Industrial Relations

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Industrial-Relations
Accounting (Anna University)
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Industrial Relations
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TABLE OF CONTENTS
1. Industrial Relations- Approaches and Concepts ................................................................................. 5

Approaches to Industrial Relations.................................................................................................................6
Concepts of Industrial Relations.....................................................................................................................8
2. Evolution of Industrial Relations in India .......................................................................................... 11
Developments from 1850 to 1920 ................................................................................................................11
Developments after ILO (1920- 1950) .........................................................................................................12
Developments after 1950 ..............................................................................................................................16
3. Conflict and Dispute Resolution .......................................................................................................... 22
Collective Bargaining ...................................................................................................................................22
Strikes and Lockouts ....................................................................................................................................26
Tripartite and Bipartite Bodies .....................................................................................................................27
ILC and SLC.................................................................................................................................................28
Code of Discipline ........................................................................................................................................29
Code of Conduct ...........................................................................................................................................30
Settlement Machinery under ID Act 1947 ....................................................................................................31
4. Workers Participation in Management .............................................................................................. 34
5. Trade Unions ......................................................................................................................................... 42
Approaches of Trade Union .........................................................................................................................44
Types of Trade Union ...................................................................................................................................45
Membership of Trade Union ........................................................................................................................46
Recognition of Trade Union .........................................................................................................................47
6. Governance Structure in India ............................................................................................................ 50
Attached and subordinate Offices under MoLE ...........................................................................................50
Autonomous institutes ..................................................................................................................................51
Tribunal ........................................................................................................................................................52
Second Labour Commission 2002................................................................................................................52
National Commission for Enterprises in the Unorganised Sector ................................................................56
Initiatives by Government ............................................................................................................................57
Social Security Schemes ...............................................................................................................................63
Employers’ Organizations ............................................................................................................................68
7. International Labour Organization .................................................................................................... 72
Governance Structure of ILO .......................................................................................................................72
Conventions and Recommendations of ILO.................................................................................................74
Other bodies of ILO......................................................................................................................................77
8. International Bodies for Labour Welfare........................................................................................... 80

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1. Industrial Relations- Approaches and Concepts

Industrial Relations can be defined as the relationship between the management and the employees of an industry.
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”.
According to J. Henry Richardson "Industrial relations may be referred to as an art, the art of living together for
purposes of production.
According to Allan Flanders "The subject of industrial relations deals with certain regulated institutionalized
relationship in industry.
According to H.A. Clegg "The field of industrial relations includes the study of workers and their trade unions,
management, employers' associations and the state institutions concerned with the regulation of employment.
According to R.A. Lester "Industrial relations involve attempts at workable solutions between conflicting
objectives and values between incentive and economic security between discipline and industrial democracy,
between authority and freedom between bargaining and cooperation.
According to Bethel and others "Industrial relations refer to that part of management which is concerned with the
manpower of the enterprise whether machine operator, skilled worker or manager.
According to the ILO, "Industrial relations deal with either the relationships between the state and employers; and
workers' organizations or the relations between the occupational organizations themselves.' The ILO uses the
expression to denote such matters as "freedom of association and the protection of the right to organize and the right
of collective bargaining; collective agreements, conciliation and arbitration; and machinery for co-operation
between the authorities and the occupational organizations at various levels of the economy.
According to C. B. Kumar "Industrial relations are broadly concerned with bargaining between employees and
trade unions on wages and other terms of employment. The day to day relations within a plant also constitute one
of the important elements and impinge on the broader aspects of industrial relations.
According to V. B. Singh "Industrial relations are an integral aspect of social relations arising out of employer-
employee interaction in modern industries, which are regulates by the state in varying degrees in conjunction with
organized social forces and influenced by prevailing institutions.
According to V. Agnihotri "The term industrial relations explains the relationship between employees and
management which stems directly or indirectly from union- employer relationship”.
Actors in Industrial Relations

Industrial Relations is concerned with managing inter relationship among the 3 major actors.
1.) Workers represented by trade unions.
2.) Employers represented by employers’ associations.
3.) Society represented by the Government and various pressure groups.

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Approaches to Industrial Relations

Like other behavioural subjects, both the scenario of Industrial Relations (IR) and factors affecting it are perceived
differently by different behavioural practitioners and theorists. For example, while some perceive IR in terms of
class conflict, others view it in terms of mutual co-operation, yet others understand it related to competing interests
of various groups.
Psychological Approach
As per this approach, the problems of IR have their origin in the perceptions of the management, unions and the
workers. The conflicts between labour and management occur because every group negatively perceives the
behaviour of the other i.e. even the honest intention of the other party so looked at with suspicion. The problem is
aggravated by various social factors like the income, level of education, communication, values, beliefs, customs,
goals of persons and groups, which further influences perceptions of unions and management towards each other.
Industrial peace is a result mainly of proper attitudes and perception of the management and workers.
Sociological Approach or Industrial Sociology Approach

G. Margerison, an industrial sociologist, was of the view that the core of the problem of industrial relations was
the nature and development of the conflict itself. The conflict is itself the concept, which forms the basis for the
study of industrial relations. Industry is a community consisting of various individuals and groups with different
socio-economic backgrounds, emotions, attitudes and values, likes and dislikes. These differences together with job
factors like job content, work task and technology, wages and working and living conditions create conflicts. Besides
these, conflicts arise also due to social factors, such as the culture in the society, the value systems, institutions,
customers, structural changes, status symbols, acceptance or resistance to changes and the like. Thus industry is
inseperable from the society within which it has to function.
Human Relations Approach

