Industrial Relations Introduction Industrial relations is used to denote the collective relationships between management and the workers

. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers¶ participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct. In the words of Lester, "Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and co-operation; and between conflicting interests of the individual, the group and the community´. The National Commission on Labor (NCL) also emphasize on the same concept. According to NCL, industrial relations affect not merely the interests of the two participantslabor and management, but also the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform. In fact, industrial relation encompasses all such factors that influence behavior of people at work. A few such important factors are below: Institution: It includes government, employers, trade unions, union federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. Characters: It aims to study the role of workers unions and employers¶ federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators /arbitrator, judges of labor court, tribunal etc. Methods: Methods focus on collective bargaining, workers¶ participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc. Contents: It includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers¶ participation in management, collective bargaining, etc.

Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). Concept of Industrial Relations: The term µIndustrial Relations¶ comprises of two terms: µIndustry¶ and µRelations¶. ³Industry´ refers to ³any productive activity in which an individual (or a group of individuals) is (are) engaged´. By ³relations´ we mean ³the relationships that exist within the industry between the employer and his workmen.´ The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers¶ participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.

Related Terms For better understanding of industrial relations, various terms need to be defined here:

Industry: Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes whether or not any capital has been invested for the purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or profit. Thus, an industry is a whole gamut of activities that are carried on by an employer with the help of his employees and labors for production and distribution of goods to earn profits. Employer: An employer can be defined from different perspectives as:y

a person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons. a person who directly engages a worker/employee in employment. any person who employs, whether directly or through another person or agency, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed.

y y

As per Industrial Disputes Act 1947 an employer means:y

in relation to an industry carried on by or under the authority of any department of [the Central Government or a State Government], the authority prescribed in this behalf, or where no authority is prescribed, the head of the department; in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;

y

Employee: y

Employee is a person who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business. An employee is any individual employed by an employer. A person who works for a public or private employer and receives remuneration in wages or salary by his employer while working on a commission basis, piece-rates or time rate. Employee, as per Employee State Insurance Act 1948, is any person employed for wages in or in connection with work of a factory or establishment to which the act

y y

y

applies. In order to qualify to be an employee, under ESI Act, a person should belong to any of the categories:
o

those who are directly employed for wages by the principal employer within the premises or outside in connection with work of the factory or establishment. those employed for wages by or through an immediate employer in the premises of the factory or establishment in connection with the work thereof those employed for wages by or through an immediate employer in connection with the factory or establishment outside the premises of such factory or establishment under the supervision and control of the principal employer or his agent. employees whose services are temporarily lent or let on hire to the principal employer by an immediate employer under a contract of service (employees of security contractors, labor contractors, house keeping contractors etc. come under this category).

o

o

o

Employment: The state of being employed or having a job. Labor market: The market in which workers compete for jobs and employers compete for workers. It acts as the external source from which organizations attract employees. These markets occur because different conditions characterize different geographical areas, industries, occupations, and professions at any given time. An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation. A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.

Actors in the IR system: Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers¶ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes. Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions. Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts.

SCOPE: The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others. The scope or industrial relations is quite vast. The main issues involved here include the following: 1. Collective bargaining 2. Machinery for settlement of industrial disputes

if these are goods of mass consumption. Strikes.e. It helps promoting cooperation and increasing production. It increases the place of workers in the society and their ego is satisfied. workers must recognize employer¶s authority. go-slow tactics. Smooth running of an industry is of vital importance for several other industries. On the other hand. Thus. Standing orders 4. employees and Government to work out a new relationship in consonance with a spirit of true democracy. to exporters if these are export goods. Mental Revolution ± The main object of industrial relation is a complete mental revolution of workers and employees. In other words. lockouts. it is evident that good industrial relations is the basis of higher production with . complete unity of thought and action is the main achievement of industrial peace. i. material and machines are reduced to the minimum and thus national interest is protected. Wastages of man. The resources are fully utilized. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. It naturally affects production because mighty co-operative efforts alone can produce great results. Every worker feels that he is a co-owner of the gains of industry. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Reduced Wastage ± Good industrial relations are maintained on the basis of cooperation and recognition of each other. Their significance may be discussed as under ± Uninterrupted production ± The most important benefit of industrial relations is that this ensures continuity of production. The industrial peace lies ultimately in a transformed outlook on the part of both. to increase production. It is the business of leadership in the ranks of workers. resulting in the maximum possible production. Workers participation in management 5.3. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same. Reduction in Industrial Disputes ± Good industrial relations reduce the industrial disputes. Unfair labor practices Importance Of Industrial Relations The healthy industrial relations are key to the progress and success. continuous employment for all from manager to workers. gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. High morale ± Good industrial relations improve the morale of the employees. to consumers and workers. It will naturally have impact on production because they recognize the interest of each other. It will help increase production. This means. to other industries if the products are intermediaries or inputs. There is uninterrupted flow of income for all.

improved living and working conditions. These actors and their organizations are located within an environment ± defined in terms of technology. An economy organized for planned production and distribution. labor and product markets. actors interact with each other. said fringe benefits. and the distribution of power in wider society as it impacts upon individuals and workplace. To eliminate or minimize the number of strikes. which are an essential factor in the productivity of workers and the industrial progress of a country. If the twin objectives of rapid national development and increased social justice are to be achieved. To avoid industrial conflict or strife and develop harmonious relations. y y y y Dunlop's Model One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s. workers and formal/informal ways they are organized and government agencies. Within this environment. y To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions. lockouts and gheraos by providing reasonable wages. Socialization of industries by making the state itself a major employer Vesting of a proprietary interest of the workers in the industries in which they are employed. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.minimum cost and higher profits. there must be harmonious relationship between management and labor. so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. To improve the economic conditions of workers in the existing state of industrial managements and political government. According to Dunlop industrial relations system consists of three agents ± management organizations. aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace.are the . It also results in increased efficiency of workers. He proposed that three parties²employers. Objectives of industrial relations The main objectives of industrial relations system are:To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. and government-. labor unions. negotiate and use economic/political power in process of determining rules that constitute the output of the industrial relations system.

He also argued that none of these institutions could act in an autonomous or independent fashion. From employee point of view. Thus it can be said that industrial relations is a social sub system subject to three environmental constraints. labor. the organization is perceived as an integrated and harmonious system. and all members of the organization share the same objectives. Unitary Perspective In unitarism.the markets. political. Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labor relationship: 1. multi-skilled and ready to tackle with efficiency whatever . distribution of power in society and technology. Environmental or external economic. In other words. and the government possess a shared ideology that defines their roles within the relationship and provides stability to the system. Trade unions are deemed as unnecessary and conflict is perceived as disruptive. 2. In effect . 3. legal and social forces that impact employment relationships. unitary approach means that: y Working practices should be flexible. management. A core assumption of unitary approach is that management and staff. technological. Rules that are derived from these interactions that govern the employment relationship.Industrial relations is the system which produces the rules of the workplace. employers and associated organizations and government The Dunlop¶s model gives great significance to external or environmental forces. Furthermore. technological and political contexts. interests and purposes. management.key actors in a modern industrial relations system. at least to some extent. Individuals should be business process improvement oriented. Characteristics and interaction of the key actors in the employment relationship: labor. and government. Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial relations may be regarded as a system in the sense that each of them more or less intimately affects each of the others so that they constitute a group of arrangements for dealing with certain matters and are collectively responsible for certain results´. Such rules are the product of interaction between three key ³actors´ ± workers/unions. towards the shared mutual goals. thus working together. hand-in-hand. unitarism has a paternalistic approach where it demands loyalty of all employees. by their market. viewed as one happy family. Instead they were shaped.

