• Industrial relations encompasses a set of phenomena, both inside and outside the workplace, concerned with determining and regulating employment relationship • Relationship between management and employees or among employees and their organization that characterize and grow out of employment.

Theories and Concepts Used to Analyse Industrial Relations
Approaches Used to Define Industrial Relations (1)


Institutional-based definitions: industrial relations are the sum of institutional processes that establish and administer the rules regulating workplace relations
Social Psychology-based definitions: industrial relations are the sum of social psychological interactions between individuals Class-based definitions: industrial relations are the sum of institutions, interactions and processes that are a product of wider social and economic influences, in particular the class divisions of contemporary capitalism



Approaches Used to Define Industrial Relations (2) definitions that seek to include all matters contained in the first three definitions within other terms: (4) Human Resource Management: contracts of employment (involving trade unions, worker collectives, labour courts and government agencies), as well as management of conflict arising out of the personal interactions of individuals in the workplace, are part of labour management functions ( i.e. recruitment, selection, training, development, performance management, and so on) (5) Employment Relations (or Employee Relations): contracts of employment (involving trade unions, worker collectives, labour courts and government agencies), as well as the management of conflict arising out of the personal interactions of individuals in the workplace, are part of workplace relations, together with the normal functions of Human Resource Management.

• • • • IR arise out of employer employee relations IR is a web of rules: formed by the interaction of Govt, industry & labor IR is multi dimensional: influenced by complex set of institutional. economic & technological factors IR is dynamic and changing: keep pace with employee expectations, trade unions, employer associations and other economic and social institutions of society IR is characterized by forces of conflict and compromise. Individual differences and disagreements resolved through constructive means. Govt influences and shapes IR: with its laws, rules, agreements through executive and judicial machinery Scope of IR is very wide as it covers grievances, disciplinary measures ethics, standing orders, collective bargaining, participatory schemes and dispute settlement mechanism etc Interactive and consultative in nature: in resolving conflict,controversies and disputes between labor and management.

• • •

• IR are multifaceted in nature. • Various factors influence these. • IR is the result of composite attitudes & approaches of both the Management and the Workmen. • Attitudes of both in turn depends upon the perception of both the parties. • Perception of the same person differs as per his position-Management vs union leaders

• Both less appreciative and sensitive about each others position. • Both may see each other as less dependable. • Perception differs from person to person; place to place; time to time and situation to situation. • Every individual in an organization is guided by various needs in addition to economic needs.

• • • • • • • Self actualization needs Esteem needs Love needs Safety needs Physiological need Need for growth Economic needs

Frustration Aggression

• Since behavior has a cause –effect relation ,the result would be complex attitudes and approaches and ultimately conflicts and uncordial IR. • Collective bargaining • Trade unions becoming very powerful on the IR scene. • Intra union and inter union rivalaries. • Trade union conflicts.

• In the present context of stresses and strains in IR. • HR approach is the only alternate to improve relations in the industry. • Business organizations paying more attention to the human needs of the working class. • Labor welfare programmes and voluntary labor welfare schemes widely implemented.

• Labor welfare officers are becoming more and more important. • Dr Michael- Management By Love • It is a policy of winning over the workforce by affectionate forgiveness of their pitfalls, wherever possible and providing to their actual needs.

• An attitude is a hypothetical construct that represents an individual's degree of like or dislike for something. Attitudes are generally positive or negative views of a person, place, thing, or event— this is often referred to as the attitude object. People can also be conflicted or ambivalent toward an object, meaning that they simultaneously possess both positive and negative attitudes toward the item in question. • Attitudes are judgments. Most attitudes are the result of either direct experience or observational learning from the environment • Jung's definition of attitude is a "readiness of the psyche to act or react in a certain way

• A positive attitude in the workplace can help you whether you own your own business, work as an employee, or manage others within a business environment. You’ll enjoy your work more and achieve your workplace or business related goals more easily and faster.

• • • Meetings in which most of the discussion is on what is going wrong rather than about ideas on how to solve the problem. Upper management seems to care only about how they are measured (usually by short-term profits) rather than about the long-term success of the company. Employees backstab each other in attempts to “get ahead” in the company.

People leave their workplace at the end of the day feeling drained and lifeless from all the negative energy. Customers receive poor service due to the negativity of the company representatives. These customers do not become repeat customers or refer new customers. General conversations occur around the workplace almost daily in which people complain to each other about how this, that, or the entire company is doomed to fail. Or about how much they “hate working here.”

A positive attitude in the workplace can make a big difference...
• • • • • Career success Stress reduction Less sick days and better productivity: Improve customer relations and improve sales Improve the attitude of other employees or those who report to you • Improve teamwork

A positive attitude in the workplace can make a big difference...
• Improve motivation for yourself and others • Improve decision-making and overcome challenges • Improve Interpersonal Relations

• Perception is our sensory experience of the world around us and involves both the recognition of environmental stimuli and actions in response to these stimuli. Through the perceptual process, we gain information about properties and elements of the environment that are critical to our survival. Perception not only creates our experience of the world around us; it allows us to act within our environment.

• Perception includes the five senses; touch, sight, taste smell and taste. It also includes what is known as proprioception, a set of senses involving the ability to detect changes in body positions and movements. It also involves the cognitive processes required to process information, such as recognizing the face of a friend or detecting a familiar scent


Factors influencing perception
A number of factors operate to shape and sometimes distort perception. These factors can reside in the perceiver, in the object or target being perceived or in the context of the situation in which the perception is made.


Organizational Behavior / Perception

• Factors influencing Perception
Factors in the perceiver • Attitudes • Motives • Interests • Experience • Expectations

Factors in the situation • Time • Work Setting • Social Setting


Factors in the Target • Novelty • Motion • Sounds • Size • Background • Proximity • Similarity

Organizational Behavior / Perception

Figure-Ground Illustration
• Field-ground differentiation
– The tendency to distinguish and focus on a stimulus that is classified as figure as opposed to background.


Organizational Behavior / Perception


Organizational Behavior / Perception


Organizational Behavior / Perception


Organizational Behavior / Perception


Organizational Behavior / Perception


Organizational Behavior / Perception


Organizational Behavior / Perception

• Conflicting situation- Approach could be avoiding • Or compromising • Adjusting • Revolting


Employment Relations
Dunlop’s model









WORKERS and their ORGANIZATIONS( Trade Unions or Associations ) • • • • • Trade unions have a protecting role of safeguarding workers interests, Regulating function of ensuring implementation of statutes / Acts Ensuring non-violation of worker’s rights Trade Union Act provides Status and Authority for the power vested in them This power is used for negotiating Wage Interests, better benefits and service conditions, concessions, more amenities and welfare schemes Structure of Workers’ organization or Trade unions differs from country to country

An organization is represented through officials designated in the organization structure for coordination of activities relating to: • • • • Administering employee benefits Regulating terms and condition of employment Providing welfare and social security benefits Coordination is done through graded hierarchical and formal communication channels of orders and directives • Style and manner in which employer organizations get work and regulate the terms and conditions of employment affects the industrial relations of the unit.

• Govt or state machinery regulates the relationship between workers’ organizations and employers’ organizations. • It does it through : - Statutes and legislations, - The judiciary- labor courts industrial tribunals - An executive machinery- that lays down rules, procedures and gives awards and monitors them

• The Industrial Disputes Act, 1947 provides for setting up of Labour Courts, Industrial Tribunals and National Tribunals. • Labour Courts deal with matters pertaining to discharge and dismissal of workmen, application and interpretation of Standing Orders, propriety of orders passed under Standing Orders, legality of strikes of lock outs etc. • Industrial Tribunals deal with collective disputes such as wages, hours of work, leave, retrenchment, closure as well as all matters which come under the jurisdiction of Labour Courts • The Central Government may set up a National Tribunal for adjudication of industrial disputes which in its opinion involve questions of national importance or are of such nature that industrial establishments in more than one State are likely to be interested in such disputes.


