INDUSTRIAL RELATION

MBA

INDUSTRIAL RELATIONS

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SYLLABUS UNIT 1 Industrial Relations: Concept – Definition – Significance – Objectives – Scope – Approaches – Principles of good industrial relations – Role of State, Employers and the Unions in industrial relation. Trade Unionism and Industrial Relations: Labour movement – Concepts – Trade union movement – Development of trade unionism in Indian – Functions and problems of trade unions. International Labour Movement – International Confederation of Free Trade Unions (ICFTU) – World Federation of Trade Unions (WFTC) – International Labour Organisations (ILO) – Origin, history, objectives and functions. UNIT 3 Industrial Disputes: Meaning – Causes – Forms – Industrial relations machinery – Joint consultation – Works committee – Conciliations – Court of Enquiry – Voluntary arbitration – Adjudication. Employee Discipline: Definition – Causes of indiscipline – Code of discipline – Disciplinary procedure – Code of conduct. Grievance Handling: Meaning of grievances – Causes of grievances – Guidelines for grievance handling – Grievances redressal procedures. UNIT 4 Worker’s Participation in Management: Meaning – Significance – Forms – Situations in India. Collective Bargaining: Meaning – Significance – Principles – Process – Training methods – Evaluation of training and retraining. Conflict management: Meaning – Types of conflict episode – management of conflict.

UNIT 2

UNIT 5

REFERNCES 1. Bhagoliwal TN, personal Management and Industrial Relations, Agra Publ. 2. Arun Monappa, Industrial Relations, Tata Mc Graw Hill. 3. Michael V P, HRM and Human Relations, Himalaya. 4. Mamoria and Mamoria, Dynamics of Industrial Relations in India, Himalaya.

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Course Material prepared by Dr. SM. Chockalingam Professor and Head Debt. Of Commerce (DDE) Annamalai University, Annamalainagar.

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Industrial Relations – Introduction 2. Industrial Disputes 5.CONTENTS UNIT – I 1. Labour And The Constitution UNIT – II 3. Grievances Handling 6. Workers’ Participation in Management 8. Employee Discipline UNIT – IV 7. Collective Bargaining UNIT – V 9. Conflict Management 4|Page . Trade Unionism UNIT – III 4. Employee Counseling 10.

UNIT – I
1. 2. Industrial Relations – Introduction Labour and The Constitutions

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Lesson 1 Industrial Relations – Introduction
Industrial relations constitute one of the most delicate and complex problems of the modern industrial society. This phenomenon of a new complex industrial set-up is directly attributable to the emergence of ‘Industrial Revolution”. The pre-industrial revolution period was characterized by a simple process of manufacture, small scale investment, local markets and small number of persons employed. All this led to close proximity between the manager and the managed. Due to personal and direct relationship between the employer and the employee it was easier to secure cooperation of the latter. Any grievance or misunderstanding on the part of either party could be promptly removed. Also, there was no interference by the State in the economic activities of the people. Under such a set-up industrial relations were simple, direct and personal. This situation underwent a marked change with the advent of industrial revolution – size of the business increased needing investment of enormous financial and human resources, there emerged a new class of professional managers causing divorce between ownership and management, and relations between the employer and the employer became estranged and gradually antagonistic. This new set-up rendered the old philosophy of industrial relation irrelevant and gave rise to complex, indirect, and impersonal industrial relations.

Industry today is neither viewed as a venture of employers alone nor profit if considered as its sole objective. It is considered to be a venture based on purposeful cooperation between management and labour in the process of production and maximum social good is regarded as its ultimate end and both management and employees contribute in their own way towards its success. Similarly, labour today is no more an unorganized mass of ignorant works ready to obey without resentment or protest the arbitrary and discretionary dictates of management. The management has to deal with employees today nto as individuals but also as members of organized social groups who are very much conscious about their rights and have substantial bargaining strength. Hence, the objective of evolving and maintaining sound industrial relations is not only to find our ways and means to solve conflicts to resolve differences but also to secure the cooperation among the employees in the conduct of industry. But maintaining smooth industrial relation is not an easy task. Almost all the industrialized countries of he world fact the problem of establishing and maintaining good management worker relationships in their industries. Each country has sought to find our solution, depending upon its economic, social and political environment.
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However, industrial conflict still arises and therefore establishment and maintenance of satisfactory industrial relations forms an important plank in the personnel policies of modern organization. Meaning In the broad sense, industrial relations cover all such relationships that a business enterprise maintains with various sections of the society such as workers, state, customers and public who come into its contact. In the narrow sense, it refers to all types of relationships between employer and employees, trade union and management, works and union and between workers and workers. It also includes all sorts of relationships at both formal and informal levels in the organization. The term ‘industrial relations’ has been variously defined. J.T. Dunlop defines industrial relations as “the complex interrelations among managers, workers and agencies of the governments”. According to Dale Yoder “industrial relations is the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreement or labour contract”. In indusial relations, therefore, one seeks to study how people get on together at their work, what difficulties arise between them, how their relations including wages and working conditions etc., are regulated. Industrial relations, thus, include both ‘industrial relations’ and ‘collective relations’ as well as the role of the state in regulating these relations. Such a relationship is therefore complex and multidimensional resting on economic, social, psychological, ethical, occupational, political and legal levels. There are mainly two set of factors that determine the state of industrial relations – whether good or poor in any country. The first set of factors, described as ‘institutional factors’ include type of labour legislation, policy of state relating to labour and industry, extent and stage of development of trade unions and employers’ organizations and the type of social institutions. The other set of factors, described as ‘economic factors’ include the nature of economic organization capitalist, socialist technology, the sources of demand and supply in the labour market, the nature and composition of labour force etc. Distinction between human relations and industrial relations The term ‘human relations’ lays stress upon the processes of inter-personal relationships among individuals as well as the behavior of individuals as members of groups. The term ‘industrial relations’ is used widely in industrial organizations and refers to the relations between the employers and workers in an organization, at any specified time. Thus, while problem of human relations are personal in character and are related to the behavior of individuals where moral and social element predominate, the term ‘industrial relations’ is comprehensive covering human relations and the relations
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management and employees’ unions. in a peaceful atmosphere and fostering industrial pursuits for mutual benefits. The problems of industrial relations are therefore.e. and also a congenial environment resulting in less industrial unrest. the concept of ‘industrial relations’ has undergone a considerable change since the objective of evolving sound and healthy industrial relations today is not only to find out ways and means to solve conflicts or resolve difference but also t secure unreserved cooperation and goodwill to divert their interest and energies toward constructive channel.between the employers and workers in an organization as well as matters regulated by law or by specific collective agreement arrived at between trade unions and the management. reduced turnover and other tangible benefits to the organization. This helps in establishing industrial democracy in the organization which motivates them to contribute their best to the growth and prosperity of the organization. mutual cooperation and mutual agreement amongst the parties i. eliminating all types of wastage. Good industrial relations result in increased efficiency and hence prosperity. This will result in economic development of the economy. 2. essentially problems that may be solved effectively only by developing in conflicting social groups of an industrial undertaking. 5. 4. 3. It establishes industrial democracy: Industrial relations means settling employees problems through collective bargaining. It improves morale of he work force: Good industrial relations. It ensures optimum use of scare resources: Good and harmonious industrial relations create a sense of belongingness and group-cohesiveness among workers. a sense of mutual confidence. This will ensure optimum use of resources. However. both human and materials. It discourages unfair practices on the part of both management and unions: Industrial relations involve setting up a machinery to solve problems 8|Page .. dependence and respect and at the same time encouraging them to come closer to each other for removing misunderstanding if any. The significance of industrial relations can be summarized as below: 1. It contributes to economic growth and development: Good industrial relations lead to increased efficiency and hence higher productivity and income. result in higher productivity and hence income. give more job satisfaction and help improve the morale of the workers. built-in mutual cooperation and common agreed approach motivate one to contribute one’s best. Significance of Industrial Relations Maintenance of harmonious industrials relations is on vital importance for the survival and growth of the industrials enterprise. grievances and disputes.

11. This results in banning of the unfair practices being used by employers or trade unions. 7. Unduly heavy workloads. 8. It prompts enactment of sound labour legislation: Industrial relations necessitate passing of certain labour laws to protect and promote the welfare of labour and safeguard interests of all the parties against unfair means or practices. 9|Page . Mental inertia on the part of management and labour.confronted by management and employees through mutual agreement to which both these parties are bound. However. Inadequate welfare facilities. An intolerant attitude of contempt of contempt towards the workers on the part of management. Indiscipline. Unhealthy working conditions. Inadequate fixation of wage or wage structure. 4. 6. Desire on the part of the workers for higher bonus or DA and the corresponding desire of the employers to give as little as possible. management does not bother to devise the best method but leaves it mainly to the subordinates to work it out for themselves. team work. 5. 9. 2. 7. Dispute on sharing the gains of productivity. 6. 3. It helps the work force to adjust themselves to change easily and quickly Causes of Poor Industrial Relations Perhaps the main cause or source of poor industrial relations resulting in inefficiency and labour unrest is mental laziness on the part of both management and labour. Management is not sufficiently concerned to ascertain the causes of inefficiency and unrest following the laissez-faire policy. Inappropriate introduction of automation without providing the right climate. Lack of human relations skill on the part of supervisors and other managers. It facilitates change: Good industrial relations help in improvement of cooperation. Even with regard to methods of work. performance and productivity and hence in taking full advantages of modern inventions. innovations and other scientific and technological advances. Contempt on the part of the employers towards the workers is another major cause. the following are briefly the causes of poor industrial relations: 1. until it is faced with strikes and more serious unrest. 10.

14. 10. strikes by others. social and economic changes. 3. To ensure workers’ participation in decision-making. living conditions and reasonable wages. Unfair labour practices. Scope The scope of industrial relations includes all aspects of relationships such as bringing cordial and healthy labour management relations. 9. To work in the direction of establishing and maintaining industrial democracy. 7. To establish a proper channel of communication between workers and management. 4. 8. The cordial and healthy labour management relations could be brought in• • • by safeguarding the interest of the workers. To safeguard the interest of workers and the management. dismissals and lock-outs on the part of management and strikes on the part of the workers. To make positive contributions for the economic development of the country. such as rising prices. To ensure better working conditions. General economic and political environment. 5. 13. by providing good working conditions. To bring better understanding and cooperation between employers and workers. by fixing reasonable wages. and 15. To develop employees to adapt themselves for technological. 6. 11. creating industrial peace and developing industrial democracy. Inter-union rivalries. To avoid industrial conflicts and to maintain harmonious relations. Objectives of Industrial Relations 1. 2.12. To ensure constructive contribution of trade unions. 10 | P a g e . Retrenchment. and general indiscipline having their effect on the employees’ attitudes. To increase the morale and discipline of workers. like victimization and undue dismissal.

“An economist tries to interpret industrial conflict in terms of impersonal markets forces and laws of supply demand. by evolving various legal measure and setting up various machineries such as Works Committee. 11 | P a g e . industrial conflict is a war of different ideologies – perhaps a class-war. Labour Courts etc. To a psychologist. To a politician. These perceptions may be the perceptions of persons. Psychological approach According to psychologists. The industrial peace could be attained – • • by setting industrial disputes through mutual understanding and agreement. by maintaining healthy trade unions. goals. Various lines of thoughts have been expressed and approaches used to explain his complex phenomenon. motives and perceptions of different groups of individuals. of situations or of issues involved in the conflict. Other factors also influence perception and may bring about clashes. and by recognition of human rights. hence. industrial conflict means the conflicting interests.• • • by providing other social security measures. aspirations. Boards of Conciliation. The reasons of strained industrial relations between the employers and the employees can be understood by studying differences in the perception of issues. operating within and reacting to a given socio-economic and political environment”. psychological and political factors. The industrial democracy could be achieved – • • by allowing workers to take part in management. The perceptions of unions and of the management of the same issues may be widely different and. unions and rank and file workers. The perceptions of situations and issues differ because the same position may appear entirely different to different parties. problems of industrial relations have their origin in the perceptions of the management. situations and persons between the management groups and labour groups. One observer has stated. Approaches to Industrial Relations Industrial conflicts are the results of several socio-economic. clashes and may arise between the two parties. by collective bargaining.

its social consequences are also important such as urbanization. The management goals. anthropologists. etc. tec. are all. Through tension is more direct in work place. which provides general new relationships. of movement. human relations expert and personnel managers) are used to deal with such related problems. a new industrial-cum-social pattern emerges. Human relations approach Human resources are made up of living human beings. the management must realize that efforts are made to set right the situation. disintegration of family structure. stress and strain. etc. Conflicts cannot be resolved unless the management must learn and know what the basic what the basic needs of men are and how they can be motivated to work effectively. Services of specialists in Behavioural Sciences (namely. encroach on their expectations. throat-cuts. of thought of expression. perception of change in industry. protests and resistance to these pressures through protective mechanisms in the form of workers’ organization. In resolving conflicts. status-symbols. in turn. When employers treat them as inanimate objects. decided by broad social factors like the culture of the institutions. psychologists. thus inseparable from the society in which it functions. conflicts and tensions arise. Assistance is also taken from economists. workers’ attitudes. The group-dynamics between the two conflicting groups in industrial relations tend to shape the behavioural pattern. psychiatrists. housing and transport problem in industrial areas. if they understand and apply the techniques of human relations approaches to industrial relations. industrial engineers. They want freedom of speech. associations and trade unions. As industries develop. acceptance or resistance to change. tolerance etc. develop greater involvement in their work and achieve a measure of 12 | P a g e . institutions and behavioural pattern and new techniques of handling human resources. pedagogists. Through the main function of an industry is economic. The workers are likely to attain greater job satisfaction. Sociological approach Industry is a social world in miniature. These do influence the development of industrial relations. structural changes. In fact major problems in industrial relations arise out of a tension which is created because of the employer’s pressures and workers’ reactions. It has now been increasingly recognized that much can be gained by the managers and the worker. customs.The organizational behavior of inter-groups of management and workers is of crucial importance in the pattern of industrial relations. understanding of human behavior – both individual and groups – is a pre-requisite for the employers. the union leaders and the government – more so for the management. rationality. gradually it extends to the whole industry and sometimes affects the entire economy of the country. Therefore. Industry is. social mobility.

• • • • • • • Role of state in industrial relations In recent years the State has played an important role in regulating industrial relations but the extent of its involvement in the process is determined by the level of social and economic development while the mode of intervention gets patterned in conformity with the political system obtaining in the country and the social and cultural traditions of its people. social and economic changes. For example.identification of their objectives with the objectives of the organization. To ensure better working conditions. Fair redressal of employee grievances by the management Providing satisfactory working conditions and payment of fair wage. the role played by the State is an important feature in the field of industrial relations and State intervention in this area has assumed a more direct form. the manager. in a developing economy like ours. living conditions and reasonable wages. independently and with responsibility. To make positive contributions for the economic development of the country. Desirability of associations of workers and managements with the Government while formulating and implementing policies relating to general economic and social measures affecting industrial relations. would develop greater insight and effectiveness in their work. Introducing a suitable system of employees education and training. on their part. Recognition of collective bargaining. The State has enacted procedural as well as substantive laws to regulate industrial relations in the country. a free market economy may leave the parties free to settle their relations through strikes and lockouts but in other systems varying degrees of State participation is required for building up sound industrial relations. 13 | P a g e . Principle of Good Industrial Relations • • • The willingness and ability of management and trade unions to deal with the problems freely. work-stoppages to settle claims have more serious consequences than in a developed economy and similarly. The degree of State intervention is also determined by the stage of economic develop. In India. Developing proper communication system between management and employees. To develop employees to adapt themselves for technological.

