 Industry means any systematic activity carried on by co operation between

an employer and his employee whether such workmen are employed by

such employer directly or by or through any agency including a contractor
for the production supply or distribution of goods or sources with a overview
to satisfy human want or wishes (not being wants or wishes which are merely
spiritual or religious in nature) whether or not (i) any capital has been
invested for the purpose of carrying on such activity or (ii) such activity is
carried on with a motive to make any gain or profit and includes any activity
relating to the promotion of sales or business or both carried on by an
establishment but does not include.
i) Normal Agriculture operations
ii) Hospital, Dispensaries.
iii) Educational, Scientific Research Training Institution,
iv) Charitable Philanthropic Service
v) Khadi Village Industries
vi) Domestic Services etc.
 It is an activity systematically or habitually undertaken
for the production or distribution of goods, or for
rendering material service to community at large, or
part of such community with the help of employees in
an undertaking.
 This activity generally includes the co-operation of
employer and employees
 The object is the satisfaction of material human needs
 It must not be casual nor must it be for ourself not for
pleasure.
 Thus the very industry revolves around good industrial
relations.
 Industrial Relations refers to the relationship between
management and employees, or employees and their
organization, that arise out of employment.
 The essences of good industrial relation lies in the bringing up
of good labour relations which gives a forum to understand
each other (employer, employee) properly.
 Industrial Relations deals with the worker employee relation in
any industry
 Government has attempted to make Industrial Relations
more healthy by enacting Industrial Disputes Act 1947
 This helps to solve the dispute and to reduce the retency of
dispute.
 This in turn improves the relations.
 Industrial dispute is difference between employers and
employees which is connected with the employment or non
employment or the terms of employment or with the condition of
labour of any person.
1. There must be a dispute or difference between employers
and employees, employee and employees, or employers
and employers.
2. The dispute must be connected with employment or non
employment or terms of employment or with the conditions
of labour of any person.
 It results in strained relations. The existence of a grievance is
necessary and it must be communicated to the employer.
 The term industrial dispute connotes a real and substantial
difference having some elements of persistency and continuity,
till resolved and likely, if not, adjusted to endanger the industrial
peace of the undertaking or the community.
1. Close mindedness of employers and employees one thinking to
extract maximum work with minimum remuneration, other thinking
to avoid work and get more enhancement in pay and wages.
2. Irrational wage, wage system and structure not mutually
acceptable
3. Poor working environment, low presence of safety, hygiene
conditions vitiated atmosphere for smooth working
4. Poor human relations, and lack of dexterity on the part of
management personnel
5. Lack of control over the situations erosion of discipline, which
rebounds.
6. Introduction of new technology or automation mechanization,
Computerization etc. without proper consultations, preparations
and discussion with workers and creating climate.
7. Nepotism, unequal work loads, disproportionate wage,
and responsibilities.
8. Adoption of unfair labour practices either by employer
or employees and unions.
9. Unjustifiable profit sharing, and not considering workers as
a co-shares of the gains of the industry.
10. Frequent union rivalries over membership foisting up of
fake unions.
11. Strikes lock out, lay off, and resulting retrenchment due to
high handedness on the part of the concerned.
12. Throwing away the agreements and arrived settlements
13. Militancy of the unions Attitude of government and
political parties who may indirect control some the unions
for their own gains or to get a hold on the industry.
1. Trade unions should be strengthened democratically
so that they can understand and toe with the main
stream of the national industrial activities.
2. Employers should have more transparency in their
dealings with workers to build confidence and have
progressive out look.
3. They should have open minded flexible collective
Bargaining.
4. Workers should be allowed to participate in the
management through forums, committees and
councils,
5. Sound labour policy, planning
6. Proper leadership and communication
7. Enforcement of discipline
8. Try to have union with in workers fold.
9. Equity in distribution of wealth by acknowledging
workers as team members
Arbitrator – Neutral person to decide on common issue, includes an
umpire
Award: An interim or a final determination of any industrial distribute or
of any question relating there to by any labour (court), industrial
Tribunal or national Tribunal and includes an arbitration award.
Settlement :- means a settlement arranged or in the course of
conciliation proceedings and include a written agreement between
the employer and workmen arrived at otherwise than in the course of
conciliation proceeding where such agreement has been signed by
the parties
 Several acts are enacted by parliament both before and
after independence which were focusing on workers
interests, welfare health etc.
 In 1947 it became industrial dispute, act where in
machineries to solve industrial dispute were indicated.
 The ‘Trio Act’ Factory, Act. Industrial Dispute Act; Trade
union Act gives major direction to achieve the
constitutional directives.
 Besides this, wages Act 1948, Bonus Act 1965, Gratuity Act
1972, Equal remuneration Act 1975, are some of the acts in
the above direction.
 In 1972 National commission on labour, recommended
setting up a permanent industrial Relations commission this
was not well received by government.
Financial Aspects

