PROBLEM AND PROSPECT OF INDUSTRIAL RELATION IN COAL

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Spectrum: A Journal of Multidisciplinary Research

Vol.2 Issue 6, June 2013, ISSN 2278-0637

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PROBLEM AND PROSPECT OF INDUSTRIAL RELATION IN COAL

INDUSTRY WITH SPECIAL REFERENCE TO C.C.L, RANCHI

PALLAVI KUMARI*

*Lecturer,

Biju Patnaik Institute of Information Technology & Management Studies,

India.

ABSTRACT

In a growing and labour-abundant economy like India, industrial relations have special

significance, particularly in public sector enterprises which play a dominant role in the industrial

economy of India. This study is relevant because industrial harmony now-a –days is considered

as a pre-condition for sustained economic development and growth of any type of economy. The

present study is carried out with the purpose to explore the industrial relation problem in the coal

industry. The focus of this paper is to analyze the importance and challenges of the industrial

relation in public sector undertaking .As a result, first of all, I review the relevant literature to

find out the impact of industrial relation in a coal industry. The data were collected mainly from

secondary sources. This paper suggests a professional approach on modern day IR practices and

concludes that healthy industrial relation in an enterprise generates attitudes which stabilize

democratic institutions.

KEYWORDS: Industrial relation, economic development, industrial democracy.

_____________________________________________________________________________

INTRODUCTION

Industrial relation is not merely the management-employee relation and the union management

relation but it involves the relation with the state or the government also. Industrial relations

necessitate passing of certain labour laws to protect and promote the welfare of labour and

safeguard interests of all the parties against unfair means or practices. Industrial relations involve

setting up machinery to solve problems confronted by management and employees through

mutual agreement to which both these parties are bound. This results in banning of the unfair

practices being used by employers or trade unions. Industrial relations mean settling employee’s

problems through collective bargaining, mutual cooperation and mutual agreement amongst the

parties i.e., management and employee’s unions. Healthy and orderly industrial relations lead to

increased efficiency and hence higher productivity and income. This will result in economic

development of the economy.

Coal is the primary source of energy. Coal accounts for over 50% of India's commercial energy

consumption and about 78% of domestic coal production is dedicated to power generation. The

inventory of Coal in India are estimated to be around 285.86 billion tonnes (as on 1st April,

2011), which constitute about 0.8% of the Global Coal reserves, whereas it's production

contribution is around 7%. Coal mining can and does provide a significant direct contribution to

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economic development at a local level, particularly in the poorer parts of the world. Large-scale

mines are often the biggest source of income for rural communities. Coal India Limited (CIL) - a

Schedule MAHARATNA Public Sector Undertaking under Ministry of Coal, Government of

India, is the single largest coal producing company in the world and the largest corporate

employer with approximately 3.8 lakh employees, contributing around 81% of the total coal

production in India. CIL produce non-coking coal and coking coal of various grades for diverse

applications. It operates 471 mines in 21 major coalfields across eight states in India (West

Bengal, Jharkhand, Orissa, Madhya Pradesh, Maharashtra, Chhattisgarh, Uttar Pradesh and

Assam). The Company is also undertaking mining operations abroad and joint ventures. The

turnover for April to December 2012 was 48,398 crores. Coal India Ltd. (CIL) has now 8

subsidiaries viz. Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL),

Eastern Coalfields Limited (ECL), Western Coalfields Limited (WCL), South Eastern Coalfields

Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL) and

Central Mine Planning and Design Institute Limited (CMPDIL).One of the major problem

confronted by the coal companies is strike which can be remove through healthy IR practices.

TABLE 1: STRIKES AND BANDHS DETAILS OF CIL

2005-2006 2006-07 2007-08 2008-09 2009-10 2010-

11

2011-12

No. of

strikes

5+1* 6+1* 22** 3+3* Nil 2 +2* 1+1*

Mon days

Lost

176898 127703 23823 196707 Nil 246899 192383

Production

Lost (in

tones)

193670 193423 95477 239983 Nil 510291 8,10,542

2• * IS =Industrial Strike ** BB = Bangla Band-06 2006-07 2007-08 2008-09 2009-10 2011-12 Up

(Source: Government of India Annual Report 2011-2012, Ministry of Coal ,website: http://coal.nic.in,p.62)

INTERPRETATION

In this table we can see that if the number of strike is NIL, the Mandays lost is also NIL and

hence production lost is also NIL. But in contrast we can see that in all the years except 2009-

2010 is followed by industrial strike and band and hence that year is suffered with Mandays lost

and also loss in production in tonnes. Thus it is quite clear that industrial relation effect the

production of the company.

