Industrial Relations And Labour Legislations

Unit I Industrial Relations

Concept, scope- objectives- Importance - Approaches to IR- Industrial

relations system in India. Trade Unions Act,1926- trade union movement in
India- objective -role - functions-procedure for registration of trade unions-
Rights and responsibilities- problems- Employee relations in IT sector.

Unit II Industrial Conflicts And Labour Welfare

The Industrial Disputes Act, 1947-Disputes – Impact – Causes – Strikes –

Prevention – Industrial Peace – Government Machinery – Conciliation –
Arbitration – Adjudication. Labour welfare- statutory-Voluntarywelfare
funds-welfare of unorganized labour

Unit III Labour Legislations-I

Origin and growth of labour legislation in India- Principles of labour

legislations-Factories Act 1948-Minimum Wages Act, 1948- Payment of
Wages Act, 1936- Payment of Bonus Act, 1965-

Unit IV Labour Legislations-II

The Industrial employment (standing orders) Act, 1946- The Apprentices

act, 1961-The Equal Remuneration act, 1976- Payment of Gratuity act
1972- Employee compensation act in 2013

Unit V Labour Legislations-III

Employees’ Provident fund and Miscellaneous provisions act, 1952-

Employees’ state insurance (ESI) Act, 1948- Maternity Benefit Act, 1961-
Contract Labour Regulations and Abolition Act, 1970 -The Child Labour
Prevention and Regulation Act, 1986.
 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.

Nature of Industrial Relation

 Industrial relations are concerned with the relationship between

management and workers.
 Industrial relations safeguards the interest of employees.
 Industrial relations are concerned with the system, rules, and
procedures used by unions and employees to determine the reward for
effort and other conditions of employment, safeguard the interests of
the employees and their employer and regulate how employers treat
their employees.
  Industrial relations maintain a balance with employee expectations,
employer associations, trade unions, and other social and economic
institutions of societies.
 Industrial relations help in resolving disputes, conflicts, and
controversies between labour and management.

Scope of Industrial Relation

Industrial Relations is a wide-reaching term. Different scholars have

expressed their different views on the scope of industrial relations.

According to Dale Yoder, “Industrial relations incorporate policies related

to recruitment, selection, training of workers, personnel management, and
collective bargaining.”

According to the International Labour Organisation (ILO), industrial

relations incorporate the relations between state and employers and relations
between trade unions and employers associations.

According to Richard A Lester, the scope of industrial relations is no longer

limited only to trade unions and industrial management, rather it includes
all aspects of labour such as wages, productivity, social security,
management, and employee policies. Trade Union policies also form part of
it.

In a modern organisation, the industrial relations functions are performed by

the Industrial Relations Department. This function is performed under the
supervision of the Director of the Industrial Relations department. In the
performance of this function, support is rendered by different managers and
subordinates.
Different important functions performed by workers of the industrial relation
department includes:

 Management of policies and programs of industrial relations.

 Public Relation
 Labour Relation
 Recruitment, Selection, and Placement of labourers.
 To provide medical and health-related services.
 To maintain employment records of the employees.
 Provision of recruitment test, ability test, skill test, and intelligence
test.
 Provision of training and education program

The approaches of Industrial Relations help in understanding the nature

which ensures cordial relationships between workers and employers and also
provides a proper mechanism to manage industrial disputes and conflicts.

Industrial relation is an integral part of human resource management that

studies the formal relationship of the workers with the administration and
the employers in an industrial setup.

The concept of industrial relations is perceived differently by different

scholars and experts and every scholar has given their own views in the
context of industrial relations. These views formulate different approaches to
industrial relations.

According to experts, there is not a single approach that provides a complete

understanding of industrial relations, rather all approaches of Industrial
Relations collectively provide a complete understanding of the complexity
and diversity among the various actors and players in Industrial Relations.

Approaches of Industrial Relations

The important approaches to industrial relations are as follows:-

1. Unitary Approach
2. Pluralistic Approach
3. Marxist Approach
4. Systems Approach
5. Sociology Approach
6. Gandhian Approach
7. Psychological Approach
8. V.V Giri Approach
9. Human Relations Approach

The above mention approaches to industrial relations are explained in detail

one by one below.

1. Unitary Approach

In this approach, the management is considered the main authority for

decision making and it is also responsible for ensuring peace and harmony in
the organization.

This theory believes that workplace conflict is temporary in nature, and is a

result of improper management in the organization.
The unitary approach discourages conflict in the form of strikes which is not
only regarded as necessary but destructive.

