introductions to industrial relations

7/28/2019 Introductions to Industrial Relations

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Introductions To Industrial Relations

Industrial relations has become one of the most delicate and complex problems of modern

industrial society. Industrial progress is impossible without cooperation of labors and harmonious

relationships. Therefore, it is in the interest of all to create and maintain good relations between

employees (labor) and employers (management).

Concept of Industrial Relations:

The term Industrial Relations comprises of two terms: Industry and Relations. Industry

refers to any productive activity in which an individual (or a group of individuals) is (are)

engaged. By relations we mean the relationships that exist within the industry between

the employer and his workmen. The term industrial relations explains the relationship

between employees and management which stem directly or indirectly from union-employer

relationship.

Industrial relations are the relationships between employees and employers within the

organizational settings. The field of industrial relations looks at the relationship between

management and workers, particularly groups of workers represented by a union. Industrial

relations are basically the interactions between employers, employees and the government,

and the institutions and associations through which such interactions are mediated.

The term industrial relations has a broad as well as a narrow outlook. Originally, industrial

relations was broadly defined to include the relationships and interactions between employers

and employees. From this perspective, industrial relations covers all aspects of the

employment relationship, including human resource management, employee relations, and

union-management (or labor) relations. Now its meaning has become more specific and

restricted. Accordingly, industrial relations pertains to the study and practice of collective

bargaining, trade unionism, and labor-management relations, while human resource

management is a separate, largely distinct field that deals with nonunion employment

relationships and the personnel practices and policies of employers.

The relationships which arise at and out of the workplace generally include the relationships

between individual workers, the relationships between workers and their employer, the

relationships between employers, the relationships employers and workers have with the

organizations formed to promote their respective interests, and the relations between those

organizations, at all levels.industrial relationsalso includes the processes through which these
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relationships are expressed (such as, collective bargaining, workers participation in decision -

making, and grievance and dispute settlement), and the management of conflict between

employers, workers and trade unions, when it arises.

Industrial Relation System

An industrial relations system consists of the whole gamut of relationships between employees

and employees and employers which are managed by the means of conflict and cooperation.

A sound industrial relations system is one in which relationships between management and

employees (and their representatives) on the one hand, and between them and the State on the

other, are more harmonious and cooperative than conflictual and creates an environmentconducive to economic efficiency and the motivation, productivity and development of the

employee and generates employee loyalty and mutual trust.

Actors in the IR system:

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis--vis labors. They have the right to hire and fire

them. Management can also affect workers interests by exercising their right to relocate, close or

merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They

exchange views with management and voice their grievances. They also want to share decision

making powers of management. Workers generally unite to form unions against the management

and get support from these unions.

Government: The central and state government influences and regulates industrial relations

through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor

and tribunal courts.


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SCOPE:

The concept of industrial relations has a very wide meaning and connotation. In the narrow sense,

it means that the employer, employee relationship confines itself to the relationship that emerges

out of the day to day association of the management and the labor. In its wider sense, industrial

relations include the relationship between an employee and an employer in the course of the

running of an industry and may project it to spheres, which may transgress to the areas of quality

control, marketing, price fixation and disposition of profits among others.

The scope orindustrial relationsis quite vast. The main issues involved here include the

following:

1. Collective bargaining2. Machinery for settlement of industrial disputes3. Standing orders4. Workers participation in management5. Unfair labor practices

Importance Of Industrial Relations


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The healthy industrial relations are key to the progress and success. Their significance may be

discussed as under

The most important benefit of industrial relations is that this

ensures continuity of production. This means, continuous employment for all from manager toworkers. The resources are fully utilized, resulting in the maximum possible production. There

is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for

several other industries; to other industries if the products are intermediaries or inputs; to

exporters if these are export goods; to consumers and workers, if these are goods of mass

consumption.

Good industrial relations reduce the industrial disputes.

Disputes are reflections of the failure of basic human urges or motivations to secure adequate

satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-

slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not

spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing

production.

Good industrial relations improve the morale of the employees. Employees

work with great zeal with the feeling in mind that the interest of employer and employees is one

and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains ofindustry. The employer in his turn must realize that the gains of industry are not for him along but

they should be shared equally and generously with his workers. In other words, complete unity of

thought and action is the main achievement of industrial peace. It increases the place of workers in

the society and their ego is satisfied. It naturally affects production because mighty co-operative

efforts alone can produce great results.

The main object of industrial relation is a complete mental revolution of

workers and employees. The industrial peace lies ultimately in a transformed outlook on the part

of both. It is the business of leadership in the ranks of workers, employees and Government to

work out a new relationship in consonance with a spirit of true democracy. Both should think

themselves as partners of the industry and the role of workers in such a partnership should be

recognized. On the other hand, workers must recognize employers authority. It will naturally

have impact on production because they recognize the interest of each other.


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Good industrial relations are maintained on the basis of cooperation and

recognition of each other. It will help increase production. Wastages of man, material and

machines are reduced to the minimum and thus national interest is protected.

Thus, it is evident that goodindustrial relationsis the basis of higher production with minimum

cost and higher profits. It also results in increased efficiency of workers. New and new projects

may be introduced for the welfare of the workers and to promote the morale of the people at work.

An economy organized for planned production and distribution, aiming at the realization of social

justice and welfare of the massage can function effectively only in an atmosphere of industrial

peace. If the twin objectives of rapid national development and increased social justice are to be

achieved, there must be harmonious relationship between management and labor.

Objectives of Industrial Relations:

The main objectives ofindustrial relationssystem are:-

To safeguard the interest of labor and management by securing the highest level of mutualunderstanding and good-will among all those sections in the industry which participate in

the process of production.

To avoid industrial conflict or strife and develop harmonious relations, which are anessential factor in the productivity of workers and the industrial progress of a country.

To raise productivity to a higher level in an era of full employment by lessening thetendency to high turnover and frequency absenteeism

To establish and promote the growth of an industrial democracy based on laborpartnership in the sharing of profits and of managerial decisions, so that ban individuals

personality may grow its full stature for the benefit of the industry and of the country as

well.

