Industrial Relations & Technological Change

Technology is. the intellectual equipment coupled with necessary

physical equipment (where relevant) that is required for being applied
in the field of trade, business, manufacturing or other profitable activity .

WIPO (World Intellectual Property Organization), has defined

technology as systematic application of knowledge for manufacturing of
product, process for rendering of services

In other words, technology inputs can be effectively utilized to provide

more efficient methods and better utilization of scarce resources, e.g.
like man hours, money, methods, etc.
 Industrial Relations & Technological Change

Technology can be applied in various ways:

•time motion studies,
•method studies,
•mechanization,
•automation, and
•rationalization
 Industrial Relations & Technological Change

Although it is accepted that technology leads to more jobs,

but problem is of existing employees who are displaced
by technology. It is true technology improves working
conditions by eliminating undesirable feature, leading to
lessing of monotony. It also creates certain problems of-
isolation of employees on the job, greater mental strain
as now mistakes can be costly, deterioration of social
groups, less job variety, skill requirement downgrading.
 Industrial Relations & Technological Change

Thus, unions have pushed hard for several devices geared

to cushioning the impact of technology change. These
are, pension, severance pay on retrenchment, extended
vacation periods, early retirement provisions (VRS).
These are adjustment to .automated change. Some
aspects are covered in the agreements with unions:
 Industrial Relations & Technological Change
These are:
1. Advance notice of layoff or shut down of product line.
Almost six months has been agreed in collective
bargaining agreements.
2. Adoption of attrition principle to reduce jobs (by deaths,
resignations, retirements, etc.)
3. Retraining of displaced employees to retain them in
other jobs either in the same plant or another one.
4.Restrictions on sub-contracting of work in another
company, e.g. where specialized equipment is not
available with the company, or skill not there, etc.
However, this is an area of large controversy in the
collective bargaining.
 Industrial Relations & Technological Change

CHANGES DUE TO E-ERA ON INDUSTRIAL RELATIONS

The following have been the changes in the industrial
relations front on account of the E-era:
1. Reduction on workforce coupled with a phenomenal
increase inworkplace productivity,
2. Dismantling or underplaying of unions,
3. Change in the academic profile of blue-collar workers,
4. The lone woIf syndrome,
5. ESOPs that give a semblance of ownership of workmen,
 Industrial Relations & Technological Change
6. Negotiated one to one company-wide settlements,
7. Wage-increase based on bench-marking worker productivity through
methods like 360 degree performance appraisal,
8. Attitude of non-interference of the state in any dispute between
workmen and the management,
9. Arrival of virtual organizations on the scene, and
10. Widespread resort to outsourcing and contract manufacturing.
 Industrial Relations & Technological Change
Interestingly, dismantling of unions, rapid increase in workplace
productivity, etc. far from hurting labour and undermining industrial
relations have actually led to greater say of the workmen in the affairs
of their company leading to a more meaningful industrial relations
The changing academic profile of the workmen for instance, could be
singularly responsible for empowering them to seek out and redress
their grievances themselves rather than resort to an extraneous agency
like a Workers' Union. Also the state's attitude on non-interference is
actually making management's to prefer arbitration rather than
prolonged court litigation, something that even the workmen favour to
an extent.
Wherever people exist there are bound to be confrontations and
conflicts. The challenge for a Management and HR professional is how
to resolve these conflicts so that the relationships between workmen
and management remain cordial and healthy.
 Industrial Relations & Technological Change

MEETING THE CHALLENGES

HR managers could do well by adapting the following, in
view of the changed conditions:
1. Bring in a transparent work culture.
2. Communicate effectively and all times.
3.Have a system through intranet or otherwise for constant
feed back and interaction with workmen.
4.Go for virtual quality circles that operate at all levels.
5. Bring in a culture of rewarding people instantly and make
everyone know about it.
 Industrial Relations & Technological Change
6. Have a clear-cut concept about one to one settlement
and never give in tendencies to compensate someone
just because he/she is a good negotiator. Acquire
negotiating skills yourself.
7.To institute systems not merely for workmen appraisal
even for workplace productivity and make sure that the
productivity remains paramount in the minds of the
people, be it workmen or management
 Industrial Relations & Technological Change
8. To ensure that employees constantly have right skill
themselves, which not only empowers them but also
makes them invaluable to the company. Training your
employee would be much cheaper than hiring an outsider,
who besides high price tag will also spend precious
organizational time in understanding its ethos and
functioning.
9. Consultation rather than confrontation should be the
running theme in exchange of views with the employee.
10. Spell your vision and mission in unambiguous terms
and let everyone within and outside know and let everyone
also be aware of what role they are to play in fulfilling these
goals.
 International Labor Organization (ILO)