Human Relations approach considers human resources to be human beings having various needs and motives.
According to this approach, any conflict of Industrial relations can only be managed by understanding and managing
the dynamics of human behaviour at individual, group and organizational level.
Unitary Approach
In this, the organization is perceived as an integrated and harmonious system, viewed as one happy family. A core
assumption of unitary approach is that management and staff, and all members of the organization share the same
objectives, interests and purposes; thus working together, hand-in-hand, towards the shared mutual goals.
Furthermore, unitary has a paternalistic approach where it demands loyalty of all employees. Trade unions are
deemed as unnecessary and conflict is perceived as disruptive. The unitary approach is often criticized and is seen
to be a tool for diverting employees away from unionism and socialism. It is also criticized to be manipulative and
exploitative.
Pluralistic Approach
In pluralism, the organization is perceived as being made up of powerful and divergent sub-groups - management
and trade unions. It was given by Kerr. This approach sees conflicts of interest and disagreements between managers
and workers over the distribution of profits as normal and inescapable. Consequently, the role of management would
lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed
as legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed not necessarily
as a bad thing and if managed could in fact be channeled towards evolution and positive change.
Marxist Approach
This perspective focuses on the fundamental division of interest between capital and labor and sees workplace
relations against this background. It assumes that conflicts are a by product of Capitalist system. It is concerned
with the structure and nature of society. It assumes that the conflict in employment relationship is reflective of the

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Machinery Concept
Taylor and other industrial engineers like Frank and Henry Gantt insisted "that management must pay attention to
such matters as the selection of employees, training methods and the development of appropriate wage policy". This
was in relation to a predominant concern with how machinery might be used effectively. In this concept, the
employer treats his employees largely as operating organisations of machines, capable of certain volume of
production.
Goodwill Concept
Employers began to provide various welfare measures to labour such as safety, first-aid, lunch rooms, rest rooms
and by realising that the welfare of their employees had a direct effect upon their productivity. At this stage, the
large employer, without a welfare movement was considered backward.
Natural Resource Concept

Workers were treated as a natural resource and steps were taken to protect the workers. Thus child labour laws,
working hours for women, workmen's compensation and health and accident legislations were passed. Occasionally
employers tried a new paternalistic idea. Further, the concept of paternalism to labour was developed.
Paternalistic Concept
Paternalism is the concept that management must assume a fatherly and protective attitude towards employees. The
paternalism does not mean merely providing benefits but it means meeting various needs of the employees as the
parents meet the requirements of the children. Management makes the decision regarding the type of benefits,
quantum and mode of providing them in the capacity of parents.
Humanitarian Concept
The humanitarian concept stated that the workers had certain "inalienable" rights as human beings and these rights
were as important as the rights of other persons and that it was management's duty to recognise these rights.
Human Relations Concept

According to this concept, the Human Relations is motivating people in organisations in order to develop team work
which effectively fulfils their needs and achieves organisational goals'. It strives to treat people as human beings
and recognises their needs to belong, and to feel important by listening to and heeding their Complaints. The focus
is on people, the emphasis is on creating a workforce with high morale. There is a sincere attempt to democratise
the organisation, to keep people content as a part of 'one big happy family'.
Citizenship Concept
As per this approach, as a citizen in a democracy has certain inalienable rights and a voice in determining and
exercising these rights, so do workers, as industrial citizens, have a right to be consulted in determining the rules
and regulations under which they work. This concept recognises that the individual worker's investment, i.e., his
human resource gives him certain rights and responsibilities, just as investment of capital resources of stockholders.
Partnership Concept
The partnership concept implies mutual responsibilities as well as sharing the fruits of a joint endeavour. Thus in
this approach the labour is being recognised as a co-human being and partner in the maintenance of an organisation.
Thus, the relationship between employees and employers is conceived of as a "partnership in a constructive
endeavour to promote the satisfaction of the economic needs of the community in the best possible manner”.

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PRACTICE QUESTIONS
1.) Match the following: ii. Power struggle to gain political power.
Concept of Labour iii. Power struggle to improve the working class.
a. Commodity concept of Labour Codes:
b. Machinery concept of Labour abc
c. Goodwill concept of Labour (A) i ii iii
d. Citizenship concept of Labour (B) ii iii i
Theme (C) iii ii i
i. Labour regarded by the employer largely as (D) ii i iii
operating organizations in industry.
ii. Labour has right to be consulted in regard to the 5.) Which of the following statements is not true
terms and conditions under which they are supposed about Dunlop's Industrial Relations System?
to work. (A) It consists of four basic components namely
iii. Labour is affected by the law of supply and actors, ideology, rules and an environmental context.
demand. (B) In respect of rules, they can be both substantive
iv. Paternalistic approach towards labour by the and procedural.
employers. (C) In respect of context, it incorporates
Codes: technological, economic and political contexts.
abcd (D) In respect of ideology, there is no need to have
(A) iii i iv ii consensus between the ideology of actors.
(B) ii iv iii i
(C) iv iii i ii 6.) Who described that "industrial relations is an art,
(D) i iii ii iv the art of living together for purposes of production
(and/or services)"?
2.) Find out the approach which does not include (A) John T. Dunlop
industrial relations (B) John H. Richardson
(A) Psychological approach (C) M. Salamon
(B) Sociological approach (D) A. Flanders
(C) Human relations approach
(D) Physiological approach 7.) The ___________ focuses on the fundamental
division of interest between capital and labor, and
3.) Three tier framework of industrial relations was sees workplace relations against this background. It
proposed by: assumes that conflicts are a byproduct of Capitalist
(A) Kochan, T.A., et. al system.
(B) Richardson J.H. (A) Unitary Approach
(C) Clark Kerr (B) Gandhian Approach
(D) John T. Dunlop (C) Sociological Approach
(D) None of above
4.) Match the themes of the three approaches of
industrial relations under contradictions perspective: 8.) Pluralistic approach perceives ______ as
Approach legitimate representative of employee interests
a. The Marxian approach (A) Trade unions
b. The Socialistic approach (B) Management
c. The Social Action approach (C) Board of Directors
Theme (D) Government
i. Power struggle to control work organizations.
ANSWERS
1. A 2. D 3. A 4. B 5.D 6. B 7. D 8. A

