Ppts on Industrial Relations

Introduction to industrial

relations.

Growth of labor jurisprudence

 Development in Europe in 16th

Century

 Adoption of philosophy of laissez

faire in most of the nations in Europe

 Development of Marxian philosophy  Labour unrest in Europe

Rise of international labour

organizations

 Danial Le grand’s contribution

 International benevolent congresses

of 1856 and 1857

 International factory and mine labour

conference of 1890

 International association of labour

legislation 1900

ILO’s efforts to standardize

principles governing industrial

relation through conventions and

recommendations.

Meaning of industrial relations

 Meaning of industrial relations:

 It is a process by which people and their

organizations interact at the place of work to establish the terms and conditions of employment.

 It denotes employee-employer relations,

in both organized and unorganized sectors of the economy.

Importance of industrial relations

 Implication of industrial relations on

workers and economy.

 Development of healthy labour

management relations.

 Maintenance of industrial peace.

Factors of industrial relations and

factors affecting industrial relations.

 Factors of industrial relations

 Workers and their organization  Management

Factors affecting industrial

relations.

 Institutional factors  Economic factors  Social factors  Technological factors  Psychological factors.  Political factors.  Enterprise-related factors.  Global factors.

Approaches to industrial relations.

 Psychological approach

 Sociological approach

 Human relation approach  Socio ethical approach

 Gandhian approach  System approach

Human relations approach

 For maintaining good human relations

in general and industrial relations in particular, the study of human needs is of paramount importance.

 Types of human needs

 Physiological needs  Safety needs

 Social needs  Egoistic needs

Human relations approach

 Physiological needs

 Food, water, clothing, shelter etc.

 Security needs or safety needs

 Physical security  Financial security  Job security  Social needs  Companionship  affection  Egoistic needs

 Desire of self-esteem and  Esteem from others.

How to manage IR under Human

relations approach

 Management has to design a suitable

motivational strategy to provide environment for their optimum need satisfaction, required for maintaining good human relations in the organizations, which in turn also leads to good industrial relations.

Human relation approach

cont…

 If both the management and the workers

understand and apply the techniques of human relations to industrial relations then it is beneficial for both of them leading to following results:

 Workers are to achieve greater job satisfaction, develop greater involvement in their work and achieve a measure of identification of their objectives with the objectives of the organization.

 Management will also get greater insight and effectiveness in the work leading to industrial progress

Socio-ethical approach

 This approach is not widely accepted

 It holds that industrial relations to great

extent depends on ethics of the people involved in it.

 For maintenance of good Industrial

relations both the labour and management should realize their moral responsibility and greater understanding of each other’s problem

Socio-ethical approach

contd..

 The goal of labour management relations is

ensuring maximum productivity, leading to rapid economic development

 This goal can be achieved by adequate

understanding among employers, workers and the government, of each other’s role in industry and willingness among parties to co-operate as partners in the industrial system.

Role of manager under

socio-ethical approach

 Development of a code of ethics and

a management philosophy for industrial relations.

 This philosophy should be firm but

fair, tough but tender and hard but human.

Gandhian approach to industrial

relations.

 This approach of industrial relations is

based on the following concepts:

 Truth

 Non-violence  Aparigraha

 Non-co-operation  trusteeship

Gandhian approach -

contd…

 Worker has right to strike

 This right has to be exercised in a just

cause, and in a peaceful and non-violent manner

 It should be resorted to only after the

employer fail to respond to their moral appeals

 Disputes between employers and labourers

are to be resolved non-violent means.

 Non-co- operation amounts to peaceful

Principles of Aparigraha

 Individual does not have any right to

hold or use wealth in disregard of the interest of society

 The character of production is to be

determined by social necessity rather than by personal whims or greed.

Trusteeship

 There is no room for conflict of

interest between the capitalist and labourers.

