INDUSTRIAL RELATIONS: 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 Industrial Relations comprises of two terms: Industry and Relations . Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged . By relations we mean the 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. 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: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. As per Industrial Disputes Act 1947 an employer means: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; Employee: 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 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. o those employed for wages by or through an immediate employer in the premises of the factory or establishment in connection with the work thereof o 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. o 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). 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.

Industrial Relations 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 participants- labor 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 Relation System 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 3. Standing orders 4. Workers participation in management 5. Unfair labor practices Importance of Industrial Relations The healthy industrial relations are key to the progress and success. Their significance may be discussed as under Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption

Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes. 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. Strikes, lockouts, go-slow tactics, gherao and grievances are

some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. 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. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer s authority. It will naturally have impact on production because they recognize the interest of each other. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor. 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. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well.

To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.

viewed as one happy family. thus working together. This helps in empowering individuals in their roles and emphasizes team work.Realistic managers should accept conflict to occur. Individuals should be business process improvement oriented. 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. 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. The personal objectives of every individual employed in the business should be discussed with them and integrated with the organization s needs. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. Reward systems should be so designed as to foster to secure loyalty and commitment. interests and purposes. Pluralistic-Perspective In pluralism the organization is perceived as being made up of powerful and divergent sub-groups management and trade unions. towards the shared mutual goals. The organization's wider objectives should be properly communicated and discussed with staff. From employer point of view. discretion in problem-solving. If a union is recognized. multiskilled and ready to tackle with efficiency whatever tasks are required. unitary approach means that: Working practices should be flexible. Trade unions are deemed as legitimate representatives of employees. innovation. its role is that of a further means of communication between groups of staff and the company. Unitary Perspective In unitarism. quality and improvement groups etc. . Furthermore. Consequently. A core assumption of unitary approach is that management and staff. The emphasis is on good relationships and sound terms and conditions of employment. inadequate presentation of management's policies.are seen as arising from lack of information.from the perspective of the unitary framework . hand-in-hand. and all members of the organization share the same objectives. From employee point of view. Employees should feel that the skills and expertise of managers supports their endeavors. inspire and motivate employees. creativity. the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination.To improve the economic conditions of workers in the existing state of industrial managements and political government. There is a greater propensity for conflict rather than harmony. the organization is perceived as an integrated and harmonious system. unitarism has a paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as unnecessary and conflict is perceived as disruptive. Staff-management conflicts . Employee participation in workplace decisions is enabled. unitary approach means that: Staffing policies should try to unify effort. Line managers should take ownership of their team/staffing responsibilities.

In general. Here. Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident. For example. This type of bargaining is also known as cooperative bargaining. In distributive bargaining. it tends to be more cooperative than distributive bargaining. 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. so there is enough for both of them to have as much as they want. The implications of this approach include: 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. Under it. or at least neither party loses. This type of bargaining is alsoknown as conjunctive bargaining Integrative bargaining: This involves negotiation of an issue on which both the parties may gain. Distributive bargaining: It involves haggling over the distribution of surplus. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Union recognition should be encouraged and union representatives given scope to carry out their representative duties Comprehensive collective agreements should be negotiated with unions Marxist Perspective view of industrial relations is a by product of a theory of capitalist society and social change. Independent external arbitrators should be used to assist in the resolution of disputes. one party s gain is another party s loss. the economic issues like wages. Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust. representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. In general. This perspective focuses on the fundamental division of interest between capital and labor. Bargaining Form And Tactics A collective bargaining process generally consists of four types of activities. This is most commonly explained in terms of a pie. Capitalism would foster monopolies.They should anticipate and resolve this by securing agreed procedures for settling disputes. or they can focus on cutting the pie up. Disputants can work together to make the pie bigger. distributive bargaining tends to be more competitive. and sees workplace relations against this background. salaries and bonus are discussed. Marx argued that: Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism. friendliness or hostility between labor . trying to get as much as they can for themselves. attitudinal restructuring and intra-organizational bargaining. both the parties are trying to make more of something. integrative bargaining. Wages (costs to the capitalist) would be minimized to a subsistence level.distributive bargaining.

Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. It uses cooperation and consensus for settling disputes rather than conflict and confrontation. each party needs something that the other party has. there may be differences. Within the management also. This means there are always two parties involved in the process of collective bargaining. attitudinal restructuring is required to maintain smooth and harmonious industrial relations. compromise or mutual give and take in collective bargaining. sit together to negotiate terms of employment.and management. It develops a bargaining environment and creates trust and cooperation among the parties.e. Mutual trust and understanding serve as the by products of harmonious relations between the two parties. wherein one group. Often employees are represented in the bargaining by a union or other labor organization. and the other. Collective bargaining is a complementary process i. Collective Bargaining is continuous process. Collective bargaining takes into account day to day changes. Even within the union. It enables industrial democracy to be effective. When there is a backlog of bitterness between both the parties. It a bipartite process. there may be differences between groups.e. Intra-organizational bargaining: It generally aims at resolving internal conflicts. Moreover. Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other. Collective Bargaining Process Collective bargaining generally includes negotiations between the two parties (employees representatives and employer s representatives). The result of collective bargaining procedure is called the . The negotiations generally take place between the employees and the management. policies. there is considerable scope for discussion. It begins with the presentation of the charter of demands and ends with reaching an agreement. Negotiations form an important aspect of the process of collective bargaining i. Trade unions maneuver to achieve consensus among the conflicting groups Characteristics Of Collective Bargaining It is a group process. For example. which would serve as the basic law governing labor management relations over a period of time in an enterprise. representing the employees. This is a type of maneuvering to achieve consensus with the workers and management. capacities and interests. potentialities. organizational and workplace levels Collective bargaining is a process in the sense that it consists of a number of steps.. It is a political activity frequently undertaken by professional negotiators. skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. It is a form of participation. labor can increase productivity and management can pay better for their efforts. representing the employers. 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. it is flexible process and not fixed or static.

that is. A process well begun is half done and this is no less true in case of collective bargaining. 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. this phase could be described as brainstorming . Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes This will normally include procedures in respect of individual grievances. a recognized way of creating a system of industrial jurisprudence. 4. 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 negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. Importance to employees Collective bargaining develops a sense of self respect and responsibility among the employees. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached. 2. overtime premiums. It establishes rules which define and restrict the traditional authority exercised by the management. Discuss: Here. 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. working conditions. A correct understanding of the main issues to be covered and intimate knowledge of operations. This stage comprises the time when what ifs and supposals are set forth and the drafting of agreements take place. the parties decide the ground rules that will guide the negotiations. 3. It increases the strength of the workforce. Thus. Settlement: Once the parties are through with the bargaining process. In a word. The collective bargaining process comprises of five core steps: 1. hours of work. It restricts management s freedom for arbitrary action against the employees. the management should be conducted by rules rather than arbitrary decision making. A substantive agreement deals with specific issues. production norms and other relevant conditions is required. Importance Of Collective Bargaining Collective bargaining includes not only negotiations between the employers and unions but also includes the process of resolving labor-management conflicts. a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. increasing their bargaining capacity as a group. thereby. collective bargaining is. essentially. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. bonus arrangements. holiday entitlements.collective bargaining agreement (CBA). In many companies. Prepare: This phase involves composition of a negotiation team. strategic planning and negotiated change. Collective bargaining increases the morale and productivity of employees. It acts as a method of introducing civil rights in the industry. The first thing to be done is to determine whether there is actually any reason to negotiate at all. disputes and discipline. This stage is described as consisting of effective joint implementation of the agreement through shared visions. such as basic pay. etc. unilateral actions by . Moreover. Frequently. The exchange of messages takes place and opinion of both the parties is sought. Collective agreements may be in the form of procedural agreements or substantive agreements. 5. Bargain: negotiations are easy if a problem solving attitude is adopted.

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. central employer associations and government agencies. It aims at providing a floor for lowerlevel bargaining on the terms of employment. Sector or industry level 3. It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Importance to society 1. 2. it emphasizes the point that bargaining levels need not be mutually exclusive. National level 2. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. Company/enterprise level Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation between union confederations. 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. Levels of Collective Bargaining Collective bargaining operates at three levels: 1. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. The discrimination and exploitation of workers is constantly being checked. which aims at the standardization of the terms of employment in one industry. 3. It helps in securing a prompt and fair settlement of grievances. includes a range ofbargaining patterns. 4. 3. Importance to employers 1. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them. Collective bargaining leads to industrial peace in the country 2. As a supplementary type of bargaining. 4.the employer are also discouraged. Collective bargaining plays a vital role in settling and preventing industrial disputes. The third bargaining level involves the company and/or establishment. often taking into account macroeconomic goals. . as a result of which the chances for conflicts are reduced. Effective collective bargaining machinery strengthens the trade unions movement. Sectoral bargaining. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making.

These policies directly affect workers. discuss with management.One of the earliest functions of trade unions was to look after members who hit hard times. the issues which affect people working in an organization. Trade unions are formed to achieve the following objectives: Representation Trade unions represent individual workers when they have a problem at work. like housing. These functions can be broadly classified into three categories: (i) Militant functions. some unions give help with personal matters. promotion and transfer. holidays and changes to working practices are the sorts of issues that are negotiated. wills and debt. unions are said to be recognized for collective bargaining purposes. working hours. So.As well as offering legal advice on employment issues. o Legal assistance . There may be a difference of opinion between management and union members. retrenchment. Trade unions negotiate with the employers to find out a solution to these differences.People can get discounts on mortgages. Pay. 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. These include: o Education and training . In these organizations. Some of the older unions offer financial help to their members when they are sick or unemployed Functions Of Trade Unions Trade unions perform a number of functions in order to achieve the objectives. Negotiation Negotiation is where union representatives. If an employee feels he is being unfairly treated. insurance and loans from unions.Objectives Of Trade Unions Trade unions are formed to protect and promote the interests of their members. The evaluation criteria for such decisions may not be fair. o Financial discounts . Their primary function is to protect the interests of workers against discrimination and unfair labor practices. he can ask /the union representative to help sort out the difficulty with the manager or employer. 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. (ii) Fraternal functions . Unions also offer their members legal representation. o Welfare benefits .Most unions run training courses for their members on employment rights. trade unions have increased the range of services they offer their members. Member services During the last few years. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications. Voice in decisions affecting workers The economic security of employees is determined not only by the level of wages and duration of their employment. 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. but also by the management s personal policies which include selection of employees for lay offs. health and safety and other issues.

by inculcating discipline among the workforce .. the fraternal functions of trade unions can be summed up as: 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 Importance Of Trade Unions The existence of a strong and recognized trade union is a pre-requisite to industrial peace. get better treatment from employers. Thus. They also arrange for legal assistance to its members. Decisions taken through the process of collective bargaining and negotiations between employer and unions are more influential. Thus. etc.g. When the unions ffail to accomplish these aims by the method ofcollective bargaining and negotiations. these functions of the trade unions are known as militant or fighting functions. they adopt an approach and put up a fight with the management in the form of go-slow tactics. which may be called fraternal functions. They take up welfare measures for improving the morale of workers and generate self confidence among them. gherao. these. Trade unions play an important role and are helpful in effective communication between the workers and the management. boycott. and also on their competent and enlightened leadership. Seeking a healthy and safe working union activity. if necessary. organizing courses for their members on a wide range of matters. But they also have a wider role in protecting their interests. e. They provide the advice and support to ensure that the differences of opinion do not turn into major conflicts. and other recreational facilities. which the unions raise by subscription from members and donations from outsiders. The aim of such activities is to ensure adequate wages. Hence. in-door and out-door games. they undertake many welfare measures for their members. reading-rooms. They also play an important educational role. The central function of a trade union is to represent people at work. etc. Trade unions try to foster a spirit of cooperation and promote friendly industrial relations and diffuse education and culture among their members. Trade unions help in accelerated pace of economic development in many ways as follows: by helping in the recruitment and selection of workers. secure better conditions of work and employment.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. Besides. library. school for the education of children. and improving their efficiency. strike. Some trade unions even undertake publication of some magazine or journal. depend on the availability of funds. These activities. the militant functions of trade unions can be summed up as: 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.

