ir notes karan a final

7/21/2019 IR Notes Karan a Final

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Dunlop's Contribution To Industrial Relations

1. One of the significant theories of industrial labor relations was put forth by JohnDunlop in the 1950s. According to Dunlop industrial relations system consists of three

agents - management organiations! wor"ers and formal#informal ways they areorganied and go$ernment agencies. %hese actors and their organiations are locatedwithin an en$ironment - defined in terms of technology! labor and product mar"ets! andthe distribution of power in wider society as it impacts upon indi$iduals and wor"place.&ithin this en$ironment! actors interact with each other! negotiate and useeconomic#political power in process of determining rules that constitute the output of theindustrial relations system. 'e proposed that three parties-employers! labor unions! andgo$ernment are the "ey actors in a modern industrial relations system. 'e also arguedthat none of these institutions could act in an autonomous or independent fashion.(nstead they were shaped! at least to some e)tent! by their mar"et! technological andpolitical conte)ts.%hus it can be said that industrial relationsindustrial relations is a

social sub system sub*ect to three en$ironmental constraints- the mar"ets! distributionof power in society and technology.

Dunlop+s model identifies three "ey factors to be considered in conducting an analysis ofthe management-labor relationship,

1. n$ironmental or e)ternal economic! technological! political! legal and socialforces that impact employment relationships.

. /haracteristics and interaction of the "ey actors in the employment relationship,labor! management! and go$ernment.

. ules that are deri$ed from these interactions that go$ern the employmentrelationship.

Dunlop emphasies the core idea of systems by saying that the arrangements in thefield of industrial relations may be regarded as a system in the sense that each of themmore or less intimately affects each of the others so that they constitute a group ofarrangements for dealing with certain matters and are collecti$ely responsible for certainresults2..

(n effect - (ndustrial relations is the system which produces the rules of the wor"place.3uch rules are the product of interaction between three "ey 2actors2 - wor"ers#unions!employers and associated organiations and go$ernment. %he Dunlop+s model gi$es

great significance to e)ternal or en$ironmental forces. (n other words! management!labor! and the go$ernment possess a shared ideology that defines their roles within therelationship and pro$ides stability to the system.
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Gandhiji's Approach

. 4ahatma andhi6s philosophy is based upon the 23ar$odoya2 principles of truth!non-$iolence and trusteeship! in which class harmony pre$ails. 'e considers trade

unions as essentially reformist organiations and economic institutions! which must beorganied on the basis of the assumption that capital and labour are not antagonisticbut are supplementary to each other. %hey should be a great family li$ing in unity andharmony capital not only loo"ing to the material welfare of the labourers but their moralwelfare also- capitalists being trustees of the welfare of the labouring classes underthem2 andhi*i+s $iew was that trade unions should not only underta"e the functionsconcerned with impro$ing the economic conditions of wor"ers! but must also try to raisethe moral and intellectual standards of labour and should bring about an all-roundde$elopment through internal efforts. %hey should also underta"e programmes forteaching supplementary occupations to their members so that uncertainty ofemployment during a stri"e may be reduced to the minimum.

. %he idea is to ta"e from capital labour+s due share and no more! and thls! not byparalying capital but by reform among labourers from within and by their own self-consciousness, not again through the cle$erness of non-labour leaders! but byeducating labour to e$ol$e its own leadership and its own self restraint! and its self-e)isting organiation. As a matter of fact! andhi*i was ne$er against stri"es as such.'e had himself led some stri"es in Ahmedabad and declared that a stri"e was an(nherent right of the wor"ing men for the purpose of securing *ustice! but it must beconsidered a crime immediately the capitalist accept the principle of arbitration.

7A8 %he causes of a sti"e must be *ust and only for redressal of genuine grie$ances!stri"es should be organied. 'e d not want wor"ers to resort to stri"es forunreasonable demands which the capitalist cannot meet without impairing theproduction unit.

7:8 %here should be practical unanimity among the stri"ers

7/8 3tri"es should be peaceful and non-$iolent- i.e.! the wor"er should refrain fromassaulting or abusing capitalist or their agents and a$oid $iolence against the non-stri"ers. $en damaging capitalist property is considered by andhi as $iolence.

7D8 &or"ers should underta"e stn"es only er ta"ing up alternati$e *obs for their li$ingduring the stri"e period.

;. 78 &or"ers should go on stri"e only after the capitalist failed to respond to moralappeals and only as a last resort andhi*i did not fa$our unions ta"ing part in politicalacti$ities for two reasons.


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legitimate means of settling disputes. andhi*i ne$er ad$ocated the agitational role oflabour. andhi*i did not yield himself to 4ar)ian concept of class struggle and head$ocated class-collaboration! mutual confidence and self-sacred heartedness as thepillars of the relations between capital and labour. (f wor"ers are properly organied!they ha$e more wealth and resources through their own labour than the capitalist

through their money. andhi*i was in fa$our of organiing trade unions. According to himthe thoughts and methods of western thin"ers would fail to sol$e! the problems of ourcountry. %he structure of the trade unions ine$itably lea$es its stamp on the character ofits member wor"ers. %he union should ma"e labour the master of the means ofproductions.

5. andhiJi suggested that the unions should e)pand its acti$ities to increase thewelfare of the members. %his will enhance their will power to participate more in thewor"ing and functioning of trade unions. andhi*i spelled out the duties of the tradeunions as,

7a8 %o ma"e arrangement for educating both men and women. %his is to be regularly

underta"en through night schools.

7b8 /hildren of the labourers should be educated.

7c8 %here should be a hospital and creche and a matem=ty home attached to e$erycentre

7d8 >abour should be able to support itself during the stri"es. andhiJi ad$ised thewor"ers that while forming their unions! they must select their cpresentat=$cs carefully.

?. MARXIST APPROACH 4ar)ists li"e pluralists also regard conflict asine$itable but see it as a product of capitalistic society where as pluralist belie$e that the

conflict is ine$itable in all organiations


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TU (NY) Who can form union, Registration, Recognition, Civiland Criminal Immunity, egislation, Why Union !ecline" ,#anagerial TU$ !ef$ of Industry, !ef$ of Wor%man, Women inTU, #ulti&le Union

(N!' Case),a$ C and TU, Wages

$ Unfair aor 'ractices,

B. %rade union is a $oluntary organiation of wor"ers pertaining to a particular trade!industry or a company and formed to promote and protect their interests and welfare bycollecti$e action. %hey are the most suitable organisations for balancing and impro$ingthe relations between the employer and the employees. %hey are formed not only tocater to the wor"ers+ demand! but also for inculcating in them the sense of discipline and

responsibility. %hey aim to,-

3ecure fair wages for wor"ers and impro$e their opportunities for promotion and

training.

3afeguard security of tenure and impro$e their conditions of ser$ice.

(mpro$e wor"ing and li$ing conditions of wor"ers.

Cro$ide them educational! cultural and recreational facilities.


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9. De,inition. According to the Trade -nions Act!"()$! 'trade union' *eans.an/ co*bination! 0hether te*porar/ or per*anent! ,or*ed pri*aril/ ,or thepurpose o, reulatin the relations bet0een 0or1*en and e*plo/ers or bet0een0or1*en and 0or1*en or bet0een e*plo/ers and e*plo/ers! or

,or i*posin restrictie conditions on the conduct o, an/ trade or business!

and includes an/ ,ederation o, t0o or *ore trade unions 2.

