INDUSTRIAL RELATIONS MEANING The concept of industrial relations means the relationship between employees and management in the

day-to-day working of an industry. But the concept has a wide meaning. When taken in the wider sense, industrial relations is a set of functional independence involving historical, economic, social, psychological, demographic, technological, occupational, political and legal variables. According to Dale Yoder, Industrial Relations are a whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of an industry. According to the Industrial Labour Organisation (ILO), Industrial Relations deal With either the relationship between the state and employers and workers organizations or the relation between the occupational organizations themselves. The concept of industrial relations has been extended to denote the relations of the state with employers, workers, and their organisations. The subject therefore includes industrial relations and joint consultations between employers and work people at their work place, collective relations between employers and their organizations and trade union and part played by the State in regulating these relations. FEATURES Industrial relations are mainly the relations between employees and the employer. Industrial relations are the outcome of the practice of human resource management and employment relations. These relations emphasis on accommodating other partys interest, values and needs. Parties develop skills of adjusting to and cooperating with each other. Industrial relations are governed by the system of rules and regulations concerning work place and working community. The main purpose is to maintain harmonious relations between employees and employer by solving their problems though grievance procedure and collective bargaining. The government and shapes industrial relations though industrial relations policies, rules, agreements, mediation, awards, acts etc. Trade Union is another important institution in the industrial relations. Trade union influence and shape the industrial relations through collective Bargaining. Industrial relations develop the skills and methods of adjusting to and cooperating with each other. The Government-involves to shape the industrial relations through laws, rules, agreements, awards etc. The important factors of industrial relations are: employees and their organizations, employer and their associations and Government. FACTORS OF INDUSTRIAL RELATIONS Industrial relations are influenced by various factors, viz., institutional factors, economic factors and technological factors. Prof T M KUTHUBUDEEN MBA Dept MSCAS Page 1

Institutional Factors: These factors include government policy, labour legislations, voluntary courts, collective agreement, employee courts, employers federations, social institutions like community, caste, joint family, creed, system of beliefs, attitudes of works, system of power status etc. Economic Factors: These factors include economic organization, like capitalist, communist mixed etc., the structure of labour force, demand for supply of labour force etc. Technological Factors: These factors include mechanization, automation, rationalization, and computerization. Political Factors: These factors include political system in the country, political parties and their ideologies, their growth, mode of achievement of their policies, involvement in trade unions etc. Social and Cultural Factors: These factors include population, religion, customs and tradition of people, race ethnic groups, cultures of various groups of people etc. Governmental Factors: These factors include Governmental policies like industrial policy, economic policy, and labour policy, export policy etc. THREE ACTORS OF INDUSTRIAL RELATIONS Three major participants or actors of industrial relations, viz., workers and their organizations, management and government are identified. Workers and their Organisations: The total worker plays an important role in industrial relations. The total worker includes working age, educational background, family background, psychological factors, social background, culture, skills, attitude towards other workers etc. workers organizations prominently known as trade unions play their role more prominently in trade unions. The main purpose of trade union is to protect the workers economic interest through collective bargaining and by bringing pressure on management through economic and political tactics. Trade union factors include leadership, finances, activities etc. Employers and their organization: Employer is a crucial factor in industrial relations. He employees the worker, pays the wages and various allowances, regulates the working relations through various rules, regulations and by enforcing labour laws. He expects the worker to follow the rules, regulations and laws. He further expects them to contribute their resources to the maximum. The difference between the demands of worker and employer results in industrial conflicts. Normally employers have higher bargaining power than workers. But their bargaining power is undermined when compared that to trade unions. Employers from their organizations to equate (or excel) their bargaining power with that of trade unions. These organisations protect the interest of the employer by pressuring the trade unions and government. Government: Government plays a balancing role as a custodian of the nation. Governments exerts its influence on industrial relations through its labour policy, Prof T M KUTHUBUDEEN MBA Dept MSCAS Page 2

industrial relations policy, implementing labour laws, the process of conciliation and adjudication by playing the role of both employees organisation and employers organisation. OBJECTIVES OF INDUSTRIAL RELATIONS The primary objective of industrial relations is to maintain congenial relations between employees and employer. The other objectives are: To promote and develop congenial labour management relations; To enhance the economic status of the worker by improving wages, benefits and by helping in evolving sound budget; To regulate the production by minimizing industrial conflicts through state control; To socialize industries by making the government as an employer; To provide an opportunity to the workers to have a say in the management and decisionmaking; To improves workers strength with a view to solve their problems through mutual negotiations and consultation with the management; To encourage and develop trade unions in order to improve the workers strength; To avoid industrial conflict and their consequences; To extend and maintain industrial democracy. FUNCTIONS OF INDUSTRIAL RELATIONS Functions of industrial relations include: Communication is to be established between workers and the management in order to bridge the traditional gulf between the two. To establish a rapport between managers and the managed. To ensure creative contribution of trade unions to avoid industrial conflicts, to safeguard the interest of the workers on the one hand and the management on the other hand, to avoid unhealthy, unethical atmosphere in an industry. To lay down such considerations which may promote understanding, creativity and cooperativeness to raise industrial productivity, to ensure better workers participation. Good labour-management relations depend on employer and trade unions capacity to deal with their mutual problems freely, independently and responsibly. The trade unions and the employers and their organisation should be interested in resolving their problems through collective bargaining and if necessary with the assistance of proper government agency. Workers and employers organizations should be desirous of associating with government agencies taking into considerations with general, social, public and economic measures affecting employers and workers relations.