They can influence the decisions that are taken as a result of collective bargaining between the union and the management. Thus. he can leave the job. promotion. At times. Sense of Belongingness Many employees join a union because their co-workers are the members of the union. Trade unions are a part of society and as such. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers. an employee joins a union under group pressure. Platform for self expression The desire for self-expression is a fundamental human drive for most people. 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. 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 2. Workers coming from different backgrounds may become disorganized. ideas and opinions with others. etc. ideas and opinions of the workers could be discussed. Workers have to adjust themselves to the new working conditions. Unions help them in such adjustment. It . All the labor decisions of the management are under close scrutiny of the labor union. he often has a very difficult time at work. those who are members of a union feel that they gain respect in the eyes of their fellow workers. the new rules and policies. A trade union can compel the management to formulate personnel policies that press for equality of treatment to the workers. 6. This has the effect of minimizing favoritism and discrimination. injury. Some important social responsibilities of trade unions include: promoting and maintaining national integration by reducing the number of industrial disputes incorporating a sense of corporate social responsibility in workers achieving industrial peace Reasons For Joining Trade Unions The important forces that make the employees join a union are as follows: 1. are highly subjective in nature. transfer. unsatisfied and frustrated. Similarly the workers also want the management to listen to them. if he does not. This imposes a great financial and emotional burden upon the worker. The better course for him is to join a union that can take concerted action against the employer. there are chances of favoritisms and discriminations. Greater Bargaining Power The individual employee possesses very little bargaining power as compared to that of his employer. Sense of Participation The employees can participate in management of matters affecting their interests only if they join trade unions. work. have to take into consideration the national integration as well. 4. Minimize Discrimination The decisions regarding pay. etc. If he is not satisfied with the wage and other conditions of employment. The personal relationships existing between the supervisor and each of his subordinates may influence the management. illness. All of us wish to share our feelings. They can also discuss their problem with the trade union leaders. It is not practicable to continually resign from one job after another when he is dissatisfied. A trade union provides such a forum where the feelings. 5. unemployment.by enabling settlement of industrial disputes in a rational manner by helping social adjustments. 3. On the other hand.

many unions came into existence in the country. under the guidance of Mahatma Gandhi. The Hindu Mazdoor Sangh. Unions help in betterment of industrial relations among management and workers by solving the problems peacefully. 3. Trade Unionism In India The trade unionism in India developed quite slowly as compared to the western nations. 7. 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 working and living conditions of the labor were poor and their working hours were long. The first phase (1850 to1900) During this phase the inception of trade unions took place. By 1949. opinions and complaints of the workers to the management. The second phase (1900 to 1946) This phase was characterized by the development of organized trade unions and political movements of the working class. In order to regulate the working hours and other service conditions of the Indian textile laborers. Small associations like Bombay Mill-Hands Association came up by this time. These strikes taught workers to understand the power of united action even though there was no union in real terms. The third phase began with the emergence of independent India (in 1947). As a result. ideas.can also transmit the feelings. the Indian Factories Act was enacted in 1881. The partition of country affected the trade union movement particularly Bengal and Punjab. In addition. Many of the leaders of this organization were leaders of the national Movement. Between 1918 and 1923. Many strikes took place in the two decades following 1880 in all industrial cities. Indian trade union movement can be divided into three phases. and 4. The All India Trade Union Congress. The collective voice of the workers is heard by the management and give due consideration while taking policy decisions by the management. In 1926. four central trade union organizations were functioning in the country: 1. 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. All India Trade Union Federation (AITUF) was formed. These unions federated into industrial union known as Textile Labor Association in 1920. A strike was launched by these unions under the leadership of Mahatma Gandhi who turned it into a satyagrah.In 1920. The United Trade Union Congress The working class movement was also politicized along the lines of political parties. N N Joshi that became operative from 1927. occupational unions like spinners unions and weavers unions were formed. Trade union law came up with the efforts of Mr. During 1928. At Ahmedabad. For instance Indian national . During this period. 2. the wages were also low and general economic conditions were poor in industries. The Indian National Trade Union Congress. the First National Trade union organization (The All India Trade Union Congress (AITUC)) was established. Capitalists were only interested in their productivity and profitability.

With the advent of liberalization in1992. Indian National Trade Union Congress (INTUC) 8. Now. Indian Federation of Free Trade Unions (IFFTU) 7. globalization brought major changes in industrial relations policy in India. supervisors and managers are also organized by the trade unions. who constitute about 60 per cent of the workforce. All India Trade Union Congress (AITUC) 2. However. Trade unions in India The Indian workforce consists of 430 million workers. are also facing pressures to follow decentralization.Lenin Sarani (UTUC . National Labor Organization (NLO) 10. Some industries are cutting employment to a significant extent to cope with the domestic and foreign . With the coming of globalization. Centre of Indian Trade Unions (CITU) 4. Besides workers. the industrial relations policy began to change. introduced policies of voluntary retirement schemes and flexibility in workplace also increased. but now in sectors where it was not so. Hind Mazdoor Kisan Panchayat (HMKP) 5. The urban informal sector (which includes the growing software industry and other services. growing 2% annually. Insurance and Petroleum industries. Hind Mazdoor Sabha (HMS) 6. the policy was tilted towards employers. which employs 8 per cent of workforce. Trade Unions Co-ordination Centre (TUCC) 11.trade Union Congress (INTUC) is the trade union arm of the Congress Party. 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. Employers opted for workforce reduction. not included in the formal sector) which constitutes the rest 32 per cent of the workforce. 2. Organized sector. The basic purpose of these laws was to protect labors.LS) Industrial Relation Policy Prior to 1991. The Indian labor markets consist of three sectors: 1. over employment and inability to introduce efficacy. The AITUC is the trade union arm of the Communist Party of India. United Trade Union Congress (UTUC) and 12. Thus. The rural workers. layoffs and retrenchment policies. as for example in the Banking. The changes can be summarized as follows: Collective bargaining in India has mostly been decentralized. and 3. industrial disputes and the like. United Trade Union Congress . the industrial relations system in India sought to control conflicts and disputes through excessive labor legislations. Bharatiya Mazdoor Sangh (BMS) 3. these protectionist policies created an atmosphere that led to increased inefficiency in firms. white-collar employees. 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 manufacturersbecause they had to compete in the international market. At present there are twelve Central Trade Union Organizations in India: 1. National Front of Indian Trade Unions (NFITU) 9.

for example paying low wages to a highly skilled employee. pharmaceuticals. usually a day or a week. without paid employment or self-employment and are currently either available for work or are seeking any work are considered to be unemployed.g. Training and skill development is also receiving attention in a number of industries. Labor force can be categorized as self-employed. Unemployed persons: The persons in the labor market who are without work. On the other hand. HR policies and forms of work are emerging that include. job rotation etc. multi-skills. Labor force participation rate: It is the number of persons in the labor force as a percentage of the working-age population. The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions. Labor markets are based on the supply and demand of labor in a country or a specific location that are able and willing to work. Employment rate: It is ratio of employed persons to the total labor force. Underemployed persons: Workers who are employed. . especially in multi-national companies. Under pressure some unions and federations are putting up a united front e. no outside affiliation. whether in terms of compensation. Underemployment also refers to a situation where a major portion of labor force is unemployed. but not in the desired capacity. These new policies are difficult to implement in place of old practices as the institutional set up still needs to be changed. It also includes the employers who compete for workers.g. etc. HRM is seen as a key component of business strategy. Unemployment rate: It is the ratio of unemployed people to the total labor force. hours. in other industries where the demand for employment is increasing are experiencing employment growths. Another trend is that the employers have started to push for internal unions i.competition e. The skills of such persons are underutilized. casual workers and unemployed. It is the percentage of working age people who have jobs or are employed. especially banking and information technology Labor Market Related Terms Labor Market: A labor market is defined as a pool of all potential workers who compete for jobs. banking. Casual Workers: Casual workers are those workers who are generally employedby small entrepreneurs on daily or weekly basis on a low wage rate.e. variable compensation. Labor Force: Labor force includes all persons classified either as employed or unemployed during a specified period of time. that is. They are not entitled to any paid holiday leave or paid sick leaves. or level of skill and experience. The working-age population is the population above a certain reference age like15 years old and over or 15 64. wage and salary earners. In the expansionary economy there is a clear shortage of managers and skilled labor.

Labor force can be divided into four categories: self employed workers. Persons who are engaged in their own farm or non. This category includes those getting time wage as well as those receiving piece wage or salary and paid apprentices.3 million out of which 60% are in agriculture. The chart below describes the estimated increase in the number of labors from 1977-78 to 2004-05. Same is the case with those unemployed who are actively seeking work. include persons engaged regularly on an hourly basis. Of these.1%. The labor force in year 2006 has grown up to 509. subsisting on wage employment. their share being around 62 per cent (lines 10 to 12 of Table). One-third of rural households are agricultural labor households. etc. Contractual and hence stable hired employment (with the same employer and/or in the same job) on a regular basis is covered in the description wage and salary workers.Underemployment rate: It is the ratio of underemployed to either total labor force or total employment Labor Market In India The Indian labor market can be categorized into three sectors: Rural workers . The labor force has grown from 276. The table given below classifies labor force across male-female and rural-urban dimensions.farm enterprises and getting in return salary or wages on a regular basis and not on the basis of daily or periodic renewal of work contract. The employees in an enterprise can be either regular salaried/ wage employees or casual wage employees who are normally engaged on a day today basis. These workers. self-employed. wage and salary earners. casual workers and unemployed.workers. both full time and part time. It is clear that Self-employment and casual labor statuses are more prevalent among rural than urban labor force and among female than male workers. In 2004-05 the labor market consisted of 430 million workers and has grown up to 500 million in 2006 Two-third of India s workforce is employed in agriculture and rural industries. 12% are employed in industries and the residual 28% are in services. During the year 1999-2000. the workforce was estimated to be 407 million.5 million between 1977-78 and1993-94 showing an annual growth rate of 2. are informal workers. This category of persons may.farm enterprises are defined as self employed. therefore. or employed as casual wage laborers. Those reporting wage and salary earning dominate in the urban labor force. The Incidence of unemployment is higher in the urban than in the rural labor force with nearly 48 per cent of the total unemployed persons coming from aggregate urban labor force whose share in total (rural plus urban) work force is 22 per cent. who constitute about 60% of the workforce Organized of the formal sector. The casual wage workers both in public work and other types of work don t have any job security or social security. out. the remaining 91 percent are in the unorganized sector.3 million to 385. Non-contractual casual laborers have the closest connection to labor market on almost day-to day basis. The regular salaried/wage employees are those working in others farm or non. either in formal or informal sector or in private households. and Urban unorganized or informal structure which represents the 32% of the workforce. temporary workers. . self-employed are most loosely connected to labor market because of the possibilities of work-sharing and work spreading in a self-employed enterprise. that constitutes about 8% of the workforce. Only about 9 percent of the total workforce is in the organized sector.

