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Business Challenges in the Globalization Context Chaotic competition Radical changes Abundant opportunities Strategic alliance Complexity/ uncertainty

Flexibility Customer focus People management focus

Economic reforms
Economic reform process was initiated by Late P.V. Narasimha Rao & further strengthened by late Rajiv Gandhi Gained momentum in 1991 & was adopted as LPG (Liberalization, Privatization and Globalization)

Result :

* Reduction of labor force

* Decentralization of production process * Sub-contracting of various operations to small business

IR - paradigm shift
Recent trends in IR Forces of Globalization in 90s: strategic role for industrial relations (IR) within the enterprise. Challenges for IR HRM presents a challenge to IR, because it can operate to undermine the role of trade unions at enterprise level by emphasizing the primacy of the relationship between managers and individual workers. Changing nature of IR IR in the global context, as influenced by the forces of globalization (LPG) Rationalization of Operations Core functions : Sub-contracting /outsourcing of noncore or peripheral areas Technology substitution for Labor & Automation Downsizing . Strategic alliance & mergers. Employment environment for workmen unstable.

Recent Trends in Industrial Relations

The refusal of managements to recognize trade unions has been the trigger for successive instances of industrial disputes. Sometime ago, a workers' agitation in the plant of Graziano Italiano in Greater Noida over the refusal to recognize a workers' union ended with the company's managing director being killed. All these disputes highlight the legislative gaps in workers' freedom of association as well as India's reluctance to ratify international labor conventions on the issue. Since there is neither a law for recognition of trade unions nor a procedure to verify membership, it is not necessary for an employer to go by secret ballot to verify the majority union. Industrial scenario vitiated by Lack of values, Class struggle & unhealthy compromises Management considers Trade Unions with external/political leader as nuisance or a hurdle and prefer to promote internal/ plant level representative mechanism Trade union on the other hand considers management and managers as Exploiters. The trade unions are organs of political organizations and they follow the ideologies of those organizations even at the cost of their own interest in the industry. The collective bargaining ends in either aggressive bargaining or futile waste of time

Land Mark Judgments of the decade between 1997 & 2007

2007 - Workman has to prove 240 days working in a year to claim relief under ID act 1947 2005 - Dismissal justified for sleeping during duty hours. 2004 - A teacher is not employee, hence not entitled to gratuity. 2003 - Back wages on reinstatement is not automatic. 2002 - Termination of workman engaged for specific period will not be retrenchment. 2001 - Abandonment of employment by an employee without holding of enquiry will not be permissible. 2000 - Contract labour will not be automatically absorbed on its prohibition by Government. 1999 - Unless the service rules so provide a workman cannot be represented by an advocate in an enquiry. 1998 - Non-furnishing of enquiry report to employee on dismissal will not vitiate the same. 1997 - No wages to employees when they resort to illegal strike

Supreme courts observations on contract labor engagement:

Globalization cannot

be at the human cost of exploitation of workers

The Supreme Court deprecated the unfortunate state of affairs prevailing in the field of labor relations in the country wherein employers often resorted to contract employment and thereby curtailed the statutory rights of workers. A Bench of Justices Markandey Katju and C.K. Prasad in its judgment said: In order to avoid their liability under various labor statutes, employers are very often resorting to subterfuge by trying to show that their employees are, in fact, the employees of a contractor . It is high time that this subterfuge comes to an end.

Evil effects of outside leadership and multiplicity of union

Outside leaders have hijacked the trade union movement right from the beginning. Absence of strong leaders from the ranks of workers has resulted in inability to represent woes of workers in a forceful manner. The presence of towering political personalities willing to serve the cause of workers?? Illiteracy of workers, by and large, has contributed to this peculiar phenomenon. Inability to remain a responsible & strong union capable of delivering win win?? Weakening of the overall goals for which unions exist Coming in the way of nurturing strong leaders from the ranks of workers Inability to understand the problems of workers Inhibiting the development of one union in one industry Personal agendas of leaders gaining priority over workers & overall interests Multiple unions: This comes in the way of a healthy and democratic growth of labour /union movement in the industry . The presence of splinter unions is always to detrimental to industrial peace.

Fading Trade union activism - A reality

Of late, trade unions have been pushed to the wall due to factors such as:
Global competition, Restructuring exercises carried out by companies from time to time just to survive, Rising costs of manufacturing, Lack of support from the general public and the government; Privatization, failure to deliver results in case of a prolonged battle etc. Trade Unions And Employers Associations Current Trends In Trade Unionism Paradigm shift strong reasons Militancy does not pay Political base shrinking Public sympathy disappearing Jobs vanishing at an alarming rate Membership figures sinking

Develop leaders from the ranks of workers Design your own mechanism ( in the absence of legislation for union recognition)for according recognition as sole bargaining agent / Representative Union on the basis of strong membership figures, in pursuit of promoting one union one industry policy Plant level Unions - Employer to train and develop members of union in mutual interest Obtain data on wages and conditions of work in industries attached to them and evolve bench mark. Take up projects for social and family welfare for workmen

Focus on safety and health at work place and working environment.

Initiate steps to improve public image and improve public relations. Educate the public regarding the character, scope, importance and needs of industry ,

Keep off external forces against surreptitious hijacking ,by constant vigilance and intelligence.

A Re-look at IR objectives - A compulsion

To bring better understanding and cooperation between employers and workers. To establish a proper channel of communication between workers and management. To ensure constructive contribution of trade union operating in the units. To avoid industrial conflicts and to maintain harmonious relations. To safeguard the interest of workers and the management. To work in the direction of establishing and maintaining industrial democracy. To ensure workers involvement in companys growth activities To increase the morale and discipline of workers. To ensure better working conditions, living conditions and reasonable wages. To develop employees to adapt themselves for technological, social and economic changes. To make positive contributions for the economic development of the country. To reach out to family members of the society to win their emotional support.