Ir Unit 2

Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II EVOLUTION OF IR IN INDIA (Unit-I) or EVOLUTION OF TRADE UNIONS IN INDIA
(Unit- II) Trade Union is an outcome of the factory system. It is based on labor philosophy- united we stand, divided we fall. Industrial revolution in India has changed the traditional outlook in the labor management relationship. With the introduction of the modern factory system personal relationship between employer and employee disappeared and has given rise to many social and economic evils which made it imperative on the part of the workers to device an effective means to contact employers and to bargain with them. Formation of trade unions has provided in an ideal solution. History of the Trade Union movement in India The labor movement in India is about fourteen decades old, since it may be traced from 1860s. Early years of movement were generally led by philanthropists and social reformers, who organized workers and protected them against inhuman working conditions The early years of labor movement were often full of difficulties. Strike committees arose calling themselves trade unions and demanding the privileges of trade unions without any means of discharging responsibilities thereof. The position of the trade unions has considerably improved since then. The development during the span of about one hundred and forty years may be considered broadly under the following six periods: o Pre-Independence Era 1. Pre-1918 2. 1918-1984 3. 1925-1934 4. 1935-1938 5. 1939-1946 o Post-Independence Era 6. 1947 and since 7. The Unity Move The principle purpose of this section is to trace the origin and development of trade union movement in India. In the process an effort will be made to study the characteristics of labor movement and the factors which are responsible for the growth of trade union movement at various time levels. Pre-Independence Era 1. Pre-1918 Period: a. A movement started in 1860 led by Dinbandhu Mitra, a dramatist and social reformer of Bengal b. This movement was followed by some of the journalists to protest against the hardship of the cultivators and also the plantation workers c. Thereafter, an Indigo commission was appointed d. The report of Indigo commission reflects upon the grossest cruelties perpetrated by foreign planters with the aid and under the protection of laws framed by the British government specially for this purpose e. Thereafter the system of Indigo cultivation was abolished due to discovery of the synthetic process f. In 1875 a protest was made against poor working conditions of workers by Sarobji Shapuri in Bombay g. Thus in 1875, first factory commission was appointed as a result the Factories Act, 1881 was enacted h. This act was, however, inadequate to meet the evil of child labor; moreover no provisions were made to regulate the working conditions of the women workers and this gave rise to a great disappointment to workers i. In 1884, another factory commission was appointed j. In 1884 itself Mr. N.M.Lokhande organized the conference of the Bombay Factory Workers and drew up a memorandum signed by 5300 workers demanding the following: i. A complete day off, rest on Sundays.
Rupali Singh, Asst Professor, DoBM, HIMCS
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II ii. Half an hour recess iii. Working hours between 6:30 am to sunset iv. The payment of wages not later than 15th of the month v. Compensation for injuries In spite of these agitations no material change could be brought and therefore, another representation was made to the government in 1890 In 1884, the first labor association was organized in Bombay Mill Hand Association having Mr. Lokhande as its president Bombay Mill Hand Association started a labor journal (Dinbandhu) in order to propagate effective views of their own The Bombay Mill Hand Association also placed its demands before the Factory Labor Commission (1890), with Mr. Bangalee, the great Philanthropist as a member. The commission made due to consideration to the labor Thereafter the workers started strikes and the agitation were made As a result of agitation, the labor movement started during the period of 1860-1917 having the following features : i. The movement was led by the Philanthropist and social reformers and not by workers ii. There were no trade unions in the modern sense. According to the report on the working of the Factories Act at Bombay, in 1892 the Bombay Mill Hands Association was not to be classified as a genuine trade union. The following experts of the report itself is pertinent: 1. The Bombay Mill bands have no organized trade unions. It should be explained that although Mr. N.M.Lakhande, who served on the last Factory Commission, described himself as president of the Bombay Mill Hands Association, that association has no existence as an organized body, having no role of membership, no funds and no rules. I understand Mr. Lokhande simply acts as volunteer advisor to any mill hand that may come to him. But, the trade unions existed as early as 1897. For instance the amalgamated society to railway servants of India and Burma and other unions were formed in April 1897. iii. The associations mainly relied on petitions, memoranda and other constitutional means for placing their demands which were mainly confined to factory legislation e.g. hours of work, health, wages for overstay, leave, holidays and such other matters. iv. The early movement was confined to the revolt against the condition of child labor and women workers employed in various industries. v. Another feature of this period was the absence of strike as a means of getting grievances redressed. The association of workers worked with the cooperation of management and government official and sum of them considered in their duties to avoid strikes upon the part of its members by every possible and lawful means. vi. Strike during this period was considered to be the problem of law and order. Instances are not lacking where police acted upon as strike-breakers by using force and frame falls charges against strikers.
k. l. m. n. o. p.
2. 1918-1924: a. The period can perhaps be best described as the era of the formation of modern trade unionism. b. This period witnessed the formation of a large number of trade unions. c. Several factors were responsible for the promotion of the large numbers of trade unions i. The economic conditions of workers played an important role in the formation of trade union. The demand of Indian goods were increased enormously for two reasons: 1. The shortage of shipping facilities led restricted imports of several commodities for which India was dependent on foreign countries. 2. There was great demand of Indian goods from allies and neutral country. For these reasons the prices of Indian commodities viz., salt, cotton, cloth, kerosene, rose high. Naturally the cost of living steadily increased. The employer earned huge profits. The wages of workers were increased but it could not keep pace with the soaring prices of commodities. This resulted in further deterioration of condition of workers. Further, there was shortage of labor in some of the industrial centre due to epidemic of influenza. These reasons led to the formation of trade unions to improve their bargaining positions.
Rupali Singh, Asst Professor, DoBM, HIMCS Page 23
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II ii. The political conditions prevailing in the country also helped the growth of labor movement. The struggle for independence started during this period and the political leaders asserted that the organized labor would be an asset to the cause. The labor unions were also in need of some help. The political leaders took lead and helped in the growth of trade unions. iii. The workers revolution in Russia which established the first workers state in the world had its own influence in the growth of trade union movement. iv. The other factor responsible for growth of trade union move was the world wide unrest in the post war period. The war gave awakening in the minds of industrial workers. v. Another factor was the setting up the international labor organization in 1919 of which India was the founder member. The constitution of ILO required one representative from the government of member state. The government without consulting the unions appointed Sri N.M.Joshi as its representative. This gave an anxiety to workers to organize. As a result AITUC was formed in 1920. This gave an opportunity to send members for ILO conferences and also brought a change in government attitude to deal with labor problem. 3. 1925-1934: a. This period witnessed a split in AITUC namely, leftist and rightist. Later in 1929 a wing of AITUC, namely the All India Trade Union Federation was formed. The main cause of the communist influence was the economic hardship of workers. b. This period had also shown remarkable decrease in the intensity of industrial conflict. At least two factors were responsible for it. i. The Trade Dispute Act was passed in 1929 prohibiting strikes and lockouts. ii. The failure of strikes and lockouts resulted in industrial strife. c. Another significant feature of this period was the passing of the Trade Union Act, 1926 and the Trade Dispute Act, 1929. The former Act provides for registration of trade unions and affords legal protection to intervene and trade dispute. The later act provided for ad-hoc Conciliation Board and Court of Enquiry for the settlement of trade disputes. The act, as already observed, prohibited strikes and lock-outs in public utility services and general strikes affecting community as a whole. 4. 1935-1938: a. During this period unity was forced in trade unions. This led to revival of trade union activity. In 1935 the All India Red Trade Union Congress merged itself with the AITUC. Again, in 1938 an agreement was arrived at between All India National Trade Union Federation and AITUC and consequently NTUC affiliated itself with AITUC. b. Several factors led to this revival of trade unionism. i. The change in political setup in the country is responsible for change. It is significant that congress party which formed its government in 1937 in several provinces tried to strengthen the trade union movement and to improve the conditions of labor. ii. The working class was also awakened to their rights and they, therefore, wanted to have better terms and conditions of service. iii. Management also changed its attitude towards trade union. c. The year 1938 saw the most important state enactment viz., the Bombay Industrial Disputes Act, 1938. The significant features of the act were as follows: i. Compulsory recognition of unions by the employers ii. Giving the right to workers to get their case represented either through a representative union or where no representative union in the industry/ centre/ unit existed though elected representatives of workers or through the government labor officer, iii. Certification of standing orders which would define with sufficient precision the conditions of employment and make them known to workmen, iv. The setting up an industrial court, with original as well as appellate jurisdiction to which parties could go for arbitration in case there attempts to settle matters between themselves or through conciliations did not bear fruit, v. Prohibition of strikes and lockouts under certain conditions. The scope of the act was limited to certain industries in the province. 5. 1939-1946