2 percent.35 million enterprises and 79. Among these 25. showing only a marginal increase from 24 million in 1983 to 28 million in 1999-2000.74 million workers were in rural areas whereas 19. 1987-88. It is clear that employment opportunity in the organized sector has remained more or less stagnant. It is evident that throughout this period a large portion of the workforce in India is found to be employed in the unorganized sector. and other employed in organized and unorganized enterprises that are not eligible either for paid. In fact. the highest numbers of informal employees are in retail trade.84 percent of the employment in agriculture is informal. In the matter of savings the share of household sector in the total gross domestic saving mainly unorganized sector is about three fourth. The share of informal employment has risen from 92 per cent (nearly 276 million out of 300 million) in 1983 to 93 per cent in the 1999-2000. Thus. total work force as on 1.5 million part times. 1993-94 and 1999-2000.21 million are full time and 9.1. The unorganized / informal employment consists of causal and contributing family workers. a major chunk of labor force is employed in the unorganized sector.34 million enterprises with 39. The share of unorganized employment in the economy has displayed remarkable steadiness over the years. Employment In India .97 million workers in the urban area. savings and capital formation. sick or annual leave or for any social security benefits given by the employer. self employed persons in un-organized sector and private households. Out of 397million workers in 1999-2000. Among the workers engaged in the informal sector. 98. According to the results of the National Sample Survey conducted in 1999-2000. 1999-2000 also covered non-agricultural enterprises in the informal sector in India. land transport.Organized and Unorganized Labor In India. Thus unorganized sector has a crucial role in our economy in terms of employment and its contribution to the National Domestic Product. About 7 % of the total work force is employed in the formal or organized sector (all public sector establishments and all non-agricultural establishments in private sector with 10 or more workers) while remaining 93% work in the informal or unorganized sector. The contribution of the unorganized sector to the net domestic product and its share in the total NDP at current prices has been over 60%.01 million enterprises employing 39.2000 was of the order of 406 million. there were 44. construction. Percentage of female workers to the total workers is 20. The largest numbers of informal workers are in agriculture. As per that survey. textiles etc.71 million workers employed thereof in the non-agricultural informal sector of the economy. In the non-agricultural sector. it is estimated that 369 million workers (nearly 93 per cent) are employed in the unorganized segment of the economy whereas only 28 million workers (7 per cent) are engaged in the organized sector. 70. The table below describes major employment trends for the organized and unorganized sector for the years 1983. The NSS 55th round. the unorganized sector plays a vital role in terms of providing employment opportunity to a large segment of the working force in the country and contributes to the national product significantly.

The public sector employs about 180. This means there has been an increase of 0. Local Bodies and State Govt. Out of these. The Local Bodies and State Govt. Karnataka.1 percent in North-Eastern Zone and 0. in the rural as well as urban areas.34 thousand are public sector enterprises while 121. were also subjected to a negative growth of 0. the employment in public sector decreased by 1 percent while private sector increased by 2.73 per cent in 1991 and 26.4% and 0. An increase of more than 3 percent in employment was observed in Goa.43 lakh. Since 2004. Assam and Nagaland. Amongst rural women workers.4% has been recorded in the number of establishments in the organized sector. Decrease in employment above 1 percent was observed in Madhya Pradesh Uttar Pradesh. 172.9 percent in Eastern Zone in employment Women Employment Women workforce constitutes an integral part of total workforce in India. shows maximum negative growth in employment followed by Quasi Govt.67 per cent which increased up to 22. 2005 a total number of 50. work participation rate for women was only 19.7 lakh persons while the private sector employs 84.5 percent.68 per cent in 2001. women workers are primarily employed in the unorganized sectors. While analyzing the figures zone wise. In the women workforce.6 percent in Southern Zone whereas the highest increase was 2 percent in Western Zone followed by 1. women constituted 19 per cent of the total workforce.77 thousand industrial establishments. an increase of 1.43 thousand are in private sector. with a negative growth of 2.2%. a majority is employed in agriculture and some are employed in cottage industries.6 percent was seen in Central Zone followed by 1 percent in Northern Zone and 0. Himachal Pradesh and Gujarat and 1 percent or more in Pondicherry.52 lakh persons. The negative growth of employment was recorded in public sector while private sector showed an increasing trend.16 Lacs women . In the urban areas. The participation of women in the labor force has always been lower than that of men. The same trend continued in 2005 also. The branch wise analysis of the public sector data reveals that Central Govt. recorded a negative growth of 2. As on the 31st March. On 31st march 2004. it was 264. 2005 the total employment in the organized sector was estimated to be 264.The organized sector in India consists of 293. West Bengal. Uttaranchal. highest decrease of 1.3% respectively State wise analysis reflects that only Punjab and Kerala recorded a decrease of more than 3 percent. women from rural areas are greater in number as compared to the urban women. that is.58 lakh while in 2004. The work participation rate for women has increased significantly.1% in employment. As on the 31st March.9% followed by Quasi Govt. Chandigarh and Andhra Pradesh. in which the Central Govt.. In 1981.

0 2004 106.5 25.6 28. Educated Women at the end of 2004 accounted for 25.3per cent to 70. The work participation rate for women was 25.7 27.1 26. This shows an improvement over 22. As on 31st March.3 24.7 thousand.4per cent in 2004.employees were engaged in the organized sector.3 lacs) while minimum number of women job-seekers are in Rajasthan (1.34 lacs women workers employed in the organized sector (Public and Private Sector).2per cent). followed by Western Zone (5.9 2003 107.68 per cent in 2001.6 2000 104. Women workers constituted 19 per cent of the total organized sector employment in the country.8 25.73 per cent in 1991 and 19.3per cent) and Northern Zone (1.3 lacs) and Tamil Nadu (15.3 lacs in 1999 to 106. out of which 29.4 26.7 25.0 25.95 lacs (42per cent) in the Private Sector. The percentage of educated women job seekers among the total women job seekers has gone down from 73.1 percent and by 2.6per cent in 1999 to 26. Employment of women in public sector increased by 1.8per cent of the total educated job-seekers.1per cent in women . there were about 49.1 2001 8525.3 2001 108.0 Number of Educated Women Job Seekers as on December 2004 was 7537. Table 2: Number of Educated Women Job Seekers Year Number of Women Percentage to total 2000 7911.4 per cent in the previous year.6 2004 7537.8 2003 8032. as compared to 18.2per cent in 2004. Eastern Zone (3per cent) and Central Zone (1.8 The state wise analysis reflects that Kerala has the maximum (21. The zone wise analysis showed an increase of 8 percent in North-Eastern Zone.1 lacs in 2004. Table 1: Number of Women Job Seekers Year Number of Women (in lacs) Percentage to total 1999 99. As far as industries are concerned.21 lacs (58per cent) in the public sector and 20.1 lacs) women job-seekers followed by West Bengal (19.0 lacs). 2004.4 26.5 26.67 per cent in 1981. Only Southern Zone registered a marginal dip of 0. the manufacturing industry faced a dip of 1. Thus the percentage of women job seekers to the total job-seekers has also increased from 24.3per cent).5 percent in the private sector during 2004-2005.9 2002 106.1 2002 7921.8 percent Some Vital Statistics The number of women job seekers has increased from 99. in 2005.

Discipline can be positively related to performance. This is because the reason for discipline is to improve performance rather than punishing the employee Factors necessary for effective disciplinary system include: 1. written record keeping and written notification to the employees. Centralization of discipline: Centralized means that the discipline decisions should be uniform throughout the organization. All these action plans must be communicated to the employees.5 per cent in Agriculture. Review discipline decisions: The disciplinary decisions must be reviewed before being implemented. Self discipline makes employee realize what is required at work. Storage & Communications. that is. Both overpenalization and under-penalization are considered to be unfair for the problem employee. 5. Gas & Water. Forestry & Fishing. Inconsistent discipline leads to confusion and uncertainty.5 per cent in Construction. regarding the same.2 per cent in Transport. reprimands. Managers should try to minimize the ill feelings arising out of the decisions by judging the offensive behavior and not by judging the person. an internal fairness is to be maintained. other industries reflected an increase in women employment. Information regarding penalties: The employer should define the penalties and other actions like warnings. 4. 5. 8. Impersonal discipline: Discipline should be handled impersonally. higher will be the effectiveness of discipline procedure. Consistent discipline helps to set limits and informs people about what they can and cannot do. Discipline shall be flexible and consistent: The manager administering discipline must consider the effect of actions taken by other managers and of other actions taken in the past. Notification of conduct that may result in discipline: Actions that lead to misconduct can be listed and documented so the employees are aware of such actions.6 per cent in Mining and Quarrying. The advantage of this approach is that employees can t take it for granted. Theodore Roosevelt has said With self-discipline almost everything is possible . Effective discipline should be aimed at the behavior. Social and Personal Services and 1. Moreover. Discipline shall be progressive: Discipline system should be progressive in nature. discipline decisions taken by trained supervisors are considered fair by both employees and managers. Hunting. The greater the uniformity. It is the bridge between goals and accomplishments. On the other hand. Thus less chance will be left for the employee to say the he did not know about the policy. An increase of 7. Training of supervisors is necessary: Supervisors and mangers need to be trained on when and how discipline should be used. 11. 3.8 per cent was registered in Wholesale and Retail Trade followed by 5. Effective Discipline Discipline is the key to success. 5. 1. 10.2 per cent in Financing. 6. 1. Documentation: Effective discipline requires accurate. . 1. 9. discharge and dismissal well in advance. The longer time lag between the misconduct offense and the disciplinary action will result in ineffectiveness of the discipline. This will unable them to claim that they have not been notified. 2. Disciplinary action should be prompt: The effective discipline should be immediate. in advance. Moreover. Discipline should be fair: The disciplinary decision should be fair enough for the employee. Insurance Real Estate & Business Services. In a progressive discipline approach the severity of actions to modify behavior increases with every step as the employee continues to show improper behavior. Managers should limit their emotional involvement in the disciplinary sessions. and not at the employee personality.4 per cent in Community.employment. 7. This will ensure uniformity and fairness of the system and will minimize the arbitrariness of the disciplinary system. two employees who have committed the same offense should be equally punished. It is necessary to provide training on counseling skills as these skills are used while dealing with problem employees.7 per cent in Electricity.

there are two approaches to discipline employees. They are: Positive Discipline Approach Progressive Discipline Approach Code Of Discipline In Industry To maintain harmonious relations and promote industrial peace.Approaches to Discipline Handling employee misconduct is a very critical task to be performed by the senior managers. intimidation and coercion should not be resorted The existing machinery for the settlement of disputes should be utilized. These actions can b summarized as follows: Management and Union(s) agree 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. a Code of Discipline has been laid down which applies to both public and private sector enterprises. Employees should follow go slow tactics No deliberate damage should be caused to a plant or property Acts of violations. The basic objectives of Code of Discipline are to: Maintain peace and order in industry. victimization or go slow tactics that they will avoid litigation. Promote constructive criticism at all levels of management and employment. To manage discipline among employees. No unilateral action should be taken in connection with any industrial matter. The Code is based on the following principles: There should be no strike or lockout without prior notice. management and unions agree on not indulging into various actions. Actions that disturb cordial relationships should be avoided. 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. every company opts for a discipline policy which describes the approach it will follow to handle misconduct Broadly defined. It specifies various obligations for the management and the workers with the objective of promoting cooperation between their representatives. intimidation. intimidation and violations of rules and regulations governing industrial relations. 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 . Misconduct and other offensive behaviors often lead to decreased levels of productivity as they affect the individual performance of the employees. To ensure better discipline in industry.