THE INDUSTRIAL RELATIONS IN SCCL: The Singareni Collieries Company Limited is a

Government of Andhra Pradesh Enterprise in which Government of Andhra Pradesh and

Government of India hold equity capital shared in the ratio of 51:49 respectively. As per

Tripartite agreement The Industrial Relations Scenario in SCCL for the year 2011-12 (upto

December, 2011) recorded 03 (three) Strikes. Out of these, two strikes were in connection with

the ongoing agitation demanding separate Telengana State.

TABLE 2: DETAILS OF STRIKES, MANDAYS LOST & PRODUCTION LOST IN

SCCL

http://coal.nic.in,p.62/

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S.NO Year No. of Strikes Mandays lost Production lost

(in tonnes)

1 2002-03 35 16,30,798 6,47,426

2 2003-04 15 1,02,942 1,21,647

3 2004-05 14 91,818 57,499

4 2005-06 11 2,40,403 1,10,189

5 2006-07 03 5,587 9,872

6 2007-08 NIL Nil Nil

7 2008-09 04 23,065 19,072

8 2009-10 02 1,430 4,893

9 2010-11 02 1,68,760 4,22,984

10 2011-2012 9(up

to Dec., ’11)

03 16,27,057 40,11,091

(Source: Government of India Annual Report 2011-2012, Ministry of Coal ,website: http://coal.nic.in,p.69)

INTERPRETATION

In 2007-08, the number of strikes is Nil and hence the Mandays lost and the production lost both

is Nil. Instead we can see that there is strikes in all the years and consequently it faced Mandays

lost and Production lost in tonnes.

THE INDUSTRIAL RELATIONS IN CCL: Industrial relations constitute one of the most

delicate and complex problems of the present day industrial enterprises. Central coalfield limited

is not an exception to that. It has been a challenging task for the management of CCL to maintain

harmonious industrial relations in its collieries and other establishment .The external forces

backed with political overtones not only create law and order problems but also cause work

stoppage, obstruction and many other problem in the various collieries and establishment of CCL

.Such situation pose immense industrial relation problem before the company.

TABLE 3. POSITION OF INDUSTRIAL DISPUTES IN CCL AS ON 31.3.2012

S.No Details Number of cases

1 Labor and industrial disputes pending before

different courts, authorities and industrial tribunals

668

2 Disputes added during the year 2011-12 (up

to 31.3.2012)

249

3 No of disputes disposed off 86

4 Total cases remain pending 831

5 Cases of compassionate appointments under Para 9.3.0 to

dependents

602

Source : ( self complied from Annual Report of C.C.L , p. 23 )

INTERPRETATION

At the beginning of the years 2011-12, 668 Cases relating to labor and industrial disputes were

pending before different courts, authorities and industrial tribunals. While 249 cases of labor and

industrial disputes were added, 86 cases were disposed off during the year. Thus 831 cases in


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total remained pending on 31.03.2012.With a view to maintaining harmonious industrial relation

as well as to serve the society as a responsible Corporate citizen, C.C.L has approved a total of

602 cases of compassionate appointments under Para 9.3.0 to dependents during 2011-12. Apart

from this, 13 nos. of employees were selected to the post of Mining Sirdar.

STATEMENT OF THE PROBLEM

Myers Charles (1985) conducted a study on the scene of Industrial Relation in public sector

undertaking has not been wholesome on account of several reasons. It is facing serious problems

which are constraints in its smooth functioning. One of the most important problems is that the

approach in utilizing human resources and in dealing with labour problems is still characterized

by authoritarianism and paternalism. The relationship that exists between the employers and

employees has unfortunately not been developed on a scientific basis. S.D. Punekar,(1952) found

that there are many defects in the industrial relation system in India and among them the main

defects is the lack of co-operation at the lowest level .i.e. between an individual employer and his

employees. Secondly, the employer’s and employer’s organization have also not developed

equally. The employer’s have organized themselves into powerful bodies having certain

advantages over the workers. On the other hand, workers are poor and they come from different

cultural backgrounds and are led by politicians, who have conflicting ideologies. Worker’s

association i.e. trade union in India has not reached such a position to contribute effectively to

the development of harmonious relation in the industrial sphere. N.F. Dufty, (1964) found that

