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Semester-III, MBA-HR-2, Industrial Relations and Labour Enactments

UNIT-II

EVOLUTION OF IR IN INDIA (Unit-I)

or

EVOLUTION OF TRADE UNIONS IN INDIA (Unit- II)

Trade Union is an outcome of the factory system. It is based on labor philosophy- united we stand, divided

we fall. Industrial revolution in India has changed the traditional outlook in the labor management

relationship. With the introduction of the modern factory system personal relationship between employer and

employee disappeared and has given rise to many social and economic evils which made it imperative on the

part of the workers to device an effective means to contact employers and to bargain with them. Formation of

trade unions has provided in an ideal solution.

History of the Trade Union movement in India

The labor movement in India is about fourteen decades old, since it may be traced from 1860s.

Early years of movement were generally led by philanthropists and social reformers, who organized

workers and protected them against inhuman working conditions

The early years of labor movement were often full of difficulties. Strike committees arose calling

themselves trade unions and demanding the privileges of trade unions without any means of discharging

responsibilities thereof. The position of the trade unions has considerably improved since then.

The development during the span of about one hundred and forty years may be considered broadly underthe following six periods:

o Pre-Independence Era

1. Pre-1918

2. 1918-1984

3. 1925-1934

4. 1935-1938

5. 1939-1946

o Post-Independence Era

6. 1947 and since

7. The Unity Move

The principle purpose of this section is to trace the origin and development of trade union movement in

India. In the process an effort will be made to study the characteristics of labor movement and the factors

which are responsible for the growth of trade union movement at various time levels.

Pre-Independence Era

1. Pre-1918 Period:

a. A movement started in 1860 led by Dinbandhu Mitra, a dramatist and social reformer of Bengal

b. This movement was followed by some of the journalists to protest against the hardship of the

cultivators and also the plantation workers

c. Thereafter, an Indigo commission was appointed

d. The report of Indigo commission reflects upon the grossest cruelties perpetrated by foreignplanters with the aid and under the protection of laws framed by the British government specially

for this purpose

e. Thereafter the system of Indigo cultivation was abolished due to discovery of the synthetic

process

f. In 1875 a protest was made against poor working conditions of workers by Sarobji Shapuri in

Bombay

g. Thus in 1875, first factory commission was appointed as a result the Factories Act, 1881 was

enacted

h. This act was, however, inadequate to meet the evil of child labor; moreover no provisions were

made to regulate the working conditions of the women workers and this gave rise to a great

disappointment to workers

i. In 1884, another factory commission was appointedj. In 1884 itself Mr. N.M.Lokhande organized the conference of the Bombay Factory Workers and

drew up a memorandum signed by 5300 workers demanding the following:

i. A complete day off, rest on Sundays.

Rupali Singh, Asst Professor, DoBM, HIMCS Page 23

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ii. Half an hour recess

iii. Working hours between 6:30 am to sunset

iv. The payment of wages not later than 15th of the month

v. Compensation for injuries

k. In spite of these agitations no material change could be brought and therefore, another

representation was made to the government in 1890

l. In 1884, the first labor association was organized in Bombay Mill Hand Association having Mr.

Lokhande as its president

m. Bombay Mill Hand Association started a labor journal (Dinbandhu) in order to propagate effective

views of their own

n. The Bombay Mill Hand Association also placed its demands before the Factory Labor

Commission (1890), with Mr. Bangalee, the great Philanthropist as a member. The commission

made due to consideration to the labor

o. Thereafter the workers started strikes and the agitation were made

p. As a result of agitation, the labor movement started during the period of 1860-1917 having the

following features :

i. The movement was led by the Philanthropist and social reformers and not by workers

ii. There were no trade unions in the modern sense. According to the report on the working

of the Factories Act at Bombay, in 1892 the Bombay Mill Hands Association was not to

be classified as a genuine trade union. The following experts of the report itself ispertinent:

1. The Bombay Mill bands have no organized trade unions. It should be explained

that although Mr. N.M.Lakhande, who served on the last Factory Commission,

described himself as president of the Bombay Mill Hands Association, that

association has no existence as an organized body, having no role of membership,

no funds and no rules. I understand Mr. Lokhande simply acts as volunteer

advisor to any mill hand that may come to him.

But, the trade unions existed as early as 1897. For instance the amalgamated

society to railway servants of India and Burma and other unions were formed in

April 1897.

iii. The associations mainly relied on petitions, memoranda and other constitutional means

for placing their demands which were mainly confined to factory legislation e.g. hours ofwork, health, wages for overstay, leave, holidays and such other matters.

iv. The early movement was confined to the revolt against the condition of child labor and

women workers employed in various industries.

v. Another feature of this period was the absence of strike as a means of getting grievances

redressed. The association of workers worked with the cooperation of management and

government official and sum of them considered in their duties to avoid strikes upon the

part of its members by every possible and lawful means.

vi. Strike during this period was considered to be the problem of law and order. Instances are

not lacking where police acted upon as strike-breakers by using force and frame falls

charges against strikers.

2. 1918-1924:a. The period can perhaps be best described as the era of the formation of modern trade unionism.

b. This period witnessed the formation of a large number of trade unions.

c. Several factors were responsible for the promotion of the large numbers of trade unions

i. The economic conditions of workers played an important role in the formation of trade

union. The demand of Indian goods were increased enormously for two reasons:

1. The shortage of shipping facilities led restricted imports of several commodities

for which India was dependent on foreign countries.

2. There was great demand of Indian goods from allies and neutral country. For

these reasons the prices of Indian commodities viz., salt, cotton, cloth, kerosene,

rose high. Naturally the cost of living steadily increased. The employer earned

huge profits. The wages of workers were increased but it could not keep pace

with the soaring prices of commodities. This resulted in further deterioration of

condition of workers. Further, there was shortage of labor in some of the

industrial centre due to epidemic of influenza. These reasons led to the formation

of trade unions to improve their bargaining positions.


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ii. The political conditions prevailing in the country also helped the growth of labor

movement. The struggle for independence started during this period and the political

leaders asserted that the organized labor would be an asset to the cause. The labor unions

were also in need of some help. The political leaders took lead and helped in the growth

of trade unions.

iii. The workers revolution in Russia which established the first workers state in the world

had its own influence in the growth of trade union movement.

iv. The other factor responsible for growth of trade union move was the world wide unrest in

the post war period. The war gave awakening in the minds of industrial workers.

v. Another factor was the setting up the international labor organization in 1919 of which

India was the founder member. The constitution of ILO required one representative from

the government of member state. The government without consulting the unions

appointed Sri N.M.Joshi as its representative. This gave an anxiety to workers to organize.

As a result AITUC was formed in 1920. This gave an opportunity to send members for

ILO conferences and also brought a change in government attitude to deal with labor

problem.

3. 1925-1934:

a. This period witnessed a split in AITUC namely, leftist and rightist. Later in 1929 a wing of

AITUC, namely the All India Trade Union Federation was formed. The main cause of thecommunist influence was the economic hardship of workers.

b. This period had also shown remarkable decrease in the intensity of industrial conflict. At least two

factors were responsible for it.

i. The Trade Dispute Act was passed in 1929 prohibiting strikes and lockouts.

ii. The failure of strikes and lockouts resulted in industrial strife.

c. Another significant feature of this period was the passing of the Trade Union Act, 1926 and the

Trade Dispute Act, 1929. The former Act provides for registration of trade unions and affords

legal protection to intervene and trade dispute. The later act provided for ad-hoc Conciliation

Board and Court of Enquiry for the settlement of trade disputes. The act, as already observed,

prohibited strikes and lock-outs in public utility services and general strikes affecting community

as a whole.

