MBA HR02

UNIT II

Trade Unionism
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Trade Unionism:
Trade unionism is a worldwide movement and the highly strategic position occupied by trade unions in modern industrial society has been widely recognized. In most cases, employees associations or trade unions seem to have emerged as protest movements reaching against the working relationships and condition created by industrialization.

Trade Union
According to Webb's; A trade union is a continuous association of wageearners for the purpose of maintaining or improving the condition of their working lives.

A trade union as a continuous association of wageearners or salaried employees for maintaining the conditions of their working lives and ensuring them a better and healthier status in industry as well as in the society.

ORIGIN OF TRADE UNIONS

Union oriented, mainly in Great Britain the U.S.A in the late 18th and early 19th centuries, as, associations of workers using the same skill. There is no connection between trade unions and medieval craft guilds, for the latter were composed of master craftsmen who owned capital and often employer several workers. The early unions were formed a partly as social clubs but soon became increasingly concerned with improving wages and working conditions, primarily by the device of collective bargaining.
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The Trade Union Movement in India

The trade union movements origin in a sense can be traced back to very early date to the time when villages had panchayats and guilds for settling disputes between the masters and their members. The panchayats prescribed the code of conduct which was rigidly observed by its members.

The trade union movements origin in a sense can be traced back to very early date to the time when villages had panchayats and guilds for settling disputes between the masters and their members. The panchayats prescribed the code of conduct which was rigidly observed by its members.
Many trade unions were formed throughout India. There were a number of strikes during 1919 to 1922. To this was added the influence of the Russian Revolution, the establishment of the ILO (International Labour Organisation) and the All-India Trade Union Congress.
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The labour world in India is dominated mainly by four central organization of labour.
1.

All-India Trade Union Congress (AITUC): An important event in the history of trade union movement in India was the organization of the All-India Trade Union Congress in 1920. Mr. Nehru took a prominent part in the organization of this Congress.

2. Indian National Trade Union Congress (INTUC): In May, the Indian National Trade Union Congress was organized by the Congress party on its labour front. This was formed with the help of the Hindustan Mazdoor Sewak Sangh which consisted of those who believed in Gandhian methods and had left the AITUC in 1937 under of leadership of Mr. M.N. Roy.
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3.Hind Mazdoor Sangha (HMS) : For sometime the activities of socialist leaders were coordinated by the Hind Mazdoor Panchayat. Subsequently when they left the Congress, they met in Kolkatta in December, 1948 and a new federation by the Hind Mazdoor domination by employers, Government and political parties.

4. United Trade Union Congress (UTUC): The dissidents from the Socialist Leaders Congerence held at Kolkatta in December, 1948 proceeded to establish yet another federation of trade unions in April-May 1949 under the name of United Trade Union Congress. The UTUS is more radical than HMS but less revolutionary in its objectives and policies than AITUC.
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Functions of Trade Unions

Functions relating to members

Functions relating to organization

Functions relating to the union; and Functions relating to the society.

Functions relating to trade union members:

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To safeguard workers against all sorts of exploitation by the employers, by union leaders and by political parties. To protect workers from the atrocities and unfair practices of the management. To ensure healthy, safe and conducive working conditions, and adequate conditions of work. To exert pressure for enhancement of rewards associated with the work only after making a realistic assessment of its practical implications. To ensure a desirable standard to living by providing various types of social service health, housing, educational, recreational, cooperative, etc. and by widening and consolidating the social security measures.

To guarantee a fair and square deal and social security measures. To remove the dissatisfaction and redress the grievances and complaints of workers. To encourage workers participation in the management. To make the workers conscious of their rights and duties. To stress the significance of settling disputes through negotiation, joint consultation and voluntary arbitration. The raise the status of trade union members in the industrial organization and in the society at large.

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Functions relating to industrial organization:

To highlight industrial organization as a joint enterprise between workers and management and to promote identity of interests. To increase production quantitatively and qualitatively, by laying down the norms or production and ensuring their adequate observance. To help in the maintenance of discipline. To create opportunities for workers participation in management and to strengthen labourmanagement cooperation. To help in the removal of dissatisfaction and redressal of grievances and complaints.

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To create favourable opinion of the management towards trade unions and improve their status in industrial organization. To facilitate communication with the management. To impress upon the management the need to adopt reformative and not punitive, approach towards workers faults.

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Functions relating to trade unions organization:

To formulate policies and plans consistent with those of the industrial organization and society at large. To improve financial position by fixing higher subscription, by realizing the union dues and by organizing special fund-raising campaigns. To preserve and strengthen trade union democracy. To train members to assume leadership position. To improve the network of communication between trade union and its members.