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II a. World War II like the World War I brought chaos in industrial relations. Several reasons may be accounted for the industrial unrest and increased trade union activity. i. The rise in prices could not keep pace with the increase in wages. ii. There was a split in AITUC due to nationalist movement. iii. The post World War II witnessed retrenchment and, therefore, faced with the problem of unemployment. During this period the membership of registered trade unions increased from 667 in 1939-40 to 1087 in 1945-46. Further, the number of women workers in the registered trade unions increased from 18,612 in 1939-40 to 38,570 in 1945-46. Moreover the period witnessed a large number of strikes. b. During the emergency the defense of India rules, 1942 remained in force. Rule 81 A of the rules, empowered the government, i. To require employers to observe such terms and conditions of employment in their establishments as may be specified ii. To refer any dispute to conciliation or adjudication iii. To enforce the decisions of the adjudicators iv. To make general or special order to prohibit strikes or lockouts in connection with any trade dispute unless reasonable notice had been given. These provisions thus permitted the government to use coercive processes for the settlement of trade disputes and to place further restrictions on the right to use instruments of economic coercion. c. In 1946 another enactment of great significance in labor relations namely, the Industrial Employment (Standing Orders) Act, 1946 was passed with a view to bring uniformity in the condition of employment of workmen in industrial establishment and thereby to minimize industrial conflicts. The act makes it compulsory for employers engaging-one hundred or more workmen to define with sufficient precision the conditions of employment and to make those conditions known to workmen. Another important enactment at state level was the Bombay Industrial Relation Act, 1946. The act makes elaborate provisions for the recognition of trade unions and rights thereof. Post-Independence Era 6. 1947 and since a. With the advent of independence, the trade union movement in India got diversified on political consideration. The labor leader associated with the National Congress Party formed the Indian National Trade Union Congress in 1947. The aim of the INTUC is to establish an order of society which is free from hindrances in the way of an all round development of its individual members, which fosters the growth of human personality in all its aspects and goes to the utmost limit in progressively eliminating social, political or economic activity and organization of society and the anti-social concentration of power in any form. b. In 1948 the socialist party formed an organization known as Hind Mazdoor Sabha. The aims and objects of the sabha are to: i. To promote the economic, political, social and cultural interest of the Indian working class ii. Guide and coordinate the activities of affiliated organizations and assists them in their work iii. Watch, safeguard and promote the interests, rights and previlages of workers in all matters relating to their employment iv. Promote the formation of federation of unions from the same industry or occupation v. Secure and maintain for the workers 1. freedom of association, 2. freedom of speech, 3. freedom of assembly, 4. freedom of press, 5. right of work or maintenance, 6. right of social security and 7. right to strike vi. Organize and promote the establishment of a democratic socialist society in India, vii. Promote the formation of cooperative societies and to foster workers education viii. Cooperate with other organizations in the country and outside having similar aims and objectives.
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II c. A year later in 1949, another organization, namely, the United Trade Union Congress was formed. The aims and objects of the United Trade Union Congress as given in its constitution are: i. Establishment of socialist society in India ii. Establishment of a workers and peasants in India iii. Nationalization and socialization of the means of production iv. Safeguarding and promoting the interests rights and privileges of the workers in all matters , social , cultural , economic and political v. Securing and maintaining for the workers 1. freedom of speech, 2. freedom of press, 3. freedom of association, 4. Freedom of assembly 5. Right to strike, 6. Right to work or maintenance, 7. Right to social security vi. Bringing about unity in the trade union movement. d. The same year also witnessed the passing of the Industrial Disputes Act, 1947 and the Trade Unions (Amendment) Act 1947. The former Act introduced and adjudication system on All India level. It prohibits strikes and lock-outs without giving fourteen days prior notice and during the pendency of conciliation proceedings before a Conciliation Officer in public utility services. In non public utility services it prohibits strikes and lock-outs during the pendency of proceedings before Board of Conciliation, Labor Court, Tribunal, National Tribunal and Arbitration (when a notice is given Section 10-A of the Act). The Act further prohibits strikes and lock-outs during the operation of settlement or award in respect of any matter covered settlement or award. The latest Act brought several changes of great significance. The Act provided for recognition of Trade Unions and penalties for unfair labor practices by employers and unions. But the Act has not yet been enforced. Again in 1950 the Trade Unions Bill was introduced in the Parliament providing for registration and recognition of Trade Unions and penalties for certain unfair labor practices. On dissolution of the Parliament, the bill lapsed and has not since been brought forward by Government for the Parliament. e. Political involvement continued even after 1950. In addition to four major all India Organizations discussed above there are three unattached unions dominated by one of the other political parties. For instance on 23rd Jul, 1954 federation namely, Bhartiya Mazdoor Sangh (BMS) was formed in Bhopal by Jan Sangh Party presently known as Bhartiya Janta Party. The main object of BMS is to check the increasing influence of the Communist Unions in the Industry and co-operate with non communist unions in their just cause. A year later Central Federation, namely, Hind Mazdoor Panchayat, a new trade union organization by Sanyukt Socialist Party and Indian Federation of Independent Trade Unions which has no affiliation with any political party were formed. f. The period also saw the amendments in the Trade Unions Act in 1960. The amended Act brought four new provisions: i. Minimum membership subscription has been incorporated ii. The registrar of Trade Unions has been empowered to inspect account books, register, certificate of registration and other documents connected with the return submitted by them under the trade union act iii. Government is empowered to appoint additional and Deputy Registrar with such power and functions as it deems fit iv. Fate of the application for registration where applicants (not exceeding half of them) cease to be members or disassociate themselves from the application has been statutorily decided g. Some independent trade unions met at Patna on 21 March, 1964 and decided to form the All India Independent Trade Union Congress but this effort to unite the unaffiliated unions did not continue for a longer period and met an early death h. The act was once again amended in 1964. It made two changes: i. It disqualifies persons convicted by the court of an offence involving moral turpitude from becoming office-bearers and members of the executive of a registered trade unions ii. It requires for the submission of annual returns by registered trade union in a calendar year basis
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II i. j. 1970 witnessed another split at the national level in the AITUC. The decision of left communist group, which decided not to remain within the AITUC resulted in the formation of a separate organization, namely, the centre of Indian Trade Union by the Marxist Communist A further split took place in 1970-72. During the period there was a split in the united Trade Union Congress and another organization namely, the United Congress Lenin Sarani was formed.
7. The Unity Move a. In 1972 a new experiment was made when three central trade union organizations, namely, the HMS, the INTUC, and the AITUC in the meeting held on 21 May, 1972 at new Delhi agreed to establish a National Council of Central Trade Unions for the purpose of i. promoting understanding cooperation and coordination in the activities of the central trade unions, ii. to defend the interests of the working class and the trade unions movement, iii. to advance the interest of the working people and help towards the development of the national economy on a democratic, self-reliant and non-monopoly basis, iv. To overcome trade union rivalry and bring about trade union unity for common objectives and action. However, this organization even for limited purpose could not survive for a longer period and met an early death b. In September 1977 an All India Convention of Central Organization of trade unions including CITU, BMS, HMS, the TUCC was called which demanded time bound programs ensuring reduction in wage disparity, national wage and price policy and need based wages for industrial and agricultural workers c. In 1981 once again unity was shown in the trade unions to protest the promulgation of the Essential Services Maintenance Ordinance, 1981 and also the bill in that regard in the parliament. A year later in 1982 the Trade Union (Amendment) Bill, was introduced in Lok Sabha. The bill proposed to make the following amendments in the act, namely: i. To reduce multiplicity of unions ii. To have machinery or procedure for the resolution of trade union disputes arising from inter-union and intra-union rivalries iii. To have any time limit for registration of trade unions. iv. Also proposed to provide that a trade union whose certificate of registration has been cancelled would be eligible for re-registration only after the expiry of six months from the date of cancellation of registration, subject to certain conditions being fulfilled by the trade unions v. To enhance the percentage limit of the office bearers in executive of a registered trade union who are the persons actually engaged or employed in an industry with which a trade union is connected from 50 percent to 75 percent vi. It is proposed to empower the registrar of Trade Unions to verify the membership of registered unions and connected matters and report the matter to the State and central Governments vii. Penalties specified in the act for the contravention of its provisions are proposed to be enhanced viii. The bill also provides for the constitution of a bargaining council for a three year term to negotiate and settle industrial disputes with the employer d. While the unit-level bargaining council will be set up by the employers, the appropriate government will empowered to set up such councils at industry level e. However the aforesaid bill lapsed. Six years later the Trade Unions and the Industrial Disputes (Amendment) Bill, 1988 was introduced in the Rajya Sabha on May 13 1988 but it has not yet received the color of the Act f. The government of India had in 1997 approved certain amendments to the Trade Unions Act, 1926. The objectives of these amendments, is to ensure organized growth of trade unions and reduce multiplicity of trade unions. The Trade Unions Amendments Bill, 1997 was to be introduced in the Rajya Sabha in the winter session of the parliament in the year 1997, but due to various reasons, it was not introduced. g. Recently a consensus emerged among the leading trade union federation like the BMS, AITUC, CITU and INTUC on protection to domestic industry, strengthening the public sector units by way of revival and induction of professionals in the management and amendment of labor laws and among other inclusion of rural and unorganized labor in the social safety net.
