The Concepts Behind Industrial Relations

Industrial relations imply the relation between both employer and

employees during the period of employment in an industrial organisation.
However, the concept of industrial relations has a broader meaning. In a
broader sense, the term industrial relations refers to the relation between
various unions, state and union, and between employers and government.
Relations of all those associated with the industry may be known as
industrial relations.
According to the International Labour Organisation (ILO), industrial relations
deals with relationships between either state and employers and workers
organisations or the relationship between the occupation organisation
themselves.

Industrial Relation Meaning

The term industrial relations comprises two words, i.e. ‘industry’
and ‘relations’. The term ‘industry’ refers to any productive activity
in the organisation in which the employees are engaged. On the
other hand, the term ‘relations’ refers to the relationship, which
exists within the industry between the management and the
employees. The relationship between management and
employees within the organisation within the organisational
settings is defined by industrial relations. Industrial relations
emerge directly or indirectly from management-trade union
relationships.

Characteristics of Industrial Relation

Following are the significant features of industrial relations:

 Industrial relations are the result of employment

relationships in industrial enterprises.

 Industrial relations introduced the concept and method of

balancing and cooperating.
  Industrial relations formulate rules and regulations to
maintain harmonious relations.

 The intervention of the Government to shape the industrial

relation is made through laws, agreements, rules, charters,
etc.

 Industrial relations incorporate both individual relations and

collective relations.

 Several parties play a role in industrial relations. The main

parties are employees and their organisation, employers and
their association, and government.
Objectives of Industrial Relation
Following are the different objectives of industrial relation.”

 To establish industrial peace.

 To safeguard the interests of both workers and management.

 To avoid industrial disputes.

 To raise the production capacity.

 To establish industrial democracy.

 To minimise the labour turnover rate and absenteeism.

 To safeguard the workers economic and social interests.

 To contribute to the economic development of the country

through productivity.

 To establish a full employment situation.

To minimise strikes, lockout, Heroes, etc., by providing good

working conditions and fair wages to the workers.
What is the Importance of Industrial Relations?
 Promotes Democracy: Industrial relations means employing
collective bargaining to resolve issues faced by workers. This
collective bargaining is generally employed through
cooperation and mutual agreement amongst all the affected
parties, i.e., democracy, management, and employees unions.
This enables an organisation to establish industrial
democracy, which eventually motivates the workers to
perform their best to the growth and prosperity of the
organisation.

 High Morale: Good industrial relations enhance the morale

of the employees and motivate the workers to work more
efficiently.

 Avoid Conflicts Between Management And Union:

Industrial relations minimise issues between unions and
management. This is because industrial relations incorporate
setting up machinery to resolve issues faced by management
and employees through mutual agreement to which both
these parties are bound. This results in ignoring any unfair
practices that could lead to major conflicts between
employers and trade unions.

 Minimises Wastage: Satisfactory Industrial relations are

maintained on the basis of co-operation and recognition of
each other in the department. It helps to minimise wastage of
material, manpower, and costs.

 Economic Growth And Development: Good and

harmonious industrial relations result in increased efficiency
and hence prosperity, which in turn minimise turnover and
other tangible benefits to the organisation. This promotes
economic growth and development.
Models of Industrial Relation
Dunlop’s model

1.Dunlop Model
Dunlop views IR system as a sub-system of society.
According to him, IR is regarded as comprised of
- three actors
- three contexts
- an ideology that binds the industrial-relations
system together and
- a body of rules created to govern the actors at the
workplace.
2. Oxford Model
 Notable exponent : Flanders, Clegg and Fox.
 The IR system is a study of “institutions of job
regulations”
 which is both, internal as well as external.
  Definition of Job Regulation : Sub-system of
complex rules ineach industry
 Internal is - code of work rules, wage structure,
internal procedure of joint consultation,
grievance handling, etc.
 External is - Trade union

As per the Oxford Approach,

r = f (b) OR r= f(c)
where,
r = the rules governing industrial relations
b = collective bargaining
c = conflict resolved through collective
bargaining
Key Points :
 Centrality of Power
 Social Responsibility, equity and fairness and Hence
Industrial democracy