4. 1935-1938:

a. During this period unity was forced in trade unions. This led to revival of trade union activity. In

1935 the All India Red Trade Union Congress merged itself with the AITUC. Again, in 1938 an

agreement was arrived at between All India National Trade Union Federation and AITUC and

consequently NTUC affiliated itself with AITUC.

b. Several factors led to this revival of trade unionism.

i. The change in political setup in the country is responsible for change. It is significant that

congress party which formed its government in 1937 in several provinces tried to

strengthen the trade union movement and to improve the conditions of labor.

ii. The working class was also awakened to their rights and they, therefore, wanted to have

better terms and conditions of service.

iii. Management also changed its attitude towards trade union.c. The year 1938 saw the most important state enactment viz., the Bombay Industrial Disputes Act,

1938. The significant features of the act were as follows:

i. Compulsory recognition of unions by the employers

ii. Giving the right to workers to get their case represented either through a representative

union or where no representative union in the industry/ centre/ unit existed though elected

representatives of workers or through the government labor officer,

iii. Certification of standing orders which would define with sufficient precision the

conditions of employment and make them known to workmen,

iv. The setting up an industrial court, with original as well as appellate jurisdiction to which

parties could go for arbitration in case there attempts to settle matters between themselves

or through conciliations did not bear fruit,

v. Prohibition of strikes and lockouts under certain conditions. The scope of the act was

limited to certain industries in the province.

5. 1939-1946


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a. World War II like the World War I brought chaos in industrial relations. Several reasons may be

accounted for the industrial unrest and increased trade union activity.

i. The rise in prices could not keep pace with the increase in wages.

ii. There was a split in AITUC due to nationalist movement.

iii. The post World War II witnessed retrenchment and, therefore, faced with the problem of

unemployment. During this period the membership of registered trade unions increased

from 667 in 1939-40 to 1087 in 1945-46. Further, the number of women workers in the

registered trade unions increased from 18,612 in 1939-40 to 38,570 in 1945-46. Moreover

the period witnessed a large number of strikes.

b. During the emergency the defense of India rules, 1942 remained in force. Rule 81 A of the rules,

empowered the government,

i. To require employers to observe such terms and conditions of employment in their

establishments as may be specified

ii. To refer any dispute to conciliation or adjudication

iii. To enforce the decisions of the adjudicators

iv. To make general or special order to prohibit strikes or lockouts in connection with any

trade dispute unless reasonable notice had been given. These provisions thus permitted the

government to use coercive processes for the settlement of trade disputes and to place

further restrictions on the right to use instruments of economic coercion.

c. In 1946 another enactment of great significance in labor relations namely, the IndustrialEmployment (Standing Orders) Act, 1946 was passed with a view to bring uniformity in the

condition of employment of workmen in industrial establishment and thereby to minimize

industrial conflicts. The act makes it compulsory for employers engaging-one hundred or more

workmen to define with sufficient precision the conditions of employment and to make those

conditions known to workmen. Another important enactment at state level was the Bombay

Industrial Relation Act, 1946. The act makes elaborate provisions for the recognition of trade

unions and rights thereof.

Post-Independence Era

6. 1947 and since

a. With the advent of independence, the trade union movement in India got diversified on politicalconsideration. The labor leader associated with the National Congress Party formed the Indian

National Trade Union Congress in 1947. The aim of the INTUC is to establish an order of

society which is free from hindrances in the way of an all round development of its individual

members, which fosters the growth of human personality in all its aspects and goes to the utmost

limit in progressively eliminating social, political or economic activity and organization of society

and the anti-social concentration of power in any form.

b. In 1948 the socialist party formed an organization known as Hind Mazdoor Sabha. The aims and

objects of the sabha are to:

i. To promote the economic, political, social and cultural interest of the Indian working

class

ii. Guide and coordinate the activities of affiliated organizations and assists them in their

workiii. Watch, safeguard and promote the interests, rights and previlages of workers in all matters

relating to their employment

iv. Promote the formation of federation of unions from the same industry or occupation

v. Secure and maintain for the workers

1. freedom of association,

2. freedom of speech,

3. freedom of assembly,

4. freedom of press,

5. right of work or maintenance,

6. right of social security and

7. right to strike

vi. Organize and promote the establishment of a democratic socialist society in India,

vii. Promote the formation of cooperative societies and to foster workers education

viii. Cooperate with other organizations in the country and outside having similar aims and

objectives.


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c. A year later in 1949, another organization, namely, the United Trade Union Congress was formed.

The aims and objects of the United Trade Union Congress as given in its constitution are:

i. Establishment of socialist society in India

ii. Establishment of a workers and peasants in India

iii. Nationalization and socialization of the means of production

iv. Safeguarding and promoting the interests rights and privileges of the workers in all

matters , social , cultural , economic and political

v. Securing and maintaining for the workers

1. freedom of speech,

2. freedom of press,

3. freedom of association,

4. Freedom of assembly

5. Right to strike,

6. Right to work or maintenance,

7. Right to social security

vi. Bringing about unity in the trade union movement.

d. The same year also witnessed the passing of the Industrial Disputes Act, 1947 and the Trade

Unions (Amendment) Act 1947. The former Act introduced and adjudication system on All India

level. It prohibits strikes and lock-outs without giving fourteen days prior notice and during the

pendency of conciliation proceedings before a Conciliation Officer in public utility services. Innon public utility services it prohibits strikes and lock-outs during the pendency of proceedings

before Board of Conciliation, Labor Court, Tribunal, National Tribunal and Arbitration (when a

notice is given Section 10-A of the Act). The Act further prohibits strikes and lock-outs during the

operation of settlement or award in respect of any matter covered settlement or award. The latest

Act brought several changes of great significance. The Act provided for recognition of Trade

Unions and penalties for unfair labor practices by employers and unions. But the Act has not yet

been enforced. Again in 1950 the Trade Unions Bill was introduced in the Parliament providing

for registration and recognition of Trade Unions and penalties for certain unfair labor practices.

On dissolution of the Parliament, the bill lapsed and has not since been brought forward by

Government for the Parliament.

e. Political involvement continued even after 1950. In addition to four major all India Organizations

discussed above there are three unattached unions dominated by one of the other political parties.For instance on 23rd Jul, 1954 federation namely, Bhartiya Mazdoor Sangh (BMS) was formed in

Bhopal by Jan Sangh Party presently known as Bhartiya Janta Party. The main object of BMS is

to check the increasing influence of the Communist Unions in the Industry and co-operate with

non communist unions in their just cause. A year later Central Federation, namely, Hind Mazdoor

Panchayat, a new trade union organization by Sanyukt Socialist Party and Indian Federation of

Independent Trade Unions which has no affiliation with any political party were formed.

f. The period also saw the amendments in the Trade Unions Act in 1960. The amended Act brought

four new provisions:

i. Minimum membership subscription has been incorporated

ii. The registrar of Trade Unions has been empowered to inspect account books, register,

certificate of registration and other documents connected with the return submitted by

them under the trade union actiii. Government is empowered to appoint additional and Deputy Registrar with such power

and functions as it deems fit

iv. Fate of the application for registration where applicants (not exceeding half of them)

cease to be members or disassociate themselves from the application has been statutorily

decided

g. Some independent trade unions met at Patna on 21 March, 1964 and decided to form the All India

Independent Trade Union Congress but this effort to unite the unaffiliated unions did not continue

for a longer period and met an early death

h. The act was once again amended in 1964. It made two changes:

i. It disqualifies persons convicted by the court of an offence involving moral turpitude from

becoming office-bearers and members of the executive of a registered trade unions

ii. It requires for the submission of annual returns by registered trade union in a calendar

year basis


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i. 1970 witnessed another split at the national level in the AITUC. The decision of left communist

group, which decided not to remain within the AITUC resulted in the formation of a separate

organization, namely, the centre of Indian Trade Union by the Marxist Communist

j. A further split took place in 1970-72. During the period there was a split in the united Trade

Union Congress and another organization namely, the United Congress Lenin Sarani was formed.