Employees should be given ‘say’ in the affairs of the organization generally and wherever possible. in the decision-making process as well. There must be a well-planned communication system in the organization to pass on information and to get feed back from the employees. They must evolve. A participative and permissive altitude on the part of management tends to give an employee a feeling that he is an important member of the organization – a feeling that encourages a spirit of cooperativeness and dedication to work.Role of management in industrial relations The management have a significant role to play in maintaining smooth industrial relations. To this end. They must evolve well conceived and scientific wage and salary plan so that the employees may receive just compensation for their efforts. But at the same time they have equal responsibility to 14 | P a g e . establish and utilize appropriate machineries for speedy redressal of employees grievances. adequate opportunities for appropriate programmes of 18training and development should be provided. the management must treat employees with dignity and respect. They must make the employees feel that they are genuinely interested in their personal development. Manageemnts must provide an enlightened leadership to the people in the organization. For a positive improvement in their relations with employees and maintaining sound human relations in the organization. • • Management must make a genuine efforts to provide congenial work environment. Managements must pay personal attention to the problems of their employees irrespective of the fact whether they arise out of job environment or they are of personal nature. It is true that the unions have to protect and safeguard the interests of the workers through collective bargaining. Managements must delegate authority to their employees commensurate with responsibility. confidence. develop and implement a proper incentive plan for personnel at all levels in the organization. goodwill and understanding on the part of both management and employees in the exercise of their rights and performance of their duties should prevail for maintaining good industrial relations Role of trade unions in maintaining industrial relations The trade unions have a crucial role to play in maintaining smooth industrial relations. They must devise. • • • • • • An environment of mutual respect.

urge for greater degree of control over work situation. industrial democracy. what difficulties arise between them. Besides public are also affected. The labour management synergy Planning for healthy Industrial Relations is one of the most delicate and complex problems of present day industrial society. concepts and models of management. particularly when the institutions involved are public utility organizations.these are some of the major issues of industrial relations system. where worker can take roots and where he belongs to. and. identification of the functions. the management task in the long-run is directed towards harmonizing this conflict inside and outside the enterprise. Trade unions must understand that both management and workers depend on each other and any sort of problem on either side will do harm to both sides. Management relationship vis-à-vis workers revolves round the themes like attitude towards work. search for an environment. Management approach towards itself presupposes management as a social task. Industrial Relations System’s responsibility implies: (a) Inter-vertex Relationship (amongst management. How people get on together at their work. are regulated and what organizations are set up for the protection of different interests. even for trivial reasons. power and responsibility in the societal context. representing diverse ‘points of flexion’ and ‘bases of industrial edifice’. trade unions and workers. (b) Inter-societal obligations. that trade unions movement is the expression of the workers’ collective determination to recover emotional security lost through Industrial revolution. Since life is based on conflict. The art and science of management is highly sophisticated with theories. The Triangle of Industrial Relations System represents multi-pronged relationship between management. Trade union relationship vis-à-vis management is conditioned by accepting the fact that management presents an indissoluble partnership amongst interest. Management relationship vis-à-vis trade unions is based on increasing realization that trade unionism has to come to stay as a necessary concomitant of the contemporary capitalist them. They must be able to understand and appreciate the problems of managements and must adopt a policy of ‘give and take’ while bargaining with the managements. where he sees the purpose of his work and feels important in achieving it. and. trade unions and workers inter se) and. 15 | P a g e . how their relations.see that the organization do not suffer on account of their direct actions such as strikes. including wages and working conditions.

Often aspirations of workers are at variance with those of leaders in the trade union movement.Trade Union relationship vis-à-vis workers implied that it should appreciate workers’ aspirations and expectations that trade union is essentially a protective. in turn. There is often a tendency in trade unionism to promote ‘mass movement’ instead of an ’organisation’. social and cultural problems. friendly society. meant primarily to manage and handle their economic. Trade Unions as organizations generally viewed themselves as an ‘end’ rather than as a ‘means’ centering on ‘cause’ and not on ‘man’. In a changing situation like India. ideological postures are of limited relevance in the realm of trade unionism. Trade union approach towards itself is based on the premise that trade unionism is a management system. and its membership is often based on ‘calamity features’ rather than on ‘positive factors’. which. creates an attitude of convalescence and the cause of unconsciousness. which has to undertake responsibilities in a dynamic situation. influenced by external and internal environment and focusing on: TRADE UNION WORKERS • • • • • • • The primary purpose Organisation Adjustment and adaptation Attitudes Representation Economic responsibility Discipline 16 | P a g e .

changing attitudes towards work and leisure. trade unions and workers. encourage workers’ participation in the process of decision-making and developing new perspectives in the personnel problems of the trade unionism. the ‘responsible corporation’ has to develop as a social institution. research institutes. they would need to balance humanistic values with the flow of advancing science and technology. According to Victor Fuchs. interact and work for development and realization of the individual’s potential as human being. public’s lower frustration tolerance. create ideas. young graduates will resist authority and would challenge prevailing management prerogatives. Tomorrow’s management control centers. greater stress on pluralism and individualism. economic efficiency resulting in social justice. and. The ideology based on rationality. self-esteem and self-realization. 17 | P a g e . education’s impact on peoples’ self-image. the large corporation is likely to be overshadowed by the hospital. Since Industrial Relations is a function of three variables – management. rejection of authoritarianism and dogmatism. where people share success and failure. the ever-increasing generational gap in attitudes towards money.There is an imperative need of strengthening the democracy and freedom within the trade unions. Planning Industrial Relations: Tasks Ahead In future organization systems. advanced OR models will aid future managers in the use of resources. For achieving the objectives of improved management – trade union the following line fo action is suggested: • A realistic attitude of managers towards employees and vice versa for humanizing industrial relations. employees would consider themselves to be partners in management and expect their talents to be utilized to the fullest. university. moral absolutes leading to situational ethics. Following the concept of ‘corporate citizenship’. With increased self-esteem and self-image. Management and trade unions both have to be aware of the changing value system. are the new bases and postulates for shaping the future industrial relations system in the Indian context. “In future. a workable approach towards planning for healthy labour-management relations can be developed by: • • • Defining the acceptable boundaries of employer/ employee action. and search of identity. the needs of a ‘new breed’ of employee. and Monitoring the resulting developments. Granting the freedom to act within these boundaries. government offices and professional organizations that are the hallmarks of a service economy’. emphasis on quality of life.

Discuss different approaches to industrial relations. and liberty as its atmosphere. love as its driving force. Suggest suitable strategies for maintaining cordial industrial relations. justice as its rule. In all fairness. 5. Respect for public opinion and democratic values An integrated industrial relations policy incorporating rational wage policy. 18 | P a g e . industry and national levels. it is the approach of the management and union which matters and unless both are enlightened. Employer and the Trade Union in maintaining sooth industrial relations. Explain the role of the Government. An objective follow-up pattern for industrial relations system. trade union and democratic rights. 2. industrial harmony is not possible. In fact both managements and workers need a change in their philosophy and attitudes towards each other. sanctity of ballot. Whatever. What are the principles of good industrial relations? 4. A comprehensive system of rules and discipline.• • • • • • • Proper organization climate and extension of area of Industrial Relations. labour laws may lay down. Institutionalism of industrial relations and effective forums for interaction between management and trade unions at plant. both management and workers should not look upon themselves as two separate and distinct segments of an organization. realize that both are partners in an enterprise working for the success of the organization for their mutual benefit and interest. It is becoming increasingly obvious that industrial peace amongst all participants in the industrial relations systems requires truth as foundation. 3. but on the contrary. collective bargaining and tripartite negotiations. Bring out the significance of industrial relations. REVIEW QUESTIONS: 1. The maintenance of an efficient system of communication.

as laid down in clause(I). Articles 39. and provisions of that law repugnant to the provision of an earlier law made by the Parliament or any existing law with respect to that matter have priority over the Central legislation. in case of any repugnancy between the Union and the State legislation.Lesson 2 Labour and the Constitution Constitutional Framework The Constitution of India has guaranteed some Fundamental Rights to the citizens and has also laid down certain Directive Principles of State Policy for the achievement of a social order based on Justice. Article 41 lays down that the State shall. reserved for the consideration enumerated in the Concurrent List. 41. Equality and Fraternity. Labour is in the Concurrent List on which both the Centre as well as the States have the power to make laws. Article 14 lays down that the State shall not deny to any person equality before the law or the equal protection of laws. within the limits of its economic capacity and development. 354. such law shall prevail in the State. There shall be equality of opportunity to all citizens in matters relating to employment or appointment or appointment to any office under the State. they are the sub-stratum of industrial jurisprudence. has received his assent. the legislation of the Union shall prevail. where. Article 39 accentuates the basic philosophy of idealistic socialism which is enshrined in the Preamble of the Constitution and provides a motivation force to the Directive Principles by laying down that the State shall direct its policy towards equal pay for both men and women. Article 254 has been enacted to clarify the position. Liberty. To this. though not enforceable by any court. The Constitution amply provides for the upliftment of labour by guaranteeing certain fundamental rights to all. Traffic in human beings and forced labour and the employment of children in factories or mines or other hazardous work in prohibited. The Directive Principles. Normally. People have the right to form associations or unions. and it shall be the duty of the State to apply those principles in making laws from time to time. to 19 | P a g e . 42 and 43 have a special relevance in the field of industrial legislation and adjudication. make effective provision for securing the right to work. there is one exception embodied under clause(II) of Art. In fact. are nevertheless fundamental in the governance of the country. reserved for the consideration of the President. a law enacted by a State with respect to the matter enumerated in the Concurrent List.

is in charge of three important schemes. The Employees’ State Insurance Act. 1952 and the Maternity Benefit Act. 39. ports. The benefits provided to the employees under the scheme are: (1) sickness benefit and extended sickness benefit. 1948. The Employees’ Provident Funds and Miscellaneous Provisions Act. plantations. mines. the Employees’ Provident Funds Scheme. resignation. 20 | P a g e .. oil fields. • The Provident Fund Scheme aimed at providing substantial security and timely monetary assistance to industrial employees and their families. The object of the Payment of Gratuity Act. • • • Article 42 enjoins the State government to make provision for securing just and humane conditions of work and for maternity relief. All the benefits are provided in cash except the medial which is in kind. (5) funeral benefit. They enable a female employee to get maternity leave with full wages at least for 6 weeks before and 6 weeks after confinement. disablement. and in other cases of undeserved want. 1972 is to provide a scheme for the payment of gratuity to employees employed in factories. early death of the bread-winner and in some other contingencies. This scheme has provided protection to employees and their dependants in case of old age. The Employees’ Provident Fund Organization. death or if they leave their job due to accident. 41 and 43. 1961. The administration of the scheme is entrusted to an autonomous corporation called the Employees’ State Insurance Corporation. sickness and disablement. are also social security measures to help fulfill the objectives of Directive Principles of our Constitution. railways. (2) maternity benefit. Under the Act.education and to public assistance in cases of unemployment. and (6) medical benefit. (3) disablement benefit. (4) dependants’ benefit. employers are required to pay gratuity at the rate of 15 days’ wages for every completed year of service subject to a maximum of 20 months’ wages. Social security is guaranteed in our Constitution under Arts. disablement. The Maternity Benefit Scheme is primarily designed to provide full wages and security of employment. the Employees’ Family Pension Scheme and the Employees’ Deposit-linked Insurance Scheme. is a pioneering piece of legislation in the field of social insurance.. A scheme of Family Pension-cum-Life Assurance was introduced with a view t providing ling-term recurring financial benefit to the families in the event of the members’ premature death while in service. shops and establishments. All employees who have rendered a minimum of years’ continuous service in the above mentioned establishments are entitled to gratuity at the time of superannuation. viz. old age. retirement.

safety. provides for the abolition of contract labour wherever possible and to regulate the conditions of contract labour in establishments or employments where the abolition of contract labour system is not considered feasible for the time being. p. the concept of social justice has been given wide acceptance. social justice is “an inarticulate major premise which is personal and individual to every court and every judge”. According to Justice Holmes. It is a mean between the living wage and the minimum wage. Article 43A makes it obligatory on the State to take steps by suitable legislation or otherwise to secure the participation of workers in the management of undertakings and industrial establishments. area to area and from employments to employment. leave with wages etc. Living wage is the higher level of wage and of the industry to pay and naturally. iron ore and limestone. it would include all amenities which a citizen living in a modern civilized society is entitled to. To ensure this. work. agricultural. welfare. mica. “in accepting the Directive Principles. The Act provides for licensing of contractors and registration of establishments by the employers employing contract labour. 1948. condition of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities. employment of young persons and women. The Contract Labour (Regulation and Abolition) Act of 1970. provides for health.Substantial steps have been taken to fulfill the object of Art. holidays. hours of work for adults and children. Fair wage is something above the minimum wage which may roughly be said to approximate to the need-based minimum wage. a piece of social legislation. According to the Supreme Court.42 of the Constitution.. the Minimum Wages Act. 1948. was enacted. As observed by the National Commission on Labour in its report. industrial. 21 | P a g e . Article 43 makes it obligatory for the State to secure by suitable legislation or economic organization or in any other manner to all workers. it was a vague and indeterminate expression and that no definition could be laid down which would cover all situations. the country is committed morally and ethically to see that the governance of the country is carried on with a view to implementing these Directive Principles in course of time” (Chapter VI. a living wage. Labour welfare funds have been set up to provide welfare facilities to the workers employed in different mines such a coal. The Factories Act. Different views have been expressed by different authorities about the exact meaning and scope of this concept. It provides for the fixation of minimum rates of wages by the Central or State governments within a specified period for workers employed in certain scheduled employments. The minimum wage in any event must be paid irrespective of the capacity of the industry to pay. These rates vary from State. or otherwise. Social Justice In industrial adjudication.48).

The concept of social justice is a very important variable in the function of industrial relations. 22 | P a g e . 2. State the relevant provisions of Indian Constitution for labour welfare. It has been given a place of pride in our Constitution. Review Questions 1. The philosophy of social justice has now become an integral part of industrial jurisprudence. State the relevant legal enactments relating to labour. administration of justice is based on the Rule of Law.In a democratic society. as conceived by modern jurists. is dynamic and includes within its imports social justice. In a welfare State it is necessary to apply the general principles of social and economics justice to remove the imbalances in the political. economic and social life of the people. The philosophy of social justice has now become an integral part of industrial jurisprudence. which.

Trade Unionism 23 | P a g e .UNIT – II 3.

As observed by Frank Tannenbaum. the factory. Organized Labour and Labour Movement The term ‘Trade Union’ has been defined in various ways because of wide differences in the use of this term in different countries. Thus the growth of modern industrial organizations involving the employment of a large number of workers / employees in new type of working conditions and environment makes them helpless in bargaining individually for their terms of employment. Their old habits and traditions do not suffice to guide them in their daily work-behaviour and in consequence they may be disorganized and frustrated. labour 24 | P a g e . Often they may have to learn to live together in newly developing industrial townships and cities and also to adopt themselves to new working conditions and new pattern of work-rules imposing discipline and setting pace of work to which they are unfamiliar. Since this definition does not cover all the extensions of trade union activities in modern times. employees’ associations or trade unions seem to have emerged as ‘protest movements’ reaching against the working relationships and condition created by industrialization. They have to be provided with new types of economic security – wages / salaries. the mine and the industry. the classic definition of the Webbs has been most popular. organization members have to be generally recruited from the ranks of former agricultural labour and artisans who have to adapt themselves to the changed conditions of industrial employment.e. “The emergence of trade unionism lies in the Industrial Revolution which disrupted the older way of life and created a new society forged by the shop. Meaning of Trade Union. benefits and services etc. Of all the definitions of a trade union. According to them a trade union is “a continuous association of wage-earners for the purpose of maintaining or improving the condition of their working lives”. When industrialization begins.LESSON 3 Trade Unionism Trade unionism is a worldwide movement and the highly strategic position occupied by trade unions in modern industrial society has been widely recognized. In most cases. The term ‘Organized Labour’ is used to distinguish workers/ employees who are members of trade unions or employee association from those who are unorganized. According to Encyclopedia of Social Sciences. who are not members of any union. i. The term ‘Labour Movement’ is generally applied to all the various types of longterm association of workers / employees that the formed in industrialized or industrializing economies. a trade union with some modification may be redefined as “a continuous association of wage-earners or salaried employees for maintaining the conditions of their working lives and ensuring them a better and healthier status in industry as well as in the society”.

This distinction needs to be noticed all the more because till the workers organized themselves into trade unions. This resulted in certain amenities being extended to the mill workers which led to the organization of the Mumbai Milhands Association. safeguarding of their common interest and betterment of their economic and social conditions. A trade union is thus an essential basis of labour movement. Lokhande. although the groundwork was laid during the last quarter of the 19th century. Difference between Labour Movement and Trade Union Movement There is lot of confusion on the use of the terms ‘labour movement’ and ‘trade union movement’. The Trade Union Movement in India The trade union movement’s origin in a sense can be traced back to very early date to the time when villages had panchayats and guilds for settling disputes between the masters and their members. a movement was started by reformers under the leadership of Sorabji Shapurju. code. efforts were made mainly by the social reformers to improve the working and living conditions of labour.M. as early as in 1975. The labour movement thus conveys a higher degree of consciousness amongst workers than conveyed by mere trade union movement. These efforts should be taken as forming a part of the labour movement and not that of the trade union movement. Often the two are used interchangeably. Many trade unions were formed throughout India. despite the employers making huge profits. N. a factory worker himself. It seeks to develop amongst employees a spirit of combination. Its non-observance resulted in expulsion from the community. The credit of laying the foundation of the organized labour movement in India is at time accorded to Mr. Trade unions are the principal institutions in which the employees learn the lesson of self-reliance and solidarity. Rising prices. there is a slight distinction between the two. however originated in the first quarter of the present century. led to a new awakening. Trade unions. An agitation was organized by him a 19884 in Mumbai. without a corresponding increase in wages.D. as understood today. The panchayats prescribed the code of conduct which was rigidly observed by its members. whereas the ‘trade union movement’ is ‘by the workers’. “Labour movement implies. According to G. They protested against the appealing conditions of the factory workers and appealed for introduction of adequate legislation to prevent them. in some degree.movement is conceived as “all of the organized activity of wage-earners to better their own condition s either immediately or in the more or less distant future”. To this 25 | P a g e . class-consciousness and solidarity of interest and generates a consciousness for selfrespect and creates organizations for their self protection. The ‘labour movement’ is ‘for the worker’. There were a number of strikes during 1919 to 1922. However. In Mumbai. Thus the labour movement in a country emerges from a common need to serve a common interest.H. Actually a real organized labour movement in India started at eh end of the First World War. The labour movement without trade unions cannot exist. a community of outlook.