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MBA Dept

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CONDITIONS FOR CONGENIAL INDUSTRIAL RELATIONS The establishment of good industrial relations depends on the constructive attitude on the part of both the union and the management. The constructive attitude in its turn depends on all the basic policies and procedures laid down in any organization for the promotion of healthy industrial relations. It depends on the ability of the employers and trade union to deal with their mutual problems freely, independently with responsibility. They should have their faith in collective bargaining rather than in collective action. It is very difficult to promote and to maintain sound industrial relations. Certain conditions should exist for the maintenance of harmonious industrial relations. They are: Existence of Strong, well-Organised and Democratic Employees Unions : Industrial relations will be sound only when the bargaining power of the employees unions is equal to that of management. A strong trade union can protect the employees interest relating to wages, benefits, job security etc. Existence of Sound and Organised Employers Unions : These associations are helpful for the promotion and the maintenance of uniform personnel policies among various organizations and to protect the interest of weak employers. Spirit of Collective Bargaining and willingness to Resort to Voluntary Organisation: The relationship between employee and the employer will be congenial only when the differences between them are settled through mutual negotiation and consultation rather than through the intervention of the third party. Collective bargaining is a process through which employee issues are settled through mutual discussions and negotiations through give and take approach. If the issues are not settled through collective bargaining they should be referred to voluntary arbitration but not to adjudication in order to maintain congenial relations. Maintenance of Industrial peace: Permanent industrial peace in an organization is most essential which can be ensured through the following measures: Machinery for prevention and settlement of industrial disputes. It included legislative and non-legislative measures. Preventive measures include works committees, standing orders, welfare officers, shop councils, joint councils and joint management councils. Settlement methods include voluntary arbitration, conciliation and adjudication. Government should be provided with the authority of settling the industrial disputes when they are settled between the two parties and also by voluntary arbitration. Provision for the bipartite and tripartite committees in order to evolve personnel policies, code of conduct, code of discipline etc. Provision for the various committees to implement and evaluate the collective bargaining agreements, court orders and judgements, awards of the voluntary arbitration etc. APPROACHES TO INDUSTRIAL RELATIONS Industrial relations issues are complex and multifarious. They are the results of social, cultural, economic, political, and governmental factors. An economist interprets industrial conflict in terms of impersonal market forces, a psychologist interprets in terms Prof T M KUTHUBUDEEN MBA Dept MSCAS Page 4

of impersonal market forces, a psychologist interprets in terms of individual goals, and motives etc. similarly, a sociologist interprets from his own viewpoint. But the study of industrial relations should be from the multidisciplinary approach. Psychological Approach to Industrial Relations : According to psychologists, issues of industrial relations have their origin in the differences in the perceptions of management, unions and rank and file workers. The perpetual differences arise due to differences in personalities, attitudes, etc. Similarly factors like motivation, leadership, group goals versus individual goals etc., are responsible for industrial conflicts. Sociological Approach to Industrial Relations: Industry is a social world in miniature. Organisations are communities of individual and groups with differing personalities, educational and family backgrounds, emotions, sentiments etc. These differences in individuals create problems of conflict and competition among the members of individual society. Human Relations Approach to Industrial Relations : Human resources are made up of living beings but not machines. They need freedom of speech, of thought, of expression, of movement and of control over the timings. This approach implies that the relationship between employee and employer as between two human beings. The term human relations include the relationship during the out of employment situations. Gandhian Approach to Industrial Relations : Mahatma Gandhis views on industrial relations are based on his fundamental principles of truth, non violence and non possession. Under the principle pf non-violence and truth, Gandhi meant a peaceful coexistence of capital and labour. Trusteeship implies cooperation between capital and labour. Gandhi advocated the following rules to resolve industrial conflicts: Workers should seek redressal of reasonable demands through collective action. Trade unions should decide to go on strike talking ballot authority from all workers and remain peaceful and use non- violent methods. Workers should avoid strikes to the possible extent. Strikes should be resorted to only as a last report. Workers should avoid formation of unions in philanthropical organisation. Workers should take recourse to voluntary arbitration to the possible extent where direct settlement failed. Factors Contributing for Harmonious Industrial Relations There is a full acceptance by management of the collective bargaining process and of unionism as an institution. The company considers a strong union as an asset to the management. The union fully accepts private ownership and operations of the industry; it recognizes that the welfare of its members depends upon the successful operation of the business. The union is strong, responsible and democratic. The company stays out of the internal affairs of the union; it does not seek to alienate the workers allegiance to heir union. Mutual trust and confidence exists between the parties. There have been no serious ideological incompatibilities.

