IR Question Bank

Module 1: Nature of IR

1. Define IR

The field of industrial relations (also called labour relations) looks at the relationship between management and workers, particularly groups of workers represented by a union.

Labour relations is an important factor in analyzing "varieties of capitalism", such as neocorporatism (or corporatism), social democracy, and neoliberalism (or liberalism).

Labour relations can take place on many levels, such as the "shop-floor", the regional level, and the national level. The distribution of power amongst these levels can greatly shape the way an economy functions.

Another key question when considering systems of labour relations is their ability to adapt to change. This change can be technological (e.g., "What do we do when an industry employing half the population becomes obsolete?"), economic (e.g., "How do we respond to globalization?"), or political (e.g., "How dependent is the system on a certain party or coalition holding power?").

Governments set the framework for labor relations through legislation and regulation.

In Australia industrial relations is the commonly used term, though in recent years the term workplace relations has also become common. This was a prominent issue in the defeat of the centre-right Howard Liberal government at the 2007 federal election, who with a Senate majority had introduced the WorkChoices policy.

The academic discipline of labor studies is closely related to and often studied and taught in conjunction with the study industrial and labor relations in english language universities.

2. Nature of IR (5)

An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation.

A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.

Actors in the IR system:

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire

them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions.

Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts. SCOPE:

The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.

The scope or industrial relations is quite vast. The main issues involved here include the following:

1. Collective bargaining

2. Machinery for settlement of industrial disputes

3. Standing orders

4. Workers participation in management

5. Unfair labor practices

3. Evolution of IR in India (10)

Evolution of Industrial Relations in India

In India the industrial relations have been seen through the following three stages:1. Occupations in India

a. Labour in medieval Indiab. Guilds and union.

2. Industrial Relations in Indiaa. Early British Ruleb. 1st World War to Pre-Independence Periodc. Post independence period.

1. Occupations in ancient India:

In those days, the prime occupation in India was “Agriculture”. Trading was of second importance.

Manual service formed the third area of preference. Majority of the states were ruled by kings. India was greatly advanced in the industrial field, this is evident from the “Kautilya’s Arthashastra”. This gives a comprehensive picture of the organisations and functions of the social and political institutions in ancient India.

The caste system had great influence on the development and progress of these industries and occupation. The concept of caste systems was originally based on the transfer of skills and specializations which ultimately led to standardization of professions. The

“Atarvana” Veda divides the community into four categories:1. Kshatriya2. Vaishya3. Shudra4. Arya

The following professions become hereditary:Goldsmiths, weavers, potters, blacksmiths, carpenters, hunters, charioteers, architects, sculptors, armourers. Persons engaged in these occupations become separate communities.

1. Labour Medieval India : The caste system unified a number of persons belonging in particular occupations and formed the basis of occupational guilds. Indian works of art and crafts were badly ruined with the foreign invasions, which lasted 700 years. These artisans gradually lost the traditional skills. This led to the state that there was no difference between a slave and these artisans.

The situation improved only after restoration of law and order under the Mughals. Under Akbar, government factories operated in Agra, Lahore, Fatehpur and Ahmedabad, where employees could develop respective art. A large number of occupations were also carried on by small manufacturers and traders in their cottages mostly on a hereditary basis. A majority of artisans lived in the fringe of starvation.

2. Guilds and Unions : From early days, craftsmen and workers felt the need of being united. Different terms such as Gana and Vrat as in “Rigveda” Sheshthi in Aitareya Brahmana; Gana and Ganapati in Vajasaneyi Samhita; Sreni in Arthashastra and Puga, Gana, Vrat, Shremi and Sangha have been used to indicate what Katyanyana calls group.

These unions gradually gained strength and were helpful not only in the evolution of arts but were powerful centers of arts in themselves. Only responsible persons could become their members. The union followed democratic principles. In event of a dispute between the president and the members, the king intervened and brought about conciliations.

Kautilya has given a good description of the unions of employees, craftsmen or artisans. According to him the work of unions should be controlled by the board of 3 directors, members should pay the entrance fee to the president and the profits earned by the unions should be equally distributed among their members.

Almost every craft, profession or occupation had its own union which was called “Shreni”. Every “Shreni” included about 1000 members. The Shreni elected its chief who was called the “Pramukha” or “Jyeshta”. These guilds and corporations wielded considerable political power

and influence.

2. Industrial Relation in India

However due to the autocratic regime of the Muslim rulers, the economic conditions of the employees was deplorable. Laborers could be forced to leave home to work on wages, as per the “Forman” of the emperor or the Governor, as the case may be. There were no organisations of the workers during the Mughal rule which could deal with the difficulties and problems of the members.

The wages, if paid were very meager and insufficient for a day meal too. They were also paid in the form of old, used and tattered clothes and such other articles, when the emperor and his officials dealt harshly with the workers cordial relations between layout and capitol could not be expected to exist.

Commercial character of the East India Company did not change the conditions of the workers. The underdevelopment of the economy continued even under the British rule. But collective relations in industry were modeled on the British pattern. In fact the growth of industries in different parts of the country was based on the need for good industrial relations.

(a) Early British Rule: There was not much if scope for industrial development in India during the early British rule. India was expected to be colonial market for British goods till the second half of the 19th Century. A cotton mill was established in Bombay and Calcutta. The workers were to work in subversive and deplorable conditions, while they were exploited by their contractors. Their relations had been strained and the workers abstained themselves from work. As a result, many disputes rose. Mining industry also started slowly. Tata Iron and Steel industry had been established in Jamshedpur, which produced on a moderate scale. Engineering and railway workshops, iron and brass foundries etc had also been developed in a moderate way prior to World War-I. The modern industry in India owes a great deal to the initiative of the Europeans. However the workers were not satisfied with the working conditions and the worker-management relations were not cordial. Hence the Factories Act of 1881 was passed which gave an impetus to the worker’s approach for redressal.

(b) World War-I: This was period of Boom for all employers. With the rising prices, the profit also went up enormously. The wages of the workers, however did not keep pace with this tendency. The economic distress brought workers together and an organised working class movement began in the country. The unrest among the workers found an outlet in increased strike actions among which the one at Ahmedabad and other at Chennai are famous. During this period, as a result of ILO influence, various laws were enacted (Workmen’s compensation act -1923, the trade unions act-1926 and the Trade disputes act – 1917)

During the second war, employers made enormous profits. The workers demanded a share in them. Bonus and dearness allowance were granted to them but as money wages did not increase in proportion to the rise in prices, the government tried to check dissatisfaction of workers and consequential strike activity by prohibiting strikes under the emergency rules.