discretion in problem-solving. unitary approach means that: y y Staffing policies should try to unify effort. There is a greater propensity for conflict rather than harmony. y If a union is recognized. The emphasis is on good relationships and sound terms and conditions of employment. They should anticipate and resolve this by securing agreed procedures for settling disputes. . inspire and motivate employees.from the perspective of the unitary framework . Consequently. The organization's wider objectives should be properly communicated and discussed with staff.Realistic managers should accept conflict to occur. innovation. Employee participation in workplace decisions is enabled. The personal objectives of every individual employed in the business should be discussed with them and integrated with the organization¶s needs.management and trade unions. y y y From employer point of view.are seen as arising from lack of information. inadequate presentation of management's policies. the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees. This helps in empowering individuals in their roles and emphasizes team work. creativity. Reward systems should be so designed as to foster to secure loyalty and commitment.tasks are required. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed could in fact be channeled towards evolution and positive change. quality and improvement groups etc. its role is that of a further means of communication between groups of staff and the company. Employees should feel that the skills and expertise of managers supports their endeavors. y y y y Pluralistic-Perspective In pluralism the organization is perceived as being made up of powerful and divergent sub-groups . Staff-management conflicts . Line managers should take ownership of their team/staffing responsibilities.

In distributive bargaining. Under it. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. salaries and bonus are discussed. It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society. Wages (costs to the capitalist) would be minimized to a subsistence level. Disputants can work together to make the pie bigger. one party¶s gain is another party¶s loss. Capitalism would foster monopolies. trying to get as much as they can for themselves.The implications of this approach include: y The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation. Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident. the economic issues like wages. distributive bargaining tends to be more competitive. This is most commonly explained in terms of a pie. Distributive bargaining: It involves haggling over the distribution of surplus. Marx argued that: Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism.distributive bargaining. Independent external arbitrators should be used to assist in the resolution of disputes. or they can focus on cutting the pie up. In general. This perspective focuses on the fundamental division of interest between capital and labor. Union recognition should be encouraged and union representatives given scope to carry out their representative duties Comprehensive collective agreements should be negotiated with unions y y y Marxist Perspective This view of industrial relations is a by product of a theory of capitalist society and social change. This type of bargaining is also . and sees workplace relations against this background. attitudinal restructuring and intra-organizational bargaining. Collective Bargaining Bargaining Forms and Tactics A collective bargaining process generally consists of four types of activities. so there is enough for both of them to have as much as they want. integrative bargaining.

representing the employees. it tends to be more cooperative than distributive bargaining. and the other. it is flexible process and not fixed or static. Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust. there is considerable scope for discussion. It begins with the presentation of the charter of demands and ends with reaching an agreement. there may be differences. sit together to negotiate terms of employment. This means there are always two parties involved in the process y . It develops a bargaining environment and creates trust and cooperation among the parties. When there is a backlog of bitterness between both the parties. attitudinal restructuring is required to maintain smooth and harmonious industrial relations. For example. skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. Mutual trust and understanding serve as the by products of harmonious relations between the two parties. It a bipartite process. there may be differences between groups. Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions of employment and the ways in which certain employment-related issues are to be regulated at national. Characteristics Of Collective Bargaining It is a group process. or at least neither party loses. Moreover. This is a type of maneuvering to achieve consensus with the workers and management. organizational and workplace levels. Integrative bargaining: This involves negotiation of an issue on which both the parties may gain. both the parties are trying to make more of something. y Collective bargaining is a process in the sense that it consists of a number of steps. This type of bargaining is also known as cooperative bargaining. compromise or mutual give and take in collective bargaining. representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method.. Within the management also.e. In general. Here. Negotiations form an important aspect of the process of collective bargaining i.known as conjunctive bargaining. friendliness or hostility between labor and management. Even within the union. which would serve as the basic law governing labor management relations over a period of time in an enterprise. wherein one group. Intra-organizational bargaining: It generally aims at resolving internal conflicts. representing the employers. For example. Trade unions maneuver to achieve consensus among the conflicting groups.

overtime premiums.of collective bargaining. Often employees are represented in the bargaining by a union or other labor organization. In many companies. hours of work. It is a political activity frequently undertaken by professional negotiators. Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Collective Bargaining is continuous process. This will normally include procedures in respect of individual grievances. labor can increase productivity and management can pay better for their efforts. potentialities. A substantive agreement deals with specific issues. Collective bargaining takes into account day to day changes. disputes and discipline. bonus arrangements. The negotiations generally take place between the employees and the management. policies. agreements have a fixed time scale and a collective bargaining process will review the procedural agreement when negotiations take place on pay and conditions of employment. holiday entitlements. Prepare: This phase involves composition of a negotiation team. It enables industrial democracy to be effective. capacities and interests. The result of collective bargaining procedure is called the collective bargaining agreement (CBA). procedural agreements are put into the company rule book which provides information on the overall terms and conditions of employment and codes of behavior. The collective bargaining process comprises of five core steps: 1. It is a form of participation. It uses cooperation and consensus for settling disputes rather than conflict and confrontation. y Collective bargaining is a complementary process i.e. Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes. The negotiation team should consist of representatives of both the parties with adequate knowledge and . etc. each party needs something that the other party has. y y y y Collective Bargaining Process Collective bargaining generally includes negotiations between the two parties (employees¶ representatives and employer¶s representatives). Frequently. such as basic pay. Collective agreements may be in the form of procedural agreements or substantive agreements. Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other.

a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. Discuss: Here. production norms and other relevant conditions is required. this phase could be described as µbrainstorming¶. The exchange of messages takes place and opinion of both the parties is sought. strategic planning and negotiated change. 5. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. 3. This stage is described as consisting of effective joint implementation of the agreement through shared visions. A process well begun is half done and this is no less true in case of collective bargaining. Settlement: Once the parties are through with the bargaining process. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached. the parties decide the ground rules that will guide the negotiations. working conditions. 2. In a word. This stage comprises the time when µwhat ifs¶ and µsupposals¶ are set forth and the drafting of agreements take place. In this phase both the employer¶s representatives and the union examine their own situation in order to develop the issues that they believe will be most important.skills for negotiation. A correct understanding of the main issues to be covered and intimate knowledge of operations. Bargain: negotiations are easy if a problem solving attitude is adopted. Importance of Collective Bargaining Collective bargaining includes not only negotiations between the employers and unions . 4. The first thing to be done is to determine whether there is actually any reason to negotiate at all.

Collective bargaining plays a vital role in settling and preventing industrial disputes. It acts as a method of introducing civil rights in the industry. Collective bargaining leads to industrial peace in the country 2. as a result of which the chances for conflicts are reduced. 3. Moreover. 4. 2. collective bargaining is. Effective collective bargaining machinery strengthens the trade unions movement. increasing their bargaining capacity as a group. the management should be conducted by rules rather than arbitrary decision making. thereby. It helps in securing a prompt and fair settlement of grievances.but also includes the process of resolving labor-management conflicts. Importance to society 1. . that is. Importance to employees Collective bargaining develops a sense of self respect and responsibility among the employees. It restricts management¶s freedom for arbitrary action against the employees. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. Collective bargaining increases the morale and productivity of employees. unilateral actions by the employer are also discouraged. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. It establishes rules which define and restrict the traditional authority exercised by the management. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. essentially. It results in establishment of a harmonious industrial climate which supports which helps the pace of a nation¶s efforts towards economic and social development since the obstacles to such a development can be reduced considerably. Thus. y It increases the strength of the workforce. a recognized way of creating a system of industrial jurisprudence. y y y y y Importance to employers 1. It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers.