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An effort to get maternity benefit legislation enacted in the country was made by N. M. Joshi in 1924. That year,
he introduced a bill in the Legislative Assembly prohibiting the employment of women in factories, mines and tea
estates before and after child birth. The Bill was rejected. Later Bombay enacted first Maternity Benefit in 1929 and
Madhya Pradesh in 1930. The Royal Commission on Labour (1929-31) examined maternity acts of these two states
and recommended of similar laws all over the country. Central Maternity Benefit Act was enacted in 1961.
Giri Kamgar Mahamandal was founded by A.A. Alve and G.R. Kasle in Mumbai. This emerged as Girni Kamgar
Union in 1928 under the communists.
The Royal Commission on Labour or Whitley Commission on Labour under the chairmanship of Whitley, was
set up in 1929 to inquire into the existing conditions of labour in industrial undertakings and plantations in India.
The commission submitted its report in 1931. Some of recommendations of commission were:
1) Children should be exempted from fines imposed by the employer.
2) The minimum amount, which could be deducted by way of fine, should not exceed, in any month, half
an Anna in the rupee of the worker's earnings.
3) The sum realised as fine should be utilised for some purpose beneficial to the employees as a class and
should be approved by some recognised authority.
4) A notice specifying the acts and omissions in respect of which fines may be imposed should be posted
and any other fine should deemed to be illegal.
Then First Split took place in AITUC in 1929 session, which was presided over by J.L. Nehru over the issue of
affiliation and issue of boycott of Royal Commission on Labour. In protest, N.M. Joshi withdrew and formed All
India Trade Union Federation, AITUF in 1929.
The Second split in AITUC took place in 1931 at its Calcutta session when the extreme left wing under the
leadership of Messrs S. V. Deshpande and B T Randive broke away and formed a separate organization, named, the
All India Red Trade Union Congress, RTUC.
Thus at the beginning of 1930s, there were 3 Trade Unions, AITUC, AITUF and RTUC. Besides, there were some
other independent organisations, which followed their own methods and policies notable among them being the All-
India Railwaymen's Federation and the Textile Labour Association of Ahmedabad.
The Indian Trade Union Federation, AITUF, which had spiltted from AITUC in 1929-30 as the dissident group, and
the National Federation of Labour (NFL) which were not part of the AITUC, met in Calcutta in April 1933 and
formed the National Trade Union Federation (NTUF). It had 47 unions affiliated to it at that time with a
membership of 1,45,000.
All India Red Trade Union Congress, RTUC merged itself with the AITUC in 1935.
In the Bombay session of the AITUC in 1936, the climate was specially favourable for the complete unity in the
ranks of labour with a view to strengthening the anti-imperialist forces. Efforts were made to unify the Indian trade
union movement by bringing back the National Trade Union Federation (NTUF) also, which had gone out of the
AITUC at the 1929 Nagpur session and formed- the Indian Trade Union Federation (formed in 1930). It was again
in Nagpur, in 1938, that a unity conference took place and the AITUC accepted the conditions of merger as
suggested by the NTUF.
Transport and Dock Workers' Union was established in 1932 by P. D' Mello, a clerk in Bombay Port Trust.

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Indian National Trade Union Congress (INTUC), was founded in 1947, by Nationalist leaders led by Sardar
Vallabhabhai Patel (originated from Gandhi Seva Sangh – Hindustan Mazdoor Sevak Sangh)
The Royal Commission on Labour (which was set up in 1929 and published report in 1931) had also recommended
the introduction of legislation regarding payment of wages. To ensure prompt payment, it recommended fixed wage
periods, regulation of all deductions from wages, etc. The first step in this direction was the Payment of Wages
Act, 1936. The Act came into force from February 28, 1937.
The Bombay Textile Committee was set up in 1937 and recommended the adoption of a compulsory and
contributory scheme. The scheme provided for both cash and medical benefits and was to be financed by
contributions from the workers, employers and governments.
The Bombay Industrial Disputes Act of 1938, for the first time introduced the principle of compulsory
adjudication of industrial disputes and prohibited strikes and lock-outs under certain circumstances. Gulzari Lal
Nanda, who was one of the secretaries of the Textile Labour Association, had by then become Parliamentary
Secretary to the Chief Minister, Government of Bombay.
In 1941, a section of labour leaders, led by the Radical Democratic Leader, M.N. Roy, seceded from the AITUC
and formed a separate central organisation called the Indian Federation of Labour, IFL. IFL strongly supported
the British war effort. Jaman Das Mehta was first president of IFL in 1941. In December 1948, IFL merged and
formed Hind Mazdoor Sabha (HMS).
The introduction of a contributory sickness insurance was considered by the first and Second Labour Ministers’
Conference in 1940 and 1941 respectively but without any significant result.
Rashtriya Mil Mazdoor Sangh (RMMS) was founded by G.D. Ambedkar and was registered on August 26, 1941,
under the Trade Unions Act, in name of "Rashtriya Kamgar Sangh". It changed its name to "Rashtriya Mil Mazdoor
Sangh" in 1947 and got affiliated to INTUC.
Hirni Kamgar Union (affiliated to AITUC) was the representative union for the textile mills in Bombay prior to
1945.
Suti Mill Mazdoor Union was formed in 1947 by Congress leaders (affliated to INTUC).
Mill Mazdoor Sangha (MMS) was founded in 1947 (related to cotton textile industry in Mumbai). Mill Mazdoor
Sangha is affiliated to the Hind Mazdoor Sabha. The place of activities of Mill Mazdoor Sangha was limited to
Mumbai, while the Hind Mazdoor Sabha was active all over the country. The MMS is representative union in the
silk, hosiery and processing industries.
It was at the first session of the Labour Minister's Conference held in January, 1941 that the recommendation of the
Royal Commission on Labour to set up an Industrial Council, consisting of representatives of Government,
workers and employers, to coordinate matters pertaining to labour conditions all over India, was considered.
It was in 1942 that the Government of India preferred to set up a tripartite machinery as a national counterpart of
the International Labour Organisation, ILO for discussion of labour matters. The First Indian Labour Conference
was held in New Delhi in August, 1942. It was decided that the conference should meet once every year and a
Standing Labour Committee was set up consisting of 10 representatives of the Government, 5 representatives
each of workers' and employers'. Equal representation was given on these bodies to both the AITUC and the Indian
Federation of Labour, IFL and 1 seat was given to a representative of independent unions.