3 Industrial Sociology Model

 As per the industrial sociologist G. Margerison
“the core of IR is the nature and development of the
conflict itself.”
 It focuses more on causes of generation of
conflict rather than resolution and causes of
industrial dispute rather than its consequences.
  Intra-plant level produces distributive, structural
and human relations conflict.
 Resolution of conflict: Collective bargaining,
structural analysis of socio-technical systems,
Man-management analysis.
 Extra-plant level conflict

4 Action Theory Method

 Focuses primarily on Collective Bargaining as
a mechanism for the resolution of conflicts.
 The actors relationship is termed as Coalition
relationship.
 The actors agree to co-operate in the resolution of
the conflict,their co-operation then takes the form
of collective bargaining
5 Human Relations Approach
 Contributions by social scientist, philosophers and
philanthropists : Robert Owen, F W Taylor, Elton Mayo etc
 Major Focus of the approach
 Social needs and security affect productivity and
moralethan the physical environment
 Informal groups within workplace exercise
strong socialcontrol
 Approach encourages small group to
keep considerable control over its environment
and help in process of smoothing labur
management relations
 2nd Question
INDUSTRIAL RELATION AND TECHNOLOGICAL
CHANGE
Industrial relations is an expression used not only for
relationship between employer and trade unions but also
involving government with the aim of defining policies,
facing labor problems.
Industrial relations include following concept
1) Rules for employment management
2) Rules and regulation.
3) Role of State Government bodies.
4) Harmonious relations and technology.

Industrial relations and technology

Organizations are greatly influenced by changes taking
place in internal as well as external
environment Technological change affects the Industrial
Relation. IR impact with information and communication
technologies, their traditional framework is deeply
changing.
In fact:-1.Horizontal and pervading all sector, more
& more reciprocally linked.
2.Dynamic, rapidly innovating.
3.Labor and capital saving and principally flexible
(Suitable for many purposes)
Meaning of technological changeTechnological change
(TC) is a term that is used to describe the overall process
of invention, innovation and diffusion of technology or
processes. The term is synonymous with technological
development, technological achievement, and
technological progress. In essence TC is the invention of a
technology (or a process), the continuous process of
improving a technology (in which it often becomes
cheaper) and its diffusion throughout industry or society.
In short, technological change is based on both better and
more technology.

Characteristics Of Technological Change

(a) Uncertain and predictable
First, the process is highly uncertain and unpredictable.
Firms planning research toward a well-defined technical
goal must plan without full knowledge regarding the
potential cost, time frame, and even the ultimate success.
Further, the history of technological development is rife
with small and large examples of serendipitous
discoveries, (e.g. Teflon) whose application is far beyond,
or different, than the ir intended use.
(b) Transferrable
A second defining characteristic of technological change
is the transferable, public-good nature of knowledge.
Once created, the value of technological knowledge
isdifficult to fully appropriate; some or all eventually
spills over to others, and indoing so the knowledge is not
depleted. This characteristic of knowledge has both
benefits and drawbacks. On the one hand, an important
discovery by a single individual, such as penicillin, can
be utilized worldwide. Knowledge of penicillinis a public
good and therefore one person’s use of this knowledge
does not preclude another person from using this same
knowledge unlike for capital orlabour, where use in one
task precludes use in an alternative task.
On the other hand, the understanding by potential
innovators that any new knowledge might eventually spill
over to others limits expected profits andtherefore
dampens private-sector innovative activity. Thus
intellectual propertyrights can serve both as a barrier and
an aid in technology change.
(c) Cumulativeness
A final, third feature of technological change is its
cumulativeness, which is also frequently related to
spillover effects.

Phases Of Technological Change

There are numerous paradigms used to separate the
process of technological change into distinct phases.
One approach is to consider technological change as
roughly a two-part process, which includes:
(1) The process of conceiving, creating, and developing
new technologies or enhancing existing technologies
 – the process of advancing the ‘technological frontier’.
(2) The process of diffusing or deploying these
technologies.
These two processes are inextricably tied. The set of
available technology defines what might be deployed,
and the use of technology affords learning that can guide
R&D programmes or directly improve technology
through learning-by-doing. The two processes are
also linked temporally.
So, combining the two part process we get a original
model of technological containing three phases-
Invention
The creation of something new, or a "breakthrough"
technology. For example, a personal computer.
Diffusion
The spread of a technology through a society or industry.