(c) Post Independence Era: Immediately after independence, in the interests of the national economy, it was considered necessary to put a stop to strikes and lockouts that interrupted production. A tripartite conference was adopted, giving paramount importance to the

maintenance of industrial peace. The minimum wages act, the factories act and Employees State insurance Act were all enacted 1948.

Post independence industrial relations were very much influenced by the pre-independence industrial environments and labour management relations. Industrial unrest and shattered worker management relations prevailed everywhere when India became independent in 1947. Government has emerged as an arbitrator between management and workers. During the second five year plan, certain norms, mechanisms and practices were evolved which formulate the need of minimum wage, wage boards, guidelines on rationalization, code of discipline, code of conduct, scheme for workers participation in management.

5. Approaches to IR (5)

Unitarist perspective

In unitarianism, the organization is perceived as an integrated and harmonious whole with the ideal of "one happy family", where management and other members of the staff all share a common purpose, emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees, being predominantly managerial in its emphasis and application.

Consequently, trade unions are deemed as unnecessary since the loyalty between employees and organizations are considered mutually exclusive, where there can't be two sides of industry. Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction and communication breakdown.

[edit] Pluralist perspective

In pluralism the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the pluralistic perspective are the management and trade unions.

Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees, conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact be channeled towards evolution and positive change.

[edit] Radical perspective

This view of industrial relations looks at the nature of the capitalist society, where there is a fundamental division of interest between capital and labour, and sees workplace relations against this history. This perspective sees inequalities of power and economic wealth as having their roots in the nature of the capitalist economic system. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Whilst there may be periods of acquiescence, the Marxist view would be that institutions of joint regulation would enhance rather than limit management's position as they presume the continuation of capitalism rather than challenge it.

Module 2: Managing IR

3. Name the acts related to IR

Laws related to Industrial Relations

1 The Trade Unions Act, 1926

2 The Industrial Employment (Standing Orders) Act, 1946

The Industrial Employment (Standing Orders) Rules, 1946

 

3 The Industrial Disputes Act, 1947

 

The Factories Act, 1948

4. Explain any of the two acts (5)

Trade union in PPT.

In PPT Factories

Module 3: Employer discipline

2. Define discipline (2)

The maintenance of harmonious industrial relations within an industry depends on the extent of promotion and maintenance of discipline in the organizations. No organizations can grow and prosper without effective disciplinary system. Discipline on account of employees means complying with the predefined rules and regulations of the organization. It is a form of training that enforces organizational rules. Conduct problems arise from the employees who fail to follow the code of conduct of the organization. These employees are most often affected by the disciplinary system of the organization. Such employees are often called problem employees. The problem employees comprise a small number of employees, but they are the ones who cause the most disciplinary situations. If employers fail to deal with problem employees, negative effects on other employees and work groups may result. Some common disciplinary issues caused by problem employees include absenteeism, tardiness, productivity deficiencies, pilfering, alcoholism, insubordination, misuse of equipments and other company resources, and negligence. The goal of discipline is behavior modification, that is, to modify unacceptable behavior and misconduct.

The Disciplinary System

3. List out the different kinds of power (2)

Corrective power: resets on the application or threat of application, of physical sanctions.

Remunerative power : is based on control of material resources through allocations of salaries, wages, commissions, fringe benefits, etc.

Normative power : resets on the allocations and manipulations of symbolic rewards e.g. esteem , prestige symbols etc.

4. List out the different kinds of involvement (2)

Allienative involvement : designates and intense -ve orientation on the part of the subordinate.

Calculative involvement : either -ve or +ve involvement on a low intensity. In case of tangible benefits.

Moral Involvement : +ve orientation of high intensity.

5. Explain disciplinary actions (5)

Positive Discipline Approach  

This approach is based on the premise that role of a discipline approach should not always be to punish; rather, it should try to regulate the negative behavior of employees to make them better workers. Positive discipline is a corrective action which results in improved performance, more productivity and effective workforce. Harsh and negative punishment might work in the short term, but the end result will eventually be employee dissatisfaction, low productivity, higher rate of absenteeism and high turnover. This approach tries to mend the negative behavior of employees by first providing them counseling in terms of what is expected out of them and then giving oral and written warnings to them. Termination or discharge in extreme cases may also take place.

Steps of positive discipline approach

1. Counseling: Counseling is an important part of the discipline process, because it gives a supervisor the opportunity to identify employee work behavior problems and discuss possible solutions with him. The goal of this phase is to make employee aware of organizational policies and rules. Counseling by a supervisor in the work unit can have positive effects also. Often, employees simply need to be made aware of rules. An oral warning can also be given to employee during counseling. Confrontation helps to understand the employee point of view as well. However, proper training should be given to the supervisors regarding counseling skills to make this process successful.

2. Written warning: If employee behavior has not been improved by counseling sessions, then a second conference is held between the supervisor and the employee. This stage is documented in written form. As part of this phase, the employee and the supervisor develop written solutions to prevent further problems from occurring.

3. Final warning: When the employee does not follow the written solutions, a final warning conference is held. In that conference the supervisor emphasizes to the employee the importance

of correcting the inappropriate actions. Some firms incorporate a decision-day off, in which the employee is given a day off with pay to develop a firm, written action plan to remedy the problem behaviors. The idea is to impress on the offender the seriousness of the problem and the manager’s determination to see that the behavior is changed.

4. Discharge: If the employee fails to follow the action plan that was developed and further problem behaviors exist, then the supervisor will discharge the employee.

The positive aspect of this approach is that it focuses on problem solving rather than punishing and penalizing. This approach involves positive confrontation with the problem employee and thus gives him an opportunity to justify himself. The supervisor makes him aware of the company policies. The greatest difficulty with this is the extensive amount of training required for supervisors and managers to become effective counselors. Also, the process often takes more supervisory time than the progressive discipline approach.

