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2. DEFINING IRIndustrial relations encompasses a set of phenomena, both inside and outside the
workplace, concerned with determining and regulating employment relationshipRelationship between
management and employees or among employees and their organization that characterize and grow
out of employment.
4. Approaches Used to Define Industrial Relations (2) Ddefinitions that seek to include all matters
contained in the first three definitions within other terms:(4) Human Resource Management: contracts
of employment (involving trade unions, worker collectives, labour courts and government agencies),
as well as management of conflict arising out of the personal interactions of individuals in the
workplace, are part of labour management functions ( i.e. recruitment, selection, training,
development, performance management, and so on)(5) Employment Relations (or Employee
Relations): contracts of employment (involving trade unions, worker collectives, labour courts and
government agencies), as well as the management of conflict arising out of the personal interactions
of individuals in the workplace, are part of workplace relations, together with the normal functions of
Human Resource Management.
5. OBJECTIVES OF IRTo enhance economic status of workerTo avoid industrial conflicts and their
consequencesTo extend and maintain industrial democracyTo provide an opportunity to the worker to
have a say in the management decision makingTo regulate production by minimizing conflictsTo
provide forum to the workers to solve their problems through mutual negotiations and consultations
with managementTo encourage and develop trade union in order to develop workers collective
strength
6. NATURE OF IRIR arise out of employer employee relationsIR is a web of rules: formed by the
interaction of Govt, industry & laborIR is multi dimensional: influenced by complex set of institutional.
economic & technological factorsIR is dynamic and changing: keep pace with employee
expectations, trade unions, employer associations and other economic and social institutions of
societyIR is characterized by forces of conflict and compromise. Individual differences and
disagreements resolved through constructive means.Govt influences and shapes IR: with its laws,
rules, agreements through executive and judicial machineryScope of IR is very wide as it covers
grievances, disciplinary measures ethics, standing orders, collective bargaining, participatory
schemes and dispute settlement mechanism etcInteractive and consultative in nature: in resolving
conflict,controversies and disputes between labor and management.
9. UNITARY APPROACHIR is grounded in mutual cooperation, individual treatment, team work and
shared goals.Work place conflict is seen as temporary aberration, resulting from poor
managementEmployees who do not mix well with organization cultureUnions cooperate with the
managementManagements right to manage is accepted because there is no we they
feelingUnderlying assumption is that everyone benefits when the focus is on common interest and
promotion of harmonyBased on reactive strategy. Direct negotiation with employeesParticipation of
Govt, tribunals and unions are not sought or are seen as being necessary for achieving harmonious
employee relation
10. PLURALISM(CONFLICT APPROACH )Pluralism is belief in the existence of more than one ruling
principle, giving rise to a conflict of interests.The pluralist approach to IR accepts conflict between
management and workers as inevitable but containable through various institutional arrangements (
like collective bargaining, conciliation and arbitration etc) and is in fact considered essential for
innovation and growth.It perceives organizations as coalitions of competing interests , where the
managements role is to mediate among the different interest groups.It perceives trade unions as
legitimate representative of employee interestsIt also perceives stability in IR as the product of
concessions and compromises between management and unions.Employees join unions to protect
their interests and influence decision making by the management. Unions thus balance the power
between management and employees. In pluralistic approach a strong unions is not only desirable
but necessary
11. MARXIST APPROACHMarxists like pluralists also regard conflict as inevitable but see it as a
product of capitalistic society where as pluralist believe that the conflict is inevitable in all
organizationsFor Marxists IR has wider meaning. For them conflict arises not because of rift between
management and workers but because of the division in the society between those who own
resources and those who have only labor to offer.Marxist approach thus focuses on the type of
society in which an organization functions.Industrial conflict is thus equated with political and social
unrestTrade Unions are seen both as labor reaction to exploitation by capitalists, as- well-as a
weapon to bring about a revolutionary social change. Wage related disputes as secondaryFor them
all strikes are political and they regard state intervention ( via legislations and creation of Industrial
Tribunals ) as supporting managements interests, rather than ensuring a balance between the
competing groups.