“Industrial democracy, which is claimed to be an effective instrument in establishing and

maintaining harmonious industrial relation in increasing production, has proved to be a farce and

even the industrial organization run by the public sector have failed to achieve a successful

implementation of this new industrial institution”. Monga (1980) studied that, “one of the most

potent reasons responsible for doleful state of industrial relation perhaps is the pseudo-perception

of self by employer, that is, they consider themselves superior to common man, for they

formulate policies, execute decisions, guide and control activities and the work place is theirs,

the material is their, the machinery is their, the product are their so consequently is the risk of

losing all these. S.D. Punkar, (1969) found that “the weakness of industrial relation lies in the

lack of uniformity and inadequacy of labour legislation”. Multiplicity of unions and lack of close

contact between trade union leaders pose additional problems to the harmonious relationship

between employers and employees. Thus we may say that a loop hole is present in the industrial

relation which is needed to be checked.

REVIEW OF LITERATURE

A numbers of research work have been done by eminent persons in the coal Industry and

industrial relations. George, (1984) believes through his study in Mahanadi coalfields Ltd that

Industrial relation has a great impact not only in the productivity of the company but has a

significant impact on social and economic condition of the workers. Gajre,(1986) found that

there must be a provision of continuous personnel research which keeps the management

equipped with the recent development and trends which are essential to take sound decisions

without any further delays as regards to personnel matters . Chattoraj, (1991) did his work on the

topic “Human Resource Management - A case study of Central Coalfield Limited in Ranchi .He

has also thrown light on the importance of Industrial relation in Human Resource Management.

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Shankaraiah,(1991) has also studied the various aspect of industrial relation factors which affect

the higher productivity system in Singareni Colleries Company Ltd. Masthan, (1993) has

revealed that there is a negative influence of political leaders on trade unions which are working

in the industry. Trade union leaders forget their true aims and indulge in politics, thus it affect

the productivity of the organisation. Anantapura. Kumari, (1993) has found that most grievances

seriously disturb the employees and effect their morale, productivity and willingness to

cooperate with the organization, so there must be an involvement of trade union to intervene in

the procedure to handle the problems of aggrieved employees . Singh,(1995) found in his study

that voluntary organizations of workers in coal mining industry of Bihar can successfully

promote, maintain and improve the condition of employment through collective action. They can

put up a united resistance against the exploitation of the employer. Prasad, (2001) in their study

of Andhra Pradesh state found that in running any PSU efficiently the management has look into

the various welfare aspect of its employees .Jacob, (2002) has also studied that industrial relation

is a important area of practice in which there is a integration of people into the work situation in

a way that motivates them to work together to enhance productively, cooperatively and with

economic ,psychological and social satisfaction. Thalavai ,(2003) has concluded in his study that

participatory management of industrial relation ensure effective consultation and develop the

awareness of the problems among the workers. Singh, (2004) reports that mining operation in

Korba Coalfield give rise to significant level of pollution in the atmosphere which affect the

quality of the life in the mining area .Hence he suggested that there is a urgent need of air quality

monitoring stations with a particulars standards to be followed. Mandal, (2009) has focussed

light on alarming agenda of the occupational health situation in India .He found that severe death

and disability is causing due to the threats which are identified in the working environment and a

sign of poor Industrial relation. Dotson, Edward, (1971) has done a research on “Conflict within

the house of labour: A case of the relation between labour and union and their office employees.

D.Bhattacherjee, (1999) has found significant aspect of Industrial Relation in Cement Companies

through his work “Industrial Relation in associated cement companies: A case study of Sindri

unit” in B.H.U ,Vanarasi. Snigdharani.

