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VSB ENGINEERING COLLEGE

DEPARTMENT OF MANAGEMENT STUDIES

STAFF NAME : N.PRABHA

CLASS/TRIMESTER : II MBA / IV

SUBJECT : INDUSTRIAL RELATION AND LABOUR LEGISLATION

2 MARK QUESTIONS WITH ANSWER:

1. Concept of Industrial Relations:

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

Industry refers to any productive activity in which an individual (or a group of

individuals) is (are) engaged. By relations we mean the relationships that exist

within the industry between the employer and his workmen.

2. Approaches of IR

Unitary perspective

Pluralistic perspective

Marxist Perspective

3. Collective bargaining:

Collective bargaining is process of joint decision making and basically represents a

democratic way of life in industry. It is the process of negotiation between firms and

workers representatives for the purpose of establishing mutually agreeable conditions

of employment. It is a technique adopted by two parties to reach an understanding

acceptable to both through the process of discussion and negotiation.

Collective bargaining consists of negotiations between an employer and a group of

employees that determine the conditions of employment.

4. Levels of Collective Bargaining

1. National level

2. Sector or industry level

3. Company/enterprise level

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5. Collective bargaining process:

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6. Trade Union

The Trade Union Act 1926 defines a trade union as a combination, whether temporary

or permanent, formed primarily for the purpose of regulating the relations between

workmen and employers or between workmen and workmen, or 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.

7. Functions of Trade unions

Militant functions,

Fraternal functions

8. Reasons for Joining Trade Unions

1. Greater Bargaining Power

2. 2. Minimize Discrimination

3. . Sense of Security

4. Sense of Participation5. Sense of Belongingness

6. Platform for self expression

7. Betterment of relationships

9. Casual Workers:

Casual workers are those workers who are generally employed by small entrepreneurs

on daily or weekly basis on a low wage rate. They are not entitled to any paid holiday

leave or paid sick leaves

10. Twelve Central Trade Union Organizations in India:

All India Trade Union Congress (AITUC)

Bharatiya Mazdoor Sangh (BMS)

Centre of Indian Trade Unions (CITU)

Hind Mazdoor Kisan Panchayat (HMKP)

Hind Mazdoor Sabha (HMS)

Indian Federation of Free Trade Unions (IFFTU)

Indian National Trade Union Congress (INTUC)

National Front of Indian Trade Unions (NFITU)

National Labor Organization (NLO)

Trade Unions Co-ordination Centre (TUCC)

United Trade Union Congress (UTUC) and United Trade Union Congress - Lenin Sarani (UTUC - LS)

11. Grievance

Grievance means any type of dissatisfaction or discontentments arising out of factors

related to an employees job which he thinks are unfair. A grievance arises when an

employee feels that something has happened or is happening to him which he thinks is

unfair, unjust or inequitable.

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12. Industrial Disputes

As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined

as any dispute or difference between employers and employers, or between employers

and workmen, or between workmen and which is connected with the employment or

non-employment or the terms of employment or with the conditions of labor, of any

person

13. Causes of Industrial Disputes

Wages and allowances

Personnel and retrenchment

Indiscipline and violence

Bonus:

Leave and working hours

Miscellaneous: The miscellaneous factors include

- Inter/Intra Union Rivalry

- Charter of Demands

- Work Load- Standing orders/rules/service conditions/safety measures

- Non-implementation of agreements and awards

14. Strike:

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

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

any number of persons who are or have been so employed to continue to work or to

accept employment; or a refusal under a common understanding of any number of

such persons to continue to work or to accept employment.

15. Economic Strike: Under this type of strike, labors stop their work to enforce their

economic demands such as wages and bonus. In these kinds of strikes, workers ask

for increase in wages, allowances like traveling allowance, house rent allowance,

dearness allowance, bonus and other facilities such as increase in privilege leave and

casual leave.

16. Sympathetic Strike: When workers of one unit or industry go on strike in

sympathy with workers of another unit or industry who are already on strike, it is

called a sympathetic strike. The members of other unions involve themselves in a

strike to support or express their sympathy with the members of unions who are onstrike in other undertakings. The workers of sugar industry may go on strike in

sympathy with their fellow workers of the textile industry who may already be on

strike.

17. General Strike: It means a strike by members of all or most of the unions in a

region or an industry. It may be a strike of all the workers in a particular region of

industry to force demands common to all the workers. These strikes are usually

intended to create political pressure on the ruling government, rather than on any one

employer. It may also be an extension of the sympathetic strike to express generalized

protest by the workers.

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18. Sit down Strike: In this case, workers do not absent themselves from their place

of work when they are on strike. They keep control over production facilities. But do

not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers

show up to their place of employment, but they refuse to work. They also refuse to

leave, which makes it very difficult for employer to defy the union and take the

workers' places. In June 1998, all the Municipal Corporation employees in Punjabobserved a pen down strike to protest against the non-acceptance of their demands by

the state government.

19. Slow Down Strike: Employees remain on their jobs under this type of strike.

They do not stop work, but restrict the rate of output in an organized manner. They

adopt go-slow tactics to put pressure on the employers.

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

call in sick on the same day. They dont break any rules, because they just use their

sick leave that was allotted to them on the same day. However, the sudden loss of so

many employees all on one day can show the employer just what it would be like ifthey really went on strike.

21. Wild cat strikes: These strikes are conducted by workers or employees without

the authority and consent of unions. In 2004, a significant number of advocated went

on wildcat strike at the City Civil Court premises in Bangalore. They were protesting

against some remarks allegedly made against them by an Assistant Commissioner

22. Lock Out:

Lock-out means the temporary closing of a place of employment or the suspension of

work or the refusal by an employer to continue to employ any number of persons

employed by him.

23. PICKETING

when workers are dissuaded from work by stationing certain men at the factory gates,

such a step is known as picketing. If picketing does not involve any violence, it is

perfectly legal. Pickets are workers who are on strike that stand at the entrance to their

workplace. It is basically a method of drawing public attention towards the fact that

there is a dispute between the management and employees.

25. GHERAO

Gherao in Hindi means to surround. It denotes a collective action initiated by a group

of workers under which members of the management are prohibited from leaving the

industrial establishment premises by workers who block the exit gates by forming

human barricades.

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26. Workers participation:

ILO: Workers participation, may broadly be taken to cover all terms of association of

workers and their representatives with the decision-making process, ranging from

exchange of information, consultations, decisions and negotiations, to more

institutionalized forms such as the presence of workers member on management or

supervisory boards or even management by workers themselves

27. Retrenchment means the termination by the employer of the service of a

workman for any reason whatsoever, otherwise than as a punishment inflicted by way

of disciplinary action, but does not include -

(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of superannuating if the contract of

employment between the employer and the workman concerned contains a stipulation

in that behalf; or

(c) termination of the service of the workman as a result of the non-removal of the

contract of employment between the employer and the workman concerned on its

expiry or of such contract being terminated under a stipulation in that behalf

contained therein; or

(d) termination of the service of a workman on the ground of continued ill-health.

28. Lay-off means the failure, refusal or inability of an employer on account of

shortage of coal, power or raw materials or the accumulation of stocks or the break-

down of machinery or natural calamity or for any other connected reason to giveemployment to a workman whose name is borne on the muster-rolls of his industrial

establishment and who has not been retrenched.

29. Attrition

Attrition refers to reduction in staff that are vacated through resignation,

reassignment, transfer, retirement, or means other than layoffs.

30. Separation

Any termination of employment. It is generally classifiable as a layoff, voluntary quit,

or discharge.

31. Employee TurnoverThe ratio of the number of workers that had left in a given time period to the average

number of workers.

32. What is Factory?

Where on 20 or more workers are working or were working on any day of the

preceding 12months and in any part of which a manufacturing process is being carried

on without the aid of power or in ordinarily so carried on

33. Adult

A person who has completed his 18 years of age

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34. Adolescent

A person who has completed his 15th year of age but has not completed his 18th year.

35. Child

A person who has not completed his 15th year of age

36. Competent person

A person or an institution recognized as such by the chief inspectors

37. Calendar year

It means the period of 12 months beginning with the 1st day of January in any year.

38. Young person

A person who is either a child or an adolescent

39. Labour Laws

Labour law also known as labor law is the set of laws, administrative rulings, and

precedents which address the legal rights of, and restrictions on, working people and

their organizations. As such, it mediates many aspects of the relationship between

trade unions, employers and employees

40. Appeal: Application to a higher Court for a review of a decided case

41. Arbitration: A system of dispute settlement in which an independent third party

(e.g. Queensland Industrial Relations Commission) considers a dispute between two

or more parties, and having taken submissions, decides upon the basis of agreement.

The decision is then binding on the parties

42. Conciliation: A dispute settling method in which a third party, usually an

independent, seeks to bring the disputants to the point where they can reach

agreement. The conciliator acts as an "honest broker" in the negotiations. In Australia,

agreements produced through formal conciliation lead to changes in award provisions.

If the conciliator is unsuccessful in settling some or all of the issues that are in

dispute, these items can be referred to arbitration.

43. Employee: A person whose employment is governed by a contract of service or

other relevant employment law, or a person defined as or deemed to be an employeeunder theIndustrial Relations Act 1999

44. Employer: A person, corporation, enterprise or organisation that employs or

engages a person or persons including those persons who are defined as an employer

under the Industrial Relations Act 1999

45. Employer Association: An organisation whose membership generally consists of

employers who operate in the same or related industries and tend to act as coordinator

of some industrial interest of the member companies. Registration with the

Commission is mandatory for an organisation to be included under this heading.

46. Jurisdiction: The power of the Court or Commission to hear a matter

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47. Termination: The act of ending the employee/employer contract by either the

giving of notice, instant dismissal, resignation or frustration of contract.

48. Parental Leave: Parental leave is an entitlement that MAY be shared between the

parents of the child. Except for one week after birth, the employee and spouse are

normally required to take the leave at different times

49. Piece Rate: The rate per unit or output that is fixed from time to time in a

payment by results system. The piece rate is typically the product of (a) an attempt to

measure the normal or expected output for a period of time for an employee working

normally, and (b) negotiation with employees concerning a 'fair' rate of pay per unit

produced.

