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7/31/2019 Session 1 - IRLL -Concept
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INDUSTRIAL RELATIONS
&LABOR LAWS
BY:Asst Prof.
NISHANTHI.S
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MODULE - I
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DEFINING IR
Industrial relations encompasses a set ofphenomena, both inside and outside theworkplace, concerned with determining
and regulating employment relationship
Relationship between management andemployees or among employees and their
organization that characterize and growout of employment.
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Chapter 1
Theories and Concepts Used to Analyse Industrial Relations
Approaches Used to Define Industrial Relations (1)
(1) Institutional-baseddefinitions:
industrial relations are the sum of institutional processes thatestablish and administer the rules regulating workplace relations
(2) Social Psychology-baseddefinitions:
industrial relations are the sum of social psychological interactionsbetween individuals
(3) Class-baseddefinitions:
industrial relations are the sum of institutions, interactions andprocesses that are a product of wider social and economicinfluences, in particular the class divisions of contemporarycapitalism
These lecture slides are copyright to Eruditions Publishing and may not be used or reproduced without written permission of the publisher, except in thoseinstitutions and courses where Petzall, Abbott, Timo, Australian Industrial Relations in Asian Context2E is a prescribed student textbook.
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Approaches Used to Define Industrial Relations (2)
Ddefinitions that seek to include all matters contained in the first threedefinitions within other terms:
(4)Human Resource Management:
contracts of employment (involving trade unions, worker collectives,labour courts and government agencies), as well as management of
conflict arising out of the personal interactions of individuals in theworkplace, are part of labour management functions ( i.e. recruitment,selection, training, development, performance management, and so on)
(5)Employment Relations(or Employee Relations):
contracts of employment (involving trade unions, worker collectives,labour courts and government agencies), as well as the managementof conflict arising out of the personal interactions of individuals in theworkplace, are part of workplace relations, together with the normalfunctions of Human Resource Management.
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OBJECTIVES OF IR
To enhance economic status of worker
To avoid industrial conflicts and their consequences
To extend and maintain industrial democracy
To provide an opportunity to the worker to have a say in the
management decision making To regulate production by minimizing conflicts
To provide forum to the workers to solve their problems throughmutual negotiations and consultations with management
To encourage and develop trade union in order to develop workers
collective strength
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NATURE OF IR
IR arise out of employeremployee relations
IR is a web of rules: formed by the interaction of Govt, industry & labor IR is multi dimensional: influenced by complex set of institutional.
economic & technological factors
IR is dynamic and changing: keep pace with employee expectations,trade unions, employer associations and other economic and social
institutions of society IR is characterized by forces of conflict and compromise. Individual
differences and disagreements resolved through constructive means.
Govt influences and shapes IR: with its laws, rules, agreements throughexecutive and judicial machinery
Scope of IR is very wide as it covers grievances, disciplinary measuresethics, standing orders, collective bargaining, participatory schemes anddispute settlement mechanism etc
Interactive and consultative in nature: in resolving conflict,controversiesand disputes between labor and management.
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SCOPE OF IR
Management Union relationship
Employer Employee relationship
Relationship amongst various groups of employees
Effect of extraneous factors like state, socio-political- economicfactors on workplace relationships
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Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Humanresource
management
Systems
Evolution
Revolution
Marxist
Control ofthe labourprocess
Input Conversion Output
Conflict(differences)
Institutionsand
processes
Regulation(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrialrelations
Labour market Comparative
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UNITARY APPROACH
IR is grounded in mutual cooperation, individual treatment, teamwork and shared goals.
Work place conflict is seen as temporary aberration, resulting frompoor management
Employees who do not mix well with organization culture
Unions cooperate with the management
Managements right to manage is accepted because there is no wethey feeling
Underlying assumption is that everyone benefits when the focus ison common interest and promotion of harmony
Based on reactive strategy. Direct negotiation with employees Participation of Govt, tribunals and unions are not sought or are
seen as being necessary for achieving harmonious employeerelation
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PLURALISM(CONFLICT APPROACH )
Pluralism is belief in the existence of more than one ruling principle, giving
rise to a conflict of interests.
The pluralist approach to IR accepts conflict between management andworkers as inevitable but containable through various institutionalarrangements ( like collective bargaining, conciliation and arbitration etc)and is in fact considered essential for innovation and growth.
It perceives organizations as coalitions of competing interests , where themanagements role is to mediate among the different interest groups.
