 lakhs. An
outlay for Annual Plan 2002-2003 is Rs.403.36 lakhs.
Establishment of New ITIs
In order to reduce flow of unemployed youth to big cities, Government of Maharashtra
has decided to provide Vocational Education at Taluka level by establishment of ITI at
each Taluka level and to motivate them to start their employment/self-employment venture
incommensurate with local needs in rural area with the concept of disposal of industries to
cope-up with the local needs and promote self-employment in each sector. An outlay in
Tenth Five Year Plan 2002-2007 is Rs.2498.10 lakhs. An outlay for Annual Plan 2002-
2003 is Rs.275.75 lakhs.
Introduction of trade of more demand in lieu of trades of less demand
For arranging need based training programme and to establish a strong linkage between
training and employment opportunities, review of the training courses in different ITIs
particularly old ITIs, for starting new trades becomes essential. For introducing popular
and upcoming trades in place of trades having less demand an outlay for Tenth Five Year
Plan 2002-2007 is Rs.3911.00 lakhs and an outlay for Annual Plan 2002-2003 is Rs.120.87
lakhs.
Expansion of Evening Classes for Industrial Workers
The scheme for imparting part-time training to industrial workers (evening classes)
was initially introduced in the year 1950 in order to improve the theoretical knowledge of
the industrial workers who could not get benefit of systematic institutional training. The
training under this scheme is arranged in the evening and there are 12 such centres. An
NOTES outlay of Rs.1.50 lakh is provided for Tenth Five Year Plan 2002-2007.
Opening of Book Banks
Outlay for Tenth Five Year Plan 2002-2007 is Rs.275.00 lakhs. Outlay for Annual
Plan 2002-2003 is Rs.52.80 lakhs.
Removal of Backlog
With a view to remove the remaining financial backlog for construction of Administrative
Buildings and workshops under backlog programme, outlay provided for 2002-2003 is
Rs.3622.00 lakhs.
Apprenticeship Training Programme
The Apprenticeship Training Programme is implemented under Apprenticeship Act,
1961 enacted by the Government of India under which training facilities in industrial
establishments and manufacturing process are to be utilised for the purpose of training
candidates in the skilled and semi-skilled areas. Govt. of India has already designated 128
trades in the various areas such as Engineering, Chemical, Food, Agriculture, Electronics,
Textiles, etc. The training programme is divided in 3 phases (1) Basic Training (2)
Shop floor Training and (3) Related Instructions. There are 48 Government and 64 private
Basic Training and Related Instructions Centres set up so far. The intake capacity of Basic
Training is 5921 and Related Instructions is 21,259. In Maharashtra State, 29000 seats
are located in 2288 industries and 20900 apprentices are undergoing training at present, in
various trades. Large number of chemical industries is coming up in the State and the Basic
Training and Related Instruction Centres where the Training is imparted in these trades are
not having sufficient tools and equipment for the purpose so also there is deficiency in
equipment in printing trade. Facilities in the existing Basic Training and Related Instructions
Centres are inadequate. Outlay for Tenth Five Year Plan 2002-2007 is Rs.117.50 lakhs.
Outlay for Annual Plan 2002-2003 is Rs.12.14 lakhs.
Direction and Administration (State Level) Strengthening of the Directorate of
Vocational Education Training, Six Regional Offices, Establishment of Project Management
unit in the Directorate.
Training activities related to Craftsmen Training and Apprenticeship, etc. have increased
tremendously since last 2-3 decades. However, the Directorate is not adequately
strengthened. For smooth and effective functioning of the organisation at State Level,
continuous evaluation and monitoring is essential, to know any defects in the process and
the feed back which enable to take corrective action for maintaining both effectiveness and
efficiency. For this purpose the offices of the Director and Regional Deputy Directors are
required to be strengthened adequately. An outlay for Tenth Five Year Plan 2002-2007 is
Rs.55.00 lakh. An outlay of Rs.11.00 lakh is provided for Annual Plan 2002-2003 is
Rs.11.00 lakhs.
86 ANNA UNIVERSITY CHENNAI
INDUSTRIAL RELATIONS AND LABOUR WELFARE
Outlay for Tenth Five Year Plan 2002-2007 is Rs.250.00 and outlay for Annual Plan
2002-2003 is Rs.40.00 lakhs.
In the field of Vocational Training updating of skills and knowledge is highly essential
to meet the challenge of changing technology and production techniques. Further, in order
to develop teaching skill training is essential to teachers. Therefore, one year duration
Trade Instructors Training is given through Advanced Training Institutes. Refresher training
programme in AVTS/AVIS Centres, special training programme arranged by CSTARI
Calcutta, Machine Maintenance Training etc. It is proposed to expose at least 400 instructors
every year for short duration (6 to 12 weeks) Programmes.
As far as I.T.I. training is concerned, due to diversified nature of trades, the work
related to development of training material, analysis of syllabii preparation of training aids
etc. being vast that separate cells for research and development activities and trade testing
are essential. Many technical issues and problems arise in daily working. Such issues and
problems can be properly tackled through Research and Development Cells.
The outlay for ITI in Tenth Five Year Plan 2002-2007 is Rs.30651.00 lakhs and
2002- 2003 is Rs.8913.16 lakhs.. This includes Rs.816.08 lakhs under TSP, Rs.56.66
lakh under
3.3.3 C – Employment
NOTES
Employment Services
At present, in 8 tribal districts such centres are functioning. An outlay of Rs.0.25 lakh
is provided for 2001-2002 and Rs.7.26 lakh for Annual Plan 2002-2003 and the outlay
for Tenth Five Year Plan 2002-2007 is Rs.282.80 lakh.
This scheme is in operation since 2nd October 1980 and it gives coverage to both
educated and uneducated, unemployed/underemployed persons who are not able to get
financial assistance from Banks or other financial institutions because of their inability to
provide adequate security or margin for loans. The scheme envisages grant of interest free
small loans not exceeding Rs. 2500 to the needy persons so as to enable them to have a
gainful employment/ self-employment by setting up their own ventures in small trade /
business/ services/ tiny industry etc. An outlay of Rs.1362.00 lakh is provided for Tenth
Five Year Plan 2002-2007, out of which Rs.284.57 lakh is for the Annual Plan 2002-
2003.
Under the Labour & Labour Welfare Sector, total Tribal Sub Plan outlay provided
for 2002-2003 was Rs.836.41 lakhs and Rs.37.24 lakhs for Annual Plan 2002-2003.
Under the Labour & Labour Welfare Sector, Special Component Plan outlay provided
for 2002-2003 was Rs. 156.86 lakhs and Rs.155.16 lakhs for Annual Plan 2002-2003.
All India Organization of Employers, an allied body of FICCI has been serving the
cause of Indian enterprises by promoting sound industrial relations and better understanding
between employers and workers on the mutuality of interests, for about 75 years AIOE,
which celebrated its Golden Jubilee in 1983, had instituted an award for outstanding
contribution in the field of industrial relations. The Award, which is open to companies, will NOTES
be given for innovative work done in the field of industrial relations. The concept of
Outstanding Organisation - Industrial Relations will include innovative approaches to foster
harmonious industrial relations through bipartite mechanism, reducing conflicts and Mandays
lost and promoting employers’ welfare and development avenues, contributing to higher
motivation, morale and productivity improvement. The quality of industrial relations climate
or environment in the place or area in which an establishment operates, will also be a
deciding factor while judging the performance. Eligibility for Award, criteria and general
guidelines, will be the same as given for FICCI awards. The Award is a plaque with
suitable citation.
Besides the General Information of the organization, the following Award Specific
Information should also be submitted:
• Whether Works Committees have been set up: if so, details about their composition,
NOTES functioning and settlement of issues referred to it.
• State of industrial relations in the place/area in which the industrial establishments
of the applicant are situated and impact thereof if any, on the industrial relations
situation of the company.
• Voluntary welfare measures initiated by the company.
• Whether the company has initiated steps towards involving workers’ in various
decision making process.
• Formal as well as informal forums & number of committees.
• The system of communication adopted with employees & its relevance in the
industrial relations.
• Record of the company with reference to various clauses of standing orders.
Introduction
After Independence the Government of India passed several acts, e.g., the Factories
Act, the Employees State Insurance Act, the Minimum wages Act, the Payment of Wage
Act, and the Industrial Dispute Act, to ensure fair deal employees in various aspects of
their jobs. We will concern ourselves with the Factories Act and Employees State Insurance
Act. An attempt will be made to briefly describe them and then comment on them.
The Factories 1948, was conceived in 1881 when legislation was enacted to protect
children and to provide health and safety measures. In 1911, the hours of work were
regulated and incorporated in the act. In 1934, following the recommendations of the
Royal Commission of Labour, the act was amended. A more comprehensive legislation to
regulate working conditions replaced the act in 1948.
The 1948 amendment lays down basic minimum requirements for the safety, health
and welfare of factory workers. In is applicable to industries and factories in India employing
10 or more persons and using power. Industries and factories not using power but employing
20 or more persons on any day of the preceding 12 months are covered by the act. Mined
and plantations are excluded because they have their own legislations. Although the act is
a central legislation, state governments administer and enforce it through their inspectorates. NOTES
The Factories Act, 1948 comprises 11 chapters and 120 sections with a schedule
listing notifiable diseases. Sections 42 to 50 of the Factories Act, 1948 list the statutory
welfare measures to be provided for the welfare of its workers. They are as follows: The
number mentioned in the left extreme are the actual section number as found in the Act.
The State Government may, in respect of any factory or class or description of factories,
make rules requiring the provision therein of suitable places for keeping clothing not worn
during working hours and for the drying of wet clothing.
(2) The shelters or rest rooms or lunch rooms to be provided under sub-section (1)
shall be sufficiently lighted and ventilated and shall be maintained in a cool and NOTES
clean condition.
(3) The State Government may –
(a) prescribe the standards in respect of construction, accommodation, furniture
and other equipment of shelters, rest rooms and lunch rooms to be provided
under this section;
(b) by notification in the Official Gazette, exempt any factory or class or description
of factories from the requirements of this section.
Non-statutory welfare activities are more difficult to budget than salary. They often
turn out to be more expensive than had been visualized. Under such circumstances, the NOTES
management becomes extremely critical of this activity.
Productivity, on the other hand, has been found to be determined largely by the
quality of be determined largely by the quality of machines and raw materials, R&D, industrial
relations, institutional set-up, ability and skills of work force, incentive systems, etc.