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II OBJECTIVES OF TRADE UNION The main objectives of the trade unions are: 1. To ensure full employment 2. To secure greater participation of workers in the management of enterprises 3. To secure complete organization of all categories of workers including agricultural labor 4. To organize workers on an industry-wise basis 5. To improve the conditions at work and to provide various social security measures 6. To develop among the workers a sense of responsibility towards industry and the community 7. To oppose management 8. To exercise leadership Thus the worker is motivated towards the union membership to the degree that he thinks it will satisfy his wants and reduce his wants dissatisfaction. The ties are strong when he expected want satisfaction is strong, and vice-a-versa. FUNCTIONS OF TRADE UNIONS The primary functions of a trade union are to promote and protect the interests and basic needs of its members. Important among these are: 1. To secure for the workers fair wages 2. To safeguard security of tenure and improve conditions of service 3. To enlarge opportunities for promotions and training 4. To improve working and living conditions 5. To provide for educational, cultural and recreational facilities 6. To cooperate in and facilitate technological advance by broadening the understanding of workers on its underline issues 7. To promote identity of interests of the workers and their industry 8. To offer responsive cooperation in improving levels of production and productivity, discipline and high standards of quality 9. To promote individual and collective welfare PROBLEMS OF TRADE UNIONS The following are the main problems of trade unions in India: 1. Uneven growth: the growth of trade unions has not been even among the various industries. Plantations, coal mines, food industries, textiles, printing presses, chemicals, utility services, transport & communication and commerce are the main organized industries in which unionism has made progress. The degree of unionization varies widely from industry to industry. The manufacturing group contributed the largest share, followed by services, transport, communication & storage & cotton textiles. In other industries they are not well developed. Small size of unions: the small size of trade unions is due to various factors, namely: the fact that any seven workers may form a union under the Trade Union Act of 1926, and get it registered, so that a large number of small unions have come up. The women workers who form a substantial part of the work force are not allowed to join trade unions. The structure of the trade union organization in the country is the factory or unit of employment; so whenever employees in a particular factory or mine are organized, a new union is formed. Though the number of unions and union membership is increasing, the average membership has been declining. Rivalry among the leaders and the central organizations as resulted in a multiplicity of unions. 2. Financial weakness: trade unions suffer from financial weakness, for the average yearly income of a union has been rather low and inadequate. This is because the workers are apathetic towards trade unions and do not want to contribute a part of their hard earned money. Members, instead of making regular payments to the union, make ad hoc payments if a dispute arises. 3. Multiplicity of unions: multiple rival unions are an important feature and one of the great weaknesses of the Indian trade union movement. The multiple trade unions are because of;
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II a. The political outsiders wanting to establish of their own with a view to increasing their political influence. b. The Trade Union Act 1926 permits seven members to form and register a union. In India, many of the unions are general unions. c. In a democracy even a minority is given an opportunity to organize and further its interest. This has given rise to multiplicity of Trade Unions in an organization. d. Within a single organization, there exist a number of groups comprising insiders and outsiders, newcomer and old-timers, north-earners and south-earners. Given the large number of trade unions at the national and regional level with each other for increased membership has led to disunity among the workers. 4. Inter-union rivalry: the multiplicity of unions at the plant level has created the problem of inter-union rivalry. These unions often disagree over technological change, rationalization, automation or terms and conditions of employment and may lead to work stoppages. Sometimes one union agrees while the other does not due to rivalry among leaders, differences in strategy to be adopted ideological differences or personality clashes. 5. Leadership issue: another important problem of trade unions is the leadership of Trade Unions by person who are professional Politian and lawyers & doctors and who are not employees of the organization. This is Leadership by intellectuals. Rather than by workers. It applies at the local as well as a national level. This phenomena exists for several reasons: a. The rank and file, being illiterate, cannot communicate effectively with the management. b. Men in managerial positions are generally members of higher castes than those of the rank and file unionists. c. Union members generally avoid victimization if they become office bearers of trade unions. d. For insuring a measure equation of power in collective bargaining where the workers are generally uneducated and have a low status. e. Due to lack of financial resources trade unions do not appoint whole time office bearers. 6. Political nature of unions: the Trade Unions by their very nature are political. Trade Unions through their collection action are organization concerned with the interest of a particular class. However, they are also concerned with the distribution of power and decision making. These two features make the Trade Unions political and the inter-relationship between politics and trade union is perpetual. Both trade unions and political parties have vested interests in each other as an effect of their actions and strength is of interests to each other. 7. Recognition of trade unions: in our industrial relations system, the employers are under no obligation to recognize the trade unions. In the early stages, the attitude of employers towards trade union was very hostile. They first try to scoff at it and then try to put it down and lastly, if the movement persists to exist, they recognize it. This phenomenon still exists in the present day industrial scenario. The employers frequently refuse to recognize either on the basis that unions consist of only a minority of employees or that two or more unions existed. However, the fact that the unions consist only a minority or employees or the existence of two or more rival unions are not in itself a sufficient reasons for refusing to recognize any or all of the trade unions. STRUCTURE OF TRADE UNION The structure of trade unions refers to the basis on which unions are organized and to the pattern whereby the plant unions are organized and to the pattern whereby the plant unions are linked to regional level or national level federation of unions Trade Unions are classified into following three categories: 1. Craft Unions: A craft union is formed by workers belonging to same occupation or specialization irrespective of industry. The carpenters working in different industries may form a union of carpenters. The Indian pilots Guild and International Wood carvers are the examples of craft union exist among nonmanual workers like administrative staff professionals, technicians etc.
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II 2. Industrial Unions: Industrial union is formed on the basis of industry rather than on a craft i.e., the workers of a cotton textile factory may form a union consisting of workers of different crafts to avoid separate bargaining by each employee union i.e., cotton textile factory Rashtriya Mill Mazdoor Sangh Mumbai 3. General Union: General Union embraces all workers whatever industry or craft in a place. Its membership covers workers employed I different industries and crafts e.g. Jamshedpur Labor Union. In out country most of the trade unions have been organized by industry. Another way of structuring trade unions in our country is on their pattern of relationship between national level, regional level, local level and plant level unions: 1. Plant Level Union: these unions functions at lowest level or at the plant level and does not have more influence independently. But they generally unite in a particular craft or industry for strength 2. Local Level Federation: The plant level unions at the local level in a particular craft or industry are held together by the local level federations 3. Regional Level Federation: Due to variation in style of living language, customs, traditions, working conditions from region to region workers are organized at regional or state level. Regional level Federations are organizations of all the constituents unions in a particular state or region. Regional Federations may be independent or may get affiliated to some national federation. 4. National Federation: National Federation is the apex bodies at the top of the structure and act as coordinating body. The plant level unions, local level unions, or regional level unions may get affiliated to national level bodies. The national federation may have their own regional or state level coordinating bodies which the plant level unions may get affiliated. COLLECTIVE BARGAINING Collective bargaining is the technique that has been adopted by union and managements to be reconcile there conflicting interests. jhagdaa The phrase collective bargaining is said to have been coined by Sydney and Beatrice web of great Britain, which is said to be the home of collective bargaining. Acc. to them, collective bargaining is the method by which trade unions protected and improved the conditions of their members working lives. The phrase collective bargaining is made up of two words- collective and bargaining-the process is the collective because issues relating to terms and conditions of employment are solve by representative of employees and employers in groups rather than an individuals. The term bargaining refers to involving an agreement using methods like negotiations, discussion, exchange of facts and ideas, rather than confrontation. The process of collective bargaining is bipartite in nature that is the negotiations are between the employers and employees, without the third party intervention. The objective of collective bargaining is to come to an agreement. The process of collective bargaining is that divergent view point is put forth by the parties concerned and through negotiations and a settlement is arrived at. Definitions1. Acc. to encyclopaedia of social sciences: collective bargaining is a process of discussion and negotiation between two parties, one or both of whom is a group of persons acting in concerned .the resulting bargaining is an understanding as to the terms and conditions under which a continuing services is to be performed. More specifically, collective bargaining is a procedure by which employers and a group of employees agree upon the conditions of works 2. The ILO has defined collective bargaining as negotiation about working conditions and terms of employment between and employer and a group of employees of more or employee organization with a view to reaching an agreement where in the term serve as in code of defining the rights and obligations of each party in their employment, relation with one another. fix a large number of detailed conditions of employment