10. %hus! technically! there can be Funion6 of employers also! though! almostuni$ersally! the term Ftrade union6 is associated with union of wor"men or employees.

2ho can ,or* T- and ho0

11. %he basic pro$isions of the Act are,-

%he Act pro$ides for the registration of the trade unions with the +egistrars of

%rade nions+ set up in different 3tates! li"e the O,,ice o, Reistrar 3Trade

-nion4set up by the o$ernment of Gational /apital %erritory of Delhi.


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disabilit/ or at an/ disadantae as co*pared 0ith other *e*bers o, the unionb/ reason o, his contribution to the said ,und5

15. I**unit/ to Trade -nion Me*bers

3a4 6o o,,ice&bearer or *e*ber o, a reistered trade union shall be liable

to punish*ent under the Indian Penal Code in respect o, an/ aree*ent*ade bet0een the *e*bers ,or the purpose o, ,urtherin an/ such objecto, the trade union as speci,ied in the Act! unless the aree*ent is anaree*ent to co**it an o,,ence5 Thus! o,,ice bearer o, trade union cannotbe prosecuted ,or cri*inal conspirac/ in respect o, aree*ent relatin toobject o, trade union5

3b4 I**unit/ ,ro* ciil suit 8 A ciil suit or other leal proceedin is not*aintainable aainst an/ reistered trade union or o,,ice bearer in,urtherance o, trade union actiit/ on the round that

3i4 such act induces so*e person to brea1 a contract o, e*plo/*ent3ii4 It is in inter,erence 0ith the trade! business or e*plo/*ent

o, so*e other person59section"#3"4:5

3c4 6o suit or other leal proceedin shall be *aintainable in an/ ciilcourt aainst an/ reistered trade union or an/ o,,ice&bearer or *e*berthereo, in respect o, an/ act done in conte*plation or ,urtherance o, atrade dispute to 0hich a *e*ber o, the trade union is a part/ on theround onl/ that such an act induces so*e other person to brea1 acontract o, e*plo/*ent! or that it is in inter,erence 0ith the trade! businessor e*plo/*ent o, so*e other person or 0ith the riht o, so*e otherperson to dispose o, his capital o, his labour as he 0ills .

3d4 A person shall be dis;uali,ied ,or bein chosen as! and ,or bein a*e*ber o,! the e7ecutie or an/ other o,,ice&bearer or reistered tradeunion i,&

3i4 he has not attained the ae o, eihteen /earsimited 4embership. The nu*ber o, trade unions in India has increasedconsiderabl/5 ut this has been ,ollo0ed b/ the declinin *e*bership per union.

. Multiplicit/ o, -nions5 There e7ist seeral trade unions in the sa*eestablish*ent5 The *ultiplicit/ o, unions is the result o, outside leadership andlabour la0s5 The la0 per*its and ies sanctit/ to s*all unions5 An/ seenpersons can ,or* a union under the Trade -nions Act! "()$5 This Act con,ersrihts on such a union5 It is allo0ed under the Act to raise disputes! ,ile suits! oto conciliation and een barain 0ith e*plo/ers5 There,ore! s*all sections o,

0or1ers are encouraed to ,or* separate -nions5 There is no restriction on thenu*ber o, unions to be reistered in one establish*ent5

Industrial Disputes Act


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;. Industrial disputes are the disputes 0hich arise due to an/ disaree*ent inan industrial relation5 The ter* 'industrial relation' inoles arious aspects o,interactions bet0een the e*plo/er and the e*plo/ees< a*on the e*plo/ees as0ell as bet0een the e*plo/ers5 In such relations 0heneer there is a clash o,interest! it *a/ result in dissatis,action ,or either o, the parties inoled and

hence lead to industrial disputes or con,licts5 These disputes *a/ ta1e arious,or*s such as protests! stri1es! de*onstrations! loc1&outs! retrench*ent!dis*issal o, 0or1ers! etc.

5. 3ome of the important causes of an industrial dispute are,-

Demand for higher wages and allowances.

Demand for payment of bonus and determination of its rate thereof.

Demand for higher social security benefits.

Demand for good and safer wor"ing conditions! including length of a wor"ing day!

the inter$al and fre@uency of leisure and physical wor" en$ironment.

Demand for impro$ed labour welfare and other benefits. is the *ain leislation ,orinestiation and settle*ent o, all industrial disputes5 The Act enu*erates thecontinencies 0hen a stri1e or loc1&out can be la0,ull/ resorted to! 0hen the/can be declared illeal or unla0,ul! conditions ,or la/in o,,! retrenchin!discharin or dis*issin a 0or1*an! circu*stances under 0hich an industrialunit can be closed do0n and seeral other *atters related to industriale*plo/ees and e*plo/ers.

B. Got Role in IR %he Act is administered by the Ministr/ o, Eabourthroughits Industrial Relations Diision. %he Di$ision is concerned with impro$ing theinstitutional framewor" for dispute settlement and amending labour laws relating toindustrial relations. (t wor"s in close co-ordination with the Central Industrial Relations

Machiner/ 3CIRM4in an effort to ensure that the country gets a stable! dignified andefficient wor"force! free from e)ploitation and capable of generating higher le$els ofoutput. %he /(4! which is an attached office of the 4inistry of >abour! is also "nown asthe Chie, Eabour Co**issioner 3Central4 9CEC3C4: Oranisation. %he /(4 isheaded by the /hief >abour /ommissioner 7/entral8. (t has been entrusted with the tas"of maintaining industrial relations! enforcement of labour laws and $erification of tradeunion membership in central sphere. (t ensures harmonious industrial relations through,-
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4onitoring of industrial relations in /entral 3phereE

(nter$ention! mediation and conciliation in industrial disputes in order to bring

about settlement of disputesE

(nter$ention in situations of threatened stri"es and loc"outs with a $iew to a$ert

the stri"es and loc"outsE

(mplementation of settlements and awards.

. De,inition According to the Act! the ter* 'industrial dispute' *eans .an/dispute or di,,erence bet0een e*plo/ers and e*plo/ers! or bet0een e*plo/ersand 0or1*en! or bet0een 0or1*en and 0or1*en! 0hich is connected 0ith thee*plo/*ent or non&e*plo/*ent! or the ter*s o, e*plo/*ent or 0ith theconditions o, labour! o, an/ person.. %he basic ob*ecti$es of the Act are,-

%o pro$ide a suitable machinery for the *ust! e@uitable and peaceful settlement of

industrial disputes.

%o promote measures for securing and preser$ing amity and good relations

between employers and employees.

%o pre$ent illegal stri"es and loc"outs.

%o pro$ide relief to wor"ers against layoffs! retrenchment! wrongful dismissal and

$ictimisation.

%o promote collecti$e bargaining.

%o ameliorate the conditions of wor"ers.

%o a$oid unfair labour practices.