Publications on non-statutory welfare in Indian industry are meager, hence not mush
is known of the expenditure incurred by industries. Most of the data available are an
amalgam of the expenses of both statutory and non-statutory welfare activities. The report
of the Committee on Labour Welfare cites some figures on the expenditure incurred by
various steel plants and railways on non-statutory welfare activities.
The major welfare activities of railways are housing, education, co-operatives, and
co-operative credit and store. In addition, health resorts and holiday houses are provided.
Over the last 15 years, starting 1951, the average expenditure on staff welfare has increased
NOTES from Rs 34 per employee in 1950-51 to Rs 148 per employee in 1966-67. In 1966 - 67.
It constituted approximately 0.6 per cent or the total cost of staff for as many as 13.6 lakh
employees. In other words, an expenditure of about Rs. 20 crores on non-statutory
welfare.
Why has such heavy expenditure been incurred on something not directly related to
productivity? Goyal suggests that these are investment in men which are expected to bring
a change in their attitude, which may in turn be reflected in turnover and absenteeism.
They are compensations, or a price to reduce the worker’s alienation from work.
Non-
statutory Company
Productivity
Welfare Satisfaction
Thus, non-statutory welfare has been perceived to being allegiance to the organization
to being allegiance the organization that has bestowed facilities to the employees. The
assumption generally has been that increased allegiance and loyalty to the organization will
result in high productivity. Even if we assume that there is a high positive correlation
between company satisfaction and productivity is not all that obvious.
Is satisfaction with the company or company loyalty and allegiance a passport to high
productivity? The answer is not very clear cut. Several surveys and studies on the
relationship between company satisfaction and productivity have given very inconsistent
between the two while others have found some indication of a positive relationship mediated
through moderator variables.
Thus, in the existing model, through it may be true that non-statutory welfare can
lead to high company satisfaction; it is doubtful if high company satisfaction will necessarily
lead to high productivity. Hence, if the concern is with increasing productivity, the existing
model has to be modified. The model suggested here reverses the position of productivity NOTES
and company satisfaction. The new model is represented below:
Non-statutory Company
welfare Productivity satisfaction
This model suggests that non-statutory welfare will directly influence productivity.
Once this relationship is established, high productivity may lead to high satisfaction.
Job enrichment as a process of making a job more meaningful has caught the attention
of a large number of industrial organizations. Job enrichment has the potential to enhance
productivity and employee satisfaction if changes in jobs are perceived as opportunities
rather than as demands. As a process of making a job more interesting and providing
opportunities for achievement and growth, it concerns discretion and contents of the job.
Increase in both leads to variety, les, boredom, and less alienation. Experience with this
process in both Indian and foreign industries have been very encouraging6. It has shown
a definite increase in productivity and employee morale.
Various features of physical environment have been manipulated in both field and
laboratory experiences to understand their effect on output. Such physical features as
illumination, noise, vibration, colour and music have been experimented with extensively.
We will discuss illumination and noise to give an idea of their impact. The discussion will
take into account research generalization without going into details of methodology.
Illumination daylights is the best illumination for work. In absence of daylight, artificial
light is needed. However, if this artificial light does not approximate daylight it might put a
severe strain on the eyes.
Tasks requiring precise manipulation require more intense illumination than tasks
involving the manipulation of large objects. Distribution of light is equally important. A
situation where illumination covers the total work environment rather than concentrating a
single aspect of the work area is better. In the case of the latter, whenever the visual field
is shifted to a poorly illuminated surrounding, it dilates the pupils. Excessive papillary
activity causes fatigue and eye strain.
Noise is generally considered a destructor. When the noise level is high an employee
has to concentrate more or exert greater efforts to perform. Similarly, if the noise is NOTES
intermittent greater efforts are required unlike in a situation where it is constant. In fact, the
constancy of noise reduces its distracting characteristic and the person adapts himself to it
more easily. In such cases sudden silence may become more distractive than continuous
noise. However, if noise is part of the work it does not affect workers as much as it does
when it is extraneous. A typist, for example, may not find the clatter of the typewriter
distracting unlike the person sitting next to him. In addition to illumination and noise, such
factors as colours, vibrations and music have also been found to affect performance.
Whether it is noise or bad illumination, the maintenance of productivity is at the expense of
the worker. He must exert additional efforts to maintain his output. Noise and bad
illumination, for example, lead to increased muscle tension and metabolic rate. The
physiological change brings about accumulation of waste products and depletion of
carbohydrate reserves leading to fatigue with a consequent effect on output.
The following section will look briefly at fatigue and boredom as effects of increased
illumination, noise, vibration, etc.
Fatigue and boredom both fatigue and boredom is important phenomena because of
their affect on industry. Their effect often becomes apparent in increased spoilage and
decreased output in addition to a greater possibility of accidents and high absenteeism.
the length of work periods, introducing several rest pauses, job rotation, job enrichment
NOTES and work teams. Boredom, sometimes referred as “mental fatigue” refers to the subjective
aspect of fatigue.
Some of the measures to reduce boredom have been limited by varied factors such
as the level of intelligence, complexity of the task, and the personality of the employee.
Extroverts tend to experience boredom more easily because of their dependence on outside
stimulation, while older employees and those who prefer regularity in their activities are
less bored doing repetitive work. Work that does not provide job satisfaction in most
cases has been found to cause boredom. Again, job enrichment, worker’ participation,
job enlargement, etc., are some of the ways to increase both job satisfaction and productivity.
Several research studies have shown that living organ isms brought up in enriched, as
compared to impoverished environments, show marked changes in abilities and skills. For
example, a longitudinal study conducted on the intellectual development of adopted orphans
in Beirut showed that while in the orphanage their I.Q. remained at approximately 50
(showing a very show growth rate of intelligence), on adoption by families their intelligence
developed at a normal rate. The stimulation by way of attention in adopted homes was
found to explain the normal growth of intelligence.
As shown in the figure, increasing stimulation leads to increased output, out only up to
a point. Beyond this, increase in stimulation lead to decrease in performance. Thus the NOTES
relationship between performance and stimulation is curvilinear. Changes in working
environment can bring about an increase in output if these are carried to an extreme they
can influence output negatively. Some illumination, noise, colour, etc., may be good for
output but an excess of the same can be good for output but in excess the same can
produce negative effects. The explanation is simple. Man wants to control his environments
and also the degree of stimulation he is exposed to – in this case his work environment,
e.g., when this control is out of his hands it is illumination, noise flow of raw material, etc.
hardly a source of enjoyment.
3.8 LABOUR WELFARE FUNDS
3.8.1 Tripartite Labour Welfare Fund Advisory Committee
With a view to catalyze labour welfare activities, a separate tripartite advisory committee
has been constituted by the government both at the Central and State level under each
labour welfare fund scheme. At the central level, the scheme is looked after by the union
ministry of labour. The state advisory/committee is headed by the concerned State Labour
Minister. Most of the welfare activities are organized directly by labour welfare organizations
for undertaking welfare work, adequate financial assistance is made available to them and
the employers through subsidies
Level of assistance
The central Government has taken several steps to streamline the various welfare
activities with a view to increase their “welfare Content” and extend their coverage. The
report of the task force appointed by the government for looking into the problems of
labour welfare was examined by a high level empowered committee. It look a series of
decisions for enhancing the scope of welfare activities. One of the important
recommendations of the Committee was that the various welfare schemes undertaken
against different welfare funds need to be adequately financed by the government.
Labour Welfare Facilities under Welfare Funds
The annual reports of Ministry of labour have given a detailed account of various
labour welfare facilities made available to workers under different welfare funds. A gist of
which is discussed here in somewhat detail.
(a) Assistance of Medical Facilities: There exist a elaborate system under which
a variety of medical facilities are provided to mine workers.
(b) Assistance for Educational Facilities: The worker’s education and training
been recognized as one of the key areas of labour welfare. In the changed socio-
economic milieu, in the recent past, the need for effective educational programmes
for working class in general and that of women, ST/SC workers in particular, has
increased manifold. It is heartening to note that the government has well – responded
to this need of workers, which obvious from the fact that during 1993 – 94 as
much as Rs. 455.99 lakhs were incurred on this head from the labour welfare
NOTES fund. As a result of this, 1,38,427 beedi, mine and cine workers were benefited.
(c) Assistance for Recreational Facilities: With a view to cater recreational
requirement of workers, the labour welfare organization provides a variety of
recreational and cultural facilities to them through a Multipurpose Institute (MPI)
and Development Multipurpose Institute (DMPI) and Welfare Centers. The labour
welfare activities undertaken by these institutes include:
(1) Education of children and adults.
(2) Sports and games for adult and children.
(3) Motivation or workers.
(4) Mid-day meals to children.
(5) Training for female dependants of miners in tailoring and embroidery
For the recreation miners and beedi workers during 1922 – 93, a sum of Rs.11.89
lakhs was incurred on various recreational activities.
(d) Assistance for Housing Facility: Under the various welfare programmes, top
priority is accorded to housing facilities. Towards this end, the financial assistance
is given to workers under all the housing schemes. Besides this, and additional
subsidy of Rs. 1700/- is also made available to workers under “Build your own
house” scheme for beedi and mine workers. The workers who have adopted a
planned family aso enjoy a corresponding reduction in the loan liability.
ILO/UNFPA Assisted Project on Family Welfare Education
An ILO/UNFPA assisted project on family welfare education for Beedi workers is
under implementation in the major beedi producing, states namely Madhya Pradesh, Uttar
Pradesh, Orissa and the West Bengal since February 1992. The main features of project
as specified by the annual report of Ministry of Labour 1944 – 95 are as under.
(a) “The abject of the project is to educate, motivate and provide health and family
welfare services to the Beedi workers and their families through the 58 dispensaries
being run in these States under the Beedi Workers’ Fund. The target is to bring
abut improvement in couple protection rate by 25% of the level existing at the start
of project and to meet the national goal of 60% protection and net reproduction of
one by 2000 AD.
(b) Field workers numbering 390, have been selected from amongst the Beedi Workers
trained and deployed under the project. Refreshing training has also been imparted
to them. Further, 900 TBAS (Training Birth Attendants) have been identified and
are being trained. Dispensable delivery kits are being procured from DWACRA
(Development of Women and Children in Rural Areas) groups fro supplying to the
TBAS have also been trained under the project; health camps are also being
organized at the dispensaries. Fifty – four Mahila Mandals have been formed at all
static and static – cum – mobile dispensaries. The workers are holding monthly
motivational meeting. Along with stress on also been included in the project.”