The unitary approach of industrial relations strongly upholds the concept of

mutual cooperation, individual treatment, teamwork, and shared goals.

The advocates of the unitary approach emphasize direct negotiations with

employees and they are not in the favour of intervention of government,
tribunals, and unions in the resolution of disputes.

The Important aim of the unitary approach is as follows:

 It promotes a productive, effective and harmonious working

environment in the organization
 It helps in developing a trustworthy, open, fair, and transparent work
culture
 It restricts the interference of the tribunals’ court and government
associations in industrial disputes.
 It initiates direct negotiation between the management and the
employees.
2. Pluralistic Approach

The pluralistic approach assumes that the organization is consist of

individuals who form distinct groups with their own set of aims, objectives,
leadership styles, and value
propositions and this kind of multi-distinct groups are responsible for the
continuous scope for conflict.
As per this approach, the legitimacy of the management’s authority is not
automatically accepted, and stability and peace in industrial relations as the
product of concessions and compromises between management and unions.

It considers the workplace conflict between management and workers as

rationally beneficial and inevitable and conflict is viewed as necessary for
innovation and growth.

The trade unions are considered legitimate representatives of employee

interests and workers join the trade unions to protect their interests and
influence the decision-making of the management.

A pluralist approach to industrial relations supports the intervention of the

government or state in order to protect the interest of employees through
laws and industrial tribunals which provide orderly processes for the
resolution of conflict.

3. Marxist Approach

The Marxist approach is also known as the ‘Radical Perspective’, and as the
name suggests it is based on the ideas of Karl Marx.

The core of the Marxist approach is based on the idea that the economic
activities of production and manufacturing are major controlled by capitalists
whose only objective is to maximize their profit and exploit the workers.

Marxists also regard conflict between employers and employees or those who
own the means of production and those who have only their labor to offer as
inevitable and it is a result of the unfair treatment done by capitalist society
to workers.
The Marxists always support that class conflict because it is required to
initiate social change which bridges the gap between the economically settled
owners of factors
of production and the economically dependent worker class.

This approach supports the formation of trade unions as they saw as an

effective force that protects the workers from exploitation by capitalists and
also considered as a weapon to bring about a revolutionary social change.

Marxists’ approach is against the intervention of state intervention through

legislation and the creation of industrial tribunals. They believe that state
intervention always favors management’s interest rather than supporting
the workers.

4. Systems Approach

In his book Industrial Relations Systems, John T. Dunlop gave the systems
theory of industrial relations in the year 1958.

According to John. T. Dunlop that every human being belongs to a

continuous but independent social system culture that is responsible for
shaping his or her actions, behavior, and role.

The system approach of industrial relations was based on a joint function of

all the different variables:

1.Actors: The term actors here refers to the individuals or parties involved in
the process of developing sound industrial relations. This variable is denoted
by ‘A’.
2.Contexts: The term contexts here refers to the condition or situation in
which the actors perform the given tasks. It includes the industry markets
(M), technologies (T), and the power distribution in the organization and
labor unions(P).

3.Ideology: The similar ideas, mentality, or beliefs shared by the actors help
to blend the system. It is denoted by (I).
John Dunlop’s Systems Approach Formula based on different variables are

5. Sociological Approach

The sociological approach to industrial relations considers industry as an

inseparable part of society.

A society is consist of different people who have many differences in their

family background, attitudes, skills, education level, perception, personality,
interests, likes, and dislikes, and these differences not only affect management
vision, mission objective, employee attitude, and perception but are also
responsible for workplace conflict.

Where industry also affects society in both economic and social ways.
Industries play a key role in determining social mobility, urbanization,
transport problem, family structure and size, status symbols, and customs.

According to the sociological approach, society impacts various work

environment factors that are economic, technical, and political factors of an
enterprise and these determine what kind of relationship is shared by the
employer, employees, institutions, and government bodies.
6. Gandhian Approach

As the name suggests this approach was proposed by Mahatma Gandhi or

Mohandas Karamchand Gandhi.

The Gandhian approach to industrial relations perceived that every

Industrial organization is a joint venture of employees and employers and the
employees should be treated as associates or co-partners in the business.

Gandhi Ji was not against strikes instead, he was a supportive attitude toward
strikes.

According to theory opinion, strikes should be carried out in a completely

violence-free manner and it should be treated as the last option the workers
adopt, after the failure of all the constitutional and peaceful ways of resolving
conflicts and negotiating with the employer.

Gandhian’s approach is focused on increasing production and gains from

production should be shared with the employees whom it has been possible.

Gandhi Ji also emphasized that industrial disputes between the employer

and employees should be resolved healthily through interactions, arbitration,
and bilateral negotiations.

