INDUSTRIAL RELATIONS:

Industrial relations constitute one of the most delicate and complex problems
of the
modern industrial society that is characterised by rapid change, industrial
unrest and
conflicting ideologies in the national and international spheres. It is a
dynamic concept
that depends upon the pattern of the society, economic system and political
set-up of a
country and changes with the changing economic and social order. It is an
art of living
together for the purposes of production, productive efficiency, human well-
being and
industrial progress. It comprises of a network of institutions, such as, trade
unionism,
collective bargaining, employers, the law, and the state, which are bound
together by a
set of common values and aspirations. Knowledge of such institutions is
important if
we are to understand every day industrial relations phenomena. These
institutions are
a social network of organisations, participants, processes and decisions: all of
which
interact and inter-relate together within the industrial relations environment
and even
beyond it.

Industrial progress is impossible without cooperation of labors and

harmonious relationships. Therefore, it is in the interest of all to create and
maintain good relations between employees (labor) and employers
(management).
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.”

Industrial relations is used to denote the collective relationships between

management and the workers. Traditionally, the term industrial relations is
used to cover such aspects of industrial life as trade unionism, collective
bargaining, workers’ participation in management, discipline and grievance
handling, industrial disputes and interpretation of labor laws and rules and
code of conduct.
In the words of Lester, "Industrial relations involve attempts at arriving at
solutions between the conflicting objectives and values; between the profit
motive and social gain; between discipline and freedom, between authority
and industrial democracy; between bargaining and co-operation; and
between conflicting interests of the individual, the group and the
community”.

Good industrial relations is the basis of higher production with minimum cost
and higher profits. It also results in increased efficiency of workers. New and
new projects may be introduced for the welfare of the workers and to
promote the morale of the people at work. An economy organized for
planned production and distribution, aiming at the realization of social justice
and welfare of the massage can function effectively only in an atmosphere of
industrial peace. If the twin objectives of rapid national development and
increased social justice are to be achieved, there must be harmonious
relationship between management and labor.

Main objectives of industrial relations system are:-

 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 strike and develop harmonious relations,

which are an essential factor in the productivity of workers and the
industrial progress of a country.

 To raise productivity to a higher level in an era of full employment by

lessening the tendency to high turnover and frequency absenteeism.

 To establish and promote the growth of an industrial democracy based

on labor partnership in the sharing of profits and of managerial
decisions, so that ban individuals personality may grow its full stature
for the benefit of the industry and of the country as well.

To establish government control of such plants and units which are

running at a loss or in which productions has to be regulated in the
public interest. In fact the subsidy is to provide for stable of the
productions. It is necessary for mankind.

 To improve the economic conditions of workers in the existing state of

industrial managements and political government.
 Socialization of industries by making the state itself a major employer
  Vesting of a proprietary interest of the workers in the industries in
which they are employed.

SCOPE:

The concept of industrial relations has a very wide meaning and connotation.
In the narrow sense, it means that the employer, employee relationship
confines itself to the relationship that emerges out of the day to day
association of the management and the labor. In its wider sense, industrial
relations include the relationship between an employee and an employer in
the course of the running of an industry and may project it to spheres, which
may transgress to the areas of quality control, marketing, price fixation and
disposition of
profits among others.

The scope or industrial relations is quite vast. The main issues involved here
include the following:

1. Collective bargaining

2. Machinery for settlement of industrial disputes

3. Standing orders

4. Workers participation in management

5. Unfair labor practices

Functions of Industrial Relation Executives in India

IRE shall clarify with the Industrial Relations Department of the Region re:
any
ambiguity about applicability of any particular law or rule or procedure.

1. Ensuring timely initiation and proper compliance of statutory requirements

under various labour laws.
2. Recruiting of workmen as per the selection procedure specified [such as
site
requirement as confirmed by MANAGEMENT, background clearance, skills
test & confirmation]
3. Ensuring disbursement of statutory minimum wages, and review of skill
grades
and wage rates if warranted.
4. Obtaining/generating and maintaining the requisite statutory records
relating to
attendance, overtime and earnings of all workmen at the site.
5. Ensuring that overtime work and its payment are in accordance with the
statutory requirements
6. Arranging, maintaining and rendering medical first aid to workmen of the
site,
as and when need arises.
7. Arranging hygienic up-keep of labour camp(s), site canteen(s), sanitary
facilities
and crèche/rest rooms at all times.
8. Displaying the specified statutory notices in accordance with labour laws
and
updating them, as and when required
9. Implementing all rules, procedures, directives etc. applicable under
various
statutes including those prescribed by the Management.
10. Installing and operating the internal systems of the company in relation
to
attendance recording, overtime work, wages records, statutory deductions
and
any other specified matters.
11. Reporting the labour strength, attendance, PF Coverage, IR & WC cases,
Black
listed workmen, overtime details, cost information of labour wages and
related
expenses to MANAGEMENT and to the IR Dept periodically.

