UNIT I INDUSTRIAL RELATIONS

- Concepts Importance
Industrial Relations problems in the Public
Sector
Growth of Trade Unions Codes of conduct.

TEXT BOOKS
1. Mamoria C.B. and Sathish Mamoria, Dynamics
of Industrial Relations, Himalaya Publishing
House, New Delhi, 2007.
2. Arun Monappa, Ranjeet Nambudiri, Patturaja
Selvaraj. Industrial relations & Labour Laws.
Tata McGraw Hill. 2012
3. Ratna Sen, Industrial Relations in India,
Shifting Paradigms, Macmillan India Ltd., New
Delhi, 2007.

Definition Of Industrial Relations

Industrial relations are a relationship between
management
employees

and
and

employees
their

or

among

organisations

characteristic and grow out of employment

that

SCOPE OF INDUSTRIAL RELATIONS

Participative management: Participation in
decision making
Dispute settlement: Industrial disputes can be
settled only with good industrial relationa
Trade Unions: Association of employees formed on
a continuous basis for the purpose of securing
diverse range of benefits.
Employers organisations: Employers
Organisations, comprising business enterprisesAIOE [All India Organisation of Indian Employers],

 Collective bargaining: Formal process that

involves negotiation, consultation and
exchange of proper understanding, cooperation
between employers and workers.
Labour legislation: Cover all the laws
Grievance redressal: The grievance related to
the contract, work rule, health and safety
regulation.

OBJECTIVES OF INDUSTRIAL RELATIONS

1. Safeguard the interest of labour and management:
Highest level of mutual understanding
2. Enhance economic status of workers: Improving
their wages , benefits etc
3. Regulate government control: To regulate
government control of such plants that are
running in loss
4. Provide workers participation:
5. Encourage and develop trade unions: To Improve
workers strength.

OBJECTIVES OF INDUSTRIAL RELATIONS

5. Avoid industrial conflicts:
6. Eliminate strikes and lock-outs:
7. Maintain industrial democracy:
8. Raise productivity:
9. Vesting of a proprietary interest:

ACTORS/ELEMENTS IN INDUSTRIAL
RELATIONS
TRADE UNIONS

WORKERS

EMPLOYERS
H

G
GOVERNMENT
/STATE

ACTORS IN
EMPLOYEE
aaCA
RELATIONS

EMPLOYERS
LOYEEE
ASSOCIATIONS

COURTS AND
cCCC
TRIBUNALS

FACTORS INFLUENCING INDUSTRIAL

RELATIONS
Economic factors: Structure of the economy
Institutional factors: Govt. policy, labour
legislation,etc
Technological factors: Production, automation etc
Political factors: Political system of the country
Social and Cultural factors: Social norms, values
Organisational factors: philosophy
Global factors: international relations, global
conflicts

IMPORTANCE OF INDUSTRIAL RELATIONS

1.
2.
3.
4.
5.
6.
7.
8.
9.

Reduces industrial disputes:

High morale:
Collective bargaining:
Fair benefits to workers:
Facilitation of change:
Mental revolution:
Workers development:
Reduced wastage:
Uninterrupted production:

INDUSTRIAL RELATIONS PROBLEMS IN

PUBLIC SECTOR

Poor wages and working conditions:

Nature of work:
Defective trade union system:
Occupational instability:
Poor behavioural climate:
Increase in personnel cost:
Declining
paternalism
and
professionalism:

rising

TRADE UNIONS
A trade union is an association of employees
designed, primarily to maintain or improve the
condition of employment of its members.

FEATURES OF TRADE UNIONS

Voluntary association:
Community of interests:
Having authority flow from the members:
Dealing with collective action:
Acting as an intermediary:
Sub-system:

REASONS FOR JOINING TRADE UNIONS

1. Greater bargaining power:
2. Minimize discrimination:
3. Sense of security:
4. Sense of participation:
5. Sense of belongingness:
6. Platform for self-expression:
7. Betterment of relationships:

GROWTH OF TRADE UNIONS IN INDIA

1. Period between 1890 and 1918:
- Ist trade unionMr. N.K. Lokhande1890
- Bombay Mills Hand Association
- Welfare associations
- No class consciousness among workers
- Lacked definite aimno striking power
- Largely sectarian in character.