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II and during its validity none of the matters it deals which can in normal circumstances be given as a ground for a dispute concerning and individual worker 3. Acc. to Dale yoder collective bargaining is essentially a process in which employees act as a group in seeking to shape condition and relationship in their employment. 4. Cox defines collective bargaining as the resolution of industrial problem between the representatives of employers and their freely designated representatives of employees acting collectively with a minimum of govt. dictation. 5. Summer H. slitchter Defines collective bargaining as the beginning of industrial jurisprudence. It is a method of enforcing citizenship rights in industry i.e. mgmt should abide by certain rules rather than taking arbitrary decision. 6. R.F.Hoxie says collective bargaining is a mode of fixing the terms of employment by means of bargaining between an organize body of employees and an employer. NATURE OF COLLECTIVE BARGAINING: 1. It is carried out on collective as distinct from an individual basis i.e. the collective bargaining is bargaining of groups of people. 2. In the bargaining process the main actors are employers and their associations 3. The object of collective bargaining is rule making i.e. reaching an agreement by specifying the rules pertaining to employment relationship. SCOPE OF COLLECTIVE AGREMENT: 1. The purpose of the agreement, its scope and definitions the important terms. 2. The right and responsibility of the management and the trade union. 3. Wages, bonus, production norms, leave, retiring benefits and other benefit and terms and conditions of services. 4. Grievance redressall procedure. 5. A termination clause. FEATURES OF COLLECTIVE BARGAINING: 1. Collective: it is collective in two ways. One is that all the workers collective bargain for their common interest and benefit .the other that workers and management jointly arrive at a solution through negotiation. 2. Strength: across the table both parties bargain from a position of equal strength. 3. Flexible: it is a group action where representative of workers and mgmt. expand energies in order to arrive at a consensus .It has sufficient flexibly since no party can afford to be inflexible and visit in such situation. 4. Voluntary: both workers and management come to negotiating table voluntarily in order to have a meaningful dialogue on various troubling issues. 5. Continuous: collective bargaining is a continuous process .It does not commence with negotiation and with a n agreement. 6. Dynamic: collective bargaining is a dynamic process because the way agreements are arrived at ,the way they are implemented the mental makeup of parties involved keep changing. 7. Power relationship: workers want to gain the maximum from mgmt. and mgmt. wants to extract the max from workers by offering as little as possible. 8. Representation: The chief participants in collective bargaining do not act for them. They represents the claims of labour an mgmt. while trying to reach an agreement. 9. Bipartite process: the employers and employees negotiate the issues directly face to face across the table. There is no third party intervention. OBJECTIVES OF COLLECECTIVE BARGAINING: 1. To settle conflicts resulting to wages and working conditions. 2. To protect the interest of workers to collective action. 3. To resolve the diff between workers and mgmt. through voluntarily negotiations and arrived at a concensus.
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II 4. To avoid their party intervention in matters relating to employment. SIGNIFICANCE OF COLLECTIVE BARGAINING: 1. Institutional importance: collective bargaining has come to be reckoned as an imp. Institution in almost all the industrialized democratic societies that have recognized an allow freedom of association. 2. Man power economic rule: Acc. To Baleyoder collective bargaining plays an imp. role in manpower allocation, utilization an conservation 3. To words promoting industrial peace: collective bargaining is considered as the first available method of resolving and for settlement of any industrial conflict. 4. A great social invention: Kornhanser and his other associates the editors of the publications industrial conflict have hailed collective bargaining as the as the great social invention that has institutionalized industrial conflict. 5. Restrains managements unilateral actions : collective bargaining has traditionally concerned, with the regulation and settlement of wages and other employment conditions of the employees and in the maintenance of healthy industrial relation between mgmt. and workmen. NEED OF COLLECTIVE BARGAINING: 1. The high degree at collective bargaining as measured in terms of proportion of workers cover by collective agreements. 2. Qualitative conduct of the parties to collective bargaining both before a situation warranting negotiations develops and the method followed at the time of arriving at agreements. 3. The right priorities assign to if methods in the agreement and their changing method over time. 4. a structure of bargaining with emphasis on central bargaining which is purpose to give some order an stability to labour mgmt relations. TYPES OF BARGAINING: 1. Conjunctive/Distributive/ bargaining:the parties try to maximize their respective gains. They try to settle economic issues such as wages, benefits, bonus etc. through a zero sum game .unions negotiate for maximum wages. 2. Cooperative Bargaining: when companies are hit by recession they cannot offer the kind of wages and benefits demanded by workers at the same time they cannot survive without the latest support. Both parties realize the importance of surviving in such difficult times and are willing to negotiate the terms of employment in a flexible way. 3. Productive bargaining: In this method workers wages and benefits are links to productivity. A standard productivity index is finalized through negotiation initially. Workers do not have to perform at exceptionally high levels to beat the index. 4. Composite Bargaining: here labour bargains for wages as usual but goes a step further demanding equity in matters relating to work norms, employment leaves, manning standards, environmental hazard etc. unions are able to prevent the dilution of their power and ensure justice to workers by putting certain limits on the freedom of employers. PRINCIPLES OF COLLECTIVE BARGAINING: Arnold F. Cmpo suggests the following principle for efficient function of collective bargaining: For Union And Management 1. collective bargaining should be made an educational as well as bargaining process .it should offer to trade union leaders n opportunity to present to the management the wants, the desire, the grievances and the attitude of its employees and make it possible for the management to explain to union leaders an through them to its employees, the economic problem which confront it. 2. The management and the trade union must look upon collective bargaining as a means of finding the best possible solution and not as a mean of acquiring as much as one can while conceding the minimum. 3. Both the parties to a dispute should command the respect of each other. 4. There should be mutual confidence and good faith, an a desire to make collective bargaining effective in practice.
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II 5. There should be an honest able and responsible leadership for only this kind of leadership will make collective bargaining effective and meaningful. 6. The two parties should meticulously observe and abide by all the national and state laws, which are applicable to collective bargaining. 7. Both the parties must bear in mind the fact that collective bargaining is in a sense, a form of price fixation and that any successful collective bargaining depends, in the last analysis on whether the management and the trade union do a good job of ensuring that the price of labor is property adjusted to other prices. For the Management: 1. The management must develop and consistently follow a realistic labor policy, which should be accepted and carried out by all its representatives. 2. In order to ensure that the trade union feels that its position in the organization or factory is secure, the management must grant recognition to it without any reservations and accept it as a constructive force in the organization and the industry. 3. The management should not assume that employees goodwill should always be there for it. It should periodically examine the rules and regulations. By which its labour force is governed 4. The management should act upon the assumption that in order to make the trade union are responsible and conservative body, it is essential that it should be fairly treated. 5. The management should not wait for the trade union to bring employees grievances to its notice but should rather create the conditions in which the trade union will not do so and should settle the grievances of the employees even before the trade union brings them to the notice of the management. 6. The management should deal with only one trade union in the organization. If two trade unions seek recognition, no negotiation should be undertaken with till one of them establishes the fact of having the majority of the membership of the employers in its organization. 7. While weighing the economic consequences of collective bargaining the management should place greater emphasis on social consideration. For The Trade Union: 1. In view of the rights granted to organized labour it is essential that trade union should element racketeering and other undemocratic practices within their own organization. 2. Trade union leader should not imagine that their only function is to secure higher wages for their members and shorter hours of work a better working condition for them. 3. Trade union leaders should appreciate the economic implications of collective bargaining for their demands and generally made from the income and resource of the organization in which their members are employed. 4. Trade union leader should assist in the removal of such restrictive rules and regulation as are likely to increase cost an crises and reduce the amount that can be paid out as wages. 5. Trade union should resort to strikes only when all other methods of the settlement of a dispute have failed to bring about satisfactory results. PROCESS OF COLLECTIVE BARGAINING: Step 1: Pre Negotiation Phase: this is the stage before starting collective bargaining. At this stage the management wants to estimate the power and capacity of labour unions. At this stage all the relevant data, information and figures are collected so that the stage may be prepared for negotiation. Step2: Selection of negotiators: At this stage both the management and the labor union select their representatives who will take part in negotiations from their side. Only such person selected as negotiators who are fully acquainted with the problems on which negotiations are going to be held. Step 3: Strategy of bargaining: Management should decide the basic strategies and policies that will be followed at the time of bargaining with the employees. Everything must be made clear before going to the bargaining table. The management
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II should get due power to enter into agreements with workers. Similarly labor union should also determine the strategies on the basis of which they will take part in negotiation. Step 4: Tactics of Bargaining: The technique of collective bargaining should depend upon the principle of the give and take both the parties try to get more then they sacrifice. The services of government mediators can also be used if require Step 5: Contract: Fifth stage of the process of collective bargaining is to enter in to a collective agreement. Such agreement are made for a certain time these agreement give full details of security of job , grievance handling procedure, promotion policy, transfer policy, rules regarding lay off , rules regarding retrenchment, hours of work, rules regarding leaves, incentive schemes etc. Step6: Implementation of the contract: The last stage of the process of collective bargaining is the implementation of the agreements entered into between management and labour unions. Both the parties should honour these agreements implement them whole heartedly DISCIPLINE