SIGNIFICANCE OF THE STUDY

Industrial relations has become one of the most delicate and complex problems of modern

industrial society. This is because of the fact that level of education among workers has

improved which has led them more conscious of their rights. With growing wages, their standard

of living has changed and now, they view the management from different perspective. Even a

slight change in the policy of the management may invite labor problem and the situation may

become volatile .In fact, Industrial relation has become a very fragile issues which is needed to

be handled careful. Industrial progress is impossible without cooperation of labors and

harmonious relationships. Therefore, it is in the interest of all to create and maintain good

relations between employees and employers.

OBJECTIVES OF THE STUDY

1. To know the problem of industrial relation in public sector in India

2. To study the history, evolution and growth of industrial relation in public sector.

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3. To suggest the measure for smooth functioning of IR in PSU

RESEARCH METHODOLOGY

Available secondary data is extensively used for the study. Different news articles, books and

magazines were used .The required data for the present study has been collected from different

websites also.

CONCEPT OF INDUSTRIAL RELATION

According to Casselman (1960) the term industrial relation refer to industry and industry means

“any productive activity in which an individual is engaged” and ‘relation’ means “the relations

that exist in the industry between the employer and his workmen”. The Labour Dictionary

defines IR as the relations between employer and employees in industry”. The Encyclopaedia

Britannica (1961) explain that IR has been extended to denote the relations of the state with the

employers, workers and their organizations. The subject, therefore, includes individual relations

and joint consultation between employers and workers at their place of work; collective relations

between employers and their organizations and trade unions; and the part played by the state in

regulating these relations.” Singh,V.B (1968) has define it as a “a set of functional

interdependence involving historical, economic , social, psychological, demographic,

technological, occupational, political and legal variables. According to Kapoor (1968) describes

the concept of industrial relations as developing and dynamic concept and does not limit itself

nearly to the complex of relations between the union and management but also refer to the

general verb of relationship normally obtaining between employees- a web much more complex

than the simple concept of labour capital conflict.” To quote Yoder(1970), “IR describes the

relationship between managements and employees or among employees and their organizations

that characterize or grow out of employment”. Professor Clegg(1970) has defines Industrial

relations in the broadest terms as encompassing the “rules governing the employment, together

with the ways in which the rules are made and changed and their interpretation and

administration”.

NATURE OF INDUSTRIAL RELATIONS

Industrial relations are concerned with the organization and practice of multi-pronged

relationship between the workers and the union in an industrial enterprise. Such relationships

may be either in organized form or unorganized plants. Industrial relation do not function in a

vacuum but multi-dimensional in nature and are conditioned with three determinants (i)

Institutional factors (ii) Economic factors (iii) Technological Factors.

1.Under institutional factors are included items such as state policy, labor laws, voluntary codes,

collective agreements, laborers’ unions and employers’ organization, social institution like the

community, caste, joint family, creed, system of beliefs, etc, attitudes of work, systems of power

status, relative nearness to the centers of power; motivation and influence and industrial

relations.

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2.Under economic factors are included economic organization (socialist, capitalist, communist,

individual ownership, company ownership, government ownership) power of labor and

employers, the nature and composition of the labor force and the sources of supply and demand

in the labor market.

3.Under technological factors come the techniques of production, modernization and

rationalization schemes, capital structures etc.

DOMINANT ASPECT OF INDUSTRIAL RELATION

The main aspects of Industrial Relations are as follows –

i. Labour Relations, i.e. relations between union and management.

ii. Employer-employees relations, i.e. relations between management and employees.

iii. Group relations, i.e. relations between various groups of workmen.

iv. Community or Public relations, i.e. relations between industry and society.

v. Promotions and development of healthy labour-managements relations.

vi. Maintenance of industrial peace and avoidance of industrial strife

vii. Development of true industrial democracy.

HISTORY OF INDUSTRIAL RELATION

Industrial relations have its roots in the industrial revolution which created the modern

employment relationship by spawning free labor markets and large-scale industrial organizations

with thousands of wage workers. As society wrestled with these massive economic and social

changes, labor problems arose. Low wages, long working hours, monotonous and dangerous

work, and abusive supervisory practices led to high employee turnover, violent strikes, and the

threat of social instability. Intellectually, industrial relations was formed at the end of the 19th

century as a middle ground between classical economics and Marxism, with Sidney

Webb and Beatrice Webb’s Industrial Democracy (1897) being the key intellectual work.