7. Psychological Approach

As per the psychological approach, the main reason behind industrial

disputes is the different perceptions and mindsets, lack of trust, and negative
feelings among the key participants of industrial relations i.e., the employees
and the management.
This negative perception about each other not only affect economic but also
non-economic factors, like power, position, recognition, beliefs, education,
social security, and income of the individuals.

All factors create a tense interpersonal relationship leading to conflicts that

ultimately hinder the image and interest of the individuals involved.

8. VV Giri’s Approach to industrial relations

This approach to industrial relations was given by the late President of India
Shri V.V. Giri who was a renowned politician and trade union leader.

The Giri approach emphasized the importance of collective bargaining and

mutual negotiations between management and labor should be used to settle
industrial disputes.

He suggested that every industry should set up bipartite machinery to

resolve the industrial conflict and this bipartite committee consist of both
management and trade union representatives.

Giri’s emphasized the voluntary efforts of the management and the trade
unions to resolve their differences, through voluntary arbitration, and
collective bargaining rather than compulsory arbitration

9. Human Relations Approach to industrial relations

The human relation approach of Elton Mayo has laid considerable

importance on human behavior.
This approach analyzes the behavior of individuals and groups at the
workplace and also helps in modifying individual behavior toward the
accomplishment of organizational objectives.

This school of thought highlights all the aspects of human behavior that
ensure individual integration motivation, teamwork, productivity, and
cooperation with management.

The human relations approach stresses certain policies and techniques that
are vital for improving employee morale, efficiency, communication, the
workplace as a social system, group dynamics, and participation in
management and job satisfaction.

This approach outlines all the attributes that determine the labor-
management relations which may arise from industrial disputes or conflicts
like job and social security, good pay and working conditions, recognition,
participation in decision-making, etc.

The industrial relations system in India

The industrial relations system in India is complex and comprises various

stakeholders, laws, and institutions. Here are some key aspects:

Labor Laws

India has numerous labor laws that govern various aspects of industrial
relations, including the Industrial Disputes Act, 1947, and the Trade Unions
Act, 1926. These laws regulate issues such as dispute resolution, collective
bargaining, and worker protection.
Trade Unions

Trade unions play a significant role in Indian industrial relations. They

represent workers' interests and engage in collective bargaining with
employers to negotiate wages, working conditions, and other employment
terms.

Employers' Associations

Employers' associations represent the interests of employers and often

engage in negotiations with trade unions. They work to protect employers'
rights and promote favorable business environments.

Government

The Indian government plays a crucial role in industrial relations by

enacting and amending labor laws, setting minimum wage standards, and
providing a framework for dispute resolution. The Ministry of Labor and
Employment is responsible for labor-related matters.

Dispute Resolution

The industrial relations system includes mechanisms for resolving disputes

between workers and employers. This can involve conciliation, arbitration,
or adjudication through labor courts and tribunals.
Collective Bargaining

Collective bargaining is a fundamental component of the Indian industrial

relations system. Trade unions and employers' associations negotiate
collective agreements that cover various employment-related issues.

Workers' Rights

Labor laws in India protect workers' rights, including the right to form and
join trade unions, the right to fair wages and working conditions, and the
right to strike (subject to legal restrictions).

Industrial Conflicts

Despite the legal framework, India has experienced industrial conflicts and
strikes due to disputes between labor and management. These conflicts often
result from disagreements over wages, working conditions, and job security.

Reforms

Over the years, there have been efforts to reform India's labor laws to
simplify regulations, enhance ease of doing business, and promote
employment generation. Some of these reforms aim to balance the interests
of workers and employers.

It's important to note that the Indian industrial relations system is dynamic
and subject to change through legislative amendments and evolving socio-
economic conditions. For the most up-to-date information, it's advisable to
refer to the latest labor laws and developments in the country.
 Trade Union

Definition: A trade union is an organized group of workers or employees

within a specific industry, occupation, or workplace who unite to protect and
promote their collective interests. Trade unions typically have a formal
structure, leadership, and membership, and they engage in various activities
to advance the rights and well-being of their members.