Progressive Discipline Approach  

It is a step by step program designed to correct performance problems arising out of employee misconduct. This approach typically follows four progressive steps to rectify offenses committed by an employee. It suggests that actions to modify behavior become progressively more severe as the employee continues to show improper behavior.

1. Oral reprimands: It is a verbal interaction between the employees and supervisor where they discuss the problem behavior and the expectations to change the behaviors. An oral warning is issued as an infor¬mal reprimand that is simply noted in the record.

2. Written reprimand: It involves the documentation between employees and supervisor if the behavior continues or if the employee further commits a serious offense. A written warning is more official and summarizes the previous oral attempts. This written feedback is discussed with the employee and then placed in his personnel file.

3. Suspension: The third step is suspension with¬out pay; its purpose is to emphasize the seriousness of the offense and necessity of change.

4. Dismissal: The final step is dismissal of employee and is used only when previous steps have failed to change unacceptable behavior.

The progressive discipline model has two advantages for managers:

It gives the employee additional opportunities to correct his per¬formance prior to discharge.

It stresses the serious¬ness of repeated violations to employees.

This progressive discipline has the following disadvantages:

Progressive discipline may result into bitter relationships between supervisor and employee.

Supervisor may feel obligated to address every perform¬ance offence and assign an appropriate punishment to it, even though it may not be required.

Management may focus only on the problem employees at the expense of the good performers, thereby consuming too much of a manager's time.

6. Explain the types of discipline problems (5)

Excessive absenteeism · Poor timekeeping · Defective and/or inadequate work performance · Poor attitudes which influence the work of others or reflect on the image of the firm · Breaking rules regarding rest periods and other time schedules · Improper personal appearance · Breaking safety rules · Other violations of rules, regulations and procedures · Open insubordination such as the refusal to carry out a work assignment.

7. Explain contingency factors to analyze discipline problem (10)

The following seven contingency factors can help us

analyze a discipline problem:

1. Seriousness of the problem. How sever is the problem? As noted previously, dishonesty is usually

considered a more serious infraction than reporting to work 20 minutes late.

2. Duration of problem. Have there been other discipline problems in the past, and over how long a

time span? The violation dies not take place in a vacuum. A first occurrence is usually viewed

differently than a third or fourth offense.

3. Frequency and mature of the problem. Is the current problems part of an emerging or

continuing pattern of disciplinary infractions? We are continual with not only the duration but also

the pattern of the problem. Continual infractions may require but also the pattern of the problem.

Continual infractions may require a different type of discipline from that applied to isolated

instances of misconduct. They may also point out a situation that demands far more sever

discipline in order to prevent a minor problem demands far more severe discipline in order to

prevent a minor problem from becoming a major one.

4. Extenuating Factors. Are there extenuating circumstances related to the problem? The student

who fails to turn in her term paper by the deadline because of the death of her grandfather is likely

to have her violation assessed more leniently than will her peer who missed the deadline because he

overslept.

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5. Degree of socialization. To what extent has management made an earlier effort to educate the

person causing the problem about the existing rules and procedures and the consequences of

knowledge that the violator holds of the organization’s standards of acceptable behavior. In

contrast to the previous item, the new employee is less likely to have been socialized to these

standards than the 20-year veteran. Additionally, the organization that has formalized, written rules

governing employee conduct is more justified in aggressively enforcing

6. Violations of these rules than is the organization whose rules are informal or vague. History

of the Organization’s Discipline practices. How have similar infractions been dealt with in the past

within the department? Within the entire organizations? Has there been consistency in the

application of discipline procedures? Equitable treatment of employees must take into

consideration precedents within the unit where the infraction occurs, as well as previous

disciplinary actions taken in other units within the organization. ? Equity demands consistency

against some relevant benchmark.

7. Management Backing. If employees decide to take their case to a higher level in management,

will you have reasonable evidence to justify your decision? Should the employee challenge your

disciplinary action, it is important that you have the data to back up the necessity and equity of the

action taken and that you feel confident that management will support your decision. No

disciplinary action is likely to carry much weight if violators believe that they can challenge and

successfully override their manager’s decision.

How can these seven items help? Consider that there are many reasons for why we might discipline an

employee. With little difficulty, we could list several dozen or more infraction that management might

believe require disciplinary action. For simplicity’s sake, we have classified the most frequent violations into

four categories: attendance, on-the- job behaviors, dishonesty, and on the job behavior.

• Attendance like: Unexcused absence, chronic absenteeism, leaving without permission

• Work Performance problems can include action like not completing work assignments,

producing substandard products or services not meeting established production

requirements

• Dishonesty and Related Problems like, Theft, Falsifying employment application,

Willfully damaging organizational property, Punching another employee’s time card,

Falsifying work records

• On-the-job Behaviors like: Insubordination ,Smoking in unauthorized places, Fighting,

Gambling, Failure to use safety devices, Failure to report injuries, Carelessness, Sleeping on

the job, Using abusive or threatening language with supervisors, Possession of narcotics or

alcohol, Possession of firearms or other weapons, Sexual harassment,

Infractions may be minor or serious given the situation or the industry in which one works. For example,

while concealing defective work in a hand –power tool assembly line may be viewed as minor, the same

action in an aerospace manufacturing plant is more serious. Furthermore, recurrence and severity of the

infraction will play a role. For instance, employees who experience their first minor offense might generally

expect a minor reprimand. A second offense might result in a more stringent reprimand, and so forth. In

contrast, the first occurrence of a serious offense might mean not being allowed to return to work, the

length of time being dependent on the circumstances surrounding the violation.

Module 4: Employee grievance – handling

2. Define grievance (2)

a. An actual or supposed circumstance regarded as just cause for complaint.

b. A complaint or protestation based on such a circumstance.

3. Why grievances (5)

Grievance means any type of dissatisfaction or discontentments arising out of factors related to an employee’s 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. In an organization, a grievance may arise due to several factors such as:

Violation of management’s responsibility such as poor working conditions

Violation of company’s rules and regulations

Violation of labor laws

Violation of natural rules of justice such as unfair treatment in promotion, etc.