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To curb inter-union rivalry and thereby help in the creating of unified trade union movement. To resolve the problem of factionalism and promote unity and solidarity within the union. To eradicate casteism, regionalism and linguism within the trade union movement. To keep away from unfair labour practices. To save the union organization from the exploitation by vested interests personal and political. To continuously review the relevance of union objectives in the context of social change, and to change them accordingly. To prepare and maintain the necessary records. To manage the trade union organization on scientific lines.

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Problems of Trade Union

The following are some of the most important problems of the trade unions in India: 1. Multiplicity of Trade Unions and Inter-union Rivalry 2. Small Size of Unions 3. Financial Weakness 4. Leadership Issues 5. Politicalisation of the Unions 6. Problems of Recognition of Trade Unions
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UNIONS IN THE ERA OF LIBRALIZATION

Before Liberalization State sponsored and state mediated development Protected domestic market Budgetary and directed institutional resource allocation Subsidies and administered price regime Welfare state active in labour market Systematic de-casualization of jobs Largely government-funded social security and welfare programmes for a few Stable governing structure and policy regime Stable, though obsolete, labour intensive technologies Dominant status of manufacturing

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After Liberalization
Market led and private enterprise dominated Competitive market Competitive, capital market-led resource allocation Rational pricing, including user changes Labour-neutral and investment friendly state policies Fast re-casualization and contractualization of jobs Crisis of sustainability of social security welfare programmes and pressure for security measures for all. Crisis of governance and fear of political and economic instability Micro-electronics-led new generation capital and skill intensive technologies Threat of industrialization and rapid growth of service sector
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Labour Problem: Misconduct & Discipline

Misconduct occurs when an individual violates a rule, regulation or policy of the Organisation. Discipline is the practice of training people to obey rules or a code of behaviour, using punishment to correct disobedience.

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Forms of Indisciple/misconduct
Unauthorized strike Dunk while at work Off the job criminal activities Use of abusive language Gambling Leaving work place without permission Smoking in unauthorized places carelessness Unexcused absence from work Unexcused or excessive lateness

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The main aims and objectives of discipline are:

To obtain a willing acceptance of the rules, regulations and procedures of an organisation so that organizational objectives can be attained; To develop among the employees a spirit of tolerance and a desire to make adjustments; To give and seek direction and responsibility; To create an atmosphere of respect for human personality and human relations; To increase the working efficiency morale of the employees; and To impart an element of certainty despite several differences in informal behaviour patterns and other related changes in an organisation.

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GRIEVANCE
A grievance is a sign of the employees discontent with job and its nature. It is caused due to the difference between employee expectation and management practice. Jucius defines a grievance as any discontent or dissatisfaction, whether exposed or not, whether valid or not, arising out of anything connected with the company which an employee thinks, believes or even feels to be unfair, unjust and inequitable.
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Areas of Grievances
1. Grievances resulting from working conditions. 2. Grievances resulting from management policy and practices. 3. Grievances resulting from alleged violations &

4. Grievances resulting from personal maladjustment

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GRIEVANCES HANDLING PROCEDURE

It is important that grievance must be handled in a systematic manner. The following steps should be taken in handling grievances:

Defining, describing or expressing the nature of the grievances as clearly and fully as possible; Gathering all facts that serve to explain when, how, where, to whom and why the grievance occurred; Establishing tentative solutions or answers to the grievances; Gathering additional information to check the validity of the solutions and thus ascertain the best possible solution; Applying the solution, and Following up the case to see that it has been handled satisfactorily and the trouble has been eliminated.

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LABOUR TURNOVER
Labour turnover refers to the movement of employees in and out of a business. "The ratio of the number of employees that leave a company through attrition, dismissal, or resignation during a period to the number of employees on payroll during the same period".

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Measuring labour turnover

The simplest measure involves calculating the number of leavers in a period (usually a year) as a percentage of the number employed during the same period. This is known as the "separation rate" or "crude wastage rate" and is calculated as follows:

Number of leavers / average no employed x 100

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Like
For example, if a business has 150 leavers during the year and, on average, it employed 2,000 people during the year, the labour turnover figure would be 7.5%

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Causes of labour turnover

(1) Personal causes: Workers may leave the organisation purely on personal grounds. These may be Death, Family problems and responsibility, Personal betterment and Retirement. (2) Avoidable causes - These include: (i) Dissatisfaction with jobs, (ii) Dissatisfaction with remuneration, (iii) Bad working conditions, (iv) Odd hours of work, (v) Lack of incentives and promotional avenues, (vi) Lack of adequate recreational facilities, (vii) Inadequate housing and medical facilities, (viii) Poor worker-supervisor relationship, (ix) Poor group relations, (x) Discrimination between one worker and another, etc.
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(3) Unavoidable causes - Unavoidable causes may be personal or impersonal.