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The one-man committee of Professor B.P. Adarkar, set up in March 1943, submitted its report on a scheme of
health insurance for industrial workers in August 1944. It recommended a compulsory and contributory Health
Insurance Scheme for workers. It led to enactment of Employees State Insurance Act in 1948.
Very important landmark in the labour and trade union movement was the ILO Session held in Philadelphia in 1944,
when it adopted a Declaration of 'Human Rights' commonly known as the Philadelphia Charter. In Part I of the
Declaration the Conference reaffirmed the fundamental principles on which the Organisation is based, in particular
that:
(a) Labour is not a commodity;
(b) Freedom of expression and of association are essential to sustained progress;
(c) poverty anywhere constitutes a danger to prosperity everywhere.
The Government appointed a Labour Investigation Committee in 1944, to bring up-to date the information
incorporated in the Report of the Royal Commission on Labour (1931). Sh Rege, was the Chairman. The
Committee's main report, published in 1946, proved a valuable reference document.
The Office of the Chief Labour Commissioner attached to the labour Ministry of the Government of India was
created first in 1945 and this continued since then.
The Government of India appointed the First Pay Commission on May 10, 1946, under the chairmanship of Justice
S. Varadachariar. It was appointed to enquire into the conditions of services of government employees and to make
recommendations regarding their scales of pay, allowance, leave, retirement benefits, as well as machinery for
settlement of disputes.
The year 1946 was also marked by two important enactments, namely, the Industrial Employment (Standing
Orders) Act, 1946 and the Bombay Industrial Relations Act, 1946. G L Nanda, as Labour Minister of the Bombay
Province, amended the Bombay Industrial Disputes Act, 1938. The result was the Bombay Industrial Relations Act
1946. This Act provided for recognition of trade unions as the collective bargaining agent for an industry for a local
area and conferred several rights on such recognised unions. For the first time, there was compulsion under this
legislation on employers to recognise trade unions.
The Industrial Disputes Act 1947 was passed at the Centre, on the eve of general turmoil in the country preceding
the partition of the country. This Act provided for investigation and settlement of industrial disputes. This Act came
into force in April 1947. This Act took in many of the features of the Defence of India Rules - Rule 81A, and also
the provisions of Trade Disputes Act of 1929. Tt introduced two new features, viz., the Works Committee and
Industrial Tribunals.
In the background of mounting industrial disputes and the sure prospects of the Congress Party replacing the British
Government on the eve of India's independence, there was formed the Indian National Trade Union Congress,
INTUC on 4th May, 1947. Suresh Chandra Bannerjee was appointed as the president of provincial executive
council. It was on May 16 and 17, 1948 first Annual Conference of the INTUC was held in Bombay. It was presided
over by Harihar Nath Shastri and inaugurated by Babu Rajendra Prasad, who was the President of the Indian
National Congress.
The INTUC has been publishing Indian Worker which is its official organ. In the international sphere, the INTUC
is closely associated with the International Labour Organisation, ILO. The INTUC is the founder member of
International Confederation of World Trade Unions (ICWTU).
The post-independence era saw a developing relation between industry and labour. A conference called the First
Industrial Truce Resolution took place in 1947. This conference considered that the increase in industrial

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These 3 theories are of successive stages in the development of the Collective Bargaining process. First "marketing"
concept, looks upon collective bargaining merely as a means of setting terms for the purchase and sale of labour.
Second, the "governmental" concept, considers collective bargaining to perform the same function for industry that
the legislative branch of government performs for the state as a whole. Third, a more particularized form of the
governmental concept called the "industrial governance" concept, under which unions and management are looked
upon as exercising mutual control over their industry.
Level of Collecting Bargaining

The Bargaining levels are the various levels or hierarchies at which collective bargaining is done to resolve the
dispute between the employer and trade union. The different bargaining levels can be unit level, plant level, industry
level, territorial / geographical level & national level bargaining.
 Unit Level Bargaining: This is decentralized approach to bargaining. Unit level means individual level
bargaining. In companies like MNCs belonging to IT industry, there is educated and well aware workforce.
There are no unions in this type of industry. So whenever negotiation has to take place, it happens at
individual level.
 Plant Level bargaining: This type of bargaining takes place between an employer and a union. If there are
multiple unions, the bargaining can take place between an employer and multiple unions. The basis of
bargaining are the parameters set by a particular plant/company.
 Industry Level Bargaining: At this level, the bargaining generally takes place in a tripartite form involving
the union/unions, employer and government officer/officers. The parameters for this kind of bargaining
varies from industry to industry. For example, bargaining takes place in different form in Jute/Textile
industry than Steel industry.
 Territorial / Geographical level: The employment provisions and say pension schemes made by state/
territorial government changes depending upon area. Companies set up in varies geographical locations
cannot use same grounds or parameters for bargaining.
 National Level Bargaining: This is a centralized bargaining unit. National level bargaining is common in
public sector where wages, compensation and various other employees benefit schemes are decided at
national level. If we compare internationally, Norway is ranked highly in collective Bargaining in national
level bargaining.
Strikes and Lockouts