Various sources of grievance may be categorized under three heads: (i) management policies, (ii) working conditions, and (iii) personal factors

1. Grievance resulting from management policies include:

Wage rates

Leave policy

Overtime

Lack of career planning

Role conflicts

Lack of regard for collective agreement

Disparity between skill of worker and job responsibility

2. Grievance resulting from working conditions include:

Poor safety and bad physical conditions

Unavailability of tools and proper machinery

Negative approach to discipline

Unrealistic targets

3. Grievance resulting from inter-personal factors include

Poor relationships with team members

Autocratic leadership style of superiors

Poor relations with seniors

Conflicts with peers and colleagues

It is necessary to distinguish a complaint from grievance. A complaint is an indication of employee dissatisfaction that has not been submitted in written. On the other hand, a grievance is a complaint that has been put in writing and made formal.

Grievances are symptoms of conflicts in industry. Therefore, management should be concerned with both complaints and grievances, because both may be important indicators of potential problems within the workforce. Without a grievance procedure, management may be unable to respond to employee concerns since managers are unaware of them. Therefore, a formal grievance procedure is a valuable communication tool for the organization.

4. What are the effects of grievances (5)

Grievances can have several effects which are essentially adverse and

counterproductive to organizational purposes. The adverse effects include:

a. Loss of interest in work and consequent lack of moral and commitment

b. Poor quality of production

c. Low productivity

d. Increase in wastage and costs

e. Increase in employee turnover

f. Increase in the incidence of accidents

g. Indiscipline

h. Unrest, etc.

5. Explain the steps in grievance handling (5)

Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance. The grievance procedures differ from organization to organization.

1. Open door policy2. Step-ladder policy

Open door policy: Under this policy, the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. Such a policy works well only in small organizations. However, in bigger organizations, top management executives are usually busy with other concerned matters of the company. 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 procedure for getting his grievance redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with superior’s decision, then he discusses his grievance with the departmental head. The departmental head discusses the problem with joint grievance committees to find a solution. However, if the committee also fails to redress the grievance, then it may be referred to chief executive. If the chief executive also fails to redress the grievance, then such a grievance is referred to voluntary arbitration where 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 established grievance 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 persons in each department who are to be approached first and the departmental heads who are supposed to be 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 a representative 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 can take his grievance to head of the department, who has to give his decision within 3 days.

STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he can take 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 the report of Grievance Committee must be communicated to the aggrieved employee within three days of the receipt of report. An appeal for revision of final decision can be made by the worker if he is not satisfied with it. The management must communicate its decision to the worker within 7 days.

6. List out the dos and don'ts of grievance handling (5)

Do’s and Don’ts in Grievance Handling – Check

Lists

1. All the points are not applicable to every case, but if the supervisor is familiar

2. with all of them and observe them in his handling of grievances, he will be prepared

3. for almost any kind of case that may arise.

4. Investigate and handle each and every case, though it may eventually

5. result in an arbitration hearing.

6. Talk with the employee about his grievance, give him a good and full

7. hearing

8. Enforce the contractual time limit

9. Comply with contractual time limits on the company for handling the

10. grievance

11. Don’t argue the merits of the grievance first if the grievance is untimely

12. Don’t make agreements with individuals that are inconsistent with the

13. labour agreement

14. Don’t hold back the remedy if the company is wrong

15. Visit the work area of the aggrieved part

16. Determine if there were any witnesses

17. Examine the relevant contract provisions

18. Determine if the company has been consistent

19. Examine the total agreement and make interpretations based on the whole

20. Don’t admit to the binding effect of a past practice

21. Examine prior grievance records

22. Produce all available evidence

23. Permit a full hearing of the issues

24. Treat the union representative as your equal

25. Don’t relinquish your authority to the union

26. Admit your errors and take corrective action

27. Don’t settle grievances on the basis of what is fair

28. Bear burden of proof in discipline and discharge case

29. Treat union representatives and employees as people

30. Don’t argue grievance issues off work premises

31. Power Finance Corporation

32. -8-

33. Consultant

34. Study on Reforms and Restructuring

35. of Meghalaya State Power Sector

36. Don’t give away your copy of the written grievance

37. Don’t discuss grievances of striking employees during an illegal work

38. stoppage

39. Satisfy the union’s right to relevant information

40. Don’t file management grievances

41. Don’t overlook the precedent value of prior grievance settlement

42. Don’t give long-written answers

43. Don’t trade a grievance settlement for a grievance withdrawal

44. Handy cases involving discipline or discharge of union representatives

45. with extra caution and consideration

46. Don’t deny grievances on the premise that your hands have been tied by

47. management

48. Control your emotions, your remarks and your behaviours

49. Don’t withhold grievance information

50. Maintain records of matters relevant to your labour relations situation

51. Fully inform your own supervisor of grievance matter

52. Remember the union is the moving party

53. Determine if there has been equal treatment of employees

54. Command respect from employees and union representatives

55. Hold your grievance discussions privately

56. Don’t make mutual-consent agreements regarding future management

57. action

58. Use the grievance meeting as another avenue of communication

59. Know your employees as individuals

7. Explain model grievance procedure (5)

Model Grievance Procedure 

The Model Grievance Procedure suggested by the National Commission on Labor involves six successive time-bound steps each leading to the next, in case of dissatisfaction. The aggrieved worker in the first instance will approach the foreman and tells him of his grievance orally. The foreman has to redress his grievance and if the worker is not satisfied with this redressal, he can approach the supervisor. The supervisor has to provide an answer  within 48 hours. In the event of the supervisor not giving an answer or the answer not being acceptable to the worker, the worker goes to the next step. At this stage the worker (either alone or accompanied by his departmental representative) approaches the Head of the Department who has to give an answer within three days. If the Departmental Head fails to give an answer or if the worker is not satisfied with his answer, the worker may appeal to the Grievance Committee, consisting of the representatives of the employer and employees

. The recommendations of this Committee should be communicated to the Manager within seven days from the date of the grievance reaching it. Unanimous decisions, if any, of the committee shall be implemented by the management. If there is no unanimity, the views of the members of the Committee shall be placed before the manager for his decision. The manager has to take a decision and inform the worker within three days.

 

The worker can make an appeal against the manager’s decision and such an appeal has to be decided within a week. A union official may accompany the worker to the manager for discussion and if no decision is arrived at this stage, both the union and management may refer the grievance to voluntary arbitration within a week of the receipt of the management’s decision. The worker in actual practice may not resort to all the above-mentioned steps. For example, if the grievance is because of his

dismissal or discharge he can resort to the second step directly and he can make an appeal against dismissal or discharge.