Institutionally, industrial relations were founded by John R. Commons when he created the first

academic industrial relations program at the University of Wisconsin in 1920. Early financial

support for the field came from John D. Rockefeller, Jr. who supported progressive labor-

management relations in the aftermath of the bloody strike at a Rockefeller-owned coal mine in

Colorado. In Britain, another progressive industrialist, Montague Burton, endowed chairs in

industrial relations at Leeds, Cardiff and Cambridge in 1930, and the discipline was formalized

in the 1950s with the formation of the Oxford School by Allan Flanders and Hugh Clegg.

Industrial relations were formed with a strong problem-solving orientation that rejected both the

classical economists’ laissez faire solutions to labor problems and the Marxist solution of class

revolution. It is this approach that underlies the New Deal legislation in the United States, such

as the National Labor Relations Act and the Fair Labor Standards Act.

http://en.wikipedia.org/wiki/Industrial_revolution

http://en.wikipedia.org/wiki/Strike_action

http://en.wikipedia.org/wiki/Sidney_Webb

http://en.wikipedia.org/wiki/Sidney_Webb

http://en.wikipedia.org/wiki/Beatrice_Webb

http://en.wikipedia.org/wiki/John_R._Commons

http://en.wikipedia.org/wiki/John_D._Rockefeller,_Jr.

http://en.wikipedia.org/wiki/Montague_Burton

http://en.wikipedia.org/wiki/New_Deal

http://en.wikipedia.org/wiki/National_Labor_Relations_Act

http://en.wikipedia.org/wiki/Fair_Labor_Standards_Act

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DETERMINING FACTORS OF INDUSTRIAL RELATIONS

Baljit (1970) observe that the development of industrial relations has not been the result of any

single factor or cause, but has been determined by the conditions existing on the eve of the

Industrial Revolution in Western Europe, and the social, economic and political situations

obtaining in different countries. “From the earliest days, the changes that took place did not

follow a uniform pattern in every country but reflected such economic and social forces as had,

for a long time, shaped the principles and practices of industrial relations in Western European

countries succinctly summarizes these event: “From the earliest phases of industrialization, when

workers, formerly working with their own tools entered power driven factories.” To the

breakdowns arising out of the industrial conflicts of a later day and then to industrial peace, and

hence to the human relations approach to raise productivity in an era of full employment in

which the threat of a sack was no longer real, and finally to industrial democracy based on labour

partnership not only for a share in profits but also in managerial decisions- this has been a long

journey indeed.

Good industrial relations depend on a great variety of factors. Some of the more obvious ones are

listed below:

1. HISTORY OF INDUSTRIAL RELATIONS: No enterprise can escape its good and bad

history of industrial relations. A good history is marked by harmonious relationship between

management and workers. A bad history by contrast is characterized by militant strikes and

lockouts. Both types of history have a tendency to perpetuate themselves. Once militancy is

established as a mode of operations there is a tendency for militancy to continue. Or once

harmonious relationship is established there is a tendency for harmony to continue.

2. ECONOMIC SATISFACTION OF WORKERS: Psychologists recognize that human needs

have a certain priority. Need number one is the basic survival need. Much of men conducted are

dominated by this need. Man works because he wants to survive. This is all the more for

underdeveloped countries where workers are still living under subsistence conditions. Hence

economic satisfaction of workers is another important prerequisite for good industrial relations.

3. SOCIAL AND PSYCHOLOGICAL SATISFACTION: Identifying the social and

psychological urges of workers is a very important step in the direction of building good

industrial relations. A man does not live by bread alone. He has several other needs besides his

physical needs which should also be given due attention by the employer. An organization is a

joint venture involving a climate of human and social relationships wherein each participant feels

that he is fulfilling his needs and contributing to the needs of others. This supportive climate

requires economic rewards as well as social and psychological rewards such as workers’

participation in management, job enrichment, suggestion schemes, re-dressal of grievances etc.

4. OFF-THE-JOB CONDITIONS: An employer employs a whole person rather than certain

separate characteristics. A person’s traits are all part of one system making up a whole man. His

home life is not separable from his work life and his emotional condition is not separate from his

physical condition. Hence for good industrial relations it is not enough that the worker’s factory

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life alone should be taken care of his off-the-job conditions should also be improved to make the

industrial relations better.