Bargaining may be either broadly or narrowly defined in terms of the industrial activities covered and may be either split up according to territorial subunits or conducted nationally. 4. often taking into account macroeconomic goals. includes a range of bargaining patterns. Company/enterprise level Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation between union confederations. Levels Of Collective Bargaining Collective bargaining operates at three levels: 1. . central employer associations and government agencies.3. Sector or industry level 3. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them. It aims at providing a floor for lower-level bargaining on the terms of employment. The discrimination and exploitation of workers is constantly being checked. which aims at the standardization of the terms of employment in one industry. National level 2. Sectoral bargaining.

formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen. whether temporary or permanent.The third bargaining level involves the company and/or establishment. Introduction Of Trade-Unions Trade Unions A trade union is an organization of employees formed on a continuous basis for the purpose of securing diverse range of benefits. . or between employers and employers. it emphasizes the point that bargaining levels need not be mutually exclusive. As a supplementary type of bargaining. The Trade Union Act 1926 defines a trade union as a combination. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives.

workmen and employers. etc. Here. etc. a union is there to represent the interests of its members.. political and social interests of their members. primarily. They may consist of :o Employers¶ association (eg. talks about three relationships. This definition is very exhaustive as it includes associations of both the workers and employers and the federations of their associations. working hours. In spite of only focusing on the . 4. It is an association either of employers or employees or of independent workers. moreover. It is formed on a continuous basis. This means it applies to temporary workers (or contractual employees) as well.or for imposing restrictive condition on the conduct of any trade or business. Indian paper mill association. a trade union can be seen as a group of employees in a particular sector. economic. the character of trade unions has also been changing. using the collective power of its members. They are the relationships between the: y y y workmen and workmen. the relationships that have been talked about are both temporary and permanent. In general. Employer¶s Federation of India. It is a permanent body and not a casual or temporary one. Trade unions have shown remarkable progress since their inception. Thus. The dominant interest with which a union is concerned is. It achieves its objectives through collective action and group effort. 3. They protect the economic. whose aim is to negotiate with employers over pay. They persist throughout the year. Negotiations and collective bargaining are the tools for accomplishing objectives. Features of trade unions: 1. All India Teachers Association) o o o 2. Trade unions are voluntary associations formed for the pursuit of protecting the common interests of its members and also promote welfare. and employers and employers. political and social-of its members. and includes any federation of two or more trade unions. job security. It is formed to protect and promote all kinds of interests ±economic. Then this definition.) General labor unions Friendly societies Unions of intellectual labor (eg. and may even engage in political activity where legislation affects their members. 5. however.

economic benefits of workers. Voice in decisions affecting workers The economic security of employees is determined not only by the level of wages and duration of their employment. unions are said to be recognized for collective bargaining purposes. health and safety and other issues. Their primary function is to protect the interests of workers against discrimination and unfair labor practices. Trade unions are formed to achieve the following objectives: y Representation Trade unions represent individual workers when they have a problem at work. Pay. discuss with management. Normally this is to help people get financial compensation for work-related injuries or to assist people who have to take their employer to court. In many workplaces there is a formal agreement between the union and the company which states that the union has the right to negotiate with the employer. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications. Trade unions negotiate with the employers to find out a solution to these differences. holidays and changes to working practices are the sorts of issues that are negotiated. y Negotiation Negotiation is where union representatives. These policies directly affect workers. If an employee feels he is being unfairly treated. the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interests.Most unions run training courses for their members on employment rights. he can ask the union representative to help sort out the difficulty with the manager or employer. promotion and transfer. . Unions also offer their members legal representation. Objectives Of Trade Unions Trade unions are formed to protect and promote the interests of their members. the trade unions are also working towards raising the status of labors as a part of industry. So. working hours. In these organizations. These include: o y y Education and training . The evaluation criteria for such decisions may not be fair. the issues which affect people working in an organization. retrenchment. but also by the management¶s personal policies which include selection of employees for lay offs. Member services During the last few years. There may be a difference of opinion between management and union members. trade unions have increased the range of services they offer their members.

some unions give help with personal matters. the militant functions of trade unions can be summed up as: y y y To achieve higher wages and better working conditions To raise the status of workers as a part of industry To protect labors against victimization and injustice Fraternal Functions Another set of activities performed by trade unions aims at rendering help to its members in times of need. Hence. like housing.g. and improving their efficiency. Thus. When the unions fail to accomplish these aims by the method of collective bargaining and negotiations. Welfare benefits . they adopt an approach and put up a fight with the management in the form of go-slow tactics. if necessary. reading-rooms. Some of the older unions offer financial help to their members when they are sick or unemployed. They take up welfare measures for improving the morale of workers and generate self confidence among them. these functions of the trade unions are known as militant or fighting functions. secure better conditions of work and employment. strike.o Legal assistance .One of the earliest functions of trade unions was to look after members who hit hard times. Trade unions try to foster a spirit of cooperation and promote friendly industrial relations and diffuse education and culture among their members. get better treatment from employers. e. Besides. they undertake many welfare measures for their members. The aim of such activities is to ensure adequate wages. boycott. They also arrange for legal assistance to its members. in-door and out- . etc. these.. Financial discounts . library. insurance and loans from unions. (ii) Fraternal functions Militant Functions One set of activities performed by trade unions leads to the betterment of the position of their members in relation to their employment. gherao.People can get discounts on mortgages.As well as offering legal advice on employment issues. etc. wills and debt. school for the education of children. o o Functions of Trade unions Trade unions perform a number of functions in order to achieve the objectives. These functions can be broadly classified into three categories: (i) Militant functions.

work. A trade union can compel the management to formulate personnel policies that press for equality of treatment to the workers. These activities. Greater Bargaining Power The individual employee possesses very little bargaining power as compared to that of his employer. he can leave the job. Sense of Participation . which the unions raise by subscription from members and donations from outsiders. promotion. It is not practicable to continually resign from one job after another when he is dissatisfied. are highly subjective in nature. 3. illness. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers. injury. 2. Some trade unions even undertake publication of some magazine or journal. etc. Minimize Discrimination The decisions regarding pay. depend on the availability of funds. Thus. 4. unemployment. The better course for him is to join a union that can take concerted action against the employer. Thus. All the labor decisions of the management are under close scrutiny of the labor union.door games. This has the effect of minimizing favoritism and discrimination. etc. The personal relationships existing between the supervisor and each of his subordinates may influence the management. which may be called fraternal functions. If he is not satisfied with the wage and other conditions of employment. the fraternal functions of trade unions can be summed up as: y y y y y To take up welfare measures for improving the morale of workers To generate self confidence among workers To encourage sincerity and discipline among workers To provide opportunities for promotion and growth To protect women workers against discrimination Reasons For Joining Trade Unions The important forces that make the employees join a union are as follows: 1. and also on their competent and enlightened leadership. and other recreational facilities. there are chances of favoritisms and discriminations. This imposes a great financial and emotional burden upon the worker. The threat or actuality of a strike by a union is a powerful tool that often causes the employer to accept the demands of the workers for better conditions of employment. transfer. Sense of Security The employees may join the unions because of their belief that it is an effective way to secure adequate protection from various types of hazards and income insecurity such as accident.