2. Period between 1919 and 1923:

- Real beginning of labour union movement in India

- Many adhoc unions disappeared and several strong

and large sized unions came
Madras Labour Union [found by B.P. Wadia]--1919
Factors:
- Economic conditions:
- Political conditions:
- The ILO AITUC ---1920

3. Period between 1924 and 1935:

- The year 1921: emergence of communists
- AITUC captured by communists
- Moderates formed All India Trade Union
Federation
- Mines Act [1923]
- Workmens Compensation Act [1923]
- The Trade Union Act [1926]
- The Trade Disputes Act [1929]
Trade Union Act ---passed in 1926 gave formal
recognition to the workers right

4. Period Between 1936 and 1939:

- Increase in number of registered trade unions
- NTUF[ National trade Union Federation] and
AITUC merged.
- No Political decision should be taken unless it
commands a two-thirds majority unity --1940

5. Period between 1940 and 1946:

- The unity was shattered during second world war
ideological differences and mounting cost of living
- Increased industrial unrest
- Government banned strikes and lock-outs
- Need for an organised movement to secure relief
realised
-Increase in number of unions in 1947
- INTUC [Indian National Trade Union Congress]
was born

6. Post-War Independence
Period

- INTUC recognized most representative

body of the working class in India 1948
- In 1955 -- Bharatiya Jan Sangh [BMS]
- Indian National Congress split --Ruling
congress and Organisation Congress
- Ruling congress INTUC
- Organisation Congress NLO [National
Labour Organisation]
- Communists split CPI [ AITUC]
-- CPM [CITU] Centre for Trade Unions.

CURRENT STATUS
More competition technological changes
No unionisation in the medium or small scale
sector
If present at all, they small, divided and weak
unable to stand up to management.
Inspite, trade unions occupy a significant
position in India.

OBJECTIVES OF TRADE UNIONS

1. Providing income security:
2. Maintaining job security:
3. Preserving physical security:
4. Providing social security:
5. Providing emotional security:
6. Procuring political prowess:
7. Fostering industrial democracy and equity:

TYPES OF TRADE UNIONS

TYPES OF TRADE
UNIONS
HJJJJ

UNION
CLASSIFIED
ACCORDING
TO
NN
PURPOSE

UNION CLASSIFIED ON
THE
BASIS
OF
DDDLL
MEMBERSHIP
STRUCTURE
Craft Unions

Reformist Unions
Revolutionary unions

General Unions
Industrial Unions
Staff Unions

Unions According To Purpose

1. Reformist unions:
- Preservation of the capitalist economy
a. Business unions: Built around congenial employeeemployer cooperation
b. Friendly or uplift unions: Elevate moral,
intellectual and social life of workers
2. Revolutionary Unions:
a. Political unions: Unions gain through political
action
b. Anarchist Unions: Unions try to destroy the
existing economic system by revolutionary means

c. Predatory Unions: Does not have any

idealogy.
Hold up union:
- Claims to respect the force of contract
- Operates through collective bargaining
Guerrilla union:
- Does not believe in cooperation with
employers.
- Creates terrorism to enforce it demands.

d. Dependent Unions:
- It is dependent wholly or partly on
other types of unions or employees.
2. Union classified on the basis of
Membership Structure:
i. Craft Union:
- Simplest form Horizontal unions
- Formed by workers belonging to
the same craft, occupation.

ii. General Unions:

- It represents the workers of any industry, any
region and of any job or occupation
iii. Industrial Unions:
- Vertical unions
- Workers in the same industry have the same
problems
- Are governed by the same rules and
regulations.
- administered by same management.

iv. Staff Unions:

- Consist of both craft and industrial unions
- Seek to recruit members like clerks,
supervisors draughtsman etc.

FUNCTIONS OF TRADE UNIONS

1. Militant Functions: Leads to betterment of

the position of their members.
- Achieve higher wages and better working
conditions
- Raise the status of workers as part of industry.
- Protect labours against victimisation and
injustice.