9. .industrial establish*ent or underta1in. means an establishment orunderta"ing in which any industry is carried on,

0. Industr/ - 3ection 7*8 of the (ndustrial Disputes Act! 19;B! as any business!trade! underta"ing! manufacture! calling of employers! and includes any calling! ser$ice!employment! handicraft! industrial occupation or a$ocation of wor"men. %he first partsays that industry means any business! trade! underta"ing! manufacture or calling ofemployers and the second part of the definition of industry says that it includes anycalling! ser$ice! employment! handicraft! or industrial occupation or a$ocation of

wor"men5

1. Dispute Resolution Machiner/ b/ Got. nder the Act! a statutor/*achiner/ has been constituted ,or conciliation and adjudication o, industrialdisputes5(t includes,-

Appoint*ent o, 'Conciliation O,,icers'! b/ appropriate Goern*ent!

chared 0ith the dut/ o, *ediatin in and pro*otin the settle*ent o,


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industrial disputes5 HeF she *a/ be appointed ,or a speci,ied area! or ,orspeci,ied industries in a speci,ied area! or ,or one or *ore speci,iedindustries! either per*anentl/ or ,or a li*ited period5 It is the dut/ o, theseo,,icers to brin both the e*plo/ees and e*plo/ers toether and help the*to resole their di,,erences5 I, the dispute is settled! heF she shall send a

report! to that e,,ect! to the appropriate Goern*ent5

The appropriate Goern*ent *a/! as occasion arises! constitute a 'oard

o, Conciliation'! 0hich shall consist o, a chair*an and t0o or ,our other*e*bers! as the appropriate Goern*ent thin1s ,it5 The Chair*an shall bean independent person and the other *e*bers shall be persons appointedin e;ual nu*bers to represent the parties to the dispute5 2here a disputehas been re,erred to a oard! it shall! 0ithout dela/! inestiate the disputeand do all such thins as it thin1s ,it ,or the purpose o, inducin the partiesto co*e to a ,air and a*icable settle*ent o, the dispute5

The appropriate Goern*ent *a/! as occasion arises! also constitute a

'Court o, In;uir/' to in;uire into an/ *atter appearin to be connected 0ithor releant to an industrial dispute5 It shall! therea,ter! report about it to theGoern*ent ordinaril/ 0ithin a period o, si7 *onths ,ro* theco**ence*ent o, its in;uir/5 Such a court *a/ consist o, one independentperson or o, such nu*ber o, independent persons as the appropriateGoern*ent *a/ thin1 ,it and 0here it consists o, t0o or *ore *e*bers!one o, the* shall be appointed as the chair*an5

The appropriate Goern*ent *a/ constitute one or *ore 'Eabour Courts' to

adjudicate industrial disputes relatin to an/ *atter speci,ied in the secondschedule li1e issues related to standin orders! dischare or dis*issal o,

0or1ers! illealit/ or other0ise o, stri1es and loc1outs! 0ithdra0al o, an/custo*ar/ bene,it! etc5 and to per,or* such other ,unctions as *a/ beassined to the* under the Act5 A labour court shall consist o, one persononl/ to be appointed b/ the appropriate Goern*ent5

The appropriate Goern*ent *a/ constitute one or *ore 'Industrial

Tribunals' to adjudicate industrial disputes relatin to an/ *atter! 0hetherspeci,ied in the second schedule or third schedule! and to per,or* suchother ,unctions as *a/ be assined to the* under the Act5 A tribunal shallconsist o, one person onl/ to be appointed b/ the appropriate Goern*ent5The third schedule coers the *atters such as 0aes! bonus! allo0ancesand certain other bene,its! certain 0or1in conditions! discipline!rationalisation! retrench*ent and closure o, establish*ent5

%he /entral o$ernment may! by notification in the Official aette! constitute

one or more +Gational (ndustrial %ribunals+ to ad*udicate an industrial disputewhich! in the opinion of the /entral o$ernment! in$ol$e @uestions of nationalimportance or are of such a nature that industrial establishments situated in morethan one 3tate are li"ely to be interested in! or affected by! such disputes. 3uch atribunal shall consist of one person only to be appointed by the /entral


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o$ernment.

%he Act also ma"es it obligatory for an employer to set up a +rie$ance

3ettlement Authority 73A8+ in an industrial establishment in which fifty or morewor"ers ha$e been employed in the preceding twel$e months. %his authorityshall ha$e the responsibility to settle industrial disputes concerning an indi$idualwor"er employed in that establishment.

. Go reference can be made under the Act to /onciliation :oards! >abour /ourtsor (ndustrial %ribunals! unless the dispute has first been the sub*ect of a decision of arie$ance 3ettlement Authority.

. Accordingly! Central Goern*ent Industrial Tribunals 3CGITs4 &cu*& EabourCourtsha$e been set up in different parts of the country. %here are at present ">CGITsto whom industrial disputes could be referred for ad*udication. Out of these/(%s! /(%s namely 4umbai-( and Kol"ata ha$e been declared as Gational(ndustrial %ribunals.

;. :esides! the Orani@ation o, the Chie, Eabour Co**issioner3 Central4actsas the primary conciliatory agency in the /entral o$ernment for industrial disputes.%here are the Reional Eabour Co**issioners 3Central4and Assistant EabourCo**issioners 3Central4who on behalf of the /hief >abour /ommissioner 7/entral8act as /onciliatory Officers in different parts of the country.

Industrial dispute a*end*ent act )%"%

%he Act contains ;0 3ections di$ided into B /hapters! as under,-

/hapter-( deals with the title! definitions! etc.

/hapter-(( contains &or"s /ommittee in an industrial establishment in which onehundred or more wor"men are employed consisting of representati$es of employersand wor"men engaged in the establishment. %he main purpose of the &or"s/ommittee to promote measures for securing and preser$ing amity and goodrelations between the employer and wor"men and! to that end! to comment uponmatters of their common interest or concern and endea$or to compose any materialdifference of opinion in respect of such matters. %his /hapter also pro$ides for $ariousauthorities such as /onciliation Officers! >abour /ourts and %ribunals.

/hapter ((( contains the main scheme of the Act such as reference of disputes tolabour /ourts and (ndustrial %ribunals.

/hapter-(L lays down the procedure! power and duties of the authorities constitutedunder the Act.

/hapter L contains pro$isions to prohibit stri"es and loc"-outs! declaration of stri"esand loc"-outs illegal! and pro$isions relating to lay-off and retrenchment and closure
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which are applicable to establishments employing 100 and more wor"ers.

/hapter L( contains pro$isions of $arious penalties under the Act.

Chapter II contains *iscellaneous proisions5

The a*ended Act proides to establish a Grieance Redressal Machiner/

3GRM4 0ithin industrial establish*ent hain )% or *ore 0or1*en 0ith onestae appeal at the head o, the establish*ent ,or resolution o, disputesarisin out o, indiidual rieances5 2ith this a*end*ent! the 0or1*an0ill et one *ore alternatie rieance redressal *echanis* ,or theresolution o, his dispute 0ithin the orani@ation itsel, 0ith *ini*u*necessit/ ,or adjudication5 The concept o, GRM 0ill in no 0a/ a,,ect theriht o, the 0or1*an to raise dispute on the sa*e issue under theproision o, Industrial Disputes Act! "(>.