Module 5: Worker participation in management

1. What is worker participation in management (2)

WORKERS’ PARTICIPATION IN MANAGEMENT

Introduction: Three groups of managerial decisions affect the workers of any industrial establishment and hence the workers must have a say in it.o Economic decisions – methods of manufacturing, automation, shutdown, lay-offs, mergers.o Personnel decisions – recruitment and selection, promotions, demotions, transfers, grievance settlement, work distribution.o Social decisions – hours of work, welfare measures, questions affecting work rules and conduct of individual worker’s safety, health, sanitation and noise control. Participation basically means sharing the decision-making power with the lower ranks of the organization in an appropriate manner.

Definitions: The concept of WPM is a broad and complex one. Depending on the socio-political environment and cultural conditions, the scope and contents of participation change. International Institute of Labour Studies: WPM is the participation resulting from the practices which increase the scope for employees’ share of influence in decision-making at different tiers of organizational hierarch with concomitant assumption of responsibility. 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 as practiced in Yugoslavia.

Objectives: According to Gosep, workers’ participation may be viewed as:o An instrument for increasing the efficiency of enterprises and establishing harmonious relations;o A device for developing social education for promoting solidarity among workers and for tapping human talents;o A means for achieving industrial peace and harmony which leads to higher productivity and increased production;o A humanitarian act, elevating the status of a worker in the society;o An ideological way of developing self-management and promoting industrial democracy. Other objectives of WPM can be cited as:o To improve the quality of working life (QWL) by allowing the workers greater influence and involvement in work and satisfaction obtained from work; ando To secure the mutual co-operation of employees and employers in achieving industrial peace; greater efficiency and productivity in the interest of the enterprise, the workers, the consumers and the nation. The main implications of workers’ participation in management as summarized by ILO:

o Workers have ideas which can be useful;o Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere.

Importance: Unique motivational power and a great psychological value. Peace and harmony between workers and management. Workers get to see how their actions would contribute to the overall growth of the company. They tend to view the decisions as `their own’ and are more enthusiastic in their implementation. Participation makes them more responsible.o They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas.

Scope and ways of participation: One view is that workers or the trade unions should, as equal partners, sit with the management and make joint managerial decisions. The other view is that workers should only be given an opportunity, through their representatives, to influence managerial decisions at various levels. In practice, the participation of workers can take place by one or all the methods listed below:o Board level participationo Ownership participationo Complete controlo Staff or work councilso Joint councils and committeeso Collective Bargainingo Job enlargement and enrichmento Suggestion schemeso Quality circleso Empowered teamso TQMo Financial participation

Participation at the Board level: This would be the highest form of industrial democracy. The workers’ representative on the Board can play a useful role in safeguarding the interests of workers. He or she can serve as a guide and a control element.o He or she can prevail upon top management not to take measures that would be unpopular with the employees.o He or she can guide the Board members on matters of investment in employee benefit schemes like housing, and so forth. The Government of India took the initiative and appointed workers’ representatives on the Board of Hindustan Antibiotics (Pune), HMT (Bangalore), and even nationalized banks. The Tatas, DCM, and a few others have adopted this practice. Problems associated with this method:o Focus of workers’ representatives is different from the focus of the remaining members of the Board.o Communication and subsequently relations between the workers’ representative and the workers suffers after the former assumes directorship. He or she tends to become alienated from the workers.

o As a result, he or she may be less effective with the other members of the Board in dealing with employee matters.o Because of the differences in the cultural and educational backgrounds, and differences in behaviour and manners, such an employees’ representative may feel inferior to the other members, and he or she may feel suffocated. Hence, his or her role as a director may not be satisfying for either the workers or the management.o Such representatives of workers’ on the Board, places them in a minority. And the decisions of the Board are arrived at on the basis of the majority vote.

Participation through ownership: This involves making the workers’ shareholders of the company by inducing them to buy equity shares.o In many cases, advances and financial assistance in the form of easy repayment options are extended to enable employees to buy equity shares. Examples of this method are available in the manufacturing as well as the service sector. Advantage: o Makes the workers committed to the job and to the organization. Drawback:o Effect on participation is limited because ownership and management are two different things.

Participation through complete control: Workers acquire complete control of the management through elected boards. The system of self-management in Yugoslavia is based on this concept. Self-management gives complete control to workers to manage directly all aspects of industries through their representatives. Advantages:o Ensures identification of the workers with their organization.o Industrial disputes disappear when workers develop loyalty to the organization.o Trade unions welcome this type of participation. Conclusion: Complete control by workers is not an answer to the problem of participation because the workers do not evince interest in management decisions.

Participation through Staff and Works Councils: 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.o Their role ranges from seeking information on the management’s intentions to a full share in decision-making. Such councils have not enjoyed too much of success because trade union leaders fear the erosion of their power and prestige if such workers’ bodies were to prevail.

Participation through Joint Councils and Committees: Joint councils are bodies comprising representatives of employers and employees.o This method sees a very loose form of participation, as these councils are mostly consultative bodies. Work committees are a legal requirement in industrial establishments employing 100 or more workers.o 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.

Participation through Collective Bargaining: Through the process of CB, management and workers may reach collective agreement regarding rules for the formulation and termination of the contract of employment, as well as conditions of service in an establishment. Even though these agreements are not legally binding, they do have some force. For CB to work, the workers’ and the employers’ representatives need to bargain in the right spirit. But in practice, while bargaining, each party tries to take advantage of the other. This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on the crude concept of exercising power for the benefit of one party.o WPM, on the other hand, brings both the parties together and develops appropriate mutual understanding and brings about a mature responsible relationship.

Participation through Job Enlargement and Job Enrichment: Excessive job specialization that is seen as a by-product of mass production in industries, leads to boredom and associated problems in employees. Two methods of job designing – job enlargement and job enrichment– are seen as methods of addressing the problems.o Job enlargement means expanding the job content – adding task elements horizontally.o Job enrichment means adding `motivators’ to the job to make it more rewarding. This is WPM in that it offers freedom and scope to the workers to use their judgment. But this form of participation is very basic as it provides only limited freedom to a worker concerning the method of performing his/her job. The worker has no say in other vital issues of concern to him – issues such as job and income security, welfare schemes and other policy decisions.