5. ENLIGHTENED TRADE UNIONS: The most important condition necessary for good

industrial relations is a strong and enlightened labour movement which may help to promote the

status of labour without harming the interests of management, Unions should talk of employee

contribution and responsibility. Unions should exhort workers to produce more, persuade

management to pay more, mobilize public opinion on vital labour issues and help Government to

enact progressive labour laws.

6. NEGOTIATING SKILLS AND ATTITUDES OF MANAGEMENT AND WORKERS:

Both management and workers’ representation in the area of industrial relations come from a

great variety of backgrounds in terms of training, education, experience and attitudes. These

varying backgrounds play a major role in shaping the character of industrial relations. Generally

speaking, well-trained and experienced negotiators who are motivated by a desire for industrial

peace create a bargaining atmosphere conducive to the writing of a just and equitable collective

agreement.

7. PUBLIC POLICY AND LEGISLATION: When government regulates employee relations,

it becomes a third major force determining industrial relations the first two being the employer

and the union. Human behaviour is then further complicated as all three forces interact in a

single employee relation situation. Nonetheless, government in all countries intervenes in

management – union relationship by enforcing labour laws and by insisting that the goals of

whole society shall take precedence over those of either of the parties.

8. BETTER EDUCATION: with rising skills and education workers’ expectations in respect of

rewards increase. It is a common knowledge that the industrial worker in India is generally

illiterate and is misled by outside trade union leaders who have their own axe to grind. Better

workers’ education can be a solution to this problem. This alone can provide worker with a

proper sense of responsibility, which they owe to the organization in particular, and to the

community in general.

GROWTH OF INDUSTRIAL RELATION IN PUBLIC SECTOR

The entry of public sector in the economic sphere is post-independence development. Prior to

1947, public sector investment was limited to the railways, posts and telegraphs department, the

ordnance factories, and a few State-managed factories like salt manufacturing, etc. the

philosophy and programme of public sector undertakings are incorporated in the Industrial

Policy Resolutions of 1984 and 1956. The Industrial Policy Resolution of 1984 declared that “a

dynamic national policy must be directed to a continuous increase in production by all possible

means, side by side with measures to secure its equitable distribution. The problem of State

participation in industry and the condition in which private enterprise should be allowed to

operate must be judged in this context”. (20). consequently, expansion in public sector began

after this period. The Industrial Policy Resolution of 1956 stated that “The adoption of the

socialist pattern of society as the national objective as well as the need for planned development

requires that all industries of basic and strategic importance or in the nature of public utility

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services should be in the public sector”. (21).According to R.C Dutta, (1974) after Independence,

the public sector has become an integral and definite part under the leadership of our first Prime

Minister Jawaharlal Nehru, The Industrial Policy Resolution first in 1948 and later in 1956

defined this position and the successive five year plans, specially from the second plan onwards,

sought to implement the policy Resolution by outlining programmes of public sector

development and clarifying, where necessary, the plan objectives. The speech delivered by Mrs.

Indira Gandhi, (1966)state that the Industrial Policy Resolution of 1977 announced by the Union

Industries Minister, Mr. George Fernandes also given emphasis on Public Sector. Mrs Indira

Gandhi has narrated the importance of public sector in her own words, “We advocate public

sector for three reasons to gain control of the commending heights of the economy, to promote

critical development in terms of social gain on strategic value rather than primarily on

consideration of profits and to provide commercial surpluses with which to finance further

economic development”. The First Five Year Plan, Planning Commission(1961) different five

year plans have also realized the importance of industrial relation for the rapid growth of

industrialization and made suitable recommendations. The First Five Year Plan expressed the

importance of Industrial Peace as a positive step for economic progress, the need for legal

machinery for the settlement of Industrial disputes and also essential for the closest class

collaboration”. The Second Five Year Plan, Planning Commission (1956) emphasized

“establishment of Industrial Relation through mutual agreement of self –imposed obligation like

Code of Discipline, Code of conduct, Workers participation in management, settlement of wage

disputes through wage boards and training of workers under the Worker’s Education Scheme”.