Trade Unionism In India The trade unionism in India developed quite slowly as compared to the western nations. 5.The employees can participate in management of matters affecting their interests only if they join trade unions. They can also discuss their problem with¶ the trade union leaders. As a result. At times. Indian trade union movement can be divided into three phases. In addition. ideas. 7. ideas and opinions with others. opinions and complaints of the workers to the management. The collective voice of the workers is heard by the management and give due consideration while taking policy decisions by the management. Sense of Belongingness Many employees join a union because their co-workers are the members of the union. if he does not. the wages were also low and general economic conditions were poor in industries. They can influence the decisions that are taken as a result of collective bargaining between the union and the management. Platform for self expression The desire for self-expression is a fundamental human drive for most people. those who are members of a union feel that they gain respect in the eyes of their fellow workers. he often has a very difficult time at work. 6. Betterment of relationships Another reason for employees joining unions is that employees feel that unions can fulfill the important need for adequate machinery for proper maintenance of employer-employee relations. It can also transmit the feelings. All of us wish to share our feelings. These strikes taught workers to understand the power of united . During this period. On the other hand. an employee joins a union under group pressure. In order to regulate the working hours and other service conditions of the Indian textile laborers. the working and living conditions of the labor were poor and their working hours were long. Similarly the workers also want the management to listen to them. Many strikes took place in the two decades following 1880 in all industrial cities. The first phase (1850 to1900) During this phase the inception of trade unions took place. A trade union provides such a forum where the feelings. Capitalists were only interested in their productivity and profitability. employment of child labor was prohibited. The growth of trade union movement was slow in this phase and later on the Indian Factory Act of 1881 was amended in 1891. the Indian Factories Act was enacted in 1881. ideas and opinions of the workers could be discussed. Unions help in betterment of industrial relations among management and workers by solving the problems peacefully.

who constitute about 60 per cent of the workforce. For instance Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. All India Trade Union Congress (AITUC) . and 3. A strike was launched by these unions under the leadership of Mahatma Gandhi who turned it into a satyagrah. and 4. 3. The third phase began with the emergence of independent India (in 1947). These unions federated into industrial union known as Textile Labor Association in 1920. At present there are twelve Central Trade Union Organizations in India: 1. N N Joshi that became operative from 1927. 2. not included in the formal sector) which constitutes the rest 32 per cent of the workforce. The United Trade Union Congress The working class movement was also politicized along the lines of political parties. The second phase (1900 to 1946) This phase was characterized by the development of organized trade unions and political movements of the working class. many unions came into existence in the country. Organized sector. growing 2% annually. The partition of country affected the trade union movement particularly Bengal and Punjab. The urban informal sector (which includes the growing software industry and other services. supervisors and managers are also organized by the trade unions. Between 1918 and 1923. The Indian National Trade Union Congress. Trade unions in India The Indian workforce consists of 430 million workers.In 1920. The rural workers. Trade union law came up with the efforts of Mr. At Ahmedabad. the First National Trade union organization (The All India Trade Union Congress (AITUC)) was established.action even though there was no union in real terms. Insurance and Petroleum industries. All India Trade Union Federation (AITUF) was formed. occupational unions like spinners¶ unions and weavers¶ unions were formed. Many of the leaders of this organization were leaders of the national Movement. In 1926. four central trade union organizations were functioning in the country: 1. as for example in the Banking. The All India Trade Union Congress. under the guidance of Mahatma Gandhi. The AITUC is the trade union arm of the Communist Party of India. By 1949. white-collar employees. Small associations like Bombay MillHands Association came up by this time. The Indian labor markets consist of three sectors: 1. Besides workers. During 1928. which employs 8 per cent of workforce. 2. The Hindu Mazdoor Sangh.

Now. but now in sectors where it was not so.2. Employers opted for workforce reduction. are also facing pressures to follow decentralization. However. The changes can be summarized as follows: y Collective bargaining in India has mostly been decentralized. introduced policies of voluntary retirement schemes and flexibility in workplace also increased. Trade Unions Co-ordination Centre (TUCC) 11. the industrial relations policy began to change. These labor laws were protective in nature and covered a wide range of aspects of workplace industrial relations like laws on health and safety of labors. Indian Federation of Free Trade Unions (IFFTU) 7.g. Hind Mazdoor Kisan Panchayat (HMKP) 5. pharmaceuticals. Indian National Trade Union Congress (INTUC) 8. Hind Mazdoor Sabha (HMS) 6. the 40 year old policy of protectionism proved inadequate for 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. With the advent of liberalization in1992. Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition e. With the coming of globalization. Bharatiya Mazdoor Sangh (BMS) 3. these protectionist policies created an atmosphere that led to increased inefficiency in firms. The basic purpose of these laws was to protect labors. Centre of Indian Trade Unions (CITU) 4. Thus.Lenin Sarani (UTUC . over employment and inability to introduce efficacy. layoffs and retrenchment policies. United Trade Union Congress (UTUC) and 12.LS) Industrial Relation Policy Prior to 1991. the policy was tilted towards employers. industrial disputes and the like. globalization brought major changes in industrial relations policy in India. the industrial relations system in India sought to control conflicts and disputes through excessive labor legislations. in other industries where the demand for employment is increasing are experiencing employment growths y . National Front of Indian Trade Unions (NFITU) 9. United Trade Union Congress . On the other hand. National Labor Organization (NLO) 10.

especially in multi-national companies.g. HR policies and forms of work are emerging that include. Conduct problems arise from the employees who fail to follow the code of conduct of the organization. no outside affiliation. The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions. banking. negative effects on other employees and work groups may result. but they are the ones who cause the most disciplinary situations. The goal of discipline is behavior modification. Discipline on account of employees means complying with the predefined rules and regulations of the organization. These employees are most often affected by the disciplinary system of the organization. No organizations can grow and prosper without effective disciplinary system. y y y y y Employee Discipline The maintenance of harmonious industrial relations within an industry depends on the extent of promotion and maintenance of discipline in the organizations. tardiness. These new policies are difficult to implement in place of old practices as the institutional set up still needs to be changed.e. insubordination. Under pressure some unions and federations are putting up a united front e. especially banking and information technology. job rotation etc. that is. If employers fail to deal with problem employees. Some common disciplinary issues caused by problem employees include absenteeism. The problem employees comprise a small number of employees. multi-skills. alcoholism. misuse of equipments and other company resources. variable compensation. and negligence. productivity deficiencies. HRM is seen as a key component of business strategy.y y In the expansionary economy there is a clear shortage of managers and skilled labor. . It is a form of training that enforces organizational rules. Another trend is that the employers have started to push for internal unions i. Training and skill development is also receiving attention in a number of industries. to modify unacceptable behavior and misconduct. Such employees are often called problem employees. pilfering.

It specifies various obligations for the management and the workers with the objective of promoting cooperation between their representatives. Promote constructive criticism at all levels of management and employment. . there are two approaches to discipline employees. They are: y y Positive Discipline Approach Progressive Discipline Approach Code Of Discipline In Industry To maintain harmonious relations and promote industrial peace. To manage discipline among employees. a Code of Discipline has been laid down which applies to both public and private sector enterprises. every company opts for a discipline policy which describes the approach it will follow to handle misconduct. The basic objectives of Code of Discipline are to: Maintain peace and order in industry. Broadly defined. Misconduct and other offensive behaviors often lead to decreased levels of productivity as they affect the individual performance of the employees.The Disciplinary System Approaches to Discipline Handling employee misconduct is a very critical task to be performed by the senior managers.