To eliminate or minimize the number of strikes, lockouts and gheraos by providingreasonable wages, improved living and working conditions, said fringe benefits.

To improve the economic conditions of workers in the existing state of industrialmanagements and political government.

Socialization of industries by making the state itself a major employer Vesting of a proprietary interest of the workers in the industries in which they are
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employed.

Bargaining Form And Tactics

A collective bargaining process generally consists of four types of activities- distributive

bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining.

Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the economic

issues like wages, salaries and bonus are discussed. In distributive bargaining, one partys gain is

another partys loss. This is most commonly explained in terms of a pie. Disputants can work

together to make the pie bigger, so there is enough for both of them to have as much as they want,

or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general,

distributive bargaining tends to be more competitive. This type of bargaining is also

known as conjunctive bargaining.

Integrative bargaining:

This involves negotiation of an issue on which both the parties may gain, or at least neither party

loses. For example, representatives of employer and employee sides may bargain over the better

training programme or a better job evaluation method. Here, both the parties are trying to make more

of something. In general, it tends to be more cooperative than distributive bargaining. This type of

bargaining is also known as cooperative bargaining.

Attitudinal restructuring:

This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility

between labor and management. When there is a backlog of bitterness between both the parties,

attitudinal restructuring is required to maintain smooth and harmoniousindustrial relations. It

develops a bargaining environment and creates trust and cooperation among the parties.

Intra-organizational bargaining:

It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus

with the workers and management. Even within the union, there may be differences between groups.

For example, skilled workers may feel that they are neglected or women workers may feel that their

interests are not looked after properly. Within the management also, there may be differences. Trade

unions maneuver to achieve consensus among the conflicting groups.


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Characterstics Of Collective Bargaining

it is a group process, wherein one group, representing the employers, and the other, representing the

employees, sit together to negotiate terms of employment.

onsiderable

scope for discussion, compromise or mutual give and take in collective bargaining.

Collective bargaining is a formalized process by which employers and independent trade unions negotiate

terms and conditions of employment and the ways in which certain employment-related issues are to be

regulated at national, organizational and workplace levels.

Collective bargaining is a process in the sense that it consists of a number of steps. It begins with thepresentation of the charter of demands and ends with reaching an agreement, which would serve asthe basic law governing labor management relations over a period of time in an enterprise. Moreover,

it is flexible process and not fixed or static. Mutual trust and understanding serve as the by products

of harmonious relations between the two parties.

It a bipartite process. This means there are always two parties involved in the process of collectivebargaining. The negotiations generally take place between the employees and the management. It is a

form of participation.

Collective bargaining is a complementary process i.e. each party needs something that the other partyhas; labor can increase productivity and management can pay better for their efforts.

Collective bargaining tends to improve the relations between workers and the union on the one handand the employer on the other.

Collective Bargaining is continuous process. It enables industrial democracy to be effective. It usescooperation and consensus for settling disputes rather than conflict and confrontation.

Collective bargaining takes into account day to day changes, policies, potentialities, capacities andinterests.

It is a political activity frequently undertaken by professional negotiatorsCollective Bargaining Process

Collective bargaining generally includes negotiations between the two parties (employees

representatives and employers representatives). Collective bargaining consists of negotiations

between an employer and a group of employees that determine the conditions of employment.


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Often employees are represented in the bargaining by a union or other labor organization. The

result of collective bargaining procedure is called the collective bargaining agreement (CBA).

Collective agreements may be in the form of procedural agreements or substantive agreements.

Procedural agreements deal with the relationship between workers and management and the

procedures to be adopted for resolving individual or group disputes.

This will normally include procedures in respect of individual grievances, disputes and discipline.

Frequently, procedural agreements are put into the company rule book which provides information on

the overall terms and conditions of employment and codes of behavior. A substantive agreement

deals with specific issues, such as basic pay, overtime premiums, bonus arrangements, holiday

entitlements, hours of work, etc. In many companies, agreements have a fixed time scale and a

collective bargaining process will review the procedural agreement when negotiations take place on

pay and conditions of employment.

The collective bargaining process comprises of five core steps:

1. Prepare: This phase involves composition of a negotiation team. The negotiation teamshould consist of representatives of both the parties with adequate knowledge and skills for

negotiation. In this phase both the employers representatives and the union examine their

own situation in order to develop the issues that they believe will be most important. The first

thing to be done is to determine whether there is actually any reason to negotiate at all. Acorrect understanding of the main issues to be covered and intimate knowledge of operations,

working conditions, production norms and other relevant conditions is required.

2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A processwell begun is half done and this is no less true in case of collective bargaining. An

environment of mutual trust and understanding is also created so that the collective

bargaining agreement would be reached

3. Propose: This phase involves the initial opening statements and the possibleoptions that exist to resolve them. In a word, this phase could be described as

brainstorming. The exchange of messages takes place and opinion of both the parties is

sought.

4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprisesthe time when what ifs and supposals are set forth and the drafting of agreements take

place.


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5. Settlement: Once the parties are through with the bargaining process, a consensualagreement is reached upon wherein both the parties agree to a common decision regarding

the problem or the issue. This stage is described as consisting of effective joint

implementation of the agreement through shared visions, strategic planning and negotiated

change.

Collective bargaining includes not only negotiations between the employers and unions but also

includes the process of resolving labor-management conflicts. Thus, collective bargaining is,

essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a method of

introducing civil rights in the industry, that is, the management should be conducted by rules rather

than arbitrary decision making. It establishes rules which define and restrict the traditional authority

exercised by the management.

Importance to employees

It increases the strength of the workforce, thereby, increasing their bargaining capacity as agroup.

Collective bargaining increases the morale and productivity of employees. It restricts managements freedom for arbitrary action against the employees. Moreover,

unilateral actions by the employer are also discouraged.


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Effective collective bargaining machinery strengthens the trade unions movement. The workers feel motivated as they can approach the management on various matters and

bargain for higher benefits.