5. De,inition o, Retrench*ent. 2retrenchment means the termination by theemployer of the ser$ice of a wor"man for any reason whatsoe$er! otherwise than as a

punishment inflicted by way of disciplinary action! but does not includeM

7a8 $oluntary retirement of the wor"manE or

7b8 retirement of the wor"man on reaching the age of superannuation if thecontract of employment between the employer and the wor"man concernedcontains a stipulation in that behalfE or

7c8 termination of the ser$ice of the wor"man as a result of the non-renewal of thecontract of employment between the employer and the wor"man concerned onits e)piry or of such contract being terminated under a stipulation in that behalfcontained thereinE orI

7d8 termination of the ser$ice of a wor"man on the ground of continued ill-healthEI

?. De,initions

B. Settle*ent. 2settlement2 means a settlement arri$ed at in the course ofconciliation proceeding and includes a written agreement between the employer andwor"men arri$ed at otherwise than in the course of conciliation proceeding where suchagreement has been signed by the parties thereto in such manner as may be


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prescribed and a copythereof has been sent to 1NHan officer authorised in this behalf byIthe appropriate o$ernment and the conciliation officerEI

. Stri1e. 2stri"e2 means a cessation of wor" by a body of persons employedin any industry acting in combination or a concerted refusal! or a refusal under acommon understanding! of any number of persons who are or ha$e been so employedto continue to wor" or to accept employmentE

9. 2trade union2 means a trade union registered under the %rade nions Act! 19?71? of 19?8EI

;0. 2%ribunal2 means an (ndustrial %ribunal constituted under section BA and includesan (ndustrial %ribunal constituted before the 10th day of 4arch! 195B! under this ActEI

;1. 2unfair labour practice2 means any of the practices specified in the


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7i$8 who! being employed in a super$isory capacity! draws wages e)ceeding onethousand si7 hundred rupees per *ense*or e)ercises! either by the natureof the duties attached to the office or by reason of the powers $ested in him!functions mainly of a managerial nature.

;;. Dismissal! etc.! of an indi$idual wor"man to be deemed to be an industrialdispute. &here any employer discharges! dismisses! retrenches! or otherwiseterminates the ser$ices of an indi$idual wor"man! any dispute or difference betweenthat wor"man and his employer connected with! or arising out of! such discharge!dismissal! retrenchment or termination shall be deemed to be an industrial disputenotwithstanding that no other wor"man nor any union of wor"men is a party to thedispute.

;5. &or"s /ommittee.- 718 (n the case of any industrial establishment in which onehundred or more wor"men are employed or ha$e been employed on any day in thepreceding twel$e months! the appropriate o$ernment may by general or special orderre@uire the employer to constitute in the prescribed manner a &or"s /ommittee

consisting of representati$es of employers and wor"men engaged in the establishmentso howe$er that the nu*ber o, representaties o, 0or1*en on the Co**ittee shallnot be less than the nu*ber o, representaties o, the prescribed *anner ,ro*a*on the 0or1*en enaed in the establish*ent and in consultation 0ith theirtrade union! i, an/! reistered under the Indian Trade -nions Act! "()$ 3"$ o,"()$8. 78 (t shall be the duty of the &or"s /ommittee to promote measures for securingand preser$ing amity and good relations between the employer and wor"men and! tothat end! to comment upon matters of their common interest or concern and endea$ourto compose any material difference of opinion in respect of such matters.

;?. Gotice of change.- Go employer! who proposes to effect any change in the

conditions of ser$ice applicable to any wor"man in respect of any matter specified in the


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9/. 3etting up of rie$ance 3ettlement Authorities and reference of certain indi$idualdisputes to such authorities.-718 %he employer in relation to e$ery industrialestablishment in which fifty or more wor"men are employed or ha$e been employed onany day in the preceding twel$e months! shall pro$ide for! in accordance with the rulesmade in that behalf under this Act! a rie$ance 3ettlement Authority for the settlement

of industrial disputes connected with an indi$idual wor"man employed in theestablishment.

78 &here an industrial dispute connected with an indi$idual wor"man arises in anestablishment! a wor"man or any trade union of wor"men of which such wor"man is amember! refer! such dispute to the rie$ance 3ettlement Authority pro$ided for by theemployer.

78 %he rie$ance 3ettlement Authority shall follow such procedure and complete itsproceedings within such period as may be prescribed.

7;8 Go reference shall be made under /hapter ((( of (D A/% with respect to any dispute

referred to in /hap of (D act unless dispute has been referred to the rie$ance3ettlement Authority concerned and the decision of the rie$ance 3ettlement Authorityis not acceptable to any of the parties to the dispute.

10. eference of disputes to :oards! /ourts or %ribunals.- 718 NH&here the appropriateo$ernment is of opinion that any industrial dispute e)ists or is apprehended! it may atany timeI! by order in writing!--

7a8 refer the dispute to a :oard for promoting a settlement thereofE or

7b8 refer any matter appearing to be connected with or rele$ant to the dispute to a /ourtfor in@uiryE or

7c8 refer the dispute or any matter appearing to be connected with! or rele$ant to! thedispute! if it relates to any matter specified in the 3econd 3chedule! to a >abour /ourtfor ad*udicationE or

7d8 refer the dispute or any matter appearing to be connected with! or rele$ant to! thedispute! whether it relates to any matter specified! in the 3econd 3chedule or the %hird3chedule! to a %ribunal for ad*udication, Cro$ided that where the dispute relates to anymatter specified in the %hird 3chedule and is not li"ely to affect more than one hundredwor"men! the appropriate o$ernment may! if it so thin"s fit! ma"e the reference to a>abour /ourt

ead /hap of (D act for further studies

10A. oluntar/ re,erence o, disputes to arbitration.

NH10A. Loluntary reference of disputes to arbitration.-


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718 &here any industrial dispute e)ists or is apprehended and the employer and thewor"men agree to refer the dispute to arbitration! they may! at any time before thedispute has been referred under section 10 to a >abour /ourt or %ribunal or Gational%ribunal! by a written agreement! refer the dispute to arbitration

;NH71A8 &here an arbitration agreement pro$ides for a reference of the dispute to ane$en number of arbitrators! the agreement shall pro$ide for the appointment of anotherperson as umpire who shall enter upon the reference! if the arbitrators are e@uallydi$ided in their opinion! and the award of the umpire shall pre$ail and shall be deemedto be the arbitration award for the purposes of this Act.

CHAPTR I PROCD-R! PO2RS A6D D-TIS O? A-THORITIS

""5 Procedure and po0ers o, conciliation o,,icers! oards! Courts and Tribunals.

78 $ery :oard! /ourt! 1NH>abour /ourt! %ribunal and Gational %ribunalI shall ha$e the

same powers as are $ested in a /i$il /ourt under the /ode of /i$il Crocedure! 190 75of 1908! when trying a suit! in respect of the following matters! namely,--

7a8 enforcing the attendance of any person and e)amining him on oathE

7b8 compelling the production of documents and material ob*ectsE

7c8 issuing commissions for the e)amination of witnessesE

7d8 in respect of such other matters as may be prescribedE and e$ery in@uiry orin$estigation by a :oard! /ourt! NH>abour /ourt! %ribunal or Gational %ribunalI! shall bedeemed to be a *udicial proceeding within the meaning of sections 19 and of the

(ndian Cenal /ode 7;5 of 1?08.

7;8 A conciliation officer NHmay enforce the attendance of any person for the purpose ofe)amination of such person or call forI and inspect any document which he has groundfor considering to be rele$ant to the industrial dispute ;NHor to be necessary for thepurpose of $erifying the implementation of any award or carrying out any other dutyimposed on him under this Act! and for the aforesaid purposes! the conciliation officershall ha$e the same powers as are $ested in a /i$il /ourt under the /ode of /i$ilCrocedure! 190 75 of 1908! NHin respect of enforcing the attendance of any personand e)amining him or of compelling the production of documentsI.