Key Features of Trade Unions:

1. Collective Representation: Trade unions represent the collective

interests of their members, rather than individual workers. They
negotiate with employers on behalf of the entire membership to reach
agreements on employment terms and conditions.
2. Collective Bargaining: One of the primary functions of trade unions is
collective bargaining, wherein they negotiate with employers to secure
better wages, benefits, and working conditions. This negotiation
process often leads to the creation of collective agreements or labor
contracts.
3. Protection of Workers' Rights: Trade unions work to protect the rights
of workers in various aspects, including job security, protection
against unfair labor practices, safe working conditions, and fair
treatment.
4. Advocacy: Unions may engage in advocacy efforts to influence labor
laws, workplace regulations, and government policies that impact
workers. They may lobby for changes in legislation and participate in
political activities to further workers' interests.
 5. Conflict Resolution: Trade unions often play a role in resolving
workplace disputes and grievances, using negotiation and, if necessary,
arbitration or legal procedures.
6. Solidarity and Support: Unions foster a sense of solidarity and
camaraderie among workers, offering support to members in times of
workplace challenges or disputes.
7. Education and Training: Many trade unions provide education and
training programs to enhance the skills, knowledge, and employability
of their members.
8. Strikes and Industrial Actions: In cases where negotiations fail to yield
satisfactory outcomes, trade unions may organize strikes, work
stoppages, or other forms of industrial action as a means to pressure
employers into meeting their demands. These actions are typically
considered a last resort.

Trade unions vary widely in size, scope, and influence, and their specific
goals and activities can differ depending on the industry, region, and the
legal and cultural context in which they operate. Trade unions are a
significant force in many labor markets worldwide and play a crucial role in
safeguarding the rights and interests of workers.

Objectives of Trade Unions:

1. Collective Bargaining: Trade unions negotiate with employers on

behalf of their members to secure better wages, benefits, and working
conditions. Collective bargaining is a fundamental objective of most
trade unions.
 2. Protection of Workers' Rights: Trade unions work to protect the rights
of workers, including the right to fair wages, safe working conditions,
job security, and protection against unfair labor practices.
3. Social and Economic Welfare: Unions often advocate for policies that
promote the social and economic well-being of workers, including
healthcare benefits, pensions, and unemployment insurance.
4. Training and Skill Development: Some trade unions offer training
programs and support for skill development to enhance the
employability and career prospects of their members.
5. Political Advocacy: Trade unions may engage in political activities to
influence government policies and legislation that affect workers, such
as labor laws, workplace safety regulations, and minimum wage laws.

Rights of Trade Unions:

1. Right to Organize: Trade unions have the legal right to organize

workers in their industry or workplace and to recruit members freely.
2. Collective Bargaining: Unions have the right to negotiate collective
agreements with employers to determine wages, working hours,
benefits, and other employment terms and conditions.
3. Representation: Trade unions represent their members in matters
related to employment, including grievance procedures, disciplinary
actions, and disputes.
4. Protection Against Discrimination: Workers have the right to join or
not join a union, and employ
5. yers are prohibited from discriminating against employees based on
their union membership or activities.
 6. Strike Action: Trade unions have the right to engage in strike actions
as a means to achieve their objectives, subject to legal restrictions and
procedural requirements.

Responsibilities of Trade Unions:

1. Member Representation: Unions are responsible for representing the

interests of their members effectively, including advocating for their
rights and negotiating fair labor agreements.
2. Transparency: Trade unions should maintain transparency in their
financial dealings, decision-making processes , and communication
with members.
3. Compliance with Laws: Unions are obligated to operate within the legal
framework governing labor relations in their jurisdiction, including
complying with labor laws, registration requirements, and reporting
obligations.
4. Conflict Resolution: Trade unions play a role in resolving workplace
disputes and grievances through negotiation and, if necessary, formal
grievance procedures or legal channels.
5. Education and Information: Unions often provide information and
education to their members on labor rights, workplace safety, and
other relevant issues to empower workers with knowledge.
6. Promotion of Solidarity: Unions aim to foster solidarity among workers
and promote a sense of community and shared interests among their
members.

It's important to note that the specific objectives, rights, and responsibilities
of trade unions may vary from one organization to another and can be
influenced by local labor laws and cultural contexts. Additionally, the
effectiveness and influence of trade unions depend on various factors,
including their size, resources, and the political and economic climate in
which they operate.

Trade unions serve several functions, primarily aimed at protecting and

advancing the interests of workers.
Key functions of Trade union
Collective Bargaining: Trade unions negotiate with employers on behalf of
their members to secure better wages, working conditions, benefits, and job
security. This process is known as collective bargaining.
Representation: Unions represent individual workers or groups of workers in
disputes with employers, ensuring that employees' rights and interests are
safeguarded.
Advocacy: They advocate for labor-friendly policies and legislation, both at
the workplace and in the broader political arena. This includes advocating
for workplace safety, anti-discrimination laws, and fair labor standards.
Worker Protection: Unions work to ensure that workers are treated fairly
and do not face unfair treatment, discrimination, or exploitation by
employers.
Grievance Handling: Trade unions help members resolve workplace
grievances and disputes, often through a structured grievance procedure.