It helps in securing a prompt and fair settlement of grievances. It provides a flexible meansfor the adjustment of wages and employment conditions to economic and technological

changes in the industry, as a result of which the chances for conflicts are reduced.

Importance to employers

1. It becomes easier for the management to resolve issues at the bargaining level rather thantaking up complaints of individual workers.

2. Collective bargaining tends to promote a sense of job security among employees and therebytends to reduce the cost of labor turnover to management.

3. Collective bargaining opens up the channel of communication between the workers and themanagement and increases worker participation in decision making.

4. Collective bargaining plays a vital role in settling and preventing industrial disputes.Importance to society

1. Collective bargaining leads to industrial peace in the country2. It results in establishment of a harmonious industrial climate which supports which helps the

pace of a nations efforts towards economic and social development since the obstacles to

such a development can be reduced considerably.

3. The discrimination and exploitation of workers is constantly being checked.4. It provides a method or the regulation of the conditions of employment of those who are

directly concerned about them

Levels of Collective Bargaining

Collective bargaining operates at three levels:

1. National level

2. Sector or industry level


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3. Company/enterprise level

Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation between

union confederations, central employer associations and government agencies. It aims at providing

a floor for lower-level bargaining on the terms of employment, often taking into account

macroeconomic goals.

Sectoral bargaining, which aims at the standardization of the terms of employment in one

industry, includes a range of bargaining patterns. Bargaining may be either broadly or narrowly

defined in terms of the industrial activities covered and may be either split up according to

territorial subunits or conducted nationally

.

The third bargaining level involves the company and/or establishment. As a supplementary type of

bargaining, it emphasizes the point that bargaining levels need not be mutually exclusive.

Effective Discipline


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Discipline is the key to success. Theodore Roosevelt has said With self-discipline almost

everything is possible. Self discipline makes employee realize what is required at work. Discipline

can be positively related to performance. It is the bridge between goals and accomplishments.

Effective discipline should be aimed at the behavior, and not at the employee personality. This is

because the reason for discipline is to improve performance rather than punishing the employee.

Factors necessary for effective disciplinary system include:

1. Training of supervisors is necessary: Supervisors and mangers need to be trained on whenand how discipline should be used. It is necessary to provide training on counseling skills as

these skills are used while dealing with problem employees. Moreover, discipline decisions

taken by trained supervisors are considered fair by both employees and managers.

2.

Centralization of discipline: Centralized means that the discipline decisions should beuniform throughout the organization. The greater the uniformity, higher will be the

effectiveness of discipline procedure.

3. Impersonal discipline: Discipline should be handled impersonally. Managers should try tominimize the ill feelings arising out of the decisions by judging the offensive behavior and

not by judging the person. Managers should limit their emotional involvement in the

disciplinary sessions.

4. Review discipline decisions: The disciplinary decisions must be reviewed before beingimplemented. This will ensure uniformity and fairness of the system and will minimize thearbitrariness of the disciplinary system.

5. Notification of conduct that may result in discipline: Actions that lead to misconduct can belisted and documented so the employees are aware of such actions. This will unable them to

claim that they have not been notified, in advance, regarding the same.

6. Information regarding penalties: The employer should define the penalties and other actionslike warnings, reprimands, discharge and dismissal well in advance. All these action plans

must be communicated to the employees.

7. Discipline shall be progressive: Discipline system should be progressive in nature. In aprogressive discipline approach the severity of actions to modify behavior increases with

every step as the employee continues to show improper behavior. The advantage of this

approach is that employees cant take it for granted.

8. Documentation: Effective discipline requires accurate, written record keeping andwritten notification to the employees. Thus less chance will be left for the employee to say


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the he did not know about the policy.

9. Discipline should be fair: The disciplinary decision should be fair enough for the employee.Both over-penalization and under-penalization are considered to be unfair for the problem

employee. Moreover, an internal fairness is to be maintained, that is, two employees who

have committed the same offense should be equally punished.

10.Discipline shall be flexible and consistent: The manager administering discipline mustconsider the effect of actions taken by other managers and of other actions taken in the past.

Consistent discipline helps to set limits and informs people about what they can and cannot

do. Inconsistent discipline leads to confusion and uncertainty.

11.Disciplinary action should be prompt: The effective discipline should be immediate. Thelonger time lag between the misconduct offense and the disciplinary action will result in

ineffectiveness of the discipline.

Approaches to Discipline

Handling employee misconduct is a very critical task to be performed by the senior managers.

Misconduct and other offensive behaviors often lead to decreased levels of productivity as they

affect the individual performance of the employees. To manage discipline among employees, every

company opts for a discipline policy which describes the approach it will follow to handle

misconduct.

Broadly defined, there are two approaches to discipline employees. They are:

Positive Discipline ApproachThis approach is based on the premise that role of a discipline approach should not always

be to punish; rather, it should try to regulate the negative behavior of employees to make

them better workers. Positive discipline is a corrective action which results in improved

performance, more productivity and effective workforce.

Harsh and negative punishment might work in the short term, but the end result will

eventually be employee dissatisfaction, low productivity, higher rate of absenteeism and high

turnover. This approach tries to mend the negative behavior of employees by first providing
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them counseling in terms of what is expected out of them and then giving oral and written

warnings to them. Termination or discharge in extreme cases may also take place. Steps of

positive discipline approach

1.

Counseling: Counseling is an important part of the discipline process, because itgives a supervisor the opportunity to identify employee work behavior problems and

discuss possible solutions with him. The goal of this phase is to make employee

aware of organizational policies and rules. Counseling by a supervisor in the work

unit can have positive effects also. Often, employees simply need to be made aware

of rules. An oral warning can also be given to employee during counseling.

Confrontation helps to understand the employee point of view as well. However,

proper training should be given to the supervisors regarding counseling skills to make

this process successful.2. Written warning: If employee behavior has not been improved by counseling

sessions, then a second conference is held between the supervisor and the employee.