• Social security is one of the key components of labor welfare • Labor welfare refers to all such services, amenities and facilities to the employees that improve their working conditions as-well-as their standard of living • Social security benefits provided by an organizations should protect not only their employees but also their family members including financial security and health care etc • Social security envisages that the employee shall be protected against all types of social risks that may cause undue hardship to them in fulfilling their basic needs. • Accidents, job losses, retirement, sickness, death while on dutythese are realities of working life and leave a person and his dependents vulnerable • Social security is an attempt by the employer and the state for the institute measures that mitigate such social risks

• Social Security for employees is a concept which over time has gained importance in the industrialized countries. Broadly, it can be defined as measures providing protection to working class against contingencies like retirement, resignation, retrenchment, maternity, old age, unemployment, death, disablement and other similar conditions.

With reference to India, the Constitution levies responsibility on the State to provide social security to citizens of the country

Social security to the workers is provided through 5 major Acts: 1. 2. 3. 4. 5. • • The Employees State Insurance act, 1948 Employees’ provident Fund and Miscellaneous provisions Act The Worker’s Compensation Act The Maternity Benefit Act The payment of Gratuity Act In addition there are large number of welfare funds also for some specific segments Major thrust of social security relating to labor is on: a) Provisions relating to medical facilities, compensation benefits and insurance coverage incase if accidents, incapacity, illness etc.. b) Provisions relating to provident fund and gratuity

• National Rural Employment Guarantee Act, 2005, • Unorganised workers social security act ,2008 • Domestic Workers (Registration, social security and welfare) Act, 2008

• The Workmen’s Compensation Act, aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen. WHO IS A WORKMAN Workman means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employer’s trade or business) who isi. a railway servant as defined in section 3 of the Indian Railways Act, 1890 not permanently employed in any administrative, district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II, or ii. employed in any such capacity as is specified in Schedule II, Whether the contract of employment was made before or after the passing of this Act and whether such contract is expressed or implied, oral or in writing. The provisions of the Act have been extended to cooks employed in hotels, restaurants using power, liquefied petroleum gas or any other mechanical device in the process of cooking.

• The object of maternity leave and benefit is to protect the dignity of motherhood by providing for the full and healthy maintenance of women and her child when she is not working. • Under the Maternity Benefits Act of 1961, you're entitled to maternity benefits at the rate of your average daily wage for the period of your absence, for a maximum period of 12 weeks (6 weeks before delivery and 6 weeks after). You can only claim this compensation though if you have worked at least 80 days for your employer in the last 12 months. The average daily wage means the average of your wages during the three month period immediately before your maternity leave starts. If you miscarry, you are entitled to six weeks of leave and wages.

• A female member of the service on a adoption of a child may be granted leave of this kind for a period not exceeding 60 days . • This facility will not be available for an adoptive mother who is already having two living children at the time of adoption. • Commuted Leaves • Child less then 1 months-upto 1 year • 6 months or more- up to 6 months • 9 months or more- up to 3 months

• Male staff with less then 2 children may be granted 15 days paternity leaves during the confinement of his wife for child birth. • The paternity leaves may be availed for 15 days before or up to 6 months from the date of the delivery of the child. • During paternity leave ,salary equal to last pay drawn is admissible.


• An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments • It extends to the whole of India: • Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir.

• Gratuity is a lump sum amount that your employer pays you when you retire or resign from the organization. An Employee does not contribute any portion of his salary towards this amount. Gratuity is paid out at the time of superannuation (if you retire at the age of 58), when you retire (at any other age) or resignation, and in the event of your death or being rendered disable because of an accident or illness. You need to have at least five full years of service with an employer to qualify for gratuity. • In the event of your death, the gratuity will be paid to your nominee. Gratuity shall be calculated as per the below formula Gratuity = Last drawn salary x ½ x No. of years of service

• For computation of gratuity, your service period will not be rounded off to the nearest full year. While calculating completed years, any fraction of the year will be ignored. For instance, if the employee has a total service of 20 years, 10 months and 25 days, only 20 years will be factored into the calculation.

PF(Provident fund)
• Provident fund is a scheme by the Government of India by which: * A fixed percentage is deducted from your salary and * A fixed percentage added by the company This amount is kept in an account, which accumulates and is then received back after retirement.

PF(Provident fund)
• Provident fund is basically a retirement benefit scheme. Under this scheme a stipulated sum is deducted from the salary of the employee as his contribution towards the fund. The accumulated sum along with the interest is paid to the employee at the time of his retirement or resignation. In case of death of the employee the accumulated balance is paid to his legal heirs.

• This act may be called the ESI,1948 Act • It extends to the whole of India. • An act to povide for certain benefits to employees in case of sickness,maternity and employment injury and to make provisions for certain other such matters. • It shall apply in the first instance to all factories ( including factories belonging to the govt) other then the seasonal factories.


• NREGA is designed as a safety net to reduce migration by rural poor households in the lean period by providing hundred days of guaranteed unskilled manual labour when demanded on water conservation, land development & drought proofing works.


The Employment Guarantee Act is a step towards the right to work , as an aspect of the Fundamental right to live with dignity.

• The State has a direct interest in preserving industrial peace in a country and, therefore steps have been taken by the State to promote a healthy growth of trade union and a well organised industrial relations machinery to achieve industrial peace and prosperity with the twin object of reducing production losses due to industrial disputes; and of assisting employers and workers towards the settlement of industrial conflicts through the machinery of conciliation

• Where labour organisation, however numerous, were relatively weak and there was, a profound distrust of the employer as profit-seeking exploiter, the Government had to play a major role in delineating certain parameters of industrial relations.

• When the labour situation worsens or law and order situation gets out of hand, the State cannot be expected to be a silent spectator. As the guardian of he people, and of the economy of the country, it has to intervene and adopt industrial relations policies which are likely to ensure social justice and industrial peace.

• The federal nature of Constitution made it imperative for the State to intervene in labour matters to ensure smooth and continuing production. These included the Plantations Act, 1952; the Minimum Wages Act of 1984; the Industrial Disputes Act, 1947, the Payment of Bonus Act 1965; the Contract Labour (Regulation and Abolition Act, 1970; the Payment of Gratuity Act, 1972; the Bonded Labour System (Abolition) Act, 1974; and the Equal Remuneration Act, 1976.

• The Directive Principles of he Constitution, enjoined upon the State to establish a 'Welfare State' and to look after the interests of the weakest sections of society, including the handicapped

• India being a welfare state has taken up itself the responsibility of extending various benefits of social security and social assistance to its citizens. • Although the constitution of india is yet to recognize social security as a fundamental right, it does require state to promote the welfare of the people by providing social, economic and political justice • Constitution requires companies to make effective provisions for securing right to work, to educate and public assistance in case of unemployment, old age, sickness and disablement. Securing just and humane conditions of work. Raise level of nutrition and standard of living, improvement of public health etc • A social security division has been set up under the ministry of labor and employment. • In the context of labor , social security aims at reducing risks against loss of earnings or earning capacity due to old age, illness or work-related injuries.


• • • • •

Attitudes of management to employees and unions Attitudes of employees to management and unions Attitudes of unions to unions to management and employees Present and likely future strength of unions Effective and agreed procedures for discussing and resolving grievances or handling disputes within the company

• • • •

Inter union rivalries in case of more than one union
Effectiveness and capability of managers and supervisors in resolving grievances and handling disputes. Company's strategy wrt expansion, diversification, contraction , stabilization, turnaround and stagnation etc Quality of work life ( QWL), growth and developmental opportunities Degree of Autonomy and Empowerment given to employees

FACTORS AFFECTING EMPLOYEE RELATIONS • EXTERNAL FACTORS: • The extend to which bargaining is carried out at national, local or plant level • The effectiveness of any national or local procedure agreements that may exist • Employment situation nationally or locally • Legal framework within which IR exists

• Of course mainly concerned with Employeremployee relations. • Relations between workers themselves& various groups in the industry. • Public relations • Community relations – Relations between industry and society

• Management – Union relationship • Effect of extraneous factors like state, sociopolitical- economic factors on workplace relationships

• Ratan Tata-26/11

Vedanta mining project in Orissa rejected
• Vedanta bauxite mining project in Orissa has been sealed with Environment Ministry rejecting the project, saying forest laws have been violated. • Vedanta resources had seriously violated various forests acts • Environment clearance has not been given to its 1.7$ Billion bauxite mining projects in Orissa.