2. Fraternal functions: aims help members

in times of needimprove efficiency
- Take up welfare measures for improving the
morale of workers
- Generate self-confidence among workers
- Encourage sincerity and discipline among
workers
- Provide opportunities for promotion and
growth
Protect
women
workers
against
discrimination.

3. Political functions:
- Affiliating the union with a political party
-Helping the political party in enrolling
members, collecting donations
-Seeking the help of political parties during
the period of strikes and lock-outs.
- Unions have to influence government policy
decisions in the interest of workers
- Unions contribute to the implementation of
policies.

4. SOCIAL FUNCTIONS
1. Welfare activities: Improve quality of work
life
2. Education: Workers education scheme
3. Publication of periodicals, news letters or
magazines: For establishing communication
with members.
4. Research: Provide updated information to
union negotiators at the bargaining table.

IMPORTANCE OF TRADE UNIONS

1. Protects workers:
2. Creates spirit of self-reliance and self-respect
among workers:
3. Facilitates negotiation between worker and
employer:
4. Maintenance of wages at a uniform level:
5. Helps to negotiate productivity deals:
6. Helpf to accelerated economic development:

PROBLEMS OF TRADE UNIONS

Outside political leadership:
Multiple unions:
Union rivalry:
- Inter union rivalry:
- Intra union rivalry:
Small size of union membership:
Poor financial position:
Inactive functioning:
Victimisation:

MEASURES TO STRENGTHEN TRADE

UNION MOVEMENT IN INDIA

1. Micro to macro focus: Widen their role

mere wage--- company related information
2. Bargaining to sharing: share responsibilities,
risks
3. Grooming trade union leadership: Impart
latest knowledge and skills
4. Conflict to collaboration: Perceive
relationship from conflictive to collaboration
5. Developmental role: employees skill
upgradation
6. Enhancing union influence:

MEASURES TO STRENGTHEN TRADE

UNION MOVEMENT IN INDIA
7. Protective regulation to self-sustenance:
8. Openness and transparency:
9. Effective utilisation of alternative forums
10. Accept, share and grow:
- Accept flexible work practices:
-Share responsibility:
- Grow as a partner

TRADE UNIONS IN INDIA

1. AICCTU [All India Central Council of
Trade Unions ]
Founded in Chennai1989
Motto: Organising the unorganised and
unionising the un-unioniesed has established
Trusted trade union centre among --- most
exploited and oppressed workers in India
Fights all fundamentalist-obscurantist ideas
Strives to develop a scientific outlook and
modern cultural values among working class

2. All India Trade Union Congress [AITUC]:

Was established in 1921
Linked with the communist philosophy
radical approach
To establish a socialist state in India
Nationalisation for the means of production,
distribution and exchange.

3. All India United Trade

Union Centre[AIUTUC]
Founded in Kolkata.
It is a Central Trade Union organisation in
India and the labour wing of the Socialist
Unity Centre of India [Communist]
It has representations in apex level tripartite
committees, International Labour Conferences
[ILO]
6th largest trade union in India
It is functioning in both formal and informal
sectors

4. Bharatiya Mazdoor Sangh

[BMS]

Largest central trade union organisation in India

Founded by Dattopantji Thengdi, 1955.
Complete utilisation of manpower and resources
Replacement of profit motive by service motive
Establishment of economic democracy
Development
of
autonomous
industrial
communities.

5. Indian National Trade Union Congress [INTUC]

Organised in 1947 with active involvement

and encouragement from Congress leaders
Bring about a peaceful and non-violent
solution to industrial disputes
It is the largest national federation
Ensure full employment,
Secure greater participation of workers in the
management of enterprises
Secure complete organisation of all categories
of workers including agriculture

6. Indian National Trinamool

Trade Union Congress
[INTTUC]
Trade union organisation politically associated
with All India Trinamool Congress
7. Centre of Indian Trade Unions [CITU]:
Established in 1971 split in AITUC
Merged with CPI [M]
Organising workers to further their interests in
economic, social and political matters.

8. Hind Mazdoor Sabha:

Espouses socialist philosophy

Linkages with socialist parties
Promote the economic, political and social
interests of the workers
Improve the terms and conditions of
employment
Form a federation of unions from the same
industry
Promote the formation of cooperative societies
Foster workers education

9. Labour Progressive Federation: [LPF]

Trade union federation in South Indian State of
Tamil Nadu
Politically attached to Dravida Munnetra
Kazhagam.
Shortly called TEPU represents BSNL
workers of India.