7. The Unity Move

a. In 1972 a new experiment was made when three central trade union organizations, namely, the

HMS, the INTUC, and the AITUC in the meeting held on 21 May, 1972 at new Delhi agreed to

establish a National Council of Central Trade Unions for the purpose of

i. promoting understanding cooperation and coordination in the activities of the central trade

unions,

ii. to defend the interests of the working class and the trade unions movement,

iii. to advance the interest of the working people and help towards the development of the

national economy on a democratic, self-reliant and non-monopoly basis,

iv. To overcome trade union rivalry and bring about trade union unity for common objectives

and action.

However, this organization even for limited purpose could not survive for a longer period and

met an early death

b. In September 1977 an All India Convention of Central Organization of trade unions includingCITU, BMS, HMS, the TUCC was called which demanded time bound programs ensuring

reduction in wage disparity, national wage and price policy and need based wages for industrial

and agricultural workers

c. In 1981 once again unity was shown in the trade unions to protest the promulgation of the

Essential Services Maintenance Ordinance, 1981 and also the bill in that regard in the parliament.

A year later in 1982 the Trade Union (Amendment) Bill, was introduced in Lok Sabha. The bill

proposed to make the following amendments in the act, namely:

i. To reduce multiplicity of unions

ii. To have machinery or procedure for the resolution of trade union disputes arising from

inter-union and intra-union rivalries

iii. To have any time limit for registration of trade unions.

iv. Also proposed to provide that a trade union whose certificate of registration has beencancelled would be eligible for re-registration only after the expiry of six months from the

date of cancellation of registration, subject to certain conditions being fulfilled by the

trade unions

v. To enhance the percentage limit of the office bearers in executive of a registered trade

union who are the persons actually engaged or employed in an industry with which a trade

union is connected from 50 percent to 75 percent

vi. It is proposed to empower the registrar of Trade Unions to verify the membership of

registered unions and connected matters and report the matter to the State and central

Governments

vii. Penalties specified in the act for the contravention of its provisions are proposed to be

enhanced

viii. The bill also provides for the constitution of a bargaining council for a three year term tonegotiate and settle industrial disputes with the employer

d. While the unit-level bargaining council will be set up by the employers, the appropriate

government will empowered to set up such councils at industry level

e. However the aforesaid bill lapsed. Six years later the Trade Unions and the Industrial Disputes

(Amendment) Bill, 1988 was introduced in the Rajya Sabha on May 13 1988 but it has not yet

received the color of the Act

f. The government of India had in 1997 approved certain amendments to the Trade Unions Act,

1926. The objectives of these amendments, is to ensure organized growth of trade unions and

reduce multiplicity of trade unions. The Trade Unions Amendments Bill, 1997 was to be

introduced in the Rajya Sabha in the winter session of the parliament in the year 1997, but due to

various reasons, it was not introduced.

g. Recently a consensus emerged among the leading trade union federation like the BMS, AITUC,

CITU and INTUC on protection to domestic industry, strengthening the public sector units by way

of revival and induction of professionals in the management and amendment of labor laws

and among other inclusion of rural and unorganized labor in the social safety net.


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OBJECTIVES OF TRADE UNION

The main objectives of the trade unions are:

1. To ensure full employment

2. To secure greater participation of workers in the management of enterprises

3. To secure complete organization of all categories of workers including agricultural labor

4. To organize workers on an industry-wise basis

5. To improve the conditions at work and to provide various social security measures

6. To develop among the workers a sense of responsibility towards industry and the community

7. To oppose management

8. To exercise leadership

Thus the worker is motivated towards the union membership to the degree that he thinks it will satisfy his wants and

reduce his wants dissatisfaction. The ties are strong when he expected want satisfaction is strong, and vice-a-versa.

FUNCTIONS OF TRADE UNIONS

The primary functions of a trade union are to promote and protect the interests and basic needs of its members.

Important among these are:1. To secure for the workers fair wages

2. To safeguard security of tenure and improve conditions of service

3. To enlarge opportunities for promotions and training

4. To improve working and living conditions

5. To provide for educational, cultural and recreational facilities

6. To cooperate in and facilitate technological advance by broadening the understanding of workers on its

underline issues

7. To promote identity of interests of the workers and their industry

8. To offer responsive cooperation in improving levels of production and productivity, discipline and high

standards of quality

9. To promote individual and collective welfare

PROBLEMS OF TRADE UNIONS

The following are the main problems of trade unions in India:

1. Uneven growth: the growth of trade unions has not been even among the various industries. Plantations, coal

mines, food industries, textiles, printing presses, chemicals, utility services, transport & communication and

commerce are the main organized industries in which unionism has made progress. The degree of unionization

varies widely from industry to industry. The manufacturing group contributed the largest share, followed by

services, transport, communication & storage & cotton textiles. In other industries they are not well

developed.

Small size of unions: the small size of trade unions is due to various factors, namely: the fact that any

seven workers may form a union under the Trade Union Act of 1926, and get it registered, so that a largenumber of small unions have come up.

The women workers who form a substantial part of the work force are not allowed to join trade unions.

The structure of the trade union organization in the country is the factory or unit of employment; so

whenever employees in a particular factory or mine are organized, a new union is formed.

Though the number of unions and union membership is increasing, the average membership has been

declining.

Rivalry among the leaders and the central organizations as resulted in a multiplicity of unions.

2. Financial weakness: trade unions suffer from financial weakness, for the average yearly income of a union

has been rather low and inadequate. This is because the workers are apathetic towards trade unions and do not

want to contribute a part of their hard earned money. Members, instead of making regular payments to the

union, make ad hoc payments if a dispute arises.

3. Multiplicity of unions: multiple rival unions are an important feature and one of the great weaknesses of the

Indian trade union movement. The multiple trade unions are because of;


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a. The political outsiders wanting to establish of their own with a view to increasing their political

influence.

b. The Trade Union Act 1926 permits seven members to form and register a union. In India, many of the

unions are general unions.

c. In a democracy even a minority is given an opportunity to organize and further its interest. This has

given rise to multiplicity of Trade Unions in an organization.

d. Within a single organization, there exist a number of groups comprising insiders and outsiders, new-

comer and old-timers, north-earners and south-earners.

Given the large number of trade unions at the national and regional level with each other for increased

membership has led to disunity among the workers.

4. Inter-union rivalry: the multiplicity of unions at the plant level has created the problem of inter-union

rivalry. These unions often disagree over technological change, rationalization, automation or terms and

conditions of employment and may lead to work stoppages. Sometimes one union agrees while the other does

not due to rivalry among leaders, differences in strategy to be adopted ideological differences or personality

clashes.

5. Leadership issue: another important problem of trade unions is the leadership of Trade Unions by person who

are professional Politian and lawyers & doctors and who are not employees of the organization. This is

Leadership by intellectuals. Rather than by workers. It applies at the local as well as a national level. Thisphenomena exists for several reasons:

a. The rank and file, being illiterate, cannot communicate effectively with the management.

b. Men in managerial positions are generally members of higher castes than those of the rank and file

unionists.

c. Union members generally avoid victimization if they become office bearers of trade unions.

d. For insuring a measure equation of power in collective bargaining where the workers are generally

uneducated and have a low status.

e. Due to lack of financial resources trade unions do not appoint whole time office bearers.