Characteristics of Indian labor

 Social composition

 Sex composition of workers  Emergence of tribal labour  Heterogeneity of labour

 Lack of differentiated class character  High rate of absenteeism and labour

turnover

 Migratory character

Social composition

 Workforce was generally provided by

lowest castes, depressed classes.

Sex composition

 Participation of women in socioeconomic

activities is a common practice in developed as well as developing countries of the world.

 Position in India

 Domination of male workers in earlier

stages

 Women’s right to work  Constitutional provisions

Tribal labour

Heterogeneity of of labour

 Division on the basis of caste,

communities, ethnic group, religion, language, s

High rate of Absenteeism and

labour turnover

 Sickness Accidents or maternity  Social and religious causes

Labour movement in India

 Labour movement confused with trade

union movement

 It is a movement for the workers

 Trade union movement is the movement by

the workers

 The people involved in the labour

movement are social reformers to improve working and living conditions.

 It started from 1875

Trade union - Meaning

 By Webb “A trade union is a continuous association of

wage-earners for the purpose of maintaining or improving the conditions of their working lives.

 Clyde states that A trade union is a continuing

organization of employees established for the purpose of protecting or improving through collective action, the economic and social status of its members

 GDH Cole defines a trade union to mean “an

association of workers in one or more professions carried on mainly for the purpose of protecting and advancing the members’ economic interest of members.

Meaning of trade union under trade

union Act

 It is any combination, whether temporary

or permanent, formed primarily for the purpose of regulating the relation between the workmen and employer, or between workmen and workmen, between employers and employers or for imposing restrictive condition on the conduct of any trade or business and includes any federation of two or more trade unions.

General features of trade unions

 It is an association of either employers or employees

or of independent workers.

 Examples of employer’s unions are :

 Merchant’s of employers association , all India

manufactures organization, Organization of industrial employers, the Tea planters' Association of North India, The united planters’ Association of South India.

 General labour unions

 Combination of intellectual labour like All India teachers’ association, all India Bank Employees Association, National federation of Indian

 Labour unions are relatively permanent association of workers and are not temporary or casual

 Trade unions are association engaged in securing economic benefits for its members.

 The character of trade unions has been constantly changing

 The origin and growth of trade union have been influenced by a number of ideologies

Functions of trade unions in India

 Protect and promote the interest of workers and conditions of their employment.

 To achieve higher wages and better working and living conditions for members.

 To acquire control over running of the industry by workers.  To minimize the helplessness of the individual workers and

protecting them from victimization.

 To raise the status of the workers as partners in industry  To encourage sincerity and discipline among workers

 Take up welfare measures for improving the morale of the workers

 To safeguard the security of tenure

 To enlarge opportunities for promotion and training

 To provide for educational, cultural and recreational facilities

Types and structures of trade

unions.

 Unions classified on the basis of

purpose

 Union classified on the basis of

membership structure

 Structure of trade unions in India

Trade unions classified according to

purpose

 Reformist union

 Revolutionary union  Reformist union:

 Preservation of capitalist society

 Maintenance of usual employer-employee relationship,

 Elimination of competitive system of production  Desire to modify in industry in accordance with

what their members consider to be current modes in society

Reformist union …..

 Improving working conditions by

enforcing safety measures

 Try to generate increased purchasing

power

 Seek to dignify labour by forcing upon

public and its leaders a recognition of the importance of labour in modern society

Revolutionary unions

 Aim at destroying the present

structure completely and replacing it with new and different institutions.

 They seek to destroy capitalist

industry and abolish the wage system and private property, to put an end to a society based primarily upon competition and individual rights, and substitute some other system,

Classification of revolutionary

unionism

 Anarchist unions  Political unions  Predatory unionism  Guerrilla union

Union classified on the basis of

membership structure

 Craft union  Staff union  Industrial union  General union

Craft union

 Organizations of workers employed in a particular

craft or trade

 Such unions link together those workers who have

similar skills, craft training and specialization

 They are mostly found amongst non-manual

employees and professional workers

 The members are craft-conscious than class

conscious.