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Neither party to bargaining adopts legalistic approach to the solution of problems of relationship. Negotiations are problem-centered. More time is spent on the day-to-day problems than on defining abstract principles. There are widespread union-management consultations and highly developed information sharing. Grievances are settled promptly in the local plant, wherever possible. There is flexibility and informality within the procedure. The environmental factors do not by themselves cause peace but they create conditions to develop it. The attitudes and the policies of the parties, the personality of their leaders and their techniques, bring about good relations.

Industrial Disputes INTRODUCTION Modern industrialization has not been an unmixed blessing. It has created a yawning gulf between management and labour because of the absence of workers ownership of the means of production. Power has been concentrated in the hands of few entrepreneurs, while a majority has been relegated to the insignificant position of mere wage earners. The workers have now come to realize that most of their demands can be satisfied if they resort to concerted and collective action; while the employers are aware of the fact that they can resist these demands. This denial or refusal to meet their genuine demands has often lead to dissatisfaction on the part of the workers, to their distress, and even to violent activities on their part, which has hindered production and harmed both the workers and the employers. According to Patterson, industrial strife constitute militant and organised protests against existing industrial conditions. They are symptoms of industrial unrest in the same way that boils are a symptom of a disordered body. The Industrial Disputes Act, 1947, defines an industrial dispute as any dispute or difference between employers and employees, which is connected with the employment, or non-employment, or the terms of employment or with the conditions of work of any person. FORMS OF DISPUTES Industrial disputes may take the form of strikes, go-slow tactics, token strikes, sympathetic strikes, pen-down strikes, hunger strikes, bandhs, gheraos and lockouts. A strike is a stoppage of work initiated or supported by a trade union, when a to resolve a grievance or constrain him to accept such terms and conditions of service as the employees want to enjoy. If, however, an employer closes down his factory or place where his workers are employed, or if he refuses to continue in his employ a person or persons because he Prof T M KUTHUBUDEEN MBA Dept MSCAS Page 6

wants to force them to agree to his terms and conditions of service during the pendency of a dispute, resulting situation is a lockout. Procedures for avoiding strikes, lockouts and other forms of coercive action in connection with industrial disputes between trade unions and employers are generally laid down in the form of a clause or clauses in an agreement between the two. At the same time, it is also laid down that there shall be no stoppage of work and no coercive act on the part of either party to a dispute till the procedure outlined in the agreement have been gone through, and the two parties have been unable to come to a compromise or reach a settlement. TYPES OF DISPUTES Disputes, according to the code of industrial relations introduced in the United Kingdom in 1972, are of two kinds: (a) Disputes of Right, which relate to the application or interpretation of an existing agreement or contract of employment; and Disputes of interest, which relate to claims by employees or proposals by a management about the terms and conditions of employment. According to the industrial disputes act, 1947, and the mainly judicial decisions which have been handed down by courts and tribunals, industrial disputes may be raised on any one of the following issues: Fairness of the standing orders; Retrenchment of workers following by the closing down of a factory, lay-offs, discharge or dismissal, reinstatement of dismissed employees, and compensation for them; Benefits of an award denied to a worker; non-payment of personal allowance to seasonal employees; the demand of employees for medical relief for their parents; Wages, fixation wages, and minimum rates, modes of payment, and the right of an employee to choose one of the awards on wages have been given; Lockout and claim for damages by an employer because employee resorted to illegal strike; Payment of hours, gratuity, provident fund, pension and traveling allowance; Disputes between rival unions; and Disputes between employees and employers. CAUSES OF INDUSTRIAL DISPUTES (A) Non-Industrial Factors: Industrial relations may be harmonious or strained and acrimonious. In the latter case, there are many causes which are rooted in historical, political and socio-economic factors, and in the attitudes of workers and their employers. Some of the causes of a dispute may be:

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An industrial matter relating to employment, work, wages, hour of work, privileges, the rights and obligations of employees and employers; the mode, terms and conditions of employment, including matters pertaining to Dismissal or non- employment of any person;Registered agreement, settlement or award; andDemarcation of the functions of an employee; An industrial dispute which contains any difference which has been fairly defined and is of real substance; that is a matter in which both parties are directly and substantially interested; or which s a grievance on the part of the worker which the employer is in a position to redress; or which is such as the parties are capable of settling between themselves or referring it for adjudication; Disputes often arise because of: (a) The rapidly increasing population which has no opportunities for gainful employment; there is, therefore, no improvement in the standard of living of employees who put forward demands for higher wages which, if not conceded, often lead to strained industrial relations and strikes; (b) Rising unemployment. There was a backlog of 20 million unemployed at the end of the fourth five-year plan and of 30 million by the end of the fifth five-year plan. Often the unemployment resulted form the implementation of the rationalism schemes and installation of new machines on which fewer persons would be employed. The galloping prices of essential commodities, their shortages and or non- avaibility, all these erode the value of money, as a result of which the real wages of the workers go down. They become dissatisfied, and demand higher wages; The attitude and temperament of industrial workers have changed because of their education, the growth of public opinion and the legislation enacted for their benefit. They are, therefore, very conscious of their rights, and will not put up with any injustice or wrong done to them; Trade unions have often failed to safeguard the interest of the workers. The reasons for this state of affairs are: Rivalry among, and a multiplicity of, trade unions have destroyed the solidarity of the working class; Non-recognition of some trade unions as bargaining agents of their members; Compulsory adjudication has made trade unions seem redundant, for the wages and the working conditions of industrial employees can now be determined by courts, tribunals and wage boards; Trade unions generally do not bother about any aspect of the lives of industrial labour except their wages; Trade unions leaders who are themselves industrial workers have become an eye-sore; Trade unions generally function on the basis of the caste, language, or communal considerations, which divide rather than unify industrial labour; Trade unions are unstable and ephemeral. (B) Managements Attitudes to labour: Managements generally are not willing to talk over any dispute with their employees or their representatives or refer it to arbitration even when trade unions want them to do so.

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A managements unwillingness to recognize a particular trade union and the dilatory tactics to which it resorts while verifying the representative character of any trade union have been a very fruitful source of industrial strife. Even when employers have recognized representatives trade unions, they do not, in a number of cases, delegate enough authority to their officials to negotitiate with their workers, even though the representatives of labour are willing to commit themselves to a particular settlement. Some of the other cases are: The absence of any suitable grievance redressal procedure, as a result of which grievances go on accumulating and create a climate of unrest among workers. When, during negotiations for the settlement of a dispute the representatives of employers unnecessarily and unjustifiably take the side of the management, tensions are created, which often leads to strikes, go-slow tactics or lockouts. The managements insistence that they alone are responsible for recruitment, promotion, transfer, merit awards, etc. and that they need not consult their employees in regard to any of these matters, generally annoys the workers, who become the un-co- operative and un helpful, and often resort to go-slow tactics. As a result, tensions build up between the two parties. The services and benefits offered by a management to its employees do promote harmonious employer-employee relations. But a large number of managements have not taken any steps to provide these benefits and services for their workers. (C) Government Machinery: The machinery provided by the government for the resolution of the industrial conflicts is often very inadequate. For example: The governments conciliation machinery has settled a very negotiable number of disputes because both employers and employees have very little confidence in it; because both have become litigation-minded; because it is inadequate, for the number of disputes referred to its very large and the personnel dealings with them is hopelessly inadequate, particularly because, in addition to labour disputes, it is called upon to see to it that labour laws are properly implemented. Again, trade unions are generally affiliated to some major political party.ch political party, therefore, somehow engineers strikes, gheraos and bandhs to demonstrate its political strength. Invariably, the political party, which is in power, favours that trade union organisation which is affiliated to it. Result: labour conflicts and disputes. Workers Unionism & Industrial Relations Origin & Development In India, as in most other countries, has been the natural outcome of the modern factory system.

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MBA Dept

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During the early period of industrial development, efforts towards organizing the workers for their welfare were made largely by social workers, philanthropists and other religious leaders, mostly on humanitarian grounds. In 1875, a few social reformers under the leaderships of Sorabjee Shapurjee Bengalee, started an agitation in Bombay in order to draw the attention of the government to the appalling conditions of workers in factories, especially those of women and children, and to appeal to the authorities. The outbreak of the First World War saw the beginning of the labour movement in the modern sense of the term. The new upsurge of national movement in our country, the Russian Revolution of 1917, and the establishment of the international Labour organization(1919) were other important factors which contributed to the growth of the trade union movement during the period. Between 1919 and 1923, scores of union came into existence, At Ahemdabad, under the spinners union and weavers union known as the Ahemdabad Textile Labour Association (Majur Mahajan). The year 1920 was of crucial importance in the history of the Indian trade union movement. The minimum requirement for central recognition of trade union is that the union should have a membership of at least five lakhs and should be spread over in four states and industries. Structure & Finance In India, in the earliest stages, the general pattern of union was the plant level union. Industry wise or area-wise union have been a later development. Industrial unions have been organized mainly as a result of the need felt platform. Trade unions covering all workers, irrespective of their craft or category, either at the plant to the industrial level, have become common in our country. In general, in the industrial sector, unions are mostly organized at the enterprise level while in the service sector; there are industry-wide unions as, for example, railways, banking, insurance or government service. The degree of unionism varies widely fro industry to industry. The mushroom growth of unions was not accompanied by a proportionate growth in the total membership. As a consequence, the total membership has been fragmented among too many unions leading to a significant decline in the average membership of individual unions. The fluctuating membership has a damaging impact on the financial state of unions. Moreover, it is a major bottleneck in attaining a desirable degree of organizational effectiveness and viability. As the N.C.L. observes, an important factor limiting the weakness in most unions, poor finances have been the result of inadequate membership strength. This, in turn, can be traced to small size of units. In a majority of unions, the rate of contribution required of members is also small. With a relatively low rate of unionization, total funds collected are smallthe general picture of finances of unions is disappointing.