12. Liaisoning with labour department, job related government officials, the
workmen, sub-contractors and special agencies to maintain good industrial
relations and to ensure full statutory compliances

Need for Industrial Peace.

The objectives of maintenance of industrial peace is not only find out ways
and means to solve conflicts or to settle differences but also to secure the
unreserved cooperation of and goodwill among different groups in industry
with a view to drive their energies and interest towards economically viable
commercially feasible ,financially profitable and socially desirable channels.
It also aims at the development of a sense of mutual confidence
,dependence and respect and at the same time encouraging them to come to
closer to each other for removing misunderstanding ,redressing grievances
,if any ,in a peaceful atmosphere and with open mind and fostering industrial
pursuits for mutual benefits and social progress

Collective Bargaining
Collective Bargaining is a process in which representatives of two groups (employers and
employees) meet and try to negotiate an agreement which specifies the nature of future
relationship (pertaining to employment) between the two.

According to Flippo, “Collective Bargaining is a process in which the representatives of a labour

organization and the representatives of business organization meet and attempt to negotiate a
contract or agreement, which specifies the nature of employee employer-union relationship.”

Features of Collective Bargaining

 It is joint or collective process. The representatives of both the management and the
employees participate in it.

 It is a continuous process. It involves not only the negotiation of the contract, but also the
administration and application of the contract which means it is a day-to-day activity.

 It is a dynamic process. The parties have to adopt a flexile attitude throughout the process
of bargaining.

 It is a form of industrial democracy.

 It is an adjustment formula based on give and take approach of both sides.

 It is an attempt to achieve and maintain discipline in industry.

SUBJECT MATTER OF COLLECTIVE BARGAINING

The subject matter of collective bargaining covers a variety of issues affecting employment
relationships between the workers and the management. The issues covered in the collective
bargaining are recognition of union or unions, wages and allowances, hours of work, leave and
festival holidays, bonus and profit sharing schemes, seniority, rationalization and the issues
relating to the fixation of workloads, and standard labour force, programmers of planning and
development influencing workforce, issues relating to retrenchment and lay off, victimization for
trade union activities, provident fund, gratuity and other retirement benefit schemes, incentive
systems, housing and transport facilities, issues relating to discipline and shop rules, grievance
procedure, working conditions and issues related to safety and accident prevention, occupational
diseases and protective clothing, employee benefits such as canteens, rest rooms, medical and
health services and crèches, administration of welfare funds, cooperative thrift and credit
societies and educational, recreational and training schemes.

IMPORTANCE OF COLLECTIVE BARGAINING

Collective Bargaining not only includes negotiation, administration and enforcement of the
written contracts between the employees and the employers, but also includes the process of
resolving labour-management conflicts. Thus, collective bargaining is a legally and socially
sanctioned way of regulating in the public interest the forces of power and influence inherent in
organized labour and management groups.

IMPORTANCE TO EMPLOYEES

 To develop a sense of self-respect and responsibility among the employees.

 To increase the strength of the workers. Their bargaining capacity as a group increases.

 To increase the morale and productivity of employees.

 To restrict management’s freedom for arbitrary action against the employees. Unilateral
actions by the management are discouraged.

 To strengthen the trade union movement.

IMPORTANCE TO EMPLOYERS

 The workers feel motivated as they can talk to the employers on various matters and
bargain for higher benefits. As a result, their productivity increases.

 It is easier for the management to resolve issues at the bargaining table rather than taking
up complaints of employees individually.

 Collective bargaining promotes a sense of job security among the employees and thereby
tends to reduce cost of labour turnover to management, employees as well as the society
at large.

 Collective bargaining opens up the channels of communications between the top and
bottom levels of organization which may be difficult otherwise.

IMPORTANCE TO SOCIETY
  To attain industrial peace in the country.

 To establish a harmonious industrial climate which supports the pace of a nation’s efforts
towards economic and social development since the obstacles to such development can be
largely eliminated or reduced.

 To extend the democratic principle from the political to the industrial field. It builds up a
system of industrial jurisprudence by introducing civil rights in industry and ensures that
management is conducted by rules rather than by arbitrary decisions.

 To check the exploitation of workers by the management.

 To distribute equitably the benefits derived from industry among all the participants
including the employees, the unions, the management, the customers, the suppliers and
the public.

Role of industrial relations in the structural change of

organizations

In the current rapidly changing economic environment, there has been an increasing tendency
since the 1990s for employers, trade unions and workers to come together to create non-
traditional structures aimed at meeting their various interests at work. More progressive
companies and unions have used the collective bargaining process as a means to tackle the
competitive pressures resulting from globalisation. Some have created partnerships based on new
methods of communication and conflict resolution, joint decision-making in many areas, new
work processes involving greater creative freedom for workers, and continuous training.

Reason behind this change

There is momentous change in both organizational structure and work processes – involving
greatly increased labour-management cooperation which has been driven not by union pressure
tactics or favorable legal forces or by a sudden spirit of cooperation among labour and
management interests. The mutually dependent relationship between labour and management has
arisen by necessity in this highly competitive, global, skills-driven, increasingly fragmented, and
information- and services-oriented economy.