Discipline means a condition in the organization when employees conduct themselves in accordance with the organizations rules and standards of acceptable behavior Discipline also means orderliness. In industrial context, it means working and behaving in a normal and orderly way, as any reasonable person expects an employees to do The term Indiscipline is both the cause and effect of the state of industrial relations The term Indiscipline can be described as non-conformity to formal and informal rules and regulations It is necessary to correct indiscipline in an organization as soon as it is observed because it results in chaos, confusion and diffusion of results
Objectives of Discipline Discipline in an organization is very essential for the following purposes: 1. Smooth running of the organization 2. To obtain a wiling acceptance of rules and regulations of organization 3. It enhance efficiency and reduces costs 4. It minimizes absenteeism and employee turnover 5. It promotes better care for equipments 6. Employees gain a sense of security and safety 7. It increases the self respect for the company
Causes of Disciplinary Violations
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II There can be many causes for the disciplinary violations as that related to ignorance, illiteracy, Non-adherance to the industrial culture, Non-redressal of grievances, lack of commitment to work, absence of occupational status, low wages, unfair labor practices, bad working conditions, etc. These causes may broadly be classified into the following categories: 1. Causes related to the workers 2. Causes related to the socio-cultural factors 3. Causes related to the management practices 4. Causes related to the work environment
Indiscipline Problems S.P. Robbins has described commonly found discipline problems as follows: 1. Attendance: it is a foremost problems having Absenteeism, tardiness, sick leaves, and other aspects of attendance. The reasons includes: a. Organization fail to alight workers goals with those of the organization b. Changing attitude towards work c. Different backgrounds of the new entrants d. Many employees believe that the earned leaves should be consumed e. Employees/ Trade union leaders believe that it is difficult to fire them 2. On-the-job Behavior: it includes the following a. Insubordination b. Fighting c. Gambling d. Failure to use safety devices e. Carelessness f. Use of alcohols and drugs
3. Dishonesty: 4. Outside Activities: it includes a. It affects on-the-job performance b. Unauthorized strikes c. Having ones wages garnished d. Outside criminal activities e. Working for a competing organization
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II
Disciplinary Actions 1. Minor Punishments/ Minor Disciplinary Actions: a. Oral Warnings: when an employee commits minor omissions, he may be given an oral reprimand by the superior concerned. In such cases, the superiors should enlightened the employees as to how to prevent their recurrence. Since repeated warnings may bring down drastically the level of morale of the employees, oral warnings should be used sparingly b. Written Warnings: whenever oral warnings fail to achieve the desired behavior on the part of an employee, written warnings, which are the first formal state of progressive discipline, may be resorted to. Written warnings are also referred to as pink slips which indicate that certain rights would be withdrawn in case the employees continues his omissions or misconduct c. Loss of Privileges and imposing fines: if an employee leaves the work, without taking the permission of the superior, he may not be allowed to select good tools and machine for himself and to move freely in the company. All these might have been the privileges enjoyed thereto by the employee. Further, if the contract of employment provides for imposition of fines by the employer on the delinquent employees, the employer may resort to them. d. Punitive Suspensions: under punitive suspension the employer prohibits the employee from performing the tasks assigned to him and the wages are withheld or withdrawn during the period of such prohibition 2. Major Punishments/ Major Disciplinary Actions a. Withholding of Increments: this is a major punishment. Under this method, the employer withholds the annual increments of the delinquent employee in a graded scale b. Demotions: Under this kind of punishment, an employee is reduced to a lower grade from the grade enjoyed by him earlier. Normally this method is resorted to when an employee is promoted by mistake and he is not able to perform the job. c. Terminations: i. Discharge Simpliciter: termination of the service of an employee may not be on account of his misconduct but may be for loss of confidence or for certain other reasons which do not cast a slur on him. This is referred to as Discharge Simpliciter. In such case, if the employee challenges the employers, the employer must prove them. In it, the employer is not bound to hold an enquiry. ii. Discharge: Discharge amounts to termination of service by giving agreed notice or payment and acceptance of money in lieu of such notice. In other words, in discharge, the reciprocal promises and obligations are stated to be discharged iii. Dismissal: Dismissal is also referred to as industrial capital punishment. Dismissal is the extreme form of punishment. It is usually awarded only when it becomes incompatible to continue employer-employee relations. It is also awarded in case of willful insubordination, disorderly behavior, theft, etc.
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II EMPLOYEE GRIEVANCES Introduction There are many factors in industry which make a worker unhappy and dejected. May be his fellow workers are non-cooperative or his foremans sarcastic or harsh remarks on his own personal problems outside the factory or domestic matters. Poverty, undernourishment debts, unemployed dependants etc. may be working adversely in his mind. He looks around and finds everybody being unkind to him. He is aggrieved and wants to ventilate his feelings and reaction. Torrington has approved a useful categorization of dissatisfaction complaint and grievance. Dissatisfaction means anything that disturbs an employee, whether or not the unrest is expressed in words. Complaint means a spoken or written dissatisfaction brought to the attention of the supervisor or the shop steward. Grievance means a complaint that has been formally presented to management representative or to a union official. Definition A grievance is a formal dispute between an employee and management on the condition of employment. Grievances are complaints that have been formally registered in accordance with the grievance procedure Jackson. A grievance is any dissatisfaction or feeling of injustice in connection with ones employment situation that is a brought to the attention of the management beach. According to Michael JJucius the term grievance means any discontent or dissatisfaction, whether expressed or not whether valid or not arising out of anything connected with the company that an employee thinks believes or even feels, is unfair unjust or inequitable. This definition is very broad and covers dissatisfaction which have the following characteristics: 1. The discontent may arise out of something connected with the company workers may be dissatisfied because of several reasons e.g., illness in the family quarrel with a neighbor disburg for the political party in power, and so on. Such outside sources are beyond the control the control of the company and therefore do not constitute a grievance. 2. The discontent may be expressed or implied. Expressed grievances are comparatively easy to recognize and tardiness are manifested in several ways e.g., gossiping, jealousy, active criticism. Argumentation, increased labor turnover, carelessness in the use of tools and materials, untidy housekeeping, poor workmanships. Unexpressed grievances are indicated by indifference to worlike love hatredk, daydreaming, absenteeism, etc. 3. The discontent may be valid, legitimate and rational or untrue and irrational or completely ludicrous. The point is that when a grievance hold by an employee comes to the notice of management it cannot usually dismissed it as a irrational or untrue. Such grievances also have to be attended to by the management in the same way as rational grievances. Emotional grievances which are based upon sentiments, (like love, hatred, resentment, anger, envy, fear etc.). Misconceptions and lack of thinking are examples of irrational behaviour. These grievances are most difficult. Forms of Grievance An grievance may take any of the following forms: a. FACTUAL: A factual grievance arises when legitimate needs of employees remain unfulfilled e.g. waged hike has been agreed but not implemented citing various reasons. b. IMAGINARY: When an employees dissatisfaction is not because of any valid reason but because of wrong perception, wrong attitude, or wrong information he has such a situation may create an imaginary grievance. Though management is not at fault in such instances, still it has to clear the fog immediately. c. DISGUISED: An employee may have dissatisfaction for reasons that are unknown to himself. If he/she is under pressure from family, friends, relatives, neighbors, he/she may reach the work spot with a heavy heart. If a new recruit gets a new table and almirah this may be come and eyesore to other employees who have not been treated likewise previously. Causes of Grievances The causes of grievances may broadly classify in the following categories:
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II a) Grievances resulting from working conditions (i) Improper matching of the worker with the job (ii) Changes in schedule or procedures (iii) Non-availability of proper tools machines equipments for doing the job. (iv) Tight production standards. (v) Bad physical conditions of work place. (vi) Failure to maintain proper discipline (excessive discipline or lack of it, both are equally harmful). (vii) Poor relationship with the supervisor. b) Grievances resulting from period maladjustment (i) Over ambition (ii) Excessive self esteem (iii) Impractical attitude to life, etc. c) Grievances resulting from management policy (i) Wage payment and job rates. (ii) Leave (iii) Overtime (iv) Seniority (v) Transfer (vi) Promotion, demotion, discharges (vii) Lack of career planning and employee development plan. (viii) Hostility towards a labor union d) Grievances resulting from alleged violation of (i) The collective bargaining agreement (ii) Central or state laws (iii) Past practice (iv) Company rules (v) Managements responsibility Essential Prerequisites of a Grievance Procedure Every organization should have a systematic grievance procedure in order to redress the grievance effectively. The grievance procedure to be sound and effective should possess certain prerequisites. a) Conformity with statutory provisions - due considerations must be given to the prevailing legislation while designing the grievance handling procedure. b) Unambiguity- every aspect of the grievance handling procedure should be clear and unfiguous. All employees should know whom to approach first when they have a grievance, whether the complaint should be written or oral the maximum time in which the redrassal is assured etc. the redressing official should also know the limits within which he can take the required action. c) Simplicity- the grievance handling procedure should be simple and short. If the procedure is complicated it may discourage employees and they may fail to make use of it in a proper manner. d) Promptness- the grievance of the employee should be promptly handled and necessary action must be taken immediately. This is good for both the employee and management because if the wrong doer is punished late, it may affect the moral of other employees wealth. e) Training- the supervisor and the union representation should be to nopairly trained in all aspects of grievance handling beforehand, or else it will complicate the problem. f) Follow up- the personal department should keep track of the effectiveness and the functioning of grievance handling procedure and make necessary changes to improve it from time to time. Grievance Procedure Grievance procedure is a formal method mutually agreed to by the management and union for dealing with grievances. It specifies the person to whom grievances may be referred sets time limit for solving the referred problem and also indicates the way grievances should be filled at various stages- the existence of the formal procedure provides clear opportunities to employees to seek reappraisal of their grievances. The fact that there is a time limit within which a decision has to be taken at any particularly level creates the feeling of confidence in the sincerity of management in dealing with employees problems. It has been the experience of some companies that when a grievances procedure is introduced the number of grievances shoot up initially it is natural for employees to overuse an opportunity that is