• • • • Maintain a cordial atmosphere in the industry. Facilitate production and industrial growth. Safeguards the right of the workers. Safeguards the prestige & interest of the Management. • Mutual acceptance of the legitimacy of each others role. • Mutual perception of interdependence

• IR is the best weapon for ensuring individual development in the industry, if utilized properly. • Enables both Management and workers to establish a link between each other (manpower adaptation to the working environment) • Sense of belonging amongst the workers & sense of responsibility in the Management

• Maximum individual development • Desirable working relationships –Employers Vs Employees and between the employees • Effective adaptation of the human resources as per the need. • Relating man effectively to his environment.

• Establishing and maintaining good personal relations in the industry. • Ensuring manpower development. Making a mutual link between various personnel especially between the Management and the workers. • Creating a sense of belonging in the minds of the workers. • Creating a sense of responsibility in the minds of employers/Management

• Creating mutual affection, respect and regard. • Establishing a good industrial climate of peace and prosperity. • Stimulating production as well as industrial and economic development. • Maximizing social welfare • Healthy and effective government interventions in the labour Management relations.

• Scope of IR not confined to common labour management relations or the employeremployee relations or the Union Management Relations. • Scope of IR is very vast since their functions are manifold.

• Of course the primary function is to establish cordial relations between the Management and the workers. • To bridge the gulf between the employers and the employees. • To establish a pipeline between the workers and the Management. • To establish rapport between the Management and the Managed

• • • • To enhance economic status of worker To avoid industrial conflicts and their consequences To extend and maintain industrial democracy To provide an opportunity to the worker to have a say in the management decision making • To regulate production by minimizing conflicts • To provide forum to the workers to solve their problems through mutual negotiations and consultations with management • To encourage and develop trade union in order to develop workers collective strength

• To establish and maintain cordial relations between the workers and their employers. • To ensure creative contribution of the trade unions. • To avoid industrial conflicts. • To maintain harmonious relations which are essential for production efficiency.

• To safeguard the interests of both the workers and the Management. • To avoid unhealthy atmosphere in the industry, especially direct actions like strikes,lockouts,gheros etc • To raise industrial productivity and ultimately contributing to the economic development of the country. • To ensure better workers participation in involvement in the production process.

• To bring about government control over the industrial scene etc. Thus good industrial relations can work as an effective weapon in the hands of both management and workers as well as in the hands of the government.

• Sometimes it appears that IR has become just a formality in India. Many of the objectives of IR are seldom achieved especially because of some inherent limitations. • Many of the healthy factors expected of IR in India are amazingly lacking. • Competition and class struggle are very common scene here.

• Individual gains are more valued then collective gain or social good. • The core values of India's IR systems appears to be competition, class struggle and compromise. • Key parties maximize gains at the cost of others by making use of their power and strength. • Employers consider trade unions and their leaders as nuisance/ hurdles


• Trade unions consider employers as exploiters • Workers misled by their trade union leaders making use of the collective strength of the trade union movements for their self interest. • Most of the trade unions are the organs of political organisations,where ordinary workers are compelled to follow blindly what their leaders decide.

• Collective bargaining becoming compelled bargaining. • General tendency among the Management that even the just and realistic grievances of the working class should wait for their mercy.

• Approaches of both the Management and the workers create a wide gulf between them. • Unless differences sorted, cannot think of establishing healthy IR climate in India.


What is a Trade Union?
• Definition: An organization of workers or employees formed mainly to _ Negotiate with the employers on various employment related issues – Improve the terms and conditions at their workplace – Enhance their status in society • In most countries, there are laws governing the formation, membership and administration of trade unions.

Trade Unions
• Acc to the Trade Union Section 2(h) of the Trade Unions Act, 1926 "Trade Union" means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business • Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices.

1. UNITY: Unity is strength

2. EQUALITY: Workers must not be discriminated wrt caste, creed, sex etc.
Each worker should get equal pay for equal work

3. SECURITY: Security of their employment
and their families must be safeguarded


• •

• •

It is an organisation formed by employees or workers. It is formed on a continuous basis It is formed to protect and promote all kinds of interests –economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic. It includes federations of trade unions also. It achieves its objectives through collective action and group effort

Objectives of Trade Union
1. Collective bargaining
– Represent members to negotiate with employers, for better wages and working conditions of employment. . To secure welfare of employees through group schemes which give benefit to every employee

2. Safeguard jobs
– Protect jobs of members

3. Cooperate with employers
– For the benefits of members, resolve disputes in a mutually acceptable manner

Objectives of Trade Union
4. Political activities

Support pro-union political parties
Support members with recreation facilities and benefits for unemployment, illness, retirement, death

5. Social activities

6. Economic Benefits
-To secure bonus for the employees from the profit of the concern, To resist schemes of the management which reduce employment, e.g., rationalisation and automation.

• • • • (a) (b) (c) (d) Representation Negotiation Voice in decisions affecting workers Member services Education and training Legal assistance Financial discounts Welfare benefits

Functions of Trade unions
• Militant functions (a) To achieve higher wages and better working conditions (b) To raise the status of workers as a part of industry (c) To protect labors against victimization and injustice • When the unions fail to accomplish these aims by the method of collective bargaining and negotiations, they adopt an approach and put up a fight with the management in the form of so-slow, strike, boycott, gherao, etc. Hence, these functions of the trade unions are known as militant or fighting functions.

Fraternal functions
• These are another set of activities performed by trade unions that aims at rendering help to its members in times of need, and improving their efficiency. • To take up welfare measures for improving the morale of workers, e.g., school for the education of children, library, reading-rooms, in-door and out-door games, and other recreational facilities • 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 • Trade unions try to foster a spirit of cooperation and promote friendly relations and diffuse education and culture among their members

Fraternal functions
• They also arrange for legal assistance to its members, if necessary. • Some trade unions even undertake publication of some magazine or journal. • These activities, which may be called fraternal functions, depend on the availability of funds, which the unions raise by subscription from members and donations from outsiders, and also on their competent and enlightened leadership.

• Modern trade unions also take up political activities to achieve their objectives. Such activities may be related to the formation of a political party or those reflecting an attempt to seek influence on public policy relating to matters connected with the interests of working class.

Criticism of Trade Unions

Lack of education makes the workers narrow-minded, and prevents them from taking long-term views. Thus, anything, which does not result in an immediate reward, becomes unattractive to them. This attitude is responsible for many strikes and lock-outs in industrial concerns. Trade unions may not welcome rationalisation and improved methods of production for the fear that some of the workers will be put out of work. Therefore, they resort to go slow policy that retards industrial progress. When labour unions strike because of illogical grounds, incalculable losses occur to producers, community and the nation. These are harmful to the workers also. They suffer because of the loss of wages. They create artificial scarcity of labour by demanding that only union personnel should be employed. By undue insistence on the payment of standard rates of wages, they have only levelled down the earnings of the efficient workers.

Types of Unions
1. Craft union
– Same craft or occupation

2. General union
– For unskilled workers

3. Staff union
– Non-manual workers

Types of Unions
4. Industry union
– Same industry, regardless of skills, occupation or job

5. House union (company or enterprise union)
– All members are from the same company regardless of occupation or job

Why Workers Join Unions
1. Higher wages and better working conditions
– Collective bargaining with employer & make their voices heard., favoritism vs. discrimination

2. Sense of Security
– More secured with collective agreement. 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, injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers.