It perceives trade unions as legitimate representative of employee interests
It also perceives stability in IR as the product of concessions andcompromises between management and unions.
Employees join unions to protect their interests and influence decisionmaking by the management. Unions thus balance the power betweenmanagement and employees. In pluralistic approach a strong unions is notonly desirable but necessary
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MARXIST APPROACH Marxists like pluralists also regard conflict as inevitable but see it as a
product of capitalistic society where as pluralist believe that the conflict isinevitable in all organizations
For Marxists IR has wider meaning. For them conflict arises not because ofrift between management and workers but because of the division in thesociety between those who own resources and those who have only laborto offer.
Marxist approach thus focuses on the type of society in which anorganization functions.
Industrial conflict is thus equated with political and social unrest
Trade Unions are seen both as labor reaction to exploitation by capitalists,as-well-as a weapon to bring about a revolutionary social change. Wage
related disputes as secondary For them all strikes are political and they regard state intervention ( via
legislations and creation of Industrial Tribunals ) as supportingmanagements interests, rather than ensuring a balance between the
competing groups.
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Systems approach
IR - a social sub-system within the econ. & politicalsystems
Components
actors contexts (influences & constraints on decisions & action
e.g. market, technology, demography, industrial structure)
ideology - beliefs affecting actor views - shared or inconflict
rules - regulatory elements i.e. the terms & nature of theemployment relationship developed by IR processes
OTHER APPROACHES OF INDUSTRIAL
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OTHER APPROACHES OF INDUSTRIALRELATIONS
( DIFFERENT SCHOOLS OF THOUGHT )
PSYCHOLOGICAL APPROACH
Differences in the perceptions of labor and management wrt factors influencing theirrelations i.e. wages. Benefits, services and working conditions etc
Dissatisfaction compels workers to turn aggressive and resort to strike, lockouts andgherao etc.
SOCIOLOGICAL APPROACH
Sociological factors such as value system, customs and traditions etyc affect the relationsbetween labor and management
HUMAN RELATIONS APPROACH
Human behavior is influenced by feelings, sentiments and attitudes. As per this approachhumans are motivated by variety of social and psychological factors
like economic and non-economic awards to be used.
GIRI APPROACH
Collective bargaining and joint negotiations be used to settle disputes between labor andmanagement. Outside interference to be avoided.
GANDHIAN APPROACH
worker's right to strike but cautioned that this right be exercised in just cause and in apeaceful and non-violent manner for minimum wages etc like satyagrah- Non violent non-cooperation
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ROLES OF WORKERS,
MANAGEMENT & GOVERNMENT
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PARTIES TO IR
EMPLOYEES
EMPLOYEEASSOCIATIONS
GOVERNMENT
EMPLOYERS
EMPLOYERASSOCIATION
COURTS&
TRIBUNALS
EMPLOYER-EMPLOYEERELATIONS
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ROLE OF WORKERSWORKERS and their ORGANIZATIONS( Trade Unions or Associations )
Trade unions have a protecting role of safeguarding workers interests,
Regulating function of ensuring implementation of statutes / Acts
Ensuring non-violation of workers rights
Trade Union Act provides Status and Authority for the power vested in them
This power is used for negotiating Wage Interests, better benefits and
service conditions, concessions, more amenities and welfare schemes
Structure of Workers organization or Trade unions differs from country to
country
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ROLE OF MANAGEMENTAn organization is represented through officials designated in the
organization structure for coordination of activities relating to:
Administering employee benefits
Regulating terms and condition of employment
Providing welfare and social security benefits
Coordination is done through graded hierarchical and formalcommunication channels of orders and directives
Style and manner in which employer organizations get work andregulate the terms and conditions of employment affects theindustrial relations of the unit.
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ROLE OF GOVERNMENT
Govt or state machinery regulates the relationship between workers
organizations and employers organizations.
It does it through :
- Statutes and legislations,
- The judiciary- labor courts industrial tribunals
- An executive machinery- that lays down rules, procedures and
gives awards and monitors them
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Employment Relations
Dunlops model
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FACTORS AFFECTING EMPLOYEE RELATIONSINTERNAL FACTORS:
Attitudes of management to employees and unions
Attitudes of employees to management and unions
Attitudes of unions to unions to management and employees
Present and likely future strength of unions
Effective and agreed procedures for discussing and resolving grievances or handlingdisputes within the company
Inter union rivalries in case of more than one union
Effectiveness and capability of managers and supervisors in resolving grievances andhandling disputes.