This stage is documented in written form. As part of this phase, the employee and the

supervisor develop written solutions to prevent further problems from occurring.

3. Final warning: When the employee does not follow the written solutions, a finalwarning conference is held. In that conference the supervisor emphasizes to the

employee the importance of correcting the inappropriate actions. Some firms

incorporate a decision-day off, in which the employee is given a day off with pay todevelop a firm, written action plan to remedy the problem behaviors. The idea is to

impress on the offender the seriousness of the problem and the managers

determination to see that the behavior is changed.

4. Discharge: If the employee fails to follow the action plan that was developed andfurther problem behaviors exist, then the supervisor will discharge the employee.

The positive aspect of this approach is that it focuses on problem solving rather than

punishing and penalizing. This approach involves positive confrontation with the problem

employee and thus gives him an opportunity to justify himself. The supervisor makes him

aware of the company policies. The greatest difficulty with this is the extensive amount of

training required for supervisors and managers to become effective counselors. Also, the

process often takes more supervisory time than the progressive discipline approach


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Progressive Discipline ApproachIt is a step by step program designed to correct performance problems arising out of employee

misconduct. This approach typically follows four progressive steps to rectify offenses committed by

an employee. It suggests that actions to modify behavior become progressively more severe as the

employee continues to show improper behavior.

1. Oral reprimands: It is a verbal interaction between the employees and supervisor wherethey discuss the problem behavior and the expectations to change the behaviors. An oral

warning is issued as an informal reprimand that is simply noted in the record.

2. Written reprimand: It involves the documentation between employees and supervisor if thebehavior continues or if the employee further commits a serious offense. A written warning is

more official and summarizes the previous oral attempts. This written feedback is discussed

with the employee and then placed in his personnel file.

3. Suspension: The third step is suspension without pay; its purpose is to emphasize theseriousness of the offense and necessity of change.

4. Dismissal: The final step is dismissal of employee and is used only when previous steps havefailed to change unacceptable behavior.

Code Of Discipline In Industry

To maintain harmonious relations and promote industrial peace, a Code of Discipline has

been laid down which applies to both public and private sector enterprises. It specifies

various obligations for the management and the workers with the objective of promoting

cooperation between their representatives.

The basic objectives of Code of Discipline are to:

Maintain peace and order in industry. Promote constructive criticism at all levels of management and employment. Avoid work stoppage in industry Secure the settlement of disputes and grievances by a mutually agreed procedure Avoiding litigations Facilitate a free growth of trade unions
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Eliminate all forms of coercion, intimidation and violations of rules and regulationsgoverningindustrial relations.

The Code is based on the following principles:

There should be no strike or lockout without prior notice. No unilateral action should be taken in connection with any industrial matter. Employees should follow go slow tactics No deliberate damage should be caused to a plant or property Acts of violations, intimidation and coercion should not be resorted The existing machinery for the settlement of disputes should be utilized. Actions that disturb cordial relationships should be avoided.

To ensure better discipline in industry, management and unions agree on not indulging into

various actions. These actions can b summarized as follows:

Management and Union(s) agree

that no unilateral action should be taken in connection with any industrial matter andthat should be settled at appropriate level

that the existing machinery for settlement of disputes should be utilized with theutmost efficiency

that there should be no strike or lock-out without prior notice that neither party will have recourse to coercion, intimidation, victimization or go

slow tactics

that they will avoid litigation, sit-down and stay-in strikes and lock-outs that they will promote constructive co-operation between their representatives at all

levels and as between workers themselves

that they will establish upon a mutually agreed grievance procedure which will ensurea speedy and full investigation leading to settlement;

that they will abide by various stages in the grievance procedure and take no arbitraryaction which would by-pass this procedure; and

Management Agrees


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not to increase work-loads unless agreed upon or settled otherwise not to support or encourage any unfair labor practice such as discrimination and

victimization of any employee

to take prompt action for settlement of grievances and implementation of settlements,awards, decision and orders

to take appropriate disciplinary action against its officers and members in cases whereenquiries reveal that they were responsible for precipitate action by workers leading

to indiscipline

Union agrees

not to engage in any form of physical duress not to permit demonstrations which are not peaceful that their members will not engage or cause other employees to engage in any union

activity during working hours

to discourage unfair labor practices such as negligence of duty, damage to propertyand insubordination

to take prompt action to implement awards, agreements, settlements and decisions


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The progressive discipline model has two advantages for managers:

It gives the employee additional opportunities to correct his performance prior to discharge. It stresses the seriousness of repeated violations to employees.

This progressive discipline has the following disadvantages:

Progressive discipline may result into bitter relationships between supervisor and employee Supervisor may feel obligated to address every performance offence and assign an

appropriate punishment to it, even though it may not be required.

Management may focus only on the problem employees at the expense of the goodperformers, thereby consuming too much of a manager's time

Factors Guiding Code Of Conduct

The code of discipline and conduct communicates to the employees, the expected behavior and the

professional responsibilities. The significance of code of conduct is that each employee should

behave and perform in a way that preserves the company values and commitments. The code

expects employees to conduct business with integrity and honesty. Moreover, it expects the

employer to be an equal opportunity employer.

The Code of Conduct policy of a company is determined on the basis of following factors:

Honesty and integrity: The organization expects the employees to observe honesty andintegrity and such conduct should be fair and transparent. The employees should show

truthfulness in actions throughout their tenure in the organization

Disclosure of information: The employees should not disclose the company information tothird parties and other outside organizations. However the employers should reveal the

various policies of the organization to their employees and make them aware about the code

of conduct and other policies.

Harassment: The work environment should be free from all kinds of harassments,especially sexual harassments and verbal harassments. No physical harassments like hitting

or pushing are acceptable on part of employees.


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Outside employment: Employees should not indulge in to any kind of concurrentemployment without the prior knowledge of employer.

Conflict of interest: An employee should not indulge into other professions or services orother interests which might conflict with the interest of the company. This means personal

interests should not overshadow organizational interests.

