Professional Documents
Culture Documents
Industrial Relations
Industrial Relations
Industrial relations.................................................................................................................................2
Trade Union...........................................................................................................................................4
Factories act,1948.................................................................................................................................4
Theories of wages..................................................................................................................................7
Minimum wages act, 1948....................................................................................................................7
Payment of wages act, 1936..................................................................................................................8
Maternity Benefit Act, 1961:.................................................................................................................9
Industrial health and safety.................................................................................................................10
Industrial relations
Definition:
1. Dale yodder: relationship b/w mgmt. and employees that characterixe or grow out of
employment.
2. Int Inst of LS: Social relations of production
3. ILO: relation b/w state and employers’ organization and workers’ or b/w occupational
organisations themselves
Participants:
Worker and trade union
Management
Government
5 year plans
2nd : socialistic pattern, industrial democracy
5th : food nutrition, health
6th : ESIC, EPFO &Pension scheme extension
New economic policy
Eighth: safety , social security
9th : skill formation
10th : employment generation
11th : sill dev policy. 2008
12th :
2nd nat’l commission 1999, : 1st : gadendra gatkar 1969
Ravindra varma, ABV
Setting up of works committee
Approaches to Industrial relations:
Systems :
John Dunlop 1958 influenced by Talcott parsons
Every human to different continuous systems which frame actions and behaviours.
3 variables: actors, context (Market, Technology and Power dis of union)and ideology
R=f{A,T,M,P,I}
Unitary:
Conflicts are non permanent malformations
Pluralist:
Organization has individuals with own distinct aim, objectives, leadership etc
Multistructured organization with continued tension
Competing interests, mgmt. to ediate
TU are legitimate representative of employees (desireable and necessary)
Marxist:
Activities governed by objective of profit
Conflict (class) required for social change
TU as weapon for revolutionary social change
Sociological:
Social and cultural changes shape behavior patterns
Margerison , 2 levels ntra plant and outside the firm
Rejects system and oxford model (rule making through collective bargaining)
Gandhian:
Strike on condition of . specific grievance, non-violence and non torment of strikers
Last option
Ahemdabad textile
Every assocaiaiton a JV and labour treated as coowner Trusteeship
Solve through interaction, arbitration and bilateral negotiations
Psychological:
Mindset of actors
Mason Harie conducted a test ‘thematic application test ’ for 2 workgroups
Noted difference in belief, lack of trust, think other lack emotional attributes, thus negative
image
Human relations:
Elton Mayo, propagated by Roethlisberger, whitehead, whyte and roman.
The organization & society coprise of human beings who vary in aspect of their behavior,
mindset , personality but come together to achieve common organizational goals
Trade Union
Defined in 2(h) TU act and 2(zl) IR code :Temporary or permanent, voluntary and continuous,
purpose of regulating the relations b/w w &w, e &e and w&e and imposing restrictive condition
on conduct of any trade, business and includes federation of 2 or more union
History:
3 phases RP Dutt:
Mercantilst , Industrial capital and Finance capital
Post independence
History:
Factories on ports
1860, Diabandhu Mitra , plantation workers against cultivators Indigo commission was
appointed.
1870 Sasipada bananerjee, working club and a newspaper Bharat Shramjeevi
1875, Sorabji Shapoorji protest 1881 act
1877 empress mill strike
1880: NM lokahnde : Bombay Mill and millhands association 1890
G I Peninsular railway protest
Swadeshi: After tilak’s arrest
Madras labour union: BP Wadia, 1918
Soviet union, comintern and ILO
AITUC: 1920 Lala lajpat rai
TU Act, 1926
Cawnpore conspiracy case, 1924
TU disputes act, 1928
Act:
Marx
Weber
Hoxie: group psychology
Tannerbaum: movement against dominance of machine
Seling Perlman: Scarcity consciousness theory:
Slither: individual bargaining unsatisfactory
Kerr, Dunlop, harbison, Myers: protest theory – protest inherent in industrial
Gandhi: Sarvodaya
Lighting
Women 6 am to 7 pm
employment Govt may 10 pm to 5 am
Employment of Not until 14th year
children
Adolescent Certificate of fitness, as child if 14 , as adult if 15
Valid for 12 months renewed every 12 months
Working hours for 4.5 hrs, 2 shifts
children Female only 8 am and 7 pm
Annual wages and Worked 240 days in PY, can get leave for
leave (s VIII) Adult- 1 day for every 20 days worked
Child -15
240 days – layoff by agreement, maternity leave of 12 weeks, leave in
the prior year.
Can carry forward- A 30, c- 40, leave refused carry forward
w/o any limit
15 days notice, 3o days in case of public utility service.
Wages – daily average of the month (DA and advantage
included but bonus overtime no)
Leave enchashment in case of termination, quitting etc – 2nd
working day
In case of death or superannuation , within 2 months
Penalty 2years or fine 1,00,000 or both, continued 1000 per day
Accident – death - 25000, or serious bodily injury- 5000
Enhanced penalty- repaeated offence- 3 years and fine 10,000 to
2,00,000, resons for firn less than 10,000
Willful obstruction- 6 months or 10000 or both
Hazarduous process- 7 years, 2 lakh continues 5000/ day,
continues beyond a year imprisonment 10 years
Workers- fine 500
False fitness certificate- 2 months or 1000
Child – guardian 1000 unless w.o connivance of parents
Occupier to send notice 15 days from occupyinh and 7 days from new management (S7)
Duties (s7A): Health, safety and welfare
Inspector: Appointment s8 (SG) and powers (S9)
Certified surgeons (s 10):
No double employment
Register of adult workers to be maintained
Theories of wages
Money
Real
1. Subsistence theory: David ricardo (depends on subsitence level,) ignores role of demand and trade
union
2. Wage fund theory: J S Mill, Depends upon the wage fund set up and no. of workers seeking
employment, reducing no of workers raise wages, only applicable to underdevd countries with capital
deficiency.