12. SYSTEMS APPROACHIR - a social sub-system within the econ. & political systemsComp
contexts (influences actorsonents & constraints on decisions & rules - regulatory elements i.e. the
terms ideology - beliefs affecting actor views - shared or in conflictaction e.g. market, technology,
demography, industrial structure) & nature of the employment relationship developed by IR
processes
18. ROLE OF GOVERNMENTGovt or state machinery regulates the relationship between workers
organizations and employers organizations.It does it through : - Statutes and legislations, - The
judiciary- labor courts industrial tribunals - An executive machinery- that lays down rules, procedures
and gives awards and monitors them
21. FACTORS AFFECTING EMPLOYEE RELATIONSEXTERNAL FACTORS:Militancy of unionsnationally or locallyAuthority and effectiveness of the employers familyThe extend to which
bargaining is carried out at national, local or plant levelThe effectiveness of any national or local
procedure agreements that may existEmployment situation nationally or locallyLegal framework
within which IR exists
22. SOCIAL SECURITY( IMPACT ON EMPLOYEE RELATIONS )Social security is one of the key
components of labor welfareLabor welfare refers to all such services, amenities and facilities to the
employees that improve their working conditions as-well-as their standard of livingSocial security
benefits provided by an organizations should protect not only their employees but also their family
members including financial security and health care etcSocial security envisages that the employee
shall be protected against all types of social risks that may cause undue hardship to them in fulfilling
their basic needs.Accidents, job losses, retirement, sickness, death while on duty- these are realities
of working life and leave a person and his dependents vulnerableSocial security is an attempt by the
employer and the state io institute measures that mitigate such social risks
23. MAJOR LEGISLATIONSIndia being a welfare state has taken up itself the responsibility of
extending various benefits of social security and social assistance to its citizens.Although the
constitution of india is yet to recognize social security as a fundamental right, it does require state to
promote the welfare of the people by providing social, economic and political justiceConstitution
requires companies to make effective provisions for making effective provisions for securing right to
work, to educate and public assistance in case of unemployment, old age, sickness and disablement.
Securing just and humane conditions of work. Raise level of nutrition and standard of living,
improvement of public health etcA social security division has been set up under the ministrybof labor
and employment.In the context of labor , social security aims at reducing risks against loss of
earnings or earning capacity due to old age,illness or work- related injuries.
24. Social security to the workers is provided through 5 major Acts:1. The Employees State
Insurance act, 19482. Employees provident Fund and Miscellaneous provisions Act3. The Workers
Compensation Act4. The Maternity Benefit Act5. The payment of Gratuity ActIn addition there are
large number of welfare funds also for some specific segmentsMajor thrust of social security relating
to labor is on: a) Provisions relating to medical facilities, compensation benefits and insurance
coverage incase if accidents, incapacity, illness etc.. b) Provisions relating to provident fund and
gratuity
Enhance their status in societyIn most countries, there are laws governing the formation,
membership and administration of trade unions. Improve the terms and conditions at their
workplace26. WHAT IS A TRADE UNION?Definition: An organization of workers or employees
formed mainly to _ Negotiate with the employers on various employment related issues
28. PRINCIPLE OF TRADE UNION1. UNITY: Unity is strength2. Workers must not be discriminated
wrt EQUALITY: caste, creed, sex etc. Each worker should get equal pay for equal work3. Security of
their employment and their SECURITY: families must be safeguarded
For the benefits of members, resolve disputes in a mutually acceptable manner Protect jobs of
members1. Cooperate with employers TRADE UNION Collective bargaining Represent members
to negotiate with employers, for better wages and conditions of employment1. Safeguard jobs 29.
OBJECTIVES OF A1.