50. Union-

Common name for an employee organisation. Group of employees in similar

occupations or industries who join together to bargain with their employers regarding

working conditions.

51. Attrition-

A term used to describe voluntary and involuntary terminations, deaths, and employee

retirements that result in a reduction to the employer's physical workforce.

52. Employee retention-

Organizational policies and practices designed to meet the diverse needs of

employees, and create an environment that encourages employees to remain

employed.

53. Legislation-

Law emanating from Parliament in the form of Acts.

54. Outplacement-

A benefit offered by the employer to displaced employees which may consist of such

services as job counseling, training, and job-finding assistance.

55. Outsourcing-

A contractual agreement between an employer and an external third party provider

whereby the employer transfers responsibility and management for certain HR,

benefit or training related functions or services to the external provider.

56. Suspension-

A form of disciplinary action resulting in an employee being sent home without pay

for a specified period of time.

57. Occupier: The person who has ultimate control over the affairs of the factory

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58. Disablement: Disablement means loss of capacity to work or to move.

Disablement of a workman may result in loss or reduction of his earning capacity.

59. Partial disablement: Any disablement as reduce the earning capacity of a

workman as a result of some accident.

60. Temporary partial disablement: As reduce the earning capacity of a workman

in any employment in which he was engaged at the time of accident.

61. Permanent partial disablement: Disablement reduces the earning capacity of a

workman in every employment which he was capable of undertaking at the time of

injury.

62. Total disablement: Disablement whether of a temporary or permanent nature, as

incapacitates a workman for all work which he was capable of performing at the time

of the accident resulting in such disablement.

63. Employment injury: Personal injury to an employee cause by accident or anoccupational disease arising out of and in the course of his employment being an

insurable employment whether the accident occurs or the occupational disease in

contracted within or outside the territorial limits of India.

64. Superannuation: In relation to an employee who is the member of the pension

scheme means the attainment by the said employee of the age of 58 years.

65. Appellate authority: It means an authority appointed by the appropriate

government by notification in the official gazette to exercise the functions of an

appellate authority under the act.

66. Appropriate Government: It means in respect of industrial establishments underthe control of the central government or a railway administration or in a major poart,

mines or oilfield, the central government. In all other cases, appropriate government

means the state government

67. Certifying officer: Certifying officer means a labour commissioner or a regional

labour commissioner and includes any other officer appointed by the appropriate

government by notification in the official gazette to perform all or any of the

functions of a certifying officer under the act.

68. Accounting year: In relation to a corporation the year ending on the day on which

the books and accounts of the corporation are to be closed and balanced.

69. Staff and Works Councils:

1. Staff councils or works councils are bodies on which the representation is

entirely of the employees. There may be one council for the entire

organization or a hierarchy of councils. The employees of the respective

sections elect the members of the councils. Such councils play a varied role.

2. Their role ranges from seeking information on the managements intentions to

a full share in decision-making.Such councils have not enjoyed too much of

success union leaders fear the erosion of their power and prestige if because

trade such workers bodies were to prevail.

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70. Joint Councils: Joint councils are bodies comprisin representatives of employers

and employees. This method sees a very loose form of participation, as these councils

are mostly consultative bodies.

71. Work committees: Work committees are a legal requirement in industrial

establishments employing 100 or more workers.Such committees discuss a wide range of topics connected to labour welfare.

o Examples of such committees are welfare committee, safety committee, etc.

o Such committees have not proven to be too effective in promoting industrial

democracy, increasing productivity and reducing labour unrest.

72. Gratuity: Gratuity is a lump sum payment made by the employer as a mark of

recognition of the service rendered by the employee when he retires or leaves service.

Gratuity is paid to employee out of Gratitude by employer if an employee complete 5

years of continuous service with the organisation.Gratuity will be calculated as

Basic + DA *15*No of years of service / 26

73.Cost of living index: Cost of living is the cost of maintaining a certain standard of

living. Changes in the cost of living over time are often operationalized in a cost of

living index. ...

74.Spittoons: a receptacle for spit (usually in a public place) In every factory, the

provisions of a sufficient number of spittoons in convenient places is obligatory.

Such spittoons are required to be maintained in a clean and hygienic condition.

75. Absenteeism: Absenteeism means an individual remain absent without any

information or intimation to his superior.

76. Wage:A wage is a compensation, usually financial, received by a worker in

exchange for theirlabor.

77. Salary: A salary is a form of periodic payment from an employerto an employee,

which may be specified in an employment contract. It is contrasted with piece wages,

where each job, hour or other unit is paid separately, rather than on a periodic basis.

78. Remuneration: Remuneration is pay or salary, typically a monetary payment for

services rendered, as in an employment. Usage of the word is considered formal

79. Bonus: anything that tends to arouse; "his approval was an added fillip" an

additional payment (or other remuneration) to employees as a means of increasing

output

80. Closure: A process by which the organisation ceases the operation.

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