Confidentiality:Employees should protect companys confidential information.The financial records and unpublished data should be kept within the organizations

and should not be spread outside the organization.

Equal opportunity employer: This factor expects the employer to be an equal opportunity,that is, no discrimination should be done on the basis of caste, color, race, gender, religion or

physical disabilities.

Misusing company resources: Employees should not misuse company resources,intellectual property, time and other facilities. They are provided to them for business

purposes and thus, should be used in a cost effective way.

Health and safety: An employer should provide a safe and healthy work environment to itsemployees. Proper cleanliness and lightening should be provided. A health and safety

committee can be set up by the employer consisting of representatives of workers as well.

Payment and gifts: The employees should neither accept nor offer any kind of illegalpayments, donations, remuneration and gifts from outsiders.


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Grievance In Industry

Grievance means any type of dissatisfaction or discontentments arising out of factors related to an

employees job which he thinks are unfair. A grievance arises when an employee feels that

something has happened or is happening to him which he thinks is unfair, unjust or inequitable. In

an organization, a grievance may arise due to several factors such as:

nt in promotion, etc.

Various sources of grievance may be categorized under three heads: (i) management policies, (ii)

working conditions, and (iii) personal factors

1. Grievance resulting from management policies include:o Wage rateso Leave policyo Overtimeo Lack of career planningo Role conflictso

Lack of regard for collective agreemento Disparity between skill of worker and job responsibility

2. Grievance resulting from working conditions include:o Poor safety and bad physical conditionso Unavailability of tools and proper machineryo Negative approach to discipline


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o Unrealistic targets3. Grievance resulting from inter-personal factors include

o Poor relationships with team memberso Autocratic leadership style of superiorso Poor relations with seniorso Conflicts with peers and colleagues

It is necessary to distinguish a complaint from grievance. A complaint is an indication of employee

dissatisfaction that has not been submitted in written. On the other hand, a grievance is a complaint

that has been put in writing and made formal.

Grievances are symptoms of conflicts in industry. Therefore, management should be concerned with

both complaints and grievances, because both may be important indicators of potential problems

within the workforce. Without a grievance procedure, management may be unable to respond to

employee concerns since managers are unaware of them. Therefore, a formal grievance procedure is

a valuable communication tool for the organization.

Grievance Procedure

Grievance procedure is a formal communication between an employee and the management

designed for the settlement of a grievance. The grievance procedures differ from organization to

organization.

1. Open door policy

2. Step-ladder policy

Open door policy: Under this policy, the aggrieved employee is free to meet the top executives of

the organization and get his grievances redressed. Such a policy works well only in small

organizations. However, in bigger organizations, top management executives are usually busy with

other concerned matters of the company. Moreover, it is believed that open door

policy is suitable for executives; operational employees may feel shy to go to top management.

Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step procedure


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for getting his grievance redressed. In this procedure, whenever an employee is confronted with a

grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with

superiors decision, then he discusses his grievance with the departmental head. The departmental

head discusses the problem with joint grievance committees to find a solution. However, if the

committee also fails to redress the grievance, then it may be referred to chief executive. If the chief

executive also fails to redress the grievance, then such a grievance is referred to voluntary arbitration

where the award of arbitrator is binding on both the parties.

GRIEVANCE PROCEDURE IN INDIAN INDUSTRY

The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established

grievance procedure for the country which would be acceptable to unions as well as to management.

In the 16th session of Indian Labor Conference, a model for grievance procedure was drawn up. This

model helps in creation of grievance machinery. According to it, workers representatives are to be

elected for a department or their union is to nominate them. Management has to specify the persons

in each department who are to be approached first and the departmental heads who are supposed to be

approached in the second step.

The Model Grievance Procedure specifies the details of all the steps that are to be followed while

redressing grievances. These steps are:

STEP 1: In the first step the grievance is to be submitted to departmental representative, who is a

representative of management. He has to give his answer within 48 hours.

STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee can

take his grievance to head of the department, who has to give his decision within 3 days.

STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he can

take the grievance to Grievance Committee. The Grievance Committee makes its recommendations

to the manager within 7 days in the form of a report. The final decision of the management on the

report of Grievance Committee must be communicated to the aggrieved employee within three days

of the receipt of report. An appeal for revision of final decision can be made by the worker if he is not

satisfied with it. The management must communicate its decision to the worker within 7 days.


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STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary arbitration

Causes Of Industrial Disputes

The causes of industrial disputes can be broadly classified into two categories: economic and

non-economic causes. The economic causes will include issues relating to compensation like

wages, bonus, allowances, and conditions for work, working hours, leave and holidays without

pay, unjust layoffs and retrenchments.

The non economic factors will include victimization of workers, ill treatment by staff members,


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sympathetic strikes, political factors, indiscipline etc.

Wages and allowances: Since the cost of living index is increasing, workers generally bargain

for higher wages to meet the rising cost of living index and to increase their standards of living. In

2002, 21.4% of disputes were caused by demand of higher wages and allowances. This percentagewas 20.4% during 2003 and during 2004 increased up to 26.2%. In 2005, wages and allowances

accounted for 21.8% of disputes.

Personnel and retrenchment: The personnel and retrenchment have also been an important

factor which accounted for disputes. During the year 2002, disputes caused by personnel were

14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003,

a similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while

2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of

the disputes were caused by personnel, and only 0.4% were caused by retrenchment.

Indiscipline and violence: From the given table, it is evident that the number of disputes

caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused

because of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and

41.6% of disputes were caused due to indiscipline respectively. During the year 2003, indiscipline

accounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed by

cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar

trend was observed in 2004 where indiscipline accounted for 40.4% of disputes.

Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the

disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and

2005 respectively.

Leave and working hours: Leaves and working hours have not been so important causes of

industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work

while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were

because of leaves and working hours.