CHANGING ENVIRONMENT

This has been well documented; the developed world has undergone a dramatic shift from
manufacturing to services and information on the basis of economic development over the last 35
years. As a result, businesses are under ever-increasing pressure to make goods 'better, faster and
cheaper'. With the disappearance of manufacturing jobs and the importance of information
processing and customer service, the need for 'brawn' has given way to the need for 'brains'. This
phenomenon has been referred to as 'skill-biased technological change', referring to the
increasing demand for skilled workers in the post-industrial economy.
The new era of rapid technological change and voluminous, increasingly sophisticated
information flow has made it necessary for workers to have the freedom to be creative in
developing effective work processes. This is true simply because there is too much information
for managers to keep control of, and the simultaneous tasks that arise in today's workplace are
multifaceted and increasingly demand of new learning and understanding.

Today's workers require an environment of both constant, formal upgrading of skills as well as
an environment that encourages the manager-to-worker and worker-to-worker interactions that
are conducive to informal learning. In addition, the ongoing reduction in trade-based protection
for industries necessitates that governments, businesses and workers alike constantly adapt to
embrace constantly evolving economic opportunities as well as threats.

CHANGING MANAGEMENT AND LABOUR INTEREST

From management's point of view

It needs a highly skilled, flexible workforce that fills in the gaps that middle managers used to fill
in terms of spotting problems and generating solutions at the working level. Management needs a
workforce that is willing and able to learn new tasks and perform new functions. It needs workers
who have well developed 'soft' skills such as the ability to communicate clearly and respectfully,
to listen actively, to empathize and to react to situations non-defensively.

From Labor’s point of view

Workers need a good basic education system to develop the analytical skills required to be
productive in an information-driven workplace. workers need employers to step up and provide
not only initial job training but also continuing opportunities for skills development.

Workers need opportunities to utilize their skills to 'create' in accordance with their values,
talents and abilities and, as a consequence, enjoy the value of their creations.

Regarding discrimination, whereas workers still need protection from discrimination on the basis
of defined categories - race, ethnicity, religion, disability and gender - in an environment of
reduced legal protections, workers also need more fairness of the type that cannot be legislated.

Labour and management working together to meet

changing interests

In recent years, employers, workers and unions have come together to create non-traditional
structures to draw upon both sides' resources at the plant level, the company level, and the
sectoral level. Their efforts have been augmented, and in many cases jump-started through
Mediation and Conciliation Service. In addition, there are a growing number of private
sector human resources and labour relations consultants working with organisations to
provide flexible, 'just-in time' responses to the latters' labour relations challenges.
 More progressive companies and their unions have used the collective
bargaining process as a means to tackle the competitive pressures
resulting from globalisation, as opposed to using the process to resist
such pressures.

Contract Labour (Regulation and Abolition) Act, 1970

LEGISLATIVE FRAMEWORK

The Government of India has been deeply concerned about the

exploitation of workers under the contract labour system. With a
view to removing the difficulties of contract labour and bearing in
mind the recommendations of various commissions and committees
and the decisions of the Supreme Court, particularly in the case of
Standard Vacuum Refining Company in 1960, the Contract Labour
(Regulation and Abolition) Act was enacted in 1970. This Act seeks
to regulate the employment of contract labour in certain
establishments and to provide for its abolition under certain
circumstances.

Contract Labour, by and large, is neither borne on pay roll or

muster roll nor is paid wages directly. The establishments, which
farm out work to contractors, do not own any direct responsibility in
regard to their labourers. Generally, the wage rates to be paid and
observance of working conditions are stipulated in agreements but
in practice they are not strictly adhered to.

The Main Features of the Act

The main features of the Act can be summarised thus:-

The Act applies to every establishment in which 20 or more

workmen are employed or were employed on any day on the
preceding 12 months as contract labour and to every contractor
who employs or who employed on any day of the preceding 12
months 20 or more workmen. It does not apply to establishments
where the work performed is of intermittent or casual nature. The
Act also applies to establishments of the Government and local
authorities as well.

The Central Government and the State Governments are

required to set up Central Advisory Board and State Advisory
Boards, which are authorised to constitute Committees as deemed
proper. The functions of the Boards are advisory, on matters arising
out of the administration of the Act as are referred to them. The
Boards carry out the functions assigned to them under the Act.

The establishments covered under the Act are required to be

registered as the Principal Employer. Likewise, every contractor to
whom the Act applies is required to obtain a licence and not to
undertake or execute any work through contract labour except
under and in accordance with the licence issued.

The Act has provided for establishment of canteens. For the

welfare and health of contract labour, provision is made for
restrooms, first aid, wholesome drinking water, latrines and urinals.
In case of failure on the part of the contractor to provide such
facilities, the Principal Employer is made liable to provide the
amenities.