This further indirectly strengthened the movement in India. in fact. the establishment of the ILO (International Labour Organisation) and the All-India Trade Union Congress.was added the influence of the Russian Revolution. Roy. Following the Second World War. and not AITUC. All-India Trade Union Congress (AITUC): An important event in the history of trade union movement in India was the organization of the All-India Trade Union Congress in 1920. The prominent leaders of ATLA and HMSS were elected officebearers of INTUC. the Government of India declared that INTUC. For sometime the activities of socialist leaders were coordinated by the Hind Mazdoor Panchayat. The INTUC received the blessings of the top congress leaders at the Centre like Mr. the Indian National Trade Union Congress was organized by the Congress party on its labour front. federations of affiliated union – units which function on regional. particularly because it advocated compulsory arbitration as a method of resolving industrial disputes. Mr. 2. Government and political parties. It followed the pattern of the trade union s in the United Kingdom. Nehru took a prominent part in the organization of this Congress. short-lived and soon it came under the domination of the Communists and Radicals. In 1948. The labour world in India is dominated mainly by four central organization of labour. At present. There must be no strikes till other means of settlement are exhausted. M. One of the important points of the constitution of Indian National Trade Union Congress is that every affiliated union has to agree to submit to arbitration every individual dispute in which settlement is not reached thorough negotiations. Indian National Trade Union Congress (INTUC): In May. This lienated any prominent people who did not subscribe to the views and ideology of the communists. was the most representative organization of labour in the country entitled to represent Indian labour in I. 3. Thie4 speeded up the pace of the trade union movement. The workers once again became restive. Nehru and Sardar Patel. Subsequently when they left the Congress. they met in Kolkatta in December.N. These unions are. local and craft bases. This was formed with the help of the Hindustan Mazdoor Sewak Sangh which consisted of those who believed in Gandhian methods and had left the AITUC in 1937 under of leadership of Mr.L. 26 | P a g e . 1948 and a new federation by the Hind Mazdoor domination by employers.O. however. there was a spiraling of prices. The effort toward unified action in the matter of labour was. Hind Mazdoor Sangha (HMS) : The socialists in the Congress disapproved not only the Communist run AITUC but also the Congress-sponsored INTUC. it is the second largest union of workers and is still controlled by Communists and fellow-travellers. These are: 1.

1948 proceeded to establish yet another federation of trade unions in April-May 1949 under the name of United Trade Union Congress. Employees may join the unions because of their belief that it is an effective way to secure adequate protection form various types of hazards and income insecurity such as accident injury. The employees may join the unions because of their feeling that this would enable them to communicate their views. and Functions relating to the society. feels specially weak. United Trade Union Congress (UTUC): The dissidents from the Socialist Leaders’ Congerence held at Kolkatta in December. Individuals may join the unions in the hope of finding a job through their influence in the company management. The employees may join the unions to ensure a just and fair dealing by management. 27 | P a g e . illness. unemployment etc. as an individual. Need for Trade Union • One of the main reasons of workers joining a trade union been their belief to get wages increased and maintained at a reasonable standard through collective action and their realization that individual bargaining was utterly useless for this purpose. Through collective strength. discriminatory or contrary to their general interests. • • • • • • • Functions of Trade Unions • • • • Functions relating to members Functions relating to organization Functions relating to the union. Since the employee. he prefers to join an organization that my afford him an opportunity to join others for the achievement of those objectives that he considers as socially desirable. Another reason of employees joining some union may be the broader realization on their part that unions fulfill the important need for adequate machinery for proper maintenance of labour-management relations. illogical. feelings and frustrations to the management effectively. they restrain the management from taking any such action which may be irrational. ideas. The UTUS is more radical than HMS but less revolutionary in its objectives and policies than AITUC.4.

12. To encourage worker’s participation in the management of industrial organization and trade union. and by widening and consolidating the social security measures. educational. To highlight industrial organization as a joint enterprise between workers and management and to promote identity of interests. 4. To exert pressure for enhancement of rewards associated with the work only after making a realistic assessment of its practical implications.Functions relating to trade union members 1. 6. 3. 11. To ensure healthy. 8. To impress upon works the need to exercise restraint in the use of rights and to enforce them after realistically ascertaining their practical implications. To increase production quantitatively and qualitatively. safe and conducive working conditions. 3. 28 | P a g e . Functions relating to industrial organization 1. To safeguard workers against all sorts of exploitation by the employers. To guarantee a fair and square deal and social security measures. To ensure a desirable standard to living by providing various types of social service – health. To remove the dissatisfaction and redress the grievances and complaints of workers. by union leaders and by political parties. and adequate conditions of work. 2. To protect workers from the atrocities and unfair practices of the management. 5. To help in the maintenance of discipline. etc. and to foster labour-management cooperation. 9. by laying down the norms or production and ensuring their adequate observance. 2. joint consultation and voluntary arbitration. To make the workers conscious of their rights and duties. 10. recreational. To stress the significance of settling disputes through negotiation. 4. To create opportunities for worker’s participation in management and to strengthen labour-management cooperation. cooperative. 7. housing. The raise the status of trade union members in the industrial organization and in the society at large.

To impress upon the management the need to adopt reformative and not punitive. To train members to assume leadership position. To keep away from unfair labour practices. joint consultation and voluntary arbitration. Functions relating to trade unions organization 1. To preserve and strengthen trade union democracy. and to change them accordingly. 29 | P a g e . 6. 2. To continuously review the relevance of union objectives in the context of social change. 6. To resolve the problem of factionalism and promote unity and solidarity within the union. regionalism and linguism within the trade union movement. 9. 10. and by avoiding litigation. approach towards workers’ faults. 4. To improve financial position by fixing higher subscription. To facilitate communication with the management. To improve the network of communication between trade union and its members. 10. by realizing the union dues and by organizing special fund-raising campaigns. 11. To promote cordial and amicable relations between the workers and management by settling disputes through negotiation. To help in the removal of dissatisfaction and redressal of grievances and complaints. To formulate policies and plans consistent with those of the industrial organization and society at large. 7. and to keep away from various types of unfair labour practices.5. To eradicate casteism. 3. To save the union organization from the exploitation by vested interests – personal and political. To exert pressure on the employer to enforce legislative provision beneficial to the workers. To curb inter-union rivalry and thereby help in the creating of unified trade union movement. 8. 8. to share the profits equitably. 9. 5. To create favourable opinion of the management towards trade unions and improve their status in industrial organization. 7.

To create public opinion favourable to government’s policies and plans. The 30 | P a g e . black marketing. To actively participate in the development of programmes of national development. To prepare and maintain the necessary records. To launch special campaigns against the social evils of corporation. Politicalisation of the Unions 6. 5. dirt and disease. 2. 14. Problems of Recognition of Trade Unions Multiplicity of trade unions Multiple rival unionism is one of the great weaknesses of the Indian trade union movement. linguism. casteism. family planning. dowry. with a view to increasing their political influence”. and to mobilize people’s participation for their effective implementation. Leadership Issues 5. To exert pressure. nepotism. e. etc. Functions relating to society 1. national integration. 6.g. illiteracy. sex. smuggling. Problems of Trade Union The following are some of the most important problems of the trade unions in India: 1. To publicise the trade union objectives and functions. hoarding. Small Size of Unions 3. inequality. price rise. 3. afforestation..12. regionalism. Multiplicity of Trade Unions and Inter-union Rivalry 2. communalism. To manage the trade union organization on scientific lines. after realistically ascertaining its practical implications. on the government to enact legislation conducive to the development of trade unions and their members. “Multiple unions are mainly the result of political outsiders wanting to establish unions of their own. 4. Financial Weakness 4. 13. to know people’s reaction towards them. and to make necessary modifications. untouchability. To create public opinion favourable to trade unions and thereby to raise their status. To render all sorts of constructive cooperation in the formulation and implementation of plans and policies relating to national development.

‘new-comers’. there are two parallel Federations – the Indian Railway Men’s Federation and Indian National Federation of Railway-men. a new union is formed. Trade rivalry is acute and pervades the entire industrial scene in India. namely: • • The fact that by seven workers may form a union under the Trade Union Act of 1926.g.existence of different conflicting or rival organisatoins. e. Within a single organisation one comes across a number of groups comprising or ‘insiders and outsiders’. Practically every important industry. on the Indian Railways. there should be “One union in one Industry”. and reduces the effectiveness of workers in securing their legitimate rights. and ‘old-timers’. Rivalry between the unions 31 | P a g e . moderates’ and radicals’. Multiplicity of unions lead to inter-union rivalries. and get it registered and a large number of small unions have grown. Lack of ability among the leaders and members. with divergent political views. Small Size of unions The small size of unions is due to various factors. Therefore. • • The small size of unions create problems such as: • • • • Lack of funds to help its members. weakens the power of collective bargaining. This process is still continuing and has pulled down the average membership. This develops small unions. Though the number of unions and union membership are increasing average membership is declining. so whenever employees in a particular factory or mine are organized. Inter-union and intra-union rivalry undermines the strength and solidarity of the workers in many ways. which ultimately cuts at the very root of unionism. The structure of the trade union organization in the country – which is in most cases the factory or the unit of employment. is greatly responsible for inadequate and unhealthy growth of the movement. Low bargaining power. there exists parallel and competing unions. Rivalry among the leaders and the Central Organisation has resulted in multiplicity of unions. Inter-union rivalry Another vexing problem is that of intra-union rivalry. and ‘high’ and low caste’ people. Unionism in India started with the big employers and gradually spread to smaller employers.

they fail to pay adequate attention to any one union.e. Further. namely. direct contact with the rank and file membership and the top leaders is missing because of their hold on a number of trade unions in varied fields. maximizing the welfare of their members”. i. The other reasons are low subscriptions and irregular payments of subscriptions by the members. who can play the role of the defender of the workers against the management. usually a politician. and For lack of financial resources to appoint whole time office-bearers. There are several reasons for this phenomenon. For avoiding victimisation of worker-office-bearers of the trade unions. leading to intra-union rivalry. The National Commmission on Labour gave a good deal of though to the issue whether outside leadership shoul be retained. and the vicious circle thus goes on and on. Leadership issues Another disquieting feature of the trade unions is the ‘outside’ leadership. They. Again. leads to multiplicity of unions. The union’s lack of formal power tends to put a premium on the dharismatic type of the leader. Over and again it has been realized that “a reorientation of policy is desirable by a switchover to working class leadership”. “there should be no ban on non-employees holding positions in the executive 32 | P a g e . Outside leadership of the unions leads to political unionism (each union having an allegiance to a different political party). • • The rank and the file are largely illiterate as such they cannot effectively communicate with the management. For ensuring a measure of ‘equation of power’ in collective bargaining where the workers are generally uneducated and have a low status. which cause low membership leading to unsound finances and in turn. in bigger unions. leadership of trade unions by persons who are professional politicians and lawyers and who have no history of physical work in the industry. It felt that.• Lack of unity among workers. • • • These political leaders are inevitably concerned with “maximizing their individual standing as political leaders rather than with. therefore cannot put forth the case of the union effectively. often these union leaders are not adequately aware of the actual needs and pressing problems of the members. which in turn. lack of welfare and other constructive activities which may infuse strength into unions and to conduct collective bargaining effectively the unions depend on outside leadership. Financial weakness The financial weakness of the union may be attributed to the small size of union and poor ability of its members to contribute.

whether it be militant or passive behaviour can be explained in political terms. and political leaders continue to dominate the unions even now… The supreme consequence of political involvement of unions in India in general. 33 | P a g e . Limiting the proportion of outsiders in the union execute. Raman’s observations are: “Trade union multiplicity in India is directly traceable to the domination and control of the trade union movement by rival political parties…. Harold Crouch has observed. have tended to become tools of party politics”. This will enable them to participate in the decision-making and managing the union affairs effectively. “Even to the most casual observer of the Indian trade union scene. The clay of unionism is possibly an effervescent industrial labourers. Pandey had reached the conclusion: “The unions are closely aligned with political parties. i. The commission’s own estimate was that outsiders in the unions executive bodies would be about 10%. Establishing a convention that no union office-bearer will concurrently hold an office in a political party. In a recent study. It makes the following recommendations to deal with the problem of outside leadership: • • • • • • Ex-employees of an industrial enterprise should not be treated as outsiders. Dr. the most distressing feature is its political character. leadership should be promoted from within the rank and file and given a more responsible role. Dr.e. Politicalisation of the unions On of the biggest problems of the country’s trade union movement faces is the influence of the political parties.body of the unions as that would be a very drastic step”. formed to safeguard and promote the social and economic interests of workers. it must be clear that much of the behaviour of Indian unions. much less than the number legally permitted. Intensification of worker’s education. Intensification of efforts by trade union organizers to train workers in union organisation. Penalties for victimization and similar unfair labour practices such as would discourage the growth of internal leadership.. The Commission also refers to the ILO convention (No. but the sculptors chiseling it into shape have certainly been members of political parties. Initiative should come from the workers themselves through the launching of a vigorous programme for Workers’ Education. and the workers’ organisation shall have the right to elect their representative in full freedom. 87) concerning “freedom of association” and protection of the right to organize. Hence.

worker-led trade union movement to take root”. With the split in the political ideology. with the result that “instead of becoming a unity and mighty torrential river. cultural and recreational facilities. The employers many a times have refused recognition to trade unions either on the basis that unions consist of only a minority of employees. Problems of recognition of trade unions This is one of the basic issues in our industrial relation system because employers are under no obligation to give recognition to any union. therefore. has stated that the “unions must pay greater attention to the basic needs of its members which are: • • • • • • to secure for workers fair wages. The divisions and sub-divisions. have affected adversely the trade union movement. Dr. Each section pulls itself in different directions. Recommendations of National Strengthening Trade Unions Commission on Labour for The National Commission on Labour has made a large number of recommendations on different aspects of trade unions. the attitudes of the employers towards the trade unions have been very hostile.L. to improve working and living conditions. the decisions also change. 34 | P a g e . Enlargement of functions The N. there develops factional split in the same trade union professing the same political ideology.C. to enlarge opportunities for promotion and training. to provide for educational. Raman ahs very aptly conclude that: “The use of political methods by trade unions may be to their advantage. to safeguard security of tenure and improved conditions of service. but the union cause is endangered when unions allow themselves to become pawns in political fights. or that two or more unions existed. to cooperate in and facilitate technological advance by broadening the understanding of workers on its underlying issues. In the initial stages. labour-oriented. Political unionism has prevented the development of a movement or organisation that could be termed the workers’ own and turned the soil upside down to such a degree that it has become impossible for a genuine labour-inspired. with the changing political situation. the movement is sub-divided into numerous rivulets”. as given below. It has become fragmented and disjointed. thus made.It should be noted that decisions in the trade union fields are taken by the respective political parties to which the unions are attached and.

the Commission was of the opinion that its recommendation regarding recognition of unions. and (d) an application for re-registration should not be entertained within six months of the date of cancellation of registration. Union rivalries In regard to union rivalries. Registration The Commission has recommended that registration should be cancelled if: (a) its membership fell below the minimum prescribed for registration. In addition. discipline. building up of internal leadership. The main objective should be to draw unions as closely as possible into the entire development process. (ii) steps should taken in to promote international leadership and give it more responsible role (iii) internal leadership should be kept outside the pale of victimization. Leadership Regarding leadership the N. and generally to promote individual and collective welfare”.L. shift to collective bargaining and institution of an independent authority for union recognition would reduce them. Intra-union rivalries should be left to the central organisation concerned to settle and if it is unable to resolve the dispute the Labour Court should be set up at the request of either group or on a motion by the government.C. (iv) permissible limit of outsiders in the executive of the unions should be reduced to 25%. (c) it submitted defective returns and defects were not rectified within the prescribed time. and (v) exemployees should not be treated as outsiders”. has recommended that “(i) There should be not ban on non-employees holding the position in the executive of the unions. influencing the socio-economic policies of the community through active participation in the formulations of these policies. “unions should also undertake social responsibilities such as • • • promotion of national integration. to offer responsible cooperation in improving levels of production and productivity.• • • to promote identity of interests of the workers with their industry. and instilling in their members a sense of responsibility towards industry and community”. Improvement of financial condition 35 | P a g e . and high standard of quality. (b) the union failed to submit its annual.

as. producers’ or consumers’ cooperatives. Origins and background of the trade union movement Early forms of labour organisatoins Union oriented. trade unionism must be examined as part of a wider concept-the labour movement as a whole.C. for the latter were composed of master craftsmen who owned capital and often employer several workers.L. Progressing from trade to trade within the same city or area.To improve the financial conditions of the unions. The relationship among the various parts of the labour movement varies from country to country and from period to period. has been of the opinion that. associations of workers using the same skill.A in the late 18 th and early 19th centuries. Recognition of the unions The N. That movement consists of several more or less intimately relative related organization such as labour parties. primarily by the device of collective bargaining. and social status of their members. the clubs formed local associations which. “it would be desirable to make recognition compulsory under a Central Law in all undertakings employing 100 or more workers or where the capital invested in above a stipulated size. either by examination of membership records or if it consider necessary by holding an election by secret ballot open to all employees. workers’ mutual insurance organisatoins. Not all countries have produced the entire gamut of organisation referred to above. in some countries the term “labour movement” is virtually synonymous with “trade unionism”. Trade Unionism in the International Context To be understood in the international context. The minimum membership should be 25 per cent. and the particular method it employees. cultural. mainly in Great Britain the U. Verification of membership The Industrial Relations Commission should decide the representative character of a union. The early unions were formed a partly as social clubs but soon became increasingly concerned with improving wages and working conditions. and workers’ education and sports association. because they carried on their main activities on a 36 | P a g e . the Commission recommended for the increase of membership fees. All have the common objective of improving the material. A trade union seeking recognition as a bargaining agent from an individual employer should have a membership of at least 30 per cent of workers in that establishment.S. What distinguishes one organisation from another is the particular aspects of that broad objective it is endeavouring to pursue. There is no connection between trade unions and medieval craft guilds. if recognition is sought for an industry in a local area”.

and the whole spirit of a society founded upon acknowledged class distinction were the main sources of the social protest at the root of modern labour movements. Factors favouring unionism The unions of the early 19th century were almost exclusively based upon a particular craft. Such a system offered few avenues for individual or collective advancement. The Communist organisation had a brief period of expansion but soon dwindled away and had disappeared before 1939. the International Federation of Trade Unions was established. Discrimination in political franchise (restriction on or outright denials of the vote) and a lack of educational opportunities. but immediately came into collision with the Red International of Labour Unions. however. and toward the end of the 19th century Great Britain was including unskilled workers. Obstacles to union organisation In most Western countries. With industrial development. General unions included skilled workers and labourers of all grades from different industries. established by the new government of the Soviet Union. International Trade Union Organisation The large trade union movements of various countries for may years have maintained loose alliances by joining international organisations of labour. Industrial unions attempted to organize all works employed in producing a given product or service. federations of unions. and ideological factors led to the development of various kinds of unions that would not fit easily into any of the above categories. Unions that recruited members from such groups – whose ranks were expanding rapidly as a result of new technologies – emerged either as industrial unions or as general unions. a rend toward large-scale union organisation grew. 37 | P a g e . But as mass production industries – which required large numbers of rapidly trained. union mergers. were almost self-sufficient. income and property. In 1901. semiskilled workers – developed. even though they usually started from a base in one particular industry. In 1919 it was revived at Amsterdam. labour movements arose out of the protest of workers and intellectuals against social and political systems based upon discrimination according to ancestry. But changing technologies. rather than individual unions. chiefly under the guidance of German unions. It proved to be ineffective and disappeared during World War I. social status. anti-union legislation. These in turn formed national union federations. sometimes including even the general office or white-collar workers. local associations sooner or later followed the expansion of production beyond the local market and developed into national unions of the same trade. usually hold membership.purely local level.