5NH758 A /ourt! >abour /ourt! %ribunal or Gational %ribunal may! if it so thin"s fit! appointone or more persons ha$ing special "nowledge of the matter under consideration asassessor or assessors to ad$ise it in the proceeding before it.

7?8 ;NH11A. Po0ers o, Eabour Courts! Tribunals and 6ational Tribunals to gi$eappropriate relief in case of discharge or dismissal of wor"men.- &here an industrialdispute relating to the discharge or dismissal of a wor"man has been referred to a>abour /ourt! %ribunal or Gational %ribunal for ad*udication and! in the course of thead*udication proceedings! the >abour /ourt! %ribunal or Gational %ribunal! as the case


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may be! is satisfied that the order of discharge or dismissal was not *ustified! it may! byits award! set aside the order of discharge or dismissal and direct reinstatement of thewor"man on such terms and conditions! if any! as it thin"s fit! or gi$e such other relief tothe wor"man including the award of any lesser punishment in lieu of discharge ordismissal as the circumstances of the case may re@uire, Cro$ided that in any

proceeding under this section the >abour /ourt! %ribunal or Gational %ribunal! as thecase may be! shall rely only on the materials on record and shall not ta"e any freshe$idence in relation to the matter.I

1 758 (f! on a consideration of the report reconciliation officer! the appropriateo$ernment is satisfied that there is a case for reference to a :oard! NH>abour /ourt!%ribunal or Gational %ribunal!I it may ma"e such reference. &here the appropriateo$ernment does not ma"e such a reference it shall record and communicate to theparties concerned its reasons therefor.

7?8 A report under this section shall be submitted within fourteen days of thecommencement of the conciliation proceedings or within such shorter period as may be

fi)ed by the appropriate o$ernment, the time for the submission of the report may bee)tended by such period as may be agreed upon in writing by all the parties to thedispute.I

758 %he :oard shall submit its report under this section within two months of the date!1NHon which the dispute was referred to it. %he appropriate o$ernment may from timeto time e)tend the time for the submission of the report by such further periods note)ceeding two months in the aggregate, Cro$ided further that the time for thesubmission of the report may be e)tended by such period as may be agreed on inwriting by all the parties to the dispute.

Duties of /ourts. 1;. Duties of /ourts.- A /ourt shall in@uire into the matters referred toit and report thereon to the appropriate o$ernment ordinarily within a period of si)months from the commencement of its in@uiry.

Duties of >abour /ourts! %ribunals and Gational %ribunals. &here an industrial disputehas been referred to a >abour /ourt! %ribunal or Gational %ribunal for ad*udication! itshall hold its proceedings e)peditiously and shall! within the period specified in the orderreferring such industrial dispute or the further period e)tended! submit its award to theappropriate o$ernment.

CHAPTR STRIJS A6D EOCJ&O-TS

))5 Prohibition o, stri1es and loc1&outs5&

3"4 6o person e*plo/ed in a public utilit/ serice shall o on stri1e in breach o,contractK

3a4 0ithout iin to the e*plo/er notice o, stri1e! as herein&a,ter proided!0ithin si7 0ee1s be,ore stri1in< or


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3b4 0ithin ,ourteen da/s o, iin such notice< or

3c4 be,ore the e7pir/ o, the date o, stri1e speci,ied in an/ such notice asa,oresaid< or

3d4 durin the pendenc/ o, an/ conciliation proceedins be,ore a

conciliation o,,icer and seen da/s a,ter the conclusion o, suchproceedins5

3)4 6o e*plo/er carr/in on an/ public utilit/ serice shall loc1&out an/ o, his0or1*enK

3a4 0ithout iin the* notice o, loc1&out as hereina,ter proided! 0ithinsi7 0ee1s be,ore loc1in out< or

3b4 0ithin ,ourteen da/s o, iin such noticeO has defined collecti$e bargaining as QGegotiations about wor"ing

conditions and terms of employment between an employer and a group of employees or

one or more employee6s organiations with a $iew to reaching an agreement wherein

the terms ser$e as a code of defining the rights and obligations of each party in their

employment! relations with one anotherE fi) a large number of detailed conditions of

employmentE and! during its $alidity! none of the matters it deals with can in normal

circumstances be gi$en as a ground for a dispute concerning an indi$idual wor"erR

Indiidual and Collectie Disputes

enerally spea"ing! employment disputes are di$ided into two categories, indi$idual

and collecti$e disputes. As the term implies! indi$idual disputes are those in$ol$ing a

single wor"er whereas collecti$e disputes in$ol$e groups of wor"ers usually

represented by a trade union.

/ollecti$e disputes can further be di$ided into two sub-categories,

rights disputes and interests disputes. A rights dispute arises where there is

disagreement o$er the implementation or interpretation of statutory rights! or the rights

set out in an e)isting collecti$e agreement.

:y contrast! an interest dispute concerns cases where there is disagreement o$er the

determination of rights and obligations! or the modification of those already in e)istence.

(nterest disputes typically arise in the conte)t of collecti$e bargaining where a collecti$eagreement does not e)ist or is being renegotiated.

?actors Inhibitin Collectie arainin in India%hough it is argued that collecti$e

bargaining has grown in (ndia due to the statutory pro$isions and $oluntary measures!

its success is limited. /ollecti$e bargaining has not made headway in (ndia when

compared to other industrialised nations. %he reasons are,


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7a8 &ea" nions /ollecti$e bargaining process mainly depends on the strength of

unions. (ndian unions are mar"ed with multiplicity! inter and intra-union ri$alry! wea"

financial position and nonrecognition. &ea" trade unions cannot initiate strong

arguments during negotiations.

7b8 Croblems from o$ernment %he o$ernment has not been ma"ing any strongeffects for the de$elopment of collecti$e bargaining. %he regulatory framewor" co$ering

the industrial relations scene is @uite tight! lea$ing $ery little room for bargaining to

flourish on a $oluntary basis.

7c8 >egal Croblems Gow ad*udication is easily accessible. Go attempt has been made

by the o$ernment to rationalise or simplify the multifarious laws co$ering labour

management relations.

7d8 Attitude of 4anagement mployers ha$e failed to read the writing on the wall. %hey

do not appreciate the fact that unions ha$e come to stay with almost e@ual bargainingstrength. 3uch negati$e attitudes ha$e come in the way of negotiating with unions

$oluntarily.

7e8 mployers ncertainty about &ho is the ecognised :argaining Agent mployers

are often not $ery sure about who is the recognised bargaining agent. &hen there are

multiple unions! bargaining with one union may pro$e to be a tough battle.

7f8 3tatutory


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%he dissatisfaction may be e)pressed or implied. )pressed grie$ances are

comparati$elyeasy to recognise and are manifested in se$eral ways eg, - gossiping!

acti$e criticism! argumentation! poor wor"manship etc.! une)pressed grie$ances are

indicated by indifference to wor"! daydreaming! absenteeism! tardiness etc. %he

discontent may be $alid! legitimate and rational or untrue and irrational or completely

ludicrous. %he point is that when a grie$ance held by an employee comes to the notice

of the management it cannot usually dismiss it as irrational or untrue. A grie$ance is

traceable to percei$ed non-fulfilment of one6s e)pectations fromthe organisation.