The contractor is required to pay wages and a duty is cast on

him to ensure disbursement of wages in the presence of the
authorised representative of the Principal Employer. In case of
failure on the part of the contractor to pay wages either in part or in
full, the Principal Employer is liable to pay the same. In case the
contract labour perform same or similar kind of work as regular
workmen, they will be entitled to the same wages and service
conditions as regular workmen as per the Contract Labour
(Regulation and Abolition) Central Rules, 1971.

The Act makes provision for the appointment of Inspecting staff,

for maintenance of registers and records, for penalties for the
contravention of the provisions of the Act and Rules made
thereunder and for making Rules for carrying out the purpose of the
Act. In the central sphere, officers of the CIRM have been appointed
as Inspectors.

Apart from the regulatory measures provided under the Act for
the benefit of the contract labour, the ‘appropriate government’
under section 10(1) of the Act is authorised, after consultation with
the Central Board or State Board, as the case may be, to prohibit, by
notification in the official gazette, employment of contract labour in
any establishment in any process, operation or other work.

Sub-section (2) of Section 10 lays down sufficient guidelines for

deciding upon the abolition of contract labour in any process,
operation or other work in any establishment and the ‘appropriate
government’ while taking action under this Section will have to take
an overall picture of the industry carrying on similar activities. The
guidelines furnished under sub-section (2) oblige the ‘appropriate
government’ to consider, as relevant data, the material to which it
must have regard. The Central Government on the
recommendations of the Board has abolished contract labour
system in a number of jobs in different industries and so far 76
notifications have been issued.
 TRADE UNION
The existence of a strong and recognized trade union is a pre-requisite to
industrial peace. Decisions taken through the process of collective bargaining
and negotiations between employer and unions are more influential. Trade
unions play an important role and are helpful in effective communication
between the workers and the management. They provide the advice and
support to ensure that the differences of opinion do not turn into major
conflicts. The central function of a trade union is to represent people at work.
But they also have a wider role in protecting their interests. They also play
an important educational role, organizing courses for their members on a
wide range of matters. Seeking a healthy and safe working environment is
also prominent feature of union activity.

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.

Trade unions are a part of society and as such, have to take into
consideration the national integration as well. Some important 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

OBJECTIVES OF TRADE UNIONS

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. Trade unions are formed to
achieve the following objectives:

• Representation

Trade unions represent individual workers when they have a problem

at work. If an employee feels he is being unfairly treated, he can ask
the union representative to help sort out the difficulty with the
manager or employer. Unions also offer their members legal
representation. Normally this is to help people get financial
compensation for work-related injuries or to assist people who have to
take their employer to court.

• Negotiation

Negotiation is where union representatives, discuss with management,

the issues which affect people working in an organization. There may
be a difference of opinion between management and union members.
Trade unions negotiate with the employers to find out a solution to
these differences. Pay, working hours, holidays and changes to working
practices are the sorts of issues that are negotiated. In many
workplaces there is a formal agreement between the union and the
company which states that the union has the right to negotiate with
the employer. In these organizations, unions are said to be recognized
for collective bargaining purposes.

• Voice in decisions affecting workers

The economic security of employees is determined not only by the

level of wages and duration of their employment, but also by the
management’s personal policies which include selection of employees
for lay offs, retrenchment, promotion and transfer. These policies
directly affect workers. The evaluation criteria for such decisions may
not be fair. So, the intervention of unions in such decision making is a
way through which workers can have their say in the decision making
to safeguard their interests.

• Member services

During the last few years, trade unions have increased the range of
services they offer their members. These include:
 • Education and training - Most unions run training courses
for their members on employment rights, health and safety
and other issues. Some unions also help members who have
left school with little education by offering courses on basic
skills and courses leading to professional qualifications.

• Legal assistance - As well as offering legal advice on

employment issues, some unions give help with personal
matters, like housing, wills and debt.

• Financial discounts - People can get discounts on

mortgages, insurance and loans from unions.

• Welfare benefits - One of the earliest functions of trade

unions was to look after members who hit hard times. Some of
the older unions offer financial help to their members when
they are sick or un

FUNCTIONS OF TRADE UNION

Trade unions perform a number of functions in order to achieve the

objectives. These functions can be broadly classified into two:-

1) Militant functions

2) Fraternal functions

Militant Functions:-

One set of activities performed by trade unions leads to the betterment of

the position of their members in relation to their employment. The aim of
such activities is to ensure adequate wages, secure better conditions of work
and employment, get better treatment from employers, etc. 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 go-slow tactics, strike, boycott, gherao, etc.
Hence, these functions of the trade unions are known as militant or fighting
functions. Thus, the militant functions of trade unions can be summed up as:

• To achieve higher wages and better working conditions

• To raise the status of workers as a part of industry

• To protect labors against victimization and injustice

Fraternal Functions:-

Another set of activities performed by trade unions aims at rendering help to

its members in times of need, and improving their efficiency. Trade unions
try to foster a spirit of cooperation and promote friendly industrial relations
and diffuse education and culture among their members. They take up
welfare measures for improving the morale of workers and generate self
confidence among them. They also arrange for legal assistance to its
members, if necessary. Besides, these, they undertake many welfare
measures for their members, e.g., school for the education of children,
library, reading-rooms, in-door and out-door games, and other recreational
facilities. 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. Thus, the fraternal functions of trade unions can be
summed up as:

• To take up welfare measures for improving the morale of workers

• 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

Historical Evolution Of Trade Unions In India

The Trade unionism in India developed quite slowly as compared to the

western nations. Indian trade union movement can be divided into three
phases:-

The first phase (1850 to 1900)

During this phase the inception of trade unions took place. During this
period, 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, the wages were also low and general economic
conditions were poor in industries. In order to regulate the working hours and
other service conditions of the Indian textile laborers, the Indian Factories Act
was enacted in 1881. As a result, employment of child labor was prohibited.
The growth of trade union movement was slow in this phase and later on the
Indian Factory Act of 1881 was amended in 1891. 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 by this time.

The second phase (1900 to 1946)

This phase was characterized by the development of organized trade unions

and political movements of the working class. Between 1918 and 1923, many
unions came into existence in the country. At Ahmedabad, under the
guidance of Mahatma Gandhi, occupational unions like spinners’ unions and
weavers’ unions were formed. A strike was launched by these unions under
the leadership of Mahatma Gandhi who turned it into a satyagrah. These
unions federated into industrial union known as Textile Labor Association in
1920.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. During 1928, All

India Trade Union Federation (AITUF) was formed.

The third phase

This phase began with the emergence of independent India (in 1947). The
partition of country affected the trade union movement particularly Bengal
and Punjab. By 1949, four central trade union organizations were functioning
in the country:

1. The All India Trade Union Congress,

2. The Indian National Trade Union Congress,

3. The Hind Mazdoor Sangh, and

4. The United Trade Union Congress

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.

Structure of Trade Unions in India

In India, the structure of trade union consists of three levels: plant/shop or
local, the state and the centre. It is generally from the central level that the
ideology of the important central federations of labour in India percolates
down to the state and local levels. Every national or central federation of
labour in India has state branches, state committees or state councils, from
where its organization works down to the local level. There are two types of
organizations to which the trade unions in India are affiliated:

(i) National Federations, and

(ii) The Federations of Unions

Here a brief discussion of this trade union form is given.

1. The National Federations have all the trade unions in a given industry
as their affiliated members. Every trade union, irrespective of the industry to
which it belongs, can join a general national federation. Such federations are
the apex of trade union policies a national character. The central union
organizations are national federations of

labour based on different political ideologies. Because of their political

leanings, the affiliated trade unions in the field of labour relations follow
either a militant policy or a policy of cooperation with the employers and the
government, or a policy of continuous strife and litigation. The trade union
leadership to these national organizations is generally provided by the
politicians. Such leaders are found leading a dozen or more unions in a
particular state.

These unions may be in the petroleum industry, the transport industry,

electricity supply undertakings or craft unions, such as the rickshaw pullers’
union or taxi drivers’ union. Some of the trade union leaders and MPs and
MLAs, corporators of city corporations and members of important
committees dealing with the labour policy of the country. The
national/central federations are empowered to decide the question of
jurisdiction of the various local and national unions.

A majority of these federations allow their affiliates to bargain independently

with their respective employers. The federations only act as coordinating
authorities for different unions under their control. They also select delegates
to represent workmen in international conferences organized by the
International Labour Organisation or the International Confederation of Free
Trade Unions. The all-India federation of trade unions has a regular structure.
For example:

The INTUC consists of a central organization, affiliated unions, industrial

federation,regional branches and councils functioning under the direct
control or supervision of the central organization, the assembly of delegates,
the general council and the working committees.

The INTUC functions through its affiliated unions, delegates, assembly,

general council(including office-bearers), the working committees of the
general council and the Pradesh bodies.

The UTUC consists of the general body (.delegates’ assembly) general

council, and theworking committee of general council.

The Hind Mazdoor Sabha (HMS) works through the general council, the
working committee and affiliated organization.

2. Federations of Unions: These are combinations of various unions for

the purpose of gaining strength and solidarity. They can resort to concerted
action, when the need for such action arises, without losing their
individuality. Such federations may be local, regional, state, national and
international. There are a few organizations which are local in character,
such as the Bharatiya Kamas Sena, the Labour Progressive Federation,
Chennai, the National Front of Indian Trade Unions and the Co-ordinating
Committee of Free Trade Unions.