Organisation The WCL is organized on a federative basis which leaves wide discretion to its autonomous constituent unions. the WCL differs little in policy from the ICFTU above. as well as a mainly Roman Catholic membership. The biggest group is the Confederation of Christian Trade Unions (CSC) of Belgium (1. and in 1968 it became the WCL and dropped its openly confessional approach. and the French Confederation Generale du Travail has proposed withdrawal to its members. By the 1990s. where affiliated unions were suppressed by the Fascist and Nazi regimes. Reconstituted in 1945 and declining to merge with the WFTU or ICFTU. Buddhist and Moslem member confederations.World Federation of Trade Unions (WFTU) Origin The WFTU was founded in 1945 on a worldwide basis. USA and Netherlands trade union organisatoins withdrew and went on to found the ICFTU. South Korea. its policy was based on the papal encyclicals Return novarum (1891) and Quadragesimo anno (1931). Most of the national trade union centers in Africa and Latin America moved to the ICFTU after 1989. From he outset.2 million). At the Nov. most WFTU delegates come from the developing countries (Cuba. the American Federation of Labour declined to participate. regional offices have been set up in New Delhi (India). World Confederation of Labour (WCL) Founded in 1920 as the International Federation of Christian Trade Unions. Today. A membership of 11 million in about 90 countries is claimed. Havana (Cuba). by June 1951 all NonCommunist trade unions and the Yogoslav Federation had withdrawn. it went our of existence in 1940 as a large proportion of its 3. The Congress appoints (or re-appoints) the Secretary-General at each 4-yearly meeting. British. elected by the 38 | P a g e .4 million members were in Italy and Germany. In January 1949. 1994 Congress in Damascus. Its governing body is the Congress. Dakar (Senegal). In its concern to defend trade union freedoms and assist trade union development. unions broke their links with the Communist parties and most were later accepted into the ICFTU. it has Protestant. The General Council which meets at least once a year. which meets every 4 years. Vietnam). India. In a move towards decentralization. is composed of the members of the Confederal Board (at least 22 members. after the collapse of the European Communist regimes. membership became uncertain. with the WFTU under Communist control. Damascus (Syria) and Moscow (Russia). representing trade union organisatoins in more than 50 Communist and Non-Communist countries.

Congress) and representatives of national confederations, international trade federations, and trade union organisatoins where there is not confederation affiliated to the WCL. The Confederal Board is responsible for the general leadership of the WCL, in accordance with the decisions and directive of the Council and Congress. Its headquarters is at Belgium. There are regional organisation in Latin America (Caracas), Africa (Banjul, Gambia) and Asia (Manila) and a liaison centre in Montreal. A much smaller international organisation, the International Federation of Christian Trade Unions (IFCTU), now called the WCL (World Confederation of Labour), is made up largely of Catholic labour unions in France, Italy and Latin America. The ICFT, at its founding congress in 1949, invited the affiliates of the IFCTU to join, but the invitation was rejected. On the international scene, the WCL has been a comparatively ineffective organisation. Its influence limited to a few countries in Europe and Latin America. International Confederation of Free Trade Unions (ICFTU) Origin The founding congress o f the ICFTU was held in London in December 1949 following the withdrawal of some Western trade unions from the World Federation of Trade Unions (WFTU), which had come under Communist Control. The constitution, as amended, provides for cooperation with the UN and the ILO, and for regional organisation to promote free trade unionism, especially in developing countries. The ICFTU represents some 124m. workers across 196 affiliated organizations in 136 countries. Aims The ICFTU aims to promote the interests of the working people and to secure recognition of worker’s organisation as free bargaining agents; to reduce the gap between rich and poor; and to defend fundamental human and trade union rights. In 1996, it campaigned for the adoption by the WTO of a social clause, with legally binding minimum labour standards. Organisation The Congress meets every 4 years. It elects the executive Board of 50 members nominated on an area basis for a 4-years period; 5 seats are reserved for women nominated by the Women’s Committee; and the Board meets at least once a year, Various Committees cover economic and social policy, violation of trade union and other human rights, trade union cooperation projects and also the administration of the International Solidarity Fund. There are joint ICFTU-International Trade Secretariat Committees for coordinating activities.

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The ICFTU has its headquarters at Belgium; branch offices in Geneva and New York, and regional organizations in America (Caracas), Asia (Singapore) and Africa (Nairobi) Purposes of ICFTU Striving for world peace, the spreading of democratic institutions, increasing the standard of living for workers everywhere, a worldwide strengthening of free trade unions, and support to colonial people in their struggle for freedom. The ICFTU consistently opposed Fascist as well as Communist dictatorships, and implemented that policy by giving such aid as was possible to free labour in Spain and certain Latin American countries. It also furnished direct financial assistance to workers in Hungary and Tibet and campaigned against racialist policies in South Africa. Failures and successes of the ICFTU Lack of homogeneity among affiliates hindered the activity of the ICFTU in many fields, chiefly because of difference among its affiliates in the approach to unions in Communist-controlled countries. It found its work to be most effective in the area of international education. By 1960 it has created an international Solidarity Fund of $2,000,000 to aid workers who became victims of oppression and to promote democratic trade unionism in economically under developed countries. Problems of union organization were discussed at ICFTU seminars in various parts of the world, with experienced labour leaders and labour spokesmen from the less industrialized countries participating. To facilitate the functioning of its widespread activities, the ICFTU established headquarters in Brussels, Belgium, with regional or subregional offices in may other countries. Form one or more of those centers it conducted numerous educational conferences, maintained a residential trade union training college in Calcutta, India and assisted in founding an African Labour College in Kampala, Uganda. It provided assistance to inexperienced works in areas in the first stages of industrialization and sent organizers to Lebanon, Okinawa, Cyprus, Cameroon, India, Indonesia, Nigeria and elsewhere. It has been the consistent policy of the ICFTU to cooperate with the United Nations Educational, Scientific, and Cultural Organisation and with the International Labour Office in Geneva. It is wholly financed by contributions from its affiliates. International Labour Organisation (ILO) The International Labour Organisatoin (ILO) was set up in 1919 by the Versailles Peace Conference as an autonomous body associated with the League of Nations. The ILO was the only international organisation that survived the Second World War even after the dissolution of its parent body. It became the first specialized agency of the United Nations in 1946 in accordance with an agreement entered into between the two organizations. India has been a member of the ILO since its inception. A unique
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feature of the ILO, as distinct from other international institutions, is its tripartite character. The aims and objectives of ILO are set out in the preamble to its Constitution and in the Declaration of Philadelphia (1944) which was formally annexed to the Constitution in 1946. The preamble affirms that universal and lasting peace can be established only if its is based upon social justice, draws attention to the existence of conditions of labour involving injustice, hardship and privation of a large number of people, and declares that improvement of these conditions is urgently required through such means as the regulation of hours of work, prevention of unemployment, provision of an adequate living wage, protection of workers against sickness, disease, and injury arising out of employment, protection of children, young persons and women, protection of the interests of migrant workers, recognition of the principle of freedom of association, and organisation of vocational and technical education. The Preamble also states that the failure of any nation to adopt human conditions of labour is an obstacle in the way of other nations desiring to improve labour conditions in their own countries. The three main functions of the ILO are; • • • to establish international labour standards; to collect and disseminate information on labour and industrial conditions; and to provide technical assistance for carrying ort programmes of social and economic development.

From the very beginning, the ILO has been confronted with the tremendous task of promoting social justice by improving the work and conditions of life in all parts of the world. The ILO consists of three principal organs, namely, the International Labour Conference, the Governing Body and the International Labour Office. The work of the Conference and the Governing Body is supplemented by that of Regional Conferences, Regional Advisory Committees, Industrial Committees, etc. The meeting of the General Conference, held normally every year, are attended by four delegates from each member State, of whom two are government delegates and one each representing respectively the employers and the work people of the State. The International Labour Conference is the supreme organ of the ILO and acts as the legislative wing of the Organisatoin. The General Conference elect the Governing Body, adopt the Organization’s biennial programme and budget, adopt international labour standards in the form of conventions and Recommendations and provide a forum for discussion of social and labour issues. The Governing Body is the executive wing of the Organisation. It appoints the Director-General, draws up the agenda of each session of the Conference and examines the implementation by member countries of its Conventions and Recommendations. The International Labour Office,
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objectives and functions of ILO. etc. the ILO has relied on its standard-setting function. What are the problems of a trade union? 4. Wilfred Jenks describes the International Labour Code as the corpus juris of social justice. democratic and changing social order necessary for lasting peace. health. industrial safety. Review Questions 1. these instruments have been included in the category of “international labour legislation”. One of the fundamental obligations imposed on governments by the Constitutions of the ILO is that they must submit the instruments before the competent national or State or provincial authorities within a maximum period of 18 months of their adoption by the Conference for such actions as might be considered practicable. On the other hand. the Governing Body. The ILO adopted a series of Conventions and Recommendations covering hours of work. a Recommendation creates no such obligations but is essentially a guide to national actions. labour inspection. What are the functions of a trade union? 3. 2. when ratified. etc. The Director-General is the chief executive of the International Labour Office. social security. employment of women. freedom of association. These dynamic instruments continue to be the principal means at the disposal of the ILO to strive for establishing a just. provides the secretariat for all conferences and other meetings and is responsible for the day-to-day implementation of the administrative and other decisions of the Conference. Trace the origin and growth of trade union movement. employment. An important aspect of its work relates to the provision of assistance to member States. wages and wage fixation. hygiene. It also serves as a clearing house of information on all labour matters. These Conventions and Recommendations taken together are known as the “International Labour Code”. labour-management. relations. The international labour standards take the form of Conventions and Recommendations. children and your persons. In order to achieve its objective. creates binding international obligations on the country concerned. night work. 42 | P a g e . weekly rest. productivity. holidays leave with wages. Briefly explain the history. A Convention is a treaty which.whose headquarters are located at Geneva. In fact.

UNIT – III 4. 6. Industrial Disputes Grievances Handling Employee Discipline 43 | P a g e . 5.

Attempts by management to introduce changes (such a rationalization. 44 | P a g e • • • • • . 1947. Mental inertia on the part of both management and labour. but predominantly economic. Bad working conditions. and ‘industrial dispute’ means “any dispute or difference between employers and employees or between employers and workmen or between workmen and workmen. therefore. industrial dispute does not merely refer to difference between labour and capital as is generally thought. but it refers to differences that affect groups of workmen and employers engaged in an industry. Causes of Industrial Disputes The causes of industrial conflict or disputes have been much varied. which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person. terms of employment or the conditions of labour where the contesting parties are directly and substantially interested in maintaining their respective contentious constitute the subject-matter of an industrial dispute.Lesson 4 Industrial Disputes Meaning According to Section 2(K) of the Industrial Disputes Act. the differences of opinions between employers and workmen in regard to employment. non-employment. Lack of proper fixation of wages inconformity with cost of living and a reasonable wage structure generally. Some important factors responsible for industrial conflict and poor industrial relations many be briefly stated as follows: • Management’s general apathetic towards workers or employees because of their contention that they want more and more economic or monetary rewards and want to do less work. These may be described partly a psychological or social and partly political. Lack of competence or training on the part of first-line supervision as well management at upper levels in the practice of human relations. Thus form the legal point of view. modernization or automation) without creating a favourable to appropriate climate or environment for the same. Essentially.

Growing factional and personal difference among rank-and-file employees who are union members or union leaders and a tendency on the part of the management in some cases to prefer having with outside leaders and not give due respect to worker-leaders. The following points may be noted regarding the definition of strike: 45 | P a g e . Inadequate collective bargaining agreements. Strike “Strike” means a cessation of work by a body of persons employed in any industry acting in combination. often resulting in insubordination or disobedience on the part of employees. A fall in the standard of discipline among employees largely due to wrong or improper leadership. A spirit of non-cooperation and a general tendency among employees to criticize or oppose managerial policies or decisions even when they may be in the right directions. Combination of too much law and too little respect for law even at high levels. or a concerted refusal or a refusal under a common understanding or an number of persons who are or have been so employed to continue to work or to accept employment. unfair labour practices (such as victimization or undue dismissal). Difference in regard to sharing the gains of increased productivity. • • • • • • • • • Forms of Disputes Strikes. Legal complexities in the industrial relations machinery or settlement of industrial disputes. Lack of strong and healthy trade unionism. Political environment of the country. lockouts and gheraos are the most common forms of disputes. lack of a proper policy of union recognition and inter-union rivalries.• • • Assignment of unduly heavy work-loads to worker. Lack of necessary changes in the working of government in accordance with changing needs and circumstances. and Agitation and wrong propaganda by selfish labour leaders to further their own interests of their own party.

refuse to do work. Further. Lightning or wildcat strike: A wildcat strike is an unofficial strike i.L. it will not constitute a strike. If on the sudden death of a fellow-worker.J. sit-down. The striking workman. Such strikes are prohibited in public utility services under Section 22 of the Industrial Disputes Act. could not be given work. Vs. Such strikes occasionally occur in violation of the no-strike pledge in collective bargaining agreements. • • • Types of Strike • Stay-in.J. 46 | P a g e • • • • . The management can take disciplinary action for the absence of workmen. But if due to such an fact. A concerted refusal or a refusal under a common understanding of any number of persons to continue to work or to accept employment will amount to a strike. Sympathetic strike : Cessation of work in the support of the demands of workmen belonging to other employer is called a sympathetic strike. 1947.L. Go-slow: Go-slow does not amount to strike. Even when workmen cease to work. All such acts on the part of the workmen acting in combination.• • Strike can take place only when there is a cessation of work or refusal to work by the workmen acting in combination or in a concerted manner. 1964-I L. Madras. Their Workmen). in Remalingam Vs. the workmen after taking their seats. Going on mass casual leave under a common understanding amounts to a strike. even those present for work.e. pen-down strike: In all such cases. but it is a serious case of is conduct.81. the relationship of employers and employees is deemed to continue albeit in a state of belligerent suspension. it amounts to a strike (National Textile Workers’ Union Vs. However. 516). Indian Metallurgical Corporation. A general strike is one when there is a concert of combination of workers stopping or refusing to resume work. In such a situation union is obliged to use its best efforts to end the strike. it was held that such cessation of work will not amount to a strike since there is no intention to use the strike against the management. the standing order of a company generally required for notice. it will amount to strike (Pepariach Sugar Mills Ltd. the workmen acting in concert refuse to resume work. Shree Meenakshi Mills (1951) II L. must be employed in an ‘industry’ which has not been closed down. If it is peaceful and does not result in cessation of work. a strike not sanctioned by the union. Hunger strike: Some workers may resort to fast on or near the place of work or residence of the employers. amount to a strike.