The International Labor Organization (ILO), was

established an April 19, 1919 by Versailles Peace
Conference as an autonomous body associated with the
League 'Of Nations. It was born as a result 'Of the peace
conference at the end 'Of World War I at Versailles. India
became member of ILO in 1919, as an 'Original signatory
at the treaty 'Of peace. The ILO was the 'Only international
organization that survived the second world war even after
the dissolution 'Of its parent body the League 'Of Nations.
It became specialized agency 'Of United Nations (UN) in
1946.
 International Labor Organization (ILO)

The ILO is a new social institution trying to make the world

conscious that world peace may be affected by unjust
conditions 'Of its working population. It deals with
international labor problems. The unique feature of ILO is
that it is a tripartite body consisting 'Of representations 'Of
employers, labor and government. There are three
constituents namely the governments which finance it, the
workers, for whose benefit it is created and the employers
who share responsibility far the welfare 'Of the workers.
 International Labor Organization (ILO)

Objectives:
During the second world war a conference was convened
at Philadelphia. During the discussions at this conference
the aims of ILO were redefined. This was termed as
"Declaration of Philadelphia". This was incorporated in the
constitution of ILO. The conference reaffirmed the
principles of ILO namely:
(i) Labour is not a commodity;
(ii) freedom of expression and of association are essential
to substantial progress;
 International Labor Organization (ILO)

(iii) poverty constitutes a danger to prosperity everywhere;

(iv) the war against want requires to be carried on with
unrelenting vigor within each nation, and by continuous and
concerted international effort in which the representatives
of workers and employees enjoying equal status with those
of governments in free discussion and democratic decision
with a view to the promotion of the common welfare.

The Declaration of Philadelphia enunciated 10 objectives

which the ILO was to further and promote among the
nations of the world.
 International Labor Organization (ILO)

These are:
(a) Full employment and the raising of standards of living.
(b) The employment of workers in the occupation in which they can
have the satisfaction of giving the fullest measure of their skill and
make their contribution to the common well being.
(c) The provision, as a means to the attachment of this end and under
adequate guarantees for all concerned, of facilities for training and
the transfer of labour including migration for employment and
settlement.
(d) Policies in regard to wages and earnings bonus and other
conditions of work calculated to ensure a just share of the fruits of
progress to all and a minimum living wage to all employed and in
need of protection.
 International Labor Organization (ILO)

(e) The effective recognition for the right of collective bargaining, the
co-operation of management and labour in continuous improvement
of productive efficiency and the collaboration of workers and
employers in social and economic measures.
(f) The extension of social security measures to provide a basic income
to all in need of such protection and comprehensive medical care.
(g) Adequate protection for the life and health of workers in all
occupations.
(h) Provision for child welfare and maternity protection.
(i) The provision of adequate nutrition,. housing, and facilities for
recreation and culture.
(J) The assurance of educational and vocational opportunity.
 International Labor Organization (ILO)
Procedure for Admission as a Member
The constitution of ILO provides that all the states, who
were members of ILO on 1st November, 1945 and any
original member of UN can become member of ILO by
accepting its obligations of its constitution. The
constitution of ILO was amended in 1945, and the ILO
entered into arrangement with the UN. The new rules
say that:
(i) Membership of the UN does not mean membership of
ILO, any original member of the UN and any state
subsequently admitted to the membership of UN may
become member of ILO by communicating to the
Director General, its formal acceptance of the rules and
obligations of the ILO.
 International Labor Organization (ILO)

Procedure for Admission as a Member

(ii) If a state is not a member of the UN, the ILO confess on
the International Labor Conference (lLC - Parliamentary
wing of the ILO), the right to admit that state to
membership, which it had assumed defects during the
period of the relationship of the ILO with the league.
 International Labor Organization (ILO)
Structure of the ILO
The ILO consists of three principal organs namely
(i) the International Labor Conference;
(ii) The Governing Body;
(iii) The International Labor Office.
The work of the conference and the Governing Body is
supplemented by that of Regional Conferences,
Regional Advisory Committee and Industrial
Committees. The conference is the supreme policy
making and legislative body. The Governing Body in the
Executive Council and the International Labor Office are
the secretarial, operational headquarters and
information centre.
 International Labor Organization (ILO)