The code expects employees to conduct business with integrity and honesty. Disclosure of information: The employees should not disclose the company information to third parties and other outside organizations. 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 Union agrees 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. Outside employment: Employees should not indulge in to any kind of concurrent employment without the prior knowledge of employer. 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. The Code of Conduct policy of a company is determined on the basis of following factors: 1. 2. Moreover. The employees should show truthfulness in actions throughout their tenure in the organization. However the employers should reveal the various policies of the organization to their employees and make them aware about the code of conduct and other policies. it expects the employer to be an equal opportunity employer. No physical harassments like hitting or pushing are acceptable on part of employees. Harassment: The work environment should be free from all kinds of harassments. that they will abide by various stages in the grievance procedure and take no arbitrary action which would bypass this procedure.workers themselves that they will establish upon a mutually agreed grievance procedure which will ensure a speedy and full investigation leading to settlement. 4. awards. damage to property and insubordination to take prompt action to implement awards. and Management Agrees 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. 3. 5. especially sexual harassments and verbal harassments. agreements. The significance of code of conduct is that each employee should behave and perform in a way that preserves the company values and commitments. the expected behavior and the professional responsibilities. This means personal interests should not overshadow . Honesty and integrity: The organization expects the employees to observe honesty and integrity and such conduct should be fair and transparent. settlements and decisions Factors Guiding Code Of Conduct The code of discipline and conduct communicates to the employees.

Grievance resulting from management policies include: o Wage rates o Leave policy o Overtime o Lack of career planning o Role conflicts o Lack of regard for collective agreement o Disparity between skill of worker and job responsibility 2. The financial records and unpublished data should be kept within the organizations and should not be spread outside the organization. 6. Equal opportunity employer: This factor expects the employer to be an equal opportunity. that is. color. Confidentiality: Employees should protect company s confidential information. (ii) working conditions. should be used in a cost effective way. etc Various sources of grievance may be categorized under three heads: (i) management policies. 10. and (iii) personal factors 1. Proper cleanliness and lightening should be provided. In an organization. 8. 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. They are provided to them for business purposes and thus. A health and safety committee can be set up by the employer consisting of representatives of workers as well. remuneration and gifts from outsiders. race. gender. Grievance resulting from working conditions include: o Poor safety and bad physical conditions o Unavailability of tools and proper machinery o Negative approach to discipline o Unrealistic targets 3. Misusing company resources: Employees should not misuse company resources. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair. religion or physical disabilities. Payment and gifts: The employees should neither accept nor offer any kind of illegal payments. intellectual property. unjust or inequitable. Health and safety: An employer should provide a safe and healthy work environment to its employees. 7. time and other facilities. donations. 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. Grievance resulting from inter-personal factors include o Poor relationships with team members o Autocratic leadership style of superiors .organizational interests. 9. no discrimination should be done on the basis of caste.

On the other hand. Therefore. Without a grievance procedure. This model helps in creation of grievance machinery. In the 16th session of Indian Labor Conference. a formal grievance procedure is a valuable communication tool for the organization Grievance Procedure Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance. 1. Therefore. in bigger organizations. management may be unable to respond to employee concerns since managers are unaware of them. If the employee is not satisfied with superior s decision. a model for grievance procedure was drawn up. the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. Step-ladder policy Open door policy: Under this policy. According to it. Management has to specify the persons in each department who are to be . then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties. However. 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. workers representatives are to be elected for a department or their union is to nominate them. management should be concerned with both complaints and grievances. Step ladder policy: Under this policy. Open door policy 2. A complaint is an indication of employee dissatisfaction that has not been submitted in written. The departmental head discusses the problem with joint grievance committees to find a solution. if the committee also fails to redress the grievance. it is believed that open door policy is suitable for executives. a grievance is a complaint that has been put in writing and made formal. whenever an employee is confronted with a grievance. However. top management executives are usually busy with other concerned matters of the company. because both may be important indicators of potential problems within the workforce. Such a policy works well only in small organizations.o Poor relations with seniors o Conflicts with peers and colleagues It is necessary to distinguish a complaint from grievance. If the chief executive also fails to redress the grievance. operational employees may feel shy to go to top management. In this procedure. Grievances are symptoms of conflicts in industry. he presents his problem to his immediate supervisor. then he discusses his grievance with the departmental head. Moreover. then it may be referred to chief executive. The grievance procedures differ from organization to organization. the aggrieved employee has to follow a step by step procedure for getting his grievance redressed.

In organizations the responsibility of employee health and safety falls on the supervisors or HR manager. It will include the risk of accidents caused due to machinery. STEP 2: If the departmental representative fails to provide a solution. Health and safety form an integral part of work environment. the employer has to ensure safety and security of his employees. Responsibilities of managers: 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: 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 . The supervisors and departmental heads are responsible for maintaining safe working conditions. He has to give his answer within 48 hours. he can take the grievance to Grievance Committee. safety and security are closely related to each other. It not only includes physical well being. the case may be referred to voluntary arbitration. These steps are: STEP 1: In the first step the grievance is to be submitted to departmental representative. who has to give his decision within 3 days. but also emotional and mental well being. The management must communicate its decision to the worker within 7 days STEP 4: If the grievance still remains unsettled. who is a representative of management. An HR manager can help in coordinating safety programs. 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. the aggrieved employee can take his grievance to head of the department. conduct formal safety training. Security refers to protecting facilities and equipments from unauthorized access and protecting employees while they are on work. STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head. Health is the general state of well being. fire or diseases. The Model Grievance Procedure specifies the details of all the steps that are to be followed while redressing grievances.approached first and the departmental heads who are supposed to be approached in the second step. Employee Health and Safety For smooth functioning of an organization. making employees aware about the health and safety policy of the company. An appeal for revision of final decision can be made by the worker if he is not satisfied with it. A work environment should enhance the well being of employees and thus should be accident free. etc. The terms health. Safety refers to the act of protecting the physical well being of an employee. The Grievance Committee makes its recommendations to the manager within 7 days in the form of a report.

Moreover design of such machines and equipments also plays an important role in safety. tools. eye strain and headache arise due to long working hours spent in front of computers. Some factors that lead to sick buildings include poor air quality. stench of adhesives and glues. et al. They can be summarized as follows: 1. Employees encounter high levels of mental and physical stress also. inadequate ventilation. Engineering of Work Equipments and Materials: Accidents can be prevented in a way by proper placements of dangerous machines. Ergonomics is the study of physiological. and proper lighting affect job performance. Many organizational and individual issues emerge in management of employee health and safety.* Factories act1948 * Mines act 1952 * Dock workers act(Safety. which means work. noise levels. 6. Physical Work Settings: The physical settings of work affect the performance of employees to a great extent. Any . It is the interface between men and machines. This is generally because more problems are caused by careless employees than by machines or employer negligence. 2. 3. emergency stop buttons and other provisions help in reducing the accidents considerably. Some of these factors include temperature. Health & Welfare)1986 Issues in Employee Health & Safety Organizations frame many approaches to ensure health and safety of their employees. psychological. This results in injuries of musculoskeletal and nervous system. But not all of the approaches focus on contribution of both work design and employee behavior to safety. A positive attitude towards work environment and other practices promotes employee safety. and omics which means management of. Other work setting factors include size of work area. including such factors as fatigue. Providing safety guards and covers on equipments. kinds of materials used. Cumulative Trauma and Repetitive Stress: Cumulative trauma disorder occurs when same muscles are used repetitively to perform some task. cubicle arrangement. rodents. and engineering design aspects of a job. This standard is known as IS 18001:2000 Occupational Health and Safety Management System. Problems of back ache. improper cleanliness. Sick Building Syndrome: It is a situation in which employees experience acute health problems and discomfort due to the time spent in a building (particularly their workplace). 5. Ergonomics: The term comes from the Greek word ergon. et al. lighting. 4. An organizational approach to safety is effective only when both the work design and employee behavior work in coordination towards it. Accident Rates and Individuals: An individual approach to safe environment helps in reducing the accident rates. equipment layout. and placement of controls. Ergonomics is taken into consideration when designing the workstation for computer operators. distance between work areas. Occupational Health & Safety Management System The Bureau of Indian Standards has formulated a standard for Occupational health and safety management systems.

If the application is complete. an adequacy audit takes place and a preliminary visit (pre-audit) is conducted by an audit team. industrial relations and insurance against disease. Labor welfare includes various facilities. Also. Once an application is received by the regional office of BIS. cultural and material conditions of living of the workers. The basic features of labor welfare measures are as follows: 1. efficiency. Labor welfare schemes are flexible and ever-changing. Immediately after this. . Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining 3. To relieve workers from industrial fatigue and to improve intellectual. 2. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. New welfare measures are added to the existing ones from time to time. recommendations for the award of certifications are made by the team and the certificate is granted to the organization by the concerned authorities. 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 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.OHS management system adopted by an organization should incorporate all the requirements specified in this standard. it is scrutinized for all the requirements. If the application is accepted. they have to ensure that they are operating according to the IS 18001:2000 standard. it is accepted. Organizations willing to adopt OH&S Management System have to obtain a license for the same. If the report comes out to be satisfactory. the applicant organization is asked to take corrective actions after which another audit is conducted. manual or the documentation of OHS management system is to be submitted along with the application. Employee welfare includes monitoring of working conditions. creation of industrial harmony through infrastructure for health. economic betterment and social status. accident and unemployment for the workers and their families. However if the report does not meet all the requirements. To make the workers happy and satisfied 3. For this purpose. services and amenities provided to workers for improving their health. initial certification audit takes place on the basis of which an audit report is prepared by the audit team. Employee Welfare Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. 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 Labor welfare has the following objectives: 1. The welfare measures need not be in monetary terms only but in any kind/forms. To provide better life and health to the workers 2. otherwise more information is sought from the applicant organization.

Five different welfare funds. This makes workers to pay more attention towards work and thus increases their productivity. Employers get stable labor force by providing welfare facilities. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. 1946 The Limestone and Dolomite Mines Labor Welfare Fund Act. are administered by Ministry of Labor. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The very logic behind providing welfare schemes is to create efficient. Manganese Ore and Chrome Ore Mines Labor Welfare Fund Act. medical care. Majority of labor force in India is working in unorganized sector. Workers take active interest in their jobs and work with a feeling of involvement and participation. 1972 The Iron Ore. 5. loyal and satisfied labor force for the organization. The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce. In order to provide social security to such workers. employees or by any social or charitable agency. Welfare measures may be introduced by the employers. educational and recreational facilities to workers employed in beedi industry and non-coal mines and cine workers. medical benefits. and education and recreation facilities for workers families help in raising their standards of living. The social evils prevalent among the labors such as substance abuse. Government has introduced Labor Welfare Fund to ensure assistance to unorganized labors. The five legislations governing welfare funds are as follows: The Mica Mines Labor Welfare Fund Act. 1981 Schemes under welfare funds provide assistance with respective to the following: 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 Group Insurance Schemes for Beedi and Cine workers o Social Security under Mine Workers Welfare Fund . 1976 The Cine Workers Welfare Fund Act. The purpose of these welfare funds is to provide housing. which are governed by different legislations. The important benefits of welfare measures can be summarized as follows: They provide better physical and mental health to workers and thus promote a healthy work environment Facilities like housing schemes. healthy. etc are reduced to a greater extent by the welfare policies Labor Welfare Fund Labor welfare refers to all the facilities provided to labor in order to improve their working conditions.4. government. provide social security and raise their standard of living.