Elements of diffusion -
Emphasis has been on four key elements of the
technological change process
(1) an innovative technology
(2) communicated through certain channels
(3) to members of a social system
(4) who adopt it over a period of time.

Innovation
Rogers proposes that there are five main attributes of
innovative technologies which influence acceptance,
which he calls the ACCTO criteria. These are relative
Advantage, Compatibility, Complexity, Trialability,
and Observability.
Social system
The social system provides a medium through which and
boundaries within which,innovation is adopted. The
structure of the social system affects technologicalchange
in several ways. Social norms, opinion leaders, change
agents, governmentand the consequences of innovations
are all involved.
Time
Time enters into the acceptance process in several ways.
The time dimension relates to the innovativeness of an
individual or other adopter, which is the relative earlyness
or lateness with which an innovation is adopted.

Factors influencing industrial relation.

1. Institutional factors
2. Economic factors
3. Social factors.
4. Psychological factors
5. Political factors
6. Global factors
Factors influencing technological change.
1.Type of technology used.
2.Rate of technology change
3.Research and development
4.Status level in organisation
5.Government rules.
6.Culture
7.Market

Industrial Relation And Technological Change

An organisation’s Technology is the process by which
inputs from an organisation’s environment
are transformed into outputs. Technology includes
tools, machinery, equipment, work procedures,
and employee knowledge and skills. In the
present competitive world, technological breakthroughs
can dramatically influence and organ
isation’s service markets, suppliers, distributors,
competitors, customers, manufacturing processes,
marketing practices and competitive position.
Technological advances can open up new markets, result
in aproliferation of new and improved products, change
the relative cost position in an industry and render
existing products and services obsolete. Technological
advancements can create new competitive advantages that
are more powerful than existing ones. Recent
technological advances, as we all know, in computers,
lasers, robots, satellite networks, fibre optics, biometrics,
cloning and other related areas have paved the way for
significant operational improvements.
Role of IR in a virtual organization
:
A virtual organization is network of companies or
employees connected by computers. Virtual workers work
fromhome, hostel, their cars, or wherever their work takes
them.The IR plays a unique role in a virtual organization :
I Psychological fit
The lack of face-to-face interaction in virtual
organization,virtually compels IR professionals to
determine the psychological fit betweendifferent units
initially.
ii. System alignment
:Given the lack of physical proximity, it becomes
even more critical that the organization’s mission, vision
and measures be aligned and that all parties are familiar
with these issues, the IR function can play an important
role in this task.
iii. Reconsider rewards:
In a virtual unit. Very few permanent exit. In many
cases, the organization will be staffed with workers
having different motivational forces. So rewarding each
entity in an effective way becomes an important job.
iv. Reconsider staffing needs
In a virtual organization, most employees work ona
contractual basis. Finding people with requisite
skills, knowledge and motivationlevels becomes an
important activity.
v. Build partnerships :
Virtual, teams have to be built from scratch paying
attention to their unique requirements. The concept
of employment needs to be replaced by the concept of
‘partnership’ especially when most tend to
work independently away from the permanent employees
or owners of the organization.
vi. Develop leaders = Leaders become the major forces
for building trust, creatinga mission and instilling a sense
of belonging to the organisation IR can play amajor role
in ensuring that leaders assume these responsibilities and
meet them inan effective away.

3rd Question
Meaning and Definition of Trade Union:
A trade union is an association of workers formed with the object
of improving the conditions of workers. It is formed for protecting
the interests of workers. Workers have little bargaining capacity
when they are unorganized. In fact, trade union movement began
against the exploitation of workers by certain managements under
the capitalist system.

Definition = Trade union may be defined as “a continuous

association of wage earners for the purposes of maintaining or
improving the conditions of their working lives.”
Objectives of Trade Union:
(1) To improve the economic lot of workers by securing them
better wages.
(2) To secure for workers better working conditions.

(3) To secure bonus for the workers from the profits of the
enterprise/organization.

(4) To ensure stable employment for workers and resist the

schemes of management which reduce employment
opportunities.