These actions can b summarized as follows: Management and Union(s) agree y that no unilateral action should be taken in connection with any industrial matter and that should be settled at appropriate level that the existing machinery for settlement of disputes should be utilized with the utmost efficiency that there should be no strike or lock-out without prior notice that neither party will have recourse to coercion. Actions that disturb cordial relationships should be avoided. Employees should follow go slow tactics Acts of violations. intimidation and coercion should not be resorted The existing machinery for the settlement of disputes should be utilized. To ensure better discipline in industry. victimization or go ± slow tactics that they will avoid litigation. management and unions agree on not indulging into various actions. The Code is based on the following principles: y y y y y y There should be no strike or lockout without prior notice. that they will abide by various stages in the grievance procedure and take no arbitrary y . sit-down and stay-in strikes and lock-outs that they will promote constructive co-operation between their representatives at all levels and as between workers themselves y y y y y y that they will establish upon a mutually agreed grievance procedure which will ensure a speedy and full investigation leading to settlement.Avoid work stoppage in industry Secure the settlement of disputes and grievances by a mutually agreed procedure Avoiding litigations Facilitate a free growth of trade unions Eliminate all forms of coercion. intimidation. No unilateral action should be taken in connection with any industrial matter. intimidation and violations of rules and regulations governing industrial relations.

and Management Agrees y y not to increase work-loads unless agreed upon or settled otherwise not to support or encourage any unfair labor practice such as discrimination and victimization of any employee to take prompt action for settlement of grievances and implementation of settlements. it expects the employer to be an equal opportunity employer. 2. the expected behavior and the professional responsibilities. However the employers should reveal the various policies of the organization to their employees and make . agreements.action which would by-pass this procedure. Moreover. The code expects employees to conduct business with integrity and honesty. settlements and decisions y y Factors Guiding Code Of Conduct The code of discipline and conduct communicates to the employees. The significance of code of conduct is that each employee should behave and perform in a way that preserves the company values and commitments. awards. Honesty and integrity: The organization expects the employees to observe honesty and integrity and such conduct should be fair and transparent. damage to property and insubordination to take prompt action to implement awards. decision and orders to take appropriate disciplinary action against its officers and members in cases where enquiries reveal that they were responsible for precipitate action by workers leading to indiscipline y y Union agrees y y y not to engage in any form of physical duress not to permit demonstrations which are not peaceful that their members will not engage or cause other employees to engage in any union activity during working hours to discourage unfair labor practices such as negligence of duty. Disclosure of information: The employees should not disclose the company information to third parties and other outside organizations. The employees should show truthfulness in actions throughout their tenure in the organization. The Code of Conduct policy of a company is determined on the basis of following factors: 1.

Payment and gifts: The employees should neither accept nor offer any kind of illegal payments. 4. 10. remuneration and gifts from outsiders. donations. Confidentiality: Employees should protect company¶s confidential information. etc. time and other facilities. color. 5. a grievance may arise due to several factors such as: Violation of management¶s responsibility such as poor working conditions Violation of company¶s rules and regulations Violation of labor laws Violation of natural rules of justice such as unfair treatment in promotion. They are provided to them for business purposes and thus.them aware about the code of conduct and other policies. should be used in a cost effective way. no discrimination should be done on the basis of caste. gender. Harassment: The work environment should be free from all kinds of harassments. religion or physical disabilities. intellectual property. 7. . In an organization. 6. especially sexual harassments and verbal harassments. 8. A health and safety committee can be set up by the employer consisting of representatives of workers as well. race. Grievance In Industry Grievance means any type of dissatisfaction or discontentments arising out of factors related to an employee¶s job which he thinks are unfair. Misusing company resources: Employees should not misuse company resources. 3. Proper cleanliness and lightening should be provided. 9. Conflict of interest: An employee should not indulge into other professions or services or other interests which might conflict with the interest of the company. that is. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair. Health and safety: An employer should provide a safe and healthy work environment to its employees. unjust or inequitable. Outside employment: Employees should not indulge in to any kind of concurrent employment without the prior knowledge of employer. Equal opportunity employer: This factor expects the employer to be an equal opportunity. This means personal interests should not overshadow organizational interests. No physical harassments like hitting or pushing are acceptable on part of employees. The financial records and unpublished data should be kept within the organizations and should not be spread outside the organization.

A complaint is an indication of employee dissatisfaction that has not been submitted in written. Therefore.Various sources of grievance may be categorized under three heads: (i) management policies. Grievance resulting from working conditions include: o o o o Poor safety and bad physical conditions Unavailability of tools and proper machinery Negative approach to discipline Unrealistic targets 3. a grievance is a complaint that has been put in writing and made formal. Grievance resulting from management policies include: o o o o o o o Wage rates Leave policy Overtime Lack of career planning Role conflicts Lack of regard for collective agreement Disparity between skill of worker and job responsibility 2. Without a grievance procedure. (ii) working conditions. because both may be important indicators of potential problems within the workforce. Grievance Procedure . Therefore. a formal grievance procedure is a valuable communication tool for the organization. management should be concerned with both complaints and grievances. Grievance resulting from inter-personal factors include o o o o Poor relationships with team members Autocratic leadership style of superiors Poor relations with seniors Conflicts with peers and colleagues It is necessary to distinguish a complaint from grievance. On the other hand. Grievances are symptoms of conflicts in industry. and (iii) personal factors 1. management may be unable to respond to employee concerns since managers are unaware of them.

The departmental head discusses the problem with joint grievance committees to find a solution. Open door policy 2. STEP 2: If the departmental representative fails to provide a solution. in bigger organizations. If the chief executive also fails to redress the grievance. The Grievance Committee makes its . GRIEVANCE PROCEDURE IN INDIAN INDUSTRY The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established grievance procedure for the country which would be acceptable to unions as well as to management. The Model Grievance Procedure specifies the details of all the steps that are to be followed while redressing grievances. the aggrieved employee has to follow a step by step procedure for getting his grievance redressed. He has to give his answer within 48 hours. the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. then he discusses his grievance with the departmental head. it is believed that open door policy is suitable for executives. Moreover. STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head. who has to give his decision within 3 days. These steps are: STEP 1: In the first step the grievance is to be submitted to departmental representative. whenever an employee is confronted with a grievance. if the committee also fails to redress the grievance.Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance. then it may be referred to chief executive. then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties. a model for grievance procedure was drawn up. This model helps in creation of grievance machinery. Step-ladder policy Open door policy: Under this policy. However. However. he presents his problem to his immediate supervisor. who is a representative of management. Step ladder policy: Under this policy. The grievance procedures differ from organization to organization. top management executives are usually busy with other concerned matters of the company. If the employee is not satisfied with superior¶s decision. workers¶ representatives are to be elected for a department or their union is to nominate them. According to it. he can take the grievance to Grievance Committee. Management has to specify the persons in each department who are to be approached first and the departmental heads who are supposed to be approached in the second step. 1. In the 16th session of Indian Labor Conference. operational employees may feel shy to go to top management. the aggrieved employee can take his grievance to head of the department. Such a policy works well only in small organizations. In this procedure.

An appeal for revision of final decision can be made by the worker if he is not satisfied with it. but also emotional and mental well being. It will include the risk of accidents caused due to machinery. It not only includes physical well being. the employer has to ensure safety and security of his employees. safety and security are closely related to each other. Health is the general state of well being. Employee Health and Safety For smooth functioning of an organization. Safety refers to the act of protecting the physical well being of an employee. The terms health. Security refers to protecting facilities and equipments from unauthorized access and protecting employees while they are on work. The final decision of the management on the report of Grievance Committee must be communicated to the aggrieved employee within three days of the receipt of report. STEP 4: If the grievance still remains unsettled. . the case may be referred to voluntary arbitration. A work environment should enhance the well being of employees and thus should be accident free. Health and safety form an integral part of work environment. The management must communicate its decision to the worker within 7 days.recommendations to the manager within 7 days in the form of a report. fire or diseases.