Miscellaneous: The miscellaneous factors include

- Inter/Intra Union Rivalry

- Charter of Demands


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- Work Load

- Standing orders/rules/service conditions/safety measures

- Non-implementation of agreements and awards etc

Strikes

A strike is a very powerful weapon used by trade unions and other labor associations to get their

demands accepted. It generally involves quitting of work by a group of workers for the purpose of

bringing the pressure on their employer so that their demands get accepted. When workers

collectively cease to work in a particular industry, they are said to be on strike.

According to Industrial Disputes Act 1947, a strike is a cessation of work by a body of persons

employed in an industry acting in combination; or a concerted refusal of any number of persons

who are or have been so employed to continue to work or to accept employment; or a refusal under

a common understanding of any number of such persons to continue to work or to

accept employment. This definition throws light on a few aspects of a strike. Firstly, a strike is a

referred to as stoppage of work by a group of workers employed in a particular industry. Secondly,

it also includes the refusal of a number of employees to continue work under their employer.

In a strike, a group of workers agree to stop working to protest against something they think is

unfair where they work. Labors withhold their services in order to pressurize their employment or

government to meet their demands. Demands made by strikers can range from asking for higher

wages or better benefits to seeking changes in the workplace environment. Strikes sometimes

occur so that employers listen more carefully to the workers and address their problems.

Causes of strikes:

Strikes can occur because of the following reasons:

Dissatisfaction with company policy Salary and incentive problems Increment not up to the mark Wrongful discharge or dismissal of workmen Withdrawal of any concession or privilege Hours of work and rest intervals


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Leaves with wages and holidays Bonus, profit sharing, Provident fund and gratuity Retrenchment of workmen and closure of establishment Dispute connected with minimum wages

TYPES OF STRIKE

Economic Strike: Under this type of strike, labors stop their work to enforce their economicdemands such as wages and bonus. In these kinds of strikes, workers ask for increase in

wages, allowances like traveling allowance, house rent allowance, dearness allowance, bonus

and other facilities such as increase in privilege leave and casual leave.

Sympathetic Strike: When workers of one unit or industry go on strike in sympathy withworkers of another unit or industry who are already on strike, it is called a sympathetic strike.

The members of other unions involve themselves in a strike to support or express their

sympathy with the members of unions who are on strike in other undertakings. The workers

of sugar industry may go on strike in sympathy with their fellow workers of the textile

industry who may already be on strike.

General Strike: It means a strike by members of all or most of the unions in a region or anindustry. It may be a strike of all the workers in a particular region of industry to force

demands common to all the workers. These strikes are usually intended to create political

pressure on the ruling government, rather than on any one employer. It may also be an

extension of the sympathetic strike to express generalized protest by the workers.

Sit down Strike: In this case, workers do not absent themselves from their place of workwhen they are on strike. They keep control over production facilities. But do not work. Such

a strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of

employment, but they refuse to work. They also refuse to leave, which makes it very difficult

for employer to defy the union and take the workers' places. In June 1998, all the Municipal

Corporation employees in Punjab observed a pen down strike to protest against the non-

acceptance of their demands by the state government.

Slow Down Strike: Employees remain on their jobs under this type of strike. They do notstop work, but restrict the rate of output in an organized manner. They adopt go-slow tactics

to put pressure on the employers.

Sick-out (or sick-in): In this strike, all or a significant number of union members call in sick


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on the same day. They dont break any rules, because they just use their sick leave that was

allotted to them on the same day. However, the sudden loss of so many employees all on one

day can show the employer just what it would be like if they really went on strike.

Wild cat strikes: These strikes are conducted by workers or employees without the authorityand consent of unions. In 2004, a significant number of advocated went on wildcat strike at

the City Civil Court premises in Bangalore. They were protesting against some remarks

allegedly made against them by an Assistant Commissione

Prohibition of Strikes and Lock-Outs

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.

The notice of strike or lockout is not necessary when there is already a strike or lockout going on in

the company. However, a notice should be issued on the day on which the lockout is declared just

to intimate the appropriate authorities about the lockout. The employer is supposed to report the

number of notices of strikes received by him to the appropriate Government or the authority

prescribed by the government within the five days of receiving such notices.

Illegal Strikes and Lock-Outs

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, that is, if the notice period is not served or if the strike is

held within the fourteen days of issuing the notice of strike. If a strike or lockout has already taken

place and is being referred to a Board, the continuance of such a strike or lock out is not illegal

provided it is in compliance with the provisions of act. Moreover, a lockout declared in

consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not

be deemed to be illegal.


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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 fifty rupees or both. In similar way, an employer who

initiates and continues a lockout is punishable with imprisonment extendable to a month or with a

fine of one thousand rupees or both. According to Section 25 of Industrial Disputes Act 1947, no

person should provide any sort of financial aid to any illegal strike or lock-out. Any person who

knowingly provides such a help in support of any illegal strike or lock-out is punishable with

imprisonment for a term which may extend to six months, or with fine which may extend to one

thousand rupees, or with both.

Measures For Improving Industrial Relations

The following measures should be taken to achieve good industrial relations:

Strong and Stable Union: A strong and stable union in each industrial enterprise isessential for goodindustrial relations. The employers can easily ignore a weak union on the

plea that it hardly represents the workers. The agreement with such a union will hardly be

honored by a large section of workforce. Therefore, there must be strong and stable unions

in every enterprise to represent the majority of workers and negotiate with the management

about the terms and conditions of service.

Mutual Trust: Both management and labor should help in the development of anatmosphere of mutual cooperation, confidence and respect. Management should adopt a

progressive outlook and should recognize the rights of workers. Similarly, labor unions

should persuade their members to work for the common objectives of the organization.

Both the management and the unions should have faith in collective bargaining and other

peaceful methods of settling disputes

.

Workers Participation in Management: The participation of workers in the managementof the industrial unit should be encouraged by making effective use of works committees,

joint consultation and other methods. This will improve communication between managers

and workers, increase productivity and lead to greater effectiveness.

