Ppts on Industrial Relations

Introduction to industrial relations. Back ground

Growth of labor jurisprudence  Development in Europe in 16th Century  Adoption of philosophy of laissez faire in most of the nations in Europe  Development of Marxian philosophy  Labour unrest in Europe  Emergence of communist states.

Rise of international labour organizations  Danial Le grand’s contribution  International benevolent congresses of 1856 and 1857  International factory and mine labour conference of 1890  International association of labour legislation 1900  Establishment of ILO 1919

ILO’s efforts to standardize principles governing industrial relation through conventions and recommendations.

Meaning of industrial relations  Meaning of industrial relations:  It is a process by which people and their organizations interact at the place of work to establish the terms and conditions of employment.  It denotes employee-employer relations, in both organized and unorganized sectors of the economy.  Definition given by ILO

Importance of industrial relations  Implication of industrial relations on workers and economy.  Development of healthy labour management relations.  Maintenance of industrial peace.  Development of industrial democracy

Factors of industrial relations and factors affecting industrial relations.  Factors of industrial relations  Workers and their organization  Management  The Government

Factors affecting industrial relations.        

Institutional factors Economic factors Social factors Technological factors Psychological factors. Political factors. Enterprise-related factors. Global factors.

Approaches to industrial relations.      

Psychological approach Sociological approach Human relation approach Socio ethical approach Gandhian approach System approach

Human relations approach  For maintaining good human relations in general and industrial relations in particular, the study of human needs is of paramount importance.  Types of human needs    

Physiological needs Safety needs Social needs Egoistic needs

Human relations approach  Physiological needs  Food, water, clothing, shelter etc.  Security needs or safety needs  Physical security  Financial security  Job security  Social needs  Companionship  affection  Egoistic needs  Desire of self-esteem and  Esteem from others.

How to manage IR under Human relations approach  Management has to design a suitable motivational strategy to provide environment for their optimum need satisfaction, required for maintaining good human relations in the organizations, which in turn also leads to good industrial relations.

Human relation approach

cont…

 If both the management and the workers understand and apply the techniques of human relations to industrial relations then it is beneficial for both of them leading to following results:  Workers are to achieve greater job satisfaction, develop greater involvement in their work and achieve a measure of identification of their objectives with the objectives of the organization.  Management will also get greater insight and effectiveness in the work leading to industrial progress

Socio-ethical approach  This approach is not widely accepted  It holds that industrial relations to great extent depends on ethics of the people involved in it.  For maintenance of good Industrial relations both the labour and management should realize their moral responsibility and greater understanding of each other’s problem  Example - Scandinavian approach.

Socio-ethical approach

contd..

 The goal of labour management relations is ensuring maximum productivity, leading to rapid economic development  This goal can be achieved by adequate understanding among employers, workers and the government, of each other’s role in industry and willingness among parties to co-operate as partners in the industrial system.

Role of manager under socioethical approach  Development of a code of ethics a management philosophy industrial relations.  This philosophy should be firm fair, tough but tender and hard human.

and for but but

Gandhian approach to industrial relations.  This approach of industrial relations is based on the following concepts:     

Truth Non-violence Aparigraha Non-co-operation trusteeship

Gandhian approach -

contd…

 Worker has right to strike  This right has to be exercised in a just cause, and in a peaceful and non-violent manner  It should be resorted to only after the employer fail to respond to their moral appeals  Disputes between employers and labourers are to be resolved non-violent means.  Non-co- operation amounts to peaceful strikes

Principles of Aparigraha  Individual does not have any right to hold or use wealth in disregard of the interest of society  The character of production is to be determined by social necessity rather than by personal whims or greed.

Trusteeship  There is no room for conflict of interest between the capitalist and labourers.

Characteristics of Indian labor Social composition Sex composition of workers Emergence of tribal labour Heterogeneity of labour Lack of differentiated class character High rate of absenteeism and labour turnover  Migratory character  Instability and village nexus      

Social composition  Workforce was generally provided by lowest castes, depressed classes.  Present trend

Sex composition  Participation of women in socioeconomic activities is a common practice in developed as well as developing countries of the world.  Position in India  Domination of male workers in earlier stages  Women’s right to work  Constitutional provisions

Tribal labour  Exploitation of forest resources

Heterogeneity of of labour  Division on the basis of caste, communities, ethnic group, religion, language, s

High rate of Absenteeism and labour turnover  Sickness Accidents or maternity  Social and religious causes  Other causes

Labour movement in India  Labour movement confused with trade union movement  It is a movement for the workers  Trade union movement is the movement by the workers  The people involved in the labour movement are social reformers to improve working and living conditions.  It started from 1875  Trade union movement started in 1918

Trade union - Meaning  By Webb “A trade union is a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their working lives.  Clyde states that A trade union is a continuing organization of employees established for the purpose of protecting or improving through collective action, the economic and social status of its members  GDH Cole defines a trade union to mean “an association of workers in one or more professions carried on mainly for the purpose of protecting and advancing the members’ economic interest of members.