The Fifth Five Year Plan, Plan contended that, “Industrial relation in India could be developed

when a fair and just approach would be taken during negotiations between workers and

management”. The Sixth Five Year Plan has given that, “A good industrial relation should be

developed by developing a sense of partnership of belonging and participation has received

common acceptance among workers”. The seventh Five Year Plan has given emphasis on

congenial Industrial relation for bringing growth with stability. On the public sector, the new

industrial policy (1991) envisaged that their role would have pre-eminence in only right turn

Industries, the sick units would be referred to the Board of Industries and the Financial

Reconstruction (BIFR). A social security mechanism would be created to protect the interest of

the workers likely to be affected by the rehabilitation package and a part of public sector equity

would be offered to mutual funds and general public. A greater role is given to private sector.

CAUSES OF POOR INDUSTRIAL RELATIONS

The following are the main causes of poor industrial relation

1. ECONOMIC CAUSES: Often poor wages and poor working conditions are the main causes

for unhealthy relations between management and labour. Unauthorised deductions from

wages, lack of fringe benefits, absence of promotion opportunities, faulty incentive schemes

are other economic causes. Other causes for Industrial conflicts are inadequate infrastructure,

worn-out plant and machinery, poor layout, unsatisfactory maintenance etc.

2. ORGANISATIONAL CAUSES: Faulty communications system, unfair practices, non-

recognition of trade unions and labour laws are also some other causes of poor relations in

industry.

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3. SOCIAL CAUSES: Uninteresting nature of work is the main social cause of poor Industrial

relations. Dissatisfaction with job and personal life culminates into Industrial conflicts.

4. PSYCHOLOGICAL CAUSES: Lack of job security, non-recognition of merit and

performance, poor interpersonal relations are the psychological reasons for unsatisfactory

employer-employee relations.

5. POLITICAL CAUSES: Multiple unions, inter-union rivalry weaken the trade unions.

Defective trade unions system prevailing in the country has been one of the most responsible

causes for Industrial disputes in the country.

EFFECTS OF POOR INDUSTRIAL RELATION

Poor Industrial Relation produces highly disquieting effects on the economic life of the country.

1. MULTIPLIER EFFECTS: Modern industry and for that matter modern economy are

interdependent. Hence although the direct loss caused due to industrial conflict in any one plant

may not be very great, the total loss caused due to its multipliers effect on the total economy is

always very great.

2. FALL IN NORMAL TEMPO: Poor Industrial Relations adversely affect the normal tempo

of work so that work far below the optimum level. Costs build up. Absenteeism and labour

turnover increase. Plants discipline breaks down and both the quality and quality of production

suffer.

3. RESISTANCE OF CHANGE: Dynamic industrial situation calls for change more or less

continuously. Methods have to be improved. Economics have to be introduced. New products

have to be designed, produced and put in the market

4. FRUSTRATION AND SOCIAL COST: Every man comes to the work place not only to

earn a living. He wants to satisfy his social and egoistic needs also. When he finds difficulty in

satisfying these needs he feels frustrated. Poor Industrial Relations take a heavy toll in terms of

human frustration. They reduce cordiality and aggravate social tension.

FINDINGS

Industrial relations are of great importance in industrial life. These relations have great bearing

on the economic, social and political spheres of our society. If in an organization relations

between labour and management are cordial, there will be industrial peace and interests of both

the parties will be automatically safeguarded. However, organizations where industrial relations

are strained, the organizations have to face lot of problems. The atmosphere of such

organizations is always surcharged with industrial unrest leading either to strikes or lockouts. It

is found out that in CIL and subsidiaries there are well established bi-partite forums consisting of

the representatives of the Management and the 5 Central Trade Unions for interaction and

redressal of issues related to the wages & service conditions, employment, safety, grievances and

welfare etc.

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The following joint bipartite forums are operating at different levels :

1. JBCCI at CIL

2. Apex Jt. Consultative Committee

3. Safety Board/ Safety Committee

4. Welfare Board/ Welfare Committee

5. Joint Consultative Committee’s

6. Industrial Relation Meetings (Structural meetings with union).

It is also found out that in SCCL the management has laid down clear Industrial Relations Policy

providing mechanism to discuss the issues, with Recognized Union at Company and Area level

and with Representative Status Union at Area level. By introducing reforms, harmonious

Industrial Relations are being maintained through systematic co-operation between the labour

and the Management and helps in reducing costs, increasing the production and productivity,

improving quality of work and maintaining Industrial Peace & improvement in overall quality of

life.