Section 22 and 23 of the IDA provide for certain restriction which if not followed make strikes and lockouts illegal from their very commencement. According to this section.P. and Those which are not illegal at the time of commencement but become illegal subsequently. Illegal strikes and lockout are of two types: • • Those which are illegal form the time of their commencement. within 6 week before striking. is the counterpart of strike – the corresponding weapon the hands of employer to resist the collective demands of workmen or to enforce his terms. A strike or lockout commenced or continued in contravention of those restriction is termed illegal and there is serve punishment provided for the same. 17 of the Trade Unions Act on the grounds of its being a concerted activity. It has been held by the courts that the suspension of work as a disciplinary measure does not amount to lockout. lockout.• Work-to-rule: Since there is a no cessation of work. no person employed shall go on strike in breach of contract• • Without giving notice of strike to the employer. as here matter provided.C. temporary suspension of work called lay-off is not lockout. Similarly. it does not constitute a strike. thus. Lockout Section 2(1) of the Industrial Disputes Act. 1947 defines “lockout” to mean the temporary closing of a place of employment or the suspension of work. The Industrial Disputes Act lays down several restrictions on the rights of both the parties. and is not saved by Sec. Regulation of strikes and lock-outs Employees do not have an unfettered right to go on strike nor do employers have such right to impost lockout. It amounts to criminal conspiracy under Section 120-A of the I. or Within fourteen days of giving such notice. or 47 | P a g e . or the refusal by an employers to continue to employ any number of persons employed by him. Gherao Gherao means encirclement of the managers to criminally intimidate him to accept the demands of the workers.

1. 28] : Any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out shall be punishable with an imprisonment for a term which may extend to 6 months. shall be punishable with imprisonment for a term which may extend to 1 month. continues or otherwise acts in furtherance of a strike which is illegal. or with fine which may extend to Rs. [Sec.• • Before the expiry of the date of strike specified in any such notice as aforesaid. or with fine which may extend to Rs.26(2): Any employer who commences.000 or with both. 3. or with fine which may extend to Rs. 50. 2. or During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after the conclusion of such proceedings. 48 | P a g e . Penalty for instigation. Penalty for illegal strikes [Sec. a strike or lock-out which is illegal.000 or with both.26(1)]: Any workman who commences. 4. continues or otherwise acts in furtherance of a lock-out which is illegal. 1. shall be punishable with imprisonment for a term which may extend to 6 months. 1. Consequences of illegal strikes and lock-outs. Penalty for giving financial aid for illegal strikes and lock-outs [Sec. 1. Penalty for illegal lock-out [Sec. or otherwise acts in furtherance of. or with both. shall be punishable with imprisonment for a term which may extend to 1 month. etc. or with fine which may extend to Rs. 27]: Any person who instigates or incites others to take part in.000 or with both.

Act. The code which was approved by major national trade unions and principal organisation of employers enjoyed on them to create an environment of mutual trust and cooperation and to settle the disputes by mutual negotiation. conciliation and voluntary arbitration.D. A few important provisions of code of discipline are: 49 | P a g e .Machinery Relations for Prevention and Settlement of Industrial The machinery for prevention and settlement of the disputes has been given in the following figure: Machinery for Prevention and Settlement of Industrial Relations Voluntary Methods Code of Discipline Tripartite Machinery Government Machinery Statutory Measures Worker’s Participation Collective Bargaining I. 1947 State Acts Labour Administration (States & Central Levels) Works Committee Conciliation Voluntary Arbitration Court of Enquiry Adjudication Conciliation Officers Conciliation Board Labour Court Industrial Tribunal National Tribunal Voluntary Methods Code of discipline Formally announced in 1958. It required the employers and workers to utilize the existing machinery for the settlement of disputes. unions and employers. the Code of Discipline provides guidelines for the workers.

pattern of management relations and subject or area of participation. the Central Implementation and Evaluation Committee and the Committee on conventions. workers and employers. and the same number of workers’ and employers’ organisatoins. it gives him the freedom and the opportunity for self-expression. intimidation.• • • Strikes and lockout cannot be declared without proper notice. According to one view. these committees include representatives from centre and the states. he has a legitimate right to have a share in influencing the various aspects of company policy”. Self Management. the International Committees. Generally. yet they carry considerable weight among the government. According to G. the Standing Labour Committee. workers participation is based on the fundamental concept that the ordinary workers invest his labour in. pride and accomplishment. The forms of workers participation in management vary from industry to industry and country to country depending upon the political system. Walpole. There should be no go slow statistics or any resort to deliberate damage to plant or property or resort to acts of violence. The concept of workers participation in management is based on “Human Relations” approach to management which brought about new set of values to labour and management. therefore. It provides for the integration of his interests with those of the management and makes him a joint partners in the enterprise”. The forms of workers participation may be as follows: 1.S. coercion etc. Workers’ participation in management Workers’ participation in management is an essential ingredient of industrial democracy. Joint Consultation Modes 2. Tripartite machinery Tripartite machinery consists of various bodies like Indian Labour Conference. Joint Decision Model 3. his place of work and. or Auto Management Scheme 50 | P a g e . The code has moral sanction only and it does not entail any legal liability or punishment. The parties should not take any action without consulting each other. and ties his fate to. These various committees are basically of advisory nature. participation in management gives the workers a sense of importance. a feeling of belonging to his place of work and a sense of workmanship and creativity.

Some States like Maharashtra. in the States 51 | P a g e . However. working conditions. and Industrial Tribunals are some of the agencies through which the Central Government discharges its functions related to framing of labour laws and settlement of industrial disputes. and Rajasthan have their own Acts.4. M.e. thereby. Collective bargaining Collective bargaining is a source of solving the problems of employees in the work situation collectively. The employees put their demands before the employers and the employers also gives certain concession to them. 1947 applies. the negotiations are between the employers without a thirds party’s intervention. U. fringe benefits etc.. It also helps the works to achieve reasonable wages. The rationale of workers’ participation in management lies in that it helps in creating amongst the workers a sense of involvement in their organisatoin. working hours. Statutory Measures – Industrial Disputes Act. The Labour Secretary is the overall incharge of policy formulation and administration. It provides a good climate for discussing the problems of workers with their employers. In the rest of the states. they show much initiative and accept responsibility substantially. It also provides the employer some control over the employees. the Director General of Factory Advice and Labour Institutes. The process of collective bargaining is bipartite in nature i. The Directorate General of Employment and Training (DGET). Thus collective bargaining serves to bridge the emotional and physiological between the workers and employers through direct discussions.P.P. Industrial Disputes Act. The State governments with the cooperation of their labour departments are responsible for the enforcement thereof. 1947 The States are free to frame their own labour laws as the labour falls in the concurrent list. Office of Chief Labour Commissioner (CLC) (Central). the Director General of Mines Safety (DGMS).. It provides them a collective strength to bargain with the employer. promoting efficiency and increased productivity. Government Machinery The Ministry of Labour and Employment at the centre is the key agency for the policy formulation and administration in all the matters pertaining to labour. Workers Representation on Board It should be borne in mind that when individuals are provided with opportunities for expression and share in decision-making. Thus it ensures that the management cannot take unilateral decisions concerning the work ignoring the workers. and commissioners of labour in the States are the operative arms for the effective implementation of Labour Laws. a better understanding of their role in the smooth functioning of industry and provides them a means of self-realization.

1947 provides for setting up works committees in every organisation having 100 or more employees. Under the Act the following authorities have been proposed for the investigation and settlement of industrial disputes. 52 | P a g e . Though the act does not define the jurisdiction of these committees. A work committee aims at promoting measures for securing the preserving amity and good relations between employees and workers. Additional and Deputy Commissioners of Labour act as Conciliation Officer for disputes arising in any undertaking employing less than twenty workers. Works committees The IDA. However. Having representatives of employees and employees. Conciliation When the services of a neural party are availed for the amicable solution of a dispute between the disputing parties.having their own Acts. Usually at the State level. his intervention becomes mandatory. It consists of equal number of representatives of employers and employees under the chairmanship of an independent person. the IDA. Commissioners of Labour. The IDA. these are consultative bodies and are set up for maintaining harmonious relations at the work lace and sort out the difference if any. In case of existed or apprehended dispute. 1956 incorporated Section 10A favouring voluntary arbitration. Formally announced in 1947. the Industrial Disputes Act. 1947 will be applicable to the industries not covered by the State Legislation. In the conciliation process the officer ties to bring the disputing parties together towards a settlement of the dispute and hence works as a mediator. yet their functions mainly include providing proper working conditions and amenities for the welfare of employees at the work place or away from the work. The Board of Conciliation is a higher forum and is constituted for a specific dispute. appointed by the government. this practice is known as conciliation. The Conciliation Officers are appointed by the Government by notifying in the Official Gazettee. The Board has to submit its report to the government regarding the dispute within two months from the date dispute was referred to it. the period can be extended. The success of voluntary arbitration depends on “a sufficient degree of mutual confidence in decision by agreement on subjects which may be submitted for arbitration”. depending on the case. Voluntary arbitration Industrial Disputes (Amendment) Bill. has been amended several times since then. The intervention of conciliation officer may e mandatory or discretionary. 1947 provides for conciliation and it can be utilized either by appointing Conciliation Officer or by setting up Board or Conciliation. But in the disputes related to public utilities in respect of which proper notice is served to him. the disputing parties can enter into an arbitration agreement in writing.

who is or has been a judge of a High Court. The first two bodies can be set up either by State or Central Government but the National Tribunal can be constituted by Central Government only. The jurisdiction of Industrial Tribunal is comparatively wider than Labour Courts. What is an industrial dispute? What are the causes of industrial disputes? 2. constituted just to reveal the causes of the disputes and does not care much for the settlement thereof. Explain various machineries for settlement of industrial disputes. Review Questions 1. A Labour Court consists of one person only. and further the Presiding Officer of Tribunal can have two assessors may be appointed by the Central Government to help its Presiding Officer. Labour Courts and Tribunals are now required to submit award to the appropriate government within three months in case of individual disputes The submitted award shall be published by government within 30 days from the date of its receipt. when it thinks that the solution of dispute is of national significance. This machinery consists of Labour Court. What are the forms of industrial disputes? 3. The Court of Enquiry is required to submit its report to the government ordinarily within six months from the commencement of enquiry. Hence it is a compulsory method which provides for three-tier system for adjudication of industrial disputes. The report of the court shall be published by the government within 30 days of its receipt. unless declared otherwise by the appropriate government.Court of enquiry The IDA. Industrial Tribunals and National Tribunal. 53 | P a g e . This body basically is a fact-finding agency. Adjudication If the dispute is not settled by any other method. It shall come into force on the expiry of 30 days from the date if its publication and shall be operative for a period of one year. the government may refer it for adjudication. called Presiding Officer. 1947 empowers the appropriate government to constitute a Court of Enquiry.

whether exposed or not. efficiency and productivity. conciliation agreeme4nts or adjudicators’ awards”. Areas of Grievances Grievances resulting from working conditions • • • • • • Poor physical conditions of work place. whether valid or not.Lesson 5 Grievances Handling A grievance is a sign of the employees’ discontent with job and its nature. In the Indian context. Therefore. Lack of proper tools. ‘grievance’ may be said to “the representation by a worker. Frequent changes in schedules or procedures. breach of the freedom of association or the provisions of standing orders or non-implementation of the Government orders. It is caused due to the difference between employee expectation and management practice. arising out of anything connected with the company which an employee thinks. Jucius defines a grievance as ‘any discontent or dissatisfaction. It may be conce4ring a situation or may likely to affect the terms and conditions of employment of one worker or a few workers. lock outs and other forms of conflicts. Rigid production standards Improper matching of the worker with the job. ‘any dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the notice of the management. Poor relationship with the supervisor. Grievances usually result in definite and considerable loses to employee morale. Beach defines a grievance as. It may also include representation against non-compliance with provision of a collective agreement in an establishment where it has been signed. unjust and inequitable’. A grievance is a problem submitted by an employee or by a few employees of different types. believes or even feels to be unfair. The accumulation of grievance leads to strikes. machines and equipments. a group of workers or the unions to the management relation to the terms and conditions of employment. 54 | P a g e . proper disposal of grievances deserves special and adequate consideration in any programme of harmonizing industrial relations.

he should be able to snuff the causes of grievances. This method will give general pattern of grievances. leave travel concession etc. Directive observation: Knowledge of human behaviour is requisite quality of every good manager. periodic interviews with the employees. This he can do without its knowledge to the employee.Grievances resulting from management policy and practices • • • • • • • • • • • Poor payment Lack of job security Inadequate benefits such as medical benefits. From the changed behaviour of employees. group meetings and 55 | P a g e . Leave facilities Seniority Transfer Promotion Lack of career planning and development Hostility towards labour union Defective leadership style Communication gap Grievances resulting from alleged violations of • • • Violation collective bargaining agreement Violation of Central/State laws Violation of common rules Grievances resulting from personal maladjustment • • Over ambition Excessive self-esteem Methods of Indentifying Grievances The following methods can help the employer to identify the grievances: 1. In addition to normal routine.

should have easy access to the chief executive to get his grievances redressed. Moreover management’s interest is also limited to the free and fair views of employees. Exit interview: Higher employee turnover is a problem of every organisation. the policy is preached most but practiced very rarely in Indian organizations. The procedure adopt by the management in handling the grievances must be apparent. Exit interviews may be conducted to know the reasons for leaving the job. 3. But this method will be more useful in absence of an effective grievance procedure. otherwise the organisation will do well to have a grievance procedure. The management should also display a sincere interest in the problems of employees and their constructive willingness to be to help to them with a view to gain not only their confidence but also their utmost loyal by and genuine cooperation. Open door policy: Most democratic by nature. Properly conducted exit interviews can provide significant information about the strengths and weaknesses of the organisation and can pave way for further improving the management policies for its labour force. 2. Principles or Guidelines for Grievance Handling 1. Steps in handling grievances It is important that grievance must be handled in a systematic manner. 2.collective bargaining are the specific occasions where direct observation can help in unfolding the grievances. Grievances should be handled in terms of their total effect on the organisation and not solely their immediate or individual effect. the fear of managerial action is avoided. Due to anonymity. even at the lowest rank. In handling grievances. gathering data from them and passing on various types of information. should conform to definite patterns and adhere to well tested rules. Such talks to be most effective. The employees can file anonymous complaints about their dissatisfaction in these boxes. 3. The following steps should be taken in handling grievances: 56 | P a g e . Open door policy demands that the employees. 4. Employees leave the organisation either due to dissatisfaction or for better prospects. The manager must seek to develop an attitude towards employees that should be helpful in gaining their confidence. 4. Grip boxes: The boxes (like suggestion boxes) are placed at easily accessible spots to most employees in the organisation. a considerable amount of time must be spent in talking to employees.

In the case of non-settlement. the management is required to designate the persons for each of the various departments to be approached by the works and the department heads for handling grievances as the second step. Applying the solution. First. The formal conciliation machinery will not be invoked till the 57 | P a g e . Following up the case to see that it has been handled satisfactorily and the trouble has been eliminated. the grievance is taken up by the Grievance Committee which should make its recommendations to the manager within seven days. Establishing tentative solutions or answers to the grievances. the aggrieved worker/ employee can beet the departmental head along with the departmental representative of the management and this step is allotted three days. 4. 2. Thus a formal procedure which attempts to resolve the differences of parties involved. A grievance procedure is an ordered multistep process that the employer and employee jointly use to redress grievances and resolve disputes that arise. in an orderly.1. For handling grievances. the grievance may be referred to voluntary arbitration. Gathering additional information to check the validity of the solutions and thus ascertain the best possible solution. may be defined as grievance procedure or grievance redressal machinery. Failing this. 5. A Grievance Committee may also be constituted with representatives of workers and management. how. and 6. he can make an appeal for revision and the management has to communicate its decision within a week. If the employee is not satisfied. to whom and why the grievance occurred. Grievance handling procedures Grievance procedure is the most significant channel through which dissatisfaction of employees can be communicated to management. peaceful and expeditious manner. The model grievance producer give the various steps through which a grievance should be processed. the grievance is taken to the departmental representative of the management who has to give an answer within 48 hours. as a first step. Defining. The final decision of the management has to be communicated to the workers or employee concerned within three days of the Grievance Committee’s recommendations. describing or expressing the nature of the grievances as clearly and fully as possible. Above this. 3. where. The steps in this machinery vary from organisation to organisation. Gathering all facts that serve to explain when.

in turn. The main object of grievance procedure is to resolve the grievance at earliest possible stage. investigate the matter personally and give a reply within a further period of 3 days to one week. consult the Personal Department if necessary and give a reply to the aggrieved employee within a period of 3 days to one week. yet they should be resolved as close as possible to their source. The supervisor will look into the complaint. Although the grievance procedure gives the employees opportunity to raise their grievances to the highest possible level of management. CASE Sandoz (India) Limited Grievance Settlement Procedure 1. discuss with his departmental head if necessary. If the aggrieved employee is not satisfied with the reply received from his supervisor. but also for his management. who will. If the employee concerned is still not satisfied. 58 | P a g e . If the employee still continues to be aggrieved. the workman or employee has the right to appeal either to the dismissing authority or to a senior authority specific by the management within a week from the date of dismissal or discharge. 3. he may approach the Factory Manager either personally or in writing for the redressal of his complaint. in turn. he may approach his departmental head. Any aggrieved employee may approach his immediate supervisor for the redressal of any complaint regarding his work. conditions pertaining to his work. In the case of any grievance arising out of discharge or dismissal. etc. who will. he may approach the Management through the Union when the matter is taken up at the UnionManagement forum for settlement on tripartite basis or by adjudication/ arbitration.final decision of the top management has been found unacceptable by the aggrieved employee. 4. but seen to be done and the presence of a trade union representative with the aggrieved party helps to ensure fair play not only for the employee concerned. The management must convince itself that justice is not only done. The Factory Manager will look into the complaint and the reply given by him will be final in the matter. Such a reply in given generally within a week. 2.