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MBA Dept

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Functions The primary function of a trade union is to protect the basic interests and needs of the members by striving to better the terms and conditions of employment, secure for workers better wages and to improve their working and living conditions. Welfare activities; organizing mutual benefits/ cooperative/ employment assistance/ games/ libraries/ cultural & recreational programmes. To secure for workers fair wages To sage guard securities of tenure. To improve conditions of service. To enlarge opportunities for promotion & training. To improve working & living conditions. To provide for education Facilities. To cooperate in and facilitate technological advancement by broadening the understanding of workers on its underling issues. To promote identity of interest of workers with their industry. To offer responsive cooperation in improving levels of production & productivity, discipline & standard of quality. To promote individual & collective welfare. Objectives of Trade Unions In modern times as follows: To replace managerial dictatorship by workers democracy and to bring about a change in the social order. The overthrow capitalism and bring about a revolutionary and fundamental change in the political order. Organization of all eligible members under one platform. To represent the workers to management in case of disputes or differences. To enter in collective Bargaining and other agreements on behalf of workers. To represent workers on various participative functions. To undertake various activities for the welfare of its members. To provide benefit to members in case of sickness, old age, trade disputes, unemployment, litigation and also provide funeral expenses. Further Nance of political objectives. To participate in the work of any other association that furthers the activities of trade unions and its members. To arrange the necessary activities for the social and morale up liftman of workers. To arrange for printing and publishing facilities for the benefits of workers. State Legislations National Commission on labour The Maharashtra recognition of trade unions & prevention of unfair trade practices of Act 1971 Bombay Industrial Act 1947 Madhya Pradesh Industrial relations Act 1960

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MBA Dept

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Recognition One of the burning problems in industrial relations facing our trade unions, government and employers for a pretty long tine is to evolve a satisfactory and commonly acceptable way to settle the competitive claims of rival unions for being declared as bargaining agents. A trade union may be stable and strong but until it is given recognition legally or voluntarily-it will hardly have any impact. In fact, collective bargaining cannot exist or begin, until the union is recognized by the management. As there is no central law for compulsory recognition of trade unions, the employers are not bound to recognize any union gets recognition, rival unions step in. Even if an employer seeks to recognize a union, he finds himself in a dilemma as to which one to recognise and so is generally guided by his own whims and the political affiliations of the union. This makes collective bargaining very difficult. What is done by the union is sought to be undone by the other. No sooner than the ink is dry on an agreement, fresh issues are raised by the rival unions. The workers also do not know which union to join, because they are not sure which on represents their collective interests. Therefore, some workers choose to become members of more than one union. Some of the state acts like the Bombay Industrial Relations Act, 1946, the Madhya Pradesh Industrial Relations Act, 1960, and the industrial Disputes (Rajasthan Amendment) Act, 1958, providing for the registration of unions as representative unions subject to their fulfilling certain conditions. Some of the rights of a Representative Union under the Act are as follows: 1-This has the first preference to appear or act in any proceeding under the Act as the representative of employees in an industry in any local area. 2-No individual is to be permitted to appear in any in an proceedings wherein a representative Union has appeared as the representative of employees. Nor can a labour officer appear in any proceedings in which the employees who are parties thereto are represented by a Representative Union. 3-Any employer and a Representative Union or any other registered union may submit a dispute for arbitration. 4- This is entitled to make a special application to the labour court to hold an enquiry as to whether a strike, lock-out., is illegal. 5-Management cannot dismiss, discharge or reduce any employee of such a union or punish him in any other manner merely because he is an officer or member of the registered union or a union which has applied for recognition under the Act. 6-In the case of agreement, award etc., in which Representative Union is a party, the state Government may, after giving the parties affected an opportunity of being heard, direct heard, direct that such agreements, etc., shall be binding upon such other employers or employees as may be specified.