International Labor International Office

Governing Body
Conference Research Investigation
Representatives of
(1) Examines Technical Cooperation
the
social problems and Publications
(a) Governments
(2) Adopts conventions (b) Employers
for ratification by (c) Workers in the International Centre International
Governments for Advanced Institute
ratio of 2:1:1 Technical and of
(3) It is the electoral Vocational Training Labor Studies
college of the
conference that
elects the Governing
Body.
 International Labor Organization (ILO)

The ILC International Labor Conference:

is the policy making organ of the ILO. It comprises 4 groups
representing governments, employers and workers in the ratio of
2:1:1. ILC holds its sessions once in a year. Delegates to this
session may be accompanied by advisors not exceeding two for
each item on the agenda. The government delegates are mostly
ministers, diplomats or government officials. As per the constitution,
the employers' and workers' delegates to the conference are
nominated by the government of that state in agreement with
respective organizations of employers and workers.
 International Labor Organization (ILO)
The ILC International Labor Conference:
One of the primary powers of the conference is to appoint committees
to deal with different matters during each session. These
committees except finance committee, are tripartite in nature. These
committees are:
(i) The Selection Committees;
(ii) The Credential Committee;
(iii) The Resolution Committee;
(iv)A committee for the application of Conventions and Recom-
mendations;
(v) The Drafting Committee;
(vi)The Committed on Standing Orders;
(vii)The Finance Committee.
 International Labor Organization (ILO)

Functions of ILC (International Labor Conference)

(1 ) To formulate International Labor Standards.
(2) To fix amount of contribution by the member states
(3) To decide the expenditure budgeted estimate proposed by the
Director General and submitted to the Governing Body.
(4) To make amendments to the constitution subject to subsequent
ratification of the amendments by 2/3 member states including 5 of
the 10 states of industrial importance.
(5) To consider the report of the Director General giving labor problems
and assist in their solution.
 International Labor Organization (ILO)

Functions of ILC (International Labor Conference)

(6) To appoint committees to deal with different matters during each
session.
(7) To select once in 3 years members of the Governing Body.
(8) To elect its President.
(9) To seek advisory opinion from the International Committee of
Justice.
(10) To confirm the powers, functions and procedure of Regional
Conference.
 International Labor Organization (ILO)

Governing Body
It is another principal organ of the ILO. It is non-political, non-legislative
partite body. It implements decisions of the ILC with the help of the
International Labour Office. Out of.the 56 members in it, 28
represent the governments, 14 employers and 14 labour. Out of 28
government members, 10 are appointed by the member States of
Industrial Importance and the balance are delegates of the other
governments. The criteria laid down for the selection of members of
industrial importance is the strength of its total industrial population.
India is one of the ten states of Industrial Importance. The tenure of
office of this body is 3 years. It meets several times a year to take
decisions on the programmes of the ILO.
 International Labor Organization (ILO)

Governing Body
The functions of this body are:
(1) To co-ordinate work of the organization.
(2) To prepare agenda for each session and subject to the decision of
the ILC to decide what subject should be included in the agenda of
the ILC.
(3) To appoint the Director General.
(4) To scrutinize the budget.
(5) To follow up the implementation of the conventions and
recommendations adopted by the ILC by member states.
(6) To fix the date, duration and agenda of the Regional conference.
(7) To seek advisory opinion from the International Court of Justice with
the consent of ILC.
 International Labor Organization (ILO)

The International Labor Office

This is the third major and important organ of the ILO. It functions as
the secretariat of the ILO in Geneva. The Director of General of the
ILO is the Chief Executive of the Secretarial. He is appointed by the
Governing Body. He also acts as the Secretary General of the ILO.
conference. His tenure is for 10 years and his term may be
extended by the governing body. The Director General is assisted
by two Deputy Director Generals, six Assistant Director Generals
and by one Director of the International Institute of Labor Studies,
one Director of the International Centre of Advanced Technical and
Vocational Training and of the Staff drawn from 100 nations.
 International Labor Organization (ILO)
The International Labor Office
The important functions for the International Labor office are:
• To prepare documents on the times of the agency for the
conference.
• To assist governments in forming legislations on the basis of the
decisions of the ILC.
• To carry out its functions related to the observance of the
conventions.
• To bring out publications dealing with industrial labor problems of
international interest.
• To collect and distribute information of international labor and social
problems.