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II newly introduced but soon adjustment takes place resulting in an easy and helpful communication among the different level of the organization. Grievance procedure provides a framework within which the process of dealing with grievances can take place in an orderly manner. Steps in the grievance procedure: a) Identity grievances: employee dissatisfaction or grievance should be identified by the management if they are not expressed. If they are ventilated, management has to promptly acknowledge them. b) Define correctly: the management has to define the problem properly and accurately after it is identified/acknowledge. c) Collect data: complete information should be collected from all the parties relating to the grievance. Information should be classified as facts, data, opinion etc. d) Prompt redressal: the grievance should be redressed by implementing the solution e) Implement and follow-up: the implementation of the solution must be followed at every stage in order to ensure effective and speedy implementation. Grievance Procedure The procedure normally envisaged in the handling of grievances should be as follows: 1. Approaching the officer designated. Agreed employee shall first present his grievance verbally in person to the officer designated by the management for this purpose and answer shall be given within 48 hrs of the presentation of complaint. 2. Presenting grievance to the designated head of department. If the worker is not satisfied with the decision of this officer or fails to receive an answer within the stipulated period he shall, either in person or accompanied by his departmental representative, present his grievances to the head of the department. Designated by the management for the purpose of handling grievance. For this purpose a fixed time shall be specified during which on any working day, an aggrieve worker could meet the departmental head for presentation of grievances. The departmental head shall give his answer within three days of the presentation of grievances. If action cannot be taken within that period, the reason for delay should be recorded. 3. Forwarding the grievance to the grievance committee. If the decision of the departmental head is unsatisfactory the aggrieved party may request the forwarding of his grievance to the grievance committee which shall make its recommendations to the manager within 7 days of the workers request. If the recommendations cannot be made within the time limited, the reason for such delay should be recorded. Unanimous recommendations of the grievance committee shall be implemented by the management in the event of a difference of opinion among the members of grievance committee the views of the members along with the relevant papers shall be placed before the manager for final decision. In either case the final decision of the management shall be communicated to the workman concerned by the personal officer within three days from the receipt of the grievance committee recommendations. 4. Requesting the management for revision. If the decision from the management is not forthcoming, within the stipulated period or is unsatisfactory the worker shall have the right to appeal to management. In making this appeal, the worker if he so desires, shall have a right to take a union official along with him to facilitate discussions with management. The management shall communicate their decision within a week of the workmans revision petition. 5. Reference to voluntary arbitration. If no agreement is still possible, the union and the management may refer the grievance to voluntary arbitration within a week of the receipt by the worker of management decision. 6. The conciliation machinery shall not intervene till final step. Where a worker has taken up a grievance for redress under this procedure the formal conciliation machinery shall not intervene till all steps in the procedure are exhausted. A grievance shall be resumed to assume the form of the dispute only when the final decision of the top management in respect of the grievance is not acceptable to the worker. 7. Grievance stemming from an order by the management. If a grievance arises out of an order given by management, the said order shall be compiled with before the workman concerned invokes the procedure laid down for redress of grievance. If however, there is time lag between the issue of order and its compliance the grievance procedure may immediately be invoked by the order nevertheless must be compiled within the due date, even if all the steps sin the grievance procedure have not been exhausted. It may however be advisable for the management to await the findings of grievance procedure machinery. 8. Access to connected documents. Workers representation on the grievance committee shall have the right of access to any document connected with the enquiry maintained in the department which may be necessary to understand the merits or otherwise of the workers grievances. The managers representative shall have the
Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II right, however to refuse to show any document or any grieve information which they consider to be a confidential nature. Such confidential document shall not be used against the workman in the source of the grievance proceedings. Time limit for appeal. There shall be a time limit within which an appeal shall be taken from one stage to another. For this purpose the aggrieved worker shall within 72 hrs of the receipt of the decision at one stage or if no decision is recourse on the expiry of the stipulated period, find his appeal with the authority at the next higher stage, should be feel inclined to appeal. Other arrangements in the grievance procedures. In calculating the various time intervals under the above clause, holidays shall not be reckoned. Management shall provide the necessary clerk and other assistance for the smooth functioning of the grievance machinery. If it necessary for nay worker to leave the department during working hours on call from the labor/personal officer or any other officer of the established grievance machinery, previous permission of his superior shall necessarily be obtained subject to this condition, the worker shall not suffer any loss in wages for the work time lost in this manner. If however, thereby any complaint against any individual member of the staff who is nominated by the management to handle grievance at the lowest level the workman may take up his grievance at the next higher stage that is, at the level of the departmental head. Grievance arising from discharge or dismissal. In case of any grievance arising out of discharge or dismissal of a workman above mentioned procedure shall not apply. Instead a discharge workman shall have the right to appeal either to the dismissing authority or to a senior authority that shall be specified by the management within a week from the date of dismissal or discharge. At the time the appeal is heard, the workman may, if he so desire, be accompanied by either an official of the recognized union or a fellow worker as the case may be.
9.
10. 11. 12.
13. 14.
A sound grievance procedure is a must for all organization. Some important procedures tested and proved effective as suggested by BAER in his book Grievance handling and worth noting. 1. Investigate and handle each and every case as though it may eventually result in dispute. 2. Give employee a full hearing. 3. Enforce agreements in the true spirit and ensure unions identify specific contractual provisions allegedly violated. 4. Do not delay action or in action cause the employee or the union to default on their compliance with any contractual obligations. 5. Do not deny the grievance for reason of non- compliance. 6. Do not argue the merits of the grievance first if the grievance is untimely. 7. Do not apply grievance remedy to an improper grievance.\ 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Does not hold back the remedy if the organization is wrong and apply the remedy to the person wronged. Do not assume a judicial or arbitrary role. Remember always that the union is a moving party. Determine and ensure there has been equal treatment of employees. Evaluate any political connotations of the grievance. Do not practice Parking-son Law and labor relations. Permit reasonable latitude to the unions in the manner of its representations but do not relinquish your authority. Do not permit misconduct of union representative. Admit errors and take corrective actions. Use the grievance machinery as another channel of communication. Demand proper productivity levels are maintained. Control your emotions remarks and behavior. Recognize employees as individuals. Do not fail to keep employees informed as to where they stand. Grievance is like headache. It is a symptom and not a disease diagnosed properly, treated appropriately and in time the organization will be rid of the disease in the beginning itself. The cardinal principle says listening reduces the burden of the employees and half the problem is already solved by listening. Listening reduces the Greif of the other party. Political perseverance a searching look from within, a wide look around a long look ahead on the part of the manager always ensure that the work of grievance handling machinery is reduced to a considerable and manageable extent.
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LABOUR TURNOVER Labor Turnover is the Rate of change in the working Staff Labor Turnover is the extent to which the old employee leave and new employees enter the services of the concern Statistically, labor Turnover is expressed as the ratio of yearly or monthly separations to the average number of full time workers for that period. It is assumed that the total number of jobs available in an organization is constant. Labor Turnover can be measured either by Separation Rate or by Accession Rate. o Separation Rate may be defined as the total number of workers separated, left, terminated, wheather through death, retirement, or retrenchment from the employment during the period (i.e. severance of employment at the instance of workers or employers). Accession Rate may be defined as the total number of workers added to the employment duting the period whether they were new or re-employed or transferred from other establishments or units under the same management. If the number of employees remains same then , SR=AR If the number of employees are increasing then, AR>SR If the number of employees are decreasing then, SR>AR