Training and Education: Many trade unions offer training and educational
programs to help their members acquire new skills and knowledge, enhancing
their employability.
Solidarity: Unions promote solidarity among workers, encouraging them to
support each other in times of labor disputes or strikes.
Political Engagement: Trade unions often engage in political activities,
endorsing candidates and advocating for policies that align with workers'
interests.
Health and Safety: They play a role in ensuring workplace safety and can
demand better safety measures to protect workers from hazards.
Collective Action: In extreme cases, unions may organize strikes or other
forms of industrial action to pressure employers into meeting their demands.
Negotiating Contracts: Unions negotiate employment contracts that specify
terms and conditions of employment, such as wages, working hours, and
benefits.
Promoting Fair Wages: They work to secure fair and competitive wages for
their members, helping to narrow income disparities.
These functions vary from one union to another and can also depend on the
legal and cultural context in a particular country. Trade unions are critical in
representing workers and advocating for better working conditions and fair
treatment in the labor market.

Registration of Trade Union in India

A trade union in India is registered according to the provision of the Trade
Unions Act, 1926. The appropriate Government has appointed Registrars for
the registration of trade unions.
A Registrar is appointed under Section 3 of the Trade Unions Act, 1926.
Section 4 of the Trade Unions Act, 1926 provides for the mode or the manner
of registration of trade union.
Section 4 of the Trade Unions Act, 1926 is an important provision with
regard to registration of trade union as it provides the minimum requirement
for the registration of a Trade Union in India.
Section 5 of the Trade Unions Act, 1926 provides the manner of application
for the registration of trade union and Section 6 of the Trade Unions Act,
1926 deals with provisions to be contained in the rules of a Trade Union.
Mode of Registration
Section 4 of the Trade Unions Act, 1926 provides that an application for
registration of a Trade Union can done by:
Any seven or more members of a Trade Union by subscribing their names to
the rules of the Trade Union.
According to the Trade Unions (Amendment), Act 2001, an application for
the registration of the Trade Union there has to be at least ten percent or one
hundred of the workmen, whichever is less, engaged or employed in the
establishment or industry with which it is connected.
Application for registration:
An application for the registration of a Trade Union shall be made to a
Registrar as per provision of the Section 5 of the Trade Unions Act, 1926.
The application shall be accompanied by a copy of the rules.
The application shall contain the following details:
 The names, occupations and addresses of the members making the
application
 In the case of a Trade Union of workmen, it shall information such as
the names, occupations and addresses of the place of work of the
members of the Trade Union making the application (According to the
Trade Unions (Amendment), Act 2001)
 The name of the Trade Union and the address of its head office
 The titles, names, ages, addresses and occupations of the office-bearers
of the Trade Union.
Provisions to be contained in the rules of a Trade Union
According to section 6 of the Trade Unions Act, 1926 Trade Union shall
establish an executive committee has been established in accordance with
the provisions of the Act and the rules shall provide for the following
matters:
 The name of the trade union
 The whole of the objects of the trade union
 The whole of the purposes of the general funds of the trade union
 The maintenance of a list of the members of the trade union
 The admission of ordinary members and they shall be persons actually
engaged or employed in an industry with which the trade union is
connected
 The conditions by which any member shall be entitled to any benefit
and rules of fine or forfeiture that may be imposed on the members
 The manner in which the rules shall be amended, varied or rescinded
 The manner in which the members of the executive and the other
office bearers of the Trade Union shall be elected and removed
 The safe custody of the funds of the trade union, an annual audit etc.
 The manner in which the trade union may be dissolved

Certificate of registration

Upon compliance of the provisions of the Trade Unions Act, 1926, the
Registrar shall issue a Certificate of Registration. A Certificate of
Registration is conclusive evidence that the Trade Union registered under
the provisions of the Trade Unions Act, 1926.
Evolution of Trade union in India

Introduction

The labour movement was the principal force that transformed misery and
despair into hope and progress. Out of its bold struggles, economic and social
reform gave birth to unemployment insurance, old-age pensions, government
relief for the destitute and, above all, new wage levels that meant not mere
survival but a tolerable life. The captains of industry did not lead this
transformation; they resisted it until they were overcome. When in the
thirties the wave of union organization crested over the nation, it carried to
secure shores not only itself but the whole society.