A grie$ance arises only when an employee feels that in*ustice has been done tohim.

rie$ances if not redressed in time tend to lower morale and producti$ity ofemployees

. %he grie$ance redressal procedure is a de$ice by which grie$ances are settled!

generally to the satisfaction of the trade union or employees and the management.

;. %he efficiency of a grie$ance procedure depends upon the fulfilment of certain

prere@uisites. %hese are as follows

/onformity with Cre$ailing >egislation

Acceptability

/larity

Cromptness

3implicity

%raining


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3tep (((, (f the employee is not satisfied with the answer! he can approach rie$ance

/ommittee which shall e$aluate the case and ma"e its recommendations to

management within se$en days of presentation of the case.

3tep (L (f the committee fails to ta"e decision within the stipulated period the employee

is not satisfied with the decision he can ma"e an appeal for re$ision to management.

3tep L, (f the employee is unsatisfied with the management6s decision! union and

management may refer the grie$ance to $oluntary arbitration within a wee" of the

receipt of management6s decision by the aggrie$ed employee.

Seen *ain causes responsible ,or ro0th o, rationalisation in Indian industries

are,

718 to increase the $olume of e)ports 78 old and obsolete machinery 78 traditional

methods of production 7;8 uneconomic units 758 to pro$ide employment opportunities 7?8

lesser labour producti$ity and 7B8 impro$ements in the @ualityS

3"4 To Increase The olu*e O, 7ports

atest techni@ues and inno$ations ha$e to be introduced

in order to increase the producti$ity of these industries.

34 -necono*ic -nits

4any industrial units in (ndia are operating below theirRF optimum capacity.


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>a"h tons per annum. ationalisation can bring about a considerable increase in their

production capacity.

3+4 To Proide *plo/*ent Opportunities

ationalisation in the short run leads to unemployment! but in the long run 7on accountof increased demand and higher production of goods and ser$ices8 new units ha$e to

be established. %his is helpful in creating new employment opportunities. 4easures of

rationalisation are $ery helpful in reducing the cost of production and increasing the

producti$ity.

3$4 Eesser Eabour Productiit/

>abour producti$ity in (ndia is far below as compared to ad$anced countries li"e the

.3.A.! Japan and ngland. 4easures li"e standardisation and specialisation are

immensely helpful in increasing the efficiency and producti$ity of labour ensuring higher

wages and increased standard of li$ing to wor"ers.

3>4 I*proe*ents in the ualit/

ationalisation plays a significant role in impro$ing the @uality of the products by

introducing impro$ements in designs and different production processes. /onstant

research and e)perimentation can be underta"en under rationalisation.

%he new techni@ues and methods de$eloped are of utmost significance in achie$ing

desired @uality of products. Tuality of articles li"e tea! sugar! cement! te)tile products

etc.! can be impro$ed by adopting the latest techni@ues and inno$ations.

The *odel aree*ent deeloped in "(+> laid do0n the ,ollo0in principles in

relation to rationalisation

718 %here should be no retrenchment of employees and the wor"ers6 unions should be

gi$en prior notice of the scheme of rationalisation in$ol$ing the retrenchment of

employees.

78 %he benefits of rationalisation should be e@uitably shared by the employer! the

employees and the society.

78 %he wor"load should be properly assessed by e)perts mutually agreed upon by the

employers and the employees. %he schemes of rationalisation should ensure proper

wor"ing conditions to wor"ers.

7;8 %he disputes arising on account of the schemes of rationalisation should be referred

to arbitration.


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:esides this many other measures were also underta"en to popularise the schemes of

rationalisation li"e the formation of %he Gational /ommission on >abour 19?9! 3ugar

(ndustry De$elopment /ouncil etc.

%he o$ernment of (ndia has laid down $arious pro$isions with regard to application of

the measures of rationalisation under the (ndustrial De$elopment and egulation Act!1951. %he o$ernment has further assured financial help to pri$ate sector industries

adopting the schemes of rationalisation.

Larious subsidies and allowances in the form of cash incenti$es and depreciation and

de$elopment allowance and rebate are also granted. (n order to promote industrial

research $arious scientific and research organisation were established especially after

independence li"e Gational /hemical >aboratory! Coona E Gational Chysical >aboratory!

Gew DelhiE /entral Drug esearch (nstitute! >uc"now E /entral esearch (nstitute!

>uc"now E /entral esearch (nstitute :hawnagar and >eather esearch (nstitute!

4adras.

%/'G(/A>(%(3 O< LO>G%AU %(4G% 3/'4 7L38


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?. :usiness re-engineering process

B. Croduct#%echnology obsolesces.

CO/D O< LO>G%AU %(4G% 3/'4 %he employer has to issue acircular communicating his decision to offer $oluntary retirement scheme mentioning

therein.

a8 %he reason for downsiing.

b8 ligibility i.e. who are eligible to apply for $oluntary retirement

c8 %he age limit and minimum ser$ice period of employees who can apply 7mployeeswho is ;0 and abo$e those who ha$e completed minimum 10 years of ser$ice in theestablishment8

d8 %he benefits that are offered (t should be noted that employees who offer to retire$oluntarily are entitled as per law and rules the benefits of Cro$ident


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5. 4oti$ate the managers through counseling

?. /ounseling employees is an essential part of implementing the scheme. %hecounseling should include what the retiring employee can do in future i.e. rehabilitation!how to manage the funds recei$ed under the scheme

B. After receipt of applications for accepting L3! scrutinie! decide whose applicationsare to be accepted and those whose are not to be accepted

.


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'D>3 (G (4C>4G%(G L3, (t deals with the li$es of people who are offered toend the careers abruptly and probably do nothing for the rest of their li$es .%hus manyproblems arise while implementing the scheme .3ome problems are anticipated by themanagement and appropriate action plan was drawn for it 7/hitra! 00;8 :asicproblems which arise at the time of implementation of L3 are.

X Gon acceptance of L3

X O$er acceptance of L3

X Operational problem

X Cost L3 :lues 4a*or hurdle in the acceptance of the scheme is trade union as uniondoes not easily accept any type of change e$en made with genuine reasons .O$eracceptance of L3 in 7/hitra! 00;8 C3 ban"s also caused the problem .

CO3% L3 4A33, /ompany should ta"e up few measures which will help theretiring employees to maintain their morale. 3eparate scheme are run by many nodal

agencies for /ounseling! etraining and edeployment 7/8 of rationaliedemployees of central public sector enterprises.

Participatie Manae*ent re,ers to as an open ,or* o, *anae*ent 0heree*plo/ees are actiel/ inoled in orani@ations decision *a1in process5 %heconcept is applied by the managers who understand the importance to human intellectand see" a strong relationship with their employees. %hey understand that theemployees are the facilitators who deal directly with the customers and satisfy theirneeds. %o beat the competition in mar"et and to stay ahead of the competition! this formof management has been adopted by many organiations. %hey welcome the inno$ati$eideas! concepts and thoughts from the employees and in$ol$e them in decision ma"ing

process.

Participatie Manae*ent can also be ter*ed as QIndustrial De*ocrac/! QCo&deter*ination! Q*plo/ee Inole*ent as 0ell as QParticipatie Decision Ma1in.%he concept of employee participation in organiation6s decision ma"ing is not new.'owe$er! the idea couldn6t gain that much popularity among organiations.