Causes of Labor Turnover 1. Resignations: The chief cause of the labor turnover are resignations due to variety of reasons such as dissatisfaction with the working conditions, insufficient wager, bad health, sickness, old age, family circumstances, and for agricultural operations, etc. 2. Dismissals: The dismissal of employees is the second important cause of labor turnover which may be due to disciplinary actions in case of inefficient, insubordination, participation in strikes and misconduct, etc. Victimization of workers who interest themselves in trade union activities has been alleged to ne a fruitful cause of dismissal. 3. Lay-Offs: The employees are laid off by the employers on account of shortage of raw materials or discontinuance of their business due to certain other difficulties. Hence the employees seek employment elsewhere. This increases the rate of labor turnover. 4. Discharge of workers: This occurs when a particular piece of work for which they have been taken on is completed. For instance the employment of the temporary workers in the seasonal industries like sugar factories is followed by their discharge after the season. 5. More attractive jobs: The attraction of high wage rates and other benefits often tempt workers to migrate from one enterprise or place of work to another enterprise or place of work. 6. Methods of Recruitment and Promotion: For instance, recruitment through Badli system has contributed to a high labor turnover to a high labor turnover. Again in the absence of clearly laid down policy of promotion in the establishment, the workers do not stay in the organization.
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II 7. Circumstances of workers: The accident, death, superannuation, marriage and the desire of the worker to change work are also the reasons that cause labor turnover. Workers who make a periodic exodus to the village for agricultural operations very often regard industrial employment as merely a second string to their bow. Thus labor turnover occurs as a result of migratory character of the labor. 8. Unstable working and Service conditions: A worker may leave the job in the present factory and seek employment in the other, because of unsuitable working and other service conditions. Besides, the workers may leave his present job because of inaccessibikity of the workers home, lawer wage rates and unsatisfactory opportunities for future promotions and advancements. 9. Fellow workers and unions: Sometimes, the workers leaves his present job on account of disagreeable relations with the fellow workers. In certain cases, they are victimized in account of their active participation in the activities of their unions. 10. Female workers: The female workers at the time of their marriage and other family responsibilities leave the job and again join some other establishments after the period is over. Therefore, the rate of labor turnover is high among female workers as they have to attend domestic duties and depend on their husbands.
Methods to Reduce the Labor Turnover 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Evils in the method of recruitment should be removed. Recruitment should be made through employment exchanges Restrictions on the powers of jobbers should be imposed Improvement in the working conditions of the workers should be made Enlightened policy of labor management should be followed Proper wages should be paid Transfers and promotions should be made on the basis of merit Proper provisions for leave and holidays should be made Provisions of facilities for education and training should be made so that workers may get opportunity of increasing their efficiency and wages Provisions for the welfare of the workers should be made liberally The schemes of employment and sickness insurance should be introduced Measures should be adopted to improve the economic position of the workers and given them security of employment Employers should keep close contact with the trade unions and redress grievances of the workers through trade unions
Trade union should maintain contact with workers and get their grievances redressed through the unions ABSENTEEISM
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II Meaning of Absenteeism: Absenteeism means the failure of the worker to report for work when he is scheduled to work. A worker is considered scheduled to work when the employer has work available for him and the worker is aware of it .absence on account of strike ,lockout, layoff or suspension is not taken into account. Definitions: Prof. Ankalikr defines absenteeism as, unauthorized absence of the worker from his job Prof. K.G Fenelon define it as the absence of worker when work is available Causes of Absenteeism: 1. Lack of interest or a feeling of responsibility and worth whileness. 2. After pay day sickness and hangovers contribute to absenteeism. 3. Attitude of mind caused by environmental and sociological factor may condition some to develop a feeling of irresponsibility about going to work. 4. Industrial accident and occupational disease bring about absenteeism. 5. Poor production and material control can result absenteeism unless the flow of work between departments is balanced and continuous. 6. Sickness is high on the list of causes of absenteeism. 7. Some other factor like bad weather, lack of transportation, search for another job, personal business and friend visiting from distance locations. Measurement of Absenteeism The absenteeism rate is defined as the total man shifts lost because of absences as a percents of the total number of man shits scheduled Thus we can estimate the rate of absenteeism in the following manner. Rate of absenteeism Effects of Absenteeism: 1. It directly or indirectly reduces the amount of production 2. Distinct loss to workers because the irregularity in attendance reduces their income, when no work no pay is the general rule. 3. Employer is suffered as both discipline and efficiency suffered Control of Absenteeism: Absenteeism is the serious problem for the management because its additional expenses. Hence, the measures are taking by the management for the control of absenteeism: 1. The chronic offenders may be disciplined by layoffs, discharges and loss of promotion and other privileges. 2. The new employees should be induced in such a way that there critical attitude is reduced as quickly as possible to avoid absenteeism from this source. 3. The chronic offenders may be ridiculed by publicizing their names. 4. All absent workers should be interviewed upon their return to determine causes and to impress upon their seriousness of their absence. 5. The management should properly analyze the various causes of absenteeism and classify the chronic offenders. WORKERS PARTICIPATION IN MANAGEMENT Industry is now considered as a social institution = No of total man shifts lots No of total shifts scheduled
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II Both the management and the employees have equal interest in the survival and the prosperity of the industry Concept of participation is based on the concept of co-partnership and co-operation Moreover the Growth of professionalism in the industry, Advent of democracy, Development of the principles of social justice, Transformation of traditional labour management relations
Have added new dimensions to the concept of participative management
Forms Of Participation 1. Participation Through Ownership: By making workers shareholders of the company It has a distinct advantage of making the workers more committed to the job
2. Participation through complete control: Workers require complete control of the management through elected board It gives complete control to workers to manage directly all aspects of industries through their representatives Industrial disputes disappears when the workers develop loyalty to the organization Trade unions welcome this type of participation But it is not an answer to the problem of participation because the workers do not evince (having quality of strength) interest in management decisions
3. Participation through staff and work councils: The councils have different functions in the management of enterprise, ranging from shop floor to the board level They are a right step in the direction of industrial democracy But they are not successful because of the fear expressed by the trade union leaders that being mainly workers body staff councils may erode (destroying) their powers and prestige
4. Participation through Joint Councils and Committees:-
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II Joint councils are bodies comprising representatives of employers and employee Consultative in nature and loose type of participation because their suggestions are not binding on the management These councils have no useful purpose Only provides a platform to employers and employees to suggest
5. Participation through Collective Bargaining
6. Participation through Suggestion schemes Employees views on such matters as o o o o Machine utilization Waste Management Energy Conservation Safety Measures
are invited and reward is given for the best suggestion. This procedure enables the management to arouse and maintain the employees interest in the problems of their concerned and its management
7. Participation through quality circles: Quality circles are created with producing quick, concrete and impressive results when correctly implemented Because the programme is voluntary employees and unions generally do not view them as another cost control effort. Moreover, circle members enhance their chances of promotion to supervisory positions
8. Participation through Total Quality Management: TQM is defined as the Management approach of an organization centered on quality based on participation of all its members and aiming at long term success through customer satisfaction and benefits to all the members of the organization and to society. TQM is an overall organizational strategy that is formulated at the top management level and then is defused throughout the organization. Everyone is involved from CEO to the lowest paid worker.
9. Participation through empowered team: Empowering means passing on authority and responsibility
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II Empowerment occurs when power goes to employees who then experience a sense of ownership and control, over their jobs. Example:- At Reliance Divisional Heads run their divisions like Managing Directors run their companies
10. Financial Participation: It is different from other forms of employees participation as it is less likely to involve employees in consultation or decisional processes. The general purpose of financial participation is to enhance employees commitment to organization by linking the performance of the firm to that of the employees. Employees are motivated as they have a financial stake in the company by having a share of profits
Objectives of Workers Participation in Management 1. Promotes mutual understanding 2. Sense of belongingness among workers 3. Establishes a good communication system 4. Its prevents exploitation of workers 5. It implements change whenever and wherever necessary and handles the resistance to change 6. Workers get a sense of involvement 7. Increases commitment in the employees 8. Organization flourishes when their exists there exists a harmony in organization 9. Enhances industrial democracy 10. Increases productivity 11. Development of individuals
Levels or Methods of Workers Participation in Management 1. Information Participation:2. Consultative Participation:3. Associative Participation:Balance sheet, Production, Turn over, Profits earned, Economic Condition etc. Welfare programmes, Methods of work and safety etc. Moral obligation to accept and implement the unanimous decisions of the council.
4. Administrative Participation:-Welfare measures, Safety operation, Apprenticeship schemes, Schedules of working hours, Breaks and holidays, Payment of rewards.
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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II 5. Decisive Participation:Production, Welfare, Individual grievances are excluded from its scope.\
Limitations of Participation 1. Technological and Organizational Complexity 2. Lack of awareness in employees 3. Secrecy of participative situations 4. Feudalistic Concept: - When the workers have the feeling that they are born to serve. 5. Involvement of the Trade Unions in political activities 6. Unwilling of the employers. -
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Ir Unit 2