Trade Unions, in general, emerged as a result of the Industrial Revolution

which can be traced back to the 18th century when the Industrial
Revolution began in Britain. The Industrial Revolution is characterized by
the setting up of large-scale factories, new lines of mass production,
mechanization and rapid economic development.

It is natural that when a large number of factories are set, there is a need for
labour. Hence, the demand for unskilled and skilled labour grew. At the time
the industries were not properly organized and the employers concentrated
on maximizing profits which led to exploitation of the labour class who were
uneducated and poor. In other words, it led to the formation of two classes in
the industrial sector:

Employer Class – Who were profit-oriented and did not really bother about
the working conditions of the labour.
 Labour Class – Who were uneducated and had no knowledge of their rights
and were also in need of money.

Initially, the labourers felt that their need for money is greater and that their
employers can easily replace them if they protested to the exploitative terms
and wages imposed by their employers.

But slowly the labour class realized that if one individual labour protests
against the exploitative terms of his employee, it will not have any impact
on the industrial organization but if laborers form themselves into a group or
“Union” then more impact will be exerted on their employer lords. Forming
labourers into Unions also gave them the power to collectively bargain for
themselves. Therefore, this thought led to the formation of Trade Unions.

The observation of the 26th President of the United States is noteworthy to

note here which goes as – “It is essential that there should be an organization
of labour. This is an era of organization. Capital organizes and therefore
labour must organize.” – Theodore Roosevelt

Trade Unionism in India

The British started colonizing the Indian sub-continent in the 1600s and
started to set up factories and mills in India just like the Industrial
Revolution in Britain. The main reason why the British found it apt to start
industrialization in India was that India had an abundance of cheap and
poor labour along with natural resources and land for setting up the
industries.

The cotton mill was established in 1851 in Bombay and first jute mill was
established in 1855 in Bengal.
Just like in Britain, the conditions of labour in India was worse. The
exploitative and pitiable working terms such as working hours, wages and
expelling policies made the labours join hands and unite and protest. One of
the first unrest among labourers can be dated back to the year 1877 when
due to sudden reduction in wages the labourers of Empress Mill, Nagpur
organized a strike.

Since such unionism was a new phenomenon there existed no law to legalize
and regulate these new labour unions. With growing discontent and unrest
among the labour class and constant tiff with the employer class, few steps
were taken to inquire and resolve the situation.

Factories Commission, 1875 – Factories Commission, 1875 was the first

commission set up which properly inquired into the conditions of the
factories and came to the conclusion that some kind of legal limit was
necessary and the Factories Act, 1881 was passed.

Factories Commission, 1885 – The Second Commission was set up in 1885 and
on the basis of the inquiry and second Factories Act in 1891 was passed.

Royal Commission on Labor, 1892 – The Commission led to imposing of

limitations on working hours in factories.

Factories Commissions and Factories legislations caused no improvement in

the working conditions of the labour class in India. In 1885 all workers of
India had also signed a memorandum with their employers to provide them
with basic minimum working conditions.

However, the situation did not improve.

The initial approach by labourers was humanistic in nature under the
background of the setting up of Indian National Congress and non-violence
movement initiated by Mahatma Gandhi.

Post World War I period

When World War I broke out there was the sudden diversion of all resources
to cater to war needs and the employers were dependent on the labourers. It
then the labourers realized that the employers need them as much as they
need their employers. This gave them a “bargaining position”.

Trade unions started to get formed in India but the process was slow due to
the leadership of socialist reformers. Yet many Trade unions started to get
formulated. The first major trade union formed was the Madras Labour
Union in 1918 under the presidentship of Mr B.P. Wadia. This was followed
by the formation of the All India Trade Union Congress in 1920.

With the formation of Trade Unions, the labourers started to organize strikes
and protests to assert their demands such as lowering of working hours,
minimum basic wages,

The Buckingham Mill Case

The formation of Trade Unions and the organization of strikes and protests
by the labourers were not welcomed by the employers. To put an end to the
activities of the newly formed trade unions and further to bar formation of
Trade Unions the employers sought legal recourse.

One of the most important cases filed was against Mr B.P. Wadia who was
the President of the Madras Labour Union that he conspired with workers
and went on strike and was restraining trade. The Employers prayed for an
injunction to stay the protests and activities done by the Trade Union.

Contentions raised by the Employers:

The strike is illegal because it amounts to a restraint of trade under

Section 27 of the Indian Contract Act.

The strike constituted criminal conspiracy under section 120A of the

Indian Penal Code 1860.

The strike also constituted civil conspiracy under civil law.

The Hon’ble Madras High Court granted the injunction to stay the strike on
three grounds:

 There was a valid cause of action in favour of employers.

