Workshop on

"Talent and Human Resource Management

INDUSTRIAL RELATIONS
SCENARIO
IN INDIA

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 1

(Pravin Garkal) (Corporate Employee Relations)
 Industrial Relations

• Work relationship between the management and employees

• Includes processes through which these relationships are expressed

such as Collective Bargaining ,Grievance Handling , Wage Settlement

• Management of conflict between Employer , Employee , Trade Union

• Resolution of Conflicts keeping in mind the larger / long term interest of

the organization

• There are no define rules to maintain Cordial IR

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 2

(Pravin Garkal) (Corporate Employee Relations)
 Industrial Relations – Why / Who / How

WHY ?
• To carry out business / operations smoothly & effectively.
• Overall growth / prosperity of the organization. & employees.
• To Maintain Law & Order & in larger interest of Society.
• For improving image / goodwill of the Company.
• To Generate Employment Opportunities.

WHO ?
• Responsibility of Employer, Employee & Trade Union.
• Responsibility of Human Resource Function & Line Managers /
Supervisors.

HOW ? (Important Principles)

• Transparency / Trust & Respect / Fairness
• Involvement / Engagement
• Communication / Dialogue / Negotiation.
• Give Employees what they deserve & what Company can afford.
March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 3
(Pravin Garkal) (Corporate Employee Relations)
 Tripod for Cordial Industrial Relations

Employer

Employees / Association of
Workmen employees (Union)
/ Association of
employers

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 4

(Pravin Garkal) (Corporate Employee Relations)
 Role of Government in Industrial Relations

The tripod of Industrial Relations is dependent on fourth and most

important aspect i.e. the Government, for -

• Enactments / Amendments of various labour reforms

• Setting up grievance redressal mechanism (Conciliation)

• Setting up of Wage Boards and adjudication mechanism (Courts,/

Tribunals)

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 5

(Pravin Garkal) (Corporate Employee Relations)
 Laws governing Industrial Relations in India

Industrial Relations Industrial Safety & Health

1.The Industrial Disputes Act, 1947 1. The Factories Act, 1948
2.The Industrial Employment (Standing 2. The Building and Other
Orders) Act, 1946 Constructions Workers’ (Regulation of
3.The Trade Unions Act, 1926 Employment and Conditions of
Service) Act, 1996
Child Labour & Woman
1.The Child and Adolescent Labour (Prohibition Employment
& Regulation) Act, 1986 1. The Apprenticeship Act
2.Sexual Harassment of Women at Workplace. 2. The Contract Labour (Regulation
(Prevention, Prohibition and Redressal) Act, and Abolition) Act, 1970
2013

Social Security Wages

1. The Payment of Wages Act, 1936 1. The Payment of Wages Act, 1936
2. The Payment of Gratuity Act, 1972 2. The Minimum Wages Act, 1948
3.Employee Provident Funds and 3. The Equal Remuneration Act, 1976
Miscellaneous Provisions Act, 1952 4. The Payment of Bonus Act, 1965
4. Employees' State Insurance Act, 1948
5. The Maternity Benefit Act, 1961
March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 6
(Pravin Garkal) (Corporate Employee Relations)
 Industrial Disputes Act, 1947

• Objective : Provision for investigation and settlement of industrial

disputes and for certain other purposes.
• Industrial Dispute means any dispute or difference between employers
and employers, or between employers and workmen, or between
workmen and workmen, which is connected with the employment or
non – employment or the terms of employment or with the conditions of
labour, or any person.
• Workman does not include any person employed in a supervisory
capacity, draws wages exceeding Ten thousand rupees per mensem or
exercises, either by the nature of duties attached to the office or by
reason of the power vested in him, functions mainly of a managerial
nature.
• Works Committee- Joint committee with equal number of employer’s
and employees 'representatives for discussion of certain common
problems.

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 7

(Pravin Garkal) (Corporate Employee Relations)
 Industrial Employment
(Model / Certified Standing Order) Act, 1946
• Objective : To lay down with sufficient provisions, uniform conditions of
service in industrial establishments.
• Applicability : Applicable to every industrial establishment in which
1000 or more workmen are employed. In Maharashtra the Act applies to
every industrial establishment in which 50 or more workmen are
employed and also every establishment covered by the Bombay Shops
and Establishment Act, 1948.
• Misconduct : 26 different types of misconducts are listed in the said
act.
• Disciplinary Actions : elaborate process of taking disciplinary actions
is mentioned in said act.
• Principle of Natural Justice : Disciplinary actions taken are to be
based on principles of natural justice.
• Punishment : specific punishments are prescribed for the listed acts of
misconduct.

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 8

(Pravin Garkal) (Corporate Employee Relations)
 Trade Union Act, 1926

• “Trade Union” means any combination, whether temporary or permanent,

formed primarily for the purpose of regulating the relations between
workmen and employers or between workmen and workmen and or
between employers and employers, or for imposing restrictive conditions
on the conduct of any trade or business, and includes any federation of two
or more Trade Unions.

• Any seven or more members of a Trade Union may, by subscribing their

names to the rules of the Trade Union and by otherwise complying with the
provisions of this Act with respect to registration, apply for registration of
the Trade Union under this Act.
• In the state of Maharashtra recognition is granted to trade union as a sole
bargaining agent through statute.