A Lockout is a temporary work stoppage or denial of employment initiated by the management of a company during
a labor dispute.
This is different from a Strike, in which employees refuse to work. It is usually implemented by simply refusing to
admit employees onto company premises, and may include actions such as changing locks and hiring security guards
for the premises.
Picketing is a form of protest in which people (called picketers) congregate outside a place of work or location
where an event is taking place. Often, this is done in an attempt to dissuade others from going in ("crossing the
picket line"), but it can also be done to draw public attention to a cause.
Gherao, meaning "encirclement," denotes a collective action initiated by a group of workers under which members
of the management are prohibited from leaving the industrial establishment premises by workers who block the exit
gates by forming human barricades. The workers may gherao the members of the management by blocking their
exits and forcing them to stay inside their cabins.
Go Slow is nothing but a form of strike where workers refuse to do their normal work in the usual way.

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On September 29, 1967, a special Bench of the High Court of Calcutta, in its judgement on a case of Gherao of
certain officials of Jay Engineering Works, observed that a Gherao is the physical blockade of a target, either by
encirclement or forcible occupation. The target may be a place or a person or persons, usually the managerial or
supervisory staff of an industrial establishment. The blockade may be complete or partial. If it is accompanied by
wrongful restraint or confinement or accompanied by assault, criminal trespass, mischief to person or property,
unlawful assembly and various other criminal offences, such a Gherao is unconstitutional and violative of the law
of the land.
National Commission on Labour, in its report submitted in 1969, observed that Gherao cannot be treated as a form
of labour unrest since it involves physical coercion rather than economic pressure. It is harmful, to the working class
and in the long run may affect national interest.
Strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted.
It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their
employer so that their demands get accepted. When workers collectively cease to work in a particular industry, they
are said to be on strike.
Types of Strikes are:

1) Economic Strike: Under this type of strike, labors stop their work to enforce their economic demands such as
wages and bonus.
2) Sympathetic Strike: When workers of one unit or industry go on strike in sympathy with workers of another
unit or industry who are already on strike, it is called a sympathetic strike.
3) General Strike: It means a strike by members of all or most of the unions in a region or an industry.
4) Sit down Strike: In this case, workers do not absent themselves from their place of work when they are on strike.
They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool
down' strike. If blue collared workmen do not do their work, it may be tool-down strike. If white collared workmen
do not do their work, it may be pen-down strike.
5) Slow Down Strike: Employees remain on their jobs under this type of strike. They do not stop work, but restrict
the rate of output in an organized manner. They adopt go-slow tactics to put pressure on the employers.
6) Hunger strike: in this form of industrial protest, workmen resort to fasting near the workplace in order to demand
the employer to redress their grievances.
7) Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of
unions. It is also called Quickie strike or Outlaw Strike.
8) Token Strike: A brief strike (normally one or two days) intended to convey the strong feeling of employees on
a disputed issue.
9) Flash or Lightening Strike: Workers go on a strike all of a sudden, without giving any notice or following the
procedure.
10) Jurisdictional strike: It is a worker’s strike resulting from a dispute between the members of different unions
over work assignments. It is generally over the dispute which trade union should have the right to represent a
particular group of employees in an organization.
In the Chelpark Company, a small factory in Madras, there was a Stay-in-Strike by the workers for several days in
1967. The employers appealed to the workers to vacate the premises. The Government did not intervene, nor did it
ask the workers to leave the factory premises. The Court directed the police to ensure that protection was provided
to every citizen. The court also observed that a stay-in-strike beyond duty hours was illegal.
Tripartite and Bipartite Bodies

A Tripartite body consists of Management, Workers and Government. There are a number of tripartite bodies
which operate at the Central and State levels. The Indian Labour Conference (ILC), Standing Labour Committees

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(SLC), Wage Boards and Industrial Committees operate at the Central level and State Labour Advisory Boards
operate at the State Level.
Bipartite body consists Management and Workers. Joint Management Councils, Works Committee, Canteen
Committee, Safety Committee are examples of few bipartite bodies.
ILC and SLC