Many Unions are affiliated to one or the other type of the following central
organizations of workers:

(1) The Indian National Trade Union Congress

(2) The All-India Trade Union Congress

(3) The Hind Mazdoor Sabha

(4) The United Trade Union Congress

(5) The Centre of India Trade Unions

(6) Bharatiya Mazdoor Sangh

(7) The National Front of India Trade Unions

(8) The United Trade Union Congress (LS)

(9) The National Federation of Independent Trade Unions

(10) The Trade Union Co-ordination Committee

(11) Indian Confederation of Labour

(12) Hind Mazdoor Kisan Panchayat

(13) National Labour Organization

Besides the affiliated unions and their federations, there are a large number
of associations and federations which have not joined any one of the central
workers’organizations. Some of these are:

(1) The All India Bank Employees’ Association;

(2) The All India Bank Employees’ Federation;

(3) The All India Insurance Employees’ Association;

(4) The All India Defence Employees’ Federation;

(5) The All India Railway men’s Fed Reasons for Joining Trade Union
federation;

(6) The National Federation of Posts and Telegraphs Employees;

(7) The National Federation of Indian Railway men;

(8) All India Pvt. Employees Federation;

(9) All India Electricity Employees Federation;

(10) All India Port and Dock Workers Federation;

(11) All India Defence Workers Federation;

(12) All India Chemical and Pharmaceutical Employees Federation.

REASONS FOR JOINING TRADE UNION
The important forces that make the employees join a trade union as follows:

1. Greater Bargaining Power

The individual employee possesses very little bargaining power
as compared to that of his employer. If he is not satisfied with
the wage and other conditions of employment, he can leave the
job. It is not practicable to continually resign from one job after
another when he is dissatisfied. This imposes a great financial
and emotional burden upon the worker. The better course for him
is to join a union that can take concerted action against the
employer. The threat or actuality of a strike by a union is a
powerful tool that often causes the employer to accept the
demands of the workers for better conditions of employment.
2. Minimize Discrimination
The decisions regarding pay, work, transfer, promotion, etc. are
highly subjective in nature. The personal relationships existing
between the supervisor and each of his subordinates may
influence the management. Thus, there are chances of
favoritisms and discriminations. A trade union can compel the
management to formulate personnel policies that press for
equality of treatment to the workers. All the labor decisions of
the management are under close scrutiny of the labor union. This
has the effect of minimizing favoritism and discrimination.
3. Sense of Security
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.
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.
4. Sense of Belongingness
Many employees join a union because their co-workers are the
members of the union. At times, an employee joins a union under
group pressure; if he does not, he often has a very difficult time
at work. On the other hand, those who are members of a union
feel that they gain respect in the eyes of their fellow workers.
They can also discuss their problem with’ the trade union
leaders.
 5. Platform for self expression
The desire for self-expression is a fundamental human drive for
most people. All of us wish to share our feelings, ideas and
opinions with others. Similarly the workers also want the
management to listen to them. A trade union provides such a
forum where the feelings, ideas and opinions of the workers
could be discussed. It can also transmit the feelings, ideas,
opinions and complaints of the workers to the management. The
collective voice of the workers is heard by the management and
give due consideration while taking policy decisions by the
management.
6. Betterment of relationships
Another reason for employees joining unions is that employees
feel that unions can fulfill the important need for adequate
machinery for proper maintenance of employer-employee
relations. Unions help in betterment of industrial relations among
management and workers by solving the problems peacefully.

Criticism Of Trade Unions

Inspite of the noble causes and social objectives of the trade unions, at the
functional level they are being criticized for having bureaucratic attitude,
organized from the top downwards, dividing workers on the basis of the job
they do, and more often than not working hand-in-glove with employers.

Trade unions are turning away from collective organization and

concentrating more on individual representation and providing legal and
financial benefits.

Another important issue is the involvement of the trade union leaders in

active politics, which has by and large lost the purpose of protecting workers
from exploitation.

Workers associations in our country are highly fragmented and the

consequence has been the multiplicity of unions. Multiplicity is caused by
ideological rifts, personal ambitions of leaders, caste and religion. SAIL has
240 unions, Calcutta Corporation has 100 unions, Delhi Transport
Corporation has 50 unions. The multiplicity of union weakens the bargaining
strength of employees. The management’s position is no better. For
example, the management of the Calcutta based Dolphin Laboratories which
had raised money in the capital market in May 1994, to start a second
manufacturing base in Gujarat, was forced two months later, to shift
completely from West Bengal because of intra- union rivalry over the
duration of wage agreement.

Another phenomenon has been the interfering role of the political leaders
in the affair of the union for their basic self interest to be fulfilled in using
the workers forum in a negative way. This is partly due to the worker’s low
level of education, lack of opportunities to gain experience and therefore
their dependence on a small elite of educated influential people. All these
has lead to the domination of the trade unions positions by outside
leaders.
 INDUSTRIAL DISPUTES ACT, 1947

The Industrial Disputes Act, 1947 is a piece of social legislation enacted to provide
for investigation and settlement of industrial disputes and certain other matters. It is an Act
calculated to ensure specific justice to both employers and workmen and advance the progress of
industry by bringing about harmony and cordial relation relationship between the parties. In
achieving this goal, industrial adjudication takes into the account several principles such as the
principle of comparable wages, productivity of the trade or industry, cost of living and ability of
the industry to pay, etc. apart from several other factors. In deciding an industrial dispute one of
the primary objectives is and has to be the restoration of peace and goodwill in the industry itself
on fair and just basis to be determined in the light of all relevant considerations.