(5) To provide legal assistance to workers in connection with

disputes regarding work and payment of wages.

(6) To protect the jobs of labour against retrenchment and layoff

etc.

(7) To ensure that workers get as per rules provident fund,

pension and other benefits.

(8) To secure for the workers better safety and health welfare
schemes.

(9) To secure workers participation in management.

Functions of Trade Unions:

(1) Collective bargaining with the management for securing better
work environment for the workers/ employees.
(2) Providing security to the workers and keeping check over the
hiring and firing of workers.

(3) Helping the management in redressal of grievances of workers

at appropriate level.

(4) If any dispute/matter remains unsettled referring the matter

for arbitration.

(5) To negotiate with management certain matters like hours of

work, fringe benefits, wages and medical facilities and other
welfare schemes.

(6) To develop cooperation with employers.

(7) To arouse public opinion in favour of labour/workers.

What is the role of Trade Unions?

Employee unions play an important role in an organisation by
doing the following -
 through aiding in the hiring and choosing of employees.
 through encouraging workplace discipline, allowing for
the amicable resolution of labour conflicts, and assisting
with societal adaptations. The new working environment
and the new norms and procedures must be adopted by
the workforce. Diverse backgrounds in the workforce may
cause disarray, discontentment, and frustration. Unions
assist them in making such adjustments.
  lowering the incidence of labour disputes and instilling in
workers a feeling of corporate social responsibility will
promote and maintain national cohesion.
 establishing industrial harmony
4TH QUS

Meaning of Industrial Dispute

In accordance with Section 2(k) of the Industrial Disputes Act, 1947, an
“industrial dispute” arises when there is a disagreement or discord
between employers and employers, between employers and workers
or between workmen and workmen, which pertains to an individual’s
employment status, the absence of employment, terms of
employment or the conditions under which the employee works.

The parties involved in an industrial dispute may include:

 Employers and employees.

 Employers and other employers.
 Workers and other workers.
It’s essential to note that for an issue to qualify as an industrial
dispute, it must go beyond a mere difference of opinion; there must
be a substantive point of contention. Additionally, this dispute needs
to be officially endorsed in writing by a union at the outset of the
conflict. Subsequent endorsements will not retroactively validate the
reference.

Consequently, the date on which the dispute was initially raised holds
significant importance. The dispute may pertain to any specific worker
or worker or extend to any other individual in whom they have a
shared interest as a group.
A noteworthy legal precedent, as established in the case of Jadhav J.
H. v. M/s. Forbes Gokak Ltd (2005), is that even if a dispute involves
a single worker, it can be classified as an industrial dispute as long as
the dispute receives support from a union or a group of workers,
regardless of whether the supporting union represents the majority of
the union membership.

Causes of Industrial Dispute

Industrial disputes typically arise from the rights of workers to
engage in collective bargaining. To qualify as an industrial
dispute, it’s essential for workers or employees to make a demand
related to their employment or non-employment, which is
subsequently refused by the entity to whom the demand is
addressed, leading to a disagreement between the parties
involved.

In the case of Sindhu Resettlement Corporation Ltd. v.

Industrial Tribunal (1967), the Supreme Court clarified that
when workmen do not have any existing conflict with the
management, any requests they make to the government are
considered mere demands. A request made to the government
without a prior dispute with management cannot be deemed a
labour dispute.

The term “industrial dispute” has been comprehensively defined in

the case of Workmen employed by Hindustan Lever Ltd v.
Workmen of Hindustan Lever Ltd. (1984). According to
this labour law case, any disagreement or conflict that may arise
between an employer and its workers falls under this definition.
Consequently, the nature of the conflict does not preclude it from
being classified as an industrial dispute.
Objectives of the Industrial Disputes Act, 1947
The act was drafted to make provision for the investigation and
settlement of industrial disputes and to secure industrial peace and
harmony by providing mechanism and procedure for the investigation
and settlement of industrial disputes by conciliation, arbitration and
adjudication which is provided under the statute.
This Act was passed was with a key objective of “Maintenance of
Peaceful work culture in the Industry in India” which are mentioned
under the Statement of Objects & Reasons of the statute.
The Act also lays down:

1. The provision for payment of compensation to the workman on

account of closure or lay off or retrenchment.
2. The procedure for prior permission of appropriate Government for
laying off or retrenching the workers or closing down industrial
establishments
3. The actions to be taken against unfair labour practices on part of an
employer or a trade union or workers.