Indian Labour Conference (ILC) and Standing Labour Committee (SLC) have been constituted to suggest ways and
means to prevent disputes. The representatives of the workers and employers are nominated to these bodies by the
Central Government in consultation with the All-India organisations of workers and employers.
The First Tripartite labour conference was held at New Delhi under the Chairmanship of Dr. B.R. Ambedkar. The
conference consisted of two organisations, namely, the Indian Labour Conference (ILC) and the Standing Labour
Committee (SLC). The objectives set before the two tripartite bodies at the time of their inception in 1942 were:
(a) promotion of uniformity in labour legislation;
(b) laying down of a procedure for the settlement of industrial disputes; and
(c) discussion of all matters of importance to employers and employees across India.
Please note that first (1940), second (1941) and third (Jan 1942) sessions of ILC were held as “Conference of Labour
Ministers”. It was only from fourth session of ILC in August 1942, that it was held as “Tripartite National Labour
Conference”. The first (1940) and second (1941) sessions were chaired by Ramaswami Mudaliar.
The ILC is also called as “Labour Parliament of India”.
The Labour Ministry settles the agenda for ILC/SLC meetings after taking into consideration the suggestions sent
to it by member organisations. These two bodies work with minimum procedural rules to facilitate free and fuller
discussions among the members. Please note that the ILC meets once a year (usually), whereas the SLC meets as
and when necessary.
The ILC advises the Government on any matter referred to it for advice, taking into account suggestions made by
the States and representatives of the organisations of workers and employers.
The Standing Labour Committee’s, SLC main function is to consider and determine such questions as may be
referred to it by the Central Government and to render advice, taking into account the suggestions made by various
governments, workers and employers.
All the 12 Central Trade Union Organisations, Central Organisations of employers, all State Governments and
Union Territories and Central Ministries/Departments concerned with the agenda items, are the members of the ILC.
Parity in number of representatives is maintained between the Employers’ and Workers’ Groups by allocation of
equal number of seats to each Group.
As recommended by the National Labour Conference held in September 17-18, 1982, only Trade Union
Organisations, which have, a membership of more than 5 lakhs, spread over 4 States and 4 industries are given
representation in the ILC. The Central Trade Union Organisations represented in ILC include:
1. Bharatiya Mazdoor Sangh, (BMS)
2. Indian National Trade Union Congress, (INTUC)
3. All India Trade Union Congress, (AITUC)
4. Hind Mazdoor Sabha (HMS)
5. Centre of Indian Trade Unions, (CITU)
6. All India United Trade Union Centre

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the spouse will receive 50% of the pension as Family Pension. After the death of both the farmer and the spouse,
the accumulated corpus shall be credited back to the Pension Fund.
Small and Marginal Farmers (SMFs) are those with age of 18-40 years, having cultivable land up to 2 hectares as
per land records of the concerned State/UT. The SMFs covered under any other statutory social security schemes
such as NPS/ESIC/PM-SYM/EPFO/ Institutional Land holders etc. are excluded from this scheme.
Pradhan Mantri Garib KalyanYojana (PMGKY)

In March 2020, the Government announced Rs. 1.70 Lakh Crore relief package under Pradhan Mantri Garib
KalyanYojana (PMGKY) for the poor to help them fight the battle against Corona Virus Pandemic. As part of the
said package, the Central Government announced to pay 24% of the monthly wages into EPF accounts for 6 months
of Wage-earners below Rs. 15,000 per month, who are employed in establishments having upto 100 employees,
with 90% or more of such employees earning monthly wages less than Rs. 15,000. The entire employees EPF
contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages), totalling 24% of the
monthly wages for 6 months shall be directly paid by the Central Government in the EPF accounts (UAN) of
employees, who are already members of EPF Scheme, 1952.
Atmanirbhar Bharat Rojgar Yojana (ABRY)

In Dec 2020, the Government approved Atmanirbhar Bharat RojgarYojana (ABRY) to boost employment in formal
sector and incentivize creation of new employment opportunities during the Covid recovery phase under
Atmanirbhar Bharat Package. The salient features of the Scheme are listed below:
 The Government will provide subsidy for 2 years in respect of new employees engaged on or after 1 st
October, 2020 and upto 30th June, 2021
 The Government will pay both 12% employees' contribution and 12% employers' contribution i.e. 24% of
wages towards EPF in respect of new employees in establishments employing upto 1000 employees for 2
years.
 The Government will pay only employees' share of EPF contribution i.e. 12% of wages in respect of new
employees in establishments employing more than 1000 employee for 2 years.
 An employee drawing monthly wage of less than Rs. 15000 who was not working in any establishment
registered with the EPFO before 1st October, 2020 and did not have a Universal Account Number or EPF
Member account number prior to 1st October 2020 will be eligible for the benefit.
 Any EPF member possessing Universal Account Number (UAN) drawing monthly wage of less than Rs.
15000 who made exit from employment during Covid pandemic from 01 March 2020 to 30 Sep 2020 and
did not join employment in any EPF covered establishment will also be eligible.
Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

Government of India is implementing the Pradhan Mantri Rojgar Protsahan Yojanaa (PMRPY) to incentivize
employers for new employment. The scheme launched on 9th August 2016 provides that Government of India will
pay the Employees Pension Scheme (EPS) contribution of 8.33% for all new employees enrolling in EPFO for the
first 3 years of their employment. The scheme is applicable to those having earnings Rs. 15,000 per month. For the
textile (garmenting) sector, Government of India is paying the complete 12% employers’ contribution (8.33% EPS
+3.67% EPF) for these new employees.
The business must be registered with the EPFO and must have a Labour Identification Number (LIN) that one can
acquire under the Shram Suvidha Portal. Under the PMPRY scheme, the Labour Identification Number will serve
as the primary reference number for all official communication.
PMJJBY and PMSBY

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) were
launched in 2015. PMJJBY offers a renewable one year term life cover of Rs 2 Lakh to all subscribing bank account
holders in the age group of 18 to 50 years, covering death due to any reason, for a premium of Rs. 330 per annum

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per subscriber, to be auto debited from subscriber’s bank account. Similarly, PMSBY offers a renewable 1 year
accidental death cum disability cover to all subscribing bank account holders in the age group of 18 to 70 years for
a premium of Rs. 12 per annum per subscriber to be auto debited from subscriber’s bank account. The scheme
provides a cover of Rs. 2 Lakh for accidental death or total permanent disability and Rs 1 Lakh in case of permanent
partial disability.
Rajiv Gandhi Shramik Kalyan Yojana (RGSKY)