Responsibilities of managers: y y y y Monitor health and safety of employees Coach employees to be safety conscious Investigate accidents Communicate about safety policy to employees Responsibilities of supervisors/departmental heads: y y y y y Provide technical training regarding prevention of accidents Coordinate health and safety programs Train employees on handling facilities an equipments Develop safety reporting systems Maintaining safe working conditions Legislations governing Occupational Health & safety in India Factories Act(1948).In organizations the responsibility of employee health and safety falls on the supervisors or HR manager. security and safety of employees: . 1948 ‡ It provides the following provisions for maintaining health. Mines Act(1952) & Dock Workers Act(1986) Factories Act There are three major legislations elating to occupational health and safety in India. The supervisors and departmental heads are responsible for maintaining safe working conditions. etc. mines and ports. An HR manager can help in coordinating safety programs. conduct formal safety training. making employees aware about the health and safety policy of the company. They are related to the health and safety of persons employed in factories. The Factories Act.

For Health Ventilation & Temperature Cleanliness Artificial Humidification Lightening Latrines and urinals Disposal of wastes Dust and fumes Overcrowding Drinking water Spittoons For Safety Fencing of machinery Cashing of new machines Hoists and lifts Excessive weights Precautions against dangerous fumes Precautions in case of fire Safety of buildings & machinery Work on machinery in motion Protection of eyes Self acting machinery Pressure plant Floors. 1952 y It contains provisions for measures relating to the health. stairs and means of access Explosives of inflammable gas Maintenance of buildings For Welfare Washing facilities First aid appliances Rest rooms and shelters Facilities for storing and drying clothing Facilities for sitting Canteens Crèches Mines Act. safety and welfare of persons employed in the coal and oil mines. .

safety and welfare of workers working in ports/docks. creation of industrial harmony through infrastructure for health. industrial relationsand insurance against disease. 1986 y It contains provisions for the health. It provides the following provisions: Surfaces Passages to be kept clear Staging construction and maintenance Lifesaving appliances Fire protection Access between deck and hold Floor loading Access between deck and vessel Fencing of dangerous places Railings and fencings Work on staging Illumination Excessive noise Stairs Construction Access between shore and ship y Employee Welfare Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages.y It provides the following provisions for health and safety of mine workers: Drinking water Medical appliances Notice about accidents Conservancy Working hours Notice of certain diseases Dock Workers (Safety. Employee welfare includes monitoring of working conditions. . Health & Welfare) Act. accident and unemployment for the workers and their families. Labor welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries. The welfare measures need not be in monetary terms only but in any kind/forms. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration.

Workers take active interest in their jobs and work with a feeling of involvement and participation. To provide better life and health to the workers 2. To make the workers happy and satisfied 3. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. cultural and material conditions of living of the workers. economic betterment and social status. 4. loyal and satisfied labor force for the organization. government.Labor welfare has the following objectives: 1. and education and recreation facilities for workers¶ families help in raising their standards of living. The important benefits of welfare measures can be summarized as follows: y They provide better physical and mental health to workers and thus promote a healthy work environment Facilities like housing schemes. 5. To relieve workers from industrial fatigue and to improve intellectual. efficiency. New welfare measures are added to the existing ones from time to time. medical benefits. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. Welfare measures may be introduced by the employers. The basic features of labor welfare measures are as follows: 1. The social evils prevalent among the labors such as substance abuse. y y y y Labor Welfare Fund . Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining 3. This makes workers to pay more attention towards work and thus increases their productivity. 2. healthy. The very logic behind providing welfare schemes is to create efficient. etc are reduced to a greater extent by the welfare policies. Labor welfare includes various facilities. The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce. services and amenities provided to workers for improving their health. Labor welfare schemes are flexible and ever-changing. Employers get stable labor force by providing welfare facilities. employees or by any social or charitable agency.

The purpose of these welfare funds is to provide housing. export of mica. The five legislations governing welfare funds are as follows: y y y The Mica Mines Labor Welfare Fund Act. educational and recreational facilities to workers employed in beedi industry and non-coal mines and cine workers. 1976 The Cine Workers¶ Welfare Fund Act. manganese ore & chrome ore. feature films. Majority of labor force in India is working in unorganized sector. provide social security and raise their standard of living. are administered by Ministry of Labor. which are governed by different legislations.Labor welfare refers to all the facilities provided to labor in order to improve their working conditions. Five different welfare funds. An explanation of the cess levied under different legislations is given below: . In order to provide social security to such workers. Government has introduced Labor Welfare Fund to ensure assistance to unorganized labors. 1981 y Schemes under welfare funds provide assistance with respective to the following: y y y y y y y y y Public health and sanitation Housing Recreational (including standard of living) Social security Educational facilities Water supply Transportation Medical facilities (prevention of diseases) Social security o o Group Insurance Schemes for Beedi and Cine workers Social Security under Mine Workers Welfare Fund y Family welfare The welfare funds are raised by government by imposing cess on manufactured beedis. 1946 The Limestone and Dolomite Mines Labor Welfare Fund Act. consumption of limestone & dolomite and consumption and export of iron ore. 1972 The Iron Ore. Manganese Ore and Chrome Ore Mines Labor Welfare Fund Act. medical care.

to Rs.to Rs. These include provisions provided in industrial acts like Factories Act 1948. This is presently Rs 2 per 1000 beedis with effect from 28th June 2000. provides for levy and collection of cess on all mica exported as duty of Customs not exceeding 6. Dock Workers Act (safety. Mines Act 1962. 1972 provides for the levy and collection of cess on Limestone and Dolomite as a duty of excise at such rate not exceeding one rupee per metric tone of limestone & dolomite. This is Rs 20000 per feature film of Hindi and English and for regional films it is Rs 10000 per film with effect from 20th April 2000. Drinking Water: At all the working places safe hygienic drinking water should . Central Board of Film Certification.y Beedi Workers Welfare Cess Act. on every feature film submitted to the Chairman.6/. The employee welfare schemes can be classified into two categories viz.1/.to Rs. at such rate not being less than one thousand rupees and not exceeding twenty thousand rupees. This is 4. Re. The Limestone and Mines Labor Welfare Fund Act.5/. The Iron Ore. 1946.with effect from 27th December 2000. health and welfare) 1986. 1976 provides for levy and collection of cess on Iron Ore.3/. Manganese Ore & Chrome Ore Mines Labor Welfare Cess Act. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety.per thousand manufactured beedis. statutory and non-statutory welfare schemes. The non statutory schemes differ from organization to organization and from industry to industry. 1981 provides for duty of cess. Manganese Ore & Chrome Ore between 50p to Re. y y y y Employee Welfare Schemes Organizations provide welfare facilities to their employees to keep their motivation levels high.1/. The rate of cess on Limestone and Dolomite is Re. 1976 provides for levy of cess by way of excise duty on manufactured beedis from Re.and Rs.6/respectively. Mica Mines Labor Welfare Fund Act. STATUTORY WELFARE SCHEMES The statutory welfare schemes include the following provisions: 1.1/-.25% ad valorem.1/. The Cine Workers Welfare Cess Act.5% ad valorem on export with effect from 1st November 1990.

etc. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. . toilets. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply. 2. 5. wash basins. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition. suitable seating arrangements are to be provided. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up 2. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee. 8. 7. Washing places: Adequate washing places such as bathrooms. such as ware houses. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs 3. 9. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition. Spittoons: In every work place. NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following schemes: 1. Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters. 10. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. 3. wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places. 4. especially factories. Facilities for sitting: In every organization. Adequate lockers are also provided to the workers to keep their clothes and belongings. bathrooms. store places.be provided. 6.