4.6/. Dock Workers Act (safety. 1981 provides for duty of cess.per thousand manufactured beedis. The Iron Ore. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. Manganese Ore & Chrome Ore Mines Labor Welfare Cess Act. 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. The employee welfare schemes can be classified into two categories viz. 3. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.to Rs. 7. 1976 provides for levy of cess by way of excise duty on manufactured beedis from Re. provides for levy and collection of cess on all mica exported as duty of Customs not exceeding 6. 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. Drinking Water: At all the working places safe hygienic drinking water should be provided.Family welfare The welfare funds are raised by government by imposing cess on manufactured beedis. Spittoons: In every work place. statutory and non-statutory welfare schemes.1/. health and welfare) 1986. 5. The non statutory schemes differ from organization to organization and from industry to industry STATUTORY WELFARE SCHEMES The statutory welfare schemes include the following provisions: 1.1/.respectively. manganese ore & chrome ore. store places. This is 4.6/.and Rs.3/to Rs. such as ware houses. consumption of limestone & dolomite and consumption and export of iron ore. Mica Mines Labor Welfare Fund Act. especially factories. These include provisions provided in industrial acts like Factories Act 1948. 2. suitable seating arrangements are to be provided. . at such rate not being less than one thousand rupees and not exceeding twenty thousand rupees. export of mica. Central Board of Film Certification.5/. 6.25% ad valorem. The Limestone and Mines Labor Welfare Fund Act.5% ad valorem on export with effect from 1st November 1990. An explanation of the cess levied under different legislations is given below: Beedi Workers Welfare Cess Act. The Cine Workers Welfare Cess Act. The rate of cess on Limestone and Dolomite is Re. This is presently Rs 2 per 1000 beedis with effect from 28th June 2000. feature films. Mines Act 1962.1/-. on every feature film submitted to the Chairman.with effect from 27th December 2000. 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.to Rs. 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. Facilities for sitting: In every organization. 1976 provides for levy and collection of cess on Iron Ore. Employee Welfare Schemes Organizations provide welfare facilities to their employees to keep their motivation levels high. Re. 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. Manganese Ore & Chrome Ore between 50p to Re. 1946.1/.

4% of disputes were caused by demand of higher wages and allowances. disputes caused by personnel were 14. while 2. 29. During the year 2002. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. etc. political factors. sympathetic strikes. 9. disease or injury or pregnancy.2% of the disputes were caused by personnel.6% of the disputes were caused by personnel. workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness. only 9. 5.2% and 0. wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places. 10.6% of disputes were caused by retrenchment and layoffs. Paternity leave policies have also been introduced by various companies.4% and 41. Maternity & Adoption Leave Employees can avail maternity or adoption leaves. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up 2. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.1% while those caused by retrenchment and layoffs were 2. wash basins. 4. ill treatment by staff members. In 2002. and only 0. a similar trend could be seen. 7.4% were caused by retrenchment. Indiscipline and violence: From the given table.6% of disputes were caused due to . 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.4% respectively. allowances. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply. working hours. wherein 11. Similarly in 2004 and 2005. In 2005. In year 2005. In 2003. Harassment Policy: To protect an employee from harassments of any kind. it is evident that the number of disputes caused by indiscipline has shown an increasing trend. indiscipline etc. This percentage was 20. Adequate lockers are also provided to the workers to keep their clothes and belongings. Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. guidelines are provided for proper action and also for protecting the aggrieved employee.8% of disputes.9% of disputes were caused because of indiscipline. Washing places: Adequate washing places such as bathrooms. Wages and allowances: Since the cost of living index is increasing. 6. bathrooms. 40. toilets. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules.9% in 2003. leave and holidays without pay. unjust layoffs and retrenchments. The economic causes will include issues relating to compensation like wages.2%. The non economic factors will include victimization of workers.4% during 2003 and during 2004 increased up to 26. and conditions for work. In 2002.4% and 0. NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following schemes: 1. which rose up to 36. wages and allowances accounted for 21. 21. bonus.8. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs 3. Causes Of Industrial Disputes The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes.

only 45 cases of disputes have been recorded during the first four months of 2007. To support this.14 lakh mandays were lost due to work stoppages in 23 industrial disputes during January to March 2007.9%) of the total time-loss of all disputes. In the recent past. a deeper look at the data reveals that the number of mandays (i. Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes.Work Load . This significant decline is attributed to the serious attempts made by industries to improve industrial relations with their workers. 6.Inter/Intra Union Rivalry . the country still witnessed some major strikes between 2004 and 2006. In 2005. only 57 disputes were recorded in public sector which resulted in a wage loss of 79 Crores. lost 25. like those in Honda.4% and11. the total number of disputes was 1097 which fell by more than half to 440 in 2006. only 0. Apollo.It is being estimated that this trend will continue in 2007 as well.Standing orders/rules/service conditions/safety measures . 0. which might have affected its industrial output.indiscipline respectively.5% and 3. it is clear that the private sector has witnessed greater number of disputes as compared to the public sector. .. The country. More than 2. followed by cause-groups wage and allowance and personnel with 20.Charter of Demands .4% of disputes. and Skumars factories and in SBI bank.e.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3. Escorts. the industrial unit of production equal to the work one person can produce in a day) lost due to disputes has not come down as significantly. Though there has been a decline in the number of strikes. During 2004. maximum number of disputes has been recorded in the manufacturing. Miscellaneous: The miscellaneous factors include . A similar trend was observed in 2004 where indiscipline accounted for 40.4% of the disputes were because of leaves and working hours.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. 399 disputes were recorded in the private sector. indiscipline accounted for the highest percentage (36. During 2002.6% in 2004 and 2005 respectively. On analyzing the data sector wise. However.4 million mandays of work annually between 1998 and 2006. Bonus: Bonus has always been an important factor in industrial disputes. In 1998. Analysis Of Industrial Disputes The number of industrial disputes in country has shown slow but steady fall over the past ten years.2% respectively.Non-implementation of agreements and awards etc. on an average. In contrast to this. During the year 2003. agriculture and mining and quarrying industries.

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. bonus and other facilities such as increase in privilege leave and casual leave. or a refusal under a common understanding of any number of such persons to continue to work or to accept employment . The members of other unions involve . Demands made by strikers can range from asking for higher wages or better benefits to seeking changes in the workplace environment. it is called a sympathetic 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. Causes of strikes: Strikes can occur because of the following reasons: 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. Labors withhold their services in order to pressurize their employment or government to meet their demands. In these kinds of strikes. In a strike. profit sharing. a strike is a cessation of work by a body of persons employed in an industry acting in combination. Provident fund and gratuity Retrenchment of workmen and closure of establishment Dispute connected with minimum wages TYPES OF STRIKE 1. it also includes the refusal of a number of employees to continue work under their employer. Economic Strike: Under this type of strike. workers ask for increase in wages. 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.Strikes A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. According to Industrial Disputes Act 1947. house rent allowance. allowances like traveling allowance. a group of workers agree to stop working to protest against something they think is unfair where they work. labors stop their work to enforce their economic demands such as wages and bonus. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems. When workers collectively cease to work in a particular industry. Firstly. dearness allowance. they are said to be on strike. 2. This definition throws light on a few aspects of a strike. a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Secondly.

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. Thus. because they just use their sick leave that was allotted to them on the same day. 3. General Strike: It means a strike by members of all or most of the unions in a region or an industry. Slow Down Strike: Employees remain on their jobs under this type of strike. in which employees refuse to work. a significant number of advocated went on wildcat strike at the City Civil Court premises in Bangalore. 7. the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work For example. the employer may declare a lockout until the workers end the strike. Sick-out (or sick-in): In this strike. if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive. 4. They don t break any rules. Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions. However. They also refuse to leave. Such a strike is also known as 'pen down' or 'tool down' strike. These strikes are usually intended to create political pressure on the ruling government. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. They do not stop work. They adopt go-slow tactics to put pressure on the employers. all or a significant number of union members call in sick on the same day. This is different from a strike. Pickets are workers who are on strike that stand at the entrance to their workplace. 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. Acc to Industrial Disputes Act 1947. A lockout may happen for several reasons. 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. If picketing does not involve any violence. It may also be an extension of the sympathetic strike to express generalized protest by the workers. Workers show up to their place of employment. When only part of a trade union votes to strike. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement. In 2004. such a step is known as picketing. Sit down Strike: In this case. 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. They keep control over production facilities. It is declared by employers to put pressure on their workers. which makes it very difficult for employer to defy the union and take the workers' places. In June 1998. 6. it is perfectly legal. a lockout is employers weapon while a strike is raised on part of employees. 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. But do not work. rather than on any one employer. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. PICKETING When workers are dissuaded from work by stationing certain men at the factory gates. . but restrict the rate of output in an organized manner. but they refuse to work. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages. workers do not absent themselves from their place of work when they are on strike.themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. 5.

in 2006 only 13. As can be seen from the below chart. as compared to the statistics of 2005. financial intermediation.76 million mandays were lost due to strikes and lockouts. As a result. which resulted in the time loss of 3. was down by 4.6 million were lost to strikes and 13. The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins. Maximum time-loss was caused by 297 lockouts during 2003 which resulted in a time-loss of 27. 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 Analysis Of Strikes and Lockouts In 1990.16 million man-days and 10. agriculture and mining and quarrying industries during 2005. while the number of lockouts stood at 229 with a loss of 18.3 million workers were involved in these labor disputes.The purpose of picketing is: 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. During 2000.86 million man-days. This continuous decline in strikes and lockouts indicates that the industrial relations in India are improving. In January-September 2006. taken together.5 million to lockouts. 426 strikes and 325 lockouts were observed which resulted in total time-loss of 28. from which 10. resulting in the loss of 10. there were only 154 strikes and 192 lockouts across the country. 1. . 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. Industrial disturbances were concentrated mainly in manufacturing (textile).76 million mandays. The number and seriousness of strikes and lockouts have varied from year to year. As compared to previous years. More than 1. 24. During 2005. West Bengal experienced the maximum instances of strikes and lockouts (19216) followed by Kerala (3619) and Rajasthan (19247). there has been a steep decline in the number of strikes and lockouts. There were 227 strikes in 2005.825 strikes and lockouts were recorded.60 million man-days respectively.4 per cent in 2005.05 million mandays.81 million man-days. The number of strikes and lockouts.1 million workdays were lost.

Employees.Prohibition of Strikes and Lock-Outs Employees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947. 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 notice of strike or lockout is not necessary when there is already a strike or lockout going on in the company. However. Moreover. 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. who are working in a public utility service. there must be strong and stable unions in every enterprise to represent the majority of workers and negotiate . or with both 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. 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. 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. no person should provide any sort of financial aid to any illegal strike or lock-out. The employers can easily ignore a weak union on the plea that it hardly represents the workers. cannot go on a strike without giving a notice of strike within the six weeks before striking. a notice should be issued on the day on which the lockout is declared just to intimate the appropriate authorities about the lockout. The agreement with such a union will hardly be honored by a large section of workforce. 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. 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. 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. or with fine which may extend to one thousand rupees. if the notice period is not served or if the strike is held within the fourteen days of issuing the notice of strike. In similar way. The same rule applies to the employers. Moreover. that is. 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. the continuance of such a strike or lock out is not illegal provided it is in compliance with the provisions of act. If a strike or lockout has already taken place and is being referred to a Board. According to Section 25 of Industrial Disputes Act 1947. Therefore. 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.

the consumers and the nation. Mutual Accommodation. Sincere Implementation of Agreements. In any organization. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes. Similarly. joint consultation and other methods. . This will improve communication between managers and workers. the employees. It should make law for the compulsory recognition of a representative union in each industrial unit. social and environmental responsibilities of the company to the society. It should be conscious of its obligations and responsibilities to the owners of the business. labor unions should persuade their members to work for the common objectives of the organization. o Implementation of the policies should be uniform throughout the organization to ensure fair treatment to each worker. An environment of uncertainty is created. whether it is individual or corporation is bad and are doing harm to the society. If the agreements are not implemented then both the union and management stop trusting each other. The management should sincerely implement the settlements reached with the trade unions. It should intervene to settle disputes if the management and the workers are unable to settle their disputes. increase productivity and lead to greater effectiveness. there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude. o Clearly stated so that there is no confusion in the mind of anybody. efforts should be made at both ends to ensure the follow up of the agreements. The policies should be: o Formulated in consultation with the workers and their representatives if they are to be implemented effectively.with the management about the terms and conditions of service. 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. The employers must recognize the right of collective bargaining of the trade unions. Ethics at work place Ethics are most important in one's life. The management should be willing to co-operate rather than blackmail the workers. The management must recognize the rights of workers to organize unions to protect their economic and social interests. To avoid this. Progressive Outlook: There should be progressive outlook of the management of each industrial enterprise. it may foster union militancy as the union reacts by engaging in pressure tactics. Mutual Trust: Both management and labor should help in the development of an atmosphere of mutual cooperation. unethical. confidence and respect. Government s Role: The Government should play an active role for promoting industrial peace. The approach must be of mutual give and take rather than take or leave. The agreements between the management and the unions should be enforced both in letter and spirit. Management should adopt a progressive outlook and should recognize the rights of workers. This will restore industrial harmony. Sound Personnel Policies: The following points should be noted regarding the personnel policies. every company have spell out its policy on ethics of company and follow code of conduct to conduct business and ask the employees to follow ethics and code of conduct to accomplish economic. One must clearly understand that conflicting attitude does not lead to amicable labor relations. In corporate social responsibility reports.