DEFINITION
As per section 2(k)of Industrial Dispute or difference between employers and employees,
employers and employers or employees and employees which is connected with the employment
or non employment or the terms of employment or with the conditions of labour, of any person.

The dispute
which has resulted in strained relations is a controversy in which the workman is directly or
substantially interested. It must also be a grievance felt by the workman which the employer is in
a position to remedy.

The term Industrial Dispute connotes a real and substantial difference having some elements of
persistency and continuity, till resolved and likely, if not, adjusted to endanger the industrial
peace of the undertaking or the community. When the parties are at variance and the dispute or
difference is connected with the employment or non employment or terms of employment or
with the condition of labour. There comes in to existence an industrial dispute.

The dialectical interests of the workmen and employers, the

growing labour consciousness and ever expanding complex industrial spectra, entail frequent
frictions of the opposite interests resulting in strikes and lockouts paralyzing the industrial world
warranting amicable settlements to put an end to the dispute already in existence or to prevent an
apprehended to dispute to take genesis of.
 As per sec. 2(i) of the Industrial Disputes Act, 1947 a person shall be deemed to be
independent to be appointed as chairman or member of a Board, Court or Tribunal if he
has no connection with the industrial dispute or with any industry directly affected by
such dispute which is referred to such Board, Court or Tribunal.
GENERAL CAUSES OF INDUSTRIAL DISPUTES

 Close mindedness of employers and employees one thinking to extract maximum

work with minimum remuneration, other thinking to avoid work and get more
enhancements in pay and wages.

 Irrational wage, wage system and structure not mutually acceptable.

 Poor working environment, low presence of safety, hygiene conditions vitiated

atmosphere for smooth working.

 Poor human relations , and lack of dexterity on the part of management personnel

 Lack of control over the situations erosion of discipline, which rebounds.

 Introduction of new technology or automation mechanization
Computerization etc. without proper consultations, preparation and discussion with
workers and creating climate.
 Nepotism, unequal work loads, disproportionate wage, and responsibilities.
 Adoption of unfair labour practices either by employer or employees and union.
 Unjustifiable profit sharing and not considering workers as co-shares of the gains
of the industry.
 Frequent union rivalries over membership foisting up of fake unions.
 Strikes lock out, lay off, and resulting retrenchment due to high handedness on the
part of the concerned.
 Throwing away the agreements and arrived settlements.
 Militancy of the unions.
 Attitude of political parties who may indirectly control the unions for their own
gains or to get a hold on the industry.

CAUSES OF INDUSTRIAL UNREST

 FINANCIAL ASPECT

 Demand for increase of wages, salaries and other perks. workers demand goes on
increasing with the increase in cost of living
 Demand for more perks, and fringe benefits. Issue of bonus also has become a
contentious one, even though Bonus Act has come fixing minimum rate payable as 81/3%
of their total salary in spite of profit or loss incurred by the industry.

 Incentives festivals allowances, concessions etc requires a hike every now and then,
workers compare these benefits with other industries and demand them –without
comparing the capacity of the industry where they are working.

 NON-FINANCIAL ASPECT

 Working hours, rest hours, traveling hours are source of disputes. If houses are
provided some section of workers want to include travel time also as working hours.

 Introduction of machines, computers modernization, automation – In effect any act of

management which may result in economy in man power is resisted

 More facilities like free meals free group travel etc is sought every now and then.

 ADMINISTRATOR CAUSE

Non implementation of agreements awards and other local settlements – with full sprit

Stifling with recognition of labour unions though registered, attempt to weaken existing
trade unions and trying to foist fake unions

Un healthy working conditions

Lack of skill on the part of leaders supervisors

Disproportionate works loads, favoritism

 Victimizations, nepotism attitude of management in recruitment, promotion, transfer etc,.

Instead of re deployment or skill improvement easier way of retrenchment forced

voluntary retirement schemes (C.R.S) are adopted.

 POLITICAL PRESSURES

Industrial unions affiliating with political unions which are in power, resulting in frequent
shift of loyalty and resultant unrest
  Politician influencing workers group closes examples is the Nalco – taken over by
Sterlite, the state government supported (propped up) strike at Chhattisgarh state against
Nalco, for months together resulting in total stoppage of the industry for some time.

 Some time unions, workers strike against mergers, acquisition, taken over,
disinvestments policies, of government and private sectors.

The manifestation of industrial strife, disputes come in

the form of strike lockout, layoff and retrenchment

To maintain good Industrial Relations we should know what are these weapons in the hands of
employers and workers and to diffuse it. Our law markers in India have enacted about these
manifestation of disputes

Strike: Section 2 (q)

Means a cessation of work by a body of persons employed in any industry acting in combination
or a concerted refusal or a refusal under a common understanding of any number of persons who
are or have been so employed to continue to work or to accept employment.

The ingredients can be summed up as:

1. A cessation of work
2. This abstinence of work must be by a body of persons employed in an industry
3. The strikers must have been acting in combination.
4. They must be persons working in an industry as per this 1.D Act 1947.
5. There must be concerted refusal or refusal in a common understanding; they must stop work
for some demands relating to this employment or its terms, or conditions of labour.