6. Political nature of unions: the Trade Unions by their very nature are political. Trade Unions through their

collection action are organization concerned with the interest of a particular class. However, they are alsoconcerned with the distribution of power and decision making. These two features make the Trade Unions

political and the inter-relationship between politics and trade union is perpetual. Both trade unions and

political parties have vested interests in each other as an effect of their actions and strength is of interests to

each other.

7. Recognition of trade unions: in our industrial relations system, the employers are under no obligation to

recognize the trade unions. In the early stages, the attitude of employers towards trade union was very hostile.

They first try to scoff at it and then try to put it down and lastly, if the movement persists to exist, they

recognize it. This phenomenon still exists in the present day industrial scenario. The employers frequently

refuse to recognize either on the basis that unions consist of only a minority of employees or that two or more

unions existed. However, the fact that the unions consist only a minority or employees or the existence of two

or more rival unions are not in itself a sufficient reasons for refusing to recognize any or all of the tradeunions.

STRUCTURE OF TRADE UNION

The structure of trade unions refers to the basis on which unions are organized and to the pattern whereby

the plant unions are organized and to the pattern whereby the plant unions are linked to regional level or

national level federation of unions Trade Unions are classified into following three categories:

1. Craft Unions: A craft union is formed by workers belonging to same occupation or specialization

irrespective of industry. The carpenters working in different industries may form a union of carpenters.

The Indian pilots Guild and International Wood carvers are the examples of craft union exist among non-

manual workers like administrative staff professionals, technicians etc.


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2. Industrial Unions: Industrial union is formed on the basis of industry rather than on a craft i.e., the

workers of a cotton textile factory may form a union consisting of workers of different crafts to avoid

separate bargaining by each employee union i.e., cotton textile factory Rashtriya Mill Mazdoor Sangh

Mumbai

3. General Union: General Union embraces all workers whatever industry or craft in a place. Its

membership covers workers employed I different industries and crafts e.g. Jamshedpur Labor Union. In

out country most of the trade unions have been organized by industry.

Another way of structuring trade unions in our country is on their pattern of relationship between national

level, regional level, local level and plant level unions:

1. Plant Level Union: these unions functions at lowest level or at the plant level and does not have more

influence independently. But they generally unite in a particular craft or industry for strength

2. Local Level Federation: The plant level unions at the local level in a particular craft or industry are held

together by the local level federations

3. Regional Level Federation: Due to variation in style of living language, customs, traditions, working

conditions from region to region workers are organized at regional or state level. Regional levelFederations are organizations of all the constituents unions in a particular state or region. Regional

Federations may be independent or may get affiliated to some national federation.

4. National Federation: National Federation is the apex bodies at the top of the structure and act as

coordinating body. The plant level unions, local level unions, or regional level unions may get affiliated to

national level bodies. The national federation may have their own regional or state level coordinating

bodies which the plant level unions may get affiliated.

COLLECTIVE BARGAINING

Collective bargaining is the technique that has been adopted by union and managements to be reconcile thereconflicting interests. jhagdaa

The phrase collective bargaining is said to have been coined by Sydney and Beatrice web of great Britain,

which is said to be the home of collective bargaining. Acc. to them, collective bargaining is the method by which

trade unions protected and improved the conditions of their members working lives.

The phrase collective bargaining is made up of two words- collective and bargaining-the process is the collective

because issues relating to terms and conditions of employment are solve by representative of employees and

employers in groups rather than an individuals. The term bargaining refers to involving an agreement using methods

like negotiations, discussion, exchange of facts and ideas, rather than confrontation. The process of collective

bargaining is bipartite in nature that is the negotiations are between the employers and employees, without the third

party intervention. The objective of collective bargaining is to come to an agreement. The process of collective

bargaining is that divergent view point is put forth by the parties concerned and through negotiations and a settlementis arrived at.

Definitions-

1. Acc. to encyclopaedia of social sciences:

collective bargaining is a process of discussion and negotiation between two parties, one or both of whom is a

group of persons acting in concerned .the resulting bargaining is an understanding as to the terms and

conditions under which a continuing services is to be performed. More specifically, collective bargaining is a

procedure by which employers and a group of employees agree upon the conditions of works

2. The ILO has defined collective bargaining as negotiation about working conditions and terms of

employment between and employer and a group of employees of more or employee organization with a view

to reaching an agreement where in the term serve as in code of defining the rights and obligations of each

party in their employment, relation with one another. fix a large number of detailed conditions of employment


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and during its validity none of the matters it deals which can in normal circumstances be given as a ground for

a dispute concerning and individual worker

3. Acc. to Dale yoder collective bargaining is essentially a process in which employees act as a group in

seeking to shape condition and relationship in their employment.

4. Cox defines collective bargaining as the resolution of industrial problem between the representatives of

employers and their freely designated representatives of employees acting collectively with a minimum of

govt. dictation.

5. Summer H. slitchter Defines collective bargaining as the beginning of industrial jurisprudence. It is a

method of enforcing citizenship rights in industry i.e. mgmt should abide by certain rules rather than taking

arbitrary decision.

6. R.F.Hoxie says collective bargaining is a mode of fixing the terms of employment by means of bargaining

between an organize body of employees and an employer.

NATURE OF COLLECTIVE BARGAINING:

1. It is carried out on collective as distinct from an individual basis i.e. the collective bargaining isbargaining of groups of people.

2. In the bargaining process the main actors are employers and their associations

3. The object of collective bargaining is rule making i.e. reaching an agreement by specifying the rules

pertaining to employment relationship.

SCOPE OF COLLECTIVE AGREMENT:

1. The purpose of the agreement, its scope and definitions the important terms.

2. The right and responsibility of the management and the trade union.

3. Wages, bonus, production norms, leave, retiring benefits and other benefit and terms and conditions of

services.

4. Grievance redressall procedure.5. A termination clause.

FEATURES OF COLLECTIVE BARGAINING:

1. Collective: it is collective in two ways. One is that all the workers collective bargain for their common interest

and benefit .the other that workers and management jointly arrive at a solution through negotiation.

2. Strength: across the table both parties bargain from a position of equal strength.

3. Flexible: it is a group action where representative of workers and mgmt. expand energies in order to arrive at a

consensus .It has sufficient flexibly since no party can afford to be inflexible and visit in such situation.

4. Voluntary: both workers and management come to negotiating table voluntarily in order to have a meaningful

dialogue on various troubling issues.

5. Continuous: collective bargaining is a continuous process .It does not commence with negotiation and with an agreement.

6. Dynamic: collective bargaining is a dynamic process because the way agreements are arrived at ,the way they

are implemented the mental makeup of parties involved keep changing.

7. Power relationship: workers want to gain the maximum from mgmt. and mgmt. wants to extract the max

from workers by offering as little as possible.

8. Representation: The chief participants in collective bargaining do not act for them. They represents the

claims of labour an mgmt. while trying to reach an agreement.

9. Bipartite process: the employers and employees negotiate the issues directly face to face across the table.

There is no third party intervention.

OBJECTIVES OF COLLECECTIVE BARGAINING:

1. To settle conflicts resulting to wages and working conditions.

2. To protect the interest of workers to collective action.

3. To resolve the diff between workers and mgmt. through voluntarily negotiations and arrived at a concensus.


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4. To avoid their party intervention in matters relating to employment.

SIGNIFICANCE OF COLLECTIVE BARGAINING:

1. Institutional importance: collective bargaining has come to be reckoned as an imp. Institution in almost all

the industrialized democratic societies that have recognized an allow freedom of association.

2. Man power economic rule: Acc. To Baleyoder collective bargaining plays an imp. role in manpower

allocation, utilization an conservation

3. To words promoting industrial peace: collective bargaining is considered as the first available method of

resolving and for settlement of any industrial conflict.