usually a trade union. psychological and social consequences may also arise. It also leads to a fall in sales and the rate of turnover. over pay and other working conditions and can result in industrial actions. Maternity & Adoption Leave ± Employees can avail maternity or adoption leaves. both the parties. or between workmen and which is connected with the employment or non-employment or the terms of employment or with the conditions of labor. This definition includes all the aspects of a dispute. not only includes the disagreement between employees and employers. of any person. . guidelines are provided for proper action and also for protecting the aggrieved employee. This results in increase in the average cost of production since fixed expenses continue to be incurred. alienation of the labor force. 6. picketing or gheraos. Paternity leave policies have also been introduced by various companies. disease or injury or pregnancy. leading to a fall in profits.1947. an industrial dispute resulting in stoppage of work means a stoppage of production. Apart from the immediate economic effects. but also emphasizes the difference of opinion between worker and worker. try to pressurize each other. As per Section 2(k) of Industrial Disputes Act. an industrial dispute in defined as any dispute or difference between employers and employers. It. Harassment Policy: To protect an employee from harassments of any kind. 7. It is a disagreement between an employer and employees' representative. The management may resort to lockouts while the workers may resort to strikes. From the point of view of the employer. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization. The disputes generally arise on account of poor wage structure or poor working conditions. that is the management and the workmen. Industrial Disputes An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment. It must be connected with employment or non-employment or with the conditions of labor. loss of prestige and credit. This disagreement or difference could be on any matter concerning the workers individually or collectively. When an industrial dispute occurs. and other non-economic. 5. The employer may also be liable to compensate his customers with whom he may have contracted for regular supply.4. or between employers and workmen.

For the employee. allowances. Wages and allowances: Since the cost of living index is increasing. and great hardship may be caused to the worker and his family. workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. political factors. Causes Of Industrial Disputes The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes.Loss due to destruction of property. unjust layoffs and retrenchments. indiscipline etc. or the threat of reprisal action by employers also exists. sympathetic strikes. 21. bonus. The non economic factors will include victimization of workers. They cause wastage of national resources. Employees also suffer from personal injury if they indulge into strikes n picketing. Hatred may be generated resulting in political unrest and disrupting amicable social/industrial relations or community attitudes. personal injury and physical intimidation or inconvenience also arises. In 2002. leave and holidays without pay. The regular income by way of wages and allowance ceases. and the psychological and physical consequences of forced idleness. The threat of loss of employment in case of failure to settle the dispute advantageously. and conditions for work. working hours. The economic causes will include issues relating to compensation like wages.4% of disputes were caused by demand . Prolonged stoppages of work have also an adverse effect on the national productivity. national income. an industrial dispute entails loss of income. ill treatment by staff members.

5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003.4% respectively. 29.9% of disputes were caused because of indiscipline. This percentage was 20. During the year 2003.5% and 3. 40.9% in 2003. disputes caused by personnel were 14. .of higher wages and allowances. indiscipline accounted for the highest percentage (36.8% of disputes. 0. it is evident that the number of disputes caused by indiscipline has shown an increasing trend.2% of the disputes were caused by personnel. and only 0. During 2004. Similarly in 2004 and 2005. Miscellaneous: The miscellaneous factors include Inter/Intra Union Rivalry Charter of Demands Work Load Standing orders/rules/service conditions/safety measures Non-implementation of agreements and awards etc.6% in 2004 and 2005 respectively. only 0. A similar trend was observed in 2004 where indiscipline accounted for 40.6% of the disputes were caused by personnel. followed by cause-groups wage and allowance and personnel with 20. which rose up to 36. In 2005.4% and 0. In 2003. wherein 11.4% and 41. Indiscipline and violence: From the given table. 6. During the year 2002. only 9. In year 2005.6% of disputes were caused by retrenchment and layoffs.4% and11.4% during 2003 and during 2004 increased up to 26.4% of disputes.2% and 0. wages and allowances accounted for 21. while 2. Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002.4% of the disputes were because of leaves and working hours. Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.4% were caused by retrenchment.1% while those caused by retrenchment and layoffs were 2. a similar trend could be seen.9%) of the total time-loss of all disputes.2%.6% of disputes were caused due to indiscipline respectively.2% respectively. In 2002. Bonus: Bonus has always been an important factor in industrial disputes.

In a strike. or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment.Strikes A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. This definition throws light on a few aspects of a strike. Demands made by strikers can range from asking for higher wages or better benefits to seeking changes in the workplace environment. they are said to be on strike. According to Industrial Disputes Act 1947. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems. a group of workers agree to stop working to protest against something they think is unfair where they work. Provident fund and gratuity Retrenchment of workmen and closure of establishment . It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. profit sharing. Causes of strikes: Strikes can occur because of the following reasons: y y y y y y y y y Dissatisfaction with company policy Salary and incentive problems Increment not up to the mark Wrongful discharge or dismissal of workmen Withdrawal of any concession or privilege Hours of work and rest intervals Leaves with wages and holidays Bonus. Secondly. Firstly. or a refusal under a common understanding of any number of such persons to continue to work or to accept employment´. a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Labors withhold their services in order to pressurize their employment or government to meet their demands. a strike is ³a cessation of work by a body of persons employed in an industry acting in combination. When workers collectively cease to work in a particular industry. it also includes the refusal of a number of employees to continue work under their employer.

Such a strike is also known as 'pen down' or 'tool down' strike. They don¶t break any rules. They keep control over production facilities. workers do not absent themselves from their place of work when they are on strike. They also refuse to leave. However. but they refuse to work. rather than on any one employer. Slow Down Strike: Employees remain on their jobs under this type of strike. It may also be an extension of the sympathetic strike to express generalized protest by the workers. allowances like traveling allowance. Sympathetic Strike: When workers of one unit or industry go on strike in sympathy with workers of another unit or industry who are already on strike. But do not work. 4. bonus and other facilities such as increase in privilege leave and casual leave. Sit down Strike: In this case. General Strike: It means a strike by members of all or most of the unions in a region or an industry. Sick-out (or sick-in): In this strike. In these kinds of strikes. 3. Workers show up to their place of employment. workers ask for increase in wages. In June 1998. house rent allowance. They do not stop work. In 2004. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions. 6. dearness allowance. Economic Strike: Under this type of strike. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike. 2.y Dispute connected with minimum wages TYPES OF STRIKE 1. a significant number . labors stop their work to enforce their economic demands such as wages and bonus. it is called a sympathetic strike. They adopt go-slow tactics to put pressure on the employers. 5. which makes it very difficult for employer to defy the union and take the workers' places. but restrict the rate of output in an organized manner. all or a significant number of union members call in sick on the same day. all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the non-acceptance of their demands by the state government. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. 7. These strikes are usually intended to create political pressure on the ruling government. the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike. because they just use their sick leave that was allotted to them on the same day.

The workers may gherao the members of the . PICKETING When workers are dissuaded from work by stationing certain men at the factory gates. Acc to Industrial Disputes Act 1947. This is different from a strike. Thus. such a step is known as picketing. a lockout is employers¶ weapon while a strike is raised on part of employees.of advocated went on wildcat strike at the City Civil Court premises in Bangalore. A lockout may happen for several reasons. if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive. the employer may declare a lockout until the workers end the strike. lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him. For example. Pickets are workers who are on strike that stand at the entrance to their workplace. The purpose of picketing is: y y y to stop or persuade workers not to go to work to tell the public about the strike to persuade workers to take their union's side GHERAO Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. They were protesting against some remarks allegedly made against them by an Assistant Commissioner Lockouts A lockout is a work stoppage in which an employer prevents employees from working. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement. When only part of a trade union votes to strike. in which employees refuse to work. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work. it is perfectly legal. If picketing does not involve any violence. It is declared by employers to put pressure on their workers.