a) Demand for increase of wages, salaries and other

perks. workers demand goes on increasing with the
increase in cost of living
b) Demand for more perks, and fringe benefits. Issue of
bonus also has become a contentious one, even
though Bonus Act has come fixing minimum rate
payable as 81/3% of their total salary inspite of profit
or loss incurred by the industry.
c) Incentives, festivals allowances, concessions etc
requires a hike every now and then, workers
compare these benefits with other industries and
demand them – without comparing the capacity of
the industry where they are working.
Non-Financial Aspects

 a) Working hours, rest hours, Traveling hours are

source of disputes. If houses are provided some
section of workers want to include travel time also as
working hours.
 b) Introduction of machines, computers
modernization, automation – In effect any act of
management which may result in economy in man
power is resisted
 c) More facilities like free meals free group travel etc
are sought every now and then
Administrators Causes

a) Non implementation of agreements awards and

other local settlements – with full sprit
b) stifling with recognition of labour unions though
registered,
c) Attempt to weaken existing trade unions and trying
to foist fake unions
d) Un healthy working conditions
e) Lack of skill on the part of leaders supervisors
f) Disproportionate works loads, favoritism
g) Victimization, nepotism attitude of management in
recruitment, promotion, transfer, etc
h) Instead of re deployment or skill improvement easier
way of retrenchment forced voluntary retirement
schemes (C.R.S) are adopted.
Government and political pressures

a) Industrial unions affiliating with political unions which

are in power, resulting in frequent shift of loyalty and
resultant unrest
b) Politician influencing workers group closes examples
is the Nalco – taken over by Sterlite, the state
government supported (propped up) strike at
Chattisgrah state against Nalco, for months together
resulting in total stoppage of the industry for some
time.
c) Some time unions, workers strike against mergers,
acquisition, taken over, disinvestments policies, of
government and private sectors.
Other Causes

a. Refusal to have workers participation in the running

of the industry.
b. Non adherence to laid out ‘standing orders’
grievances procedures
c. Refusal to have free frank, and transparent
collective bargaining.
d. Sympathetic strike – a show of readership to
workers of neighboring industries, and conducting
a token strike when they are in full strike. This may
cause internal bitterness.
 Means a cessation of work by a body of persons
employed in any industry acting in combination or a
concerted refusal or a refusal under a common
understanding of any number of persons who are or
have been so employed to continue to work or to
accept employment.
 The strike may be manifested in different forums like,
hunger, sit down, solve down, pen down, lighting etc.
 The ingredients can be summed up as –
› A cessation of work
› This abstinence of work must be by a body of persons
employed in an industry
› The strikers must have been acting in combination.
 It means the temporary closing of a place of
employment or the suspension of work, or the refusal by
an employer to continue to employ any number of
person employed by him.
 There is temporary closing of employment.
 It is a weapons in the hands of employers.
 A lock out declared in consequence of an illegal strike
or a strict declared in consequence of a illegal lock out
shall not be deemed to be illegal.
 It means failure, refusal or inability of an employer on account of
shortage of fuel power or raw materials, or the accumulation of
stock or the breakdown of machinery to give employment to a
workman whose name is on the master rolls of his industrial
establishment and who has not been retrenched.
 It is a short term removal of workers.
 The essentials of a lay off are failure, refusal in ability of the
employers to give work
 The employees must be permanent in nature at the time of lay
off.
 The failure to give work should be due to reason beyond his
powers like –
› a major break down of machinery
› Shortage of raw material, power, coal etc.
› Marketing problem of stocks resulting in accumulation
› Any other act of god beyond employer’s control.
It means termination of the services of a workman by employer for any
reason whatsoever otherwise them as a punishment inflicted by way
of disciplinary action, but does not include,
a) Voluntary retirement of the workmen, or
b) retirement of the workman or reaching the age of superannuation
c) Termination (natural) at the end of a contract
d) Termination due to continuous ill health.