3. Social need
– Meet co-workers from other departments or companies

Why Workers Join Unions
4. Upgrading of skills
– Attend training courses organized by union

5. Peer pressure
– Colleagues are members

6. Self-fulfillment
– Serve other members – 7. Sense of Participation – The employees can participate in management of matters affecting their interests only if they join trade unions. They can influence the decisions that are taken as a result of collective bargaining between the union and the management.

Reasons for Joining Trade Unions
• • • • • • • Greater Bargaining Power Minimize Discrimination Sense of Security Sense of Participation Sense of Belongingness Platform for self expression Betterment of relationships

• • Wages & salaries Policy matter but differences in implementation, so comes the role of trade union Working conditions safeguarding workers health: Lighting & ventilation, sanitation, rest rooms, safety equipments ( hazards free atmosphere , drinking water, refreshments, working hours, leave & rest, holidays with pay, job satisfaction, social security benefits and other welfare measures Discipline Protect workers from victimization by management- transfers, suspensions, dismissals etc Personnel policies Fighting against improper implementation of personnel policies wrt recruitment, selection, promotion, transfer, training etc.. Welfare Solving difficulties of workers through collective bargaining wrt sanitation, hospitals, quarters, schools, colleges and other basic amenities Employer- employee relations Bureaucratic attitude and unilateral thinking of mgmt may lead to conflicts Trade unions go for constant negotiations for industrial democracy and peace.

• •

• Negotiating machinery Based on ‘give and take principle’, negotiations continue till parties reach an agreement. Protect interests of workers through collective bargainINg

• Safeguarding organizational health

• • • •

Methods evolved for grievance redressal, techniques adopted to reduce absenteeism and labor turnover. upgrading skills- attend training courses organized by unions Education and training. Legal assistance. Financial discount Welfare Benefits

Importance Of Trade Unions
• Trade unions help in accelerated pace of economic development in many ways as follows: • by helping in the recruitment and selection of workers. • by inculcating discipline among the workforce • by enabling settlement of industrial disputes in a rational manner • by helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

Importance Of Trade Unions
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

ECONOMIC: Improved economic status, shorter working day, improvement in living and working conditions, better health & safety standards, upgrading welfare facilities, reducing inequalities- both internally & externally POLITICAL: Seeking / obtaining political power through political affiliations, lobbying activities to influence the cause of labor and legislations, participating & representing workers on bipartite forums, developing revolutionary ideologies among workers, protesting against Govt. decisions SOCIAL: Initiating & developing workers’ education system, organizing welfare & recreational facilities, providing monitory and other help during period of strike and economic distress, running cooperative welfare schemes and societies, hosing needs/ community development, organizing cultural functions & social welfare programmes NATIONAL / INTERNATIONAL LEVEL: Representing workers at the national level on advisory committees, associating with national federations for unity & solidarity, Raising funds in case of national / International calamities or tragedies

• • • • • Internally democratic Have a strong leadership Exhibit a responsibility towards their worker members Committed to promote industrial peace and harmony Inclined towards collective bargaining that is collaborative and not competitive • Adaptable to change • Objectives are achieved through collective action and group effort • formed to protect and promote all kinds of interests – economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic.

• Change in the attitude of unions towards management, Industry, Govt. and economy • Unions becoming increasingly matured, responsive and realistic Gone are the days of frequent strikes, bandhs, gheraoes and violence • Unions are reconciled to economic reforms. The accent is on opposing the adverse impact of reforms and not the reforms • Discussion among trade union circles is now on issues like productivity, TQM, Technology, competition, MNCs, exports etc.. • Unions aware of the Right Sizing and feel the need for suplus labor fat to be shed • Days when unions were affiliated with political parties are gone by. Today thrust is on de- politicization of unions • Experience of politically free unions is pleasant, reinforcing the belief that farther the unions are from politics, more advantageous it is for them

• •


• •

Workers association in our country is highly fragmented and the consequence is multiplicity of unions, which weakens the bargaining strength of employees. One of the defects of trade union movement in India has been the phenomenon of outside leadership. The fault of outside leadership lies with trade Union Act, 1926 itself. The act permitted outside participation to the extent of 50% of the strength of office bearers in a union. Trade Unions are at cross roads. Their membership is declining, Their political support is waning, public sympathy is receding, their relevance itself is at stake Managements on the other hand are on the offensive. They are able to force unions to accept terms and conditions. Workers,officers and managers are mercilessly terminated in the name of restructuring, downsizing etc Professionalisation of trade unions movement is another trend witnessed, they are trying to upgrade their leadership quality. Topics lie IT, strategic planning, diversity, networking and productivity etc now form inputs in training programmes organized for union leaders

• • • • • • • • • • Unionization according to industry/region/state 70,000 registered trade unions , many not regisered 9 central unions, all affiliated to political parties 2 % of the union force unionized PSUs: Industrial level collective bargaining in coal/steel, enterprize level elsewhere Private sector: Plant level collective bargaining Union density according to the size of of industry Craft unions in Govt transport sector Unionization in India under recession Twin battle against Inter Union Competition and assertive management

• Outside or political leadership-Trade unions in India are led largely by people who themselves are not workers. These outsiders are politicians, intellectuals and professionals having no experience of work in industry. Outsiders continue to dominate the trade unions to advance their personal interests. • Small size of unions • Low membership-The number of trade unions in India has increased considerably. But this has been followed by the declining membership per union. • Uneven growth. The trade unionism in India is characterised by uneven growth, both industry-wise and area-wise. Trade unions are popular in big industries and the degree of unionisation varies widely from industry to industry. Besides, trade union activities are concentrated in a few states and in bigger industrial centres mainly due to concentration of industries in those places• Low level of knowledge of labor legislation • Fear of victimization


• POOR FINANCIAL POSITION-The financial position of the trade unions is weak because their average yearly income is very low and inadequate. The subscription rates are very low. Under conditions of multiplicity of unions, a union interested in increasing its membership figures keeps the subscription rate unduly low. As a result, the funds with the unions are inadequate and they cannot undertake welfare programmes for their members. Another reason for the weak financial position of union is that large amounts of subscription dues remain unpaid by the workers. Besides this, unions do not have proper staff and organisation to collect subscriptions.

• Indifferent Attitude of Workers. In India, a large number of workers have not joined any union. Moreover, all the members of the trade unions do not show interest in their affairs. The attendance at the general meetings of the unions is very low. Under such circumstance, trade unionism cannot be expected to make much progress.

• Multiplicity of trade unionsThere exist several trade unions in the same establishment. The multiplicity of unions is the result of outside leadership and labour laws. The law permits and gives sanctity to small unions. Any seven persons can form a union under the Trade Unions Act, 1926. This Act confers rights on such a union. It is allowed under the Act to raise disputes, file suits, go to conciliation( support) and even bargain with employers. Therefore, small sections of workers are encouraged to form separate Unions. There is no restriction on the number of unions to be registered in one establishment.-

Structure of Trade Unions
• Plant level Unions: The first level in the structure from below is the plant level union. This comprises the unions in one organisation or factory. Since only seven members are required to form a union , it has lead to multiple unions in one factory. • Local Level federations. This is the second level in the structure from below. The local trade union federation holds together the plant level unions at the local level in a particular craft and industry. These local level federations might be affiliated to either some regional level or national level federation or these may be independent. • Regional level federations. These are the organisations of all the constituent unions in a particular state or region. • National federations. These are national level bodies to which plant level unions, local unions or regional level unions may get affiliated. These are the apex bodies at the top of the structure. They act as coordinating bodies. These national federations may have their own regional or state level coordinating bodies to which the plant level unions may get affiliated.