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MBA Dept

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The Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 is a comprehensive piece of legislation since the passing of the Bombay Industrial Relations Act and the industrial Disputes Act of 1947. This Act came into force from 8th September 1975. It provides for (1)-Recognition of representative union which would act as an exclusive bargaining agent for an undertaking, (2)prevention of unfair labour practices on the part of employers and trade unions. This act covers industries falling within the purview o the employers and trade unions. This act covers industries falling Disputes Act. The provisions relating to the recognition of unions do not, however, apply to he industries to which the provisions of the B.I.R. Act for the time being apply. The act provides for recognition of unions for an undertaking employing 50 or more employees on the any day in the preceding twelve months. The union having a minimum paid membership of 30 percent on the total number of employees employed in an undertaking for 6 calendar months preceding the months in which an application for a recognition is made, may apply to the Industrial Court for registration as a recognized union. The calendar for recognition is granted by the Industrial Court after hearing all the interested parties. The need for suitable provisions for recognition of unions was stressed in the second Five-Year Plan. Because of the desire to go slow on legislation, recognition was provided for, on a voluntary basis, under the Code of Discipline adopted at the 6th Session of the Indian Labour Conference held at Nainital in May, 1958. It laid down certain for the recognition of trade unions such as: 1-Where there is more than one union, a union claiming recognition should have been functioning for at least one year after registration. Where there is only one union, this condition would not apply. 2-The membership of the union should cover at least 15th percent of workers in the establishment concerned. Membership should be counted only of those who had paid their subscription for at least three months during the period of 6 months immediately preceding the reckoning; 3-A union may claim to be recognized as representative union for an industry in a local area if it has a membership of at least 25 percent of the workers of that industry in that area; 4-When there are several unions in an industry or establishment, the one with the largest membership should be recognized. 5-When a union has been recognized there should be no change in its position for a period of 2 year. 6-A representative union for an industry in an area should have the right to represent the workers in all the establishments in the industry, but if a union of workers in a particular establishment has a membership of 50percenty or more of the workers of that establishment, it should have the right to deal with matters of purely local interests.

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MBA Dept

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Workers Participation In Unions. Participation Refers to mental & emotional involvement of Workers in unions activities & it is more behaviorist rather than an attitudinal concept. Indicators of participations 1-participation in unions elections 2-membership enrolment & subscription 3-membership on union committees 4-Attending unions meetings 5-Involvement in union's welfare & social responsibility & functions. Factors influencing WP in Unions 1-The type of leadership is available in unions 2-the history of labour management relations in a plant 3-the age, experience, skills educations, caste, employment of workers. 4- the style of supervision, motivation, morale, wage structure in the industry. 5-Welfare measures & fringe benefits available to workers. Advantages of W.P in Unions 1-W.P in unions activities gives solidarity & strength to the unions. 2-It helps in developing leadership from the rank & ensures a strong bargaining power. 3- it checks the tendency on the part of selected leaders to become all powerful by a vigilant & participative membership. 4-It is essential not only from the viewpoint of betterment of unions leaders but for the very success of trade unionism. White collar Unionism History & Growth Started with the end of second world war. Activities boosted in the post war decades when the employees of central govt. dept., railways, post & telegraphs, defense, banking & insurance companies started organizing their unions. Recent outstanding developments is the emergence of managerial or officers association in the industrial sectors commonly called as associations or Guilds. Factors responsible for White collar unionism Substantial increase in white collar workers. Erosion of the social & occupational status, not receiving the same kind of respect & special treatment from the employees. Narrowing down of distance of income of blue collar workers & white collar workers due to bargaining activities of blue collar workers. Proximity of white collar employees of well unionize blue collar workers. Recognition of white collar unionism in India Unionization of white collar employees especially those belonging to the service & public sector has provoked varied reactions among employers, Govt. and general public. Prof T M KUTHUBUDEEN MBA Dept MSCAS Page 14

General tendency on the part of the top management not to recognize the officers associations. Situation demands to change the conservative & traditional outlook. Employers Associations Effectiveness of any industrial relations system whether based on legislation or voluntary arrangements, depends to a great extent on the attitude that unions and employers organizations adopt towards each other. The intention in covering employers organizations under the Trade unions Act, 1926 was to place both workers and employers organizations on a par in matters of rights and responsibilities. the principal of giving equal representation to capital and labour on all consultative bodies like the Indian Labour Conference, Standing Labour Committee and industrial committees recognizes this basic tenet in the employer- employee relationship. Origin & Growth The origin and development of employers organizations in India can broadly be classified in three distinct phases: 1-The period prior to 1930; 2-The period between 1931 and 1946 3-the post- Independence period. Each phase reveals their structural & functional characteristics, and also varying in them in accordance with contemporary economic, social and political developments. The pre-1930 period was characterized mainly by the formation of certain associations such as the Bombay Miliowners Accociations, the Bengal Millowners Associations, and the Ahmedabad chambers of commerce and industrial associations for dealing with a variety of problems connected with industry. All- India Organizations of Industrial Employers (AIOIE) was formed in 1941. Employers organizations in India have a three- tier structure, such as local associations, industrial associations and all- India federations. Of the three, the local associations which operate mainly through the chambers of commerce cover all industries in an area. Their activities in the labour field are comparatively less expensive. The industrial associations are the general pattern of organizations of employers in India. They are formed at the area/ regional level as also at the all- India level, and are generally affiliated to the central industrial organizations at the apex. Individual employers are also admitted to the apex. The main reason for the industry-wise development of associations is the common problems confronting each industry. At the national level, there are federations, namely, AIOE, EFI and AIMO which have been given representation on different tripartite labour consultative bodies. The AIMO is an omnibus multi-purpose body which represents the voice of small and medium size employers, but its membership is not necessarily restricted to them. All the three federations have special committees to deal with specific problems. Besides, they operate through their regional committees and maintain close links with the restrictive chambers as well.