4. A great social invention: Kornhanser and his other associates the editors of the publications industrial

conflict have hailed collective bargaining as the as the great social invention that has institutionalized

industrial conflict.

5. Restrains managements unilateral actions: collective bargaining has traditionally concerned, with the

regulation and settlement of wages and other employment conditions of the employees and in the maintenance

of healthy industrial relation between mgmt. and workmen.

NEED OF COLLECTIVE BARGAINING:

1. The high degree at collective bargaining as measured in terms of proportion of workers cover by collectiveagreements.

2. Qualitative conduct of the parties to collective bargaining both before a situation warranting negotiations

develops and the method followed at the time of arriving at agreements.

3. The right priorities assign to if methods in the agreement and their changing method over time.

4. a structure of bargaining with emphasis on central bargaining which is purpose to give some order an stability

to labour mgmt relations.

TYPES OF BARGAINING:

1. Conjunctive/Distributive/ bargaining:the parties try to maximize their respective gains. They try to settle

economic issues such as wages, benefits, bonus etc. through a zero sum game .unions negotiate for maximum

wages.

2. Cooperative Bargaining: when companies are hit by recession they cannot offer the kind of wages and benefitsdemanded by workers at the same time they cannot survive without the latest support. Both parties realize the

importance of surviving in such difficult times and are willing to negotiate the terms of employment in a

flexible way.

3. Productive bargaining: In this method workers wages and benefits are links to productivity. A standard

productivity index is finalized through negotiation initially. Workers do not have to perform at exceptionally

high levels to beat the index.

4. Composite Bargaining: here labour bargains for wages as usual but goes a step further demanding equity in

matters relating to work norms, employment leaves, manning standards, environmental hazard etc. unions are

able to prevent the dilution of their power and ensure justice to workers by putting certain limits on the

freedom of employers.

PRINCIPLES OF COLLECTIVE BARGAINING:

Arnold F. Cmpo suggests the following principle for efficient function of collective bargaining:

For Union And Management

1. collective bargaining should be made an educational as well as bargaining process .it should offer to trade

union leaders n opportunity to present to the management the wants, the desire, the grievances and the

attitude of its employees and make it possible for the management to explain to union leaders an through

them to its employees, the economic problem which confront it.

2. The management and the trade union must look upon collective bargaining as a means of finding the best

possible solution and not as a mean of acquiring as much as one can while conceding the minimum.

3. Both the parties to a dispute should command the respect of each other.

4. There should be mutual confidence and good faith, an a desire to make collective bargaining effective in

practice.


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5. There should be an honest able and responsible leadership for only this kind of leadership will make

collective bargaining effective and meaningful.

6. The two parties should meticulously observe and abide by all the national and state laws, which are

applicable to collective bargaining.

7. Both the parties must bear in mind the fact that collective bargaining is in a sense, a form of price fixation

and that any successful collective bargaining depends, in the last analysis on whether the management and

the trade union do a good job of ensuring that the price of labor is property adjusted to other prices.

For the Management:

1. The management must develop and consistently follow a realistic labor policy, which should be accepted

and carried out by all its representatives.

2. In order to ensure that the trade union feels that its position in the organization or factory is secure, the

management must grant recognition to it without any reservations and accept it as a constructive force in

the organization and the industry.

3. The management should not assume that employees goodwill should always be there for it. It should

periodically examine the rules and regulations. By which its labour force is governed

4. The management should act upon the assumption that in order to make the trade union are responsible and

conservative body, it is essential that it should be fairly treated.

5. The management should not wait for the trade union to bring employees grievances to its notice butshould rather create the conditions in which the trade union will not do so and should settle the grievances

of the employees even before the trade union brings them to the notice of the management.

6. The management should deal with only one trade union in the organization. If two trade unions seek

recognition, no negotiation should be undertaken with till one of them establishes the fact of having the

majority of the membership of the employers in its organization.

7. While weighing the economic consequences of collective bargaining the management should place greater

emphasis on social consideration.

For The Trade Union:

1. In view of the rights granted to organized labour it is essential that trade union should element

racketeering and other undemocratic practices within their own organization.2. Trade union leader should not imagine that their only function is to secure higher wages for their members

and shorter hours of work a better working condition for them.

3. Trade union leaders should appreciate the economic implications of collective bargaining for their

demands and generally made from the income and resource of the organization in which their members

are employed.

4. Trade union leader should assist in the removal of such restrictive rules and regulation as are likely to

increase cost an crises and reduce the amount that can be paid out as wages.

5. Trade union should resort to strikes only when all other methods of the settlement of a dispute have failed

to bring about satisfactory results.

PROCESS OF COLLECTIVE BARGAINING:

Step 1: Pre Negotiation Phase:

this is the stage before starting collective bargaining. At this stage the management wants to estimate the

power and capacity of labour unions. At this stage all the relevant data, information and figures are

collected so that the stage may be prepared for negotiation.

Step2: Selection of negotiators:

At this stage both the management and the labor union select their representatives who will take part in

negotiations from their side. Only such person selected as negotiators who are fully acquainted with the

problems on which negotiations are going to be held.

Step 3: Strategy of bargaining:

Management should decide the basic strategies and policies that will be followed at the time of bargaining

with the employees. Everything must be made clear before going to the bargaining table. The management


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should get due power to enter into agreements with workers. Similarly labor union should also determine

the strategies on the basis of which they will take part in negotiation.

Step 4: Tactics of Bargaining: The technique of collective bargaining should depend upon the principle of the

give and take both the parties try to get more then they sacrifice. The services of government mediators can

also be used if require

Step 5: Contract:

Fifth stage of the process of collective bargaining is to enter in to a collective agreement. Such agreement

are made for a certain time these agreement give full details of security of job , grievance handling

procedure, promotion policy, transfer policy, rules regarding lay off , rules regarding retrenchment, hours

of work, rules regarding leaves, incentive schemes etc.

Step6: Implementation of the contract:

The last stage of the process of collective bargaining is the implementation of the agreements entered into

between management and labour unions. Both the parties should honour these agreements implement them

whole heartedly

DISCIPLINE

Discipline means a condition in the organization when employees conduct themselves in accordance with the

organizations rules and standards of acceptable behavior

Discipline also means orderliness. In industrial context, it means working and behaving in a normal and

orderly way, as any reasonable person expects an employees to do

The term Indiscipline is both the cause and effect of the state of industrial relations

The term Indiscipline can be described as non-conformity to formal and informal rules and regulations

It is necessary to correct indiscipline in an organization as soon as it is observed because it results in chaos,

confusion and diffusion of results

Objectives of Discipline

Discipline in an organization is very essential for the following purposes:

1. Smooth running of the organization

2. To obtain a wiling acceptance of rules and regulations of organization

3. It enhance efficiency and reduces costs

4. It minimizes absenteeism and employee turnover

5. It promotes better care for equipments

6. Employees gain a sense of security and safety

7. It increases the self respect for the company

Causes of Disciplinary Violations


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There can be many causes for the disciplinary violations as that related to ignorance, illiteracy, Non-adherance

to the industrial culture, Non-redressal of grievances, lack of commitment to work, absence of occupational status, low

wages, unfair labor practices, bad working conditions, etc. These causes may broadly be classified into the following

categories:

1. Causes related to the workers

2. Causes related to the socio-cultural factors

3. Causes related to the management practices

4. Causes related to the work environment

Indiscipline Problems

S.P. Robbins has described commonly found discipline problems as follows:

1. Attendance: it is a foremost problems having Absenteeism, tardiness, sick leaves, and other aspects ofattendance. The reasons includes:

a. Organization fail to alight workers goals with those of the organization

b. Changing attitude towards work

c. Different backgrounds of the new entrants

d. Many employees believe that the earned leaves should be consumed

e. Employees/ Trade union leaders believe that it is difficult to fire them

2. On-the-job Behavior: it includes the following

a. Insubordination

b. Fighting

c. Gambling

d. Failure to use safety devices

e. Carelessness

f. Use of alcohols and drugs

3. Dishonesty:

4. Outside Activities: it includes

a. It affects on-the-job performance

b. Unauthorized strikes

c. Having ones wages garnished

d. Outside criminal activities

e. Working for a competing organization


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Disciplinary Actions

1. Minor Punishments/ Minor Disciplinary Actions:

a. Oral Warnings: when an employee commits minor omissions, he may be given an oral reprimand by

the superior concerned. In such cases, the superiors should enlightened the employees as to how to

prevent their recurrence. Since repeated warnings may bring down drastically the level of morale of

the employees, oral warnings should be used sparingly

b. Written Warnings: whenever oral warnings fail to achieve the desired behavior on the part of an

employee, written warnings, which are the first formal state of progressive discipline, may be resorted

to. Written warnings are also referred to as pink slips which indicate that certain rights would be

withdrawn in case the employees continues his omissions or misconduct

c. Loss of Privileges and imposing fines: if an employee leaves the work, without taking the

permission of the superior, he may not be allowed to select good tools and machine for himself and to

move freely in the company. All these might have been the privileges enjoyed thereto by the

employee. Further, if the contract of employment provides for imposition of fines by the employer on

the delinquent employees, the employer may resort to them.

d. Punitive Suspensions: under punitive suspension the employer prohibits the employee from

performing the tasks assigned to him and the wages are withheld or withdrawn during the period of

such prohibition

2. Major Punishments/ Major Disciplinary Actions

a. Withholding of Increments: this is a major punishment. Under this method, the employer withholds

the annual increments of the delinquent employee in a graded scale

b. Demotions: Under this kind of punishment, an employee is reduced to a lower grade from the grade

enjoyed by him earlier. Normally this method is resorted to when an employee is promoted by mistake

and he is not able to perform the job.

c. Terminations:

i. Discharge Simpliciter: termination of the service of an employee may not be on account of

his misconduct but may be for loss of confidence or for certain other reasons which do not

cast a slur on him. This is referred to as Discharge Simpliciter. In such case, if the employee

challenges the employers, the employer must prove them. In it, the employer is not bound to

hold an enquiry.

ii. Discharge: Discharge amounts to termination of service by giving agreed notice or payment

and acceptance of money in lieu of such notice. In other words, in discharge, the reciprocal

promises and obligations are stated to be discharged

iii. Dismissal: Dismissal is also referred to as industrial capital punishment. Dismissal is the

extreme form of punishment. It is usually awarded only when it becomes incompatible to

continue employer-employee relations. It is also awarded in case of willful insubordination,

disorderly behavior, theft, etc.


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EMPLOYEE GRIEVANCES

Introduction

There are many factors in industry which make a worker unhappy and dejected. May be his fellow workers are

non-cooperative or his foremans sarcastic or harsh remarks on his own personal problems outside the factory or

domestic matters. Poverty, undernourishment debts, unemployed dependants etc. may be working adversely in his

mind. He looks around and finds everybody being unkind to him. He is aggrieved and wants to ventilate his feelings

and reaction.

Torrington has approved a useful categorization of dissatisfaction complaint and grievance.

Dissatisfaction means anything that disturbs an employee, whether or not the unrest is expressed in words.

Complaint means a spoken or written dissatisfaction brought to the attention of the supervisor or the shop steward.

Grievance means a complaint that has been formally presented to management representative or to a union official.

Definition

A grievance is a formal dispute between an employee and management on the condition of employment.

Grievances are complaints that have been formally registered in accordance with the grievance procedure

Jackson.

A grievance is any dissatisfaction or feeling of injustice in connection with ones employment situation that isa brought to the attention of the management beach.

According to Michael JJucius the term grievance means any discontent or dissatisfaction, whether expressed or

not whether valid or not arising out of anything connected with the company that an employee thinks believes or even

feels, is unfair unjust or inequitable. This definition is very broad and covers dissatisfaction which have the following

characteristics:

1. The discontent may arise out of something connected with the company workers may be dissatisfied

because of several reasons e.g., illness in the family quarrel with a neighbor disburg for the political party in

power, and so on. Such outside sources are beyond the control the control of the company and therefore do

not constitute a grievance.

2. The discontent may be expressed or implied. Expressed grievances are comparatively easy to recognize and

tardiness are manifested in several ways e.g., gossiping, jealousy, active criticism. Argumentation, increasedlabor turnover, carelessness in the use of tools and materials, untidy housekeeping, poor workmanships.

Unexpressed grievances are indicated by indifference to worlike love hatredk, daydreaming, absenteeism, etc.

3. The discontent may be valid, legitimate and rational or untrue and irrational or completely ludicrous.

The point is that when a grievance hold by an employee comes to the notice of management it cannot usually

dismissed it as a irrational or untrue. Such grievances also have to be attended to by the management in the same way

as rational grievances. Emotional grievances which are based upon sentiments, (like love, hatred, resentment, anger,

envy, fear etc.). Misconceptions and lack of thinking are examples of irrational behaviour. These grievances are most

difficult.

Forms of Grievance

An grievance may take any of the following forms:

a. FACTUAL: A factual grievance arises when legitimate needs of employees remain unfulfilled e.g. waged

hike has been agreed but not implemented citing various reasons.

b. IMAGINARY: When an employees dissatisfaction is not because of any valid reason but because of wrong

perception, wrong attitude, or wrong information he has such a situation may create an imaginary grievance.

Though management is not at fault in such instances, still it has to clear the fog immediately.

c. DISGUISED: An employee may have dissatisfaction for reasons that are unknown to himself. If he/she is

under pressure from family, friends, relatives, neighbors, he/she may reach the work spot with a heavy heart. If

a new recruit gets a new table and almirah this may be come and eyesore to other employees who have not

been treated likewise previously.

Causes of Grievances

The causes of grievances may broadly classify in the following categories:


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a) Grievances resulting from working conditions

(i) Improper matching of the worker with the job

(ii) Changes in schedule or procedures

(iii) Non-availability of proper tools machines equipments for doing the job.

(iv) Tight production standards.

(v) Bad physical conditions of work place.

(vi) Failure to maintain proper discipline (excessive discipline or lack of it, both are equally

harmful).

(vii) Poor relationship with the supervisor.

b) Grievances resulting from period maladjustment

(i) Over ambition

(ii) Excessive self esteem

(iii) Impractical attitude to life, etc.

c) Grievances resulting from management policy

(i) Wage payment and job rates.

(ii) Leave

(iii)Overtime

(iv) Seniority

(v) Transfer(vi) Promotion, demotion, discharges

(vii) Lack of career planning and employee development plan.

(viii) Hostility towards a labor union

d) Grievances resulting from alleged violation of

(i) The collective bargaining agreement

(ii) Central or state laws

(iii)Past practice

(iv) Company rules

(v) Managements responsibility

Essential Prerequisites of a Grievance Procedure

Every organization should have a systematic grievance procedure in order to redress the grievance effectively. The

grievance procedure to be sound and effective should possess certain prerequisites.

a) Conformity with statutory provisions- due considerations must be given to the prevailing legislation while

designing the grievance handling procedure.

b) Unambiguity- every aspect of the grievance handling procedure should be clear and unfiguous. All

employees should know whom to approach first when they have a grievance, whether the complaint should be

written or oral the maximum time in which the redrassal is assured etc. the redressing official should also

know the limits within which he can take the required action.

c) Simplicity- the grievance handling procedure should be simple and short. If the procedure is complicated it

may discourage employees and they may fail to make use of it in a proper manner.

d) Promptness- the grievance of the employee should be promptly handled and necessary action must be taken

immediately. This is good for both the employee and management because if the wrong doer is punished late,it may affect the moral of other employees wealth.

e) Training- the supervisor and the union representation should be to nopairly trained in all aspects of grievance

handling beforehand, or else it will complicate the problem.

f) Follow up- the personal department should keep track of the effectiveness and the functioning of grievance

handling procedure and make necessary changes to improve it from time to time.