Participation through Suggestion Schemes: Employees’ views are invited and reward is given for the best suggestion. With this scheme, the employees’ interest in the problems of the organization is aroused and maintained. Progressive managements increasingly use the suggestion schemes. Suggestions can come from various levels. The ideas could range from changes in inspection procedures to design changes, process simplification, paper-work reduction and the like.o Out of various suggestions, those accepted could provide marginal to substantial benefits to the company. The rewards given to the employees are in line with the benefits derived from the suggestions.

Participation through Quality Circles: Concept originated in Japan in the early 1960s and has now spread all over the world. A QC consists of seven to ten people from the same work area who meet regularly to define, analyze, and solve quality and related problems in their area. Training in problem-solving techniques is provided to the members. QCs are said to provide quick, concrete, and impressive results when correctly implemented. Advantages:o Employees become involved in decision-making, acquire communication and analytical skills and

improve efficiency of the work place.o Organization gets to enjoy higher savings-to-cost ratios.o Chances of QC members to get promotions are enhanced. The Indian Scenario:o Tried by BHEL, Mahindra and Mahindra, Godrej and Boyce among others.o Experienced mixed results: M&M (jeep division) with 76 QCs has experienced favourable results. • Technical problems got solved.• Workers got to get out of their daily routine and do something challenging. Trade unions look at it as:• A way of overburdening workers, and• An attempt to undermine their role. These circles require a lot of time and commitment on the part of members for regular meetings, analysis, brainstorming, etc. Most QCs have a definite life cycle – one to three years.o Few circles survive beyond this limit either because they loose steam or they face simple problems. QCs can be an excellent bridge between participative and non-participative approaches. For QCs to succeed in the long run, the management needs to show its commitment by implementing some of the suggestions of the groups and providing feedback on the disposition of all suggestions.

Empowered Teams: Empowerment occurs when authority and responsibility are passed on to the employees who then experience a sense of ownership and control over their jobs. Employees may feel more responsible, may take initiative in their work, may get more work done, and may enjoy the work more. For empowerment to occur, the following approach needs to be followed as compared to the traditional approach:Element Traditional Org. Empowered TeamsOrganizational structure Layered, individual Flat, teamJob design Narrow, single task Whole process, multiple tasksManagement role Direct, control Coach, facilitateLeadership Top-down Shared with the teamInformation flow Controlled, limited Open, sharedRewards Individual, seniority Team-based, skill-basedJob process Managers plan, control, improve Teams plan, control, improve

Features of empowered or self-directed teams:o Empowered to share various management and leadership functions.o Plan, control and improve their work.o Often create their schedules and review their performance as a group.o May prepare their own budgets and co-ordinate their work with other departments.o Usually order materials, keep inventories and deal with suppliers.o Frequently responsible for acquiring any new training they might need.o May hire their own replacement to assume responsibility for the quality of their products or services. Titan, Reliance, ABB, GE Plastics (India), Wipro Corporation and Wipro InfoTech are empowering employees – both frontline as well as production staff, and are enjoying positive results.

Total Quality Management: TQM refers to the deep commitment, almost obsession, of an organization to quality. Every step in company’s processes is subjected to intense and regular scrutiny for ways to improve it. Some traditional beliefs are discarded.o High quality costs more.o Quality can be improved by inspection.o Defects cannot be completely eliminated.o Quality in the job of the QC personnel. New principles of TQM are:o Meet the customer’s requirement on time, the first time, and 100% of the time.o Strive to do error-free work. o Manage by prevention, not correction.o Measure the cost of quality. TQM is called participative because it is a formal programme involving every employee in the organization; making each one responsible for improving quality everyday.

Financial Participation: This method involves less consultations or even joint decisions. Performance of the organization is linked to the performance of the employee. The logic behind this is that if an employee has a financial stake in the organization, he/she is likely to be more positively motivated and involved. Some schemes of financial participation:o Profit-linked payo Profit sharing and Employees’ Stock Option schemes.o Pension-fund participation.

Pre-requisites for successful participation: Management and operatives/employees should not work at cross-purposes i.e. they must have clearly defined and complementary objectives. Free flow of communication and information. Participation of outside trade union leaders to be avoided. Strong and effective trade unionism. Workers’ education and training. Trade unions and government needs to work in this area. Trust between both the parties. Workers should be associated at all levels of decision-making. Employees cannot spend all their time in participation to the exclusion of all other work.

Limitations of participation: Technology and organizations today are so complex that specialized work-roles are required. o This means employees will not be able to participate effectively in matters beyond their particular environment. Everybody need not want participation. The role of trade unions in promoting participative management has been far from satisfactory. Employers are unwilling to share power with the workers’ representatives. Managers consider participative management a fraud.

Evolution of participative management in India: The beginning towards WPM was made with the Industrial Disputes Act, 1947, which made Works

Committees mandatory in industrial establishments employing 100 or more workers. The Industrial Policy Resolution adopted by the government in 1956 stated that there should be some joint consultation to ensure industrial peace, and improve employer-employee relations. The functions of both these joint bodies were to be consultative and were not binding on the management. The response to these schemes was encouraging to begin with, but gradually waned.o A study team was appointed in 1962 to report on the working of joint councils and committees. The team identified some reasons for their failure. No concrete steps were taken to remove the difficulties, or change the pattern of participative management. During the emergency of 1975-77, the interest in these schemes was revived by the then Prime Minister by including Workers’ Participation in industry in the government’s 20-point programme.o The government started persuading large enterprises to set up joint consultative committees and councils at different levels. The Janata Government who came to power in 1977 carried on this initiative. In was again emphasized by the Congress government who came back n 1979. This continued in a “non-statutory vein” till the late 1980s, and the response from the employers and employees stayed luke-warm.o Then, the 42nd Amendment to the Constitution was made. Now, Article 43-A reads: The State shall take steps, by suitable legislation, or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organizations engaged in any industry. Thus, participative management is a constitutional commitment in India.o And then, on May 30,1990; the government introduced the Participation of Workers in Management Bill in the Rajya Sabha. The bill requires every industrial enterprise to constitute one or more `Shop-Floor Councils’ at the shop floor level, and`Establishment Council’ at the establishment level. These councils will have equal representation of employers and employees. Shop-Floor councils enjoy powers over a wide range of functions from production, wastage control to safety hazards. The Establishment Council enjoys similar powers. The bill provides for the constitution of a Board of Management of every corporate body owning an industrial establishment. The bill also provides for penalties on individuals who contravene any provision of the bill. In spite of all these efforts, only the government and the academicians have been interested in participative management. But participative management is staging a comeback.o The compulsions of emerging competitive environment have made employee involvement more relevant than ever before.o Managers and the managed are forced to forget their known stands, break barriers, and work in unison.

Managers and workers are partners in the progress of business.

2. Explain levels of participation (5)

In word note.

3. Define QC (2)

4. Define TQM (2)

5. Define six sigma (2)

Six Sigma is a business management strategy originally developed by Motorola.[1] As of 2009[update] it enjoys widespread application in many sectors of industry, although its application is not without controversy.

Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and variability in manufacturing and business processes.[2] It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts","Green Belts", etc.) who are experts in these methods.[2] Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase).[2]

6. Explain the models WPM (5)

Collective bargaining, Joint management councils mode, Workers self management model,

Module 6: Industrial disputes

1. Explain the different types of industrial conflicts (5)

industrial conflict A term which refers to all expressions of dissatisfaction within the employment relationship, especially those pertaining to the employment contract, and the effort bargain. The many different kinds of industrial conflict may be divided into two broad classes—informal and formal.

Informal industrial conflict is so labelled because it is not based on any systematic organization, results directly from a sense of grievance, and supposedly is wholly expressive in nature. Many forms of industrial sabotage which appear irrational would constitute industrial conflict in this sense, as would purely individualized and even unconscious forms of protest, including absenteeism, frequent job-changing, negligence, and even accidents at work. Industrial sociologists have also regarded spontaneous walk-outs and strikes as examples of informal industrial conflict, as well as the constant opposition to management expressed in workgroup norms regulating output, restrictive practices, secrecy, or other guarded treatment of superiors. The idea of informal industrial conflict thus draws attention to the roots of behaviour which may appear incomprehensible from the point of view of management. Used too widely, however, it loses its vigour.

Formal industrial conflict is reserved for organized expressions of conflict articulated through a trade-union or other worker representative. Its supposed purpose is strategic or instrumental rather than (or as well as) expressive and may often involve workers who, by themselves, have no feelings or personal involvement regarding the issues at stake in the dispute. Its characteristic form is the organized strike: that is, a withdrawal of labour such as to constitute a temporary breach of contract, using the collective strength of the workforce to avoid sanctions and achieve adjustments to pay or conditions of work. Strikes may be reinforced by other types of formal sanction such as the go-slow and work to rule. They may be confined to those directly affected or may take the form of sympathy strikes by workers in related jobs and industries. Strikes are deemed to be official if they have been called at the behest of the union leadership and in accordance with the law and with procedural collective-bargaining agreements. The term unofficial or ‘wildcat’ is applied to strikes waged through unrecognized leaders such as shop stewards, or by a non-recognized union, or in some other way which breaches established collective-

bargaining laws and procedures. Obviously, there is not a clear distinction in practice between wildcat strikes and some of the more collective forms of unofficial conflict.

At one time there was much debate in industrial sociology about the term strike-proneness—epitomizing the search for structural causes of industrial conflict. Attempts were made to link patterns of strike activity with industry type, with the degree of isolation and class homogeneity of the work community, with the use of mass-production technologies, the bureaucratization of management, and the structuring of work groups. Though weak correlations have been found with some of these factors, the frequency and incidence of strikes and similar forms of unrest is so erratic that plenty of discrepant occurrences could be found. Economists have had some success linking long-term strike patterns to economic indicators but they, like other investigators in this mould, are hampered by the varying quality and scope of national and international strike statistics. The conclusions tend therefore to be pitched at a highly general level. A fundamental objection to such structural explanations is that the more overt forms of industrial conflict have to be socially organized as well as provoked. Hence, explanations of them have to bear in mind the strategic considerations perceived by workers and their leaders, as well as the meaning of industrial action, which can (and clearly does) vary greatly between industrial relations cultures. It is said, for example, that the wearing of red hats during work is as serious an expression of dissent in the Japanese context as a protracted strike is in the British.

Module 7: Unions and Unionisms

Define the following:

1. Collective bargaining (2)

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 firm’s 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.

ILO has defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment/industrial relations with one another.

Collective bargaining involves discussions and negotiations between two groups as to the terms and conditions 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 an agreement involves proposals and counter proposals, offers and counter offers and other negotiations.

Thus collective bargaining:

is a collective process in which representatives of both the management and employees participate.

is a continuous process which aims at establishing stable relationships between the parties involved.

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

attempts in achieving discipline in the industry

is a flexible approach, as the parties involved have to adopt a flexible attitude towards negotiations.

2. Negotiation (2)

a discussion intended to produce an agreement

3. Arbitration (2)

Arbitration entails the appointment of a third party to act as adjudicator in a dispute and to decide on the terms of settlement. Arbitration differs from the conciliation & mediation in that it does not promote the continuation of collective bargaining. In arbitration a third party actively intervenes in the dispute & takes over the role of a decision maker. The arbitrator listens to & investigates the demands & counter demands on both sides, & decides on a final settlement. Whatever settlement will become binding on both parties.

4. Conciliation (2)

To overcome the distrust or animosity of; appease.

2. To regain or try to regain (friendship or goodwill) by pleasant behavior.3. To make or attempt to make compatible; reconcile.4.

5. Adjudication (2)

Adjudication is the legal process by which an arbiter or judge reviews evidence and argumentation including legal reasoning set forth by opposing parties or litigants to come to a decision which determines rights and obligations between the parties involved. Three types of disputes are resolved through adjudication:

1. Disputes between private parties, such as individuals or corporations. 2. Disputes between private parties and public officials. 3. Disputes between public officials or public bodies.

Mention the 3 phases of trade union movements (2)

Explain the trade unionism with 3 phases (10)

The trade unionism in India developed quite slowly as compared 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 took place. During this period, the working and living conditions of the labor were poor and their working hours were long. Capitalists were only interested in their productivity and profitability. In addition, the wages were also low and general economic conditions were poor in industries. In order to regulate the working hours and other service conditions of the Indian textile laborers, the Indian Factories Act was enacted in 1881. As a result, employment of

child labor was prohibited.