%he idea behind employee in$ol$ement at e$ery stage of decision ma"ing is absolutelystraight. Open and honest communication always produces good results both fororganiation as well as wor"ers.


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suggestions and ideas e$ery year and around 95 percent of these are implemented bythe company. &ho is not aware of %oyota6s success rate Around fi$e thousandimpro$ements per year ha$e made %oyota one of the fastest growing organiationsglobally. %he need is to de$elop and implement a comprehensi$e company policy ande$erything wor"s well.

:ritish Airways is another great e)ample of participatory management. During economicdownsiing! employees6 suggestions helped them cut annual cost of their operations by;.5 million pounds. %his is *ust unbelie$able. %he company would ha$e suffered fromhuge losses! had it not adopted employees6 suggestions. (t is right to some e)tent thatemployees can misuse industrial democracy but with a proper management of 'functions! this problem can be sol$ed and the operations of organiation can be ta"en tothe ne)t le$el.

%he different types of participati$e programs are ,

"5 2or1s co**ittees %he (ndustrial Disputes Act of 19;B pro$ides for establishingwor"s committees in e$ery establishment employing hundred or more wor"ers. %hislegislation thus ma"es it compulsory for the organiation to ensure employeeparticipation. %he wor" committee consists of e@ual numbers of wor"ers and employer.

%he employer6s representati$es are nominated by the employer and should be thosewho are connected wit the firm and ha$e day-to-day contact with wor"ers. %he wor"ersrepresentati$es are elected from among the wor"men engaged in the firm inconsultation with the union.

%he main function of the wor"s committee is to promote measure for securing andpreser$ing amity and good relations between the employers and the wor"ers. %hewor"s committee is normally concerned with day-to-day problems of the firm. %heir tas"is to smooth away any friction that may occur between the management and thewor"ers.

Despite the noble intentions of the Act! wor"s committees ha$e not been $erysuccessful due to the following reasons ,

a8 &or"ers representati$e are on these committees lac" the competent to carry outtheir responsibility well.

b8 nions consider these committees as a threat to their e)istence as employersprefer to tal" to these committees rather than the union.

c8 3ome employers consider it below their dignity to sit on these committees alongwith the wor"ers.

d8 %here is lac" of interest among wor"ers in wor"s committees as they concentrateonly on minor issues and ma*or issues pertaining to wages! bonus! etc are not included.


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)5 Co&partnership

(n this method! employees are paid the share of profits in the firm of shares and notcash. %hus wor"ers become shareholders in the company in which they are employed.:eing shareholders of the company they are entitled to participate in management.%hey also recei$e di$idend on their shares. /o-partnership increases the status ofwor"ers and impro$es their relationship with the management.

%he problem with this method is that employees are not interested in co-partnership andwant their share of profits in cash and refuse to accept shares of company. $en theunions oppose this scheme as well as they feel that nominal shareholding of thewor"ers does not gi$e them any real say in management.

5 *plo/ee Directors

nder this method one or two representati$e of the wor"ers are nominated on the boardof Directors of the company. %hey en*oy the same pri$ileges and ha$e the sameauthority as other directors ha$e. %hey participate in the decision ma"ing process asregards policies and procedure. %he representati$es of the employees to be nominatedare selected or suggested by the unions of the employees. %he management of thismethod of participation is that many wor"er directors are ignorant about their role on theboard and get in to conflict with other board members.

5 Noint Manae*ent Councils 3NMC4

nder this system! *oint management councils are constituted. %hese councils consist ofe@ual number of representati$es of employers and wor"ers. %he councils discuss$arious matters concerning the wor"ing of the company. %he decision of that council isad$isory in nature. %he management howe$er considers these decisions

sympathetically and implement them although it is not mandatory.

+5 Suestion sche*es

As the name itself indicates! suggestion programs are formal plans to in$iteindi$idual employees to ma"e suggestions for wor" impro$ements. %he suggestions arethen sorted out as per their applicability and cost-benefits ratio. mployees whosesuggestions result in cost sa$ing for the organiation are gi$en monetary rewards thatare proportionate to the company6s sa$ings. %he limitations of suggestion programsare ,

a4 *plo/ee initiatie %he emphasis is on indi$idual initiati$e rather than group

problem sol$ing and teamwor". Only a few employees ma"e actual suggestions and therest do not e)perience any sense of in$ol$ement.

b4 De*orali@in %here is a possibility that employees may be feel delay in theprocessing of suggestions or if certain ideas that appear good are re*ected. %heemployee may stop ma"ing suggestions in the future.


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c4 Criticis* 3ome managers find it hard to accept suggestions from theirsubordinates and may $iew it as criticism of their ability and practice.

$5 ualit/ Circles

%he success of @uality circles in Japan has led to their increasing popularity in urope

and the nited 3tates. A @uality circle consists of a group of employees who meetregularly to discuss their @uality problems! in$estigate causes! recommend solutions!and ta"e correcti$e actions. Tuality circles usually consist of eight to ten employees andsuper$isors who typically meet once a wee" on company time and on companypremises. %he benefits of @uality circles are ,

a8 mployees feel that they ha$e some influence on their organiation.

b8 Tuality circles pro$ide opportunities for personal growth! achie$ement andrecognition.

c8 mployees are more committed to the solutions as they generated them.

%he limitations of @uality circles are ,

a8 Got all employees participate. 3ome are *ust silent spectators.

b8 %hey often address tri$ial and issues.

c8 mployees feel isolated if they feel that their efforts are not ha$ing an impact onthe organiation.

>5 Total ;ualit/ *anae*ent

%T4 or total @uality management is a philosophy of management that aims at constantattainment of customer satisfaction through continuous impro$ement of allorganiational processes.

%T4 is not a merely a @uality impro$ement techni@ue but rather a set of corporate$alues-a way of life demonstrating a strong commitment to impro$ing @uality ine$erything that is done.

%T4 gets e$ery employee in$ol$ed and e$ery step in the firm6s process is sub*ect tointense and regular scrutiny for ways to impro$e it. Any issue may be ta"en up fore)ploration.


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beha$iour and results. (n simple words! self-managed teams are teams whosemembers are permitted to ma"e "ey decisions about how their wor" is done.

%ypically! self-managing teams consist of small numbers of employees! often aroundten! who ta"e on duties that used to be performed by their super$isors. %heir tas"includes ma"ing wor" assignments! deciding on the pace of wor"! determining how@uality is to be assessed! and e$en who gets to *oin the team.

(5 ualit/ Circle 8 A 2a/ o, Participatie Manae*ent

Tuality circles pioneered by Dr K (shi"awa! in early si)ties! helped Japanese (ndustry toma"e a miraculous reco$ery from the ra$ages of the 3econd &orld &ar andtransforming its earlier image as producer of substandard products into leadingindustrial nation with high producti$ity and reliable @uality.

Tuality circles are small groups of employees that meet on a regular basis to discussways in which they can impro$e producti$ity and cut costs. enerally a Tuality circleconsists of about ten employees who meet on a regular basis $oluntarily for an hour orso to identify! analyse and discuss specific wor" -related issues! which will lead to o$erall impro$ement in total performance and enrichment of wor" life. %he idea here is tomeet at free period! generally lunch hours or after the factory hours. %he meetings areloosely structured and often begin with a group of brain storming session to identifyproblem areas.