Machinery for settlement of industrial

disputes
The Industrial Disputes Act of 1947 establishes a complex
and effective mechanism for the peaceful and amicable
resolution of industrial disputes. They are as follows:

 Conciliation
 Arbitration
 Adjudication
Conciliation method

Conciliation is a form of conversation or negotiation in

which disputing parties voluntarily find an agreeable
conclusion acceptable to both sides. The parties’
conversations and negotiations may be begun by the
parties themselves or by the efforts of a third party
impartial to the issue. This third impartial person works
as a conciliator, mediating and promoting the resolution
of the issue.

Conciliation is distinguished by the fact that the parties to

the disagreement reach an agreement willingly, without
any force or compulsion from the conciliator or anybody
else. Conciliation is useful as a technique for resolving
industrial disputes since it preserves amity and good ties
between the employer and the workers because it is an
out-of-court settlement of the problem.

Reconciliation authorities

The authorities for conciliation under the Industrial

Disputes Act are listed below.

1. Works Committees (Section 3)

2. Conciliation officers (Section 4)
3. Board of conciliation (Section 5)

Works committee
The Works Committee was the first group to negotiate
and resolve industrial disputes through conciliation.
According to Section 3(1), the Works Committee is
formed by the employer who employs or has employed
one hundred or more workers on any day in the previous
twelve months. Workmen’s representatives are chosen
from among the workers in cooperation with their Trade
Union if one exists. As a result, there are equal numbers
of members from the employer and the workforce on the
Works Committee.

Conciliation officer
Conciliation is an attempt by a third party to help
competing opponents find a resolution to a dispute by
employing various types of mediation, recommendations,
or guidance. This is especially true when the competitive
foes are an employer and an employee. Conciliation is
derived from the term “to reconcile,” which implies
resolving or settling by bringing together. It is the
process of seeking official mediation and attempting to
resolve a conflict.

According to Section 11(6) of the Act, a conciliation

officer is considered a public servant under the meaning
of Section 21 of the Indian Penal Code, 1860.

The Board of conciliation

Under Section 5 of the Act, the appropriate Government
establishes the Board of Conciliation by the notification in
the official Gazette to facilitate the resolution of an
industrial dispute whenever the opportunity or occasion
arises. The Board is made up of a Chairman and two or
four additional members chosen by the appropriate
government. The Chairman is an independent person,
while the other members are individuals nominated in
equal numbers to represent the disputing parties. Each
individual nominated to represent a party is appointed at
the party’s recommendation.

Arbitration method

Arbitration is a procedure in which the parties to a

disagreement agree to send the matter voluntarily to a
third impartial person known as an Arbitrator for
resolution. After hearing both parties to the
disagreement, the Arbitrator issues a binding award
determining the rights and responsibilities of the parties
to the dispute. Arbitration is an out-of-court technique of
resolving disputes and is a low-cost and quick method of
resolving disputes. It is used to resolve industrial
disputes under Section 10A of the Industrial Disputes Act
of 1947.

Arbitration Authorities

The authorities for arbitration under the Industrial

Disputes Act of 1947 are as follows:

 Arbitrator
 The umpire

Arbitrator
The Arbitrator is the person named as such in the
arbitration agreement between the employer and the
workers under Section 10A of the Act. The presiding
officer of the Labour Court, Tribunal, or National Tribunal
may be nominated as an Arbitrator under this Act. The
term “arbitrator” includes an “umpire,” according
to Section 2(aa) of the Industrial Disputes Act of 1947.

The umpire
According to Subsection 10(1-A) of Section 10A, if an
arbitration agreement allows for the referral of industrial
disputes to an even number of arbitrators, the agreement
must also provide for the appointment of another person
as an umpire. If the arbitrators are evenly divided in their
opinions then this umpire has the authority to hear
industrial disputes.

Section 10A(1), states that the award made by the

umpire in an industrial dispute is assumed to constitute
the arbitration award for the Industrial Disputes Act of
1947.