A scheme was introduced in Employee State Insurance Act, 1948 in 2005 called Rajiv Gandhi Shramik Kalyan
Yojana. Un-employment Allowance under RGSKY is payable in case of involuntary loss of employment due to
closure of factory, retrenchment or permanent invalidity not less than 40% arising out of non-employment injury.
The Insured Persons (IP) would be entitled to unemployment allowance subject to two years of insurable
employment with 78 days contribution in each contribution period. This allowance is paid at the rate of 50% of the
average daily wages for first 12 months and at the rate of 25% for the subsequent period of 13-24 months. Under
RGSKY, in case of involuntary loss of employment, skill up gradation training is provided for duration of maximum
1 Year, so that the IP can enhance his skill and opt for other jobs. It is administered under ESIC.
Atal Bimit Vyakti Kalyan Yojana (ABVKY)

Considering the change in employment pattern and the current scenario of employment in India which has
transformed from a long term employment to fixed short term engagement in the form of contract and temping, the
ESI Corporation launched a new scheme, in Sep 2018, named Atal Bimit Vyakti Kalyan Yojana for Insured Persons
(IP) covered under the Employees’ State Insurance Act, 1948. This scheme is a relief payable in cash directly to
their Bank Account in case of unemployment and while they search for new engagement. The cash benefit given to
the unemployed persons searching for new employment will be 25% of his average earning of 90 days. The
employee should have completed 2 years of Insurable employment and has contributed not less than 78 days in each
of the 4 consecutive contribution periods immediately preceding to the claim of the relief. It is administered under
ESIC.
Employers’ Organizations
The list of Employers’ organizations is given below:
FICCI
The Federation of Indian Chambers of Commerce and Industry (FICCI) is an association of business organisations
in India. Established in 1927, on the advice of Mahatma Gandhi by G D Birla and Purushottam Das Thakurdas, it
is the largest, oldest and the apex business organisation in India. It is a non-government, not-for-profit organisation.
FICCI draws its membership from the corporate sector, both private and public, including SMEs and MNCs. It is
headquartered in the national capital New Delhi and has presence in 12 states in India and 8 countries across the
world.
CII
The Confederation of Indian Industry (CII) was established in the year 1895. It works to create and sustain an
environment conducive to the development of India, partnering industry, Government, and civil society, through
advisory and consultative processes. Its headquarter is at New Delhi.
AIOE
The All India Organisation of Employers’ (AIOE), an allied body of the Federation of Indian Chambers of
Commerce and Industry (FICCI). It is the platform for Indian Employers to raise their voice in formulating labour
and social policies to promote business, trade and economy in the country. AIOE was setup in 1932.

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EFI
The Employers’ Federation of India (EFI) was established in 1933, as an association of autonomous organizations
of industry and was set up with the purpose of protecting, promoting and championing the interests of employers
mainly in the area of human resources, industrial relations, labour problems and cognate matters.
ASSOCHAM
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is one of the apex trade associations
of India. The organisation represents the interests of trade and commerce in India, and acts as an interface between
issues and initiatives. ASSOCHAM was established in 1920 by promoter chambers, representing all regions of India
(by a group of chambers of commerce led by the Calcutta Traders Association.) The Association's head office is
located in New Delhi and regional offices are located in the cities of Ahmedabad, Bengaluru, and Kolkata.
SCOPE
The Standing Conference of Public Enterprises (SCOPE) is an apex professional organization representing the
Central Government Public Enterprises. It has also some State Enterprises, Banks and other Institutions as its
Members. SCOPE came into existence on April 10, 1973 and was formally given recognition as an apex body of
Central Public Sector Enterprises in November 1976 by a decision of the Union Cabinet.
AIMO
The All India Manufacturer’s Organisation (AIMO) was founded by Bharat Ratna Sir M. Visvesvaraya in 1941
Bombay. It was set up to represent both the trade and labour interests of the member firms in the medium and small
sectors. It has been recognized by Government as an apex Organisation of industry and given representation on
most of the policy making bodies of the Central and State Governments.
PRACTICE QUESTIONS
1.) Which of the following are the trends of industrial 3.) The __________ is an autonomous body of the
relations in the aftermath of the New Economic Ministry of Labour and Employment, Government of
Policy? India, set up in July 1974, has grown into a premier
a. Union militancy has decreased. institute of labour research and training.
b. Managerial activism has increased. (A) V.V. Giri National Labour Institute
c. Government intervention has reduced. (B) Maulaza Azad Labour Park
d. Free collective bargaining has substituted the third (C) Radhakrishnan Labour Symposium
party intervention. (D) Mazdoor Ramdas Labour Bhawan
Codes:
(A) a and b 4.) Which of the following pairs is not correctly
(B) b and d matched?
(C) a, b and c (A) Confederation of Indian Industry – 1895
(D) a, b and d (B) International Workingmen’s Association – 1864
(C) Central Board for Workers’ Education – 1987
2.) Which amongst the following is not an Attached (D) Joint Consultative Board of Industry and Labour
Office of Central Government's Labour – 1951
Administration?
(A) Office of the Chief Labour Commissioner 5.) First National Commission on Labour was set up
(Central) in the year___ under the chairmanship of____
(B) Directorate General of Employment and Training (A) 1967; Justice P. Gajendragadkar
(C) Labour Bureau (B) 1966; Ravindra Varma
(D) Central Board of Worker's Education. (C) 1966; Justice P. Gajendragadkar
(D) 1967; Ravindra Varma

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7. International Labour Organization