%he organiational structure of the @uality consists of following parties ,

a8 Gon members are those employees who are not the part of the circle howe$erthey are $ery important for the implementation and success of Tuality /ircles.

b8 4embers are the employees who form the Tuality circles. %he eligibility tobecome a member solely depends upon participation.

c8 >eadersS Deputy >eaders are chosen among the members themsel$es on arotation basis. 3uch con$ention would ensure leadership building aspect of @ualitycircles! as e$ery member would ha$e an opportunity to lead the team.

d8


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b8 Cromote participati$e culture

c8 Cromote team wor"

d8 (mpro$e o$erall producti$ity yet cost effecti$e

e8 3atisfy the self esteem re@uirements of the employees at the grass roots.

3ince participati$e management implies the acti$e participation of all the concernedparty! substantial generation of idea could be brought about. %his can lead to more more inno$ation! ma"ing the organisation competing enough as it is the matter of thesur$i$al of the fittest.

The ?actories Act! "(#! has been promulgated primarily to pro$ide safety measuresand to promote the health and welfare of the wor"ers employed in factories. %he ob*ectthuss brings this Act! within the competence of the /entral >egislature to enact. 3tateo$ernments#nion %erritory Administrations ha$e been empowered under certainpro$isions of this Act! to ma"e rules! to gi$e effect to the ob*ects and the scheme of the

Act.

Applicabilit/%his Act applies to factories! which @ualify the definition of Q


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nder section it has been described that there should be proper

arrangement of lighting in factories. (n e$ery part of the factory where wor"ers arewor"ing or passing should be well e@uipped with lighting arrangement either by naturalsources or artificial sources.

Section )"%his section specifies that fencing of machinery is necessary. %hat anymo$ing part of the machinery or machinery that is dangerous in "ind should be properlyfenced.


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Section )%his section prescribes that employment of young person on dangerousmachinery is not allowed. (n the case where he is been fully instructed in the usage ofthe machinery and wor"ing under the super$ision he might be allowed to wor" on it.

Section )%his section pro$ides pro$ision of stri"ing gear and de$ices for cutting off

power in case of emergency. $ery factory should ha$e special de$ices for cutting off ofpower in emergencies from running machinery. 3uitable stri"ing gear appliances shouldbe pro$ided and maintained for mo$ing belts.

Section )#%his section prohibits wor"ing of women and children on specificmachinery. As per this section women and children should not be appointed for any partof factory wor"ing on cotton pressing.

Section )(n this section it has been specified that all floors! stairs! passages andgangways should be properly constructed and maintained! so that there are no chancesof slips or fall.

Section %his section specifies that no person in any factory shall be employed tolift! carry or mo$e any load so hea$y that might cause in in*ury. 3tate o$ernment mayspecify ma)imum amount of weight to be carried by wor"ers.

Section +%his section pro$ides specification regarding safety and protection of eyesof wor"ers. (t mentions that factory should pro$ide specific goggles or screens to thewor"ers who are in$ol$ed in manufacturing wor" that may cause them in*ury to eyes.

Section $As per this section it is pro$ided that no wor"er shall be forced to enter anychamber! tan"! $at! pit! pipe! flue or other confined space in any factory in which any

gas! fume! $apour or dust is li"ely to be present to such an e)tent as to in$ol$e ris" topersons being o$ercome thereby.

Section #As per this section there should be proper precautionary measures built forfire. %here should be safe mean to escape in case of fire! and also necessarye@uipments and facilities to e)tinguish fire.

Section +%his section specifies that in e$ery factory there should be propermaintained and well e@uipped first aid bo) or cupboard with the prescribed contents.


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?actories Act! "(#

&omen are prohibited from wor"ing between B.00 pm to ?.00 am. %here has

been a recent amended to allow women to wor" in night shift in certain sectorsincluding the 3pecial conomic Yone 73Y8! (% sector and %e)tiles. %his issub*ect to the condition that the employers shall be obligated to pro$ide ade@uatesafeguards in the wor"place! e@ual opportunity! their transportation from thefactory premises to the nearest point of their residence.

3ection of the Act prohibits that no woman shall be allowed to clean! lubricate

or ad*ust any part of a prime mo$er or of any transmission machinery while theprime mo$er or transmission machinery is in motion! if that would e)pose thewoman to ris" of in*ury from any mo$ing part either of that machine or of anyad*acent machinery.

3ection B of the Act pro$ides that no woman shall be employed in any part of a

factory for pressing cotton in which a cotton-opener is at wor".

Plantation Eabour Act! "(+"

3ection 5 of the Actbans employment of any women in any plantation betweenB.00 pm to ?.00 am without permission of the 3tate o$ernment. :ut itspecifically e)empts from its pur$iew women who are employed in any plantationas midwi$es and nurses.

%he Act also pro$ides pro$isions relating to sic"ness and maternity lea$e for the

women employees.

Mines Act! "(+)

3ection ;? of the Act prohibits employment of any women in any part of a minewhich is below-ground. And in any part of the mine abo$e ground e)ceptbetween the hours ?.00 am and B.00 pm. (t also pro$ides that e$ery womenemployed in a mine abo$e ground shall be allowed brea" of not less than 11hours between the end of day wor" and the commencement of the ne)t day ofwor".

Proisions relatin to O,,ences and Penalties under the ?actories Act! "(# ,orcontraention o, la0s relatin to sa,et/ and health o, the 0or1ers


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safety guard or other de$ice which has been pro$ided for the purpose ofsecuring safety of wor"men.

%he 3tate o$ernment may! by notification in the Official aette! appoint any

person to be a /ommissioner for &or"men+s /ompensation for such area asmay be specified in the notification. Any /ommissioner may! for the purpose ofdeciding any matter referred to him for decision under this Act! choose one ormore persons possessing special "nowledge of any matter rele$ant to the matterunder in@uiry to assist him in holding the in@uiry.

/ompensation shall be paid as soon as it falls due. (n cases where the employer

does not accept the liability for compensation to the e)tent claimed! he shall bebound to ma"e pro$isional payment based on the e)tent of liability which he

accepts! and! such payment shall be deposited with the /ommissioner or madeto the wor"man! as the case may be.

(f any @uestion arises in any proceedings under this Act as to the liability of any

person to pay compensation 7including any @uestion as to whether a personin*ured is or is not a wor"man8 or as to the amount or duration of compensation7including any @uestion as to the nature or e)tent of disablement8! the @uestionshall! in default of agreement! be settled by a /ommissioner. Go /i$il /ourt shallha$e *urisdiction to settle! decide or deal with any @uestion which is by or underthis Act re@uired to be settled! decided or dealt with by a /ommissioner or to

enforce any liability incurred under this Act.

%he 3tate o$ernment may! by notification in the Official aette! direct that

e$ery person employing wor"men! or that any specified class of such persons!shall send at such time and in such form and to such authority! as may bespecified in the notification! a correct return specifying the number of in*uries inrespect of which compensation has been paid by the employer during thepre$ious year and the amount of such compensation together with such otherparticulars as to the compensation as the 3tate o$ernment may direct.

&hoe$er! fails to maintain a notice-boo" which he is re@uired to maintainE or fails

to send to the /ommissioner a statement which he is re@uired to sendE or fails tosend a report which he is re@uired to sendE or fails to ma"e a return which he is

ir notes karan a final

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