Meaning of trade union under trade union Act  It is any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relation between the workmen and employer, or between workmen and workmen, between employers and employers or for imposing restrictive condition on the conduct of any trade or business and includes any federation of two or more trade unions.

General features of trade unions  It is an association of either employers or employees or of independent workers.  Examples of employer’s unions are :  Merchant’s of employers association , all India manufactures organization, Organization of industrial employers, the Tea planters' Association of North India, The united planters’ Association of South India.

 General labour unions  Combination of intellectual labour like All India teachers’ association, all India Bank Employees Association, National federation of Indian Railwaymen, All-India Medical doctors’ association

 Labour unions are relatively permanent association of workers and are not temporary or casual  Trade unions are association engaged in securing economic benefits for its members.  The character of trade unions has been constantly changing  The origin and growth of trade union have been influenced by a number of ideologies

Functions of trade unions in India          

Protect and promote the interest of workers and conditions of their employment. To achieve higher wages and better working and living conditions for members. To acquire control over running of the industry by workers. To minimize the helplessness of the individual workers and protecting them from victimization. To raise the status of the workers as partners in industry To encourage sincerity and discipline among workers Take up welfare measures for improving the morale of the workers To safeguard the security of tenure To enlarge opportunities for promotion and training To provide for educational, cultural and recreational facilities

Types and structures of trade unions.  Unions classified on the basis of purpose  Union classified on the basis of membership structure  Structure of trade unions in India

Trade unions classified according to purpose  Reformist union  Revolutionary union  Reformist union:  Preservation of capitalist society  Maintenance of usual employer-employee relationship,  Elimination of competitive system of production  Desire to modify in industry in accordance with what their members consider to be current modes in society

Reformist union …..  Improving working conditions by enforcing safety measures  Try to generate increased purchasing power  Seek to dignify labour by forcing upon public and its leaders a recognition of the importance of labour in modern society

Revolutionary unions  Aim at destroying the present structure completely and replacing it with new and different institutions.  They seek to destroy capitalist industry and abolish the wage system and private property, to put an end to a society based primarily upon competition and individual rights, and substitute some other system,

Classification of revolutionary unionism    

Anarchist unions Political unions Predatory unionism Guerrilla union

Union classified on the basis of membership structure    

Craft union Staff union Industrial union General union

Craft union  Organizations of workers employed in a particular craft or trade  Such unions link together those workers who have similar skills, craft training and specialization  They are mostly found amongst non-manual employees and professional workers  The members are craft-conscious than class conscious.  These unions aim at safeguarding the interests of the members against the onslaughts of employers.  they provide only the barest minimum of associative integration.

Staff union  It refers to both craft and industrial unions.

Industrial unions  Industrial unions are organisation of workers  Common bond is the industry  They include all type of workers  Organised upon an industry wise rather than a craft wise basis.  Solidarity among them is due to class conciousness.

General unions  Organisations which covers various industries and labourers having different types of skills  Objectives of these unions are allembracing in character  They have numerical superiority  They are open to all classes of workers 

Trade union structure  National federations  Federation of unions

Trade union movement in India  Early years  Slow pace of the trade union movement  First strike at Express Mills at Nagpur  Establishment of Bombay Mill Hands Association by N.M. Lokhande  Limitation of this association

First world war period  Increase in number of strikes and their ruthless suppress of these strikes – starting point of trade union movement  Formation of the Madras labour union 1918  Formation of unions in Bombay and Calcutta in the year 1918 itself  Establishment of unions in all important industries such as railways, docks, textiles, engineering and coal mining in 1920

Between 1920 -29  Formation of AITUC  Expansion of number of trade unions and membership  Enactment of The Indian Trade union Act.1926  Growth of the Left-wing influence on the Indian Trade union Movement  Split in AITUC and formation of Indian trade union federation

Between 1930 -1939  Further split in AITUC and formation of red trade union congress  Reunification of trade union movement

Present scenario of trade union movement in India  Central trade unions     

Indian national trade union congress All Indian trade union congress United trade union congress Bhartiya Mazdoor sangh National front of Indian trade unions

Problems of trade unions  Internal problems  External problems

Internal problems        

Migratory character Heterogeneous character Poor economic condition Illiterate labour Ineffective leadership Lack of unity among different federations. Low membership Low standard of life

External problems    

Problems with respect to recognition Political pressures Out dated labour law Impact of changing industrial scenario

Measures to strengthening trade union movement          

Educating workers Economic and social upliftment Encourage internal leadership Sufficient funds Internal unity Clarity as to recognition Free from political pressure Promotion of welfare activities Training of leaders Mobilizing mass support

Trade unions Act 1926     

Scheme of the Act Registration of trade union Cancellation of registration Recognition of trade union Rights and privileges of registered trade union.