Adjudication method
The adjudication of an industrial dispute is a mandatory
procedure for resolving the issue. After hearing both
parties and examining the merits of the disagreement
and information on record, the adjudicatory authority
assesses the rights and responsibilities of the parties to
the dispute and makes its award. If the aggrieved party
who is dissatisfied with the verdict does not appeal to the
appellate authority, the adjudicatory authority’s award is
final and binding on the parties.
According to Section 10 of the Industrial Disputes Act of
1947, when a disagreement or dispute is reported to
adjudicatory authority by the appropriate Government, it
can be resolved by adjudication. Even if the parties to the
dispute have not requested a referral to the adjudicatory
authority from the relevant Government, the appropriate
Government can do so at its discretion.

Adjudication authorities

The authorities for adjudication under the Industrial

Disputes Act of 1947 are as follows:

 Labour Court
 Industrial Tribunal
 National Tribunal

Labour courts
The appropriate Government has been empowered to
form the ‘Labor Court‘ by the notification in the Official
Gazette under Section 7 of the Act. A Labor Court is one
of the adjudication agencies established by the I.D.Act. It
consists of only one person who is to be selected by the
appropriate government to function as the presiding
officer if he meets the requirements outlined in the Act.
This officer will be the sole member of the Labour Court.

Industrial tribunal
The appropriate government may, by publication in the
Official Gazette, establish one or more tribunals for the
adjudication of industrial disputes concerning any topic
stated in the Second or Third schedules. A Tribunal
should be composed of only one person, the presiding
officer, who is chosen by the appropriate Government
under Section 7A(2) of the Act. A person selected as the
presiding officer of a Tribunal must meet the following
qualifications:

National tribunal
The Central Government may, by the notification in the
Official Gazette, establish one or more National Tribunals
for the adjudication of industrial disputes under Section
7B of the Industrial Disputes Act, 1947. The National
Tribunal was created to handle industrial disputes that in
the eyes of the Central Government, involved issues of
national significance or were of a character that would
likely interest or influence industrial establishments
located in many States.

The National Tribunal is made up of only one person, the

Presiding Officer, who is nominated by the Central
Government. A National Tribunal’s responsibilities are the
same as those of a Labor Court or an Industrial Tribunal.

GROUP = 2

Collective Bargaining: Definition, Features

and Importance
Definition of Collective Bargaining:
Industrial disputes between the employee and employer can also be
settled by discussion and negotiation between these two parties in
order to arrive at a decision.

This is also commonly known as collective bargaining as both the

parties eventually agree to follow a decision that they arrive at after
a lot of negotiation and discussion.

According to Beach, “Collective Bargaining is concerned with the

relations between unions reporting employees and employers (or
their representatives).

Main Features of Collective Bargaining:

1. It is a Group Action:

Collective bargaining is a group action as opposed to individual

action. Both the parties of settlement are represented by their
groups. Employer is represented by its delegates and, on the other
side; employees are represented by their trade union.

2. It is a Continuous Process:

Collective bargaining is a continuous process and does not end with

one agreement. It provides a mechanism for continuing and
organised relationship between management and trade union. It is a
process that goes on for 365 days of the year.

3. It is a Bipartite Process:

Collective bargaining is a two party process. Both the parties—

employers and employees— collectively take some action. There is
no intervention of any third party. It is mutual given-and-take
rather than take-it-or-leave-it method of arriving at the settlement
of a dispute.

4. It is a Process:
Collective bargaining is a process in the sense that it consists of a
number of steps. The starting point is the presentation of charter of
demands by the workers and the last step is the reaching of an
agreement, or a contract which would serve as the basic law
governing labour-management relations over a period of time in an
enterprise.

5. It is Flexible and Mobile and not Fixed or Static:

It has fluidity. There is no hard and fast rule for reaching an

agreement. There is ample scope for compromise. A spirit of give-
and-take works unless final agreement acceptable to both the
parties is reached.

6. It is Industrial Democracy at Work:

Collective bargaining is based on the principle of industrial

democracy where the labour union represents the workers in
negotiations with the employer or employers. Industrial democracy
is the government of labour with the consent of the governed—the
workers. The principle of arbitrary unilateralism has given way to
that of self-government in industry.