Company's strategy wrt expansion, diversification, contraction , stabilization, turnaroundand stagnation etc
Quality of work life ( QWL), growth and developmental opportunities
Degree of Autonomy and Empowerment given to employees
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FACTORS AFFECTING EMPLOYEE RELATIONS
EXTERNAL FACTORS:
Militancy of unions- nationally or locally
Authority and effectiveness of the employers family
The extend to which bargaining is carried out at national, local orplant level
The effectiveness of any national or local procedure agreementsthat may exist
Employment situation nationally or locally
Legal framework within which IR exists
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SOCIAL SECURITY( IMPACT ON EMPLOYEE RELATIONS )
Social security is one of the key components of labor welfare
Labor welfare refers to all such services, amenities and facilities tothe employees that improve their working conditions as-well-as theirstandard of living
Social security benefits provided by an organizations should protectnot only their employees but also their family members including
financial security and health care etc Social security envisages that the employee shall be protected
against all types of social risks that may cause undue hardship tothem in fulfilling their basic needs.
Accidents, job losses, retirement, sickness, death while on duty-
these are realities of working life and leave a person and hisdependents vulnerable
Social security is an attempt by the employer and the state ioinstitute measures that mitigate such social risks
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MAJOR LEGISLATIONS
India being a welfare state has taken up itself the responsibility ofextending various benefits of social security and social assistance to
its citizens. Although the constitution of india is yet to recognize social security
as a fundamental right, it does require state to promote the welfareof the people by providing social, economic and political justice
Constitution requires companies to make effective provisions for
making effective provisions for securing right to work, to educateand public assistance in case of unemployment, old age, sicknessand disablement. Securing just and humane conditions of work.Raise level of nutrition and standard of living, improvement of publichealth etc
A social security division has been set up under the ministrybof laborand employment.
In the context of labor , social security aims at reducing risks against
loss of earnings or earning capacity due to old age,illness or work-related injuries.
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Social security to the workers is provided through 5 major Acts:
1. The Employees State Insurance act, 1948
2. Employees provident Fund and Miscellaneous provisions Act
3. The Workers Compensation Act
4. The Maternity Benefit Act
5. The payment of Gratuity Act
In addition there are large number of welfare funds also for somespecific segments
Major thrust of social security relating to labor is on:
a) Provisions relating to medical facilities, compensation benefitsand insurance coverage incase if accidents, incapacity, illness
etc..
b) Provisions relating to provident fund and gratuity
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MODULE II
TRADE UNIONS
&INDUSTRIAL DISPUTES
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What is a Trade Union?
Definition: An organization of workers oremployees formed mainly to
_Negotiate with the employers on various
employment related issues Improve the terms and conditions at their workplace
Enhance their status in society
In most countries, there are laws governing theformation, membership and administration oftrade unions.
ORIGIN & GROWTH OF TRADE UNION
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ORIGIN & GROWTH OF TRADE UNIONMOVEMENT
Industrialization brought about new economic and social order in societies.TU emerged as a result of industrialization in new social order
First workers union in India under the leadership of Mr Lokhande wasdeveloped in 1890
Beginning of labor movement in the modern sense started after theoutbreak of World War I
Economic. Political and social conditions influenced the growth of trade
union movement in India. Establishment of ILO helped the formation of TUs in the country
In 1920 AITUC( All India Trade Union Congress) was formed- the 1st AllIndia trade union
World War II brought splits in AITUC. Efforts of Indian National Congress
resulted in the formation of INTUC( Indian National Trade Union Congress) Socialists separated from AITUC formed HMS( Hind Mazdoor Sabha) in
1948
Some other unions were also formed. They were BMS ( Bhartiya MajdoorSangh) in1955, HMP( Hind Majdoor Panchayat) in 1965, CITU( Centre ofIndian Trade Union ) in 1970