The strike may be manifested in different forums like, hunger, sit down solve down, pend own,
lighting etc.

Lock out : As per section 2 (1) of 1.D Act

It 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 person employed by him
There is temporary closing of employment. The elements of demand for which the industry is
locked out must be present. The intention to reopen or take the workers back if they accept the
demands, must exist lock out is not closure it is a tactics in bargaining it is intended for the
purpose of compelling the employee to accept any terms or conditions affecting employment. It
is a weapons in the hands of employers, A lock out declared in consequence of an illegal strike or
a strict declared in consequence of a illegal lock out shall not be deemed to be illegal.

Lay off : As per section 2 (kkk) of ID Act

Means, failure, refusal or inability of an employer on account of shortage of fuel power or raw
materials, or the accumulation of stock or the breakdown of machinery to give employment to a
workman whose name is on the master rells of his industrial establishment and who has not been
retrenched. It is a short term removal of workers. The essentials of a lay off are failure refusal in
ability of the employers to give work The employees must be permanent in nature at the time of
lay off .The failure to give work should be due to reason beyond his powers like

a) a major break down of machinery

b) Shortage of raw material, power, coal etc.
c) Marketing problem of stocks resulting in accumulation
d) Any other act of god beyond employer’s control.

The workman must not have been retrenched

Retrenchment section 2 (oo) of 1.D Act

Means termination of the services of a workman by employer for any reason whatsoever
otherwise them as a punishment inflicted by way of disciplinary action, but does not include,

a) Voluntary retirement of the workmen, or

b) Retirement of the workman or reaching the age of supermuation
c) 10 Termination (natural) at the end of a contract
d) Termination due to continuous ill health.
Essentials of retrenchment
1. Termination of services of a workman not amounting to dismissal
2. Termination on the ground of surplus labour or staff
3. Service terminated must be a continuous one perpetual in nature.
4. Termination not to victimize or due to unfair labour practice.
5. The above 4 weapons may create industrial relations strain, cause dispute etc.

Attempts by government to safeguard 1R

1. The strikes may be declared illegal if adequate notices are not given if given it
becomes legal and they may get compensation etc if any action is taken by
employer.
2. During lay of which is beyond the control of employers, workers should be
paid ½ the wages for sustenance at least up to 45 days.
3. Lockout can be as a consequence to illegal strike. If strike is withdrawn work
can resume, of course punitive action can be completed.
4. Retrenchment is an extreme action, but when industry comes back to normal
running, the retrenched workers can re establish their lien, and they will be
given preference for absorption.

Thus it can be seen every attempt is made by government and various acts to retain
relationship between worker and management which only can give industrial peace for
progress.

INDUSTRIAL DISPUTE’S SETTLEMENT MACHINERIES

 MEDIATION

Mediations is a process available to the parties involved in contract negotiations by which an

outside party is called in by union and management to help them reach a settlement. The
neutral mediator does not ultimately resolve the dispute, but instead tries to move the parties
towards agreement by maintaining communication and suggesting alternative solutions to
dead-locked issues. The mediator’s function is to provide a positive environment for dispute
resolution by drawing on extensive professional experience in the field of labour management
interaction. The mediator must be an effective communicator, know the importance of timing and
most of all, have the confidence and trust of the parties.

 CONCILIATION

Conciliation is a process by which representatives of workers and employers are brought

together before a third person or a group of persons with a view to persuade them to come to
a mutually satisfying agreement. The objective of this method is to settle disputes quickly and
prevent prolonged work stoppages if they have already occurred. The essential hallmarks of
this approach are:
1. The conciliator tries to bridge the gulf between the parties, if possible.
2. If he does not fully succeed, he tries to reduce the differences to the extent possible. He acts as
a conduit through which message are passed from one side to the other, coupled with his own
interpretations facilitating the understanding of disputing parties.
3. He persuades parties to take a fresh look at the whole issues, through a process of give and
take and explore the possibility of reaching a consensus.
4. He only advances possible lines of solutions for consideration by the disputants. He never tries
to force the parties to accept his viewpoint. He never offers judgment on the issues. If parties feel
that the suggestions offered by the conciliator are acceptable, they may
Strike a deal.
5. The conciliator need not follow the same path in each case. The process of conciliation,
therefore, has a certain amount of flexibility and informality built around it.

 GENERAL

1. Trade unions should be strengthened democratically so that they can understand and toe
With the main stream of the national industrial activities. They can drop the some how survive
attitude by promising impossible and consequent perpetual strain.
.
2. Employers should have more transparency in their dealings with workers to build
confidence and have progressive out look.

3. They should have open minded flexible collective Bargaining.

4. Workers should be allowed to participate in the management through forums, committees

and councils,

5. Sound labour policy, planning

6. Proper leadership and communication

7. Enforcement of discipline

8. Try to have union with in workers fold.

9. Equity in distribution of wealth by acknowledging workers as team members