10. Self-Employed Womens Association of India

[SEWA]
Trade union for the poor, self-employed women

workers
Founded in 1972 by noted Gandian and civil rights
leader Dr. Ela Bhatt
SEWA memberswomen who earn a living through
their own labour or small business.
Do not obtain regular salaried employment with
welfare benefits like workers in the organised sector
Organise women workers for full employment and
self-reliance
Mainstream marginalised, poor women in the informal
sectorlift them out of their poverty

11. Trade Union Coordination

Committee [TUCC]
Politically attached to All India Forward Bloc
Krishi Shramik Union is affliated to TUCC
Ammunition
Factory
Khadki
[AFK]
Employees union and Dehu Road Ordnance
Factory Employees Union are affiliated to
TUCC.

12. United Trade Union Congress

[UTUC]:
Marxist groups from West Bengal under the
leadership of Mrinal Kanti Bose
Pursuit of a classless society and non-political
unionism
Many of its members are supporters of the
Revolutionary Socialist Party
Establish a socialist society in India
Safeguard and promote the interests, rights, and
privileges to the workers in all matters.

CODES OF CONDUCT
It is set of rules put in place by organisations
to establish exactly what is and is not
acceptable by their employees.
It is worked out with the active involvement of
top management
Reflect the managements desire to incorporate
the values, rules and policies of the firm.
Compliance
will
ensure
an
ethical
environment in the organisatiion

OBJECTIVES OF CODES OF CONDUCT

Ensure that employers and employees recognise
each others rights and obligations
Promote constructive co-operation between the
parties
Secure settlement of disputes and grievances by
negotiation, conciliation etc.
Eliminate all forms of coercion, intimidation.
Avoid work stoppages
Facilitate free growth of trade unions
Maintain discipline in industry.

PRINCIPLES OF CODES OF
CONDUCT
No strike or lock-out without prior notice
No unilateral action should be taken in
connection with any industrial matter
Employees should follow go slow tactics
No deliberate damage caused to a plant or
property

PRINCIPLES OF CODES OF
CONDUCT
Acts of violations, intimidation, and coercion
should not be resorted
Existing machinery for the settlement of
disputes should be utilised
Actions that disturb cordial relationships
should be avoided
Better discipline in industry, management and
unions

CONTENTS OF CODES OF CONDUCT

1. Management and Unions agrees:
- No unilateral action should be taken
- Existing machinery for settlement of
disputes should be utilised
- No srike or lock-out without prior notice
- Neither party will have recourse to coercion,
intimidation
- Avoid litigation, sit-down and stay-instrikes
-

- Promote constructive cooperation between

their representatives
- Will establsih upon a mutually agreed
grievance procedure
- Abide by various stages in the grievance
procedureno arbitrary action to by-pass

2. Management Agrees:
- Not to increase work loads unless agreed
upon or settled otherwise
- Not to support any unfair labour practice
- Take prompt action for settlement of
grievances and implementation of settlements
- Take appropriate disciplinary action against
its officers.

3. Union Agrees
Not to engage in any form of physical distress
Not to permit demonstrations which are not
peaceful
Will not engage or cause other employees to
engage in any union activity during working
hours
Discourage unfair labour practices
Take prompt action to implement awards,
agreements, settlements and decisions

Factors Guiding Codes of Conduct

1. Honesty and integrity:
2. Disclosure of information:
3. Harassment:
4. Outside Employment:
5. Conflict of interest:
6. Confidentiality:
7. Equal Opportunity employer:
8. Misusing company resources:
9. Health and safety:
10.Payment and gifts:

LIMITATIONS OF CODES OF
CONDUCT

Enforceability:
Vagueness:
Inequality:
Unethical corporate behaviour:
Lack of stability:

GUIDELINES FOR
DEVELOPING CODES OF
CONDUCT

Composing codes of ethics:

Key behaviour identification:
Proper framing:
Collecting reviews:
Proper implementation:
Updating the codes: