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Industrial Relations Home Collective Bargaining

Collective bargaining is process of joint decision makingand basically represents a democratic way of life inindustry. It is the process of negotiation between firmsand workers representatives for the purpose of

establishing mutually agreeable conditions ofemployment. It is a technique adopted by two parties toreach an understanding acceptable to both through theprocess of discussion and negotiation.

ILO has defined collective bargaining as, negotiationabout working conditions and terms of employmentbetween an employer and a group of employees or oneor more employee, organization with a view to reachingan agreement wherein the terms serve as a code ofdefining the rights and obligations of each party in theiremployment/industrial relations with one another.

Collective bargaining involves discussions and negotiations between two groups as to the terms andconditions of employment. It is called collective because both the employer and the employee act as

a group rather than as individuals. It is known as bargaining because the method of reaching anagreement involves proposals and counter proposals, offers and counter offers and othernegotiations.

Thus collective bargaining:

y is a collective process in which representatives of both the management and employeesparticipate.

y is a continuous process which aims at establishing stable relationships between the partiesinvolved.

y not only involves the bargaining agreement, but also involves the implementation of such anagreement.

y attempts in achieving discipline in the industry

yis a flexible approach, as the parties involved have to adopt a flexible attitude towardsnegotiations

Industrial Relations Home Characterstics Of Collective Bargaining

y It is a group process, wherein one group,

representing the employers, and the other, representingthe employees, sit together to negotiate terms ofemployment.


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y Negotiations form an important aspect of the process

of collective bargaining i.e., there is considerable scope

for discussion, compromise or mutual give and take incollective bargaining.

y Collective bargaining is a formalized process by which

employers and independent trade unions negotiate

terms and conditions of employment and the ways inwhich certain employment-related issues are to beregulated at national, organizational and workplacelevels.

y Collective bargaining is a process in the sense that it consists of a number of steps. It beginswith the presentation of the charter of demands and ends with reaching an agreement, whichwould serve as the basic law governing labor management relations over a period of time inan enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust andunderstanding serve as the by products of harmonious relations between the two parties.

y It a bipartite process. This means there are always two parties involved in the process ofcollective bargaining. The negotiations generally take place between the employees and themanagement. It is a form of participation.

y Collective bargaining is a complementary process i.e. each party needs something that theother party has; labor can increase productivity and management can pay better for theirefforts.

y Collective bargaining tends to improve the relations between workers and the union on theone hand and the employer on the other.

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

y Collective bargaining takes into account day to day changes, policies, potentialities,capacities and interests.

y It is a political activity frequently undertaken by professional negotiators.


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Collective Bargaining Process

Collective bargaining generally includes negotiationsbetween the two parties (employees representatives

and employers representatives). Collective bargainingconsists of negotiations between an employer and agroup of employees that determine the conditions ofemployment. Often employees are represented in the

bargaining by a union or other labor organization. Theresult of collective bargaining procedure is called thecollective bargaining agreement (CBA). Collectiveagreements may be in the form of proceduralagreements or substantive agreements. Proceduralagreements deal with the relationship between workersand management and the procedures to be adopted forresolving individual or group disputes.

This will normally include procedures in respect of individual grievances, disputes and discipline.Frequently, procedural agreements are put into the company rule book which provides information on

the overall terms and conditions of employment and codes of behavior. A substantive agreementdeals with specific issues, such as basic pay, overtime premiums, bonus arrangements, holidayentitlements, hours of work, etc. In many companies, agreements have a fixed time scale and a

collective bargaining process will review the procedural agreement when negotiations take place onpay and conditions of employment.

The collective bargaining process comprises of five core steps:

1. Prepare: This phase involves composition of a negotiation team. The negotiation team shouldconsist of representatives of both the parties with adequate knowledge and skills fornegotiation. In this phase both the employers representatives and the union examine theirown situation in order to develop the issues that they believe will be most important. Thefirst thing to be done is to determine whether there is actually any reason to negotiate at all.A correct understanding of the main issues to be covered and intimate knowledge of

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

2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A processwell begun is half done and this is no less true in case of collective bargaining. Anenvironment of mutual trust and understanding is also created so that the collectivebargaining agreement would be reached.

3. Propose: This phase involves the initial opening statements and the possible options thatexist to resolve them. In a word, this phase could be described as brainstorming. Theexchange of messages takes place and opinion of both the parties is sought.

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

place.


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5. Settlement: Once the parties are through with the bargaining process, a consensualagreement is reached upon wherein both the parties agree to a common decision regardingthe problem or the issue. This stage is described as consisting of effective jointimplementation of the agreement through shared visions, strategic planning and negotiated

change.

Importance Of Collective Bargaining

Industrial Relations Home Importance of Collective Bargaining

Collective bargaining includes not only negotiationsbetween the employers and unions but also includes theprocess of resolving labor-management conflicts. Thus,collective bargaining is, essentially, a recognized way ofcreating a system of industrial jurisprudence. It acts as

a method of introducing civil rights in the industry, thatis, the management should be conducted by rulesrather than arbitrary decision making. It establishesrules which define and restrict the traditional authorityexercised by the management.

Importance to employees

y Collective bargaining develops a sense of self respect

and responsibility among the employees.

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

yCollective bargaining increases the morale and productivity of employees.

y It restricts managements freedom for arbitrary action against the employees. Moreover,unilateral actions by the employer are also discouraged.


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y Effective collective bargaining machinery strengthens the trade unions movement.

y The workers feel motivated as they can approach the management on various matters andbargain for higher benefits.

y It helps in securing a prompt and fair settlement of grievances. It provides a flexible meansfor the adjustment of wages and employment conditions to economic and technologicalchanges in the industry, as a result of which the chances for conflicts are reduced.

Importance to employers

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

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

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

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

1. Collective bargaining leads to industrial peace in the country

2. It results in establishment of a harmonious industrial climate which supports which helps thepace of a nations efforts towards economic and social development since the obstacles tosuch a development can be reduced considerably.

3. The discrimination and exploitation of workers is constantly being checked.

4. It provides a method or the regulation of the conditions of employment of those who aredirectly concerned about them.

Levels of Collective Bargaining


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Industrial Relations Home Levels Of Collective Bargaining

Collective bargaining operates at three levels:

1. National level2. Sector or industry level3. Company/enterprise level

Economy-wide (national) bargaining is a bipartiteor tripartite form of negotiation between unionconfederations, central employer associations andgovernment agencies. It aims at providing a floor forlower-level bargaining on the terms of employment,often taking into account macroeconomic goals.

Sectoral bargaining, which aims at thestandardization of the terms of employment in oneindustry, includes a range of

bargaining patterns. Bargaining may be either broadly or narrowly defined in terms of theindustrial activities covered and may be either split up according to territorial subunits orconducted nationally.

The third bargaining level involves the company and/or establishment. As a supplementarytype of bargaining, it emphasizes the point that bargaining levels need not be mutuallyexclusive.


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Bargaining Form And Tactics

Industrial Relations Home Bargaining Forms and Tactics

A collective bargaining process generally consists of four

types of activities- distributive bargaining, integrative

bargaining, attitudinal restructuring and intra-

organizational bargaining. Distributive bargaining: It

involves haggling over the distribution of surplus. Under

it, the economic issues like wages, salaries and bonus

are discussed. In distributive bargaining, one partys

gain is another partys loss. This is most commonly

explained in terms of a pie. Disputants can work

together to make the pie bigger, so there is enough for

both of them to have as much as they want, or they can

focus on cutting the pie up, trying to get as much as

they can for themselves. In general, distributivebargaining tends to be more competitive. This type of

bargaining is also

known as conjunctive bargaining.

Integrative bargaining:

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

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

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

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

of bargaining is also known as cooperative bargaining.

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

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

attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It

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

Intra-organizational bargaining:

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

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

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

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

unions maneuver to achieve consensus among the conflicting groups.

Introduction To Industrial Relations

Industrial Relations Home Introduction to Industrial Relations

Industrial relations has become one of the most delicate


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and complex problems of modern industrial society.Industrial progress is impossible without cooperation of

labors and harmonious relationships. Therefore, it is inthe interest of all to create and maintain good relationsbetween employees (labor) and employers(management).

Concept of Industrial Relations:The term Industrial Relations comprises of two terms: Industry and Relations. Industry refers to anyproductive activity in which an individual (or a group ofindividuals) is (are) engaged. By relations we mean

the relationships that exist within the industry betweenthe employer and his workmen.

The term industrial relations explains the relationship between employees and management whichstem directly or indirectly from union-employer relationship.

Industrial relations are the relationships between employees and employers within the organizationalsettings. The field of industrial relations looks at the relationship between management and workers,particularly groups of workers represented by a union. Industrial relations are basically theinteractions between employers, employees and the government, and the institutions and

associations through which such interactions are mediated.

The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relationswas broadly defined to include the relationships and interactions between employers and employees.From this perspective, industrial relations covers all aspects of the employment relationship, including

human resource management, employee relations, and union-management (or labor) relations. Nowits meaning has become more specific and restricted. Accordingly, industrial relations pertains to thestudy and practice of collective bargaining, trade unionism, and labor-management relations, whilehuman resource management is a separate, largely distinct field that deals with nonunionemployment relationships and the personnel practices and policies of employers.

The relationships which arise at and out of the workplace generally include the relationships betweenindividual workers, the relationships between workers and their employer, the relationships between

employers, the relationships employers and workers have with the organizations formed to promotetheir respective interests, and the relations between those organizations, at all levels. industrial

relations also includes the processes through which these relationships are expressed (such as,collective bargaining, workers participation in decision-making, and grievance and disputesettlement), and the management of conflict between employers, workers and trade unions, when itarises.

Glossary Of Industrial Relations

Industrial Relations Home Related Terms

For better understanding of industrial relations, variousterms need to be defined here:

Industry:Industrial Disputes Act 1947 defines an industry as anysystematic activity carried on by co-operation betweenan employer and his workmen for the production,supply or distribution of goods or services with a view tosatisfy human wants or wishes whether or not anycapital has been invested for the purpose of carrying onsuch activity; or such activity is carried on with a motiveto make any gain or profit. Thus, an industry is a wholegamut of activities that are carried on by an employerwith the help of his employees and labors for production


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and distribution ofgoods to earn profits.

Employer:

An employer can be defined from different perspectives as:-

y a person or business that pays a wage or fixed payment to other person(s) in exchange forthe services of such persons.

y a person who directly engages a worker/employee in employment.y any person who employs, whether directly or through another person or agency, one or more

employees in any scheduled employment in respect of which minimum rates of wages havebeen fixed.

As per Industrial Disputes Act 1947 an employer means:-

y in relation to an industry carried on by or under the authority of any department of [theCentral Government or a State Government], the authority prescribed in this behalf, orwhere no authority is prescribed, the head of the department;

y in relation to an industry carried on by or on behalf of a local authority, the chief executiveofficer of that authority;

Employee: -

y Employee is a person who is hired by another person or business for a wage or fixedpayment in exchange for personal services and who does not provide the services as part ofan independent business.

y An employee is any individual employed by an employer.y A person who works for a public or private employer and receives remuneration in wages or

salary by his employer while working on a commission basis, piece-rates or time rate.

y Employee, as per Employee State Insurance Act 1948, is any person employed for wages inor in connection with work of a factory or establishment to which the act applies.

In order to qualify to be an employee, under ESI Act, a person should belong to any of thecategories:

o those who are directly employed for wages by the principal employer within the premises oroutside in connection with work of the factory or establishment.

o those employed for wages by or through an immediate employer in the premises of thefactory or establishment in connection with the work thereof

o those employed for wages by or through an immediate employer in connection with thefactory or establishment outside the premises of such factory or establishment under thesupervision and control of the principal employer or his agent.

o employees whose services are temporarily lent or let on hire to the principal employer by animmediate employer under a contract of service (employees of security contractors, laborcontractors, house keeping contractors etc. come under this category).

Employment: The state of being employed or having a job.

Labor market:

The market in which workers compete for jobs and employers compete for workers. It acts as theexternal source from which organizations attract employees. These markets occur because differentconditions characterize different geographical areas, industries, occupations, and professions at any


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given time.

Importance of Industrial Relations:

Industrial Relations Home Importance Of Industrial Relations

The healthy industrial relations are key to the progressand success. Their significance may be discussed asunder

y Uninterrupted production The most important

benefit of industrial relations is that this ensurescontinuity of production. This means, continuous

employment for all from manager to workers. Theresources are fully utilized, resulting in the maximumpossible production. There is uninterrupted flow ofincome for all. Smooth running of an industry is of vitalimportance for several other industries; to otherindustries if the products are intermediaries or inputs;

to exporters if these are export goods; to consumers

and workers, if these are goods of mass consumption.

y Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes. Disputes

are reflections of the failure of basic human urges or motivations to secure adequate satisfaction orexpression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics,gherao and grievances are some of the reflections of industrial unrest which do not spring up in anatmosphere of industrial peace. It helps promoting co-operation and increasing production.

y High morale Good industrial relations improve the morale of the employees. Employees work

with great zeal with the feeling in mind that the interest of employer and employees is one and thesame, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry.The employer in his turn must realize that the gains of industry are not for him along but they shouldbe shared equally and generously with his workers. In other words, complete unity of thought andaction is the main achievement of industrial peace. It increases the place of workers in the society

and their ego is satisfied. It naturally affects production because mighty co-operative efforts alonecan produce great results.

y Mental Revolution The main object of industrial relation is a complete mental revolution of

workers and employees. The industrial peace lies ultimately in a transformed outlook on the part ofboth. It is the business of leadership in the ranks of workers, employees and Government to work outa new relationship in consonance with a spirit of true democracy. Both should think themselves aspartners of the industry and the role of workers in such a partnership should be recognized. On theother hand, workers must recognize employers authority. It will naturally have impact on productionbecause they recognize the interest of each other.

y Reduced Wastage Good industrial relations are maintained on the basis of cooperation and

recognition of each other. It will help increase production. Wastages of man, material and machinesare reduced to the minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production with minimum costand higher profits. It also results in increased efficiency of workers. New and new projects may beintroduced for the welfare of the workers and to promote the morale of the people at work. Aneconomy organized for planned production and distribution, aiming at the realization of social justice

and welfare of the massage can function effectively only in an atmosphere of industrial peace. If thetwin objectives of rapid national development and increased social justice are to be achieved, theremust be harmonious relationship between management and labor.


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Objectives of Industrial Relations:

Industrial Relations Home Objectives of industrial relations

The main objectives of industrial relationssystem are:-

y To safeguard the interest of labor and management

by securing the highest level of mutual understandingand good-will among all those sections in the industrywhich participate in the process of production.y To avoid industrial conflict or strife and develop

harmonious relations, which are an essential factor inthe productivity of workers and the industrial progressof a country.y To raise productivity to a higher level in an era of full

employment by lessening the tendency to high turnoverand frequency absenteeism.

y To establish and promote the growth of an industrial democracy based on labor partnershipin the sharing of profits and of managerial decisions, so that ban individuals personality maygrow its full stature for the benefit of the industry and of the country as well.

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

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

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

Dunlop's Contribution To Industrial Relations

Industrial Relations Home Dunlop's Model

One of the significant theories of industrial laborrelations was put forth by John Dunlop in the 1950s.According to Dunlop industrial relations system consistsof three agents management organizations, workersand formal/informal ways they are organized andgovernment agencies. These actors and theirorganizations are located within an environment defined in terms of technology, labor and productmarkets, and the distribution of power in wider society

as it impacts upon individuals and workplace. Withinthis environment, actors interact with each other,negotiate and use economic/political power in process ofdetermining rules that constitute the output of theindustrial relations system. He proposed that three

partiesemployers, labor unions, and government-- arethe

key actors in a modern industrial relations system. He also argued that none of these institutions

could act in an autonomous or independent fashion. Instead they were shaped, at least to someextent, by their market, technological and political contexts.

Thus it can be said that industrial relations is a social sub system subject to three environmentalconstraints- the markets, distribution of power in society and technology.

Dunlop's model identifies three key factors to be considered in conducting an analysis of themanagement-labor relationship:


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1. Environmental or external economic, technological, political, legal and social forces thatimpact employment relationships.

2. Characteristics and interaction of the key actors in the employment relationship: labor,management, and government.

3. Rules that are derived from these interactions that govern the employment relationship.Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrialrelations may be regarded as a system in the sense that each of them more or less intimately affectseach of the others so that they constitute a group of arrangements for dealing with certain mattersand are collectively responsible for certain results.

In effect - Industrial relations is the system which produces the rules of the workplace. Such rules arethe product of interaction between three key actors workers/unions, employers and associatedorganizations and government

The Dunlops model gives great significance to external or environmental forces. In other words,management, labor, and the government possess a shared ideology that defines their roles within therelationship and provides stability to the systemUnitary Perspective

Industrial Relations Home Unitary Perspective

In unitarism, the organization is perceived as anintegrated and harmonious system, viewed as onehappy family. A core assumption of unitary approach isthat management and staff, and all members of theorganization share the same objectives, interests andpurposes; thus working together, hand-in-hand,towards the shared mutual goals. Furthermore,unitarism has a paternalistic approach where itdemands loyalty of all employees. Trade unions aredeemed as unnecessary and conflict is perceived as

disruptive.

From employee point of view, unitary approach means that:

y Working practices should be flexible. Individuals should be business process improvementoriented, multi-skilled and ready to tackle with efficiency whatever tasks are required.

y If a union is recognized, its role is that of a further means of communication between groupsof staff and the company.

y The emphasis is on good relationships and sound terms and conditions of employment.

y Employee participation in workplace decisions is enabled. This helps in empoweringindividuals in their roles and emphasizes team work, innovation, creativity, discretion in

problem-solving, quality and improvement groups etc.

y Employees should feel that the skills and expertise of managers supports their endeavors.From employer point of view, unitary approach means that:

y Staffing policies should try to unify effort, inspire and motivate employees.y The organization's wider objectives should be properly communicated and discussed with


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staff.

y Reward systems should be so designed as to foster to secure loyalty and commitment.y Line managers should take ownership of their team/staffing responsibilities.y Staff-management conflicts - from the perspective of the unitary framework - are seen as

arising from lack of information, inadequate presentation of management's policies.

y The personal objectives of every individual employed in the business should be discussedwith them and integrated with the organizations needs.

Pluralistic-Perspective

Industrial Relations Home Pluralistic-Perspective

In pluralism the organization is perceived as being madeup of powerful and divergent sub-groups - management

and trade unions. This approach sees conflicts ofinterest and disagreements between managers andworkers over the distribution of profits as normal andinescapable. Consequently, the role of managementwould lean less towards enforcing and controlling andmore toward persuasion and co-ordination. Trade

unions are deemed as legitimate representatives ofemployees. Conflict is dealt by collective bargaining andis viewed not necessarily as a bad thing and if managedcould in fact be channeled towards evolution andpositive change.Realistic managers should acceptconflict to occur. There is a greater propensity forconflict rather than harmony.

They should anticipate and resolve this by securing agreed procedures for settling disputes.

The implications of this approach include:

y The firm should have industrial relations and personnel specialists who advise managers andprovide specialist services in respect of staffing and matters relating to union consultation

and negotiation.

y Independent external arbitrators should be used to assist in the resolution of disputes.

y Union recognition should be encouraged and union representatives given scope to carry outtheir representative duties

y Comprehensive collective agreements should be negotiated with unionsMarxist Perspective

Industrial Relations Home Marxist Perspective

This view of industrial relations is a by product of atheory of capitalist society and social change. Marx


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argued that:

y Weakness and contradiction inherent in the capitalist

system would result in revolution and the ascendancy ofsocialism over capitalism.

y Capitalism would foster monopolies.

y Wages (costs to the capitalist) would be minimized to

a subsistence level.

y Capitalists and workers would compete/be in

contention to win ground and establish their constantwin-lose struggles would be evident.

This perspective focuses on the fundamental division of interest between capital and labor, and seesworkplace relations against this background. It is concerned with the structure and nature of societyand assumes that the conflict in employment relationship is reflective of the structure of the society.Conflict is therefore seen as inevitable and trade unions are a natural response of workers to theirexploitation by capital.Objectives Of Trade Unions

Industrial Relations Home Objectives Of Trade Unions

Trade unions are formed to protect and promote theinterests of their members. Their primary function is toprotect the interests of workers against discriminationand unfair labor practices. Trade unions are formed toachieve the following objectives:

y Representation

Trade unions represent individual workers when theyhave a problem at work. If an employee feels he isbeing unfairly treated, he can ask the unionrepresentative to help sort out the difficulty with the

manager or employer. Unions also offer their memberslegal representation. Normally this is to help people getfinancial compensation for work-related injuries or toassist people who have to take their employer to court.

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

affect people working in an organization. There may be a difference of opinion betweenmanagement and union members. Trade unions negotiate with the employers to find out a

solution to these differences. Pay, working hours, holidays and changes to working practicesare the sorts of issues that are negotiated. In many workplaces there is a formal agreement

between the union and the company which states that the union has the right to negotiatewith the employer. In these organizations, unions are said to be recognized for collective

bargaining purposes.

y Voice in decisions affecting workersThe economic security of employees is determined not only by the level of wages andduration of their employment, but also by the managements personal policies which includeselection of employees for lay offs, retrenchment, promotion and transfer. These policiesdirectly affect workers. The evaluation criteria for such decisions may not be fair. So, the

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


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say in the decision making to safeguard their interests.

y Member servicesDuring the last few years, trade unions have increased the range of services they offer theirmembers. These include:

o Education and training - Most unions run training courses for their members onemployment rights, health and safety and other issues. Some unions also helpmembers who have left school with little education by offering courses on basic skillsand courses leading to professional qualifications.

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

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

o Welfare benefits - One of the earliest functions of trade unions was to look aftermembers who hit hard times. Some of the older unions offer financial help to theirmembers when they are sick or unemployed.

Functions Of Trade Unions

Industrial Relations Home Functions of Trade unions

Trade unions perform a number of functions in order toachieve the objectives. These functions can be broadlyclassified into three categories:

(i) Militant functions,(ii) Fraternal functions

Militant Functions

One set of activities performed by trade unions leads tothe betterment of the position of their members inrelation to their employment. The aim of such activitiesis to ensure adequate wages, secure better conditions of

work and employment, get better treatment fromemployers, etc. When the unions fail to accomplishthese aims by the method of

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

management in the form of go-slow tactics, strike, boycott, gherao, etc. Hence, these functions ofthe trade unions are known as militant or fighting functions. Thus, the militant functions of tradeunions can be summed up as:

y To achieve higher wages and better working conditions


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y To raise the status of workers as a part of industry

y To protect labors against victimization and injusticeFraternal Functions

Another set of activities performed by trade unions aims at rendering help to its members in times ofneed, and improving their efficiency. Trade unions try to foster a spirit of cooperation and promotefriendly industrial relations and diffuse education and culture among their members. They take upwelfare measures for improving the morale of workers and generate self confidence among them.They also arrange for legal assistance to its members, if necessary. Besides, these, they undertakemany welfare measures for their members, e.g., school for the education of children, library, reading-rooms, in-door and out-door games, and other recreational facilities. Some trade unions evenundertake publication of some magazine or journal. These activities, which may be called fraternal

functions, depend on the availability of funds, which the unions raise by subscription from membersand donations from outsiders, and also on their competent and enlightened leadership. Thus, the

fraternal functions of trade unions can be summed up as:

y To take up welfare measures for improving the morale of workers

y To generate self confidence among workers

y To encourage sincerity and discipline among workers

y To provide opportunities for promotion and growth

y To protect women workers against discriminationImportance Of Trade Unions

Industrial Relations Home Importance Of Trade Unions

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

through the process of collective bargaining andnegotiations between employer and unions are moreinfluential. Trade unions play an important role and arehelpful in effective communication between the workersand the management. They provide the advice andsupport to ensure that the differences of opinion do notturn into major conflicts. The central function of a trade

union is to represent people at work. But they also havea wider role in protecting their interests. They also play


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an important educational role, organizing courses fortheir members on a wide range of matters. Seeking a

healthy and safe working environment is also prominentfeature of

union activity.

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

y by helping in the recruitment and selection of workers.

y by inculcating discipline among the workforce

y by enabling settlement of industrial disputes in a rational manner

y by helping social adjustments. Workers have to adjust themselves to the new workingconditions, the new rules and policies. Workers coming from different backgrounds maybecome disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

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

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

y promoting and maintaining national integration by reducing the number of industrial disputes

y incorporating a sense of corporate social responsibility in workers

y achieving industrial peaceReasons For Joining Trade Unions

Industrial Relations Home Reasons For Joining Trade Unions

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

1.

Greater

Bargaining PowerThe individual employee possesses very little bargaining

power as compared to that of his employer. If he is notsatisfied with the wage and other conditions ofemployment, he can leave the job. It is not practicableto continually resign from one job after another whenhe is dissatisfied. This imposes a great financial andemotional burden upon the worker. The better coursefor him is to join a union that can take concerted action

against the employer. The threat or actuality of a strikeby a union is a powerful tool that often causes the


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employer to accept the demands of the workers forbetter conditions of employment.

2. Minimize DiscriminationThe decisions regarding pay, work, transfer, promotion, etc. are highly subjective in nature. Thepersonal relationships existing between the supervisor and each of his subordinates may influencethe management. Thus, there are chances of favoritisms and discriminations. A trade union can

compel the management to formulate personnel policies that press for equality of treatment to theworkers. All the labor decisions of the management are under close scrutiny of the labor union. Thishas the effect of minimizing favoritism and discrimination.

3. Sense of Security

The employees may join the unions because of their belief that it is an effective way to secureadequate protection from various types of hazards and income insecurity such as accident, injury,illness, unemployment, etc. The trade union secure retirement benefits of the workers and compelthe management to invest in welfare services for the benefit of the workers.

4. Sense of ParticipationThe employees can participate in management of matters affecting their interests only if they jointrade unions. They can influence the decisions that are taken as a result of collective bargainingbetween the union and the management.

5. Sense of BelongingnessMany employees join a union because their co-workers are the members of the union. At times, anemployee joins a union under group pressure; if he does not, he often has a very difficult time atwork. On the other hand, those who are members of a union feel that they gain respect in the eyes oftheir fellow workers. They can also discuss their problem with the trade union leaders.

6. Platform for self expressionThe desire for self-expression is a fundamental human drive for most people. All of us wish to shareour feelings, ideas and opinions with others. Similarly the workers also want the management tolisten to them. A trade union provides such a forum where the feelings, ideas and opinions of theworkers could be discussed. It can also transmit the feelings, ideas, opinions and complaints of theworkers to the management. The collective voice of the workers is heard by the management andgive due consideration while taking policy decisions by the management.

7. Betterment of relationships

Another reason for employees joining unions is that employees feel that unions can fulfill theimportant need for adequate machinery for proper maintenance of employer-employee relations.Unions help in betterment ofindustrial relations among management and workers by solving theproblems peacefully.Trade Unionism In India

Industrial Relations Home Trade Unionism In India

The trade unionism in India developed quite slowly ascompared to the western nations. Indian trade union

movement can be divided into three phases.

The first phase (1850 to1900)

During this phase the inception of trade unions tookplace. During this period, the working and livingconditions of the labor were poor and their workinghours were long. Capitalists were only interested in theirproductivity and profitability. In addition, the wageswere also low and general economic conditions werepoor in industries. In order to regulate the workinghours and other service conditions of the Indian textilelaborers, the Indian Factories Act was enacted in 1881.

As a result, employment of child labor was prohibited.


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The growth of trade union movement was slow in this phase and later on the Indian Factory Act of1881 was amended in 1891. Many strikes took place in the two decades following 1880 in all

industrial cities. These strikes taught workers to understand the power of united action even thoughthere was no union in real terms. Small associations like Bombay Mill-Hands Association came up bythis time.

The second phase (1900 to 1946)

This phase was characterized by the development of organized trade unions and political movementsof the working class. Between 1918 and 1923, many unions came into existence in the country. AtAhmedabad, under the guidance of Mahatma Gandhi, occupational unions like spinners unions andweavers unions were formed. A strike was launched by these unions under the leadership ofMahatma Gandhi who turned it into a satyagrah. These unions federated into industrial union known

as Textile Labor Association in 1920.In 1920, the First National Trade union organization (The AllIndia Trade Union Congress (AITUC)) was established. Many of the leaders of this organization wereleaders of the national Movement. In 1926, Trade union law came up with the efforts of Mr. N N Joshithat became operative from 1927. During 1928, All India Trade Union Federation (AITUF) wasformed.

The third phase began with the emergence of independent India (in 1947). The partition of countryaffected the trade union movement particularly Bengal and Punjab. By 1949, four central trade unionorganizations were functioning in the country:

1. The All India Trade Union Congress,

2. The Indian National Trade Union Congress,

3. The Hindu Mazdoor Sangh, and

4.

The United Trade Union Congress

The working class movement was also politicized along the lines of political parties. For instanceIndian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. TheAITUC is the trade union arm of the Communist Party of India. Besides workers, white-collaremployees, supervisors and managers are also organized by the trade unions, as for example in theBanking, Insurance and Petroleum industries.

Trade unions in IndiaThe Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor marketsconsist of three sectors:

1. The rural workers, who constitute about 60 per cent of the workforce.

2. Organized sector, which employs 8 per cent of workforce, and

3. The urban informal sector (which includes the growing software industry and other services,not included in the formal sector) which constitutes the rest 32 per cent of the workforce.


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At present there are twelve Central Trade Union Organizations in India:

1. All India Trade Union Congress (AITUC)

2. Bharatiya Mazdoor Sangh (BMS)

3. Centre of Indian Trade Unions (CITU)

4. Hind Mazdoor Kisan Panchayat (HMKP)

5. Hind Mazdoor Sabha (HMS)

6. Indian Federation of Free Trade Unions (IFFTU)

7. Indian National Trade Union Congress (INTUC)

8. National Front of Indian Trade Unions (NFITU)

9. National Labor Organization (NLO)

10. Trade Unions Co-ordination Centre (TUCC)

11. United Trade Union Congress (UTUC) and

12. United Trade Union Congress - Lenin Sarani (UTUC - LS)Industrial Relation Policy

Industrial Relations Home Industrial Relation Policy


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Prior to 1991, the industrial relations system in India

sought to control conflicts and disputes throughexcessive labor legislations. These labor laws wereprotective in nature and covered a wide range ofaspects of workplace industrial relations like laws onhealth and safety of labors, layoffs and retrenchment

policies, industrial disputes and the like. The basicpurpose of these laws was to protect labors. However,these protectionist policies created an atmosphere thatled to increased inefficiency in firms, over employment

and inability to introduce efficacy. With the coming ofglobalization, the 40 year old policy of protectionismproved inadequate for Indian industry to remaincompetitive as the lack of flexibility posed a seriousthreat to manufacturers

because they had to compete in the international market.

With the advent of liberalization in1992, the industrial relations policy began to change. Now, thepolicy was tilted towards employers. Employers opted for workforce reduction, introduced policies ofvoluntary retirement schemes and flexibility in workplace also increased. Thus, globalization broughtmajor changes in industrial relations policy in India. The changes can be summarized as follows:

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

y Some industries are cutting employment to a significant extent to cope with the domesticand foreign competition e.g. pharmaceuticals. On the other hand, in other industries wherethe demand for employment is increasing are experiencing employment growths.

yIn the expansionary economy there is a clear shortage of managers and skilled labor.

y The number of local and enterprise level unions has increased and there is a significantreduction in the influence of the unions.

y Under pressure some unions and federations are putting up a united front e.g. banking.

y Another trend is that the employers have started to push for internal unions i.e. no outsideaffiliation.

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

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


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changed.

y HRM is seen as a key component of business strategy.

y Training and skill development is also receiving attention in a number of industries, especiallybanking and information technology

Grievance Procedure

Industrial Relations Home Grievance Procedure

Grievance procedure is a formal communicationbetween an employee and the management designedfor the settlement of a grievance. The grievance

procedures differ from organization to organization.

1. Open door policy

2. Step-ladder policy

Open door policy: Under this policy, the aggrievedemployee is free to meet the top executives of theorganization and get his grievances redressed. Such a

policy works well only in small organizations. However,in bigger organizations, top management executives areusually busy with other concerned matters of thecompany. Moreover, it is believed that open door

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

Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step procedurefor getting his grievance redressed. In this procedure, whenever an employee is confronted with agrievance, he presents his problem to his immediate supervisor. If the employee is not satisfied withsuperiors decision, then he discusses his grievance with the departmental head. The departmentalhead discusses the problem with joint grievance committees to find a solution. However, if thecommittee also fails to redress the grievance, then it may be referred to chief executive. If the chiefexecutive also fails to redress the grievance, then such a grievance is referred to voluntary arbitrationwhere the award of arbitrator is binding on both the parties.

GRIEVANCE PROCEDURE IN INDIAN INDUSTRY

The 15th session of Indian Labor Conference held in 1957 emphasized the need of an establishedgrievance procedure for the country which would be acceptable to unions as well as to management.

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

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

elected for a department or their union is to nominate them. Management has to specify the personsin each department who are to be approached first and the departmental heads who are supposed tobe approached in the second step. The Model Grievance Procedure specifies the details of all the

steps that are to be followed while redressing grievances. These steps are:

STEP 1: In the first step the grievance is to be submitted to departmental representative, who is arepresentative of management. He has to give his answer within 48 hours.

STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee cantake his grievance to head of the department, who has to give his decision within 3 days.


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STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he cantake the grievance to Grievance Committee. The Grievance Committee makes its recommendations

to the manager within 7 days in the form of a report. The final decision of the management on thereport of Grievance Committee must be communicated to the aggrieved employee within three daysof the receipt of report. An appeal for revision of final decision can be made by the worker if he is notsatisfied with it. The management must communicate its decision to the worker within 7 days.

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

Causes Of Industrial Disputes

Industrial Relations Home Causes Of Industrial Disputes

The causes of industrial disputes can be broadly

classified into two categories: economic and non-economic causes. The economic causes will includeissues relating to compensation like wages, bonus,allowances, and conditions for work, working hours,leave and holidays without pay, unjust layoffs andretrenchments. The non economic factors will includevictimization of workers, ill treatment by staff members,sympathetic strikes, political factors, indiscipline etc.

y Wages and allowances: Since the cost of living


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index is increasing, workers generally bargain for higherwages to meet the rising cost of living index and to

increase their standards of living. In 2002, 21.4% ofdisputes were caused by demand

of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increasedup to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes. Personnel and retrenchment: The personnel and retrenchment have also been an important factor

which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% whilethose caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trendcould be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% ofdisputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes werecaused by personnel, and only 0.4% were caused by retrenchment.

Indiscipline and violence: From the given table, it is evident that the number of disputes causedby indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because ofindiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% ofdisputes were caused due to indiscipline respectively. During the year 2003, indiscipline accountedfor the highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groupswage and allowance and personnel with 20.4% and11.2% respectively. A similar trend was observedin 2004 where indiscipline accounted for 40.4% of disputes. Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputeswere because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005respectively.

Leave and working hours: Leaves and working hours have not been so important causes ofindustrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work whilethis percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because ofleaves 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 etc.

Causes Of Industrial Disputes

Industrial Relations Home Causes Of Industrial Disputes

The causes of industrial disputes can be broadlyclassified into two categories: economic and non-economic causes. The economic causes will includeissues relating to compensation like wages, bonus,allowances, and conditions for work, working hours,leave and holidays without pay, unjust layoffs andretrenchments. The non economic factors will includevictimization of workers, ill treatment by staff members,sympathetic strikes, political factors, indiscipline etc.

y Wages and allowances: Since the cost of living

index is increasing, workers generally bargain for higherwages to meet the rising cost of living index and to

increase their standards of living. In 2002, 21.4% ofdisputes were caused by demand

of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increasedup to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes. Personnel and retrenchment: The personnel and retrenchment have also been an important factorwhich accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% whilethose caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trendcould be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% ofdisputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes werecaused by personnel, and only 0.4% were caused by retrenchment. Indiscipline and violence: From the given table, it is evident that the number of disputes caused


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by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because ofindiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of

disputes were caused due to indiscipline respectively. During the year 2003, indiscipline accountedfor the highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groupswage and allowance and personnel with 20.4% and11.2% respectively. A similar trend was observedin 2004 where indiscipline accounted for 40.4% of disputes. Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes

were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005respectively. Leave and working hours: Leaves and working hours have not been so important causes ofindustrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work whilethis percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of

leaves and working hours.

Miscellaneous: The miscellaneous factors include

- Inter/Intra Union Rivalry

- Charter of Demands

- Work Load

- Standing orders/rules/service conditions/safety measures

- Non-implementation of agreements and awards etc.

Strikes

Industrial Relations Home Strikes

A strike is a very powerful weapon used by tradeunions and other labor associations to get theirdemands accepted. It generally involves quitting ofwork by a group of workers for the purpose of bringingthe pressure on their employer so that their demands

get accepted. When workers collectively cease to workin a particular industry, they are said to be on strike.

According to Industrial Disputes Act 1947, a strike is acessation of work by a body of persons employed in anindustry acting in combination; or a concerted refusalof any number of persons who are or have been so

employed to continue to work or to acceptemployment; or a refusal under a commonunderstanding of any number of such persons tocontinue to work or to

accept employment. This definition throws light on a few aspects of a strike. Firstly, a strike is areferred to as stoppage of work by a group of workers employed in a particular industry. Secondly, italso includes the refusal of a number of employees to continue work under their employer.

In a strike, a group of workers agree to stop working to protest against something they think isunfair where they work. Labors withhold their services in order to pressurize their employment orgovernment to meet their demands. Demands made by strikers can range from asking for higher

wages or better benefits to seeking changes in the workplace environment. Strikes sometimes occurso that employers listen more carefully to the workers and address their problems.

Causes of strikes:

Strikes can occur because of the following reasons:


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y Dissatisfaction with company policy

y Salary and incentive problems

y Increment not up to the mark

y Wrongful discharge or dismissal of workmen

y Withdrawal of any concession or privilege

y Hours of work and rest intervals

y Leaves with wages and holidays

y Bonus, profit sharing, Provident fund and gratuity

y Retrenchment of workmen and closure of establishment

y Dispute connected with minimum wages

TYPES OF STRIKE

1. Economic Strike: Under this type of strike, labors stop their work to enforce theireconomic demands such as wages and bonus. In these kinds of strikes, workers ask forincrease in wages, allowances like traveling allowance, house rent allowance, dearnessallowance, bonus and other facilities such as increase in privilege leave and casual leave.

2. Sympathetic Strike: When workers of one unit or industry go on strike in sympathy withworkers of another unit or industry who are already on strike, it is called a sympatheticstrike. The members of other unions involve themselves in a strike to support or expresstheir sympathy with the members of unions who are on strike in other undertakings. The


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workers of sugar industry may go on strike in sympathy with their fellow workers of thetextile industry who may already be on strike.

3. General Strike: It means a strike by members of all or most of the unions in a region or anindustry. It may be a strike of all the workers in a particular region of industry to forcedemands common to all the workers. These strikes are usually intended to create politicalpressure on the ruling government, rather than on any one employer. It may also be anextension of the sympathetic strike to express generalized protest by the workers.

4. Sit down Strike: In this case, workers do not absent themselves from their place of workwhen they are on strike. They keep control over production facilities. But do not work. Sucha strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place ofemployment, but they refuse to work. They also refuse to leave, which makes it verydifficult for employer to defy the union and take the workers' places. In June 1998, all theMunicipal Corporation employees in Punjab observed a pen down strike to protest againstthe non-acceptance of their demands by the state government.

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

6. Sick-out (or sick-in): In this strike, all or a significant number of union members call insick on the same day. They dont break any rules, because they just use their sick leavethat was allotted to them on the same day. However, the sudden loss of so manyemployees all on one day can show the employer just what it would be like if they reallywent on strike.

7. Wild cat strikes: These strikes are conducted by workers or employees without theauthority 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 someremarks allegedly made against them by an Assistant Commissioner

Lockouts

Industrial Relations Home Lockouts

A lockout is a work stoppage in which an employerprevents employees from working. It is declared byemployers to put pressure on their workers. This isdifferent from a strike, in which employees refuse towork. Thus, a lockout is employers weapon while astrike is raised on part of employees. Acc to Industrial


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Disputes Act 1947, lock-out means the temporaryclosing of a place of employment or the suspension of

work or the refusal by an employer to continue toemploy any number of persons employed by him.

A lockout may happen for several reasons. When onlypart of a trade union votes to strike, the purpose of a

lockout is to put pressure on a union by reducing thenumber of members who are able to work.

For example, if a group of the workers strike so that the work of the rest of the workersbecomes impossible or less productive, the employer may declare a lockout until the

workers end the strike. Another case in which an employer may impose a lockout is toavoid slowdowns or intermittent work-stoppages. Occupation of factories has been the

traditional method of response to lock-outs by the workers' movement.

PICKETINGWhen 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 theirworkplace. It is basically a method of drawing public attention towards the fact that thereis a dispute between the management and employees.

The purpose of picketing is:

y to stop or persuade workers not to go to work

y to tell the public about the strike

y to persuade workers to take their union's sideGHERAO

Gherao in Hindi means to surround. It denotes a collective action initiated by a group ofworkers under which members of the management are prohibited from leaving the

industrial establishment premises by workers who block the exit gates by forming humanbarricades. The workers may gherao the members of the management by blocking their

exits and forcing them to stay inside their cabins. The main object of gherao is to inflict

physical and mental torture to the person being gheraoed and hence this weapon disturbsthe industrial peace to a great extent.

Prohibition of Strikes and Lock-Outs

Industrial Relations Home Prohibition of Strikes and Lock-Outs


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Employees are prohibited from striking according to thesection 22 of Industrial Disputes Act 1947. Employees,

who are working in a public utility service, cannot goon a strike without giving a notice of strike within thesix weeks before striking. They can not go on strikeeither within fourteen days of providing the strikenotice or before the expiry of the date of strike

specified in any such notice. The same rule applies tothe employers. Employers who are carrying on a publicutility service can not lockout any of their employeeswithout giving them a prior notice within six weeksbefore the lock out or within the fourteen days of

giving such a notice. Moreover, the notice of strike orlockout is to be given in a prescribed manner showingthe number of persons involved in the strike/lockout.

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

going on in the company. However, a notice should be issued on the day on which thelockout is declared just to intimate the appropriate authorities about the lockout. The

employer is supposed to report the number of notices of strikes received by him to the

appropriate Government or the authority prescribed by the government within the fivedays of receiving such notices.

Illegal Strikes and Lock-OutsA strike or a lock-out is illegal if it is declared in noncompliance with the section 22 (as

defined above) of Industrial Disputes Act 1947, that is, if the notice period is not servedor if the strike is held within the fourteen days of issuing the notice of strike. If a strike or

lockout has already taken place and is being referred to a Board, the continuance of such astrike or lock out is not illegal provided it is in compliance with the provisions of act.

Moreover, a lockout declared in consequence of an illegal strike or a strike declared inconsequence of an illegal lock-out shall not be deemed to be illegal.

Penalty for Illegal Strikes and Lock-outs

A workman who is involved in an illegal strike can be penalized with imprisonment for aterm extendable to a month or with a fine or fifty rupees or both. In similar way, an

employer who initiates and continues a lockout is punishable with imprisonmentextendable to a month or with a fine of one thousand rupees or both. According to Section

25 of Industrial Disputes Act 1947, no person should provide any sort of financial aid toany illegal strike or lock-out. Any person who knowingly provides such a help in support

of any illegal strike or lock-out is punishable with imprisonment for a term which mayextend to six months, or with fine which may extend to one thousand rupees, or with both.

Measures For Improving Industrial Relations

Industrial Relations Home Measures For Improving Industrial Relations

The following measures should be taken to achievegood industrial relations:

y Strong and Stable Union: A strong and stable

union in each industrial enterprise is essential for

good industrial relations. The employers can easily


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ignore a weak union on the plea that it hardlyrepresents the workers. The agreement with such a

union will hardly be honored by a large section ofworkforce. Therefore, there must be strong and stableunions in every enterprise to represent the majority ofworkers and negotiate with the management about theterms and conditions of service.y

M

utual Trust: Both management and labor shouldhelp in the development of an atmosphere of mutualcooperation,

confidence and respect. Management should adopt a progressive outlook and shouldrecognize the rights of workers. Similarly, labor unions should persuade their members to

work for the common objectives of the organization. Both the management and the unionsshould have faith in collective bargaining and other peaceful methods of settling disputes.

y Workers Participation in Management: The participation of workers in themanagement of the industrial unit should be encouraged by making effective useof works committees, joint consultation and other methods. This will improve

communication between managers and workers, increase productivity and lead to

greater effectiveness.

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

on mutual accommodation rather than conflict or uncompromising attitude. Onemust clearly understand that conflicting attitude does not lead to amicable labor

relations; it may foster union militancy as the union reacts by engaging in pressuretactics. The approach must be of mutual give and take rather than take or leave.

The management should be willing to co-operate rather than blackmail the

workers.

y Sincere Implementation of Agreements. The management should sincerelyimplement the settlements reached with the trade unions. The agreements between

the management and the unions should be enforced both in letter and spirit. If theagreements are not implemented then both the union and management stop

trusting each other. An environment of uncertainty is created. To avoid this,efforts should be made at both ends to ensure the follow up of the agreements.

y Sound Personnel Policies: The following points should be noted regarding thepersonnel policies. The policies should be:

o Formulated in consultation with the workers and their representatives ifthey are to be implemented effectively.


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o Clearly stated so that there is no confusion in the mind of anybody.

o Implementation of the policies should be uniform throughout theorganization to ensure fair treatment to each worker.

y Governments Role: The Government should play an active role for promotingindustrial peace. It should make law for the compulsory recognition of a

representative union in each industrial unit. It should intervene to settle disputes ifthe management and the workers are unable to settle their disputes. This will

restore industrial harmony.

y Progressive Outlook: There should be progressive outlook of the management ofeach industrial enterprise. It should be conscious of its obligations andresponsibilities to the owners of the business, the employees, the consumers and

the nation. The management must recognize the rights of workers to organizeunions to protect their economic and social interests.

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