You are on page 1of 25

Industrial Relations and

Trade Unions
Prepared by:
Aashish Janardhanan(151402)
Rahul Reddy (151434)
Srishti Roopchandani(151451)

Industrial Relations
The term Industrial Relations comprises of two terms:
Industry and Relations.
Industry refers to any productive activity in which an
individual (or a group of individuals) is (are) engaged.
By relations we mean the relationships that exist within
the industry between the employer and his workmen.
The term industrial relations explains the relationship between
employees and management which stem directly or indirectly
from union-employer relationship.

Objectives of Industrial Relations:


To safeguard the interest of labor and management by securing
the highest level of mutual understanding and good-will among
all those sections in the industry which participate in the process
of production.
To avoid industrial conflict or strife and develop harmonious
relations
To raise productivity by lessening the tendency of high turnover
and frequency absenteeism.

To eliminate or minimize the number of strikes and


lockouts by providing reasonable wages, improved living
and working conditions, and fringe benefits.
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.

Trade Unions
According to Trade Union Act of 1926, trade unions are any

combination of workers, whether temporary or permanent, formed


primarily for the purpose of regulating the relations between workers
and employers, or for imposing restrictive conditions on the condition
of any trade or business and includes any federation of two or more
unions
In simpler words, trade unions are associations of workers or

organization formed together by labour, workers or employees to


achieve their demands for better conditions at their work atmosphere.

Objectives of Trade Unions


Representation (Workers Interest)
Negotiation (Collective Bargaining)
Voice in decisions affecting workers
Member Service like education, training, welfare, discounts,
loans, etc.

Advantages of Trade Unions for


workers
Greater negotiation/bargaining power
Better relations with employer
Sense of belongingness
Sense of security
Platform for self expression
Sense of participation

INTERVIEW:
Ankit Mahavar
Executive - HR at Sintex Industries Ltd,
Ahmedabad

What are your duties and responsibilities?


Establish employee relationship strategies for short term
and long term.
Establish a joyful relation with employees and workers.
To prevent any production loss due to any industrial
relations issue.
Drive the employee engagement plan.
Monitor contractors work
Statutory compliances filing on time bound.
Monitoring the attendance, salary and wages of workers.

Health and safety policies of workers


Safety policy is established: education and training provided
to all the employees.
Authorization to employee of lowest rank to stop production
line and raise alarm in case of any safety hazard.
Health check-up prior to joining and periodic checkups
thereafter.
Occupation health center present at Factory for treating
health issues related to occupation.
Food calorie intake is monitored and maintained as per the
WHO and ILO standards.
Routine workplace inspections are carried out to ensure a
safe working environment.

Important Laws Significant to the business


Trade unions act, 1926.
Payment of wages act, 1936.
Industrial disputes act ,1947.
Payment of gratuity act, 1972.
Payment of Bonus Act, 1965

Trade unions act, 1926 :


The Act was enacted with the object of providing for the
registration of trade unions and verification of the
membership of trade unions registered so that they may
acquire a legal and corporate status.
Payment of Bonus Act, 1965 :

An Act to provide for the payment of bonus to persons


employed in certain establishments on the basis of profits
or on the basis of production or productivity and for matters
connected therewith.
Industrial disputes act ,1947.
An Act to make provision for the investigation and
settlement of industrial disputes

Problems due to workers and Unions and


steps to resolve them:
Sometimes it happens so that one department knowingly or
unknowingly encroaches into the work of other department.
Negotiating the blame game issues.
Misbehavior of workers.
2 Union organizations- which one to recognize?
Power tussle between the 2 unions.
Negotiations are done.
Inquiry Committee established which will look into cases of
misconduct.
Disciplinary action may range from suspension to termination.

Discuss few people management strategies


Training and development exercises are carried out.
Surveys conducted to gauge the efficiency of trainings and to
make modifications if needed.
Seasonal or festive bonuses are given.
Individual performances are monitored and rewards are
given accordingly.
Activities for carrying out social and inter-personal connect.

Interview conducted by Section C


Mr. Aditya Rane
Aakash Manufacturers, Owner

1) What are your duties and Responsibilities?


My duties are to look after HR activities of the Plant, from
joining formalities to Full and Final Settlements. Attendance and
Leave Management, Payroll Processing, Employee Engagement,
Employee Retention, Performance Management etc, Labor Laws
compliances, Court Cases and general administration.

2) Please explain policies related to health and safety of workers?