• • Industrialization brought about new economic and social changes in societies. TU emerged as a result of industrialization and the consequent social changes. First workers’ union in India under the leadership of Mr Lokhande was developed in 1890 Beginning of labor movement in the modern sense started after the outbreak of World War I Economic. Political and social conditions influenced the growth of trade union movement in India. Establishment of ILO helped the formation of TUs in the country In 1920 AITUC( All India Trade Union Congress) was formed- the 1st All India trade union World War II brought splits in AITUC. Efforts of Indian National Congress resulted in the formation of INTUC( Indian National Trade Union Congress) Socialists separated from AITUC formed HMS( Hind Mazdoor Sabha) in 1948 Some other unions were also formed. They were BMS ( Bhartiya Majdoor Sangh) in1955, HMP( Hind Majdoor Panchayat) in 1965, CITU( Centre of Indian Trade Union ) in 1970

• • • • • •

• It legalizes the formation of trade unions by allowing employees the right to form and organize unions and also strengthen bargaining power of workers • Act aims to provide law for the registration of trade unions and get it registered under the act • Permits any seven persons to form a union OBJECTIVES • Lay down conditions governing the registration of trade unions • Defines obligations of trade unions • Prescribe rights and liabilities of a registered trade union STATUS OF A REGISTERED UNION • It becomes a body corporate • It gets a common seal • It can buy and hold movable and immovable property • It can enter into contracts with others • It can sue and be sued in its name

A trade union formed with at least 7 members may apply for registration with following documents • A copy of the rules of trade union • Name, occupation and addresses of members • Name of trade union and address of its office • Office Bearers of the trade unions • In case already in operation- submit statement of accounts/assets and liability statement

It should have a name, clearly laid down objective, membership list readily available, purpose for which funds shall be utilized, members to be the actually working persons , Honorary/temporary office bearers, conditions for benefits/fines, conditions under which rules shall be amended, manner in which office bearers shall be appointed, safe custody of funds and manner in which trade union shall be dissolved

RIGHTS AND LIABILITIES • Section 15 of the Act provides for certain obligations and liabilities of registered unions
• It also stipulates the purpose for which funds can be utilized

• Any two or more registered unions may get amalgamated together as one trade union

Trade Union Act 25 March 1926
• The trade Unions Act, 1926 provides for registration of trade unions with a view to render lawful organisation of labour to enable collective bargaining. It also confers on a registered trade union certain protection and privileges. • The Act extends to the whole of India and applies to all kinds of unions of workers and associations of employers, which aim at regularizing labor management relations. A Trade Union is a combination whether temporary or permanent, formed for regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers.

Trade Unionism In India
Indian trade union movement can be divided into three phases. * The first phase (1850 to1900) * The second phase (1900 to 1946) * The third phase (after 1947).

The first phase (1850 to1900)
• During this phase the inception of trade unions took place. During this period of the growth of Indian Capitalist enterprises, the working and living conditions of the labor were poor and their working hours were long. • Capitalists were only interested in their productivity and profitability. In addition to long working hours, their wages were low and general economic conditions were poor in industries. In order to regulate the working hours and other service conditions of the Indian textile labourers, the Indian Factories Act was enacted in 1881 • As a result, employment of child labour was prohibited. Mr. N M Lokhande organized people like Rickshawalas etc., prepared a study report on their working conditions and submitted it to the Factory Labour Commission. • The Indian Factory Act of 1881 was amended in 1891 due to his efforts. Guided by educated philanthropists(generous donors) and social workers like Mr.Lokhande, the growth of trade union movement was slow in this phase. Many strikes took place in the two decades following 1880 in all industrial cities. These strikes taught workers to understand the power of united action even though there was no union in real terms. Small associations like Bombay Mill-Hands Association came up.

The second phase (1900 to 1947)
• The second phase of The Indian trade union movement falls between 1900 and 1947. this phase was characterized by the development of organized trade unions and political movements of the working class. It also witnessed the emergence of militant trade unionism. • The First World War (1914-1918) and the Russian revolution of 1917 gave a new turn to the Indian trade union movement and organized efforts on part of the workers to form trade unions. • In 1918, B P Wadia organized trade union movements with Textile mills in Madras. He served strike notice to them and workers appealed to Madras High Court because under ‘Common Law’, strike is a breach of law. • In 1919, Mahatma Gandhi suggested to let individual struggle be a Mass movement. In 1920, the First National Trade union organization (The All India Trade Union Congress (AITUC)) was established. Many of the leaders of this organization were leaders of the national Movement. In 1926, Trade union law came up with the efforts of Mr. N N Joshi that became operative from 1927.

The third phase (after 1947).
• The third phase began with the emergence of independent India (in 1947), and the Government sought the cooperation of the unions for planned economic development. The working class movement was also politicized along the lines of political parties. For instance Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. The AITUC is the trade union arm of the Communist Party of India. Besides workers, white-collar employees, supervisors and managers are also organized by the trade unions, as for example in the Banking, Insurance and Petroleum industries.

• • • •

By 1949, four central trade union organizations were functioning in the country: The All India Trade Union Congress, The Indian National Trade Union Congress, The Hindu Mazdoor Sangh, and The United Trade Union Congress

At present there are twelve Central Trade Union Organizations in India:

• • • • • • • • • • • •

All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS) Centre of Indian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC) National Front of Indian Trade Unions (NFITU) National Labor Organization (NLO) Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC) and United Trade Union Congress - Lenin Sarani (UTUC - LS)

Trade unions in India
The Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor markets consist of three sectors: • The rural workers, who constitute about 60 per cent of the workforce. • Organized sector, which employs 8 per cent of workforce, and • The urban informal sector (which includes the growing software industry and other services, not included in the formal sector) which constitutes the rest 32 per cent of the workforce.

Suggestions for the development of Unions :
• One Union in One Industry: Multiplicity of unions in the same plant leads to inter-union rivalry that ultimately cuts at the root of the trade union movement. It weakens the power for collective bargaining and reduces the effectiveness of workers in securing their legitimate rights. Therefore, there should be only one union in one industry. • Paid Union Officials: Generally, the trade unions avail the services of the honorary workers due to lack of funds. The practice should be stopped because honorary office bearers cannot do full justice to the task entrusted to them because of lack of time at their disposal. Suppose that you are asked to do something in the office, which requires a lot of responsibility. You are not offered any thing in return. Of course the motivational levels will come down unless and until you are a very passionate or a committed person. The same applies to the officials of the unions. Therefore, paid union officials should be employed who are persons of proven integrity and who are able to evaluate the demands of workers so that they may negotiate with employers on equal footing.

Suggestions for the development of Unions :
• Development of Leadership from Within: It is of crucial importance that trade unions are managed by the workers, and not by outsiders. Leadership should be developed from within the rank and file of the workers. • Recognition of Trade Unions. Till recently, the employers refused recognition to the trade unions either on the basis that unions consisted of only a minority of employees or two or more unions existed.

Industrial Dispute and individual dispute
• Industrial dispute means any dispute or difference between employers and employers, or between employers and workmen or between workmen and workmen, which is connected with employment or non-employment or the terms of employment .The dispute has to be between plurality of workman and employer • Individual workman cannot raise an industrial dispute

Individual dispute deemed as industrial dispute
• 1965 amendment to I.D ACT and insertion of 2A. • Where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer…….shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute. • This definition is not applicable to disputes short of termination

STRIKES: A strike is spontaneous and concerted refusal of work and withdrawal of labor from production temporarily. It is a collective stoppage of work for pressurizing their employers to accept certain demands. TYPES OF STRIKES:
SYMPATHETIC STRIKE: To show sympathy with workers in other industries GENERAL STRIKE: Strike by all or most of the unions in an industry or a region UNOFFICIAL STRIKE: Strike undertaken without the consent of the unions SECTIONAL STRIKE: Refusal of a section of a given class of workers to perfor their normal duties BUMPER STRIKES: to paralyze the industry firm by firm SIT DOWN /TOOL DOWN/PEN DOWN: Strike when unions plan strike and workers cease to perform but do not leave the place of work: SLOW DOWN STRIKE: Go-slow tactic, workers do not stop working but dot perform at their normal pace LIGHTNING STRIKE: Workers may go on strike without notice or at very short notice with an element of surprise HUNGER STRIKE: To gain sympathy from public and get noticed by employer workers may decide to forego food for a specified period. Such non-violent protests generally bring moral pressure on employers