The acceptable code of conduct in Corporate India is morphing from dogmatic thought police. However 78% of the Kolkatta work force differed on this. Surabhi Mathur. Bangalore and Chennai felt having open lines of communication would help check it. according to the report. according to a list prepared by the Wall Street JournalAsia. Around 55. While Mumbaikars would confront their co-workers directly for unethical behaviour. covered top 500 companies and had a sample size of401. Hyderabad and Kolkata insisted that leaders and managers should walk the talk on office ethics. You are key person to make or unmake better society The Role of Trade Union Trade unions are unique organisations whose role is variously interpreted and understood by different interest . Hyderabad and Pune. Delhi and Hyderabad are unaware of their company s ethical policy. Hyderabad and Pune. general manager. Chennai. but companies are getting better at defining non-negotiable without interfering in trivia. whose card-carrying members were the HR department. the other cities differ with an average score of 42 per cent. Chennai. Ahmedabad. An ethical company will achieve its social economic and environmental objectives towards society. to a more fluid situation that accepts diversity. permanent staffing. while those in Mumbai and Chennai felt they were better information on this. It says any company trying to tackle productivity issues needs to check internally. Those in Delhi and Ahmedabad felt flexible work schedule will curtail it. Ahmedabad. Around 63 per cent of the respondents are fine with doing personal work during office hours. it should feel it is its duty and responsibility to serve the society.7 per cent of the workers had no qualms in fudging their cost details and almost 61 per cent felt that it is fine to take printouts and photocopies in offices for personal work. Kolkata. Kolkata. Bangalore. followed by Sunil Mittal-led telecom giant Bharti Airtel and another Tata group company Tata Steel in the top five. Mumbai. Some people view this as a devaluation. With out the help of employee this is not possible. relativity and materiality. TeamLease Services. reveals World of Work survey The study titled Nothing Ethical about Ethics encapsulates views of the corporate workforce on workplace ethics across eight cities in India -New Delhi. 75% respondents from Bangalore. 55% of staff misuse company facilities. Nearly 62 per cent of the respondents were willing to use any means to get competitor information. Taking credit for subordinate ideas is not unethical said Ahmedabad and Bangalore. The fourth survey in the World of Work series tries to understand the changing scenario at workplaces in India. The study further reveals that Kolkata reacted strongly to unethical office behaviour. From the survey it is evident that the ethics in corporate sector are eroding. Bangalore. Your ethical behaviour is most important. The study commissioned by Team Lease Services and conducted by global research company Synovate in May and June. Mumbai. IT majors Infosys. It is the duty of individual employee and employer to enforce ethics for benefit of the company and society.According to the study titled Nothing Ethical about Ethics encapsulates views of the corporate workforce on workplace ethics across eight cities in India New Delhi. One third respondents in Bangalore. Mumbai. with Hyderabad stressing on the need for frequent training on ethics in offices and by increasing open lines of communication. Ahmedabad believed in the indirect route. Hyderabad and Pune conceded they lied to take leave and did not considered it unethical. TCS and Wipro have emerged as the three most admired companies in India. said. says a survey by Team Lease Services. whereas the most lenient city was Ahmedabad.

Density is generally accepted as a better indicator because it shows not only how many are members but also how many are not. Public opinion is hostile to trade unions in most countries. though selective. if unions have 50 members in a factory employing 100. The World Labour Report summarises the trade union situation in India "Indian unions are too very .3 percent of the total population. 9. The Indian workforce 31. In order to do that. Further. 91. It is against the way unions and union leaders function. In the second method. Density is the percentage of union members in relation to total employment. stock market. It has also been reported that by December 1991. legal profession.5 percent being employed on casual basis. The State of Trade Unions in the World. is that the concerns of trade unions extend beyond 'bread and butter' issues.5 million) (i. a plethora of legislations and industrial jurisprudence. Of the total workforce. for example. This gives overall membership position. Thus the unorganised sector is meagrely represented.5 percent is accounted for by the informal sector. It can be said that the protective role of trade unions remains in form. The first method is to simply add up all union members in a factory. supreme court. corrupt and indifferent to the public interest 'Too much power. a qualitative change. In surveys which rank the confidence of the American public in fourteen institutions (as for example the army. growing literacy and awareness among the employees and the spread of a variety of social institutions including consumer and public interest groups the protective role must have undergone. church.68 percent of the workforce) with 82. the density is 50 percent. The public is not against unionism in principle.5 percent. too little morality' sums up the publics' assessment of unions There have been many opinion surveys especially in the United States. The predominant view. The public image of union leaders is that they are autocratic. Trade unions through industrial action (such as protests and strikes) and political action (influencing Government policy) establish minimum economic and legal conditions and restrain abuse of labour wherever the labour is organised. implying 90.5 percent of the workforce) are employed on permanent basis. office or country. one may peruse the following relevant. while the formal sector accounts for 8. the claimed membership of the Indian trade union movement was 3.e. industrialists.24 percent of the trade union membership being accounted for by the organised sector. Trade unions are also seen as moral institutions.e. Traditionally trade unions role has been to protect jobs and real earnings. Trade Unions in India The trade union movement in India is over a century old.05 Crore (30. statistics. only abut 3 Crore (30 million) (i.479 Crore (314. the density of membership is calculated. the dignity and justice they deserve.79 million) constitutes 37. but varies in substance.) trade unions have been consistently placed at the bottom of the list. There is a considerable debate on the purposes and role of trade unions.groups in the society. however. In the wake of a long history of union movement and accumulated benefits under collective agreements. When the reference is to entire country. There is a serious decline in union membership in most industrialized nations. 9. newspapers etc. which bring out the poor public image of trade unions. There are two possible ways of looking at union membership figures. density is measured by comparing union members against total employment in all sectors. It is useful to take stock to see whether the trade unions in India are at the centre stage or in periphery. which will uplift the weak and downtrodden and render them the place. secure better conditions of work and life and fight against exploitation and arbitrariness to ensure fairness and equity in employment contexts.

uneconomic size. growing alienation between trade unions and membership particularly due to changing characteristics of the new workforce and waning influence of national federations over the enterprise unions. but a contractual relationship.India federation. Apart from the low membership coverage and fragmentation of the trade unions.fragmented. multiplicity of unions. financial debility and dependence on outside leadership. however. In many work places several trade unions compete for the loyalty of the same body of workers and their rivalry is usually bitter and sometimes violent. Several studies also point to a shift in employment from the organised to the unorganised sector through subcontracting and emergence of a typical employment practice where those work for the organisation do not have employment relationship. Much of the recent fragmentation. The early splits in Indian trade unionism tended to be on ideological grounds each linked to a particular political party. It is difficult to say how many trade unions operate at the national level since many are not affiliated to any all. New pattern of unionisation points to a shift from organising workers in a region or industry to the emergence of independent unions at the enterprise level whose obsession is with enterprise level concerns with no forum to link them with national federations that could secure for them a voice at national policy making levels. several studies point to a decline in membership. Unfortunately trade unionism in India suffers from a variety of problems such as politicisation of the unions. WORKERS PARTICIPATION IN MANAGEMENT Introduction: . has centered on personalities and occasionally on caste or regional considerations. inter-union rivalry.

šDepending on the socio-political environment and cultural Institute of Labour SšInternationaltudies: WPM is the participation resulting from the practices which increase the scope for employees share of influence in decision-making at different tiers of organizational hierarch with concomitant assumption of responsibility. lay-offs. automation. grievance settlement. to more institutionalized forms such as the presence of workers member on management or supervisory boards or even management by workers themselves as practiced in Yugoslavia. elevating the status of a worker in the society. may broadly be of association of workers and their representatives with the decision-making process. promotions.šThe concept of WPM is a broad and conditions. o A humanitarian act. Objectives: viewed as:šAccording to Gosep. the scope and contents of participation change. o Economic decisions methods of manufacturing. o A device for developing social education for promoting solidarity among workers and for tapping human talents. demotions. workers participation may be o An instrument for increasing the efficiency of enterprises and establishing harmonious relations. welfare measures. work distribution. mergers. o A means for achieving industrial peace and harmony which leads to higher productivity and increased production. shutdown. sanitation and noise control. Definitions: complex one. ranging from exchange of information.managerial decisions affect the workers of anyšThree groups of industrial establishment and hence the workers must have a say in it. o Personnel decisions recruitment and selection. health. consultations. questions affecting work rules and conduct of individual worker s safety. taken to cover all termsšILO: Workers participation. o Social decisions hours of work. transfers. decisions and negotiations. sharing the decision-making power withšParticipation basically means the lower ranks of the organization in an appropriate manner. o An ideological way of developing self-management and promoting industrial democracy. .

participation of workers can take place by one or all the methods listed below:šIn practice.šPeace and actions would contribute to the overall growth of the company. the o Board level participation o Ownership participation o Complete control . Scope and ways of participation: that workers or the trade unions should. main implications of workers participation in management as summarized by ILO:šThe o Workers have ideas which can be useful.šThey tend to šParticipation makes them more responsible. greater efficiency and productivity in the interest of the enterprise.šThe other view is that through their representatives. the consumers and the nation. o Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere. workers should only be given an opportunity. the workers. and o To secure the mutual co-operation of employees and employers in achieving industrial peace.šWorkers get to see how their view the decisions as `their own and are more enthusiastic in their implementation.can be cited as:šOther objectives of WPM o To improve the quality of working life (QWL) by allowing the workers greater influence and involvement in work and satisfaction obtained from work.š harmony between workers and management. sit with the management and make joint managerial decisions. as equalšOne view is partners. to influence managerial decisions at various levels. o They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas. Importance: Unique motivational power and a great psychological value.