 These unions aim at safeguarding the interests of the

members against the onslaughts of employers.

 they provide only the barest minimum of associative

Staff union

 It refers to both craft and industrial

Industrial unions

 Industrial unions are organisation of

workers

 Common bond is the industry

 They include all type of workers  Organised upon an industry wise

rather than a craft wise basis.

 Solidarity among them is due to class

General unions

 Organisations which covers various

industries and labourers having different types of skills

 Objectives of these unions are

all-embracing in character

 They have numerical superiority  They are open to all classes of

workers

Trade union structure

 National federations

Trade union movement in India

 Early years

 Slow pace of the trade union movement  First strike at Express Mills at Nagpur

 Establishment of Bombay Mill Hands

Association by N.M. Lokhande

First world war period

 Increase in number of strikes and their

ruthless suppress of these strikes – starting point of trade union movement

 Formation of the Madras labour union 1918  Formation of unions in Bombay and

Calcutta in the year 1918 itself

 Establishment of unions in all important

industries such as railways, docks, textiles, engineering and coal mining in 1920

Between 1920 -29

 Formation of AITUC

 Expansion of number of trade unions

and membership

 Enactment of The Indian Trade union

Act.1926

 Growth of the Left-wing influence on

the Indian Trade union Movement

 Split in AITUC and formation of

Between 1930 -1939

 Further split in AITUC and formation

of red trade union congress

 Reunification of trade union

Present scenario of trade union

movement in India

 Central trade unions

 Indian national trade union congress  All Indian trade union congress

 United trade union congress  Bhartiya Mazdoor sangh

Problems of trade unions

 Internal problems

Internal problems

 Migratory character

 Heterogeneous character  Poor economic condition  Illiterate labour

 Ineffective leadership

 Lack of unity among different federations.  Low membership

External problems

 Problems with respect to recognition  Political pressures

 Out dated labour law

Measures to strengthening trade

union movement

 Educating workers

 Economic and social upliftment  Encourage internal leadership  Sufficient funds

 Internal unity

 Clarity as to recognition

 Free from political pressure

 Promotion of welfare activities  Training of leaders

Trade unions Act 1926

 Scheme of the Act

 Registration of trade union  Cancellation of registration  Recognition of trade union

 Rights and privileges of registered

Scope of the Act

 It applies to all kinds of unions of

workers and association of employers.

Registration of trade union

 Registration is not compulsory

 Any seven or more members by subscribing

to the rules of the trade union can apply for registration

 At least 10% of the applicants should be

actually employed in the industry

 Application has to be made to the registrar

of trade union

 Application must be accompanied by copy

of the rules of trade union and containing few statutory details

Details to be given along with

Application

 Name, occupation and addresses of

members making application

 Name of the trade union and the

address of its head office

 Titles, names, addresses and

occupation of the officers of trade union

Legal status of registered trade

union

 Trade union is a body corporate

 Perpetual succession  Common seal

 Registered trade union can sue and be

sued in its own name

 Can acquire, hold, sell or transfer any

Cancellation of registration

 On the application

 Suo motu

 Registration obtained by fraud and

mistake

 Trade union ceased to exit.

Recognition of trade union

 Recognition of trade union is a voluntary

measure

 Annexure A to trade union Act 1926 on

recognition of trade union

 Where there are more than one trade union, a union functioning of for at least one year after registration should get recognition

 Once the union is recognized, there should be no change in its position for 2 years

 Union with largest membership should be recognized

 Unions which observe the code of discipline are entitled to recognition

Collective bargaining

 Introduction

 Concept of collective bargaining  Definition of collective bargaining

objectives of collective bargaining

Prime objective is to maintain cordial relations between the management and the workers;

settle disputes relating to wages and working conditions. Safe guard the interest of workers through collective

action

Prevent unilateral action on part of the employers

To raise workers standard of living and win a better share in company's profit

Democratic participation in decision making on the working conditions

Pre-requisites of effective collective

bargaining

 Freedom of association

 Strong and stable trade union  Enlightened management

 Mutual trust

 There should not be exaggerated demands  It should be undertaken in the spirit of

accommodation rather than conflict

 Regular meetings between representatives and

employers to consider matters of common interest.