• • • • It is the counterpart of strike. It is the weapon available with employer to close down the factory till the workers agree to resume work on the conditions laid down by employer. If it is impossible to meet the demands of workers, employers may decide o go for lock-out An employer may also pull down the shutters so as to bring psychological pressure on the workers to agree to his conditions or face the closure of unit Gherao means to surround Group of workers initiate collective action aimed at preventing members of he management from leaving the office. This can happen outside the premises too Persons who atre under gherao are not allowed to move for a long time, sometime even without food or water National commission on labor has refused to accept it as a form of industrial protest While picketing workers carry/display signs ,banners and placards( In connection with dispute), prevent others from entering the place of work and persuade others to join the strike Boycott aims at disrupting the normal functioning of an enterprise, Through forceful and negative behavioral acts, strikers prevent others not to cooperate with employer

• • • • •


• Employers may form their unions to collectively oppose the working class and put pressure on trade unions It is the counterpart of strike. An employer may close down the place of employment temporarily. It is very powerful weapon available with employer to pressurize workers till they agree to resume work on the conditions laid down by employer. If it is impossible to meet the demands of workers, employers may decide o go for lock-out An employer may also pull down the shutters so as to bring psychological pressure on the workers to agree to his conditions or face the closure of unit Employer may resort to suspension or disciplinary action leading to termination of workers on strike. The list of employees so suspended or dismissed may be circulated to the other employer so as to restrict their chances of getting employment with other employers.

• •


Ever expanding complex multi product/project companies with diverse and conflicting interests of workmen and employers, growing labor consciousness, resulting in strikes and lockouts, lead to the outcome of Industrial dispute Act, 1947

Main provisions of the Act are: • Settlement machinery -Provides suitable machinery for investigation, just, equitable and peaceful settlement of industrial
disputes and aims to provide justice both to employers and workmen - Collective bargaining, Negotiation

• • • • • •

Aims at promoting security, amity and good relations between employer and employee or between employers and workmen or among workmen Prevent illegal strikes and lockouts and explains the contingencies when these can be lawfully resorted to or when these can be declared illegal or unlawful. Provide conditions and relief to workmen in the matters of lay-offs, retrenchment, dismissals and victimization Provides conditions under which an industrial unit can be closed down
60 days notice to be given of intention to close down any undertaking Compensation to workmen in case of closing down

Get the workmen the right of collective bargaining and promote conciliation Lists down unfair labor practices on the part of both parties introduced in 1984

KEY PROVISIONS OF ID ACT: COLLECTIVE BARGAINING: It is a technique by which disputes as to conditions of employment are resolved amicably, by agreement rather than coercion NEGOTIATION CONCILIATION AND MEDIATION: It is facilitated negotiation, essential in public utility services, Binding on parties to the disputes ARBITRATION: Voluntary Arbitration: agreement between workman and management, Send copy to the Govt and conciliation officer, publication of agreement ADJUDICATION

Compulsory Adjudication Reference by the Appropriate Government Sec. 10(1) S. 2-A, 33-A


Award Sec. 18(3) of ID Act

Publication of award

Conciliation (if successful Settlement) Sec. 18(3) of The I D act


Judicial review - Art. 226 or Art. 136

Voluntary Arbitration – 10-A

Award – 18(2) & 18(3)

Judicial review - Art. 226 or Art. 136

Collective Bargaining – If successful – settlement Sec. 18(1) of ID Act

Publication of awards
• Publication is must • Time duration of 30 days is directory • Award comes in to operation 30 days after publication • Tribunal to recall the award

Conditions for Successful Bargaining
1. Freedom of association
– Workers and employers are free to form their own associations to represent their interests.

2. Stability of union
– Unions have to be stable for collective bargaining to be effective  union is able to honor the agreement.

3. Recognition of union by employer
– Collective bargaining begins after employer recognizes the union that claims to represent the specific group of workers.

Conditions for Successful Bargaining
4. Good faith
– Both parties must be willing to resolve differences to reach an agreement.

5. Mutual respect
– Relationship affected and process becomes tense and difficult if any party used unfair practices such as victimization.

6. Supportive legal system
– Employment laws to ensure process takes place in an orderly manner.

• Process depends on these factors:
1. Subject matter to be discussed 2. Persons involved 3. Circumstances under which the discussion is held.

A Typical Negotiation Process begins with each party stating its position. As discussion progresses, each party adjusts its demands to seek a mutually acceptable agreement.

Steps in Negotiation
1. Preparation
– Each party must know what it wants.

2. Presentation
– Each party presents its case.

3. Exchange and compromise
– Parties look for possible adjustment or compromise.

4. Reaching an agreement
– Parties sign a written statement on what have been agreed.

Ways to Settle Disputes
• Impasse: settlement cannot be reached • Impasses may be solved by these alternatives:
– Conciliation – Mediation – Arbitration

Ways to Settle Disputes
• Conciliation
– Impartial third party helps the two parties to reach a mutually acceptable settlement. – Conciliator meets parties separately or together to exchange information, clarify issues and settle misunderstanding. – Conciliator does not impose a solution but works with the parties to enable them to come to an agreement.

Ways to Settle Disputes
• Arbitration
– Third party settles the dispute by making an independent decision for the two parties. – Some prefer arbitration as the responsibility “for reaching agreement” is made by a neutral party (quite often, appointed by the government e.g. Arbitration Court). – Arbitration gives some people the impression that they did not give in to the other party but “fought all the way” to the Arbitration Court.

Ways to Settle Disputes
• Mediation
– Impartial third party helps to reach a mutually acceptable agreement. – Mediator makes recommendations for the two parties to consider. – Final agreement is made by the two parties themselves.

Industrial Disputes
• An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment • It is a disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions. When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes, picketing or gheraos.

• As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen and which is connected with the employment or nonemployment or the terms of employment or with the conditions of labor, of any person.

• This definition includes all the aspects of a dispute. It, not only includes the disagreement between employees and employers, but also emphasizes the difference of opinion between worker and worker. The disputes generally arise on account of poor wage structure or poor working conditions. This disagreement or difference could be on any matter concerning the workers individually or collectively. It must be connected with employment or nonemployment or with the conditions of labor.

• From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production. This results in increase in the average cost of production since fixed expenses continue to be incurred. It also leads to a fall in sales and the rate of turnover, leading to a fall in profits. The employer may also be liable to compensate his customers with whom he may have contracted for regular supply. Apart from the immediate economic effects, loss of prestige and credit, alienation of the labor force, and other non-economic, psychological and social consequences may also arise. Loss due to destruction of property, personal injury and physical intimidation or inconvenience also arises.

Prolonged stoppages of work have also an adverse effect on the national productivity, national income. They cause wastage of national resources. Hatred may be generated resulting in political unrest and disrupting amicable social/industrial relations or community attitudes.

• For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical consequences of forced idleness. The threat of loss of employment in case of failure to settle the dispute advantageously, or the threat of reprisal action by employers also exists.


• Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry. • It is the process of negotiation between firm’s and workers’ representatives for the purpose of establishing mutually agreeable conditions of employment. • It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation.

• ILO has defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment/industrial relations with one another.

• Collective bargaining involves discussions and negotiations between two groups as to the terms and conditions of employment. It is called ‘collective’ because both the employer and the employee act as a group rather than as individuals. It is known as ‘bargaining’ because the method of reaching an agreement involves proposals and counter proposals, offers and counter offers and other negotiations.

Thus collective bargaining:
• is a collective process in which representatives of both the management and employees participate.

is a continuous process which aims at establishing stable relationships between the parties involved.

not only involves the bargaining agreement, but also involves the implementation of such an agreement.

attempts in achieving discipline in the industry

is a flexible approach, as the parties involved have to adopt a flexible attitude towards negotiations.

• A collective bargaining process generally consists of four types of activities- distributive bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining.