DCM.šThe workers representative on the or she can serve as a guide and a control element. India took the initiative and appointed workers šThe Government of representatives on the Board of Hindustan Antibiotics (Pune).šHe o He or she can prevail upon top management not to take measures that would be unpopular with the employees. and a few others have adopted this practice.š associated with this method:šProblems o Focus of workers representatives is different from the focus of the remaining members of the Board. such an employees representative may feel inferior to the other members. o Because of the differences in the cultural and educational backgrounds.šHe or she tends to become o As a result. alienated from the workers. his or her role as a director may not be satisfying for either the workers or the management.šThis would be the Board can play a useful role in safeguarding the interests of workers. places them in a minority. The Tatas. and differences in behaviour and manners. And the decisions of the Board are arrived at on the basis of the majority vote.šExamples of this method are available in the manufacturing as well šAdvantage: o Makes the workers committed to the job and to the organization. o Communication and subsequently relations between the workers representative and the workers suffers after the former assumes directorship. and so forth. šDrawback: .šThis involves making o In many cases. and he or she may feel suffocated. Participation through ownership: the workers shareholders of the company by inducing them to buy equity shares. advances and financial assistance in the form of easy repayment options are extended to enable employees to buy equity shares. o He or she can guide the Board members on matters of investment in employee benefit schemes like housing.o Staff or work councils o Joint councils and committees o Collective Bargaining o Job enlargement and enrichment o Suggestion schemes o Quality circles o Empowered teams o TQM o Financial participation Participation at the Board level: highest form of industrial democracy. o Such representatives of workers on the Board. as the service sector. Hence. he or she may be less effective with the other members of the Board in dealing with employee matters. and even nationalized banks. HMT (Bangalore).

enjoyed too much of success because trade unionšSuch councils have not leaders fear the erosion of their power and prestige if such workers bodies were to prevail. the advantage of the other. o Such committees have not proven to be too effective in promoting industrial democracy.šWork committees are a legal o Such committees discuss a wide range of topics connected to labour welfare. .šWorkers acquire self-management in Yugoslavia is based on this concept.šSuch councils play a o Their role ranges from seeking information on the management s intentions to a full share in decisionmaking.šThe employees of the varied role.šThe system of gives complete control to workers to manage directly all aspects of industries through their representatives. safety committee. are not legally bišEven though these agreementsnding. Participation through Collective Bargaining: process of CB. as these councils are mostly consultative bodies. etc. each party tries to take strongest sense as inšThis process of CB cannot be called WPM in its reality. CB is based on the crude concept of exercising power for the benefit of one party. workers and the employers representatives need to bargain in the right spirit. Participation through Staff and Works Councils: representation is entirely of the employees. as well as conditions of service in an establishment. increasing productivity and reducing labour unrest. while bargaining.šFor CB to work. Participation through complete control: complete control of the management through elected boards. management and workers may reach collectivešThrough the agreement regarding rules for the formulation and termination of the contract of employment. they do have some force. o Trade unions welcome this type of participation. to thešConclusion: Complete control by workers is not an answer problem of participation because the workers do not evince interest in management decisions. o Industrial disputes disappear when workers develop loyalty to the organization.šThere may be one council for respective sections elect the members of the councils. Participation through Joint Councils and Committees: Joint councils are bodies comprising representatives of employers and employees. requirement in industrial establishments employing 100 or more workers.š o This method sees a very loose form of participation.šSelf-management šAdvantages: o Ensures identification of the workers with their organization.o Effect on participation is limited because ownership and management are two different things.šBut in practice.šStaff councils or works councils are bodies on which the the entire organization or a hierarchy of councils. o Examples of such committees are welfare committee.

welfare schemes and other policy decisions. Participation through Suggestion Schemes: Employees views are invited and reward is given for the best suggestion. Mahindra and Mahindra.iThis is WPM in that it offers freedom and scope to the as it provides onlyiBut this form of participation is very basic limited freedom to a worker concerning the method of performing his/her job.š suggestion schemes.š With this scheme. to the members. Technical problems got solved. paper-work reduction and the like.o WPM.šTwo methods of job designing job enlargement and o Job enlargement means expanding the job content adding task elements horizontally.šTraining in problem-solving techniques is provided results when correctly implemented. Participation through Job Enlargement and Job Enrichment: by-product of massšExcessive job specialization that is seen as a production in industries.šProgressive managements increasingly use the šSuggestions can come from various levels. o Experienced mixed results: iM&M (jeep division) with 76 QCs has experienced favourable results. šThe Indian Scenario: o Tried by BHEL. o Out of various suggestions. the employees interest in the problems of the organization is aroused and maintained. o Chances of QC members to get promotions are enhanced.šConcept originated in Japan in the early 1960s and has now spread work area who meetšA QC consists of seven to ten people from the same regularly to define. Godrej and Boyce among others. o Job enrichment means adding `motivators to the job to make it more rewarding.šQCs are said to provide quick. o Organization gets to enjoy higher savings-to-cost ratios. those accepted could provide marginal to substantial benefits to the company. Workers got to get out of their daily routine and do something challenging. on the other hand. analyze. and solve quality and related problems in their area.šThe rewards given to the employees are in line with the Participation through Quality Circles: all over the world. concrete. concern to him issuesšThe worker has no say in other vital issues of such as job and income security. . job enrichment are seen as methods of addressing the problems. ideas could range from changes in inspection procedures to designšThe changes. process simplification. leads to boredom and associated problems in employees. brings both the parties together and develops appropriate mutual understanding and brings about a mature responsible relationship. workers to use their judgment. acquire communication and analytical skills and improve efficiency of the work place. benefits derived from the suggestions. and impressive šAdvantages: o Employees become involved in decision-making.

control Coach. o May hire their own replacement to assume responsibility for the quality of their products or services. and may enjoy the work more. keep inventories and deal with suppliers. almost obsession. and are enjoying positive results. single task Whole process. Empowered Teams: Empowerment occurs when authority and responsibility are passed on toš the employees who then experience a sense of ownership and control over their jobs. o Frequently responsible for acquiring any new training they might need. the management needs to show itsš commitment by implementing some of the suggestions of the groups and providing feedback on the disposition of all suggestions. GE Plastics (India). the following approach needs to be followed as compared to the traditional approach:šFor empowerment Element Traditional Org. excellent bridge between participative and non-participative approaches. Wipro Corporation andš Wipro InfoTech are empowering employees both frontline as well as production staff.šEvery . ABB. Total Quality Management: the deep commitment. control and improve their work. Reliance. of an organization to quality. o May prepare their own budgets and co-ordinate their work with other departments. seniority Team-based. circles require a lot of time and commitment on the part of members for regular meetings. skill-based Job process Managers plan. control.šEmployees may feel more responsible. o Often create their schedules and review their performance as a group. brainstorming.šThese cycle one to three years. control. analysis. facilitate Leadership Top-down Shared with the team Information flow Controlled.iTrade unions look at it as: A way of overburdening workers. multiple tasks Management role Direct. may take initiative in their to occur. improve teams:šFeatures of empowered or self-directed o Empowered to share various management and leadership functions.šTQM refers to step in company s processes is subjected to intense and regular scrutiny for ways to improve it. o Plan. Empowered Teams Organizational structure Layered. improve Teams plan.šQCs can be an For QCs to succeed in the long run. may get more work done. and An attempt to undermine their role. team Job design Narrow. individual Flat. o Usually order materials.šMost QCs have a definite life o Few circles survive beyond this limit either because they loose steam or they face simple problems. work. shared Rewards Individual. etc. limited Open. Titan.

all levels of decision-making.š . communication and information. Employers are unwilling to share power with the workers representatives. they must have clearly defined and complementary objectives.šSome traditional beliefs are discarded. o High quality costs more.šFree flow of to be avoided. o Quality can be improved by inspection. o Strive to do error-free work. o Manage by prevention. Pre-requisites for successful participation: Management and operatives/employees should not work at cross-purposesš i.šThis method organization is linked to the performance of the employee.šEmployees cannot spend all their time in Limitations of participation: specialized work-roles are required. and 100% of the time.e. making each one responsible for improving quality everyday.šWorkers šTrust between both the parties. Everybody need not want participation.š promoting participative management has been fšThe role of trade unions inar from satisfactory. o Defects cannot be completely eliminated. o Measure the cost of quality. financial participation:šSome schemes of o Profit-linked pay o Profit sharing and Employees Stock Option schemes. education and training.š Managers consider participative management a fraud. o Quality in the job of the QC personnel. Financial Participation: involves less consultations or even joint decisions.šPerformance of the this is that if an employee has a financial stake inšThe logic behind the organization. Trade unions and government needs to work in this area.šWorkers should be associated at participation to the exclusion of all other work. šNew principles of TQM are: o Meet the customer s requirement on time.šTechnology and organizations today are so complex that o This means employees will not be able to participate effectively in matters beyond their particular environment. o Pension-fund participation. involvingšTQM is called participative because it is a formal programme every employee in the organization.šParticipation of outside trade union leaders šStrong and effective trade unionism. not correction. he/she is likely to be more positively motivated and involved. the first time.

Article 43-A reads: The State shall take steps. establishments or other organizations engaged in any industry. iThe team identified some reasons for their failure. to power in 1977 carried on this initiative.šThe functions of both these joint bodies were these schemes was encouraging to begin with.šIn was again emphasized by the non-statutory vein till the late 1980s. to secure the participation of workers in the management of undertakings.iShop-Floor councils enjoy powers over a wide range Establishment Council enjoys similar powers. by suitableiNow.šThe Janata Government who came Congress government who came back n 1979. the 42nd Amendment to the Constitution was made.iNo these schemes wasšDuring the emergency of 1975-77.iThe bill also provides for penalties on efforts. .Evolution of participative management in India: the Industrial Disputes Act.1990. the interest in revived by the then Prime Minister by including Workers Participation in industry in the government s 20-point programme. o Managers and the managed are forced to forget their known stands. and thešThis continued in a response from the employers and employees stayed luke-warm. o Then. on May 30. legislation. concrete steps were taken to remove the difficulties.šIn spite of all these comeback. participative management is a constitutional o And then. or in any other way. bill requires every industrial enterprise to constitute one oriThe more `Shop-Floor Councils at the shop floor level. break barriers.šThe response to o A study team was appointed in 1962 to report on the working of joint councils and committees. wastage control to safety hazards. Policy Resolution adopted by the government in 1956šThe Industrial stated that there should be some joint consultation to ensure industrial peace. to be consultative and were not binding on the management. and improve employer-employee relations.iThe bill provides for the individuals who contravene any provision of the bill. but gradually waned. Managers and workers are partners in the progress of business.šBut participative management is staging a o The compulsions of emerging competitive environment have made employee involvement more relevant than ever before.iThus. the government introduced the Participation of Workers in Management Bill in the Rajya Sabha. or change the pattern of participative management. only the government and the academicians have been interested in participative management. and`Establishment Council at the establishment level. and work in unison.šThe beginning towards WPM was made with 1947.iThe constitution of a Board of Management of every corporate body owning an industrial establishment.iThese councils will have equal representation of of functions from production. commitment in India. o The government started persuading large enterprises to set up joint consultative committees and councils at different levels. employers and employees. which made Works Committees mandatory in industrial establishments employing 100 or more workers.

According to an ILO Manual in 1960. ____BEACH Collective Bargaining is a process in which the representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement. ____ FLIPPO Collective Bargaining is a mode of fixing the terms of employment by means of bargaining between organized body of employees and an employer or association of employees acting usually through authorized agents. Able management Organizational Trade Unions with open mind. negotiations administration and interpretation of collective agreements concerning wages. Collective Bargaining involves: Negotiations Drafting Administration Interpretation of documents written by employers and the union representatives their employees. . It involves the process of union organization of employees. The essence of Collective Bargaining is bargaining between interested parties and not from outside parties .COLLECTIVE BARGAINING Collective Bargaining is concerned with the relations between unions reporting employees and employers (or their representatives). if fixes large number of detailed conditions of employees and during its validity none of the matters it deals with. internal circumstances give grounds for a dispute counseling and individual workers . a group of employees or one or more employers organization on the other. It is also asserted that the terms of agreement serve as a code defining the right & obligations of each party in their employment relations with one another. the Collective Bargaining has defined as: Negotiations about working conditions and terms of employment between an employer. hours of work and other conditions of employees arguing in concerted economic actions dispute settlement procedures . which specifies the nature of employee-employer union relationship . with a view to reaching an agreement.