If a strike or lockout has already taken place and is being referred to a Board.management by blocking their exits and forcing them to stay inside their cabins. Prohibition of Strikes and Lock-Outs Employees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947. According to Section 25 of Industrial Disputes Act 1947. The employer is supposed to report the number of notices of strikes received by him to the appropriate Government or the authority prescribed by the government within the five days of receiving such notices. Illegal Strikes and Lock-Outs A strike or a lock-out is illegal if it is declared in noncompliance with the section 22 (as defined above) of Industrial Disputes Act 1947. Any person who knowingly provides such a help in support of any illegal strike or lock-out is punishable with imprisonment for a term which may extend to six months. if the notice period is not served or if the strike is held within the fourteen days of issuing the notice of strike. a notice should be issued on the day on which the lockout is declared just to intimate the appropriate authorities about the lockout. The same rule applies to the employers. a lockout declared in consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal. the continuance of such a strike or lock out is not illegal provided it is in compliance with the provisions of act. The notice of strike or lockout is not necessary when there is already a strike or lockout going on in the company. that is. or with both. They can not go on strike either within fourteen days of providing the strike notice or before the expiry of the date of strike specified in any such notice. Employees. cannot go on a strike without giving a notice of strike within the six weeks before striking. or with fine which may extend to one thousand rupees. In similar way. . Penalty for Illegal Strikes and Lock-outs A workman who is involved in an illegal strike can be penalized with imprisonment for a term extendable to a month or with a fine or fifty rupees or both. Moreover. However. no person should provide any sort of financial aid to any illegal strike or lock-out. Moreover. the notice of strike or lockout is to be given in a prescribed manner showing the number of persons involved in the strike/lockout. The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent. an employer who initiates and continues a lockout is punishable with imprisonment extendable to a month or with a fine of one thousand rupees or both. who are working in a public utility service. Employers who are carrying on a public utility service can not lockout any of their employees without giving them a prior notice within six weeks before the lock out or within the fourteen days of giving such a notice.

there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude. If the agreements are not implemented then both the union and management stop trusting each other. Mutual Trust: Both management and labor should help in the development of an atmosphere of mutual cooperation. In any organization. This will improve communication between managers and workers.´ The management should be willing to co-operate rather than blackmail the workers. efforts should be made at both ends to ensure the follow up of the agreements. it may foster union militancy as the union reacts by engaging in pressure tactics. Management should adopt a progressive outlook and should recognize the rights of workers. To avoid this. labor unions should persuade their members to work for the common objectives of the organization. Mutual Accommodation.Measures For Improving Industrial Relations The following measures should be taken to achieve good industrial relations: Strong and Stable Union: A strong and stable union in each industrial enterprise is essential for good industrial relations. Similarly. The employers must recognize the right of collective bargaining of the trade unions. there must be strong and stable unions in every enterprise to represent the majority of workers and negotiate with the management about the terms and conditions of service. confidence and respect. The management should sincerely implement the settlements reached with the trade unions. The agreement with such a union will hardly be honored by a large section of workforce. The policies should be: o y y y Formulated in consultation with the workers and their representatives if . The agreements between the management and the unions should be enforced both in letter and spirit. increase productivity and lead to greater effectiveness. Sound Personnel Policies: The following points should be noted regarding the personnel policies. One must clearly understand that conflicting attitude does not lead to amicable labor relations. The employers can easily ignore a weak union on the plea that it hardly represents the workers. y Workers¶ Participation in Management: The participation of workers in the management of the industrial unit should be encouraged by making effective use of works committees. An environment of uncertainty is created. joint consultation and other methods. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes. Therefore. The approach must be of mutual ³give and take rather than ³take or leave. Sincere Implementation of Agreements.

y Government¶s Role: The Government should play an active role for promoting industrial peace. Implementation of the policies should be uniform throughout the organization to ensure fair treatment to each worker. the consumers and the nation. o o Clearly stated so that there is no confusion in the mind of anybody. This will restore industrial harmony. y . Progressive Outlook: There should be progressive outlook of the management of each industrial enterprise. The management must recognize the rights of workers to organize unions to protect their economic and social interests.they are to be implemented effectively. the employees. It should make law for the compulsory recognition of a representative union in each industrial unit. It should intervene to settle disputes if the management and the workers are unable to settle their disputes. It should be conscious of its obligations and responsibilities to the owners of the business.

manual or the documentation of OHS management system is to be submitted along with the application.Occupational Health & Safety Management System The Bureau of Indian Standards has formulated a standard for Occupational health and safety management systems. Any OHS management system adopted by an organization should incorporate all the requirements specified in this standard. Process of OH&S Management System certification . initial certification audit takes place on the basis of which an audit report is prepared by the audit team. The application has to be signed by the Chief Executive Officer of the organization or any person who has been assigned by the CEO for this purpose. it is accepted. Organizations willing to adopt OH&S Management System have to obtain a license for the same. This standard is known as IS 18001:2000 Occupational Health and Safety Management System. otherwise more information is sought from the applicant organization. Also. Immediately after this. If the report comes out to be satisfactory. they have to ensure that they are operating according to the IS 18001:2000 standard. the applicant organization is asked to take corrective actions after which another audit is conducted. If the application is complete. The organization has to apply at the nearest Regional Office of Bureau of Indian Standards in the prescribed proforma along with a questionnaire and application fee. recommendations for the award of certifications are made by the team and the certificate is granted to the organization by the concerned authorities. an adequacy audit takes place and a preliminary visit (pre-audit) is conducted by an audit team. it is scrutinized for all the requirements. If the application is accepted. However if the report does not meet all the requirements. Once an application is received by the regional office of BIS. For this purpose.

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or between employers and employers. . using the collective power of its members. The dominant interest with which a union is concerned is. Trade unions are voluntary associations formed for the pursuit of protecting the common interests of its members and also promote welfare. a union is there to represent the interests of its members. They protect the economic. whose aim is to negotiate with employers over pay. Here. and includes any federation of two or more trade unions. They persist throughout the year. primarily. however. and employers and employers.A trade union is an organization of employees formed on a continuous basis for the purpose of securing diverse range of benefits. It is an association either of employers or employees or of independent workers. Indian paper mill association. This means it applies to temporary workers (or contractual employees) as well. Features of trade unions: 1. In general. Then this definition. political and socialof its members.) General labor unions Friendly societies Unions of intellectual labor (eg. a trade union can be seen as a group of employees in a particular sector. All India Teachers Association) o o o 2. 3. It is a permanent body and not a casual or temporary one. etc. workmen and employers. and may even engage in political activity where legislation affects their members. They may consist of :o Employers¶ association (eg. working hours. job security. It is formed on a continuous basis. It is formed to protect and promote all kinds of interests ±economic. This definition is very exhaustive as it includes associations of both the workers and employers and the federations of their associations.. the relationships that have been talked about are both temporary and permanent. whether temporary or permanent. political and social interests of their members. Employer¶s Federation of India. They are the relationships between the: y y y workmen and workmen. etc. or for imposing restrictive condition on the conduct of any trade or business. formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen. The Trade Union Act 1926 defines a trade union as a combination. Thus. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives. talks about three relationships.

the character of trade unions has also been changing. 4. moreover. the trade unions are also working towards raising the status of labors as a part of industry. Trade unions have shown remarkable progress since their inception. It achieves its objectives through collective action and group effort.economic. 5. . In spite of only focusing on the economic benefits of workers. Negotiations and collective bargaining are the tools for accomplishing objectives.

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