In C.C.L Ranchi, efforts have been made to maintain a peaceful and harmonious Industrial

Relations scenario throughout the year 2011-12.The sincere effort and approach were used in

handling and resolving the workmen’s disputes and grievances. There were regular bipartite

meetings held with the representatives of different trade unions at unit, Area and Corporate level.

Industrial Relation Machinery (IRM) consisting of JCC at company level, ACC at Area level and

UCC at Unit level have sorted out major collective bargaining issues through discussions and

this has created a lot of goodwill amongst the workers.

Thus, the Organizations which ignore the importance of industrial relations face high cost of

production. Adverse effect on efficiency, low-grade production, negligence in the execution of

work, absenteeism among the workers, high rate of labour turn-over etc. are the evils that result

from poor industrial relations. Lack of cordiality in industrial relations not only adversely affects

the interests of the labourers and employers but also cause harm to different sections of society.

They are faced with lot of difficulties and problems. Since the government has enacted a large

number of legislations, which provide a protective shield to the workers, the subject of

‘Industrial Relation’ is becoming increasingly technical day –by-day.

MEASURES FOR IMPROVING INDUSTRIAL RELATIONS

Good and harmonious industrial relations create a sense of belongingness and group-

cohesiveness among workers and also a congenial environment resulting in less industrial unrest,

grievances and disputes. This will ensure optimum use of resources, both human and materials,

eliminating all types of wastage. Good industrial relations, built-in mutual cooperation and

common agreed approach motivate one to contribute one’s best, result in higher productivity and

hence income, give more job satisfaction and help improve the morale of the workers.

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The following measures can be adopted for improving industrial relations in an organization.

1. SOUND PERSONNEL POLICIES: Policies and procedures concerning the compensation,

transfer and promotion, etc. of employees should be fair and transparent. All policies and

rules relating to Industrial relations should be fair and transparent to everybody in the

enterprise and to the union leaders.

2. PARTICIPATIVE MANAGEMENT: Employees should associate workers and unions in

the formulation and implementation of HR policies and practices.

3. RESPONSIBLE UNIONS: A strong trade union is an asset to the employer. Trade unions

should adopt a responsible rather than political approach to industrial relations.

4. EMPLOYEE WELFARE: Employers should recognise the need for the welfare of

workers. They must ensure reasonable wages, satisfactory working conditions, and other

necessary facilities for labour. Management should have a genuine concern for the welfare

and betterment of the working class.

5. GRIEVANCE PROCEDURE: A well-established and properly administered system

committed to the timely and satisfactory redressal of employee’s grievances can be very

helpful in improving Industrial relations. A suggestion scheme will help to satisfy the

creative urge of the workers.

6. CONSTRUCTIVE ATTITUDE: Both management and trade unions should adopt positive

attitude towards each other. Management must recognize unions as the spokesmen of the

workers’ grievances and as custodians of their interests. The employer should accept workers

as equal partners in a joint endeavour for good industrial relations.

7. Creating a proper communication channel to avoid grievances and misunderstandings among

employees

8. Education and training should be imparted to the employees

CONCLUSION

Public sector has come to assume the commanding heights of the economy. It was monopoly in

railways, communication and air transport; virtual monopoly in coal mining, power generation

and petroleum industry etc. Public sector has played a significant role in the industrialization of

the country. Industrial relations has become one of the most delicate and complex problems of

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

harmonious relationships. India being a mixed economy, both public sector and private sectors

exist. The government has shifted its emphasis from time to time due to change in economic

policy of the big powers. Since industrial harmony now-a –days, is considered as a pre-condition

for sustained economic development and growth of any type of economy, efforts have been

made in all countries of the world to eliminate or minimize conflicts between labour and

management. Healthy industrial relation in an enterprise generates attitudes which stabilize

democratic institutions. In fact, industrial relations play a very crucial role in establishing and

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maintaining industrial democracy. However, the techniques of establishing industrial democracy

differ from industry to industry and organization to organization in view of difference of

objectives.

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PROBLEM AND PROSPECT OF INDUSTRIAL RELATION IN COAL