UNIT-I

INDUSTRIAL RELATIONS

CONCEPTS OF IR
Definition:

The term IR commonly denotes employeeemployer relations in both organized and unorganized sector of the economy. Essentials: Two Parties Conflict and Co-Operation Includes Environmental issues Studies the policy frame work laid by govt

Evolution of IR
Primitive stage

Agrarian stage
Serfdom stage Handicrafts stage Cottage or putting-out stage Factory or industrial capitalism stage

Importance of IR
Industrial relations patterns, organised sector and

their impact on unorganized sector Unions are important force in indian political system Varying pattern of industrial relations Status difference in the workers of public and private sector

Functions of IR
Employee-employer relations

Labour management relations

Industrial peace and productivity Industrial peace and democracy Liaison functions

Scope of Industrial relations:

Industrial relations includes Labour relations Employer-employee relations Group relations Community or Public relations

Aspects of Industrial relations

Promotion and development of healthy labour-

management relations Maintenance of industrial peace and avoidance of industrial strike Development of industrial democracy.

Components of IR
Workers (employees) and their organization.

Management (employers) and their organizations

The govt

Factors affecting IR
Institutional factors

Economic factors
Social factors Technological factors Psychological factors Political factors Enterprise related factors Global factors

Perspectives or Approaches of IR
Psychological approach

Sociological approach
Human relations approach Soci-ethical approach Gandhian approach Systems approach

Causes of poor IR in India

Uninteresting nature of work

Political nature of unions

Poor wages Occupational instability Poor behavioral climate

Effects of poor IR
Multiplier effect

Fall in normal tempo

Resistance to change Frustration and social cost

Suggestions to improve IR
Management and union develop constructive

attitude Policies and procedure regarding IR should be clear Hr should remove doubts Management should encourage right kind of union leadership After the settlement reached , agreement should be properly administered

Industrial relations problem in the Public sector

The public sector is that part of the economy which is owned or

controlled by the public, usually through government agencies. It is the part of the economy concerned with providing basic government services. Public sector is said to be part of the economy concerned with providing basic government services and the composition of the public sector varies by country, but in most countries the public sector includes such services as the police, military, public roads, public transit, primary education and healthcare for the poor.

IR problems in Public sector

Bureaucracy of public sector

Retrenchment and lay-off of surplus workforce

Poor quality of unions Ineffective workers participation in management Absence of bargaining agent in collective

bargaining Strikes

Improving IR in public sector

Humanization of management

Adoption of suitable HR development programme

Control of union quality Encouraging workers participation in

management Encourage voluntary arbitration

Definition: A trade union is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working life webbs Objectives: Representation Negotiation Intervention of union in decision making Member services Education and training Legal assistance Financial dicounts Welfare benefits

Trade union

Reason for employees to join trade union

Greater bargaining power

Minimize discrimination
Sense of security Sense of participation Sense of belongingness Betterment of relationship

Growth of trade union in India

Early trade union(1890 to1918) Trade unions after world war I(1919 and 1923) Emergence of leftwing trade union(1924 and

1935) Increase in trade union activity and unity moves(1936 and 1939) Union activity during II world war(1940 and 1946) The post war and the post independence period (1947) Trade union in the era of liberalisation Present position of trade union

Functions of trade union

Militant functions

Fraternal functions
Social functions Political functions

Problems of trade union

Outside political relationship

Union rivalry
Multiple unions Poor financial position Small size of union membership Inactive functioning victimization

Problems of trade union

Uneven growth

Small size of unions

Financial weakness Multiplicity of unions and inter union rivalry Leadership issue Politicalisation of unions Problems of recognition of trade unions An outdated trade unit on law

Advantages
Protect workers

Build self reliance and self respect

Facilitates negotiation between worker and

employer Maintenance of uniform wages Helps to bargain productivity deals

Disadvantages
Misguidance

High cost and low productivity

Pressure on workers Unnecessary inducement of workers

Code of conduct
Code of conduct is a set of conventional principles

and expectations that are considered binding on any person who is a member of a particular group. The code of conduct provides guidelines for the employers, workers, and the union In order to maintain discipline in the industry in both public and the private sector workers and management should recognize their rights and responsibilities. Code of conduct creates a set of rules which to be followed by both the employer and the worker

Features
Govt induced self managed mutually voluntary

principle Preventing disputes by providing disputes settlement It compels not to indulge in strikes and lockouts Restrains both the parties from unilateral action Actions are taken in a way to attain cordial relations

Objectives of code of conduct

To ensure and recognize rights and obligations of

employer employees To promote constructive cooperation between the parties To secure settlement of disputes To eliminate all forms of coercion intimidation and violence To avoid work stoppages To facilitate free growth of trade unions To maintain discipline