Mutual Accommodation. The employers must recognize the right of collectivebargaining of the trade unions. In any organization, there must be a great emphasis


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on mutual accommodation rather than conflict or uncompromising attitude. One must clearly

understand that conflicting attitude does not lead to amicable labor relations; it may foster

union militancy as the union reacts by engaging in pressure tactics. The approach must be of

mutual give and take rather than take or leave. The management should be willing to co-

operate rather than blackmail the workers.

Sincere Implementation of Agreements. The management should sincerely implement thesettlements reached with the trade unions. The agreements between the management and the

unions should be enforced both in letter and spirit. If the agreements are not implemented

then both the union and management stop trusting each other. An environment of uncertainty

is created. To avoid this, efforts should be made at both ends to ensure the follow up of the

agreements.

Sound Personnel Policies: The following points should be noted regarding the personnelpolicies. The policies should be:

1. Formulated in consultation with the workers and their representatives if they are tobe implemented effectively.

2. Clearly stated so that there is no confusion in the mind of anybody.3. Implementation of the policies should be uniform throughout the organization to

ensure fair treatment to each worker.

Governments Role: The Government should play an active role for promoting industrialpeace. It should make law for the compulsory recognition of a representative union in eachindustrial unit. It should intervene to settle disputes if the management and the workers are

unable to settle their disputes. This will restore industrial harmony.

Progressive Outlook: There should be progressive outlook of the management of eachindustrial enterprise. It should be conscious of its obligations and responsibilities to the

owners of the business, the employees, the consumers and the nation. The management must

recognize the rights of workers to organize unions to protect their economic and social

interests.


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Objectives Of Trade Unions

Trade unions are formed to protect and promote the interests of their members. Their primary

function is to protect the interests of workers against discrimination and unfair labor practices.

Trade unions are formed to achieve the following objectives:

Representation

Trade unions represent individual workers when they have a problem at work. If an employee feels

he is being unfairly treated, he can ask the union representative to help sort out the difficulty with

the manager or employer. Unions also offer their members legal representation. Normally this is to

help people get financial compensation for work-related injuries or to assist people who have to

take their employer to court.

NegotiationNegotiation is where union representatives, discuss with management, the issues which affect

people working in an organization. There may be a difference of opinion between

management and union members. Trade unions negotiate with the employers to find out a

solution to these differences. Pay, working hours, holidays and changes to working practices

are the sorts of issues that are negotiated. In many workplaces there is a formal agreement

between the union and the company which states that the union has the right to negotiate with

the employer. In these organizations, unions are said to be recognized for collective

bargaining purposes.

Voice in decisions affecting workersThe economic security of employees is determined not only by the level of wages and

duration of their employment, but also by the managements personal policies which include

selection of employees for lay offs, retrenchment, promotion and transfer. These policies

directly affect workers. The evaluation criteria for such decisions may not be fair. So, the

intervention of unions in such decision making is a way through which workers can have

their say in the decision making to safeguard their interests.

Member services

During the last few years, trade unions have increased the range of services they offer their

members. These include:


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o Education and training - Most unions run training courses for their members onemployment rights, health and safety and other issues. Some unions also help

members who have left school with little education by offering courses on basic

skills and courses leading to professional qualifications.

o Legal assistance - As well as offering legal advice on employment issues, someunions give help with personal matters, like housing, wills and debt.

o Financial discounts - People can get discounts on mortgages, insurance and loansfrom unions.

o Welfare benefits - One of the earliest functions of trade unions was to look aftermembers who hit hard times. Some of the older unions offer financial help to their

members when they are sick or unemployed.

Functions Of Trade Unions

Trade unions perform a number of functions in order to achieve the objectives. These functions can be

broadly classified into three categories:

(i) Militant functions,

(ii) Fraternal functions

Militant Functions

One set of activities performed by trade unions leads to the betterment of the position of their members

in relation to their employment. The aim of such activities is to ensure adequate wages, secure better

conditions of work and employment, get better treatment from employers, etc. When the unions fail to

accomplish these aims by the method of

collective bargaining and negotiations, they adopt an approach and put up a fight with the management in

the form of go-slow tactics, strike, boycott, gherao, etc. Hence, these functions of the trade unions are

known as militant or fighting functions. Thus, the militant functions of trade unions can be summed up as:

To achieve higher wages and better working conditions To raise the status of workers as a part of industry


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To protect labors against victimization and injusticeFraternal Functions

Another set of activities performed by trade unions aims at rendering help to its members in times ofneed, and improving their efficiency. Trade unions try to foster a spirit of cooperation and promote

friendlyindustrial relationsand diffuse education and culture among their members. They take up welfare

measures for improving the morale of workers and generate self confidence among them. They also

arrange for legal assistance to its members, if necessary. Besides, these, they undertake many welfare

measures for their members, e.g., school for the education of children, library, reading-rooms, in-door and

out-door games, and other recreational facilities. Some trade unions even undertake publication of some

magazine or journal. These activities, which may be called fraternal functions, depend on the availability

of funds, which the unions raise by subscription from members and donations from outsiders, and also ontheir competent and enlightened leadership. Thus, the fraternal functions of trade unions can be summed

up as:

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

Importance Of Trade Unions

The existence of a strong and recognized trade union is a pre-requisite to industrial peace.

Decisions taken through the process of collective bargaining and negotiations between employer

and unions are more influential. Trade unions play an important role and are helpful in effective

communication between the workers and the management. They provide the advice and support to

ensure that the differences of opinion do not turn into major conflicts. The central function of a

trade union is to represent people at work. But they also have a wider role in protecting their

interests. They also play an important educational role, organizing courses for their members on a

wide range of matters. Seeking a healthy and safe working environment is also prominent feature


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of union activity.

