Industrial Relations

INDUSTRIAL DISPUTES ACT, 1947

Objects of The Act: To ensure fair terms to the workmen To prevent disputes between employers & employees To investigate & settle industrial disputes

Industrial Relations
IR has been defined by Dale Yoder as a relationship between management and employees or among employees and their organizations, that characterize and grow out of employment.

Industrial Disputes
As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen and which is connected with the employment or non-employment or the terms of employment or with the conditions of labor, of any person.

Significance of Industrial Disputes

Industrial peace Industrial democracy Improved productivity Benefits to workers

Forms of Industrial Disputes

Strikes: It is a spontaneous and concerted withdrawal of labor from production temporarily. It is a collective stoppage of work by a group of workers for pressuring their employers to accept certain demands.

Forms of Industrial Disputes

Types of Strikes Sympathetic General Unofficial Sectional Bumper Sit down (stay-in, tool down, pen down strike) Slow-down strike Lightening strike Hunger strike.

Forms of Industrial Disputes

Lock-outs Gherao Picketing and Boycott

Causes of Industrial Disputes

Employment Nationalization Administration related causes Recognition Sympathetic strikes Psychological/social causes Political causes.

Industrial Disputes: Preventive Machinery

Trade Unions Joint Consultations
Works committees Joint management councils Standing orders Grievance procedure Code of discipline

Works Committees
As per the provisions of Industrial Disputes Act, 1947 works committees have to be set up in all those industrial units which employ 100 or more persons and are composed of an equal number of employers and employees representatives. The committees are given responsibility of removing the causes of friction between labor and management in day-to-day functioning of a unit. It is a consultative body.

Cont..
It offers greater participation to worker in day-today affairs Ensures close mutual interaction between labor and management Generates a co-operative atmosphere for negotiations between the two parties Opens the door for unions to have a clear view of what is going on within the unit Strengthens the spirit of voluntary settlement of disputes.

JMCs
In the Industrial Policy Resolution 1956, the need for joint management councils consisting of representatives of management, technicians and workers was emphasized. Management must supply facts regarding the working of a unit and the council discusses various matters across the table and recommends steps for improving efficiency.

Cont..
The scheme is voluntary, not obligatory It should consist of equal number of representatives of workers and employers (min 6 max 12) It should look after three areas
Information sharing Consultative administrative

Cont..
The decision of JMCs should be unanimous and should be implemented without delay It should not encroach on the jurisdiction of works committees Its members should be given proper training Initially JMCs should be constituted in a large number of public and private sector units being over 500 or more workers where there is a strong trade union and where the labormanagement relations are sound.

Standing Orders
Refers to rules and regulations which govern the conditions of employment of workers. Specify duties and responsibilities of both employers and employees. Provides for the framing of standing orders in all industrial undertakings employing 100 or more workers. As per provisions of Standing Orders Act1946 employers have to frame standing orders in consultation with workers and submit it to certifying officer.

Cont..
Matters to be highlighted are;
Classification of employees Hours of work, holidays, paydays, wage rates Shift working Attendance and late coming Leave rules Temporary stoppages of work Termination, suspension and disciplinary actions.

Cont..
Certified copies-display Once certified- binding-penalties Labour commissioner- certifying officerand therefore all powers of civil court

cont..
Grievance procedure Code of Discipline
Fifteenth Indian labor Conference suggested a code of discipline in 1957.The central national labor organizations and employers associations have agreed to enforce the code from June 1 1958. Code aims at preventing disputes by providing for voluntary and mutual settlement of disputes through negotiations without interference of an outside agency.

Principles
Obligations of Both Parties Restrains employers and employees from unilateral action. Parties should not indulge in strikes and lockouts without notice Neither party will resort to coercion, intimidation, victimization or litigation or adopt unfair labor practices Both employers and unions will educate workers regarding their obligations and agree to follow mutually agreed grievance procedure.