The Life Insurance Corporation of India has implemented a social security scheme
for unorganized workers in Twenty – three occupations, by creating a social security fund
from its contribution and that of Government of India. The occupations which are covered
under the scheme are:
(1) Beedi Workers
(2) Brick – Kiln Workers
(3) Carpenters
(4) Cobblers
(5) Fishermen
(6) Hemals
(7) Handicraft Artisans
(8) Handloom Weavers
(9) Handloom and Khadi Weavers
(10)Lady Tailors
(11)Leather and Tannery Workers
(12)Physically Handicapped Self-employed Persons
(13)Primary Milk Producers
(14)Risckshaw Pullers/Auto Drivers.
(15)Safai Karmacharis
(16)Salt Growers
(17)Tendu Leaf Collectors
(18)The Urban Poor
(19)Forest Workers
(20)Sericulture
(21)Toddy Tappers
(22)Powerloom Workers
3.8.2 Conclusion
Prof. Krakaldy observed, “The whole field of welfare is one in which much can be
done to combat the sense of frustration of the industrial worker, relieve him of personal
and family worries, to improve his health, to afford him a means of self-expression, to offer
him some sphere in which he can excel all others. If within the field of welfare and particularly
NOTES that part of which comprises sports and games a large measure of self-government can be
left to the workers, even in the management of facilities provided by the employer , a sense
of responsibility, imitative and co-operation can be fosterd and often among those whose
daily tasks afford them the least opportunity of developing characteristics so essential to
industrial enterprise and wise citizen.
Labour welfare has tremendous potentialities for fostering good industrial relations in
India. Hence, we knight use scientific procedures for labour welfare and organization and
the labour force must be directed in right channels in our fast developing technological
machinery.
“Ignorance, ill-health and dirt are the three giants” labour warfare ahs to fight in the
home life, personal life, work life and community life of the workers. They have to be
fought our steadily on all sides. In the coming years, the labourers shall be made mightier
than the machine with which he works, more fruitful than the dust on which he treads and
richer that the earth into which the digs.
Decent wages, adequate perquisites, and safe and clean work environment are basic
to all other actives in the area of human welfare, and therefore, the enterprises which
reduce the wages bill on these counts are sure to lose the goodwill of employees.
3.9 WORKER’S EDUCATION AND TRAINING SCHEMES
3.9.1 Worker’s Education: Concept
“Workers; education” connotes different meanings for different countries on account
of developmental, cultural and historical reasons. For instance, in the United States of
America, workers’ education is considered as synonymous with training in trade union
leadership whereas “the U.K., it covers trade unionism, in general, adult education, and
vocational education. In many Western European countries, the term, “workers’ education”
refers to education in citizenship (folk schools in Denmark, Laven schools in Germany). In
developing countries like India, the term, “workers’ education” is used in its wider
connotation and aims at making the worker a better operative, a better union member and
a better citizen.”
In the words of William Flayed, “workers’ education” is an attempt on the part of
organized labour to educate its own members under an educational system in which the
workers prescribe the courses of instructions, select the teachers and in a considerable
measure, furnish the finance.”
In this context, Florence Peterson observed: “The term workers’ education, as
commonly used, is not a generic term but has specific connotation. It is a special kind of
adult education designed to give workers a better understanding of their status problems,
rights and responsibilities as workers, as union members, as consumers and as citizens.”
The basic objective of workers’ education is to make the worker an efficient individual,
disciplined trade union member and an intelligent corporate citizen, so that he plays a vital
role in the socio-economic development of the country. Traditionally, workers’ education
programme can be viewed as one which intends to strive for objectives like:
(i) To foster workers” loyalty towards the union and imparting the necessary training
to them for intelligent and efficient participation in union activities. Besides teaching
them trade union dynamics, history etc., which they need to know as trade union
members.
(ii) To develop the worker for good and respectable civic life.
(iii) To promote among workers a greater understanding of the problem of the country’s
economic environment and their privileges, rights and obligations as union members
and citizens.
(iv) To develop trade union leadership from among the rank and file thereby keeping
the union away from the clutches of politicians, leading to democratization of trade
union administration.
(v) To familiarize the workers with the capitalist culture and philosophy this is the soul
of modern industrial system.
(vi) To inculcate among workers a better understanding of their duties responsibilities
and intricacies of work, so that they can effectively carry out their jobs.
(vii)To enable the worker to realize the purpose of human life and raise him to the
NOTES height of achievement.
(viii)To equip organized labour to take its place in a democratic society so that it plays
a dominant role in the process of economic development and fulfils effectively its
social and economic functions and responsibilities.
The workers’ education programmes may be organized in the industry premises itself.
The workers may also be given practical training in the field. The extension work too, may
form a part of the programme of workers’ education.
Besides, these modern teaching methods are also deployed and for this purpose, a
number of educational aids can be used-video tapes, films, film strips, recordings, pictorial
charts, flash cards, posters, graphs, maps and diagrams, wall newspapers, etc.
The demonstrations, talks, tests, seminars, debates, role-playing, symposia, case studies
and two-way communication methods are also encouraged. The educational visits and
study tours of the trainees to union offices, factories and multipurpose projects are important
aspects of workers’ education.
industrial peace and harmony, the development of healthy labour management relations,
quality of citizenship, awareness of one’s rights and responsibilities, and the need for the NOTES
development of solidarity among workers – these call for a varied programme of workers’
education which the resources at the disposal of the trade unions cannot undertake.
These qualities on the part of the workers would be forthcoming more easily if they
are made better workers and better citizens through a programme of workers’ education.
The Royal Commission on Labour remarked thus; “In India, nearly the whole mass
of industrial labour is illiterate, a state of affairs which is unknown in any other country of
industrial importance. It is almost impossible to overestimate the consequences of this
disability, which are obvious in wages, in health, in productivity, in organization and in
several other directions. Modern machine industry depends in a peculiar degree on
education, and the attempt to build it up with an illiterate body of workers must be difficult
and perilous. We would emphasize the fact that precisely because of this; the education of
industrial labour should receive special attention.”
3.9.5 The Scheme for Workers’ Education
The Workers’ Education Scheme was launched in 1958 by the Central Board of
Workers’ Education (CBWE). The Board is a tripartite body registered under the Societies
Registration Act, 1860, which consists of a Chairman (nominated by the Government),
representatives of the Central and State Governments, representatives of the Central Trade
Unions and the employers organizations, representatives of University Grants Commission
Indian adult education association and one independent trade unionist nominated by the
Ministry of Labour and Employment. The total number of members does not exceed 20.
At present, the board consist of one Chairman, one ex-office secretary and 14 members.
The board has a network of 48 regional centers located in for zones, with offices at
Bombay, Calcutta, Delhi and Madras, and 14 sub-regional centers located in different
parts of the country. For each regional centre, a regional advisory committee has been
constituted to review the progress of the scheme in the region to suggest measures for the
proper implementation of the programme and to guide the centre.
The board aims at:
(i) Inculcating among all sections of workers a sense of patriotism, national integrity,
secularism and pride in being an Indian;
(ii) Equipping them for their intelligent participation in social and economic development:
(iii) Developing among them the “Nation First” approach; and
(iv) Instilling in them greater understanding of the problem of their social and economic
environment, their rights and obligations as citizens, as workers in industry and
responsibility towards family members. The board also aims at developing among
workers a sense of responsibility so that they can shoulder responsibility of trade
union leadership.
It is the most important level of the workers’ education programme, as it aims at the
education of members of central trade union organizations and federations, pre-
employment training of educational officers (also known as teacher administrators)
and refresher courses for board officials. The prospective educational officers are
directly selected from the open market. Generally, persons with the masters’ degree
in economics, commerce or education with three years of work experience in the
field of human resources management, are chosen for the task. They are given six
months’ intensive training before being placed on the job in different regional centres.
The training staff includes union leaders, employers’ representatives, educationists,
administrators and the like. These officials in turn after the successful completion of
their training courses are posted at regional centres on the basis of their regional
linguistic proficiency. With each batch of education officers, to be trained, generally
its board’s practice to include a fair number of trade union workers from central
organizations, so that the trainers may be acquainted with trade union problems. The
union problems. The union nominees also get the facilities to widen their interests and
add theoretical knowledge to their practical background.
among the workers in a full-time training course of three months’ duration in batches
of about 25-30 persons. These selected workers are known as “worker-teachers”. NOTES
they are selected by the local committee and by the director of regional centres from
various industrial units and workshops in the region and are sponsored by their
respective employers or trade unions. These selected workers deputed for training
by the employers are considered to be on duty and are paid their usual wages and
allowance.
(3) The Unit Level
The third level in the programme of the workers’ education scheme relates to the
training of rank-and-file workers by the specially trained worker-teachers at the unit
level. The workers so trained at the regional level revert to their places of employment
and conduct programmes at the unit level, largely after working hours. The regional
centres closely supervise the work at different units and assist and guide worker
teachers in conducting their classes efficiently and smoothly.
Since no hard and fast rules have been framed for the selection of workers for classes
at the unit level, worker-teachers have to exercise their discretion while selecting the workers.
As most of the workers are illiterate, there is no hard and fast rule for their selection for the
course. Generally, preference is given to workers having some educational background.
Further, workers in the age group of 24-45 years of age are given priority. The selection of
the workers for the course is exclusively prerogative of worker-teachers as they have
close association with the units of workers.
The worker-teachers conduct three months part-time course for workers at the unit
level, besides three weeks’ full-time course in those units which deputes workers for the
course. The syllabus for the course is trade union-oriented and covers subjects; workers
and trade unions, workers and industry, worker, his family and his country etc. The
honorarium for the worker-teachers are decided and revised by the board.
At the unit level, the management usually provides facilities of accommodations,
furniture, etc. Some of the organizations also give 45 minutes time-off to workers to enable
them to attend classes. Every trainee at the unit level who puts in more than 90 per cent
attendance and takes keen interest in training is awarded a certificate by the regional centre
after the successful completion of training.
3.9.7 Special Category Programmes
Besides the aforesaid three levels of workers’ education, a host of special educational
programmes are also organized for the benefit of workers. Against of such programmes is
discussed here in some detail:
3.9.7.1 Programme for Women Workers
With the Government’s increased emphasis on the betterment of women workers,
the board has started a separate programme for them. During 1986-1987, “62 women
worker-teachers, 448 women workers at the unit level, 29 women worker teachers in
109 ANNA UNIVERSITY CHENNAI
DBA 1748
refresher courses, 24,616 in rural programmes, 4, 350 in the unorganized sector and 156
NOTES stone quarry workers have been trained. A special cell, for the training of women workers
was set up at the Indian Institute of Workers’ Education (Bombay) in November 1991.
For the training of women workers, a modular syllabus for advanced training and special
training material has been prepared. During 1993-94, under the programme, 70, 004
women workers have been trained.
3.9.7.2 Programme for Unorganized Workers
For the education of unorganized workers, a programme was started way back on
October 1, 1979. This programme is basically meant for the workers of handlooms, power
looms, khadi and village industries, industrial estates, SSI, sericulture, coir and beedi
industries. The programme is generally of five days’ duration and is conducted at the regional/
sub-regional or semi-urban areas. During the period between January and December,
1994, the board conducted 244 five-day programmes in which 9,675 women workers
participated.
3.9.7.3 Programme for Rural Workers
In 1977-78, the board launched a pilot project for the education of rural workers. It
intends to create awareness among rural workers about their soci-economic environment
the need for developing their organization and the benefit available under the various credit
schemes. The C.B.W.E has developed this programme keeping in view the needs of
workers, especially in the field of industrial health, safety and environment. These
programmes cover landless labour, agricultural workers, rural artisans, forest workers and
unemployed workers in rural areas. As a part of nation’s effort to increase the literacy of
workers, especially among women and persons belonging to ST/SC and other educationally
backward classes. The programme includes.
(1) One month’s training course for rural educators.
(2) Five-day training programme for rural volunteers.
The C.B.W.E. also conducts special programmes of functional literacy for workers
engaged in plantation and mines, where the level of literacy level is exceptionally low,
During January, December 1994 in 385 sessions, 9,098 workers were trained.
The board also organizes leadership development courses to equip the trade union
activities with the necessary knowledge, understanding and skills of leadership to enable
them to function effectively and also to participate in different programmes at community
and enterprise levels. This scheme was started during Sixth Plan between January /October
1993, in 112 programmes organized in which were 2,433 workers participated.
In India, there is an acute shortage of skilled and trained workers for a number of
industrial occupations and a majority of workers suffer from low efficiency, which necessarily
means that the rate of skill formulation has been low. Besides, factors like social attitude to
industrial work, differentials between the income of skilled and unskilled workers, and the
training and educational facilities available in the country, the educational system has been
responsible for this state of affairs. To bring about any change in these is an uphill task. But
for rapid industrial development, the provision of training facilities for workers is the need
of hour. This training pre/supposes a sound bases of universal literacy, proper planning and
utilization of trained personnel, and properly and designed training programmes. Needless
to say, training leads to efficiency and increased productivity, less waste, reduced
supervision, higher employee earnings, reduced accidents, increased organizational stability
and flexibility, heightened moral and vertical job mobility.
Various schemes of vocational training and apprentice ship were in operation such as:
(a) The apprenticeship and higher training in railway workshops, a technical school
and the staff college for the railways;
(b) The well/defined apprenticeship schemes in Sone Valley Portland Cement
Company; the Assam Oil Company; the Tata Oil Mills Co., the Tata iron and
Steel Company, the Tinplate Company of India and some engineering works in
Bombay, Bengal, U.P. and Punjab.
(c) The training was also organized in the dockyards at Bombay and Calcutta Port
Trusts, and port workshops at Calcutta, Madras and Vishakapatnam and some
municipalities; and
(d) In several unorganized industries, such as carpet weaving, bidi and cigar-making,
NOTES and mica-splitting, training was provided to working children in the process of
getting help from them.
To build up the career of young persons and to supply a constant stream of trained
personnel to industries, the Director-General of Employment and Training (DGET) has
designed a number of training programmes.
training is provided either free or on a nominal tuition fee. Every trainee is provided a
stipend of Rs. 40 per month besides free workshop clothing’s, hostel accommodation and NOTES
medical facilities. Up to July 31, 1992, the total number of ITI’s where such training is
provided were 1,028 with an intake capacity of 3,97,716.
3.10.1 2 Craft Instructor’s Training
Six training institutes, each located at Bombay, Calcutta, Hyderabad, Kanpur, Ludhiana
and Central Training Institute at madras train craft instructors required by it is and apprentice-
training establishments. In 1982 these were upgraded to Advanced Training Institute (ATI),
which impart one-year comprehensive training both in skill development and principles of
training. The modular pattern of training for craft instructors is being imparted at C.T.I.,
Madras and A.T.I., Hyderabad. The trades in which training is imparted is like this, for
printing trades ATI, Kanpur. Farm mechanics at ATI, Ludhiana, millwright trade at ATI,
Kanpur, Howrah and Ludhiana and at ATI, Bombay, chemicals and weaving. As on October
93, the total intake capacity of all these centres is 1,115. During period expired on October,
there was full utilization of capacity.
3.10.1 3 Advanced Vocational Training
This scheme was started in October 1977 to provide training to highly-skilled workers
and technicians in a variety of advanced and sophisticated skills not available under the
vocational training programme. This scheme was undertaken with the assistance of UNDP/
I.L.O. under which six ATI’s of State Governments were modernized. The advanced skill
training courses are offered at 6 ATIs located at Bombay, Kanpur, Calcutta, Hyderabad,
Ludhiana and Madras and at 16 selected it is located at Ambattar, Bangalore, Vadodara,
Dhanbad, Durgapur, Faridabad, Gauhati, Jabalpur, Jammu, Jodhpur, Kalamassery, Meerut,
Patiala, Pune, Rai Bareilly and Vishakhapatnam under 15 State Governments. These
institutes were modernized to conduct various advanced courses under the scheme. About
10,000 workers are trained every year. The Advanced Training Institute at Madras serves
as an apex institute. In 1974, an advanced training institute for electronics and process
instrumentation was established in Hyderabad to train highly skilled technicians in such
fields as consumer/industrial/medical electronics.
Since 1981, two advanced training institutes have been working in the field of electronics
and process instrumentation at Dehradun and Hyderabad. In order to meet the requirements
of technical workers in hitech areas, a NC/CNC training centre was established at ATI,
Madras, with the assistance of UNDP/ILO. Looking to the success of ATI, Madras, one
centre each at Bombay and Kanpur is being set up. under the World Bank vocational
Training Project, 33 it is of different States and UTs have been covered. Till September
1993, in 6 ATIs, as many as 59,600 industrial workers/ technicians have been trained.
The supervisors/foremen are the frontline managers, hence, they are of paramount
importance due to their unique position in the organizational hierarchy. In India, for the
training of foremen, two institutes are functioning, one at Bangalore (1971) and another at
Jamshedpur (1986). Here training is provided to existing and potential foremen in technical
and managerial skills, besides routine matters pertaining to manpower management. In the
programme both tailor-made and general programmes of both short and long term duration
are organized. Generally, industries sponsor their candidates for the long courses on the
modular pattern. The short-term courses are of one to twelve weeks’ duration, whereas
long-term courses are of two years duration, which are of three types:
(i) Diploma in foremanship for NAC/NTC candidates.
(ii) Post-Diploma in foremanship for fresh diploma-holders and
(iii) Post diploma in foremanship (maintenance, engineering) for fresh diploma holders.
Since its inception to October 1993, about 15,202 foremen have been trained in
long-term and shout-term courses.
Under the apprentices Act, 1961, it is obligatory on the part of the employer to
engage apprentices in certain trades. The apprentice training consists of basic training in
the specific filed, followed by shop-floor training. The training of graduates and diploma-
holders in engineering/technology as graduate technical apprentices was brought under the
purview of the amended Apprenticeship Act of 1973. The scheme is implemented by
D.G.E.T. with the assistance of six regional directorates of apprenticeship training (RDAT’s)
located at Calcutta, Bombay, Madras, Kanpur, Hyderabad and Faridabad. The State
Governments and UT administrators are responsible for implementing the scheme in the
NOTES respective departments, P.S.Us and private undertakings. The duration of training for trade
apprentices varies from six months to four years, depending on the requirements of trade.
The educational qualifications for apprentices vary from 8th pass or equivalent to higher
secondary, P.U.C. or equivalent. Till October 1993, the numbers of trades covered under
the Act were 147, the number of industries having the scheme was 6,158, the seats located
were 43,100 and the numbers of seats utilized were 20,976 only. The syllabi for training
under the Apprenticeship Act, 1961 are periodically reviewed by the trade committees
keeping in view the technological requirement of industry. The apprentices receive a stipend
varying between Rs. 460 and Rs. 1,120/- per month, depending on their skill and programme
undertaken.
As on 30th June, 1993, there were 20,976 graduates and technician apprentices
undergoing training, out of which 5,114 belonged to weaker sections of society, namely,
SC-1217, ST-258, minorities 1,270, women 2,317 and physically-handicapped 52.
The scheme for imparting part-time training was introduced in 1958 with a view to
improve knowledge and skill of workers who did not have the benefit of systematic training
in institutes. Under the scheme, the workers, irrespective of their age but with two years of
work experience, are sponsored by their employers for the course. The duration of training
is of two years and it is organized during evening hours. The training programme is conducted
at the Central Training Institute of Madras, 5 ATIs and various ITIs.
A special project for the development of women workers was undertaken by the
Government in 1977 with the assistance the Swedish International Development Authority
(SIDA) and Implemented through the ILO. The basic objectives of this project is to assess
the training needs of women workers, both in urban and rural areas and to upgrade the
Central Training Institute for Women Instructors, New Delhi into the National Vocational
Training Institute (NVTI) for women.
The study group of the National Commission on Labour has made many observations
on the working of the various training schemes for workers. Some of the important ones
are:
(a) Substantial training capacities have remained unutilized.
(b) No new trades have been added.
(c) The training programmes do not take into account local and regional needs.
(d) Three has not been adequate expansion in some trades in which there has been a
persistent shortage. NOTES
(e) The selection of trainees is made by inexperienced and non-technical persons and
considerations other than the suitability of the candidates become important.
(f) Many instructors do not have any experience of working conditions and production
techniques in industry.
(g) The quality of training is poor, which may be due to lack of counseling arrangements.
(h) The training provided does not conform to the needs of industries and the rapid
expansion of the training programme.
NOTES
NOTES
UNIT IV
INDUSTRIAL SAFETY
Learning Objectives
After going though this unit you should be in a position to explain the following terminologies:
• Industrial Safety
• Safety Organization
• Safety Committees
• Statutory Safety Provisions
• Statutory Health Measures
• Hazardous Processes
• Hazardous Occupations
• Appraisal Committees
• Occupational Health
• Notifiable Diseases
• Psychological Counselling
Industrial Safety
4.1 INTRODUCTION
Industrial accidents are mainly due to human failure – somewhere in the claim of
circumstances which lead to injury, we find the human factor. Specialist sections of
management – engineers, electricians, designers, work study officers – are often lacking in
an appreciation of the need to apply the principles of accident prevention to their work.
“Unsafe” method accounts for a very high proportion of accidents. Therefore safety must
be an integral part of any industrial undertaking; it must be built in at the design stage, in
production planning and in operator training. The challenge of true of mind by efficient and
regular safety training for all levels of management and worker. The aim must be to make
every individual in industry have more regard not only for his own personal safety, but also
for the safety of others.
committees are established they require executive initiative. The committee size should be
kept small for effective work but large enough to include all involved in plaint’s operation. NOTES
Co-ordination of the committee activities, encouragement of their effectiveness, and provision
of assistance in their studies are leading functions of chief executive of safety.
4.4 ACCIDENT PREVENTION PROGRAMME
Basic steps in safety Programme
In industries, many plans, some of them far reaching, have been formulated for the
prevention of accidents. Some of the useful plans are based on fundamental principles
which start with simple steps undertaken usually in the following order.
(1) Obtain co-operation of plant manager: The manager’s desire for safety
achievement must be clearly visible through his action to achieve it.
(2) Obtain co-operation of other Heads of Departments: The other heads of
departments must make safety an integral part of the operating organization.
(3) Analyze Accident records: Accident reports for the past year or two should be
analyzed to earn, if possible, the how, who, where, when and why of each accident.
(4) Hold meetings of Operation Executives: All supervisors, sectional heads and
operating heads should than be summoned to a general meeting presided by chief
of safety.
(5) Organize Education Work” Formulate a programme to maintain interest and supply
information on safety to management supervisors and workers.
4.5 ROLE OF SAFETY DIRECTOR
One man must be responsible for development and codification of safety information,
counseling managers on safety implementation methods, and developing progress
measurement data in every plant regardless of its size or the type of safety organization. He
may be called safety engineer, safety specialist, safety inspector, safety manger of safety
director. The chief operating executive in effect directs the plant safety effort. A safety
director’s actual position in the plant organization varies with the general organization of
the individual plant. The following are general functions performed by the safety director
whether he is a line executive or head of a separate department.
4.6 STATUTORY SAFETY PROVISIONS
The statutory safety provisions as applicable to factories in India are found in sections
21 through 40 of the Factories Act, 1948. A detailed version of each of these sections are
listed below. The number mentioned in the right hand extreme refers to the actual number
of section as found in the Act.
Provided that for the purpose of determining whether any part of machinery is in such
position or is of such construction as to be safe as aforesaid, account shall not be taken of
any occasion when
(i) it is necessary to make an examination of any part of the machinery aforesaid while it
is in motion or, as a result of such examination, to carry out lubrication or other adjusting
operation while the machinery is in motion, being an examination or operation which it
is necessary to be carried out while that part of the machinery is in motion, or
(ii) in the case of any part of a transmission machinery used in such process as may be
prescribed (being a process of a continuous nature the carrying on of which shall be,
or is likely to be, substantially interfered with by the stoppage of that part of the
machinery), it is necessary to make an examination of such part of the machinery while
it is in motion or, as a result of such examination, to carry out any mounting or shipping
of belts or lubrication or other adjusting operation while the machinery is in motion,
and such examination or operation is made or carried out in accordance with the
provisions of sub-section (1) of section 22.
2. The State Government may by rules prescribe such further precautions as it may
consider necessary in respect of any particular machinery or part thereof, or exempt,
subject to such condition as may be prescribed, for securing the safety of the workers,
any particular machinery or part thereof from the provisions of this section.
a. in a case referred to in clause (i) of the proviso to sub-section (1) of section 21,
lubrication or other adjusting operation; or NOTES
b. in a case referred to in clause (ii) of the proviso aforesaid, any mounting or shipping
of belts or lubrication or other adjusting operation, while the machinery is in motion
such examination or operation shall be made or carried out only by a specially
trained adult male worker wearing tight fitting clothing (which shall be supplied by
the occupier) whose name has been recorded in the register prescribed in this
behalf and who has been furnished with a certificate of his appointment, and while
he is so engaged, - (a) such worker shall not handle a belt at a moving pulley unless
–
(i) the belt is not more than fifteen centimeters in width;
(ii) the pulley is normally for the purpose of drive and not merely a fly-wheel or balance
wheel (in which case a belt is not permissible);
(iii) the belt joint is either laced or flush with the belt;
(iv) the belt, including the joint and the pulley rim, are in good repair;
(v) there is reasonable clearance between the pulley and any fixed plant or structure;
(vi) secure foothold and, where necessary, secure handhold, are provided for the
operator; and
(vii)any ladder in use for carrying out any examination or operation aforesaid is securely
fixed or lashed or is firmly held by a second person.
b. without prejudice to any other provision of this Act relating to the fencing of
machinery, every set screw, bolt and key on any revolving shaft, spindle, wheel
or pinion, and all spur, worm and other toothed or friction gearing in motion with
which such worker would otherwise be liable to come into contact, shall be
securely fenced to prevent such contact.
2. No woman or young person shall be allowed to clean, lubricate or adjust any part of
a prime mover or of any transmission machinery while the prime mover or transmission
machinery is in motion, or to clean, lubricate or adjust any part of any machine if the
cleaning, lubrication or adjustment thereof would expose the woman or young person
to risk of injury from any moving part either of that machine or of any adjacent machinery.
3. The State Government may, by notification in the official. Gazette, prohibit, in any
specified factory or class or description of factories, the cleaning, lubricating or adjusting
by any person of specified parts of machinery when those parts are in motion.
Provided that the Chief Inspector may permit the continued use of a machine installed
before the commencement of this Act which does not comply with the requirements of this
section on such conditions for ensuring safety as he may think fit to impose.
Explanation : For the purposes of this section, no lifting machine or appliance shall be
NOTES deemed to be a hoist or lift unless it has a platform or cage, the direction or movement of
which is restricted by a guide or guides.
In every factory –
i. all floors, steps, stairs, passages and gangways shall be of sound construction and
properly maintained and shall be kept free from obstructions and substances likely
to cause persons to slip, and where it is necessary to ensure safety, steps, stairs,
passages and gangways shall be provided with substantial handrails;
ii. there shall, so far as is reasonably practicable, be provided and maintained safe
means of access to every place at which any person is at any time required to
work.
iii. when any person has to work at a height from where he is likely to fall, provision
shall be made, so far as is reasonably practicable, by fencing or otherwise, to
ensure the safety of the person so working.
2. The State Government may, by order in writing, exempt, subject to such conditions as
NOTES may be prescribed, any factory or class or description of factories in respect of any
vessel, sump, tank, pit or opening from compliance with the provisions of this section.
Section 33. EXCESSIVE WEIGHTS
1. No person shall be employed in any factory to lift, carry or move any load so heavy as
to be likely to cause him injury.
2. The State Government may make rules prescribing the maximum weights which may
be lifted, carried or moved by adult men, adult women, adolescents and children
employed in factories or in any class or description of factories or in carrying on any
specified process.
Section 34. PROTECTION OF EYES
In respect of any such manufacturing process carried on in any factory as may be
prescribed, being a process which involves –
a. risk of injury to the eyes from particles or fragments thrown off in the course of
the process, or
b. risk to the eyes by reason of exposure to excessive light, the State Government
may by rules require that effective screens or suitable goggles shall be provided
for the protection of persons employed on, or in the immediate vicinity of, the
process.
Section 35. PRECAUTIONS AGAINST DANGEROUS FUMES, GASES, ETC.
1. No person shall be required or allowed to enter any chamber, tank, vat, pit, pipe,
flue or other confined space in any factory in which any gas, fume, vapour or dust
is likely to be present to such an extent as to involve risk to persons being overcome
thereby, unless it is provided with a manhole of adequate size or other effective
means of egress.
2. No person shall be required or allowed to enter any confined space as is referred
to in sub-section (1), until all practicable measures have been taken to remove
any gas, fume, vapour or dust, which may be present so as to bring its level within
the permissible limits and to prevent any ingress of such gas, fume, vapour or dust
and unless –
a. a certificate in writing has been given by a competent person, based on a test
carried out by himself that the space is reasonably free from dangerous gas,
fume, vapour or dust; or
b. such person is wearing suitable breathing apparatus and a belt securely attached
to a rope the free end of which is held by a person outside the confined space.
operation which involves the application of heat unless adequate measures have first
NOTES been taken to remove such substance and any fumes arising therefrom or to render
such substance and fumes non-explosive or non-inflammable, and no such substance
shall be allowed to enter such plant, tank or vessel after any such operation until the
metal has cooled sufficiently to prevent any risk of igniting the substance.
5. The State Government may by rules exempt, subject to such conditions as may be
prescribed, any factory or class or description of factories from compliance with all or
any of the provisions of this section.
If it appears to the Inspector that any building or part of a building or any part of the
ways, machinery or plant in a factory is in such a condition that it may be dangerous to
human life or safety, he may serve on the occupier or manager or both of the factory an
order in writing requiring him before a specified date –
a. to furnish such drawings, specifications and other particulars as may be necessary
to determine whether such building, ways, machinery or plant can be used with
safety, or
b. to carry out such test in such manner as may be specified in the order, and to
inform the Inspector of the results thereof.
(2) The State Government may make rules prescribing the arrangements to be made
under sub-section (1) or requiring that the arrangements made in accordance with NOTES
sub-section (1) shall be approved by such authority as may be prescribed
(2) In any factory no stationary internal combustion engine shall be operated unless the
exhaust is conducted into the open air, and no other internal combustion engine shall
be operated in any room unless effective measures have been taken to prevent such
accumulation of fumes therefrom as are likely to be injurious to workers employed in
the room.
(2) In every factory all glazed windows and skylights used for the lighting of the workroom
shall be kept clean on both the inner and outer surfaces and, so far as compliance with NOTES
the provisions of any rules made, under sub-section (3) of section 13 will allow, free
from obstruction.
(3) In every factory effective provision shall, so far as is practicable, be made for the
prevention of –
(a) glare, either directly from a source of light or by reflection from a smooth or
polished surface;
(b) b) the formation of shadows to such an extent as to cause eye-strain or the risk of
accident to any worker.
(4) The State Government may prescribe standards of sufficient and suitable lighting for
factories or for any class or description of factories or for any manufacturing process.
(e) sweepers shall be employed whose primary duty it would be to keep clean latrines,
NOTES urinals and washing places.
(2) In every factory wherein more than two hundred and fifty workers are ordinarily
employed –
(a) all latrine and urinal accommodation shall be of prescribed sanitary types;
(b) the floors and internal walls, up to a height of ninety centimeters, of the latrines and
urinals and the sanitary blocks shall be laid in glazed titles or otherwise finished to
provide a smooth polished impervious surface;
(c) without prejudice to the provisions of clauses (d) and (e) of sub-section (1), the
floors, portions of the walls and blocks so laid or finished and the sanitary pans of
latrines and urinals shall be thoroughly washed and cleaned at least once in every
seven days with suitable detergents or disinfectants or with both.
(3) The State Government may prescribe the number of latrines and urinals to be provided
in any factory in proportion to the numbers of male and female workers ordinarily
employed therein, and provide for such further matters in respect of sanitation in factories,
including the obligation of workers in this regard, as it considers necessary in the interest
of the health of the workers employed therein.
The constitution of Hazardous process is given in The Schedule which forms part of
the Factories Act, 1948. This schedule is divided into two parts, namely Part A and Part
B which are given below:
THE SCHEDULE
PART A
Hazardous Occupations
Any occupation concerned with: -
1. Transport of passengers, goods or mails by railways;
2. Cinder picking, clearing of an ash pit or building operation in the railway premises;
3. Work in a catering establishment at a railway station, involving the movement of a
NOTES
vendor or any other employee of the establishment from the one platform to another
or in to or out of a moving train;
4. Work relating to the construction of a railway station or with any other work
where such work is done in close proximity to or between the railway lines;
5. A port authority within the limits of any port;
6. Work relating to selling of crackers and fireworks in shops with temporary licenses;
7. Abattoirs/Slaughter House;
8. Automobile workshops and garages;
9. Foundries;
10. Handling of toxic or inflammable substances or explosives;
11. Handloom and power loom industry;
12. Mines (underground and under water) and collieries;
13. Plastic units and fiberglass workshops;
14. Domestic workers or servants and
15. Dhabas (roadside eateries), restaurants, hotels, motels, tea shops, resorts, spas or
other recreational centers.
PART B
14. Manufacturing processes using toxic metals and substances such as lead, mercury,
NOTES manganese, chromium, cadmium, benzene, pesticides and asbestos.
15. “ hazardous Process” as defined in section 2 (cb) and “ dangerous Operations” as
noticed in rules made under section 87 of the Factories Act, 1948 (63 of 1948)
16. Printing as defined in Section 2(k)(vi) of the Factories Act, 1948 (63 of 1948)
17. Cashew and cashew nut descaling and processing.
18. Soldering processes in electronic industries.
19. 19.‘Aggarbatti’ manufacturing.
20. Automobile repairs and maintenance including processes incidental
21. thereto namely, welding, lathe work, dent beating and painting.
22. Brick kilns and Roof tiles units.
23. Cotton ginning and processing and production of hosiery goods.
24. Detergent manufacturing.
25. Fabrication workshops (ferrous and non ferrous)
26. Gem cutting and polishing.
27. Handling of chromite and manganese ores.
28. Jute textile manufacture and coir making.
29. Lime Kilns and Manufacture of Lime.
30. Lock Making.
31. Manufacturing processes having exposure to lead such as primary and secondary
smelting, welding and cutting of lead-painted metal constructions, welding of
galvanized or zinc silicate, polyvinyl chloride, mixing (by hand) of crystal glass
mass, sanding or scraping of lead paint, burning of lead in enameling workshops,
lead mining, plumbing, cable making, wiring patenting, lead casting, type founding
in printing shops. Store type setting, assembling of cars, shot making and lead
glass blowing.
32. Manufacture of cement pipes, cement products and other related work.
33. Manufacture of glass, glass ware including bangles, florescent tubes, bulbs and
other similar glass products.
34. Manufacture of dyes and dye stuff.
35. Manufacturing or handling of pesticides and insecticides.
36. Manufacturing or processing and handling of corrosive and toxic substances, metal
cleaning and photo engraving and soldering processes in electronic industry.
37. Manufacturing of burning coal and coal briquettes.
38. Manufacturing of sports goods involving exposure to synthetic materials, chemicals
and leather.
39. Moulding and processing of fiberglass and plastic.
4.2 Fuel Gases (including Coal Gas, Producer Gas, Water Gas)
NOTES 5. Power Generating Industries
6. Pulp and paper (including paper products) industries
7. Fertilizer Industries
7.1 Nitrogenous
7.2 Phosphatic
7.3 Mixed
8. Cement Industries
8.1 Portland Cement (including slag cement, puzzolona cement and their products)
9. Petroleum Industries
9.1 Oil Refining
9.2 Lubricating Oils and Greases
10 Petro-chemical Industries
11 Drugs and Pharmaceutical Industries
11.1 Narcotics, Drugs and Pharmaceuticals
12 Fermentation Industries (Distilleries and Breweries)
13 Rubber (Synthetic) Industries
14 Paints and Pigment Industries
15 Leather Tanning Industries
16 Electro-plating Industries
17 Chemical Industries
17.1 Coke Oven by-products and Coaltar Distillation products
17.2 Industrial Gases (nitrogen, oxygen, acetylene, argon, carbon dioxide,
hydrogen, sulphur dioxide, nitrous oxide, halogenated hydrocarbon,
ozone, etc.)
17.3 Industrial Carbon
17.4 Alkalies and Acids
17.5 Chromates and dichromates
17.6 Leads and its compounds
17.7 Electrochemicals (metallic sodium, potassium and magnesium,
chlorates, perchlorates and peroxides)
17.8 Electrothermal produces (artificial abrasive, calcium carbide)
17.9 Nitrogenous compounds (cyanides, cyanamides and other nitrogenous
compounds)
17.10Phosphorous and its compounds
(4) Every occupier shall, with the approval of the Chief Inspector, draw up an on-site
emergency plan and detailed disaster control measures for his factory and make known NOTES
to the workers employed therein and to the general public living in the vicinity of the
factory the safety measures required to be taken in the event of an accident taking
place.
(5) Every occupier of a factory shall, - (a) if such factory engaged in a hazardous process
on the commencement of the Factories (Amendment) Act, 1987 (2 of 1987), within a
period of thirty days of such commencement; and (b) if such factory proposes to
engage in a hazardous process at any time after such commencement, within a period
of thirty days before the commencement of such process, inform the Chief Inspector
of the nature and details of the process in such form and in such manner as may be
prescribed.
(6) Where any occupier of a factory contravenes the provisions of sub-section (5), the
license issued under section 6 to such factory shall, notwithstanding any penalty to
which the occupier of factory shall be subjected to under the provisions of this Act, be
liable for cancellation.
(7) The occupier of a factory involving a hazardous process shall, with the previous
approval of the Chief Inspector, lay down measures for the handling, usage,
transportation and storage of hazardous substances inside the factory premises and
the disposal of such substances outside the factory premises and publicize them in the
manner prescribed among the workers and the general public living in the vicinity.
Every occupier of a factory involving any hazardous process shall - (a) maintain
accurate and up-to-date health records or, as the case may be, medical records, of the
workers in the factory who are exposed to any chemical, toxic or any other harmful
substances which are manufactured, stored, handled or transported and such records shall
be accessible to the workers subject to such conditions as may be prescribed;
(b) appoint persons who possess qualifications and experience in handling hazardous
substances and are competent to supervise such handling within the factory and to
provide at the working place all the necessary facilities for protecting the workers in
the manner prescribed : Provided that where any question arises as to the qualifications
and experience of a person so appointed, the decision of the Chief Inspector shall be
final;
(c) provide for medical examination of every worker –
(i) before such worker is assigned to a job involving the handling of, or working with,
a hazardous substance, and
(ii) while continuing in such job, and after he has ceased to work in such job, at
intervals not exceeding twelve months, in such manner as may be prescribed.
State Government may, by order in writing and for reasons to be recorded, exempt
the occupier of any factory or class of factories from setting up such committee. NOTES
(2) The composition of the Safety Committee, the tenure of office of its members and their
rights and duties shall be such as may be prescribed.
Every occupation has its own hazards. One should take adequate and proper
precautions to save him/her. Workers of mine and other chemical companies face acute
problems of occupational hazards. Companies should look into the safety of their workers
beforehand. To have proper safety and precautionary measures against occupational hazards
is the fundamental right of all workers. The constitution of India gives immense priority to
the occupational hazards and its safety.
The constitution of India, as a part of the fundamental rights, has laid down that the
State shall direct its policy towards protection of childhood and youth against exploitation
and shall not be employed to work in any factory or mine or engaged in any hazardous
employment. The official statistics of 1983 based on a sample survey taken there are
nearly 17 million children employed in various industries below the age of 15 years. Children
are to be found in almost all sectors of urban and rural economies. Children are engaged in
almost all sectors in cities, towns and the fringe areas in the hotel industries, construction
and chemical workshops, automobile repairing and fuel stations, slate pencil industries,
slate industries, glass industries, carpet industries, gem polishing, lock making industries,
etc. This list of the industries where children are employed is very long and it is not possible
to cover all the occupations.. However, it can be said that in almost of the sectors of urban
economy children are employed. Many of the occupations listed above are hazardous in
nature and not suitable to these children .As such many of them are detrimental to the
NOTES physical and mental health of the children. So there is a serious concern of the Government
and society about those children who are working in such hazardous occupations.
The workers / children engaged in this industry complain of body ache, pain in knee
and shoulder joints. This can be due to long working hours, continuous sitting in one particular NOTES
posture, improper working posture, lack of space, improper tools, improper way of carrying
out the work and lack of training. Many of the children complain frequent injuries, fissures
and cracks of their hands and fingers, especially tip of the finger. Due to very precise and
minute job, frequent complains of eyestrain can’t be ruled out. This can be further aggravated
by low illumination and vitamin A deficiency. There is a exposure of chromic oxide and
other oxides being used for shining the gems. This list of the industries where children are
employed is very long and it is not possible to cover all the occupations.. However, it can
be said that in almost of the sectors of urban economy children are employed. Many of the
occupations listed above are hazardous in nature and not suitable to these children .As
such many of them are detrimental to the physical and mental health of the children. So
there is a serious concerns of the Govt. and society about those children who are working
in such hazardous occupations.
4.11.2 C. Hand made Carpet Weaving Industry, Mirzapur & Bhadoi, Uttarpradesh
The art of carpet making has spread from Kashmir to the Southern tip of India. It is
not possible to give exact statistics of workers working in these particular industries as
most of the looms are in small shades employing less than 20 children/workers. These are
not registered under shops and establishment act or factory act and technically there are
no rules and laws are being applied. But by approximation, out of total workers 80%,
15%, 5% are in Uttar Pradesh (96,000 children out of 2,40,000 total employees) Rajasthan
(12,000 children out of total 30,000 employees) Jammu & Kashmir(6,000 out of 15,000
employees) respectively. Out of total production in India, 95% is exported. Weavers are
mostly Muslims or belong to Scheduled Castes such as Khatik, Koli, Raigar, Chamar, etc.
Seventy percent of the children are boys between the ages of 6-14 years, working from
8.00 am to 6.00 pm with an hour break for lunch. They are paid very low wages. Children
having looms in the own houses are working or more than 12 hours per day.
Workers/Children are subjected to skeletal deformities, ergonomic problems, eye
sight problems and health problems due to exposure to toxic chemicals: Skeletal deformities:
The squatting position that the child must occupy on the old type of loom causes very
serious occupational health problems. If a worker is employed from a young age, the legs
may become deformed (genu valgum) or serious crippling arthritis of the knee may develop.
The deformation on the pelvis often in a restricted form, some times occur. The constant
tying of knots and the threading of the weft yarn through the warp may result in swollen
finger joints, arthritis, neuralgia, causing permanent deformities of the fingers, eye sight
disorders. The constant close attention that the weaver must give to the point of weaving
or knotting may cause considerable eye strain particularly if the lightning is inadequate.
Problem is worsened when there is vitamin A deficiency.
(3) The person holding an inquiry under this section shall make a report to the State
NOTES Government stating the causes of the accident, or as the case may be, disease, and any
attendant circumstances, and adding any observations which he or any of the assessors
may think fit to make.
(4) The State Government may, if it thinks fit, cause to be published any report made
under this section or any extracts therefrom.
(5) The State Government may make rules for regulating the procedure as Inquiries under
this section.
or the Director General of Health Services may, at any time during the normal working
hours of a factory, or at any other time as is found by him to be necessary, after giving NOTES
notice in writing to the occupier or manager of the factory or any other person who for
the time being purports to be in charge of the factory, undertake safety and occupational
health surveys and such occupier or manager or other person shall afford all facilities
for such survey, including facilities for the examination and testing of plant and machinery
and collection of samples and other data relevant to the survey.
(2) For the purpose of facilitating surveys under sub-section (1) every worker shall, if so
required by the person conducting the survey, present himself to undergo such medical
examination as may be considered necessary by such person and furnish all information
in his possession and relevant to the survey.
(3) Any time spent by a worker for undergoing medical examination or furnishing information
under sub-section (2) shall, for the purpose of calculating wages and extra wages for
overtime work, be deemed to be time during which such worker worked in the factory.
Explanation : For the purposes of this section, the report, if any, submitted to the
State Government by the person conducting the survey under sub-section (1) shall be
deemed to be a report submitted by an Inspector under this Act.
The Third schedule of the Act lists the following dieses as notifiable diseases
THE THIRD SCHEDULE
( Sections 89 and 90)
Populations served by counseling psychologists include persons of all ages and cultural
backgrounds. Examples of those populations would include late adolescents or adults with
career/educational concerns and children or adults facing severe personal difficulties.
Counseling psychologists also consult with organizations seeking to enhance their
effectiveness or the well-being of their members.
NOTES
UNIT V
After going though this unit you should be in a position to explain the following terminologies:
• Child labour – Constitutional Rights
• Child Labour Technical Advisory committee
• National Child Labour Project
• Contract Labour
Introduction
The rights of a child are protected under various legislations including a mention of
them in the Constitution of India.
that the health and strength of workers, men and women, and the tender age of
NOTES children are not abused and that citizens are not forced by economic necessity to enter
avocations unsuited to their age or strength
The Act came into force from 23rd December 1986. Its main objectives are to prohibit
the employment of children in certain categories of industries and to regulate the conditions
of work of children in certain industries. It was amended in 1988.
(1) Scope
The Act is applicable to all establishments such as workshop, farm, residential hotels,
restaurants, eating houses, theatre or other places of public amusement where child
labour is largely employed. The Act extends to the whole of India.
Important Definitions under the Act: “Workshop” means any premises (including the
precincts thereof) wherein any industrial process is carried on, but does not include any
premises to which the provisions of Factories Act 1948 applies.
“Child” means a person who had not completed fourteen years of age.
NOTES
(2) Main Provisions of the Act
(1) Prohibition of employment of children in certain occupations and processes:
(2) No child can be employed, or permitted to work in nay of the occupations set
forth in Part A of the Schedule or in any workshop wherein any of the processes
set forth in Part B of the schedule is carried on.
(3) Hours and period of work:
(a) No child shall be allowed to work in any establishment in excess of such number
of hours as many be prescribed for such establishment or class establishment;
(b) The daily hours or work shall be so fixed that no child shall be allowed to work for
more than three hours without prior interval of an hour:
(c) The hours of work shall be so arranged that inclusive of rest interval, time spread
and the time spend in waiting for the work shall not exceed six hours a day;
(d) No child shall be allowed to work between 7. P.M and 8 P.M
(e) No child shall be allowed to work overtime; and
(f) No child shall be permitted to work in nay establishment on any day on which he
has already worked in some other establishment
(3) Weekly Holiday
Every child employed in any establishment shall be given one weekly holiday of 24
hours.
(4) Healthy and Safety
(i) The appropriate government by notification in the Official Gazette, can make rules
for health and safety of children employed or permitted to work in any establishment
or class of establishment.
(ii) Without any prejudice to the generality of the foregoing provisions, the rules for
health and safety may provided for all or any of the following matters namely;
1. Cleanliness in the place of work and its freedom from nuisance
2. Disposal of wastes and effluents
3. Ventilation and temperature
4. Dust and fumes
5. Lighting
6. Drinking water
7. Artificial humidification
8. Latrine and urinal
9. Spittoons
10. (10) Fencing of machines
Penalties: Whosoever employs any child or permits any child to work in contravention
of the provision of Act shall be punishable with imprisonment of a term of not less than NOTES
three months but can be extended months but can be extended to one year or with a fine
which shall not be less than ten thousand rupees, however, it can extend to twenty thousand
rupees or with both.
5.3 INITIATIVES TOWARDS ELIMINATION OF CHILD LABOUR – ACTION
PLAN AND PRESENT STRATEGY
The problem of child labour continues to pose a challenge before the nation.
Government has been taking various pro-active measures to tackle this problem. However,
considering the magnitude and extent of the problem and that it is essentially a socio-
economic problem inextricably linked to poverty and illiteracy, it requires concerted efforts
from all sections of the society to make a dent in the problem. In 1979, the Government
formed the first committee called Gurupadswamy Committee to study the issue of child
labour and to suggest measures to tackle it. The Committee examined the problem in detail
and made some far-reaching recommendations. It observed that as long as poverty continued,
it would be difficult to totally eliminate child labour and hence, any attempt to abolish it
through legal recourse would not be a practical proposition. The Committee felt that in the
circumstances, the only alternative left was to ban child labour in hazardous areas and to
regulate and ameliorate the conditions of work in other areas. It recommended that a
multiple policy approach was required in dealing with the problems of working children.
Based on the recommendations of Gurupadaswamy Committee, the Child Labour
(Prohibition & Regulation) Act was enacted in 1986. The Act prohibits employment of
children in certain specified hazardous occupations and processes and regulates the working
conditions in others. The list of hazardous occupations and processes is progressively
being expanded on the recommendation of Child Labour Technical Advisory Committee
constituted under the Act.
In consonance with the above approach, a National Policy on Child Labour was
formulated in 1987. The Policy seeks to adopt a gradual & sequential approach with a
focus on rehabilitation of children working in hazardous occupations & processes in the
first instance. The Action Plan outlined in the Policy for tackling this problem is as follows:
Legislative Action Plan for strict enforcement of Child Labour Act and other labour
laws to ensure that children are not employed in hazardous employments, and that the
working conditions of children working in non-hazardous areas are regulated in accordance
with the provisions of the Child Labour Act. It also entails further identification of additional
occupations and processes, which are detrimental to the health and safety of the children.
5.4 FOCUSING OF GENERAL DEVELOPMENTAL PROGRAMMES FOR
BENEFITING CHILD LABOUR
As poverty is the root cause of child labour, the action plan emphasizes the need to
cover these children and their families also under various poverty alleviation and employment
generation schemes of the government.
159 ANNA UNIVERSITY CHENNAI
DBA 1748
Project Based Plan of Action envisages starting of projects in areas of high concentration
NOTES of child labour. Pursuant to this, in 1988, the National Child Labour Project (NCLP)
Scheme was launched in 9 districts of high child labour endemicity in the country. The
Scheme envisages running of special schools for child labour withdrawn from work. In the
special schools, these children are provided formal/non-formal education along with
vocational training, a stipend of Rs.100 per month; supplementary nutrition and regular
health check ups so as to prepare them to join regular mainstream schools. Under the
Scheme, funds are given to the District Collectors for running special schools for child
labour. Most of these schools are run by the NGOs in the district.
Government has accordingly been taking proactive steps to tackle this problem through
strict enforcement of legislative provisions along with simultaneous rehabilitative measures.
State Governments, which are the appropriate implementing authorities, have been
conducting regular inspections and raids to detect cases of violations. Since poverty is the
root cause of this problem, and enforcement alone cannot help solve it, Government has
been laying a lot of emphasis on the rehabilitation of these children and on improving the
economic conditions of their families.
Strategy for the elimination of child labour under the 10th Plan
Focused and reinforced action to eliminate child labour in the Hazardous occupations
by the end of the Plan period.
Linking the child labour elimination efforts with the Scheme of Sarva Shiksha Abhiyan
of Ministry of Human Resource Development to ensure that children in the age group of 5-
8 years get directly admitted to regular schools and that the older working children are
mainstreamed to the formal education system through special schools functioning under
the NCLP Scheme. Convergence with other Schemes of the Departments of Education,
Rural Development, Health and Women and Child Development for the ultimate attainment
of the objective in a time bound manner.
The Government and the Ministry of Labour & Employment in particular, are rather
serious in their efforts to fight and succeed in this direction. The number of districts covered NOTES
under the NCLP Scheme has been increased from 100 to 250, as mentioned above in this
note. In addition, 21 districts have been covered under INDUS, a similar Scheme for
rehabilitation of child labour in cooperation with US Department of Labour. Implementation
of this Project was recently reviewed during the visit of Mr. Steven Law, Deputy Secretary
of State, from the USA. For the Districts not covered under these two Schemes, Government
is also providing funds directly to the NGOs under the Ministry’s Grants-in-aid Scheme
for running Special Schools for rehabilitation of child labour, thereby providing for a greater
role and cooperation of the civil society in combating this menace.
Elimination of child labour is the single largest programme in this Ministry’s activities.
Apart from a major increase in the number of districts covered under the scheme, the
priority of the Government in this direction is evident in the quantum jump in budgetary
allocation during the 10th Plan. Government has allocated Rs. 602 crores for the Scheme
during the 10th Plan, as against an expenditure of Rs. 178 crores in the 9th Plan. The
resources set aside for combating this evil in the Ministry is around 50 per cent of its total
annual budget.
The implementation of NCLP and INDUS Schemes is being closely monitored through
periodical reports, frequent visits and meetings with the District and State Government
officials. The Government’s commitment to achieve tangible results in this direction in a
time bound manner is also evident from the fact that in the recent Regional Level Conferences
of District Collectors held in Hyderabad, Pune, Mussoorie and Kolkata district-wise review
of the Scheme was conducted at the level of Secretary. These Conferences provided an
excellent opportunity to have one-to-one interaction with the Collectors, who play a pivotal
role in the implementation of these Schemes in the District. Besides, these Conferences
also helped in a big way in early operationalisation of Scheme in the newly selected 150
districts.
The Government is committed to eliminate child labour in all its forms and is moving in
this direction in a targeted manner. The multipronged strategy being followed by the
Government to achieve this objective also found its echo during the recent discussions held
in the Parliament on the Private Member’s Bill tabled by Shri Iqbal Ahmed Saradgi. It was
unanimously recognized therein that the problem of child labour, being inextricably linked
with poverty and illiteracy, cannot be solved by legislation alone, and that a holistic,
multipronged and concerted effort to tackle this problem will bring in the desired results.
5.6 THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970
Scope and Coverage
The Act came into force from 10th February 1971. It extends to the whole of India
and applies to every establishment in which twenty or more workmen are or were, employed
on any day during the preceding twelve months as contract labour, and to every contractor
who employs or employed on any day during the preceding twelve months more than
NOTES twenty workmen. Both the Central and State Governments which administer this legislation
have the powers to apply the provision of the Act to any establishment or contractor
employing even less than workmen after giving at least two months’ notice of their intention
to do so.
The Act does not apply to establishments where work is of a casual (irregular or
occasional or intermittent (interrupted or non-continues) nature. The work performed in
an establishment is not considered to be of an intermittent nature:
(i) If it is performed for more than one hundred and twenty days in the preceding
twelve months;
(ii) It is not of seasonal character if it is performed for more than sixty days in a year.
The Act also does not cover persons employed mainly in managerial and administrative
capacities, persons employed as supervisors, drawing wages exceeding five hundred rupees
per month, and out-workers who are given materials or articles for processing of
manufacturing in their own homes, or in the premises which are not under the control and
management of the principal employer. Under this Act, a workman is considered to be
employed as “control labour” in or in connection with the work of an establishment when
he is hired for this work by or through a contactor with or without the knowledge of the
principal employer. The “contractors” covered by the Act are “persons” who undertake to
produce a given result of an establishment, and include sub-contractors. The Act does not
regard persons as contractors who only supply goods or articles of manufacture to an
establishment.
Through the Act is a Central legislation, yet it is administered both by the Central and
State Governments. The Central Government administers the Act in regarded to railways,
Cantonment Boards major ports, mines and oil fields, banking and insurance companies
and other establishment which are carrying an industry by the Central Government.
Establishments other than those mentioned above are the concern of State Governments
(Section 2 (1))
The Act requires that the Central and State Advisory Boards are to be set up by the
Central and State Governments, respectively to advise them on such matters arising out of
the administration of the Act as may be refereed to them, and carry out any other functions
assigned to them under the Act. Besides, the government nominees, the Boards have
members representing industry, contractors, workers, and any other interest that the NOTES
government may consider should be represented on the Boards. The number of nominees
of the workers is to be equal to that of industry and contractors, both on the State and the
Central Boards (section 3,4)
Every principal employer who wishes to employ contract labour has to get the
establishment is accepted for registration. the registration officer issues a registration
certificate if the establishment is accepted for registration. This certificate can be cancelled
if it has been obtained by misrepresentation or suppression of any material fact, or if the
registration has become useless or ineffective or requires to be revoked.
The contract labour cannot be employed so long as the registration certificate has not
been issued or after it is revoked. The employer has to play a registration fee of twenty
rupees to five hundred rupees depending on the number of workers to be employed (Section
6, 7, 8, 9)
Both the Central and State Governments can prohibit the employment of contract
labour in any process, operation or other work in any establishment after consulting their
Advisory Boards, and consider the conditions of work and benefits provided for contract
labour in the establishment. The employment of contract labour may not be permitted for
any process, operation and other work if it is:
(a) incidental to or necessary for the industry, trade, business, manufacture or occupation
that is carried on in the establishment;
(b) of perennial or perpetual nature or of a sufficient duration
(c) done ordinarily through regular workmen in that establishment or an similar thereto:
(d) capable of employing considerable number of wholetime workmen.
the work for which contract labour is to be employed, and such other particulars as may
NOTES be required by the licensing officer. He is charged a licence fee, which may vary from five
rupees to one hundred and twenty five rupees, depending on the number of workers to be
employed
The licence may prescribe such conditions as hours or work, fixation of wages and
essential amenities in respect of contract labour which the contractor may be required to
comply with while employing contract labour. For ensuring compliance with theses
conditions, the contractor has to deposit a security of the amount required by the licensing
officer.
The license is issued for a specified period, on the expiry of which it has to be renewed.
It can be revoked or suspended after giving to the holder of the license an opportunity to
show cause if it is found that it has been obtained by misrepresentation, or suppression of
material facts or any conditions of the license or any provision of the Act, and if the rules
farmed there under have not been compiled with. The licensing officer may also declare
the whole or a part of the security deposits to be a forfeit (Section 11 to 14)
If the contractor fails to provides theses facilities, the principal employer will have to
provide the same and recover the expenses involved from the contractor.
The contractor is also to be responsible for making regular and timely payment of
wages to his workers. The payment is to be made in the presence of the authorized
representative of the principal employer. If the contractor does not make payment, the
principal employer will do the same and recover the amount so paid from the contractor
(Section 16 to 21)
(7) Penalties
NOTES
The Act provides for imprisonment for a term of three months of fine ranging from five
hundred rupees to one thousand rupees or both for contravention of various provision of
the Act and other offences. Additional fine is also provided for continuing offences and
contraventions (Sections 22, 23, 24)
The Act provides for the appointment of inspectors and defines their powers and
jurisdiction. There is also a provision for making rules by Central and State Governments
for carrying out the purposes of the Act (Section 28, 35)
(a) Appeal to the appellate officer against the order of the Registration officer and the
NOTES licensing officer, either for refusing or revoking registration or license within thirty
days of receiving such orders (Section 4);
(b) Be represented by their representatives on the Central and State Advisory Boards
(Section 4);
(9) Rights of Contract Labour
The contract labour has the right to:
(a) Claim such working conditions, facilities and other benefits as are provided for
under the Act and the rules framed there under (Section 16 to 22); and
(b) They can be represented by their representatives on the Central and State Advisory
Boards (Section 4)
Questions for Discussion
1. Explain the Constitutional rights guaranteed to a child under the provisions of the
Indian Constitutional Act
2. Explain the office and working of the Child Labour Technical Advisory committee
3. Explain a few of the initiatives taken by the Government of India to eliminate child
labour in India
4. What is licensing of contractors ?
5. Give a brief overview of the Contract labour (Abolition & Prohibition) Act, 1970
Unorganized Sector
Sl. Name of Total No. Total Average Average Total No. Educational Earners Percentage Average Average No. of Percentage Source of
No. the Centre of No. of Size of No. of of Family Standard Dependency of Families Monthly Family Families of Loan Loan
Sampled Migrant the Earners members Secondary & Ratio Staying at Earnings Monthly Reported Cases by Percentage
Porters Porters Family Above Place of Income Indebtedness Purpose of of Loan
Male Female Work Min Max (in Rs.) Loan – Contracted
Household from Money
Table 1.1
Sickness / Lender
167
Marriage
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 17 18
1 Chennai 160 1 4.8 1.19 764 11.2 6.4 2.8 53.8 2650 3555 3594 16.9 66.6 32.1
2 Bangalore 120 14 5.5 1.26 657 3.2 1.5 3.1 92.5 3124 4101 4302 11.7 92.8 85.7
3 Delhi 160 157 6.7 1.17 1078 6.5 1.2 4.2 8.1 3273 4444 5139 46.3 82.5 87.7
4 Kolkata 160 159 6.5 1.05 1033 6.8 0.4 4.9 2.5 2363 2926 3135 21.9 88.6 82.9
5 Mumbai 160 6 6.1 1.16 983 12.7 3.6 3.9 21.3 2567 3181 3816 55.6 68.5 3.3
NOTES
DBA 1748
NOTES
Unorganized Surveys in different Industries
Sl Name of Report & Year* Sampled Sampled %age No.of Average Migration Average Average % age No. % Families Reasons of
No. Units Workers Workers Monthly in (%) Size of no. of of Reported Indebtedness
* Latest available figures of the Employed through Income Family Earners Dwellings Indebtedness in ( % age )
Indian Labor Statistics Bureau, in a (Self (Household
Directly Others
2008 family Owned) Expense,
Sickness,
Table 1.2
Marriage)
168
1 2 3 4 5 6 7 8 9 10 11 12 13
1 Beedi rolling in India (1995) 278 1023 94.3 5.7 1442.3 3.1 5.2 2.1 70.8 14.1 69.7
2 Man-made Fiber Textile Industry
253 330 99.5 0.5 2417 31.5 4.0 1.5 40.3 19.1 74.3
(1996)
3 Marine Fishing Industry in India
226 516 38.2 61.8 2751 1.0 5.2 1.8 84.1 17.2 44.7
(1997)
ANNA UNIVERSITY CHENNAI
Table 1.3
NOTES
Working and Living Conditions of Workers in Artistic Metalware Industry in
India (1999)
NOTES NOTES