Distributive bargaining
• It involves haggling (arguing) over the distribution .Under it, the economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one party’s gain is another party’s loss. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, distributive bargaining tends to be more competitive. This type of bargaining is also known as conjunctive bargaining.

Distributive bargaining
• This is a negotiation method in which two parties strive to divide a fixed pool of resources ,often money, each party tries to maximize its share of distribution. • The fixed resource is called fixed pie.So this is fixed sum game. • The distributive bargaining is also called hard bargaining ,because of its highly competitive nature. • Described as a win-lose bargaining.

Distributive Bargaining A competitive negotiation strategy also called “claiming value” or “zero sum” Used to decide how to distribute something of value • Perception of a “fixed pie” (a fixed amount of “stuff” to be divided up) • Assumes that the more one side gets, the less the other gets

Winning at Distributive Negotiation 1. Know yourself: • • • • Your BATNA (Best Alternative To a Negotiated Agreement) Your goals Your interests Your resource limitations





Winning at Distributive Negotiation 2. Know your opponent • • • • Their BATNA Their goals Their interests Their resource limitations




Integrative bargaining:
• Integrative bargaining:

This involves negotiation of an issue on which both the parties may gain, or at least neither party loses. For example, representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. Here, both the parties are trying to make more of something. In general, it tends to be more cooperative than distributive bargaining. This type of bargaining is also known as cooperative bargaining.

• Negotiations between a union and Management when the parties are not in direct conflict over an issue,and when both stand to benefit from continued discussions.

Integrative Bargaining: Expanding the Pie
• also known as cooperative, collaborative, winwin, mutual gains, or problem solving bargaining • the goals of the parties are not mutually exclusive (i.e. one party’s gain is not at the other party’s expense)

• negotiating parties focus on commonalities rather than differences

Integrative Bargaining
• negotiators attempt to address needs and interests, not positions • both parties willingly exchange information and ideas • negotiators invent options for mutual gain • negotiators use objective criteria for standards of performance

Key Steps in the Integrative Negotiation Process:
1. Identify and define the problem

2. Understand the problem and bring interests and needs to the surface 3. Generate alternative solutions to the problem
4. Evaluate those alternatives and select among them

Attitudinal restructuring:
• Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management. When there is a backlog of bitterness between both the parties, attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It develops a bargaining environment and creates trust and cooperation among the parties.

Intra-organizational bargaining
• Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management. Even within the union, there may be differences between groups. For example, skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. Within the management also, there may be differences. Trade unions maneuver to achieve consensus among the conflicting groups.

Intra-organizational bargaining
• is the bargaining that takes place within management or within a trade union before interorganizational bargaining occurs between the two sides. It occurs because there may be different interests and perspectives within each side, and these have to be resolved through bargaining to produce an agreed set of objectives to take to the other side.

• It is a group process, wherein one group, representing the employers, and the other, representing the employees, sit together to negotiate terms of employment. • Negotiations form an important aspect of the process of collective bargaining i.e., there is considerable scope for discussion, compromise or mutual give and take in collective bargaining.

• 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, organizational and workplace levels.

• Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labor management relations over a period of time in an enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and understanding serve as the by products of harmonious relations between the two parties.

• It a bipartite process. This means there are always two parties involved in the process of collective bargaining. The negotiations generally take place between the employees and the management. It is a form of participation. • Collective bargaining is a complementary process i.e. each party needs something that the other party has; labor can increase productivity and management can pay better for their efforts. • It is a political activity frequently undertaken by professional negotiators.

• Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other. • Collective Bargaining is continuous process. It enables industrial democracy to be effective. It uses cooperation and consensus for settling disputes rather than conflict and confrontation. • Collective bargaining takes into account day to day changes, policies, potentialities, capacities and interests.

• Collective bargaining generally includes negotiations between the two parties (employees’ representatives and employer’s representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Often employees are represented in the bargaining by a union or other labor organization.

• The result of collective bargaining procedure is called the collective bargaining agreement (CBA). Collective agreements may be in the form of procedural agreements or substantive agreements. 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, disputes and discipline. Frequently, procedural agreements are put into the company rule book which provides information on the overall terms and conditions of employment and codes of behavior. A substantive agreement deals with specific issues, such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of work, etc. In many companies, 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.

The collective bargaining process comprises of five core steps:
1 Preparation : This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. 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. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.

2 Discussion : Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.

3 Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as ‘brainstorming’. The exchange of messages takes place and opinion of both the parties is sought. 4 Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when ‘what ifs’ and ‘supposals’ are set forth and the drafting of agreements take place.

5 Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.


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. Thus, collective bargaining is, essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the management should be conducted by rules rather than arbitrary decision making. It establishes rules which define and restrict the traditional authority exercised by the management.

Importance to employees
• Collective bargaining develops a sense of self respect and responsibility among the employees. • It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group. • Collective bargaining increases the morale and productivity of employees. • Effective collective bargaining machinery strengthens the trade unions movement.

Importance to employees
• It restricts management’s freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged.

• The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. • It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

Importance to employers
• It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. • Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. • Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. • Collective bargaining plays a vital role in settling and preventing industrial disputes.

Importance to society
• Collective bargaining leads to industrial peace in the country • 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. • The discrimination and exploitation of workers is constantly being checked. • It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.

• Collective bargaining operates at three levels: 1. National level 2. Sector or industry level 3. Company/enterprise level

• Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation between union confederations, central employer associations and government agencies. It aims at providing a floor for lowerlevel bargaining on the terms of employment, often taking into account macroeconomic goals.

• Sectoral bargaining, which aims at the standardization of the terms of employment in one industry, includes a range of bargaining patterns. 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.

• The third bargaining level involves the company and/or establishment. As a supplementary type of bargaining, it emphasizes the point that bargaining levels need not be mutually exclusive.

• Phase 1-Charter of demands by bargaining agents • Phase 2-Prepartion for negotiation • Phase 3-Bargaining • Phase 4-Collective Agreement • Phase 5-Contract Administration

• An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment. It is a disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions.

• When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes, picketing or gheraos.

• As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen and which is connected with the employment or nonemployment or the terms of employment or with the conditions of labor, of any person.

• This definition includes all the aspects of a dispute. It, not only includes the disagreement between employees and employers, but also emphasizes the difference of opinion between worker and worker. The disputes generally arise on account of poor wage structure or poor working conditions. This disagreement or difference could be on any matter concerning the workers individually or collectively. It must be connected with employment or non-employment or with the conditions of labor.

• From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production. This results in increase in the average cost of production since fixed expenses continue to be incurred. It also leads to a fall in sales and the rate of turnover, leading to a fall in profits. The employer may also be liable to compensate his customers with whom he may have contracted for regular supply. Apart from the immediate economic effects, loss of prestige and credit, alienation of the labor force, and other non-economic, psychological and social consequences may also arise. Loss due to destruction of property, personal injury and physical intimidation or inconvenience also arises.

• For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be caused to the worker and his family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical consequences of forced idleness. The threat of loss of employment in case of failure to settle the dispute advantageously, or the threat of reprisal action by employers also exists.

• Prolonged stoppages of work have also an adverse effect on the national productivity, national income. They cause wastage of national resources. Hatred may be generated resulting in political unrest and disrupting amicable social/industrial relations or community attitudes.

• The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes

• The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs( period during which men are temporarily dismissed) and retrenchments ( cut the costs)

• The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc.

• Wages and allowances: Since the cost of living index is increasing, workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. In 2002, 21.4% of disputes were caused by demand of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes.

• Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by personnel, and only 0.4% were caused by retrenchment.

• Indiscipline and violence: it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to indiscipline respectively. During the year 2003, indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar trend was observed in 2004 where indiscipline accounted for 40.4% of disputes.

• Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively.

• Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and working hours.

• Miscellaneous: The miscellaneous factors include - Inter/Intra Union Rivalry - Charter of Demands - Work Load - Standing orders/rules/service conditions/safety measures - Non-implementation of agreements and awards etc.