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 9

(Pravin Garkal) (Corporate Employee Relations)
 Types of Trade Union

Internal Union:
Body/Association of employees / workers who are employed within
an establishment.

External Union :
Body /Association of people who are working (employees /
workers) within an establishment along with external representatives.

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 10

(Pravin Garkal) (Corporate Employee Relations)
 Role of Trade Union

• Collective bargaining is the process of negotiation between Union and

employers in respect of the terms and condition of Services.

• Charter of demands is a collection of demands put by the workmen

through their Union before the management for improvement in their
service condition and Wages.

• The employer could also put expectations in terms of production, quality,

discipline, etc. on the union.

• Both parties through collective bargaining could arrive at a Settlement

binding on both the parties, which is governed by the statute.

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 11

(Pravin Garkal) (Corporate Employee Relations)
 Recent Changes In Labour Laws
Sr. Laws Before Amendment After Amendment
No.

1 The Maternity Benefit 1.Maternity Benefit – 12 weeks 1. Maternity Benefit – 26 weeks

Act, 1961 2. No Provision for work from home 2. Provision for work from home for woman
employees after maternity benefit

2 The Factories Act, 1. Applicability for provisions of Factories Act to 1.Applicability for provisions of Factories Act to the
1948 the establishment was – ten or more workers. establishment is – twenty or more workers

2. Woman employees was not allowed to work 2. Woman employees is allowed to work between
between 7:00pm to 6:00am 7:00pm to 6:00am with conditions of adequate
safety and security measures

3 The Maharashtra The act was applicable to every establishment The act is applicable to every establishment and
Contract Labour and contractor employing 20 or more workmen contractor employing 50 or more workmen thereby
Rules, 1971 relaxing the provisions of act to small and medium
enterprises
4 The Maharashtra 1.It was applicable to all establishment 1. It is applicable to establishment employing ten or
Shops & irrespective of no. of employees more employees
Establishment 2. The shop or establishment was required to 2. The shop or establishment can be kept open for
keep close on holidays and permission was all 365 days provided one weekly off is given to all
required to be taken to keep open on holidays. employees.
3. Woman employee was not allowed to work in 3. Woman employee is allowed to work in night shift
night shift between 9:30 pm to 7:00am between 9:30 pm to 7:00am after obtaining her
consent and with safety and security measures.

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 12

(Pravin Garkal) (Corporate Employee Relations)
 Proposed Changes in Labour Laws

The Central Laws governing major labour issues are proposed to be

merged in one uniformed Industrial Code.

tLaws governing terms and conditions Laws governing Wages

of employment • Minimum Wages Act, 1948
• Industrial Disputes Act,1947 • Payment of Wages Act, 1936
• Industrial Employment [ Standing Orders] • Payment of Bonus Act, 1965
Act,1946
• Trade Unions Act,1926

Laws governing Welfare Laws governing Social Security

• Factories Act,1948
• The Shop and Establishment Act,1953
• The Maternity Benefit Act, 1961
• Employee's Compensation Act, 1952
• Contract Labour [ Regulation and Abolition]
Act,1970
• Employees Provident Fund and
Misc. Provision Act, 1952
• Employees State Insurance Act,
1948
• Payment of Gratuity Act, 1972

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 13

(Pravin Garkal) (Corporate Employee Relations)
 Changing Dimensions
from Industrial Relations to Employee Relations

• Globalisation and Liberalisation has widened the scope of managing

relations with employees across all levels.

• Changing pattern of compensation management, short / fixed term

employment contracts, lifestyle changes, 24*7 working pattern are the
key elements to manage employee relations in current scenario.

• Industry practices such as kaizen / 5’S’ / TPM / JIT / ISO / OHS are
having significant importance for Industrial growth and healthy
employee relations.

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 14

(Pravin Garkal) (Corporate Employee Relations)
 Make In India

• Prime Minister Mr. Narendra Modi Launched this initiative in

2014.
• The major goal is to make India a global manufacturing hub for
domestic as well as multinational companies to manufacture their
products.
• FDI is permitted in 25 different sectors.
• Tax reforms have been introduced through implementation of
GST in 2017.
• Industrial corridors are set up to encourage investment.
• Emphasis is given to develop infrastructure [(Smart Cities /
Industrial Corridors, Transport (Road, Water, Air)]
• Changes introduced in labour laws to have flexibility in workforce
as per business requirement.

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 15

(Pravin Garkal) (Corporate Employee Relations)
 Case Study I (Disciplinary Action)

• Incidence of misconduct

• Complaint / reporting of misconduct

• Preliminary Investigation

• Show cause Notice / Charge sheet

• Domestic Inquiry

• Punishment

March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 16

(Pravin Garkal) (Corporate Employee Relations)
 Case Study II (Wage Settlement)

1. Collective Bargaining

2. Charter of Demands
Demands from Union Demands from Management
• Service Conditions • Improvement in output /
• Benefits / Facilities Production / Quality /Productivity
• Welfare Measures • Participation in initiatives related
• Increased Wages to cost reduction / improvements
• Discipline and Good Conduct
• Attendance
• Industrial peace and harmony
• Fixed and variable pay /
incentives
March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 17
(Pravin Garkal) (Corporate Employee Relations)
March 3, 2018 Godrej & Boyce Mfg. Co. Ltd. 18
(Pravin Garkal) (Corporate Employee Relations)