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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II EVOLUTION OF IR IN INDIA (Unit-I) or EVOLUTION OF TRADE UNIONS IN INDIA

Rupali Singh, Asst Professor, DoBM, HIMCS

Rupali Singh, Asst Professor, DoBM, HIMCS

Rupali Singh, Asst Professor, DoBM, HIMCS

Rupali Singh, Asst Professor, DoBM, HIMCS

Rupali Singh, Asst Professor, DoBM, HIMCS

Causes of Disciplinary Violations

Rupali Singh, Asst Professor, DoBM, HIMCS

Rupali Singh, Asst Professor, DoBM, HIMCS

Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II

Rupali Singh, Asst Professor, DoBM, HIMCS

10. 11. 12.

Rupali Singh, Asst Professor, DoBM, HIMCS

Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments UNIT-II

Rupali Singh, Asst Professor, DoBM, HIMCS

Rupali Singh, Asst Professor, DoBM, HIMCS

Rupali Singh, Asst Professor, DoBM, HIMCS

Have added new dimensions to the concept of participative management

4. Participation through Joint Councils and Committees:-

Rupali Singh, Asst Professor, DoBM, HIMCS

5. Participation through Collective Bargaining

Rupali Singh, Asst Professor, DoBM, HIMCS

Rupali Singh, Asst Professor, DoBM, HIMCS

Rupali Singh, Asst Professor, DoBM, HIMCS

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