 Problem solving attitude  Favourable political climate

Factors inhibiting collective

bargaining in India

 Lack of proper appreciation as to the philosophy, objectives and advantages of collective bargaining among workers and also on the part of employers and policy makers.

 Multiplicity of trade unions and rivalry among unions.

 Organizational and financial weakness of trade unions

 Lack of definite procedure to determine as to recognition of trade union

 Frequent political intervention in the process of collective bargaining which gives political colour and orientation to the collective bargaining process  Provision of elaborate adjudication machineries

Grievance Handling and Industrial

Discipline

 Meaning of grievance

 Grievance is a complaint or

representation as regards to work place related matter arising from employment or service condition

Causes of grievances

 Matters like discipline and dismissal  Payment of wages and fringe benefits  Working time, over-time entitlements  Promotion, demotion and transfer

 Rights deriving from seniority

 Obligations relating to safety and

Procedure for settlement of

grievances

Procedure for settlement of

grievances

Indiscipline and misconduct

 Meaning of indiscipline and

misconduct

 Causes of misconduct  Forms of misconduct

Standing order

 Meaning

 Objects of standing orders  Model standing orders

 Types of punishments under standing

orders

Ethical codes and industrial

relations

Industrial disputes (Conflicts)

 Definition of industrial disputes

 Essentials of industrial disputes

 Factum of dispute

 Parties to the dispute

 Subjectmatter to the disputes  Origin of disputes

Industrial disputes

 Classification of industrial dispute  Impact of industrial disputes

Strikes and lock out

 Meaning

 Types of strikes

 When strikes justified?

 When the strike becomes illegal  Meaning of lockout

Dispute settlement inside the

organization

 Works committee

 Joint management councils

 Grievance settlement authority  Domestic enquiry

Dispute settlement machinery

outside the organization

 Conciliation  Arbitration

conciliation

 Conciliation  definition  Conciliation officer  Meaning  Appointment  Procedure  Powers

 Functions of conciliation officers  Duties of conciliation officer

Board of conciliation

 Constitution of board of conciliation  Duties of Board

 Commencement and conclusion of

conciliation proceedings

 Persons on whom settlement is

binding

Adjudication

 Meaning of adjudication

 Constitution of adjudicating authority  Judges of labour courts

 Jurisdiction of labour courts  Duties of labour courts

Industrial tribunal

 Constitution

 Judges of tribunal  Jurisdiction

National tribunal

 Constitution

 Presiding officer of national tribunal  Jurisdiction

 Procedure  Powers

Awards of the adjudication bodies

 Definition of awards

 Form of the award  Publication of award  Enforcement of award

 Persons on whom the award is

binding

Arbitration

 Definition of arbitration  Voluntary arbitration  Reference to arbitrator  Selection of arbitrator  Arbitration agreement

 Publication of arbitration agreement  Jurisdiction of arbitrator

Arbitration - continued

 Procedure before the arbitrator  Functions of arbitrator

 Commencement of arbitration

proceedings

 Status of arbitrator  Award of arbitrator

Workers participation in

management

 Evolution of concept of worker’s

participation in the management

 Participation of workers in management in

industrially advanced countries

 Levels of participation

 Sachar’s committee on worker’s

participation.

 Varma’s committee on workers

Various policy and legislative measures to ensure industrial democracy in India

Form of workers participation in

India

 Joint councils and their function  Plant council and its function

 Shop councils and their functions.  Scheme of workers’ participation in