Collective Bargaining is . šA procedure which determines the quantum of compensation which employee should receive and which influences the distribution of economic benefits. such as: authorityšUnion recognition as an šRaised standard of living of workers in the Company s profitšGreater share for them šDue respect to workers decision influencing their working conditionsšParticipation in settle disputes arising in day-to-day situationsšEstablishment of practices to throughout the countryšWorkers interest of employees and employers as wellšA technique for the accomplishment of the goals both societyšThey are the integral part of the freelyšIt implies agreement between representatives of management and designated representatives of employees relating to the solutions of Industrial problems with minimum government dictates.Guide for Trade Union Training Issued by the International Confederation of Free Trade Union. whether a dispute should be re-opened or whether a strike or lock-out should be resorted to or not. services and administers many of rules which governs the workers place of workšA system which establishes. after its expiry. Thus categories of Collective Bargaining are:šSingle employer bargaining. šA method of settling disputes during pendency of agreement and of determining. a) one Company and b) either one union or c) more than one union (Where there are several unions at different plants) šMulti-employer bargaining a) Employer s federation b) Workers of an industry representatives by the federation of all the trade unions (At local. regional or industry level) . Collective Bargaining is Workers Bill of Right which serves several objectives of the union. extension of the principles and practices of democracy to the industryšIn fact it is an Actually it is the beginning of Industrial Jurisprudenceš abide by certain rules rather than arbitrary decisionsšManagement to According to John T Dunlop.

safety. This only includes recommendations the ultimate decisions rests with the management. welfare and productive efficiency. Features of Collective Bargaining It is a collective process: The representative of both the management & the employees participate in it.Collective Bargaining Vs Joint Consultation Collective Bargaining is to arrive at an agreement on wages and other conditions of employment about which the parties start with divergent viewpoints but ultimately attempts to make a comprise. influencing workforce Issue related to retrenchment and lay offs Victimization of trade union activities PF. It is an attempt in achieving and maintaining discipline in industry It is an effective step in promoting industrial jurisprudence. Joint Consultation means joint councils relates to the sharing of information & suggestion with regard to the issues of common interest including health. Actually. hours of work Leave and festival holidays Bonus & profit sharing schemes Seniority and rationalism Fixation of work loads Standard of labour force Programs of planning and development. Subject matter of Collective Bargaining: Employment Relationship between the workers and the management. It means that bargaining is a day-to-day process Summer Sticher has rightly observed: It would be mistake as to assume that Collective Bargaining begins and ends with the writing of the contract. It is based on give and take approach and take or leave approach. but also the administration or application of the contract also. It is in fact a way to establish industrial democracy. It is a continuous process: It establishes regular & stable relationship between the parties involved. that is only the beginning of the Collective Bargaining It is a flexible and dynamic process: The parties have to adopt a flexible attitude throughout the process of bargaining It is a method of partnership of workers in management. gratuity and other retirement benefit schemes Incentive schemes Housing & transport facilities Issues related to discipline and stop rules Grievance proceedings Working conditions . It involves not only the negotiation of the contract. Recognition of union Wages and allowances.

leave. Purpose of agreement. medical & health services and crèches Administration of welfare funds Cooperative thrift and credit societies Educational recreational and training schemes The Indian Institute of Personnel Management suggested the following subject matter of Collective Bargaining. and the definition of important terms Rights and responsibilities of the management and of the trade union Wages. bonus. its scope. production norms. Signification of Collective Bargaining Negotiations Administration Enforcement of the written contract between employees and the employer Process of reserving labour-management conflicts It is legally and socially sanctioned way of regulating in the public interest the forces of power and influence inherent in organized labour management groups Labour legislation and machinery for settlement of disputes To promote cooperation and mutual understanding To provide strikes and lock-outs Bipartite / tripartite machinery An important solution to the problem of IRs Importance to employees Importance to employers Importance to Society Functions of Collective Bargaining šSocial change Temporary Treatyš Industrial peace --¢Peace Treaty or šIndustrial Democracy # With Combative aspects #Without Combative aspects Long run Social Change Industrial Jurisprudence(To follow laws/Rules) .Issues related to safety and accident prevention. retirement benefits and terms & conditions of service Grievance redressal procedure Methods and machinery for settlement Termination clause. Employment benefits such as canteens. occupational diseases and protective clothing.

Proper climate for mutual understanding and a common desire to reach an agreement. objective look out. Maintain continuity of Talks With good will and understanding Occasions for emotional outbursts and roadblocks likely Never to reach the dead end Side track blind alleys and keep talks continuing Even under the worst situations breaking off temporarily for scrolling down and rethinking may be necessary. production norms. No legal compulsion on either side to negotiate of a dispute. etc. The Indian Institute of Personnel Management has suggested following procedure for negotiation and Collective Bargaining between Management and Union. Correct understanding of the main issue and intimate knowledge of operations. When the main issue get confused the dust and storm raised. Better to leave controversial issues for the time being and leap over to the next issue. Basic qualities of balanced views even temper. the Industrial Relations Manager to initiate preliminary work and have initial discussions and inform the results to top management. bringing things to fundamentals will then help. working conditions. True spirit of give and take Maximum chances of success. When issue is raised by the union. If both the parties are mutually prepared results can be achieved. . As the field of agreement is widened and the field of disagreement is narrowed down. An IRM is to act as a liaison with the union members and as a bridge. analytical mind. As long as talks continue. To iron-up differences in the beginning Frank discussions. A team of senior managers to involve from the management side for discussions in matter. Inclusion of functional heads will be more beneficial. To have full authority to speak and make decisions. mutual benefits and attempts to appreciate the other parties approach/point of view for fruitful negotiations. small gaps can be bridged over more easily later. a solution will be possible. 2. 1. Thus minor issues are defused and settled peacefully.Procedure of Negotiation and Collective Bargaining Discussion between Management/workers/Trade Unions Counter-proposals followed by arguments come up. Make a good beginning Well begun is half done is true in the Collective Bargaining Steps for mutual cooperation Members in the right frame of mind. Composition of Negotiating Team: Representatives of both workers and the employees Adequate qualify job knowledge and skills for negotiations. 3.

Encourage leadership Possibilities of solution of both sides are argued. sympathy and firness Growth of healthy and strong trade unionism. Thus development of the right type of leadership is only a matter of time. Thus maintaining normal conditions and preserving in spirit of agreement in such a situation presents a tough challenge to the skill & ability of the management. At times conflict grows more serious and a situation becomes explosives. Develop a problem-solving attitude Appreciation on both the sides Better understanding Better performance and increased prosperity for future Proper discussion. 5. Bring in the other managers Contribution and involvement of other managers Collective agreement covers not just one part. 4. Right of association and fight for justice and a fair deal. United and homogeneous climate on both sides Management gets the union it deserves Principle of justice. Lack of understanding and proper communication often create problems and difficulties Discipline for management and productivity/job security for workers is important.To keep the discussion fluid is therefore very important. 7. Almost all Collective Bargaining agreements contain formal procedure to be used in resolving difference over the interpretation and application of the agreement. but the entire field of industrial activity. These are the basic difference and conflict never gets resolved. Essentials of Successful Collective Bargaining Process It is an institutionalized representative process It is a graceful retreat and to compromise It involves:a) Psychology b) Politics c) Poker (Interference in a negative way) It is a tough-minded economic calculus and horse-trading Bargaining sessions almost are unavoidably contain certain stress and strains . analyses can fluid a solution with open mind. 6. Contract Administration Once a contract is agreed upon it must be diminished Contract to specify the procedure for handling disagreement over the interpretation of different clause of the agreement. threatening discipline peace and production gets disturbed.

since contacts are regularly re-negotiated. when all other remedies have failed. Collective Bargaining is an important element It became national bargaining between two world wars In India. Dynamics of Industrial Relations Industrial Conflicts . Obstacles to Collective Bargaining in India Progress of the Collective Bargaining process is not very encouraging in India.Labour-management tensions are recurrent in nature. Several factors are responsible for this: Multiple unions Non-recognition Political orientation Defective laws Mediation by political leaders Suggestions for effective Collective Bargaining To create conditions for strong. it is not very popular in the private sector but is very popular in public sector Bipartite agreements in banks is very common practice Trade unions put forward their demands with counter demands from the management. Most of the unions and management lay emphasis on adjudication rather sorting out issues themselves. stable representative by union Recognition by the law of the trade unions Political leadership to be replaced by internal workers leadership No political interference Both management and unions should adopt peaceful means of settling disputes Adjudication to be resorted to as last resort. a) Strong and stable union b) Recognition of trade union c) Permanent bargaining machinery d) Mutual accommodation e) Political climate f) Bargainers authority Note-worth trends on Collective Bargaining Collective Bargaining was initially coined by Sydney & Beatrice Webb in 1897 Trade unionism came into existence during early 20th Century in England In USA. Coercive tactics from both sides Industry-wise bipartite committees formation Workers participation in management Collective Bargaining at various levels is feasible and effective. Following conditions must be fulfilled to make Collective Bargaining successful.

It depends whether the conflict is functional or dysfunctional (destructive) and thus hinders the performance of the organization. Positive Aspects of Conflicts It provides stability to the group concerned Workers. Conflict indicates malfunctioning within the organization and it represents management failure to bind the workers and the organization together. the conflict is an epidemic to the industrial society. same conflict is inherent in the industrial structure and in fact. Workers participation in management should encouraged There should be open two-way communication between the parties to the IRs Measures of Industrial Peace Liberal and fair management policy regarding wages and other benefits . Conflict of interests of management and labour is the progeny of the capitalist form of economic organization. the very factor of the existence of the wide cleft of authority between the Hands that Produce And Hands that Control The means of production has become a major issue and source of conflict between management and labour. When the conflicts become open. Traditionally. It is inappropriate to say that conflict is all good or bad. who do not normally accept decisions of the union leaders and management shows greater homogeneity during the strike period Conflicts brings issues in open and thus are easy to solve. Conflict is not only a positive force in a modern group but is also necessary for a group to perform effectively. collaboration and conflict between labour and management though industrial peace and harmony may be sought as an organizational objective. conflict in organizations has been viewed very negatively The classical writers believe that conflict is inherently bad and so it must be curbed.IRs are invariably a combination of cooperation. group gain power which is identified to solve the problem. it gets into public lime-light and gets public opinion and support During conflicts. It is not only the sharing of the fruits of industry that generate conflicts. Industrial Peace Cordial labour Management relations Ideal situation for industrial growth Constant vigilance is required Is just opposite to industrial unrest Preconditions for Industrial Peace Strong trade unions with democratic norms Employers to have a progressive outlook Both workers and management should have faith in Collective Bargaining & other peaceful means of settling disputes.

representative and responsible trade union Effective and mutually satisfactory measures for attaining participation of workers in the management of industrial enterprises. trade unionism. The field of industrial relations looks at the relationship between management and workers. Accordingly. The relationships which arise at and out of the workplace generally include the relationships between . Now its meaning has become more specific and restricted.Satisfactory working conditions Mutually acceptable personnel policies in respect of employees. and union-management (or labor) relations. Better employer-employee communication greater and more effective attention to employee s problem. By relations we mean the relationships that exist within the industry between the employer and his workmen. Collective Bargaining and establishment of mutually acceptable agreements defining policies. fair treatment and demonstrably impartial treatment of workers Evolution of a strong. Industrial relations are basically the interactions between employers. Industrial progress is impossible without cooperation of labors and harmonious relationships. while human resource management is a separate. industrial relations covers all aspects of the employment relationship. responsibilities and procedures for implementation of decisions. and the institutions and associations through which such interactions are mediated. Originally. Industrial relations are the relationships between employees and employers within the organizational settings. complaints and grievances and effective grievance handling machinery. From this perspective. particularly groups of workers represented by a union. Introduction To Industrial Relations Industrial relations has become one of the most delicate and complex problems of modern industrial society. and labor-management relations. The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Concept of Industrial Relations: The term Industrial Relations comprises of two terms: Industry and Relations . it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. industrial relations pertains to the study and practice of collective bargaining. employees and the government. disciplinary action and dismissal Social security and labour welfare measures to provide for the legitimate needs of workers and their families. industrial relations was broadly defined to include the relationships and interactions between employers and employees. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged . Effective measures and techniques for preservation and improvement of employees morale and motivation Healthy supervision. including human resource management. The term industrial relations has a broad as well as a narrow outlook. promotion. employee relations. Therefore.

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