Grievance Procedure

Grievance procedure is a formal method mutually agreed to by the management and union for dealing with

grievances. It specifies the person to whom grievances may be referred sets time limit for solving the referred problem

and also indicates the way grievances should be filled at various stages- the existence of the formal procedure provides

clear opportunities to employees to seek reappraisal of their grievances. The fact that there is a time limit within which

a decision has to be taken at any particularly level creates the feeling of confidence in the sincerity of management in

dealing with employees problems. It has been the experience of some companies that when a grievances procedure is

introduced the number of grievances shoot up initially it is natural for employees to overuse an opportunity that is


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newly introduced but soon adjustment takes place resulting in an easy and helpful communication among the different

level of the organization. Grievance procedure provides a framework within which the process of dealing with

grievances can take place in an orderly manner.

Steps in the grievance procedure:

a) Identity grievances: employee dissatisfaction or grievance should be identified by the management if they are

not expressed. If they are ventilated, management has to promptly acknowledge them.

b) Define correctly: the management has to define the problem properly and accurately after it is

identified/acknowledge.

c) Collect data: complete information should be collected from all the parties relating to the grievance.

Information should be classified as facts, data, opinion etc.

d) Prompt redressal: the grievance should be redressed by implementing the solution

e) Implement and follow-up: the implementation of the solution must be followed at every stage in order to

ensure effective and speedy implementation.

Grievance Procedure

The procedure normally envisaged in the handling of grievances should be as follows:

1. Approaching the officer designated. Agreed employee shall first present his grievance verbally in person tothe officer designated by the management for this purpose and answer shall be given within 48 hrs of the

presentation of complaint.

2. Presenting grievance to the designated head of department. If the worker is not satisfied with the decision

of this officer or fails to receive an answer within the stipulated period he shall, either in person or

accompanied by his departmental representative, present his grievances to the head of the department.

Designated by the management for the purpose of handling grievance. For this purpose a fixed time shall be

specified during which on any working day, an aggrieve worker could meet the departmental head for

presentation of grievances. The departmental head shall give his answer within three days of the presentation

of grievances. If action cannot be taken within that period, the reason for delay should be recorded.

3. Forwarding the grievance to the grievance committee. If the decision of the departmental head is

unsatisfactory the aggrieved party may request the forwarding of his grievance to the grievance committee

which shall make its recommendations to the manager within 7 days of the workers request. If therecommendations cannot be made within the time limited, the reason for such delay should be recorded.

Unanimous recommendations of the grievance committee shall be implemented by the management in the

event of a difference of opinion among the members of grievance committee the views of the members along

with the relevant papers shall be placed before the manager for final decision. In either case the final decision

of the management shall be communicated to the workman concerned by the personal officer within three days

from the receipt of the grievance committee recommendations.

4. Requesting the management for revision. If the decision from the management is not forthcoming, within

the stipulated period or is unsatisfactory the worker shall have the right to appeal to management. In making

this appeal, the worker if he so desires, shall have a right to take a union official along with him to facilitate

discussions with management. The management shall communicate their decision within a week of the

workmans revision petition.

5. Reference to voluntary arbitration. If no agreement is still possible, the union and the management mayrefer the grievance to voluntary arbitration within a week of the receipt by the worker of management

decision.

6. The conciliation machineryshall not intervene till final step. Where a worker has taken up a grievance for

redress under this procedure the formal conciliation machinery shall not intervene till all steps in the procedure

are exhausted. A grievance shall be resumed to assume the form of the dispute only when the final decision of

the top management in respect of the grievance is not acceptable to the worker.

7. Grievance stemming from an order by the management. If a grievance arises out of an order given by

management, the said order shall be compiled with before the workman concerned invokes the procedure laid

down for redress of grievance. If however, there is time lag between the issue of order and its compliance the

grievance procedure may immediately be invoked by the order nevertheless must be compiled within the due

date, even if all the steps sin the grievance procedure have not been exhausted. It may however be advisable

for the management to await the findings of grievance procedure machinery.

8. Access to connected documents. Workers representation on the grievance committee shall have the right of

access to any document connected with the enquiry maintained in the department which may be necessary to

understand the merits or otherwise of the workers grievances. The managers representative shall have the


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right, however to refuse to show any document or any grieve information which they consider to be a

confidential nature. Such confidential document shall not be used against the workman in the source of the

grievance proceedings.

9. Time limit for appeal. There shall be a time limit within which an appeal shall be taken from one stage to

another. For this purpose the aggrieved worker shall within 72 hrs of the receipt of the decision at one stage or

if no decision is recourse on the expiry of the stipulated period, find his appeal with the authority at the next

higher stage, should be feel inclined to appeal.

10. Other arrangements in the grievance procedures. In calculating the various time intervals under the above

clause, holidays shall not be reckoned.

11. Management shall provide the necessary clerk and other assistance for the smooth functioning of the grievance

machinery.

12. If it necessary for nay worker to leave the department during working hours on call from the labor/personal

officer or any other officer of the established grievance machinery, previous permission of his superior shall

necessarily be obtained subject to this condition, the worker shall not suffer any loss in wages for the work

time lost in this manner.

13. If however, thereby any complaint against any individual member of the staff who is nominated by the

management to handle grievance at the lowest level the workman may take up his grievance at the next higher

stage that is, at the level of the departmental head.

14. Grievance arising from discharge or dismissal. In case of any grievance arising out of discharge or

dismissal of a workman above mentioned procedure shall not apply. Instead a discharge workman shall havethe right to appeal either to the dismissing authority or to a senior authority that shall be specified by the

management within a week from the date of dismissal or discharge. At the time the appeal is heard, the

workman may, if he so desire, be accompanied by either an official of the recognized union or a fellow worker

as the case may be.

A sound grievance procedure is a must for all organization. Some important procedures tested and proved effective

as suggested by BAER in his book Grievance handling and worth noting.

1. Investigate and handle each and every case as though it may eventually result in dispute.

2. Give employee a full hearing.

3. Enforce agreements in the true spirit and ensure unions identify specific contractual provisions allegedly

violated.4. Do not delay action or in action cause the employee or the union to default on their compliance with any

contractual obligations.

5. Do not deny the grievance for reason of non- compliance.

6. Do not argue the merits of the grievance first if the grievance is untimely.

7. Do not apply grievance remedy to an improper grievance.\

8. Does not hold back the remedy if the organization is wrong and apply the remedy to the person wronged.

9. Do not assume a judicial or arbitrary role.

10. Remember always that the union is a moving party.

11. Determine and ensure there has been equal treatment of employees.

12. Evaluate any political connotations of the grievance.

13. Do not practice Parking-son Law and labor relations.14. Permit reasonable latitude to the unions in the manner of its representations but do not relinquish your

authority.

15. Do not permit misconduct of union representative.

16. Admit errors and take corrective actions.

17. Use the grievance machinery as another channel of communication.

18. Demand proper productivity levels are maintained.

19. Control your emotions remarks and behavior.

20. Recognize employees as individuals. Do not fail to keep employees informed as to where they stand.

Grievance is like headache. It is a symptom and not a disease diagnosed properly, treated appropriately and in

time the organization will be rid of the disease in the beginning itself.

The cardinal principle says listening reduces the burden of the employees and half the problem is already

solved by listening. Listening reduces the Greif of the other party. Political perseverance a searching look

from within, a wide look around a long look ahead on the part of the manager always ensure that the work of

grievance handling machinery is reduced to a considerable and manageable extent.


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LABOUR TURNOVER

Labor Turnover is the Rate of change in the working Staff

Labor Turnover is the extent to which the old employee leave and new employees enter the services of the

concern

Statistically, labor Turnover is expressed as the ratio of yearly or monthly separations to the average numberof full time workers for that period. It is assumed that the total number of jobs available in an organization is

constant.

Labor Turnover can be measured either by Separation Rate or by Accession Rate.

o Separation Rate may be defined as the total number of workers separated, left, terminated, wheather

through death, retirement, or retrenchment from the employment during the period (i.e. severance of

employment at the instance of workers or employers).

o Accession Rate may be defined as the total number of workers added to the employment duting the

period whether they were new or re-employed or transferred from other establishments or units underthe same management.

If the number of employees remains same then , SR=AR

If the number of employees are increasing then, AR>SR

If the number of employees are decreasing then, SR>AR

Causes of Labor Turnover

1. Resignations: The chief cause of the labor turnover are resignations due to variety of reasons such as

dissatisfaction with the working conditions, insufficient wager, bad health, sickness, old age, family

circumstances, and for agricultural operations, etc.

2. Dismissals: The dismissal of employees is the second important cause of labor turnover which may be due to

disciplinary actions in case of inefficient, insubordination, participation in strikes and misconduct, etc.

Victimization of workers who interest themselves in trade union activities has been alleged to ne a fruitful

cause of dismissal.

3. Lay-Offs: The employees are laid off by the employers on account of shortage of raw materials or

discontinuance of their business due to certain other difficulties. Hence the employees seek employmentelsewhere. This increases the rate of labor turnover.

4. Discharge of workers: This occurs when a particular piece of work for which they have been taken on is

completed. For instance the employment of the temporary workers in the seasonal industries like sugar

factories is followed by their discharge after the season.

5. More attractive jobs: The attraction of high wage rates and other benefits often tempt workers to migrate

from one enterprise or place of work to another enterprise or place of work.

6. Methods of Recruitment and Promotion: For instance, recruitment through Badli system has contributed to

a high labor turnover to a high labor turnover. Again in the absence of clearly laid down policy of promotionin the establishment, the workers do not stay in the organization.


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7. Circumstances of workers: The accident, death, superannuation, marriage and the desire of the worker to

change work are also the reasons that cause labor turnover. Workers who make a periodic exodus to the

village for agricultural operations very often regard industrial employment as merely a second string to their

bow. Thus labor turnover occurs as a result of migratory character of the labor.

8. Unstable working and Service conditions: A worker may leave the job in the present factory and seek

employment in the other, because of unsuitable working and other service conditions. Besides, the workers

may leave his present job because of inaccessibikity of the workers home, lawer wage rates and unsatisfactoryopportunities for future promotions and advancements.

9. Fellow workers and unions: Sometimes, the workers leaves his present job on account of disagreeable

relations with the fellow workers. In certain cases, they are victimized in account of their active participation

in the activities of their unions.

10. Female workers: The female workers at the time of their marriage and other family responsibilities leave the

job and again join some other establishments after the period is over. Therefore, the rate of labor turnover is

high among female workers as they have to attend domestic duties and depend on their husbands.

Methods to Reduce the Labor Turnover

1. Evils in the method of recruitment should be removed.

2. Recruitment should be made through employment exchanges

3. Restrictions on the powers of jobbers should be imposed

4. Improvement in the working conditions of the workers should be made

5. Enlightened policy of labor management should be followed

6. Proper wages should be paid

7. Transfers and promotions should be made on the basis of merit

8. Proper provisions for leave and holidays should be made

9. Provisions of facilities for education and training should be made so that workers may get opportunity of

increasing their efficiency and wages

10. Provisions for the welfare of the workers should be made liberally

11. The schemes of employment and sickness insurance should be introduced

12. Measures should be adopted to improve the economic position of the workers and given them security of

employment

13. Employers should keep close contact with the trade unions and redress grievances of the workers through

trade unions

Trade union should maintain contact with workers and get their grievances redressed through the unions

ABSENTEEISM


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Meaning of Absenteeism:

Absenteeism means the failure of the worker to report for work when he is scheduled to work. A worker is

considered scheduled to work when the employer has work available for him and the worker is aware of it .absence on

account of strike ,lockout, layoff or suspension is not taken into account.

Definitions:

Prof. Ankalikr defines absenteeism as, unauthorized absence of the worker from his job

Prof. K.G Fenelon define it as the absence of worker when work is available

Causes of Absenteeism:

1. Lack of interest or a feeling of responsibility and worth whileness.

2. After pay day sickness and hangovers contribute to absenteeism.

3. Attitude of mind caused by environmental and sociological factor may condition some to develop a feeling of

irresponsibility about going to work.

4. Industrial accident and occupational disease bring about absenteeism.

5. Poor production and material control can result absenteeism unless the flow of work between departments is

balanced and continuous.6. Sickness is high on the list of causes of absenteeism.

7. Some other factor like bad weather, lack of transportation, search for another job, personal business and friend

visiting from distance locations.

Measurement of Absenteeism

The absenteeism rate is defined as the total man shifts lost because of absences as a percents of the total

number of man shits scheduled

Thus we can estimate the rate of absenteeism in the following manner.

Rate of absenteeism = No of total man shifts lots

No of total shifts scheduled

Effects of Absenteeism:

1. It directly or indirectly reduces the amount of production

2. Distinct loss to workers because the irregularity in attendance reduces their income, when no work no pay

is the general rule.

3. Employer is suffered as both discipline and efficiency suffered

Control of Absenteeism:

Absenteeism is the serious problem for the management because its additional expenses. Hence, the measures are

taking by the management for the control of absenteeism:

1. The chronic offenders may be disciplined by layoffs, discharges and loss of promotion and other privileges.

2. The new employees should be induced in such a way that there critical attitude is reduced as quickly as

possible to avoid absenteeism from this source.

3. The chronic offenders may be ridiculed by publicizing their names.

4. All absent workers should be interviewed upon their return to determine causes and to impress upon their

seriousness of their absence.

5. The management should properly analyze the various causes of absenteeism and classify the chronic

offenders.

WORKERS PARTICIPATION IN MANAGEMENT

Industry is now considered as a social institution


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Both the management and the employees have equal interest in the survival and the prosperity of the industry

Concept of participation is based on the concept of co-partnership and co-operation

Moreover the

Growth of professionalism in the industry,

Advent of democracy,

Development of the principles of social justice,

Transformation of traditional labour management relations

Have added new dimensions to the concept of participative management

Forms Of Participation

1. Participation Through Ownership:-

By making workers shareholders of the company

It has a distinct advantage of making the workers more committed to the job

2. Participation through complete control:-

Workers require complete control of the management through elected board

It gives complete control to workers to manage directly all aspects of industries through their

representatives

Industrial disputes disappears when the workers develop loyalty to the organization

Trade unions welcome this type of participation

But it is not an answer to the problem of participation because the workers do not evince (having quality

of strength) interest in management decisions

3. Participation through staff and work councils:-

The councils have different functions in the management of enterprise, ranging from shop floor to the

board level

They are a right step in the direction of industrial democracy

But they are not successful because of the fear expressed by the trade union leaders that being mainly

workers body staff councils may erode (destroying) their powers and prestige

4. Participation through Joint Councils and Committees:-


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