2. If it is necessary for the workman to leave the work place on a call from any authority under this procedure. Define ‘grievance’ and state the causes of grievances. 6. Discuss briefly grievance handling procedures. previous permission from his immediate superior should be obtained. 59 | P a g e . Indicate the guidelines for handling grievances. If a grievance arises out of an order given by the Management. Review Questions 1.5. the said order shall be complied with before the workman concerned invokes the procedure laid down for redressal of grievances. 3.

regulations and procedures which are deemed to be necessary to the attainment of an objective. for the maintenance of industrial peace and for the prosperity of the industry and the nation. Negative Discipline. it is the training that corrects. It is also a punitive or a big stick approach which imposes a penalty or punishment in case of disciplinary violations. It is immeasurably more effective and pays a greater role in business management. and abide by the rules of conduct and standards or work which have been established to ensure the successful attainment of organizational objectives. It is a determinative and positive willingness which prompts individuals and groups to carry out the instructions issued by management.Lesson 6 Employee Discipline Discipline may be defined as an attitude of mind which aims at inculcating restraint. In any industry discipline is a useful tool for developing. second. Discipline is a product of culture and environment and a basic part of the management of employee attitudes and behaviour. it is punishment or chastisement. Meaning Webster’s Dictionary gives three meanings to the world “discipline”. 60 | P a g e . In other situations. improving and stabilizing the personality of workers. includes both the application of penalties for violation and the fear of penalties that serve as a deterrent to violation. negative discipline becomes unavoidable. on the other hand. one is positive and the other is negative. Spiegel. and third. it is force or fear of force which restraints an individual or a group from doing things which are deemed to be destructive of group objectives. According to Dr. It is a process of bringing multifarious advantages to the organisation and its employees. Positive Discipline employs constructive force to secure its compliance. Positive discipline prevails only where the employees have a high morale. it is control gained by enforcing obedience. Industrial discipline is essential for the smooth running of an organisation. moulds. There are two types of discipline. strengthens or perfects individual behaviour. “discipline is the force that prompts an individual or a group to observe the rules. for increasing production and productivity. orderly behaviour and respect for and willing obedience to a recognized authority. First.

coordinate and motivate workers. Hence indiscipline is to be checked by appropriate positive means to maintain industrial peace. 61 | P a g e . Indiscipline The term ‘indiscipline’ generally means the violation of formal or informal rules and regulations in an organisation. the attitude of the management towards workers. Low wages and poor working conditions. are the causes for indiscipline. To develop among the employees a spirit of tolerance and a desire to make adjustments. if unchecked. To increase the working efficiency morale of the employees. The important causes for indiscipline are: • • • • • • Ineffective leadership to control. Causes for indiscipline in organizations It is more complex and difficult to identify the causes of indiscipline. To give and seek direction and responsibility. regulations and procedures of an organisation so that organizational objectives can be attained. Indiscipline. individual behaviors etc. The policies and procedures of organizations. To create an atmosphere of respect for human personality and human relations. the attitude of workers. drinking. Political influence. Lack or defective grievance procedure. Character of the workers such as gambling. Lack of timely redressal or workers’ grievances.Aims and objectives The main aims and objectives of discipline are: • • • • • • To obtain a willing acceptance of the rules. violet nature etc. and To impart an element of certainty despite several differences in informal behaviour patterns and other related changes in an organisation. will affect the morale of the organisation.

all defaulters should be treated alike. sensible and useful. Employees in a group should be associated in the process of discipline enforcement. and. certain principles are to be observed such as: 1.. should be recorded. Informal groups are likely to exert social pressures on wrong-doers avoiding the need for negative disciplinary actions. Further. In serious 62 | P a g e . depending upon the nature of their offence and past record.Principle Of Effective Discipline Disciplinary actions have serious repercussions on the employees and on the industry. should be framed in cooperation and collaboration with the representatives of employees for their easy implementation. A person who has been issued with a stated number of pink slips will be liable to be laid-off or discharged. The responsibility for maintaining employee discipline should be enirusted to a responsible person (e. Therefore. 2. just and acceptable to be the employee and their unions. The rules and regulations should be flexible to suit different categories of employees in the organisation. The rules of discipline embodied in the standing orders. Any discrimination or favoritism in this regard is likely to create discontent among the employees. as far as possible. The rules must be uniformly enforced for their proper acceptance. there should be a definite and precise provision for appeal and review of all disciplinary actions. Pink slips are issued as warning signals to a defaulting employee. The group as a whole can control an individual works much more effectively than the management can through a process of remote control or by imposing occasional penalties. In some of the American industries they have what is known as the “pink slip system”.g. 5. The line executive should issue only verbal and written warnings. It serves as a warning and a learning process and helps to improve future behaviors of the employees in the enterprise. or in the company’s manual. 4. The rules and regulations should be appraised at frequent and regular intervals to ensure that they are appropriate. 6. in any discipline maintenance system. must be properly and carefully communicated to every employee preferably at the time of induction for their easy acceptance. a line executive). They must be applied fairly and impersonally. In other words. therefore. Every kind of disciplinary penalty. i.e. and no elaborate procedure has to be followed. must be based on certain principles in order to be fair. both the blue-collar workers and whitecollar employees. 7. The rules of discipline. 3. through it is the personnel officer who should be given the responsibility of offering advice and assistance. even if it is a rebuke or a warning.

problems. the employee is considered as ‘resource’ as an asset to the organisation. training. for him to discipline his subordinates under certain circumstances. leadership etc. it may offend the sense of dignity of the employee and impair his social standing with his colleagues. goals. trade unions also act as agencies in maintaining discipline in work situation. If disciplinary actions are taken in the presence of other employees. This approach analysis the cause of indiscipline from management activities such as defects in selections. 63 | P a g e . behaviors etc. the industrial relations departments should be consulted. Approaches to Discipline Enforcement The different approaches to discipline include• • • • Human Relations Approach Human Resources Approach Group Discipline Approach The Leadership Approach and Under human relations approach. if not impossible. Disciplinary actions should be taken in private because its main objectives is to ensure that a wrong behaviour is corrected and not that the wrongdoer is punished. Under human resources approach. it would lower his status and authority. the employee is treated as human being and his acts of indiscipline will be dealt from the view point of human values. corrective steps are carried out by the management. 8. The punishment should be commensurate with the gravity of the offence.. and make it difficult. sets the standard of disciplines and punishments for the deviations. needs. The management must act without bias and without vindictiveness. A punitive actions must satisfy the principle of natural justice. 9. The burden of proof is on the employer and not on the employee. after indentifying the defects. in disciplinary cases are dealt on the basis of legislations and court decisions. an immediate supervisor should never be disciplined in the presence of his subordinates. Under the leadership approach.matters. The Industrial Employment (Standing Orders) Act. aspirations. and its disciplinary actions must be based on justice and fairplay. which warrant suspension. Similarly. motivations. In this approach the employee is helped to correct his deviations. In this approach. group as a whole. An individual is presumed to be innocent until he is proved to be guilty. discharge etc.. Under group discipline approach. If this happens.

64 | P a g e . the Code is highly comprehensive and ethical in its approach to the industrial relations system. while Part IV relates to those of the unions only. management and union(s) agree • that no unilateral actions should be taken in connection with any industrial matter and that disputes should be settled at appropriate level. Annexure-A to the Code embodies the national level agreement on the criteria for the recognition of unions. Part – II: To ensure better discipline in industry. Acts of violence. Part –I: To maintain discipline in industry (both in public and private sectors) There has to be: (i) a just recognition by employers and workers of the rights and responsibilities of either party.1946 to a certain extent. as defined by the laws and agreements (including bipartite and tripartite agreements arrived at all levels from time to time). Thus. Any agreement which disturbs cordial industrial relations should be avoided. and ii) a proper and willing discharge by either party of its obligation consequent on such recognition. It has been reproduced below. Part I contains the duties and responsibilities of employees. A supplementary document contains the rights of recognized unions and a model grievance procedure. The Code embodies four parts. No unilateral action should be taken in connection with any industrial matter. Code of Discipline The Fifteenth Indian Labour Conference discussed the question of discipline in industry and lain down the following general principles: • • • • • • • • There should be no lock-out or strike without notice. The existing machinery for settlement of disputes should be utilized. workers and the government in maintaining discipline in industry. coercion or instigation should not be resorted to. prescribed the correct procedure that should be followed before awarding punishment to an employee. Part III deals with the obligations of management only. There should be no recourse to go-slow tactics. Awards and agreements should be speedily implemented. In additions. intimidation. Part II enlists the common obligations of management and unions. No deliberate damage should be caused to plant or property.

and (c) lockuts. suspension or some other form of disciplinary action and to arrange that all such disciplinary action should be subject to an appeal through normal Grievance Procedure. decisions and orders. (b) sit-down and stay-in-strikes. that affirming their faith in democratic principles. to display in conspicuous places in the undertaking the provision of this Code in local language(s). that they will avoid (a) litigation. to distinguish between actions justifying immediate discharge and those where discharge must e preceded by a warning. not to support or encourage nay unfair labour practice such as: (a) interference with the right of employees to enroll or continue as union members.• • • that the existing machinery for settlement of disputes should be utilized with the utmost expedition. and (c) victimization of any employee and abuse of authority in any form. and that they will educate the management personnel and workers regarding their obligations to each other. (b) discriminations. • • • • • • Part-III Management agrees • • not to increase work-loads unless agreed upon or settled otherwise. that they will promote constructive cooperation between their representatives at all levels and as between workers themselves and abide by the spirit of agreements mutually entered into. (c) victimization. that they will abide by various stages in the Grievance Procedure and take no arbitrary action which would by-pass this procedure. 65 | P a g e • • • . they bind themselves to settle all future differences. restraint or coercion against any employee because of recognized activity of trade unions. and (d) go-show. disputes and grievances by mutual negotiation. that neither will have recourse to (a) coercion. to take prompt actions for (a) settlement of grievance. conciliation and voluntary arbitration. that they will establish upon a mutually agreed basis a Grievance Procedure which will ensure a speedy and full investigation leading to settlement. reprimand. awards. (b) intimidation. that there should be no strike or lock-out without notice. and (b) implementation of settlements.

• Part-IV: Union(s) agree • • • not to encourage any form of physical duress. the provision of this Code in the local language(s). The Central Employers’ and Workers’ Organizations shall take the following steps against their constituent units guilty of breaches of Code: • • • • to ask the unit to explain the infringement of the Code. and 66 | P a g e . to non-members who did not observe the Code. (d) interference with or disturbance to normal work. (b) careless operation. settlements and decisions. and to express disapproval and to take appropriate action against office bearers and members for indulging in action against the spirit of this Code. and in case persistent violation of the Code. in any manner. to give notice to the unit to set right the infringement within a specific period. to warn. and (e) insubordination. agreement or practice. and not to give countenance. to discourage unfair labour practices such as: (a) negligence of duty.• to take appropriate disciplinary action against its officers and members in cases where enquiries reveal that they were responsible for precipitate action by workers leading to indiscipline. not to permit demonstrations which are not peaceful and not to permit rowdyism in demonstration. and to recognize the unions in accordance with the criteria (Annexure A given below) evolved at the 16th session of the Indian Labour Conference held in May. 1958. that their members will not engage or cause other employees to engage in any union activity during working hours. • • • • The Code does not have any legal section but the following moral sanctions are behind it: 1. (c) damage to property. agreements. unless as provided for by law. to take prompt actions to implement awards. to display in conspicuous places in the union offices.

In brief. 2. As regards the future of the Code. But. they developed an attitude of indifference. the Code will have no useful function to perform. to non-members who did not observe the Code. 4. According to the National Commission on Labour. however. a constructive approach stress on modifying forbidden behaviour by taking positive steps like educating. On the other hand. culture and attitude towards the employees. The Code began to rust and the parties were more eager to take it off. etc. grievance procedure. The spirit of the Code has not been imbibed by the central organisations which were signatories to it. the Code has had only limited success and was obviously not the answer to the industrial relations problems. The Code of Discipline worked well at the beginning of its introduction and had a considerable impact on the industrial relations scene. Discipline is a two-way traffic and a breach of discipline on the part of either party in industry will cause unrest. The concept of positive discipline promotion aims at the generation of a sense of self-discipline and disciplined behaviour in all the human beings in a dynamic organizational setting. The approach to managing discipline depends to a great extent upon managerial philosophy. instead of discipline imposed by force or punishment. the Commission was in favour of giving a legal form to its important provisions regarding recognition of unions..• not to give countenance. in any manner. A negative approach to discipline relies heavily on punitive measures and in the line with the traditional managerial attitude of “hire and fire” and obedience to orders. the impact of the Code was not sustained over a long period of time due to several problems in its application and implementation. willful and persistent breaches of the Code by any party should be widely publicized. With the removal of these provisions from the Code to give them a statutory shape. 67 | P a g e . unfair labour practices. Grave. A dispute may not ordinarily be referred for adjudication if there is a strike or lockout without proper notice or in breach of the code as determined by an Implementation. 3. and the like. Failure to observe the Code would entail derecognition normally for a period of one year-this period may be increased or decreased by the implementing Committee concerned. the approach to the disciplinary action in most cases should be corrective rather than punitive.

State the principles of code of discipline. What are the causes of indiscipline? 2.Review Questions 1. What are the principles of effective discipline? 3. 68 | P a g e .

Collective Bargaining 69 | P a g e . Workers Participation in Management 8.UNIT – IV 7.

but where the ultimate power is in the hands of the management”. According to G. and ties his fate to. Workers’ participation in management meets the psychological needs of the workers to a greater extent. According to one view. According to Dr. That way it may also be treated as the process of delegation of authority in the general areas of managerial functions. “it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them”. a feeling of belonging to his place of work and a sense of workmanship and creativity. “if it gives scope to the workers to influence its decision making process on any level or sphere or if it shares with them some if its managerial prerogatives”. “It implies a situation where workers representatives are. Clegg says. 70 | P a g e .S. participation in management gives the workers a sense of importance. To quote the version of British Institute of Management. “Workers’ participation in management is the practice in which employees take part in management decisions and it is based on the assumption of commonality of interest between employer and employee in furthering the long term prospects of the enterprise and those working in it”. he has a legitimate right to have a share in influencing the various aspects of company policy”. Davis. Alexander considers a management to be participative. Dr. It provides for the integration of his interest with those of the management and makes him a joint partner in the enterprise”. Traditionally. to some extent.Lesson 7 Workers’ Participation in Management Workers participation in management is in essential ingredient of industrial democracy. the concept of Workers’ Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organisation. workers participation is based on the fundamental concept that the ordinary worker invest his labour in. price and accomplishment. Walpole. “it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them”. Davis. it given him the freedom and the opportunity for self-expression. involved in the process of management decision making. According to Dr. therefore. his place of work and. The concept of workers participation in management is based in “Human Relations” approach to management which brought about new set of values to labour and management.

Association of worker with management provides him with a sense of importance. The rationale of workers’ participation in management lies in that it helps in creation amongst the workers a sense of involvement in their organisation. The ethical objective of participation is to develop workers free personality and to recognize human dignity. involvement and a feeling of belongingness. it may be vigorous at lower 71 | P a g e . The participation is conducted through the mechanism of forums which provide for association of workers representatives. Objectives The scheme has economic. promoting efficiency and increased productivity. thereby. Thus the concept workers’ participation in management encompasses the following: • • • • • It provides scope for employees in the decision making of the organisation. Socially. He considers himself to be an indispensable constituent of the organisation. The political objective of participation is to develop workers conscious of their democratic rights on their work place and thus bring about industrial democracy. psychological. a better understanding of their role in the smooth functioning of industry and provides them a means of self-realization. The basic idea is to develop self control and self discipline among works. the share-holders. For instance. • • • Levels of Participation Workers’ participation is possible at all levels of management. departmental level or at the top level. the community and the workers equally invested in it. they show much initiative and accept responsibility substantially. the need for participation arises because modern industry is a social institution with the interest of employer.In should be borne in mid that when individuals are provided with opportunities for expression and share in decision-making. the only difference is that of degree and nature of application. • Its psychological objective of the scheme is to secure full recognition of the workers. ethical and political objectives. The participation includes the willingness to share the responsibility by works as they have a commitment to execute their decisions. so that the management become “Auto Management”. The participation may be at the shop level.