The International Labour Organization (ILO), founded in 1919, is a ‘United Nations Agency’ dealing with labour
issues, particularly international labour standards and decent work for all. As on Dec 2019, the ILO has 187 state
members. 186 of the 193 member states of the United Nations plus the Cook Islands are members of the ILO. ILO
headquarters is in Geneva.
Unlike other United Nations specialized agencies, the International Labour Organization has a tripartite governing
structure – representing governments, employers, and workers.
The ILO was born as a result of the peace conference at the end of World War I at Treaty of Versailles on April 19,
1919. Being an original signatory of the treaty of peace, India became member of ILO in 1919 Itself In fact, ILO is
the only international organisation that survived the Second World War even after dissolution of its parent body
‘the League of Nations’. Its main concern is to make the world know that world peace is subject to be affected by
unjust conditions of its labour. Thus, ILO deals with international labour problems.
The main objectives of ILO contained in the preamble to its constitution are to:
1. Provide social justice to workers.
2. Avoid injustice, depravation and exploitation of labour.
3. Build up human working conditions to the labour
Philadelphia declaration of ILO

In the 26th session of the International Labour Conference held at Philadelphia in April in 1944 during the Second
World War, the principles of ILO were affirmed as follows:
1. Labour is not a commodity.
2. Freedom of expression and of association is essential to sustained growth.
3. Poverty anywhere constitutes a danger to prosperity everywhere.
4. War against want requires to be carried out by joint efforts by government, management and workers
together on equal status and with democratic traditions.
The objectives of the ILO were redefined at the Philadelphia conference in 1944. This was termed as “Declaration
of Philadelphia. The following 10 objectives were enunciated at the above Philadelphia Conference:
1. Full employment and the raising of standards of living.
2. Employ workers on jobs for which they have adequate skill and satisfaction to work.
3. Provide training and development facilities to achieve the above objective.
4. Provide due share of profit as compensation to ensure a minimum level of living standard to all employed
and protection as and when needed.
5. Accept collective bargaining as a right of workers and a means of improving productivity between
employees and management.
6. Extend social security measures to provide a basic income to all in need and also medical cover.
7. Protect the life and health of workers in all occupations.
8. Provision for child welfare and maternity protection.
9. Provide adequate nutrition, housing and facilities for recreation and culture.
10. Provision for quality education and vocational opportunity.
Governance Structure of ILO

The organisational structure of ILO has 3 bodies(i) International Labour Conference (ILC), (ii) Governing Body
and (iii) International Labour Office (ILO).

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1. International Labour Conference (ILC)

This is the Apex body of ILO which makes labour policies for international labour. The ILC holds its sessions at a
frequency not less than once in a year. Each member state has 4 representatives at the conference: 2 government
delegates, 1 employer delegate and 1 worker delegate. All of them have individual voting rights, and all votes are
equal, regardless of the population of the delegate's member state. The employer and worker delegates are normally
chosen in agreement with the "most representative" national organizations of employers and workers.
The conference is empowered to appoint committees to deal with different matters relating to labour during each
session. Examples of such committees are the selection committee, The Credential Committee, The Resolution
Committee, The Drafting Committee, The Finance Committee, etc. All committees except Finance Committee are
tripartite in nature.
The functions performed by the ILC are to:

1. Formulate international labour standards.
2. Fix the amount of contribution to be paid by the member states.
3. Decide budget and submit the same to the Governing Body.
4. Study the labour problems submitted by the Director General and assist in their solutions.
5. Appoint committees to deal with different problems during its sessions.
6. Elect the president.
7. Select members of the Governing Body.
There have been 4 Indian Conference Presidents so far viz., Sir. Atul Chatterjee (1927), Shri Jagjivan Ram, Minister
for Labour (1950), Dr. Nagendra Singh, President,International Court of Justice (1970) and Shri RavindraVarma,
Minister of Labour and Parliamentary Affairs (1979)
2. Governing Body
It is a tripartite body, which is non-legislative in nature. It implements decisions of the ILC with the help of the
International Labour Organisation. It consists of 56 members in the same ratio of 2:1:1, i.e. 28 representatives of
the Government, 14 of the employers and 14 of the workers. Of the 28 representatives of the Government, 10 are
appointed by the members of the States of Chief Industrial Importance and remaining 18 are delegates of the other
governments.
Industrial population is the criteria for chief Industrial Importance. India is one of the 10 states of chief Industrial
Importance. Other 9 countries are Brazil, China, France, Germany, India, Italy, Japan, the Russian Federation, the
United Kingdom and the United States. The tenure of the office of this body is 3 years. It meets frequently in a year
to take decisions on the programmes of the ILO.
The functions of the Governing Body are to:

1. Co-ordinate work between the ILC and ILO.
2. Prepare agenda for each session of the ILC.
3. Appoint the Director General of the office.
4. Scrutinize the budget.
5. Follow up with member states in regard to implementation of the conventions and recommendations adopted by
the ILC.
6. Fix the date, duration, schedule and agenda for the Regional Conferences
7. Seek as and when required, advisory opinion from the International Court of Justice with the consent of the ILC.
Four Indians have so far been elected Chairman of the Governing Body. They are:
1. Sir Atul Chatterjee (1932-33),
2. Shri Shamal DhareeLall, Secretary, Ministry of Labour (1948-49),

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1. Industrial Relations- Approaches and Concepts ................................................................................. 5

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1. Industrial Relations- Approaches and Concepts

Actors in Industrial Relations

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Approaches to Industrial Relations

Sociological Approach or Industrial Sociology Approach

Human Relations Approach

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Natural Resource Concept

Human Relations Concept

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Level of Collecting Bargaining

Strikes and Lockouts

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Types of Strikes are:

Tripartite and Bipartite Bodies

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ILC and SLC

The ILC is also called as “Labour Parliament of India”.

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Pradhan Mantri Garib KalyanYojana (PMGKY)

Atmanirbhar Bharat Rojgar Yojana (ABRY)

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

PMJJBY and PMSBY

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Rajiv Gandhi Shramik Kalyan Yojana (RGSKY)

Atal Bimit Vyakti Kalyan Yojana (ABVKY)

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7. International Labour Organization

Philadelphia declaration of ILO

Governance Structure of ILO