7. It is Dynamic:

It is relatively a new concept, and is growing, expanding and

changing. In the past, it used to be emotional, turbulent and
sentimental, but now it is scientific, factual and systematic.

8. It is a Complementary and not a Competitive Process:

Collective bargaining is not a competitive process i.e., labour and

management do not coopt while negotiating for the same object. It
is essentially a complementary process i.e., each party needs
something which the other party has, namely, labour can put
greater productive effort and management has the capacity to pay
for that effort and to organise and guide it for achieving the
enterprise’s objectives.
9. It is an Art:

Collective bargaining is an art, an advanced form of human

relations.

Importance of Collective Bargaining:

The collective bargaining advances the mutual understanding
between the two parties i.e., employees and employers.

(1) From Management Point of View:

The main object of the organisation is to get the work done by the
employees at work at minimum cost and thus earn a high rate of
profits. Maximum utilization of workers is a must for the effective
management. For this purpose co-operation is required from the
side of the employees and collective bargaining is a device to get
and promote co-operation. The labour disputes are mostly
attributable to certain direct or indirect causes and based on
rumors, and misconceptions. Collective bargaining is the best
remedial measure for maintaining the cordial relations.

(2) From Labour and Trade Union Point of View:

Labour has poor bargaining power. Individually a worker has no

existence because labour is perishable and therefore, the employers
succeed in exploiting the labourers.

The working class in united form becomes a power to protect its

interests against the exploitation of the employers through the
process of collective bargaining.

The collective bargaining imposes certain restrictions upon the

employer. Unilateral action is prevented. All employees are treated
on equal footings.

(3) From Government Point of View:

Government is also concerned with the process of collective
bargaining. Government passes and implements several labour
legislations and desires it to be implemented in their true sense. If
any person violates the rules and laws, it enforces them by force.

Collective bargaining prevents the Government from using the force

because an amicable agreement can be reached between employer
and employees for implementing the legislative provisions. Labour
problems shall be minimised through collective bargaining and
industrial peace shall be promoted in the country without any force.

Collective bargaining is a peaceful settlement of any dispute

between worker and employers and therefore it promotes industrial
peace and higher productivity resulting an increase in the Gross
National Product or the national income of the country.

Process of Collective Bargaining

1. Preparation: At the very first step, both the representatives of each
party prepares the negotiations to be carried out during the meeting.
Each member should be well versed with the issues to be raised at
the meeting and should have adequate knowledge of the labor laws.
The management should be well prepared with the proposals of
change required in the employment terms and be ready with the
statistical figures to justify its stand.

On the other hand, the union must gather adequate information

regarding the financial position of the business along with its ability to
pay and prepare a detailed report on the issues and the desires of the
workers.

2. Discuss: Here, both the parties decide the ground rules that will
guide the negotiations and the prime negotiator is from the
management team who will lead the discussion. Also, the issues for
which the meeting is held, are identified at this stage.
The issues could be related to the wages, supplementary economic
benefits (pension plans, health insurance, paid holidays,
 etc.), Institutional issues(rights and duties, ESOP
plan), Administrative issues (health and safety, technological
changes, job security, working conditions).

3. Propose: At this stage, the chief negotiator begins the conversation

with an opening statement and then both the parties put forth their
initial demands. This session can be called as a brainstorming, where
each party gives their opinion that leads to arguments and counter
arguments.
4. Bargain: The negotiation begins at this stage, where each party tries
to win over the other. The negotiation can go for days until a final
agreement is reached. Sometimes, both the parties reach an
amicable solution soon, but at times to settle down the dispute the
third party intervenes into the negotiation in the form of arbitration or
adjudication.
5. Settlement: This is the final stage of the collective bargaining
process, where both the parties agree on a common solution to the
problem discussed so far. Hence, a mutual agreement is formed
between the employee and the employer which is to be signed by
each party to give the decision a universal acceptance.

The Worker’s Participation in Management (WPM) is a mechanism aiming to

create a harmonious industrial environment by increased worker participation in the
decision-making process of an enterprise. The scope and degree of worker’s
participation depends on three constituents of industrial relations system employees
employers and Government. Some of the prequisites for successful implantation of
WPM scheme are:

There are three major schemes of worker participation in India.