 There was a breach of law by the labourers.
 There were losses suffered by the employers due to the actions of the
trade union.

It is to be noted here that until this time there was no legislation which gave
legal force/backing to trade unions. The Order of the Madras High Court was
further blown to the truth that there was no law that legalized trade
unionism in India.

The growing need to have pro-labour legislation led to the passing of the
Indian Trade Union Act 1926. The word “India” was later dropped and the
legislation named Trade Union Act, 1926 came into force.
The Preamble of the “An Act to provide for the registration of Trade Unions
and in certain respects to define the law relating to registered Trade Unions”.

Post World War I the cost of living increased and there was growing
agitation against colonial rule. With the passing of the Trade Union Act
emergence of “military trade unionism” was witnessed with a lot of strikes
and protests by the Trade Unions. India also joined the International
Labour Organization as a founding member.

Period Post 1947

One major lacuna with the 1926 Act was that though it provided for
voluntary registration of Trade Unions it did not provide for compulsory
recognition of the Trade Unions by the employers and because it was not
compulsory for the employers to recognize the Trade Unions, obviously did
not recognize them. This again put a halt to the development of Trade
unions.

For example, whenever the members of Trade Unions or their lawyers went
to negotiate with the employers, the employers simply refused to talk to
them on the ground that they do not recognize such Trade union, though it
is registered!

The Act was amended in 1947 which provided for compulsory recognition by
the employers of the representative Unions. However, the amended act has
not been brought to force yet.

Trade Unionism in India from 1950 to 1970

Independence of India was beneficial to Trade Unions in India in a huge way

as the forefathers adopted the principles of equality for all, justice and
freedom including the freedom of expression. The Constitution of India also
recognized Freedom of Association as a Fundamental Right.

Planning was also adopted by India by the way of Five- year plans. The
focus of the first two five-year plans was on industry and agriculture which
led to setting up of large public sector industries. With the setting up of
industries, the need for labour grew and trade unionism became active.

However, the trade unions saw their own troubles. Due to a lack in
organization and proper leadership there was inter-union tensions and
conflicts which was coupled with political interventions. The State took a
paternalistic approach whereby it stated dictating the unions. Hence, during
this period strikes and protests were low as compared to the coming years.

Trade Unionism in India from 1970 to 1990

From the mid of 1960, the economic situation of India had started to
deteriorate mainly because of famines and wars witnessed by India in its
preceding years. The rate of inflation rose and prices of food and grains
soared. Industries were also affected by the structural changes in the
economy. There were more protests, strikes and lockouts organized by the
trade unions during this period.

Nationwide Emergency imposed during PM Indira Gandhi’s regime from

1975 to 1977 suspended all the Fundamental Rights including the right to
form associations and right to strike.

Post-Emergency the government had attempted to bring into force an

industrial relations bill which aimed at banning strikes and lockouts in
essential industries and services. However, the bill was met with strong
opposition from different participants, specifically the trade unions. As a
result, the bill was not passed.

The trade unions had achieved a domineering stance by this time. They had
aced in their bargaining powers and had become more organized and were
able to meet their requirements by negotiations and strikes.

Trade Unionism in India from 1990 to 1999

In 1991 the Government decided to open the economy by introducing the

“New Economic Policy” (NEP). With pressures of liberalization,
privatization and globalization cracks and splits were also seen in Trade
Unions in India because the Government’s labour-friendly approach changed
to be more investor-friendly. Due to globalization, there was massive cutting
in the workforce and trade unions were trying hard to save labourers jobs.
With the advent of liberalization in 1991, the industrial relations policy
began to change.

Now, the policy was tilted towards employers. Employers opted for
workforce reduction, introduced policies of voluntary retirement schemes
and flexibility in the workplace also increased. The age-old policy of
protectionism proved inadequate for the Indian industry to remain
competitive as the lack of flexibility posed a serious threat to manufacturers
because they had to compete in the international market. Thus, globalization
brought major changes in industrial relations policy in India. The main
characteristics of trade unionism after globalization became the small size of
membership, lack of adequate finance, non-fulfilment of welfare schemes,
control of political parties and other outside interference in the activities of
trade unions.
Trade Unionism in the 21st Century

With difficulties faced by NEP, the trade unions had to face a barrage of
problems but the silver lining is the growth in the number of trade unions,
better organization and functioning. As per data of Labour Bureau, there are
around 11,556 registered labour unions in India with average membership at
1283 members per union.