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Aims & Objectives The main object for which the EFI has been established are embodied in its constitution. 1- to promote and project the legitimate interests of employers engaged in industry, trade and commerce; 2-to maintain harmonious relations between management and labour and to intimate and support all well-considered schemes that would increase productivity and at the same time, give labour a fair share of the increased return; 3-To collect and disseminate information affecting employers and to advise members on their employer/ employee relations and other ancillary problems. The objects of the AIOE inter alia are: 1- to take all steps which may be necessary for promoting, supporting or opposing legislative and other measures affecting ot likely to affect directly or indirectly, industries in general, or particular industries; 2- to nominate delegates and advisers etc. to represent the employers of India at the International Labour Conference, United Nations Organization, International Chamber of Commerce and other conferences and committees affecting the interests of trade, commerce and industries, whether as employers or otherwise; 3-To promote and support all well-considered schemes for the general uplift of labour and to take all possible steps to established harmonious relations between capital and labour. The objects of AIMO are: 1-To help bring about the rapid industrialization of the country through sound and progressive economic policies; 2- to help in increasing the aggregate wealth of India; 3- to raise the standard of living of the people of India by utilizing to the fullest possible to play a positive role in relieving the pressure of polulation on land. Functions Communication Advisory Functions Educational Efforts Representational Functions Functions of Social Responsibilities Development of trade unions in India The origin of Trade Union movement can be traced back to a very early date to the time when villages had punchayats and guilds for settlings disputes between the masters and their members. The panchayats prescribed the code of conduct, which was rigidly followed by its members. Trade Unions, however, originated in the first quarter of the present century although the groundwork was laid during the last quarter of the 19th century.

Prof T M KUTHUBUDEEN

MBA Dept

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For the purpose of studying history of development of trade unions in India, time period can be divided into various phases, which are as follows: A-Social Welfare Period(1875 to 1918) This period witnessed growth of industries as well exploitation of women and child labour and unhealthy work conditions. Conditions were taking a bad shape as days passed by but there was no sign of opposition from the side of workers. In addition to it there was no attempt at obtaining redress through concerted effort. The labour movement in India began around 1850. Few enactments which marked the beginning of trade unions movement in India are: 1-The factory Commission in 1875 2-The factories Act, 1881 3- The Second Bombay Factory Commission in 1884. The labour movement in India was commenced by Bombay Millhands association in 1890. The purpose of this movement was to provide a platform to workers where there grievances could be foreword to management and to draw public attention to the cause of labour. This movement was followed by formation of various groups which were running in the similar lines: 1-The Amalgamated society of Railway servants of India. 2-The Bombay postal unions. 3-The social service league 4-the printers union of calcutta 5-Promote welfare activities 6-Spread literacy among the factory workers and Redress grievances thriugh constitutional methods. These associations were not exactly Trade Unions but they carved the way for formation of trade unions. B-Early Trade Unions Period (1918 to 1924): The year 1918 holds significance for Indian Trade Unions Movements. It was the year when leadership of trade unions passed from hands of social workers to the hands of politicians. By this time various unions were formed, some of them are: 1-Indian Seamens unions, 2-the Punjab press employees Association, 3-The madras textile labour unions, It was estimated that between 2.5 and 5.00 lakh were organized into unions by this time. Various political; leaders were also actively involved in the activities of trade unions, some key figures are C.R Das, Moti Lal Nehru, J.L Nehru, S.C Bose. However, unions formed suffered from various limitations, they had little continuity and there major interests lied on wage increment.