30. OBJECTIVES OF A TRADE UNION activities4. Political - Support pro-union political parties5.
Social activities - Support members with recreation facilities and benefits for unemployment, illness,
retirement, death
Non-manual workers For unskilled workers1. Staff union Same craft or occupation1. General
union 31. TYPES OF UNIONS1. Craft union
All members are from the same company regardless of occupation or job Same industry,
regardless of skills, occupation or job4. House union (company or enterprise union) 32. TYPES OF
UNIONS4. Industry union
Meet co-workers from other departments or companies More secured with collective agreement3.
Social need Collective bargaining with employer2. Job security 33. WHY WORKERS JOIN
UNIONS1. Higher wages and better working conditions
36. Negotiating machinery Based on give and take principle, negotiations continue till parties reach
an agreement. Protect interests of workers through collective bargaining.Safeguarding organizational
health Methods evolved for grievance redressal, techniques adopted to reduce absenteeism and
labor turnover. upgrading skills- attend training courses organized by unions
37. ACTIVITIES OF TRADE UNIONECONOMIC: Improved economic status, shorter working day,
improvement in living and working conditions, better health & safety standards, upgrading welfare
facilities, reducing inequalities- both internally & externallyPOLITICAL: Seeking / obtaining political
power through political affiliations, lobbying activities to influence the cause of labor and legislations,
participating & representing workers on bipartite forums, developing revolutionary ideologies among
workers, protesting against Govt. decisionsSOCIAL: Initiating & developing workers education
system, organizing welfare & recreational facilities, providing monitory and other help during period of
strike and economic distress, running cooperative welfare schemes and societies, hosing needs/
community development, organizing cultural functions & social welfare programmesNATIONAL /
INTERNATIONAL LEVEL: Representing workers at the national level on advisory committees,
associating with national federations for unity & solidarity, Raising funds in case of national /
International calamities or tragedies
40. INDIVIDUAL DISPUTE DEEMED AS INDUSTRIALDISPUTE 1965 amendment to I.D ACT and
insertion of 2A. Where any employer discharges, dismisses, retrenches or otherwise terminates the
services of an individual workman, any dispute or difference between that workman and his
employer.shall be deemed to be an industrial dispute notwithstanding that no other workman nor
any union of workmen is a party to the dispute. This definition is not applicable to disputes short of
termination
45. Workers association in our country is highly fragmented and the consequence is multiplicity of
unions, which weakens the bargaining strength of employees.One of the defects of trade union
movement in India has been the phenomenon of outside leadership. The fault of outside leadership
lies with trade Union Act, 1926 itself. The act permitted outside participation to the extent of 50% of
the strength of office bearers in a union.Trade Unions are at cross roads. Their membership is
declining, Their political support is waning, public sympathy is receding, their relevance itself is at
stakeManagements on the other hand are on the offensive. They are able to force unions to accept
terms and conditions. Workers,officers and managers are mercilessly terminated in the name of
restructuring, downsizing etcProfessionalisation of trade unions movement is another trend
witnessed, they are trying to upgrade their leadership quality. Topics lie IT, strategic planning,
diversity, networking and productivity etc now form inputs in training programmes organized for union
leaders
48. TRADE UNION ACT (1926)It legalizes the formation of trade unions by allowing employees the
right to form and organize unions and also strengthen bargaining power of workersAct aims to
provide law for the registration of trade unions and get it registered under the actPermits any seven
persons to form a unionOBJECTIVESLay down conditions governing the registration of trade
unionsDefines obligations of trade unionsPrescribe rights and liabilities of a registered trade
unionSTATUS OF A REGISTERED UNIONIt becomes a body corporateIt gets a common sealIt can
buy and hold movable and immovable propertyIt can enter into contracts with othersIt can sue and be
sued in its name
49. TRADE UNION ACT (1926)REGISTRATION:A trade union formed with at least 7 members may
apply for registration with following documentsA copy of the rules of trade unionName, occupation