Essentials of retrenchment
 Termination of services of a workman not amounting to dismissal
 Termination on the ground of surplus labour or staff
 Service terminated must be a continuous one perpetual in nature.
 Termination not to victimize or due to unfair labour practice.
 Employees are prohibited from striking according to the section 22 of
Industrial Disputes Act 1947.
 Employees, who are working in a public utility service, cannot go on a
strike without giving a notice of strike within the six weeks before striking.
 They can not go on strike either within fourteen days of providing the
strike notice or before the expiry of the date of strike specified in any
such notice.
 The same rule applies to the employers.
 Employers who are carrying on a public utility service can not lockout
any of their employees without giving them a prior notice within six
weeks before the lock out or within the fourteen days of giving such a
notice.
 Moreover, the notice of strike or lockout is to be given in a prescribed
manner showing the number of persons involved in the strike/lockout.
 A strike or a lock-out is illegal if it is declared in noncompliance with the
section 22 (as defined above) of Industrial Disputes Act 1947
Penalty for Illegal Strikes and Lock-outs
 A workman who is involved in an illegal strike can be penalized with
imprisonment for a term extendable to a month or with a fine or both.
 Indian trade union movement can be divided into three
phases.
The first phase (1850 to1900)
 During this phase the inception of trade unions took place.
 During this period, the working and living conditions of the
labor were poor and their working hours were long.
 Capitalists were only interested in their productivity and
profitability.
 In addition, the wages were also low and general
economic conditions were poor in industries.
 In order to regulate the working hours and other service
conditions of the Indian textile laborers, the Indian
Factories Act was enacted in 1881.
 As a result, employment of child labor was prohibited.
 THE SECOND PHASE (1900 TO 1946)
 This phase was characterized by the development of organized
trade unions and political movements of the working class.
 Between 1918 and 1923, many unions came into existence in the
country.
 At Ahmedabad, under the guidance of Mahatma Gandhi,
occupational unions like spinners’ unions and weavers’ unions
were formed.
 A strike was launched by these unions under the leadership of
Mahatma Gandhi who turned it into a satyagrah.
 These unions federated into industrial union known as Textile
Labor Association in 1920.In 1920, the First National Trade union
organization (The All India Trade Union Congress (AITUC)) was
established.
 In 1926, Trade union law that became operative from 1927.
 During 1928, All India Trade Union Federation (AITUF) was formed.
 THE THIRD PHASE (POST 1947)
 By 1949, four central trade union organizations were functioning
in the country:
› The All India Trade Union Congress,
› The Indian National Trade Union Congress,
› The Hindu Mazdoor Sangh, and
› The United Trade Union Congress

 The working class movement was also politicized along the lines
of political parties.
 The Indian national trade Union Congress (INTUC) is the trade
union arm of the Congress Party.
 The AITUC is the trade union arm of the Communist Party of
India.
 Besides workers, white-collar employees, supervisors and
managers also got organized by the trade unions, as for
example in the Banking, Insurance and Petroleum industries.
 At present there are twelve Central Trade Union
Organizations in India:
1. All India Trade Union Congress (AITUC)
2. Bharatiya Mazdoor Sangh (BMS)
3. Centre of Indian Trade Unions (CITU)
4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation of Free Trade Unions (IFFTU)
7. Indian National Trade Union Congress (INTUC)
8. National Front of Indian Trade Unions (NFITU)
9. National Labor Organization (NLO)
10. Trade Unions Co-ordination Centre (TUCC)
11. United Trade Union Congress (UTUC) and
12. United Trade Union Congress - Lenin Sarani (UTUC - LS)
 The Indian labor markets consist of three sectors:
› The rural workers, who constitute about 60 per cent of the
workforce.
› Organized sector, which employs 8 per cent of workforce,
and
› The urban informal sector (which includes the growing
software industry and other services, not included in the
formal sector) which constitutes the rest 32 per cent of the
workforce.
 Trade unions are voluntary associations formed for the pursuit of protecting
the common interests of its members and also promote welfare. They protect
the economic, political and social interests of their members.