• The number of industrial disputes in country has shown slow but steady fall over the past ten years. In 1998, the total number of disputes was 1097 which fell by more than half to 440 . only 45 cases of disputes have been recorded during the first four months of 2007. This significant decline is attributed to the serious attempts made by industries to improve industrial relations with their workers.

• However, a deeper look at the data reveals that the number of man days (i.e., 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. The country, on an average, lost 25.4 million man days of work annually between 1998 and 2006, which might have affected its industrial output.

• More than 2.14 lakh man days were lost due to work stoppages in 23 industrial disputes during January to March 2007. Though there has been a decline in the number of strikes, the country still witnessed some major strikes between 2004 and 2006, like those in Honda, Escorts, Apollo, and Skumars factories and in SBI bank.

• .


• On analyzing the data sector wise, it is clear that the private sector has witnessed greater number of disputes as compared to the public sector. In 2005, only 57 disputes were recorded in public sector which resulted in a wage loss of 79 Crores. In contrast to this, 399 disputes were recorded in the private sector. In the recent past, maximum number of disputes has been recorded in the manufacturing, agriculture and mining and quarrying industries.

• A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. 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. When workers collectively cease to work in a particular industry, they are said to be on strike.

• According to Industrial Disputes Act 1947, a strike is “a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment”. This definition throws light on a few aspects of a strike. Firstly, a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Secondly, it also includes the refusal of a number of employees to continue work under their employer.

• In a strike, a group of workers agree to stop working to protest against something they think is unfair where they work. Labours withhold their services in order to pressurize their employment or government to meet their demands. Demands made by strikers can range from asking for higher wages or better benefits to seeking changes in the workplace environment. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems.

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, profit sharing, Provident fund and gratuity
Retrenchment of workmen and closure of establishment Dispute connected with minimum wages

• Economic Strike:

Under this type of strike, labors stop their work to enforce their economic demands such as wages and bonus. In these kinds of strikes, workers ask for increase in wages, allowances like traveling allowance, house rent allowance, dearness allowance, bonus and other facilities such as increase in privilege leave and casual leave.

• 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, it is called a sympathetic strike. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. 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.

TYPES OF STRIKE • General Strike:
It means a strike by members of all or most of the unions in a region or an industry. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer. It may also be an extension of the sympathetic strike to express generalized protest by the workers.

• Sit down Strike:
In this case, workers do not absent themselves from their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for employer to defy the union and take the workers' places. In June 1998, all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the nonacceptance of their demands by the state government.

• Slow Down Strike: Employees remain on their jobs under this type of strike. They do not stop work, but restrict the rate of output in an organized manner. They adopt go-slow tactics to put pressure on the employers.

• Sick-out (or sick-in): In this strike, all or a significant number of union members call in sick on the same day. They don’t break any rules, because they just use their sick leave that was allotted to them on the same day. However, 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.

• Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions. In 2004, a significant number of advocates went on wildcat strike at the City Civil Court premises in Bangalore. They were protesting against some remarks allegedly made against them by an Assistant Commissioner

• A lockout is a work stoppage in which an employer prevents employees from working. It is declared by employers to put pressure on their workers. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers’ weapon while a strike is raised on part of employees. Acc to Industrial Disputes Act 1947, 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.

• A lockout may happen for several reasons. When only part of a trade union votes to strike, 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, if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive, the employer may declare a lockout until the workers end the strike. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement.

• PICKETING When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets are workers who are on strike that stand at the entrance to their workplace. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. The purpose of 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 in Hindi means to surround. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins. 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.

• In 1990, 1,825 strikes and lockouts were recorded. As a result, 24.1 million workdays were lost, from which 10.6 million were lost to strikes and 13.5 million to lockouts. More than 1.3 million workers were involved in these labor disputes. The number and seriousness of strikes and lockouts have varied from year to year.


As can be seen from the chart, there has been a steep decline in the number of strikes and lockouts. This continuous decline in strikes and lockouts indicates that the industrial relations in India are improving. There were 227 strikes in 2005, resulting in the loss of 10.81 million man-days, while the number of lockouts stood at 229 with a loss of 18.86 million man-days. In January-September 2006, there were only 154 strikes and 192 lockouts across the country, as compared to the statistics of 2005, which resulted in the time loss of 3.16 million man-days and 10.60 million man-days respectively.

The number of strikes and lockouts, taken together, was down by 4.4 per cent in 2005. During 2005, West Bengal experienced the maximum instances of strikes and lockouts (19216) followed by Kerala (3619) and Rajasthan (19247). Industrial disturbances were concentrated mainly in manufacturing (textile), financial intermediation, agriculture and mining and quarrying industries during 2005.

Prohibition of Strikes and Lock-Outs
• Employees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947. Employees, who are working in a public utility service, cannot go on a strike without giving a notice of strike within the six weeks before striking

Prohibition of Strikes and Lock-Outs
• 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. The same rule applies to the employers. 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. Moreover, the notice of strike or lockout is to be given in a prescribed manner showing the number of persons involved in the strike/lockout.

Prohibition of Strikes and Lock-Outs
• The notice of strike or lockout is not necessary when there is already a strike or lockout going on in the company. However, a notice should be issued on the day on which the lockout is declared just to intimate the appropriate authorities about the lockout. 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.

Prohibition of Strikes and Lock-Outs
• 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, that is, if the notice period is not served or if the strike is held within the fourteen days of issuing the notice of strike. If a strike or lockout has already taken place and is being referred to a Board, the continuance of such a strike or lock out is not illegal provided it is in compliance with the provisions of act. Moreover, a lockout declared in consequence of an illegal strike or a strike declared in consequence of an illegal lockout shall not be deemed to be illegal.

Prohibition of Strikes and Lock-Outs
• 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. In similar way, 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. According to Section 25 of Industrial Disputes Act 1947, no person should provide any sort of financial aid to any illegal strike or lock-out. 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, or with fine which may extend to one thousand rupees, or with both.

• 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. The employers can easily ignore a weak union on the plea that it hardly represents the workers. The agreement with such a union will hardly be honored by a large section of workforce. Therefore, there must be strong and stable unions in every enterprise to represent the majority of workers and negotiate with the management about the terms and conditions of service

• Mutual Trust: Both management and labor should help in the development of an atmosphere of mutual cooperation, confidence and respect. Management should adopt a progressive outlook and should recognize the rights of workers. Similarly, labor unions should persuade their members to work for the common objectives of the organization. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes.

• 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, joint consultation and other methods. This will improve communication between managers and workers, increase productivity and lead to greater effectiveness.

• Mutual Accommodation. The employers must recognize the right of collective bargaining of the trade unions. In any organization, there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude. One must clearly understand that conflicting attitude does not lead to amicable labor relations; it may foster union militancy as the union reacts by engaging in pressure tactics. The approach must be of mutual “give and take rather than “take or leave.” The management should be willing to co-operate rather than blackmail the workers.

• Sincere Implementation of Agreements. The management should sincerely implement the settlements reached with the trade unions. The agreements between the management and the unions should be enforced both in letter and spirit. If the agreements are not implemented then both the union and management stop trusting each other. An environment of uncertainty is created. To avoid this, efforts should be made at both ends to ensure the follow up of the agreements.

• Sound Personnel Policies: The following points should be noted regarding the personnel policies. The policies should be:
– Formulated in consultation with the workers and their representatives if they are to be implemented effectively. – Clearly stated so that there is no confusion in the mind of anybody. – Implementation of the policies should be uniform throughout the organization to ensure fair treatment to each worker.

• Government’s Role: The Government should play an active role for promoting industrial peace. It should make law for the compulsory recognition of a representative union in each industrial unit. It should intervene to settle disputes if the management and the workers are unable to settle their disputes. This will restore industrial harmony.

• Progressive Outlook: There should be progressive outlook of the management of each industrial enterprise. It should be conscious of its obligations and responsibilities to the owners of the business, the employees, the consumers and the nation. The management must recognize the rights of workers to organize unions to protect their economic and social interests.


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