and addresses of membersName of trade union and address of its office Office Bearers of the trade
unionsIn case already in operation- submit statement of accounts/assets and liability
statementOBLIGATIONS: It should have a name, clearly laid down objective, membership list readily
available, purpose for which funds shall be utilized, members to be the actually working persons ,
Honorary/temporary office bearers, conditions for benefits/fines, conditions under which rules shall be
amended, manner in which office bearers shall be appointed, safe custody of funds and manner in
which trade union shall be dissolvedRIGHTS AND LIABILITIES Section 15 of the Act provides for
certain obligations and liabilities of registered unionsIt also stipulates the purpose for which funds can
be utilizedTHE AMALGAMATION OF TRADE UNIONS:Any two or more registered unions may get
amalgamated together as one trade union
50. INDUSTRIAL DISPUTE ACT (1947)Ever expanding complex multi product/project companies
with diverse and conflicting interests of workmen and employers, growing labor consciousness,
resulting in strikes and lockouts, lead to the outcome of Industrial dispute Act, 1947Main provisions of
the Act are:Settlement machinery -Provides suitable machinery for investigation, just, equitable and
peaceful settlement of industrial disputes and aims to provide justice both to employers and workmen
- Collective bargaining, NegotiationAims at promoting security, amity and good relations between
employer and employee or between employers and workmen or among workmenPrevent illegal
strikes and lockouts and explains the contingencies when these can be lawfully resorted to or when
these can be declared illegal or unlawful.Provide conditions and relief to workmen in the matters of
lay-offs, retrenchment, dismissals and victimization Last in first out in a retrenchment case or specific
reasons in case of othersProvides conditions under which an industrial unit can be closed down 60
days notice to be given of intention to close down any undertaking Compensation to workmen in case
of closing downGet the workmen the right of collective bargaining and promote conciliationLists down
unfair labor practices on the part of both parties introduced in 1984
52. Compulsory Adjudication LC, IT, NT Reference by the Appropriate Government Sec. 10(1) Award
Sec. 18(3) of ID Act S. 2-A, 33-A Publication of awardConciliation (if successful Judicial review - Art.
226 or Settlement) Art. 136 Sec. 18(3) of INDUSTRIAL The I D act DISPUTES Voluntary Arbitration
10-A Award 18(2) & 18(3) Judicial review - Art. 226 or Art. 136 Collective Bargaining If successful
settlement Sec. 18(1) of ID Act
Collective bargaining begins after employer recognizes the union that claims to represent the
specific group of workers. union is able to honor the agreement.1. Recognition of union by
employer Unions have to be stable for collective bargaining to be effective Workers and
employers are free to form their own associations to represent their interests.1. Stability of union 54.
CONDITIONS FOR SUCCESSFUL BARGAINING1. Freedom of association
Employment laws to ensure process takes place in an orderly manner. Relationship affected and
process becomes tense and difficult if any party used unfair practices such as victimization.6.
Supportive legal system Both parties must be willing to resolve differences to reach an
agreement.5. Mutual respect 55. CONDITIONS FORSUCCESSFUL BARGAINING4. Good faith
Parties sign a written statement on what have been agreed. Parties look for possible adjustment or
compromise.1. Reaching an agreement Each party presents its case.1. Exchange and compromise
Each party must know what it wants.1. Presentation 57. STEPS IN NEGOTIATION1. Preparation
Conciliator does not impose a solution but works with the parties to enable them to come to an
agreement. Conciliator meets parties separately or together to exchange information, clarify issues
and settle misunderstanding. Impartial third party helps the two parties to reach a mutually
acceptable settlement. 59. WAYS TO SETTLE DISPUTESConciliation
Arbitration gives some people the impression that they did not give in to the other party but fought
all the way to the Arbitration Court. Some prefer arbitration as the responsibility for reaching
agreement is made by a neutral party (quite often, appointed by the government e.g. Arbitration
Court). Third party settles the dispute by making an independent decision for the two parties. 60.
WAYS TO SETTLE DISPUTESArbitration
Final agreement is made by the two parties themselves. Mediator makes recommendations for the
two parties to consider. Impartial third party helps to reach a mutually acceptable agreement. 61.
WAYS TO SETTLE DISPUTESMediation