. 3. welfare etc. safety and health.level and faint at top level. preferably with alternatives for administration and employees have to select the best from those for implementation. Workers Representation on Board 1. Associative participation: It is extension of consultative participation as management here is under moral obligation to accept and implement the unanimous decisions of employees. Sweden and Poland. This form is followed in U. or Auto Management Scheme 4.K. Administrative participation: It ensure greater share of works in discharge of managerial functions. The forms of workers participation may be as follows: 1. Self Management. Information participation: It ensures that employees are able to receive information and express their views pertaining to the matters of general economic importance. 72 | P a g e . Broadly speaking there is following five levels of participation: 1. Here. Joint consultation model: In joint consultation model the management consults with the workers before taking decisions. 4. pattern of management relations and subject or area of participation. decision already taken by the management come to employees. Joint Consultation Model 2. is called decisive participation. 2. However. Forms of Workers’ Participation in Management The forms of workers participation in management vary from industry to industry and country to country depending upon the political system. Consultative participation: Here works are consulted on the matters of employee welfare such as work. Joint Decision Model 3. 5. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relation to production. final decision always rests at the option of management and employees’ views are only of advisory nature. The workers represent their view through ‘Joint consultative Committees’.

it takes the forms of formal structures such as Works Committee. The new scheme of workers participation was applicable to all central public sector enterprises. The Joint Management Councils were established in 1950 which increased the participation of labour in management. which recommended for the setting up of Works Committees. a bill was introduced in Parliament on 25th May.S. the workers elect their representative and send them to the Board to participate in the decision making process. pay scales. Joint Management Councils.2. The participation of workers may be formal or informal. and West Germany. For electing representatives for participation it also provides for secret ballot. Self management of auto management: In this model. The appropriate government may also appoint inspectors to review participation schemes 73 | P a g e . The informal participation may be such as the supervisor consulting the workers for granting leave. The scheme could not make such head way due to lack of union leaders consensus of the mode of representation and workers’ tendency to discuss ultra-vires issues e. except those specifically exempted. This form of participation is followed in U. In the formal participation. the entire control is in the hands of workers. The scheme with equal number of representatives will operate both at shop as well as plant level. Workers’ Participation in Management in India Workers participation in management in India was given importance only after independence. For effective and meaningful participation at all levels. Workers’ representation on board: Under this method. Industrial Disputes Act of 1947 was the first step in this direction. Based on the review and performance of previous schemes a new scheme was formulated in 1983. the two-tire participation model called ‘Shop Council’ at the shop level and ‘Joint Councils’ at the enterprise level were introduced. Canteen Committee etc. and allotment of worked or transfer of workers from one department to another. 1970 gave birth to ‘Board of Management’. Safety Committee. The various functions of participative forum laid down in the scheme could be modified with the consent of parties. Yugoslavia is an example to this model. 3. 4. Joint decision model: In this form both the workers and management jointly decide and execute the decisions. The management scheme. Where the state industrial units are run by the workers under a scheme called ‘Self Management or Auto Management Scheme’. Shop Councils. 1990 all the schemes of participation were non-statutory and concentrated on particular levels. Since July 1975. 1990.g. The bill provide for effective participation at all level by formulating schemes of participation.A. wages etc. Production Committee. Prior to WPM Bill. overtime.

The preventatives of workers are not given due recognition by the management. Discuss the concept of workers’ participation in management in the Indian context. What do you understand by the concept of workers’ participation in management? What are its objectives? 2. creating an environment in the organisatoin for coordination of workers and management. Review Questions 1. The success these schemes require certain conditions. But in practice. Workers have to be educated. The attitude of trade unions towards the schemes is negative as they consider these schemes are reducing the power of Trade Unions.and the bill also has provision of punishment for those who contravene any of the provision of the Act. What are the different forms of workers’ participation in management? 3. Thus workers’ participation in management in India has yet to succeed. • • • Management should appreciate the scheme and accept them in full faith. It can be done by educating the workers. The factors responsible for the failure are: • • Attitude of the management towards the scheme is not encouraging. Some Trade Unions boycott Joint Management Council meetings. 74 | P a g e . Trade unions have to cooperate with the schemes. these schemes have not met with success though they are successful in some private sector units. Thus the workers’ participation schemes in India provide wide scope for application and upliftment of workers.

It also provides the employers some control over the employees. Let us now discuss some leading definitions: According to the Encyclopedia of social sciences. Thus it means collective negotiations between the employer and the employee. The process of collective bargaining is bipartite in nature. More specifically. “Collective bargaining is a process of discussion and negotiation between two parties. collective bargaining is a procedure. Trade Unions. which involves proposals and counter-proposals. The success of these negotiations depends upon mutual understanding and give and take principles between the employers and employees. Collective bargaining is a source of solving the problems of employees in the work situation collectively. means ‘negotiating’. offers and counter-offers. It provides them a collective strength to bargain with employer. loss incentive etc. ‘collective’ – which means a ‘group action’ through representation and ‘bargaining’. It also helps the workers to achieve responsible wages. low wages. an individual worker has to face many problems such as. relating to their work situations. management and public interpret the term in their own ways. 75 | P a g e .Lesson 8 Collective Bargaining In the work situation. The growth of trade union increased the bargaining strength of workers and enables them to bargain for their better conditions collectively. The employees put their demands before the employers and the employers also give certain concession to them. fringe benefits etc. i. by which employer and a group of employees agree upon the conditions of work”. The resulting bargain is an understanding as to the terms and conditions which a continuing service is to be performed. working hours. Thus it ensures that the management cannot take unilateral decision concerning the work ignoring the workers. the negotiations are between the employers and employees without a third party’s intervention. Meaning The term collective bargaining is made up of two words. It provides a good climate for discussing the problems of workers with their employers. working conditions. long hours of work.e. Thus collective bargaining serves to bridge the emotional and physiological gulf between the workers and employers though direct discussions. These problems of an individual or few individuals cannot attract the attention of the employer because of their less bargaining power. Definitions Collective bargaining has different meanings for different individuals or groups. one or both of whom is a group of persons acting in concert.

Salient Features • • • • • • • • It is a collective process in which representatives of employers and employees participate mutually.O. “Collective bargaining takes place when a number of work people enter into negotiation as a bargaining unit with an employer or a group of employers with the object of reaching agreement on conditions of the employment of the work people”. taking correct decisions etc. It is good form of interdisciplinary system (i. It is a flexible and dynamic process wherein no party adopt a rigid attitude. It is a practical way to establish an industrial democracy. industrial harmony is not possible. 76 | P a g e . Therefore. ethical and other aspects. Importance Whatever labour laws may lay down. a group of employers or one or more employer’s organizations. the solution to common problems can be found directly through negotiation between both parties and in this context the scope of collective bargaining is very great. on the one hand. “negotiation about working conditions and terms of employment between an employer. administrative.) It is a process that includes efforts from preliminary preparations to the presentation of conflicting view points.e. It is a continuous process which can establish regular and stable relationship between worker’s organisatoin and management.L. It is a bipartite process whereas the representatives of workers and management get an opportunity for clear and face to face negotiation.Richardson says. it is the approach of employers and trade unions which matters and unless both are enlightened. collection of necessary facts. It is a good method of promoting industrial jurisprudence. If it works well. a function embodying economic psychological. Collective bargaining is really beneficial forms the stand part of employees and their unions as well as management. The I. workers manual defines collective bargaining as. it develops a sense of selfresponsibility and self-respect among the employees concerned and thus significantly paves the way for improved employee morale and productivity. and one or more representative workers organisation on the other with a view of reaching an agreement. understanding of view points.

Improving working conditions and fair wages. It extends the democratic principles from the political to industrial field. It builds up a system of industrial jurisprudence by introducing civil rights in industry and ensures that management is conduct by rules rather than by a arbitrary decisions. The management also comes to know the grievances of workers in advance and it gives an opportunity to take precautionary measure. result in the establishment of a harmonious industrial climate which helps for the socio-economic development of the nation. if property conducted. Butler has viewed the functions as: • • • a process of social change a peace treaty between two parties a system of industrial jurisprudence Collective bargaining as a process of social change Collective bargaining enhances the status of the working class in the society. From the point of the view of the society. Moreover. However the settlement between the two parties is a compromise. collective bargaining opens u the channel of communication between top and bottom levels of an organization. It establishes rules which define and restrict the traditional authority exercised by employers over their employees placing part of the authority under joint control of union and management. its functions include: • • Increasing the economic strength to employers and employers. Wage earners have enhanced their social and economic position in relation to other groups. Functions Prof. collective bargaining. In addition to the above. It is a method of introducing civil rights into industry. Employers have also retained high power and dignity through collective bargaining.Collective bargaining restricts management’s freedom for arbitrary action and thereby management learns a new code of behaviour by conceiving of the union as a method of dealing with employees. Collective bargaining as a peace treaty Collective bargaining serves as a peace treat between the employers and employees. 77 | P a g e . Collective bargaining as an industrial jurisprudence Collective bargaining creates a system of “Industrial Jurisprudence”.

in working conditions. Collective bargaining required effective leadership on both sides. the management can recognize on which is having the support of majority of workers. If there are more than one union.• • • Maintaining peace in industry Prompt and fair redressel of grievances. Promoting stability and prosperity of the industry. The recognitions of a trade union to represent the problems is more essential. the labour should be given due consideration – in wage fixation. Management should think of realistic principles and policies for labour regulations. For management 1. on the union side and management side to moderate discussions and create confidence. This will develop mutual understanding of a problem which is more important for arriving at the solutions. 2. 78 | P a g e . In all negotiations. bonus etc. F. These principles are to be followed by the employers and unions. The management should respect the unions and the unions should recognize the importance of management. Collective bargaining process should give due consideration to hear the problems on both sides. 3. 2. and cooperation in collective bargaining rather than an indifferent attitude towards the union. Both the union and management must have good faith and confidence in discussion and arriving at a solution. There must be mutual respect on both the parties. 4. 5. 3. Campo has laid down certain principles for union and management. Arnold. Management should follow a policy of goodwill. 7. In collective bargaining both the union and management should observe the laws and regulations in practice in arriving at a solution. 6. For both union and management 1. Both the management and union should analyze the alternatives to arrive at the best solution. Prof. for management and for union. Principles of Collective Bargaining The success of collective bargaining is based on certain principles.

Direct negotiation: In this agreements are arrived at by both the parties after direct negation. 2. Management can voluntarily take measures to settle the grievances. Later these are submitted to the labour courts. Industry level bargaining 3.4. Settlements by parties: In this case settlements are arrived at by parties themselves without the interference of a third party. For unions 1. Unions have to consider the benefits to all workers rather than a section of workers. As far as possible they have to be avoided by compromise and discussion. Plant level bargaining 2. 3. negotiations are carried out by officers according to the Industrial Disputes Act. Unions have to recognize their duties to the management also before emphasizing their demands. Forms of Collective Bargaining The forms of collective bargaining differ from country to country and time to time in India. Managements should give due consideration to social and economic conditions of workers in collective bargaining. 4. Managements need not wait for trade union to represent their grievances for settlement. Collective bargaining takes the following forms: 1. 5. The enforcement of these agreements depends upon the goodwill and cooperation of the parties. Consent awards: Here the agreements are negotiated by the parties on a voluntary basis when disputes are subjudiced. National level bargaining Plant level bargaining 79 | P a g e . 3. Settlements under industrial disputes act: According to this. Strike lock-outs should be resorted to. 2. On the basis of the level (in which collective bargaining takes place) it can be classified as: 1. only as a last measure. Unions should avoid undemocratic practices. 4.

The Institute of Personal Management includes the following in a collective agreement. increased response by the managements. disputes. safety and health etc. retirements benefits and other benefits and terms and conditions of service. wages. Wages. The Contents of Collective Bargaining Agreements The scope of collective bargaining has increased during the recent years. Grievance redressal procedure. increased response by the managements. Methods and machinery for the settlements of possible future. Rights and responsibilities of management and trade unions. bonus. National level bargaining In this. Industry level bargaining Several unions of the same industry form and association and negotiate with the employers. and A termination clause Thus collective bargaining includes not only the negotiation of wages. It takes place in the particular unit between the management and the trade unions of that unit. holidays and leave with wages. hours and conditions or work. Prof. the representatives of trade unions and employers at the national level will negotiate. Randle observes that the increase in the scope of collective bargaining is due to the growth of trade unions. 80 | P a g e . increased prices and the legislations. but also working condition. definition and purpose of agreement.It is the micro level bargaining. are included in the collective bargaining. labour welfare and organizational matters. leave. transfers. Problems relating to security of trade unions. scope. • • • • • • Nature. production norms. promotions.

The committee consists of three to six members. contract agreements.Process of Collective Bargaining The process of collective bargaining consists of two stages. which includes – • • • Specific proposals of the company including the objectives of negotiation. a negotiation committee is to be formed by both the parties. The personal department prepares a personal. research staff from various Department etc. market research reports. Negotiation Stage At the negotiation stage certain proposals are put forward for mutual agreement after careful consideration. reports etc. demands acceptable after negotiation. Such proposals are based on company’s commitment to shareholders. The company will collect such information its internal sources – such as balance sheet. From the management side the representative include the chief executives. demands which cannot be accepted. the policies of trade unions and management. The trade union also collects such data from their own central organisation. (i) the negotiation state. They collect the required data relating to large number of issues such as wage. Both the management and unions will take considerable time to the preparation and negotiation. Negotiation technique or procedure In this step. Classifying the demands as demands acceptable before negotiation. consumers. workers and public. • • • Preparation for negotiation Negotiation procedure Follow up action Preparation for negotiation First the union will submit their fresh contract to the management before the expiry of existing contract (usually 30 to 60 days before the expiry). 81 | P a g e . nature of agreement in other companies etc. salary. The negotiation stage consists of three steps. and (ii) the contract administration. overtime allowance. The unions is represented by the leaders and centrals leaders. seniority. Govt. Estimating the cost of implementing the proposals. the cost of living.

Mutual understanding encourages mutual agreement. a demand for wage increase by the union. Both the parties should honour the commitment. Such negotiations go on till the “point of no return” is being reached. and make counter proposals. “if anything is more important to industrial relations than the contract itself. The supervisors will be enlightened about the agreements for their effective implementation. finance and industrial relations experts. Prof.The demands are classified as demands which need bargaining and demands which may be rejected. Both the parties should have a tolerant attitude towards each other and have a spirit of accommodation and goodwill. normally the easier demands are taken up first. The team should be headed by an appropriate person with adequate authority to take decisions. Follow-up action At this stage. • • • Pre-requisite for Successful Collective Bargaining Collective bargaining will be more effective under the following conditions: Negotiating team Negotiating team should represent all groups including production. Illiamson and Harries. it is the administration of the contract”. may be accompanied by a counter proposal for increase in production by the management. Contract Administration Agreement will be useful if they are executed properly. For example. As observed by Profs. Recognition of unions The management should recognize the trade union and analyze the facts in their representation of grievances. Both parties should have a “bargaining cushion”. the agreement is printed and circulated among all the employees. the grievance should be referred to arbitration. A rigid or irrevocable stance should always be avoided. • Cooperation between both the parties is essential. 82 | P a g e . During negotiations. Campo has laid down the following general principles for administering the contact effectively. Proper procedure should be adopted for the redressal of grievances by providing opportunity to exchange views. When a conference over the redressal of grievance reaches an impasse.

Importance to output Trade unions should also give importance to output. voluntary arbitration. cost of benefits. working conditions etc. Collective bargaining has gradually been taking roots in Indian soil. Collective bargaining is also used as a tool for bringing coordination between workers and managements. Most of the agreements were relating to wages. It also serves as tool of communication of views by both 83 | P a g e .. quality of the products. both the union and management should conduct periodic discussions to avoid strikes and lockouts. The number of agreement has been increasing. shows that out of 109 agreements 96 were relating towages.Open mind Both the management and union should have open minds to listen and appreciate each others point of view with flexibility and adjustment. Some industry level agreements were also concluded in textile industries in Bombay and Ahemadabad.F. In a study conducted by E. Before taking any decision. ‘Home Work’ on demands The union and management have to collect relevant data relating wages. Thus collective bargaining is an important method of solving problems. It includes matters relating to productivity. Routine problems The management and unions have to identify the grievances on routine basis and take appropriate action then and there. standing orders. Strikes/ lockouts Strikes and lockouts should be resorted to as last measure. in addition to their wages. Most of the collective bargaining agreements were concluded at plant level. The scope is widening. bonus. incentive schemes and job evaluation etc. If used properly it can solve the problems of both the partiesmanagement and union through mutual confidence. Internal union democracy Trade unions should encourage internal union democracy by consulting the rank and file members. company’s image etc. modernization. welfare schemes. bonus.I. thorough mutual understanding. conditions of work.

What are the pre-requisites for successful collective bargaining? 84 | P a g e . In core industries like steel. Enumerate the principles of collective bargaining. This is followed by several supplementary agreements being entered into at the plant level to cover aspects not resulted in creating uniform wage structures and fringe benefit patterns in all public sector units irrespective of the nature of industry (labour or capital intensive) and the paying capacity of a unit as determined by its financial performance. Thus. This is in sharp contrast to a private sector unit where its wages and fringe benefits are more geared to its specific requirements and circumstances. What do you understand by “collective bargaining”? What is its scope? 2. ports and docks and banks. collective bargaining is done at the national level for the industry as a whole. in many instances these4 limits are circumvented by the management by making gentleman’s promises with the unions on several issues outside the written agreement and implementing these promises over a period through administrative orders. In the long-run it will serve as an instrument for labour participation in management and pave way for he cordial industrial relations in India. one main collective agreement is entered into by the National Joint Consultative Forum on behalf of all private and public sector steel units with other unions.management and works. 3. in steel industry. This department gives the content and limits of financial commitments which a public enterpriser can make with the union during the course of bargaining. Collective bargaining in central public sector undertakings Collective bargaining in central public sector undertakings is done according to the guidelines issued by the Departments of Public Enterprises (earlier known as the Bureau of Public Enterprises). However. Review Questions 1.