Cont..
Obligations of Employer
Management agrees not to increase workload of workers without prior agreement with workers Prompt action to redress grievance discourages unfair labour practices Displays code in prominent places Take disciplinary action against officers who instigate workers.

Cont..
Obligations of Unions
Unions agree not to indulge in physical duress Not to permit employees to do union wok during working hours Discourage negligence of duty Careless operations Damage to property It does not have any legal sanction.

Trade Unions
Is a formal association of workers that promotes and protects the interests of its members through collective action. Objectives Wages and salaries Working conditions Discipline Personnel policies Employer-employee relations Negotiating machinery

Union Structure
Craft unions Industrial union General union Federations

Functions
Militant or protective or intra mutual functions Fraternal or extra mural functions Political functions Social functions Current trends in trade unions

Collective Bargaining
In organized labor/industrial relations, collective bargaining involves workers organizing together (usually in unions) to meet, discuss, and negotiate upon the work conditions with their employers. Such bargaining normally results in a written contract setting forth the wages, hours, and other conditions which the parties agree on for a stipulated period.

Features
Collective Strength Flexible Voluntary Continuous Dynamic Representation Bipartite process Complex

Objectives
To settle disputes relating to wages and working conditions Protect interest of workers through collective action Resolve differences Avoid third party intervention

Process
Identification of problem Collection of data Selection of negotiators Climate of negotiations Bargaining strategy and tactics Formalizing the agreement Enforcing the agreement

Grievance
Any discontent or dissatisfaction, whether expressed or not, whether valid or not, arising out of anything connected with the company which an employee thinks believes or even feels to be unfair unjust or inequitable.

Forms of grievances
Factual Imaginary Disguised

Steps in Grievance Handling

Identifying grievances Define correctly Collect data Analyze and solve Prompt redressal Implement and follow up

Discipline
Discipline is used to refer to the act of imposing penalties for wrong behavior. Negative discipline Positive discipline Self discipline Misconduct or indiscipline. Disciplinary action
Issuing a letter of charge Consideration of explanation Show cause notice Holding a full fledged enquiry Making a final order of punishment Follow up.

Workers participation in Management.

Participation is a way of sharing the decision making power with the lower ranks of the organization Forms of Participation
Sharing information with workers-final decision with management Joint consultation prior to decision making Active involvement of workers in decision making Self management and self control.

Prior to 1991, the industrial relations system in India sought to control conflicts and disputes through excessive labor legislations. These labor laws were protective in nature and covered a wide range of aspects of workplace industrial relations like laws on health and safety of labors, layoffs and retrenchment policies, industrial disputes and the like. The basic purpose of these laws was to protect labors. However, these protectionist policies created an atmosphere that led to increased inefficiency in firms, over employment and inability to introduce efficacy. With the coming of globalization, the 40 year old policy of protectionism proved inadequate for Indian industry to remain competitive as the lack of flexibility posed a serious threat to manufacturers because they had to compete in the international market.

 With the advent of liberalization in1992, the industrial relations policy began to change. Now, the policy was tilted towards employers. Employers opted for workforce reduction, introduced policies of voluntary retirement schemes and flexibility in workplace also increased. Thus, globalization brought major changes in industrial relations policy in India.

 Collective bargaining in India has mostly been decentralized, Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition e.g. pharmaceuticals. On the other hand, in other industries where the demand for employment is increasing are experiencing employment growths. In the expansionary economy there is a clear shortage of managers and skilled labor. The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions. Under pressure some unions and federations are putting up a united front e.g. banking.

IR in India
Another trend is that the employers have started to push for internal unions i.e. no outside affiliation. HR policies and forms of work are emerging that include, especially in multi-national companies, multi-skills, variable compensation, job rotation etc. These new policies are difficult to implement in place of old practices as the institutional set up still needs to be changed. HRM is seen as a key component of business strategy. Training and skill development is also receiving attention in a number of industries, especially banking and information technology.