Scope of the Act  It applies to all kinds of unions of workers and association of employers.  It extends to the whole of India

Registration of trade union  Registration is not compulsory  Any seven or more members by subscribing to the rules of the trade union can apply for registration  At least 10% of the applicants should be actually employed in the industry  Application has to be made to the registrar of trade union  Application must be accompanied by copy of the rules of trade union and containing few statutory details

Details to be given along with Application  Name, occupation and addresses of members making application  Name of the trade union and the address of its head office  Titles, names, addresses and occupation of the officers of trade union

Legal status of registered trade union  Trade union is a body corporate  Perpetual succession  Common seal  Registered trade union can sue and be sued in its own name  Can acquire, hold, sell or transfer any moveable or immovable property

Cancellation of registration  On the application  Suo motu  Registration obtained by fraud and mistake  Trade union ceased to exit.  Contravention of provision of trade Act

Recognition of trade union  Recognition of trade union is a voluntary measure  Annexure A to trade union Act 1926 on recognition of trade union  Where there are more than one trade union, a union functioning of for at least one year after registration should get recognition  Once the union is recognized, there should be no change in its position for 2 years  Union with largest membership should be recognized  Unions which observe the code of discipline are entitled to recognition

Collective bargaining  Introduction  Concept of collective bargaining  Definition of collective bargaining

objectives of collective bargaining Prime objective is to maintain cordial relations between the management and the workers; settle disputes relating to wages and working conditions. Safe guard the interest of workers through collective action Prevent unilateral action on part of the employers To raise workers standard of living and win a better share in company's profit Democratic participation in decision making on the working conditions

Pre-requisites of effective collective bargaining          

Freedom of association Strong and stable trade union Enlightened management Mutual trust There should not be exaggerated demands It should be undertaken in the spirit of accommodation rather than conflict Regular meetings between representatives and employers to consider matters of common interest. Problem solving attitude Favourable political climate Avoidance of unfair labour practices from both sides

Factors inhibiting collective bargaining in India  Lack of proper appreciation as to the philosophy, objectives and advantages of collective bargaining among workers and also on the part of employers and policy makers.  Multiplicity of trade unions and rivalry among unions.  Organizational and financial weakness of trade unions  Lack of definite procedure to determine as to recognition of trade union  Frequent political intervention in the process of collective bargaining which gives political colour and orientation to the collective bargaining process  Provision of elaborate adjudication machineries  Comprehensive coverage of labour laws

Grievance Handling and Industrial Discipline  Meaning of grievance  Grievance is a complaint or representation as regards to work place related matter arising from employment or service condition

Causes of grievances      

Matters like discipline and dismissal Payment of wages and fringe benefits Working time, over-time entitlements Promotion, demotion and transfer Rights deriving from seniority Obligations relating to safety and health as laid down in the agreement

Procedure for settlement of grievances

Procedure for settlement of grievances  Model grievance procedure

Indiscipline and misconduct  Meaning of indiscipline and misconduct  Causes of misconduct  Forms of misconduct

Standing order Meaning Objects of standing orders Model standing orders Types of punishments under standing orders Law dealing with standing orders    

Disciplinary proceedings

Ethical codes and industrial relations

Industrial disputes (Conflicts)  Definition of industrial disputes  Essentials of industrial disputes    

Factum of dispute Parties to the dispute Subjectmatter to the disputes Origin of disputes

Industrial disputes

 Classification of industrial dispute  Impact of industrial disputes  Causes of industrial disputes

Strikes and lock out      

Meaning Types of strikes When strikes justified? When the strike becomes illegal Meaning of lockout Right to lock out

Dispute settlement inside the organization    

Works committee Joint management councils Grievance settlement authority Domestic enquiry

Dispute settlement machinery outside the organization  Conciliation

 Arbitration  Adjudication

conciliation  Conciliation  definition

 Conciliation officer      

Meaning Appointment Procedure Powers Functions of conciliation officers Duties of conciliation officer

Board of conciliation  Constitution of board of conciliation  Duties of Board  Commencement and conclusion of conciliation proceedings  Persons on whom settlement is binding  Period of operation of settlement

Adjudication     

Meaning of adjudication Constitution of adjudicating authority Judges of labour courts Jurisdiction of labour courts Duties of labour courts

Industrial tribunal    

Constitution Judges of tribunal Jurisdiction Functions of tribunals

National tribunal      

Constitution Presiding officer of national tribunal Jurisdiction Procedure Powers Finality of orders of national tribunal

High courts and Supreme Court

Awards of the adjudication bodies Definition of awards Form of the award Publication of award Enforcement of award Persons on whom the award is binding  Penalty for breach of award.     

Arbitration       

Definition of arbitration Voluntary arbitration Reference to arbitrator Selection of arbitrator Arbitration agreement Publication of arbitration agreement Jurisdiction of arbitrator

Arbitration - continued  Procedure before the arbitrator  Functions of arbitrator  Commencement of arbitration proceedings  Status of arbitrator  Award of arbitrator  Exclusion of the arbitration Act

Workers participation in management  Evolution of concept of worker’s participation in the management  Participation of workers in management in industrially advanced countries  Levels of participation  Sachar’s committee on worker’s participation.  Varma’s committee on workers participation in management

Various policy and legislative measures to ensure industrial democracy in India

Form of workers participation in India    

Joint councils and their function Plant council and its function Shop councils and their functions. Scheme of workers’ participation in management in India.