EMPLOYEE COUNCELLING CONFLICT MANAGEMENT 85 | P a g e .UNIT –V 9. 10.

Professional counseling within the organisation by staff members of personnel department. It is sometimes more disastrous to suppress emotions. The man purpose of counseling in industry is to help employees in overcoming their neurotic or emotionally based illness that accounts for a substantial part of employee absenteeism and turnover. The emotional problems affect the interest of the employees himself and the organisatoin in which he is working for. Counseling is a method of understanding and helping people who have technical. personal and emotional or adjustment problems that usually has emotional contents that an employee with the objective of reducing it so that performance is maintained at adequate level or even improved upon. Forms of Counseling Counseling may be formal or informal. and Counseling by psychiatrists from inside or outside the organisation. The instrument with which the managers can achieve such balance is called counseling.Lesson 9 Employee Counseling Emotions are part of the nature of human beings and emotional upsets are part of their life. Objective of Counseling The general objective of the manager in counseling sub-ordinates is to help the individual remain effective in his job and performance of his duties in the organisatoin. Hence the managers should take steps to maintain a reasonable emotional balance of their employees and channelize their emotions on the constructive lines. The problems may reduce their productivity. morale and increase absenteeism. Formal counseling implies the direct intention of the management to structure a counseling relationship between the employee and his supervisor or sometimes a counseling specialist with adequate professional training. It takes place in the normal work situation without any predetermined schedule and is 86 | P a g e . Informal counseling is done in the natural course of human relations among individuals who have mutual confidence and respect for each other judgments. • • • Supervisor’s counseling with his subordinates periodically. Such counseling on a systematic and planned basis may take place at three levels.

The non-directive counselor deals with respect the person so affected. It is thus suggested that nondirective to counseling is. decides what should be done and give advice and suggestion to him to resolve the problem. the subordinates does not know or realize that counseling is taking place. as people do not wish to take up advice normally. It is not either wholly client centered nor wholly counselor centered but it is centered both councilor and client equally. It is defined as mutual discussion of an employee’s emotional problem to set up conditions and plans of actions that will remedy it. normally consists of the following stages: 87 | P a g e . Counseling Process The counseling process. the best among the three forms. after hearing the problems of an employee. But directive counseling seldom succeeds. no matter how good it might be. He takes the person as best to solve his own problems and he facilitates the person to reach his goal. The counselor. the nondirective counseling goes to the underlining cause. Quit often. understand him and determine the course of action to be adopted to resolve his problem. the real crisis that leads the employee to understand his problem. Techniques of Counseling On the basis of techniques counseling could be • • • Directive Counseling Non-directive Counseling Cooperative Counseling Directive Counseling centre around the counselor.considered as a part of he routine duty of a manager. The unique advantage of this type of counseling is its ability to cause the employees reorientation. Among the three from of counseling. the advice offered in directive considers the surface crises. It focuses on the counselee hence it is called ‘client centered’ counseling. The main stress is to ‘change’ the person instead of dealing with his immediate problem only. This form of counseling appears to be more suitable to managerial attitude and temperament in our country. probably. Nondirective Counseling is the process of skillfully listening the emotional problems of an employee. Professional counselors usually adopt this method of counseling. Cooperative Counseling is the process in which both the councilor and client mutually cooperate to solve the problems of the client.

if he problems are not identified in the initial stages itself and solved. his problems and needs. see to it that the councilor eventually concentrates his thoughts on his problem rather than stray away from it.Initiating This involves developing mutual understanding openness and acceptance between counselor and counseled. 88 | P a g e . they may assume a serious proportion and ultimately affect the employee and organisation resulting in poor industrial relations. Hence. his strengths and weakness. The counselor will need an alert and receptive mind for this. Concerning career problems the supervisors may refer such cases to the personnel specialists within the organisation. the line manager knows well from his experience how and what changes he may suggest that may help restoration of employee’s effective performance. The supervisors should also be aware of that personal and job related problems are largely inseparable and the employee brings his total personality to his work and hence the organizations should also help their employees to solve their personal problems to the extent possible through counseling. Again. Hence the organisatoins should take these problem seriously and solve them. This rapport building is essential to initiate the counseling. It is important for the counselor to achieve a free flow of expression-often through rumblings – of the employee. his feelings. the counselee’s own situation. Formulation of action plan This involved exploring possible solutions and formulating action plan for implementing them to make the counselee the normal person. The councilor allows the counselee to talk about anything even apparently unrelated to the issue. The councilor. If the problems are relating to technical or job related. now many organizations start adopting counseling practices and procedure to maintain better industrial relations. The counselor has to help the counselee in concentrating more on the problem and getting deeper into it and to discover the basic problems by himself. however. Exploration This involved understanding with the help of the counseling. Having understood the importance of counseling as a tool of solving the various problems of the employees and help them the maintain/ improve concentration in their work performance. Counseling and Industrial Relations When employee are affected by job related and personal problems that very much affect the organizational welfare besides their own. it is the line supervisors who must create confidence on the minds of their subordinates that they can solve even the personal problems of their employees.

What is counseling? Bring out its importance. 2. 3. Explain the forms and techniques of employee counseling in industry. Describe the process of counseling. 89 | P a g e .Review Questions 1.

Organizations contain people with divergent personalities. Conflict refers to deliberate behaviour. ideas. resulting in such aversive consequences such as strikes. ideas. conflict is an inevitable feature of organizations. goals.Lesson 10 Conflict Management Conflict is a basic fact of life in groups and organizations. He must deal with conflict in ways that promote both individual and organizational goals. The management of conflict is an essential prerequisite to sound human relations. Conflict arises out of differing perceptions. inherent in any system. • 90 | P a g e . wishes. Features • • • • • Conflict occurs when two or more parties pursue mutually exclusive goals. values or events. it could tend to become destructive. More specifically. Conflict is not an organizational abnormality but a normal aspect of social intercourse. Chung and Megginson describes conflict as the struggle between incompatible or opposing needs. not always bad and in fact an optimum level of conflict energizes the system. values and behaviours. inevitable. Conflict can exist either at the latent or overt level In conflict one side sees on opportunity to interfere with the others opportunity to acquire resources or perform activities. perceptions. Conflict is a naturally occurring phenomenon. At the same time if conflict is allowed to develop beyond control. and acts as a catharsis. Hence. “conflict is a process in which an effort is purposefully made by one person or unit to block another that results in frustrating the attainment of the other’s goals or the furthering of his or her interests”. The effective manager must understand the nature of conflict that is beneficial to the organisation and conflict that is not. sabotage and other dysfunctional behaviours. Fosters creativity and innovation. interests or people.

Latent Conflict Each episode of conflict starts with a ‘latent conflict’ but the actual conflict has not emerged. Managers have to monitor the level of conflict in the system and if there is too little or no conflict at all. Factors such as competition for scarce resources. LEVEL OF CONFLICT Optimum Level High Level Low Level Stages of Conflict Episode CONFLICT AFTER MATH LATENT CONFLICT PERCEIVED CONFLICT FELT CONFLICT MANIFEST CONFLICT CONFLICT RESOLUTION The above model presents conflict as a series of stages namely latent conflict. manifest conflict and conflict aftermath. competition for positions in the organisation exist which could become conflicts. the managers may even have to induce some level of conflict to energize the system. 91 | P a g e . felt conflict. As the level of conflict tends to go beyond the optimum level the manager must act to resolve the conflict in a manner that will be beneficial to the organisation.Level of Conflict Low level of conflict creates conditions of inertia and boredom in the system and excessive conflict results in destruction and dysfunctional tendencies. perceived conflict.

Felt conflict When the conflict makes one tense or anxious. One party perceives the other to be likely to thwart or frustrate his goals. It takes the form of conflictual behaviour including aggression. Manifest conflict This is the stage for open confrontation. If the conflict is genuinely resolved. the conflict is a felt conflict because the difference are personalized or internalized. sabotage. apathy etc. Types of conflicts Conflicts may take following forms: CONFLICT Individual Conflict Group Conflict Organizational Conflict Interindividual conflict Intraindividual conflict Interorganizati onal conflict Intraorganizat ional conflict Intergroup conflict Intergroup conflict 92 | P a g e . Conflict aftermath The aftermath of conflict may be either positive or negative for the organisation depending on how the conflict is resolved. if the conflict is merely suppressed but not resolved. it can lead to more enduring relationship between parties.Perceived conflict This conflicts results in due to the parties misunderstanding of each other true position. the latent of conflict may be aggravated and explode in more violent and serious forms. Conflict resolution When conflict is resolved in some form. all of which reduce organization’s effectiveness. it is called conflict resolution. This is called ‘conflict aftermath’.

Group conflict Inter-group conflict Every group is in atleast partial conflict with every other group it interacts with. work activities. resulting in poor performance. Generally three separate types of goal conflicts are indentified. • Approach-approach conflict: A person wants tow positive situations but can have only one. intra-personal conflict can be related to two things. perceptions. and competing for scare resources. clashes of values and interests. An individual confronting with role conflict will experience psychological stress leading to emotional problems. • • Role conflict is the result of divergent role expectations. Basically. The groups differ in goals.Individual conflict Inter-individual conflict Inter-individual or inter-personal conflict involves two or more individuals who hold polarized points of view. Goal conflict occurs when a goal that an individual is attempting to achieve has both positive and negative features. The most common reasons for inter-personal conflicts are personality differences. conflict arising due to divergent goals or conflict arising from out of multiple roles to be played. power and prestige. Intra-individual conflict Intra-individual conflict is internal to the person and probably the most difficult type of conflict to analyze. It exits when the expectations of a job are mutually different or opposite and the individual cannot meet one expectation without rejecting the other. Avoidance-avoidance conflict: This type of conflict can be resolved because a person faced two negative goals and he may not choose either of them and may simply leave the situation. The sources of intergroup 93 | P a g e . Approach-avoidance conflict: In this form of goal conflict the person attempts to achieve a goal that has both positive and negative aspects but wants to avail of positive and negative.

Line and staff conflict: It refers to conflict between line managers and staff specialists. perception and attitudes between position holders occupying different levels. The types of inter-organizational conflict are between management and government. The reasons for vertical conflicts are inadequate communication. It occurs usually in superior-subordinate relations. Intra-organizational conflict Intra-organisational conflict are mainly three kinds: • Horizontal conflict: It refers to conflict between employees of departments a the same hierarchical level in an organization. Intra-group conflict Intra-group conflict is essentially same as the bases of inter-individual conflict. with rare exception. • • Conflict Management Conflict has to be resolved as soon as the optimum level is crossed and before dysfunctional consequences start occurring. competitive incentive and reward system. Vertical conflict: If refers to any conflict between different hierarchical levels in an organisation. task interdependence. Although they may not be in agreement with these decisions. Appeals procedures 94 | P a g e . in organisation. Individuals. management and management. the abide by them. union and government etc. differences in interest. Following are some of the techniques employed to resolve conflict. recognize and accept the authority of their superiors as an acceptable way or resolving conflicts. Organizational conflict Inter-organizational conflict The bases to inter-organizational conflicts are essentially the same as the bases on inter-oup conflict. resource allocation. Dominance through position Quiet often managers use positional authority to fire a lower ranking subordinate they consider to be a trouble-maker. differences in values or perception etc.conflict are incompatible goals.

he will collaborate. accommodating. If he has high concern for himself and for others. In a conflicting situation: • • • • • If an individual’s concern for self and others is low. When the concern for ‘self’ is very low they could be very unassertive. If the concern for the other it high. Liaison groups To arbit differences between two warring factions. they would tend to the non-cooperative. Conflict Resolution Model Thompson suggested five styles such as competiting.The people in disagreements may appeal to higher authority to help them to arrive at a solution by resolving the problem satisfactorily. avoiding. each one could be more concerned above their own self or could be more concerned for the other. If he has high concern for other but low concern for himself. an arbitrator can be appoint who can use this expertise and persuasion to achieve coordination and get people together. they could be very assertive. If he has high concern for himself and low condern for others he will compete. If two parties experience conflicts. If he has medium level of concern for both himself and the other. Departments may be provided with resources that are independent of those provided for other departments. he will accommodate. collaborating and compromising to resolve conflicts. 95 | P a g e . Reduce interdependence On way to resolve conflict is to reduce interdependences. he will avoid the conflict. they could be co-operative. he will go for compromise. If the concern for he self is very high. If their concern for the other is low.

Explain ‘conflicts episode’.Concern for others High ACCOMMODATE COLLABORATE COMPROMISE AVOID Low Low COMPETE All the five styles have its own advantage and disadvantages and a suitable style depends upon both the nature of the individual and the situational factors. 3. What do you understand by ‘conflicts’? What are the types of conflicts? 2. Review Questions 1. How to manage conflicts in an organisatoin? 96 | P a g e .

welfare. advise on the steps deemed necessary to promote and rationalize 97 | P a g e . The objectives was to study and advise on the steps deemed necessary for increasing production. The agreement provided an increasing measure of closer association of the workers with the management in the working of the industry. as well as the follow-up action on the implementation of the recommendations and decisions approved by the management from time to time. the employees and the country. The three-tier setup As already indicated. the close association of employees with management came more into existence with the agreement signed in 1956. One was set up for each major department and combined ones for two or more smaller departments. The Joint Councils at their respective levels study operational results and production problems. discipline. The three-tier setup of joint councils consisted of the Joint Departmental Councils (JDCs) at the base. b) in giving employees a better understanding of their role and importance in the working of the industry and in process production. The excellent association of employees with management started with the signing of an agreement by the management and the union way back in 1956. improvement of working conditions. The Joint Consultative Council of Management (JCCM) constituting the apex body. economy. They believed this would helpa) in promoting increases in productivity for the general benefit of the organisation.CASE Industrial Relations – The tisco experience The Tata Iron and Steel Co. This is mainly due to the support established between management and labour. Therefore his needs and fulfillment of his basic necessities were as important as any other consideration in industry such as production and profit. promotion. cost. TISCO management believes that the human being is the core of the industry. The Joint Works Council (JWC for the whole organisation is at the intermediate level. Joint councils and works committees A series of Joint Councils and Joint Works Committees were subsequently set up. Limited has a history of successful industrial relations. encouragement of suggestions. improving productivity. and c) in satisfying the urge for self-expression.

production. consumption of materials etc. Achievements It is difficult to measure the success of JDCs in terms of production tonnage or savings in the cost of steel per tone. However. For example the coordination of the functioning of the various JDCs of which there were 41 in 1986. This is sought to be done through an annual meeting of Chairmen. He various improvements suggested in process and procedure elimination of defective work. During the year 1981-82. indicate the JDCs are deeply involved with the problem of productivity. These bodies have also to follow up on the implementation of their recommendations and decisions approved by management. during the past several years. the Joint Works Councils has the special function of reviewing every month the working of the departmental councils and a few other joint committees like the Suggestion Box Committee. By and large. General Safety Committee. The Council has also to advise management on economic and financial matters placed by management before it. This provides an opportunity to the various JDC officials to learn from one another the weaknesses of a particular council and the strong points of others. It is also attended by the top officials of management and the Union. Canteen Managing Committee and the Safety Appliances Committee. the Councils have succeeded in making the employees think about development and improvements. In addition to these common functions. the fact remains that. All procedural issues concerning the working of the councils are discussed and settled at this meeting. production in Tata Steel been toe the tune of 100% of the Plant/s capacity. but not those affecting the relations of company with its shareholders and managerial staff. who is also the Chairman of the Joint Works Council. it reached the all-time high figure of more than 105% of the Plant’s capacity. particularly those referred to it by the Joint Workers Council and follow up on the implementation of its recommendations. Promotions of welfare and safety. encouragement of suggestions and improvement of working conditions also fall within the purview of these Councils. 98 | P a g e . improve productivity and discipline and economize costs. import substitution. and a review made of the Scheme of Employees Association with Management as a whole. This does not mean that there are no problems in putting through the scheme. The Joint Consultative Council of Management is entrusted with the task of advising management on all matters concerning the working of he industry in respect of production and welfare. Vice-Chairmen and Secretaries of al the Councils under the Chairmanship of the General Manager (op). or taxes. is naturally a complex job.

are better educated and trained to understand the technical and managerial problems of industry and are. Yet management is not complacent as is evident from the following wordings of J. But we must not be satisfied with what we have done up to now.R. today. Tata: “In 1956. we created the consultative machinery which has proved largely responsible for the mutual trust and cooperation we have enjoyed since then. particularly they younger ones. Finally let us end with the opinion of an independent individual: “May I hope that the relationship between the great House of Tata and the Workers will be of the friendliest character. of these joint consultations has been the strengthening of the team spirit and of the sense of belonging. therefore. Our workers. in consultation with the Union. It is the privilege of both of you…to given India in object lesson in amity and goodwill”.D. which is responsible for the unique industrial harmony and cordial relationship that prevails between employees and management of Tata Steel since the past 53 years-a record indeed. and that both of them will constitute a great family bringing in unity and harmony. quite capable of enhanced participation in the management of industry. however. I have been feeling for some time that we should we take a further step forward in our joint scheme or cooperation”. -Mahatma Gandhi 99 | P a g e .The most abiding effect.

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