Principles of code of conduct

There shall not be lockout strike

No unilateral action in industrial matter

There should be no recourse to go-slow tactics No damage to plant or property Violence,intimidation,co-ersion should not be

resorted to Machinery for settlement of disputes to be utilized Awards and agreements should be speedily implemented

The code of conduct policy of a company determined on the basis of following factors Honesty and integerity Disclosure of information Harassment Outside Employment Conflict of interest Confidentiality Equal opportunity to all employees Misusing company resorses Health and safety Payments and gifts

Factors guiding code of conduct

Advantages
Identification

Types
Effects Expert Insight Potential

Disadvantages
Subjectivity

Enforceability
Vagueness

UNIT-II
Industrial conflicts
Industrial disputes means any disputes or

difference between employers and employers or between employers and workers or between workmen and work men, which is connected with employment and non-employment, or with the conditions of labour or any person. Industrial disputes Act,1947.

Nature of Industrial disputes

Urge for higher wages and profit

Conflict among workers and employers

Conflict is not personal Limitations Labour power Conflict in interests

Essential elements of Industrial disputes

The dispute must be between
Employers and Employers Employers and workmen Workmen and workmen

Impact of industrial disputes

Impact on employer
Impact on employee Impact on consumers Impact on economy

Causes of Industrial disputes

Economic factors
Non-economic factors Management practices Trade union practices Legal and Political factors

Economic factors
Demand for higher wages

Demand for allowances and bonus

High industrial profits

Non economic factors

Working conditions and working hours

Modernization and automation of plant and

machinery Personal causes Political causes Indiscipline Non reorganization of trade union Weakness of trade union

Management practices
Unfair labour practices

Ineffective supervision
Violation of acceptable norms

Trade union practices:

Union rivalry Non cooperative approach

Legal and political factors

Multiplicity of labour laws
Political interference

Forms of industrial disputes

Strikes

Lockouts
Gherao Picketing and boycott

Strikes
Definition:
Strike is a temporary cessation of work by a

group of employees in order to express grievances or to enforce a demand concerning or to enforce a demand concerning changes in working conditions

Causes of strike
Job insecurity

Unequal workloads
Monotony Grievances Wage disputes Dispute over long hours of work Working arrangement and conditions

Types of strike
Primary strikes: Stay away strikes Stay in strikes Tools down pen down or mouth shut strike Token or protest strike Lightning or wild cat strike Go slow strike Picketing Boycott Hunger strike

Secondary strike: Sympathetic strike Other strikes: General Particular Political bandhs

Effects of strike
Cuts the creation of profit

Results in mass unemployment

Damage costly equipments and property Results in violence Loss of valuable man hours Strikes are costly to workers Depletion of trade union funds Emotional tensions and mental strains

Prevention of strikes
Well defined precise clear and progressive HR

policies Effective administration and timely implementation of policies Fair and reasonable recruitment promotion and wages policies Effective two way system of communication Provide just and humane conditions of work Give recognition to a representative union Encourage joint consultation

Lockout
Lock out refers to the action of employer in

temporary closing or shutting down of the workplace or refusing to provide work to its employees with the aim of forcing them to accept the demands made by them or to withdraw the demands made by the employees.

Not constitute as lockouts

Prohibiting an individual employee
Termination of employment by retrenchment Termination of services of more than one person

Mere declaration of work.

Prevention of Industrial disputes

Negotiation

Trade unions
Joint consultations Works committees Joint management councils Standing orders Grievance procedure Code of conduct Mediation

Government machineries for Settlement of Disputes

Conciliation
Conciliation officer Board of conciliation

Adjudication
Labour court Industrial tribunal

Court of enquiry

National tribunal

Adjudication

Conciliation
Meaning of conciliation
Conciliation is a process by which representatives of workers and employers are brought together before a third person or a group of persons with a view to persuade them to come to a mutually satisfying agreement.

Conciliation machinery in India

Conciliation officer
Board of conciliation Court of enquiry

Conciliation officer
The central and the state govt can appoint a

conciliation officer to mediate all disputes brought to the notice. He may be appointed for a specified area or specified industries in a specified area or for one or more specified industries. The officer enjoys the power of civil court

Duties of conciliation officer

To hold conciliation proceedings

To investigate the dispute

To send a report and memorandum of settlement

to appropriate govt Where no settlement is arrived at

Powers of conciliation officers

Power to enter premises Power to call for and inspect documents

Role of conciliation officers:

Discussion leader Safety valve Communication link Innovator Sounding board Protector Stimulator Advisor Face saver Promoter of collective bargaining

Board of conciliation
Not a permanent institution

Having powers of civil court

For a specific dispute

Quorum The quorum is two in case of three members The quorum is three in case of five members

Duties of board
To bring about the settlement of disputes To send a report To send memorandum of settlement to the

appropriate govt To communicate reasons to the parties if no further reference made To submit report within 2 months

Powers of board
Power to enter premises Powers of civil court