Trade unions help in accelerated pace of economic development in many ways as follows:

by helping in the recruitment and selection of workers.

by inculcating discipline among the workforce by enabling settlement of industrial disputes in a rational manner by helping social adjustments. Workers have to adjust themselves to the new working

conditions, the new rules and policies. Workers coming from different backgrounds may

become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

Trade unions are a part of society and as such, have to take into consideration the national

integration as well. Some important social responsibilities of trade unions include:

promoting and maintaining national integration by reducing the number of industrialdisputes

incorporating a sense of corporate social responsibility in workers achieving industrial peace

Reasons For Joining Trade Unions

The important forces that make the employees join a union are as follows:

1. Greater Bargaining Power

The individual employee possesses very little bargaining power as compared to that of his employer.

If he is not satisfied with the wage and other conditions of employment, he can leave the job. It is not

practicable to continually resign from one job after another when he is dissatisfied. This imposes a

great financial and emotional burden upon the worker. The better course for him is to join a union that

can take concerted action against the employer. The threat or actuality of a strike by a union is a

powerful tool that often causes the employer to accept the demands of the workers for betterconditions of employment.

2. Minimize Discrimination


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The decisions regarding pay, work, transfer, promotion, etc. are highly subjective in nature. The

personal relationships existing between the supervisor and each of his subordinates may

influence the management. Thus, there are chances of favoritisms and discriminations. A trade

union can compel the management to formulate personnel policies that press for equality of

treatment to the workers. All the labor decisions of the management are under close scrutiny of

the labor union. This has the effect of minimizing favoritism and discrimination.

3. Sense of Security

The employees may join the unions because of their belief that it is an effective way to secure

adequate protection from various types of hazards and income insecurity such as accident,

injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers and

compel the management to invest in welfare services for the benefit of the workers.

4. Sense of Participation

The employees can participate in management of matters affecting their interests only if they

join trade unions. They can influence the decisions that are taken as a result of collective

bargaining between the union and the management.

5. Sense of Belongingness

Many employees join a union because their co-workers are the members of the union. At times,

an employee joins a union under group pressure; if he does not, he often has a very difficult time

at work. On the other hand, those who are members of a union feel that they gain respect in the

eyes of their fellow workers. They can also discuss their problem with the trade union leaders.

6. Platform for self expression

The desire for self-expression is a fundamental human drive for most people. All of us wish to

share our feelings, ideas and opinions with others. Similarly the workers also want the

management to listen to them. A trade union provides such a forum where the feelings, ideas and

opinions of the workers could be discussed. It can also transmit the feelings, ideas, opinions and

complaints of the workers to the management. The collective voice of the workers is heard by

the management and give due consideration while taking policy decisions by the management.

7. Betterment of relationships

Another reason for employees joining unions is that employees feel that unions can fulfill the


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important need for adequate machinery for proper maintenance of employer-employee relations.

Unions help in betterment ofindustrial relationsamong management and workers by solving the

problems peacefully.

Trade Unionism In India

The trade unionism in India developed quite slowly as compared to the western nations. 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 growth of trade union movement was slow in this phase and later on the Indian Factory Act of

1881 was amended in 1891. Many strikes took place in the two decades following 1880 in all

industrial cities. These strikes taught workers to understand the power of united action even though

there was no union in real terms. Small associations like Bombay Mill-Hands Association came up

by this time.

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. Many of the leaders

of this organization were leaders of the national Movement. In 1926, Trade union law came up with

the efforts of Mr. N N Joshi that became operative from 1927. During 1928, All India Trade Union

Federation (AITUF) was formed.


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The third phase began with the emergence of independent India (in 1947). The partition of country

affected the trade union movement particularly Bengal and Punjab. By 1949, four central trade

union organizations were functioning in the country:

1.

The All India Trade Union Congress,2. The Indian National Trade Union Congress,3. The Hindu Mazdoor Sangh, and4. The United Trade Union Congress

The working class movement was also politicized along the lines of political parties. For instance

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 are also organized by the trade unions, as for example in the

Banking, Insurance and Petroleum industries.

Trade unions in India

The Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor

markets consist of three sectors:

1. The rural workers, who constitute about 60 per cent of the workforce.2. Organized sector, which employs 8 per cent of workforce, and3. 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.

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)


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10.Trade Unions Co-ordination Centre (TUCC)11.United Trade Union Congress (UTUC) and12.United Trade Union Congress - Lenin Sarani (UTUC - LS)

Industrial Relation Policy

Prior to 1991, the industrial relations system in India sought to control conflicts and disputes through

excessive labor legislations. These labor laws were protective in nature and covered a wide range of

aspects of workplace industrial relations like laws on health and safety of labors, layoffs and

retrenchment policies, industrial disputes and the like. The basic purpose of these laws was to protect

labors. However, these protectionist policies created an atmosphere that led to increased inefficiency in

firms, over employment and inability to introduce efficacy. With the coming of globalization, the 40 year

old policy of protectionism proved inadequate for Indian industry to remain competitive as the lack of

flexibility posed a serious threat to manufacturers because they had to compete in the international

market

With the advent of liberalization in1992, the industrial relations policy began to change. Now, the policy

was tilted towards employers. Employers opted for workforce reduction, introduced policies of voluntary

retirement schemes and flexibility in workplace also increased. Thus, globalization brought major

changes inindustrial relationspolicy in India. The changes can be summarized as follows:

Collective bargaining in India has mostly been decentralized, but now in sectors where it was notso, are also facing pressures to follow decentralization.

Some industries are cutting employment to a significant extent to cope with the domestic andforeign competition e.g. pharmaceuticals. On the other hand, in other industries where the

demand for employment is increasing are experiencing employment growths.

In the expansionary economy there is a clear shortage of managers and skilled labor. The number of local and enterprise level unions has increased and there is a significant reduction

in the influence of the unions.

Under pressure some unions and federations are putting up a united front e.g. banking. Another trend is that the employers have started to push for internal unions i.e. no outside

affiliation.


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HR policies and forms of work are emerging that include, especially in multi-national companies,multi-skills, variable compensation, job rotation etc. These new policies are difficult to

implement in place of old practices as the institutional set up still needs to be changed.

HRM is seen as a key component of business strategy. Training and skill development is also receiving attention in a number of industries, especially

banking and information technology.

introductions to industrial relations

Documents