The growth of trade union movement was slow in this phase and later on the Indian Factory Act of 1881 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 though there was no union in real terms. Small associations like Bombay Mill-Hands Association came up by this time.

The second phase (1900 to 1946)This phase was characterized by the development of organized trade unions and political movements of the working class. Between 1918 and 1923, many unions came into existence in the country. At Ahmedabad, under the guidance of Mahatma Gandhi, occupational unions like spinners’ unions and weavers’ unions were formed. A strike was launched by these unions under the leadership of Mahatma 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 All India Trade Union Congress (AITUC)) was established. Many of the leaders of this organization were leaders of the national Movement. In 1926, Trade union law came up with the efforts of Mr. N N Joshi that became operative from 1927. During 1928, All India Trade Union Federation (AITUF) was formed.

The third phase began with the emergence of independent India (in 1947). The partition of country affected the trade union movement particularly Bengal and Punjab. By 1949, four central trade union organizations 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 instance Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. The AITUC is the trade union arm of the Communist Party of India. Besides workers, white-collar employees, supervisors and managers are also organized by the trade unions, as for example in the Banking, Insurance and Petroleum industries.

Trade unions in IndiaThe Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor markets consist 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.

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)

Module 8: Emerging trends in IR

1. Elaborate on emerging trends in IR (10)

Competition on the basis of cheap labour:-Globalization and increased competition has lead to less strikes, lockouts and less man days lost due to strikes. Also now in the era of knowledge industry employees are educated and thus don¡¦t believe in violent activities. They are having responsibilities in cut throat competition and also are aware of their rights well leading to decline in strikes. Employers also avoid lockouts because decline in production for even hours results in heavy losses so forget about days or weeks.

Disinvestment: - it affects IR in following ways:_

It changes ownership, which may bring out changes not only in work org and employment but also in trade union (TU) dynamics.It changes the work organization by necessitating retaining and redeployment.It affects the right of workers and Trade unions, including job/union security, income security, and social security.

Trade unions, mgt and government are responding to these challenges through various types of new, innovative, or model arrangements to deal with different aspects of disinvestment like

„X Making workers the owners through issue of shares or controlling interests (latter is still not in India)„X Negotiating higher compensation for voluntary separations„X Safeguarding existing benefits„X Setting up further employment generating programs, and„X Proposals for setting up new safety nets that not only include unemployment insurance but also skills provisions for redundant workers.

Deregulation: - it is tried to ensure that pubic sector/ government employees receive similar protection as is provided in public/government employment. The worst affected are the pension provisions. this means, usually a reduction in pension benefits and an uncertainty concerning future provision of pension benefit due to

„X The absence of government guarantees„X Falling interest rates„X Investment of pension funds in stock markets

Decentralization of IR is seen in terms of the shift in consideration of IR issues from macro to micro and from industry to enterprise level. When the coordination is at the national or sectoral level then work in the whole industry can be paralyzed because of conflict in IR. But when the dispute is at the bank level, in the absence of centralized coordination by Trade unions only work in that bank is paralyzed and the other banks function normally. This weakens the bargaining power of unions.

New actors and the emerging dynamics: - Earlier IR was mainly concerned with Trade unions, mgt and government but now consumers and the community are also a part of it. When the right s of consumers and community are affected, the rights of workers and unions and managers / employers take a back seat. Hence there is ban on bandh and restrictions even on protests and dharnas.Increasingly Trade unions are getting isolated and see a future for them only by aligning themselves with the interests of the wider society.

Pro-labour-pro-investor policies

This leads to decline in strength and power of Trade unions if not in numbers. Unions have to make alliances with the society, consumers and community and various civil society institutions otherwise they will find themselves dwindling.

Declining TU density

In government and public sectors workforce is declining because of non-filling of vacancies and introduction of voluntary / early separation schemes. New employment opportunities are shrinking in these sectors.

In the private sectors particularly in service and software sector, the new, young, and female workers are generally less eager to join unions.

Workers militancy replaced by employer militancy

Due to industrial conflicts

In 1980-81 man days lost = 402.1 million In 1990-91 man days lost = 210 million

Not because of improved IR but because of the fear of job security, concern about the futility of strikes, and concern to survive their organization for their income survival.

Trade unions have become defensive evident from the fact that there is significant shift from strikes to law suits. Instead of pressing for higher wages and improved benefits, Trade unions are pressing for maintenance of existing benefits and protection and claims over non-payment of agreed wages and benefits.

Collective Bargaining

Level of collective bargaining is shrinking day by day.

Some more information:-

In India, while labour is in the Concurrent List, state labour regulations are an important determinant of industrial performance. The Survey notes evidences that states that had enacted more pro-worker regulations, had lost out on industrial production in general.

However, on the upside, the Survey said there was a secular decline in the number of strikes and lockouts during 2000-04. The total number of strikes and lockouts went down 13.6% from 552 in 2003 to 477 in 2004. The decline was sharper in the number strikes than in lockouts, it noted. While most of the strikes and lockouts were in private sector establishments, overall industrial relations had improved, especially between 2003 and 2004, when there was a decline in the number of mandays lost by 6.39 million.

Among states, the maximum number of strikes and lockouts were in Left-ruled West Bengal, followed by Tamil Nadu and Gujarat. The sectors which saw instances of industrial disturbance were primarily textiles, engineering, chemical and food product industries.

Stressing on the importance of labour reforms to enhance productivity, competitiveness and employment generation, the Survey noted that a beginning had already been made in that direction. For instance, in the current year, there was a proposal to enhance the wage ceiling from Rs 1,600 per month to Rs 6,000 per month through The Payment of Wages (Amendment) Act 2005. Also, the proposal to empower the central government to further enhance the ceiling in future by way of notification is already in effect from November 9, 2005.

As regards women working on night shifts, The Factories (Amendment) Bill 2005, was under consideration to provide them flexibility and safety. Also, to simplify the procedure for managements to maintain registers and filing returns, an amendment of Labour Laws (Exemption from Furnishing returns and maintaining Registers by Certain Establishments) Act 1988, was under consideration.