3. Purchasing power parity theory: Business cycle and wages, spending etc
Pigou – a cut in wages would ensure full employment
4. Residual claimant theory: walker, wages are residue after other factors have been paid
5. Marginal productivity theory: J. B. Clark, Marshall, Jevons (PC and perfectly mobile labour
assumption)
6. Bargaining theory of wages: John Davidson (negotiations
7. Efficiency theory: Alfred marshall
8. Demand and supply theory
Wage board : A CP, 2 Employee and worker rep each ,2 independent to rep economist and consumer. Apt
govt w consultation with CJ HC OR SC
Minimum wages act, 1948 (ILO res 138) (15.03.1948)
Definitions:
2 d : cost of living index:
2(e) : Employer: person who employes directly or indirectly for himself or on behalf in any scheduled
employment except s 26(3)
2 (h): Wages: remuneration capable of being expressed in terms of money, which in terms of
contract of employment express or implied be payable includes HRA but not
House accommodation, light,water
Other amnety or service
Contributionof employer to Pension fund
TA
To defray special expenses
Gratuity payable on discharge
2(i) employee: employed for hire and award to work skilled, unskilled, manual , clerical in
scheduled employment, outworker but not his own premises + govt declared not armed forces
Scheduled employment: Part 1 and part 2 (agriculture related)- no need if state has less than
1000 people employed in such
Minimum wage may be fixed by the hour, day, month or other larger period prescribed as
prescribed in s 4 of the payment of wages act, 1936
Review in 5 years
No minimum wage fixing in pendency of proceedings
Procedure for minimum wage;
Set up committee
Noificaioin 2 months time , also consult advisory board
Come into force on expiry of 3 months from date of issue
Advisory board (s7):, central advisory board and commite composiiion- employee and employer
equal number not exceeding 1/3rd
Wages for someone working lesshan normal working day: full day
Employer not able to provide work or other prescribed circumstances
Nearest market prices to be considered for cash value of kind wages and essential commodities
provided a concessional rae.
Payment in
Below 1000 employee – 7th day
Above – 10th
Deductions: anything paid to the employer, prior approval of inspector or consent of worker,
cannot exceed: excess from succeeding wage period
75% for payment to consumer cooperatives
50% in any other case
Fines for damages or loss
Weekly day of rest- generally Sunday but maybe other
Claims: Government may appoint appropriate authority labour commissions, workmen
compensation comm, officer not b/l LC, to hear
Within 6 months, may extend
Direct to pay compensation + wage not exceeding 10 times
May hear ex parte if fails to appear (employer), applicant fails dismissed
Set aside if sufficient cause within 1 month
50 r penalty for vexatious application
Registers to be maintained: fines, deductions, annual return, muster roll, wage register, wage
slip (A day prior to wage disbursement), preserved upto 3 years from last entry made therin.
Filing annual return by 1st of February
Minimum rate in form IX A published in English and lang understood by workers
Minimum wage cannot be contracted out
Punishment- 6 months or 500 or both, in general cases no penalty if 500 rs
Complaint within 1 month or 6 months in case of 22A
Powers of appropriate govt:
May direct not applicable to disabled or (s 26)
Add any employment in the schedule (s27)
Power to make rules (s 29,30)
See minimum wages bare act,
Applicability S 1(3)
a)schedule 1 +20 (CG may add to it s 4)
b) 20 or more govt classifies (2 month notice)
4) any other circumstance cpfc and employer and majority employee agree
Continues to apply once applies even falls below 20
Non – applicability S 16(1):
Cooperative society or any other law below 50 workers
CG or SG when employees entitled to benefit of Contributory PF or old age
pension scheme
Or any other such as per govt rules entitled to CPF or Pension old age
Employee PF S 5, fund vest in central board u/s 5A, which provides for all or any matter
Schemes prescribed under Schedule II
Central Board (5A) Composition
CP,VCP,CPFC, 5 CG appointed, 15 rep of SG , 10 employer rep, 10 employee
rep,
Administer funds under 6A and 6C.
Annual report of work to CG
Executive committee to assist, 5AA
State Board (5B) After consultation w SG a state board of trustees, body corporate
Appointment of UPSC
officers (s 5D)
Contribution S 6 10 % (BW+DA+RA) by employer and employee equal, employee may more but
employer not liable
In some cases, 12 %
Pension Fund s 6A For the purpose of providing:
a) Superannuation, retirement, permanent total disablement
b) Beneficiary (Widow/er, children, orphan)
Paid by employer – 8.133 till 58 years
administered by central board for schemes under schedule III
Employees Deposit EDLIS from 01.09.76 except tea factories in assam
linked Insurance Wage ceiling limit – 15000/month
scheme: 6C Above it pay, contri only till 15000+ DA+RA+ Cash value of food concession
Insurance benefit b/w 2.5 L to 6 L
Life insurance benefit to employer
1% by employer, shall 1/4th of this contri extra, CG determining cost of the
administration of insurance.
Central board of all matters under schedule IV