Ans: Our commitment is to reduce the risk to people by safer operation
and development of stress free work environment. By developing
knowledge and skills among employees, contractors and interested
parties for their involvement, responsibility and accountability in
Quality, Safety, Health and Environment performance. Some of the
policies for the same are wearing a helmet inside the manufacturing
unit all the time. The employees have to wear shoes when on the shop
floor. Also people working inside the manufacturing unit are required to
wear face masks to protect them from the dust and iron particles in the
grinding operation which can be very hazardous for the employee.

3) Which are different Labor laws significant for your business? Explain few.
Contract Labour (Regulation and Abolition) Act, 1970 and Contract Labour
(Regulation and Abolition) Central Rules, 1971- An Act to regulate the
employment of contract labour in certain establishments and to provide for its
abolition in certain circumstances and for matters connected therewith.
Employee Provident Funds, Miscellaneous Provisions Act, 1952, Employee
Provident Fund Scheme, 1952(EPFS), Employee Pension Scheme, 1995(EPS),
Employee Deposit linked Insurance Scheme, 1976(EPLIS) - An Act to provide for
the institution of provident funds, pension fund and deposit-linked insurance fund
for employees in factories and other establishments.
Minimum Wages Act, 1948 - An Act to provide for fixing minimum rates of
wages in certain employments. Whereas it is expedient to provide for fixing
minimum rates of wages in certain employments
Payment of Bonus Act, 1965 and Payment of Bonus Rules, 1975- An Act to
provide for the payment of bonus to persons employed in certain establishments
on the basis of profits or on the basis of production or productivity and for matters
connected therewith.

4) Do you face any problems while dealing with workers? Please narrate a few
accidents.
Ans. The problem is faced while dealing with the experienced workers they
do not accept orders from the new recruits. There have been instances when
the higher management had to intervene to overcome the issues. There are
issues while dealing with the contractual and fixed laborers to work for
overtime. No such accidents were shared.
5) How do you deal with these problems?
Ans. The new recruits are asked to segregate individuals on the basis of their
competencies and divide the work. They were also asked to gel up with the
team and give them more responsibilities.

6) Do you have any unions? Have you faced any problems in recent past with
union leaders?
Ans. They do have unions. The company faced a problem in the recent past
when they asked to increase the salaries of the full time employees by around
13000. The company offered them an increment of around 5000 but the
union did not listen to them. Later, upon refusal of the terms the full time
workers decided to strike. Seizing this opportunity the company hiked the
salaries of the contracted employees, minimizing the cost of restarting
operations which had dwindled from 75% to 30-35%. On seeing this turn of
events, the full time workers decided to negotiate and finally a consensus
between both parties was reached.

Employment Relations: Integrating Industrial Relations


and Human Resource Management
Keith Abbott
(Problems and Perspectives in Management / Volume 5,
Issue 1, 2007 )
This paper examines the problems and possibilities of
incorporating HRM practices within the regulatory
framework that governs contemporary workplace
relations. In so doing it details the debate surrounding the
issue of integration and looks at various relationships
organisations hold with trade unions.
It also looks at the industrial relations realities
confronting managers when trying to apply HRM
practices, and how these might be accommodated as a
means of improving organisational effectiveness.

Analysis - Contested Ground


The distinction between the basic concept of HRM and Industrial Relations:
HRM HRM as a theoretical model involves the maintenance of an organisations
workforce.
Its orientations and activities are predicated on individualist and unitarist
assumptions
Based on the assumption that conflict is not an inherent part of workplace
relations and therefore such rules and institutions are not needed.
Industrial Relations Industrial relations as a theoretical model involves the rules governing
workplace relations and the institutions established to govern and enforce
these rules.
Its various orientations and activities are predicated on collectivist and
pluralist assumptions
Based on the assumption that there is an ever-present potential for conflict
between competing workplace groups, and therefore rules and institutions
for its regulation are necessary.

Findings - Co-existence
Approaches used:
Managing trade union relations externally
Managing trade unions relations internally through a
specialist department
Managing trade union relations internally through line
managers.
Managing trade union relations, either externally or
internally with the aim of elimination of trade unions and
industrial relations altogether from the workplace.

Conceptualising the role of trade unions in


organisational labour management processes
The management-driven model - no formal role in the change
process
Trade union as gatekeeper model - trade union is not external to
the change process
Management-Union alliance - the trade union is formally integrated
into the change process, providing its expertise and perspectives
on the change to shape the elements and expectations of the plan.

THANK YOU !