Works Committees:
The works committees have equal number of representatives from employer and
employee group. However, there are no bindings on the members of the committees.
The committee work on matters of common interest between employees and
employers. These aim to maintain peaceful and healthy relationships between
employees and employers.

Joint Management Councils (JMC):

Joint Management Councils are entrusted with administrative responsibilities and
have wider scope than work committee. The primary objective of JMC is to promote
healthy relations between management and workers by building trust and
understanding between management and workers. These committees have
responsibility for safety, vocational training and welfare of workers.

The committee can be consulted by management on certain specified matters. The

council also considers subjects under collective bargaining, such as wages, bonus and
allowances have been excluded from the scope of JMC. The management is expected
to share information with members of council on certain matter.

Shop Councils:
A shop council is set-up only in enterprises employing 500 or more employees. It has
an equal number of employee and employer representatives. Whereas the employer
representatives are nominated by management, the worker representatives belong to
shop or concerned department. A council formed will function for a period of 2 years,
and must meet at least once in a month. The council arrives at a decision by consensus
and not by voting.

Joint Councils:
A Joint Council is set-up for tenure of two years. The Council is chaired by the chief
executive and members of the council must meet once in every four months. The
Secretary of the Council is responsible for the functions. The decisions of the Council
are taken by consensus and implemented in one month duration.

The main functions of Joint Council is to determine productivity norms, settle matters
which are unresolved by the Shop Council Body and ensure maximum production
using optimal utilization of resources. The Council also works to ensure general
health and safety of industry workers.

levels of workers participation in management

workers participation may exist in all levels of management, however it may vary
from management to management. Participation of workers in management is
more likely at lower level and less involvement at top level of management.
Broadly speaking there are following file levels of participation of workers in
management.

1. Information participation of workers:

It ensures that employees are able to receive information and express their views
pertaining to the matters of general economic importance.

2. Consultative participation of workers:

Under this kind of workers participation in management, May act as a consultant in
the matters of workers safety, health and their welfare at workplace. Even so,
ultimate decision lie in the hands of management, only employees views are
considered as advise.

3. Associative participation of workers:

This kind of workers participation in management is next level to consultative
participation. under associative participation of workers in management, morally
bound to accept and implement the opinion of employees.

4. Administrative participation of workers:

Under this kind of participation of workers in management, workers the part in
discharge of managerial functions. Here employees take part in decisions, which
were already taken by the management, thereupon employees have to select the
best from those decisions for the purpose of implementation.

5. Decisive participation of workers:

Decisive participation is the highest level of workers participation in management,
where employees and management together taking decisions on the matters related
to workers welfare and production related issues.

ILO: International Labour Organization

The International Labor Organization (ILO) is devoted to promoting
social justice and internationally recognized human and labour
rights, pursuing its founding mission that labour peace is essential to
prosperity. Today, the ILO helps advance the creation of decent
work and the economic and working conditions that give working
people and business people a stake in lasting peace, prosperity and
progress.

The ILO was created in 1919, as part of the Treaty of Versailles that
ended World War I, to reflect the belief that universal and lasting
peace can be accomplished only if it’s based on social justice. In
1946, the ILO became a specialized agency of the United
Nations.Its unique tripartite structure gives an equal voice to
workers, employers and governments providing a unique platform
for promoting decent work for all women and men.

The ILO has four strategic objectives

– Promote and realize standards and fundamental principles and

rights at work
– Create greater opportunities for women and men to decent
employment and income
– Enhance the coverage and effectiveness of social protection for
all, and
– Strengthen tripartism and social dialogue

In support of its goals, the ILO offers expertise and knowledge

about the world of work, acquired over more than 90 years of
responding to the needs of people everywhere for decent work,
livelihoods and dignity. It serves its tripartite constituents -and
society as a whole- in a variety of ways, including:

– Formulation of international policies and programmes to promote

basic human rights, improve working and living conditions, and
enhance employment opportunities
– Creation of international labour standards backed by a unique
system to supervise their application
– An extensive programme of international technical cooperation
formulated and implemented in an active partnership with
constituents, to help countries put these policies into practice in an
effective manner