Prof T M KUTHUBUDEEN

MBA Dept

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C-Left Wing Unionism Period(1924-1934): This period saw tremendous growth of trade unions. But the three major Trade Unions which emerged strongly during this time were: 1-AITUC, all India Trade Unions Congress led by militant nationalists. 2-AITUF, all India Trade Unions Federation, led by congress nationalists and moderates, 3-RTUC, Red Trade Unions Congress, led by certain orthodox communities. D-Trade Unions Unity Period(1935-1938) During this period initiative were taken by All-India Railways Federation to provide unity to trade union movement this federation in its conference formed a trade union committee in Bombay in 1932. The committee adopted a platform of unity under which it was conceived by all that trade union is an organ of class struggle whose basic task is to organize workers for advancing and defending their rights and interests . It was also realized that representation, negotiation and other methods of collective bargaining are an integral part of the activities of trade unions. E-Second World War Period(1939-1945)Second world war had tremendous impact on trade union activity India. One of the major changes was related to their ability to participate in negotiations with employers and government. The Second World War, which started in 1939, added new dimensions to trade union movement in India. During the war time various factors plated an important role in enhancing status of the trade unions in the country in the country, Some of them are: 1-The government as well as employers launched a number of labour welfare measures with a view to increase production of war material and other essential goods and maintain high profits. 2-Recognition of trade unions was accorded by many employers.This fact gave moral strength to trade unions. 3-Ban was placed on strikes and lockouts, during the war time and all disputes were referred to adjudication. 4-A tripartite labour conference was convened in 1942, to provide a common platform for discussion and mutual understanding between labour and employees. F-Post independence period (from 1947 to date)Post independence period in India several strong changes in trade union movement of India. There was a tremendous increase in the number of trade unions and those of which existed turned out be more conscious and award of their rights and emerged strongly. As mentioned earlier this period experienced rapid changes in trade union movement in India. The most important factors being: 1-The constant influence of outside and international happenings. Prof T M KUTHUBUDEEN MBA Dept MSCAS Page 18

2-The pressure of trade union rivalries. 3-Governments Industrial Relations Policy with its provision for compulsory adjudication machinery. 4-The enhancement of labour laws conferring special privileges on registered trade unions. 5-Desire of workers to unite for safeguard their interest. 6-Attempts made by some employers to set up unions under their influence. Study of Four Original Central Organizations 1-INTUC(Indian National Trade Union Congress) Origin: Came into existence on 4th May 1948,as a result of the resolution passed on 17th November 1947,by the central board of the Hindustan Mazdoor Sevak Sangh. Objectives: It aims at the sarvodaya ideal and stands for gradual transformation of the existing social order. It aims at establishing a socialist state in India. It aims at placing industry under national ownership and control in a suitable form in order to realise the desired order of society. Methods Used: These strike is like a Brahmastra and is not to be resorted to in a light-hearted manner and made cheap and blunt. Political Affiliation: Affiliated with the Indian Natinal Congress (the ruling party). Its relations with the government are based on the mutuality. 2-AITUC(All India Trade Union Congress) Origin: It was established in 1920 as a result of a resolution passed by the organized workers of Bombay & the delegates, which met in a conference on 31st October 1920. Objectives: It strives to establish a socialist society, but through radical means. It aims at socializing & nationalizing all means of production, distribution & exchange as far as possible. Methods Used: Strives for socialization & nationalization of the means of production, distribution & exchange,but by more radical & violent means. It believes in class struggle, though it may resort to all types of methods to resolve disputes including collective bargaining. Political Affiliation: Is pro-communist. Led by the right CPI. Attitude towards government is not entirely hostile, but of course highly critical of the government. Prof T M KUTHUBUDEEN MBA Dept MSCAS Page 19

It cooperates with the government in the public sector in order to build the nation. 3-BMS(Bhartiya Mazdoor Sangh) Origin: It has been the outcome of decision taken by the Jana Sangh in its convention at Bhopal on 23rd July,1954. Its Journal Secrertary is the Veteran Labour Leader D.P. Thengadi. Objectives: The right to strike. To assist workers in organizing themselves in trade unions as a medium of service to the motherland irrespective of faith & political affinities. Methods used: Tries to achieve its objectives through all legitimate,peaceful & democratic methods. It emphasises on non violence. Political Affiliation: Is affiliated to the BJP and is broadly of Swadeshi orientation. Very critical of the privileged position of the INTUC and is not generally favourable to the communist. 4-UTUC(United Trade Union Congress) Origin: Some trade union leaders of the socialist bent met together in December 1948 to form a new Central Organization of Labour called Hindu Mazdoor Sangh. This committee called for the meeting of the various leaders at Calcutta on April 30th, 1949. Objectives: To establish socialist society in India. To establish a workers & peasants state in India. To bring about unity in the trade union movement. Methods used: UTUC was created with the avowed purpose of liberating the Labour movement of its political affiliations. Is radical in nature. Non-communist and anti-intuc. Political Affiliation: It is radical, non-communist and anti-intuc. It is led by some independent trade union leaders, the Forward Block and the Revolutionary Socialist Party. Problems of trade unions Uneven growth (industry wise & area wise). Small size of unions. Financial weakness. Multiplicity of unions & inter-union rivalry. Leadership issue. Politicalisation of unions. Problem of recognition of trade unions.

Prof T M KUTHUBUDEEN

MBA Dept

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