In 2001 the Act was amended. Major additions and amendments to the act
are the following,

Amendment to Section 4.: The proviso to Section 4, added after the 2001
amendment, now prescribes minimum number workers who should be part of
the Trade Union at the time of making the application for registration. The
proviso reads as,

“Provided that no Trade Union of workmen shall be registered unless at least

ten per cent of one hundred of the workmen, whichever is less, engaged or
employed in the establishment or industry with which it is connected are the
members of such Trade Union on the date of making of an application for
registration:

Provided further that no Trade Union of workmen shall be registered unless

it has on the date of making application not less than seven persons as its
members, who are workmen engaged or employed in the establishment or
industry with which it is connected.”

Insertion of Section 9A: Minimum membership requirement was

established by inserting Section 9A to the Act. The new Section 9A reads as,
“9A. The minimum requirement about membership of a Trade Union.-A
registered Trade Union of workmen shall at all times continue to have not
less than ten per cent or one hundred of the workmen, whichever is less,
subject to a minimum of seven, engaged or employed in an establishment or
industry with which it is connected, as its members.”

Proposed amendments

The Ministry of Labour and Employment has been deliberating on inserting

a provision for recognition of trade unions at the central and state level.
Contemplation to incorporate such an amend has come in the wake of
numerous representations by trade unions.

Hence, on 20th July 2018, the Ministry has published a notification in the
official gazette proposing the amendment and has invited comments from
the stakeholders and participants on the draft amendment.

If passed, a new Section 28A and Sub-section (2A) to Section 29 (2) will be
inserted which will provide for compulsory recognition of Trade unions at
both federal levels.

Trade Unionism in India has come a long way. Initially from having no legal
backing to illegalizing “strikes” by the unions to granting them registration
procedure and compulsory recognition and now having full-fledged
legislations and special courts, trade unions in India have attained
remarkable status/standing in the labour movement.

However, there are still few impediments that the trade unions face such as
lack of financial resources and governmental support. Hence, there is still
scope for the development of Trade Unionism in India.
 Industrial relations in the IT

Industrial relations in the IT (Information Technology) sector encompass the

interactions and relationships between employers, employees, and relevant
stakeholders within the industry. These relationships are crucial for
maintaining a productive and harmonious work environment. Here are some
key aspects of industrial relations in the IT sector:

Labor Unions:

In many countries, IT professionals may be members of labor unions or

industry-specific associations. These organizations can negotiate
employment terms, wages, benefits, and working conditions on behalf of
their members.

Employment Contracts:

IT companies typically provide their employees with detailed employment

contracts that outline their rights, responsibilities, compensation, and
benefits. Employment contracts in the IT sector often include provisions
related to intellectual property, confidentiality, and non-compete
agreements.

Wages and Benefits:

Compensation packages in the IT sector are typically competitive due to the

demand for skilled professionals. Industrial relations may involve
negotiations over salary increases, bonuses, stock options, and other benefits.
Working Conditions:

Issues related to working conditions, including working hours, overtime,

remote work arrangements, and workplace safety, can be a focal point of
industrial relations discussions.

Dispute Resolution:

Disputes can arise in any workplace, and the IT sector is no exception.

Industrial relations may involve processes for resolving conflicts, such as
grievance procedures, mediation, arbitration, or legal action.

Collective Bargaining:

In some regions or companies, IT employees may engage in collective

bargaining with employers to negotiate employment terms, especially when
unions are involved. These negotiations can lead to collective agreements
that outline terms and conditions for a group of employees.

Training and Development:

The IT sector is known for its fast-paced technological advancements.

Industrial relations may involve discussions about training and professional
development opportunities to ensure that employees can keep up with
industry changes.

Diversity and Inclusion:

Promoting diversity and inclusion is becoming increasingly important in the

IT sector. Industrial relations can involve discussions on diversity initiatives,
anti-discrimination policies, and equal opportunity measures.
Outsourcing and Offshoring:

Many IT companies engage in outsourcing or offshoring work to reduce

costs. This can have implications for job security and labor relations both
within the company and in the context of the global IT workforce.

Regulatory Compliance:

Compliance with labor laws and regulations is critical in the IT sector.

Industrial relations may involve discussions about ensuring that companies
adhere to labor standards, immigration regulations, and other applicable
laws.

Employee Engagement and Satisfaction:

Maintaining a positive work culture and addressing employee concerns are

essential for employee retention and productivity in the IT sector. Industrial
relations can involve initiatives to improve employee engagement and
satisfaction.

In summary, industrial relations in the IT sector involve a range of issues

related to employment, compensation, working conditions, and employee
engagement. Effective industrial relations are essential for creating a
conducive work environment and addressing the unique challenges and
opportunities in the technology industry.