These include: (i) Personal betterment, (ii) Retirement, death or disablement, (iii)Domestic responsibilities, i.e., to look after old parents, (iv)Discharge due to factors like unsuitability, insubordination, and negligence, (v) Marriage in case of women workers, etc. Every organisation must see that leaving due to avoidable causes is prevented.

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ABSENTEEISM

Absenteeism is a habitual pattern of absence from a duty or obligation.

High absenteeism in the workplace may be indicative of poor morale, but absences can also be caused by workplace hazards or sick building syndrome.

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Causes of Absenteeism
7. 1. 2. Transportation problems The existence of income protection plans (collective agreement ) Benefits which continue income during periods of illness or accident.) Stress Workload Employee discontent with the work environment Serious accidents and illness Low morale Poor working conditions Boredom on the job Lack of job satisfaction Inadequate leadership and poor supervision Personal problems (financial, marital, substance abuse, child care etc.) Poor physical fitness

3.

8. 9. 10. 11. 12.

13.

4. 5. 6.

14.

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Measures to Control Absenteeism

1.Proper Hiring 2. Good working condition 3. Housing and Transport facilities 4. Safety programmes 5. Incentives 6. Effective supervision 7. Disciplinary Action 8. Regular leave provision 9. Employee Counselling 10.Proper Records

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WORKERS PARTICIPATION IN MANAGEMENT

According to Keith Davis, Participation refers to the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share the responsibility of achievement.

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5 levels of Management Participation or WPM:

a. b. c. d. Information participation Consultative importance Associative participation Administrative participation

e.

Decisive participation

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Objectives of WPM:

1. 2. 3.

To establish Industrial Democracy. To build the most dynamic Human Resources. To satisfy the workers social and esteem needs.

4. To strengthen labour-management co-operation and thus maintain Industrial peace and harmony. 5. To promote increased productivity for the advantage of the organization, workers and the society at large.

6. Its psychological objective is to secure full recognition of the workers.

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Strategies / Methods / Schemes / Forms of WPM: 1. Suggestion schemes:

Participation of workers can take place through suggestion scheme. A suggestion box is installed and any worker can write his suggestions and drop them in the box. Good suggestions are accepted for implementation and suitable awards are given to the concerned workers. Suggestion schemes encourage workers interest in the functioning of an enterprise.

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2. Works committee:
Under the Industrial Disputes Act, 1947, every establishment employing 100 or more workers is required to constitute a works committee. Such a committee consists of equal number of representatives from the employer and the employees. The main purpose of this committee is to provide measures for securing and preserving amity and good relations between the employer and the employees.

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4. Work directors:
Under this method, one or two representatives of workers are nominated or elected to the Board of Directors. This is the full-fledged and highest form of workers participation in management. The basic idea behind this method is that the representation of workers at the top-level would usher Industrial Democracy, congenial employee-employer relations and safeguard the workers interests. The Government of India introduced this scheme in several public sector enterprises such as Hindustan Antibiotics, Hindustan Organic Chemicals Ltd etc.

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5. Co-partnership:
Co-partnership involves employees participation in the share capital of a company in which they are employed. By virtue of their being shareholders, they have the right to participate in the management of the company. Shares of the company can be acquired by workers making cash payment or by way of stock options scheme. The basic objective of stock options is not to pass on control in the hands of employees but providing better financial incentives for industrial productivity. But in developed countries, WPM through co-partnership is limited.

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6. Joint Councils:
The joint councils are constituted for the whole unit, in every Industrial Unit employing 500 or more workers, there should be a Joint Council for the whole unit. Only such persons who are actually engaged in the unit shall be the members of Joint Council. A joint council shall meet at least once in a quarter. The decisions of the Joint Council shall be based on the consensus and not on the basis of voting.

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7. Shop councils:
Government of India on the 30th of October 1975 announced a new scheme in WPM. In every Industrial establishment employing 500 or more workmen, the employer shall constitute a shop council. Shop council represents each department or a shop in a unit. Each shop council consists of an equal number of representatives from both employer and employees. The total number of employees may not exceed 12.

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