 Wages salaries
 Working conditions
 Inculcating discipline among the workforce
 Personnel policies
 Welfare
 Employee-employer relation
 Negotiating machinery
 Safeguarding organizational health and interest of the
industry
 Helping social adjustments.
 Achieving industrial peace
1. Militant Functions
• To achieve higher wages and better working conditions
• To raise the status of workers as a part of industry
• To protect labors against victimization and injustice

2. Fraternal Functions
• To take up welfare measures for improving the morale of
workers
• To generate self confidence among workers
• To encourage sincerity and discipline among workers
• To provide opportunities for promotion and growth
• To protect women workers against discrimination
 Organizations provide welfare facilities to their employees to
keep their motivation levels high.
 The employee welfare schemes can be classified into two
categories viz. statutory and non-statutory welfare schemes.
 The statutory schemes are those schemes that are
compulsory to provide by an organization as compliance to
the laws governing employee health and safety.
 These include provisions provided in industrial acts like
Factories Act 1948, Dock Workers Act (safety, health and
welfare) 1986, Mines Act 1962.
 Drinking Water: At all the working places safe hygienic drinking
water should be provided.
 Facilities for sitting: In every organization, especially factories,
suitable seating arrangements are to be provided.
 First aid appliances: First aid appliances are to be provided and
should be readily assessable so that in case of any minor
accident initial medication can be provided to the needed
employee.
 Latrines and Urinals: A sufficient number of latrines and urinals are
to be provided in the office and factory premises and are also to
be maintained in a neat and clean condition.
 Canteen facilities: Cafeteria or canteens are to be provided by
the employer so as to provide hygienic and nutritious food to the
employees.
 Spittoons: In every work place, such as ware houses, store
places, in the dock area and office premises spittoons are to be
provided in convenient places and same are to be maintained
in a hygienic condition.
 Lighting: Proper and sufficient lights are to be provided for
employees so that they can work safely during the night shifts.
 Washing places: Adequate washing places such as
bathrooms, wash basins with tap and tap on the stand pipe
are provided in the port area in the vicinity of the work
places.
 Changing rooms: Adequate changing rooms are to be
provided for workers to change their cloth in the factory area
and office premises. Adequate lockers are also provided to
the workers to keep their clothes and belongings.
 Rest rooms: Adequate numbers of restrooms are provided to
the workers with provisions of water supply, wash basins,
toilets, bathrooms, etc.
 Personal Health Care (Regular medical check-ups): Some of the companies
provide the facility for extensive health check-up
 Flexi-time: The main objective of the flextime policy is to provide opportunity
to employees to work with flexible working schedules. Flexible work schedules
are initiated by employees and approved by management to meet business
commitments while supporting employee personal life needs
 Employee Assistance Programs: Various assistant programs are arranged like
external counseling service so that employees or members of their
immediate family can get counseling on various matters.
 Harassment Policy: To protect an employee from harassments of any kind,
guidelines are provided for proper action and also for protecting the
aggrieved employee.
 Maternity & Adoption Leave
 Medi-claim Insurance Scheme: This insurance scheme provides adequate
insurance coverage of employees for expenses related to hospitalization due
to illness, disease or injury or pregnancy.
 Employee Referral Scheme: Employees to refer friends and relatives for
employment in the organization.
Objectives
 To ensure regular and prompt payment of wages and to
prevent the exploitation of a wage earner by prohibiting
arbitrary fines and deductions from his wages.

Scope and coverage

 Application for payment of wages to persons employed in
any factory.
 Not applicable to wages which average Rs 1600/- per
month or more.
 Wages include all remuneration, bonus, or sums payable
for termination of service, but do not include house rent
reimbursement, light vehicle charges, medical expenses,
TA, etc.
 Main provisions
 Responsibility of the employer for payment of
wages and fixing the wage period.
 Procedures and time period in wage payment.
 Payment of wages to discharged workers.
 Permissible deductions from wages.
 Nominations to be made by employees.
 Penalties for contravention of the Act.
 Equal remuneration for men and women.
 Obligations and rights of employers.
 Obligations and rights of employees.
  To provide for fixing minimum rates of wages in certain
employments.
› a minimum rate of wages for time work
› fixing or revising minimum rates of wages ( Procedures outlined)
› The cost of living allowance and the cash value of the
concessions in respect of supplies of essential commodities at
concession rates shall be computed by the competent authority
 Issues on working time, overtime, minimum time rate, claims, etc. are
incorporated in this act.
 For the purpose of coordinating the work Central Government shall
appoint a Central Advisory Board.
 Verification by Inspectors

In India, 422.6 (94%) million workers out of the total workforce of 457.5 million belong to the
unorganised/informal sector. These workers contribute to more than 60 per cent to India’s
GDP growth. Among other sectors, these workers work as farm labourers, landless
labourers, factory workers and construction workers.
 With effect from November 2009 the National Floor Level
Minimum Wage has been increased to Rs 100 from Rs 80 (in
September 2007),.
 The National Minimum Floor Level Wage was Rs 66 in 2004, Rs.
45 in 1999, Rs. 40 in 1998 and Rs. 35 in 1996.