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PRINCIPLE OF TRADE UNION
1. UNITY: Unity is strength
2. EQUALITY: Workers must not bediscriminated wrt caste, creed, sex etc.
Each worker should get equal pay for equalwork
3. SECURITY: Security of their employmentand their families must be safeguarded
Obj ti f T d
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Objectives of a TradeUnion
1. Collective bargaining
Represent members to negotiate withemployers, for better wages and conditions
of employment
2. Safeguard jobs
Protect jobs of members
3. Cooperate with employers For the benefits of members, resolve
disputes in a mutually acceptable manner
Obj ti f T d
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Objectives of a TradeUnion
1. Political activities
- Support pro-union political parties
2. Social activities- Support members with recreation
facilities and benefits for
unemployment, illness, retirement,death
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Types of Unions
1. Craft union
Same craft or occupation
2. General union For unskilled workers
3. Staff union
Non-manual workers
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Why Workers Join Unions
1. Higher wages and better workingconditions
Collective bargaining with employer
2. Job security
More secured with collective agreement
3. Social need Meet co-workers from other departments orcompanies
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OBJECTIVES/IMPORTANCE OF TRADE UNIONS
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OBJECTIVES/IMPORTANCE OF TRADE UNIONS
Wages & salariesPolicy matter but differences in implementation, so comes the role of trade union
Working conditions
safeguarding workers health: Lighting & ventilation, sanitation, rest rooms, safetyequipments ( hazards free atmosphere , drinking water, refreshments, working hours, leave& rest, holidays with pay, job satisfaction, social security benefits and other welfaremeasures
DisciplineProtect workers from victimization by management- transfers, suspensions, dismissals etc
Personal policies
Fighting against improper implementation of personnel policies wrtrecruitment, selection, promotion, transfer, training etc..
WelfareSolving difficulties of workers through collective bargaining wrt sanitation, hospitals,quarters, schools, colleges and other basic amenities
Employer- employee relationsBureaucratic attitude and unilateral thinking of mgmt may lead to conflicts
Trade unions go for constant negotiations for industrial democracy and peace.
Negotiating machineryBased on give and take principle, negotiations continue till parties reach an
agreement. Protect interests of workers through collective bargainINg
Safeguarding organizational healthMethods evolved for grievance redressal, techniques adopted to reduce
absenteeism and labor turnover. upgrading skills- attend training courses organized by
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ACTIVITIES OF TRADE UNIONECONOMIC: Improved economic status, shorter working day, improvement in
living and working conditions, better health & safety standards, upgrading
welfare facilities, reducing inequalities- both internally & externally
POLITICAL: Seeking / obtaining political power through political affiliations,lobbying activities to influence the cause of labor and legislations,participating & representing workers on bipartite forums,
developing revolutionary ideologies among workers, protesting againstGovt. decisions
SOCIAL: Initiating & developing workers education system, organizing welfare& recreational facilities, providing monitory and other help during period ofstrike and economic distress, running cooperative welfare schemes andsocieties, hosing needs/ community development, organizing culturalfunctions & social welfare programmes
NATIONAL / INTERNATIONAL LEVEL: Representing workers at the nationallevel on advisory committees, associating with national federations for unity& solidarity, Raising funds in case of national / International calamities ortragedies
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FEATURES OF AN EFFECTIVE TRADE UNION
Internally democratic
Have a strong leadership
Exhibit a responsibility towards their workermembers
Committed to promote industrial peace andharmony
Inclined towards collective bargaining that iscollaborative and not competitrive
Possess financial security
Adaptable to change
I d i l Di d i di id l
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Industrial Dispute and individualdispute
Industrial dispute means any dispute ordifference between employers and employers, orbetween employers and workmen or betweenworkmen and workmen, which is connected with
employment or non-employment or the terms ofemployment .The dispute has to be betweenplurality of workman and employer
Individual workman cannot raise an industrialdispute
I di id l di d d
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Individual dispute deemed asindustrial dispute
1965 amendment to I.D ACT and insertion of 2A.
Where any employer discharges, dismisses,retrenches or otherwise terminates the servicesof an individual workman, any dispute ordifference between that workman and hisemployer.shall be deemed to be anindustrial dispute notwithstanding that no otherworkman nor any union of workmen is a party to
the dispute. This definition is not applicable to disputes short
of termination
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FORMS OF UNREST/DISPUTES
STRIKES: A strike is spontaneous and concerted refusal of work andwithdrawal of labor from production temporarily. It is a collective stoppageof work for pressurizing their employers to accept certain demands.
TYPES OF STRIKES:
SYMPATHETIC STRIKE: To show sympathy with workers in other industries
GENERAL STRIKE: Strike by all or most of the unions in an industry or a regionUNOFFICIAL STRIKE: Strike undertaken without the consent of the unions
SECTIONAL STRIKE: Refusal of a section of a given class of workers to perfor their normalduties
BUMPER STRIKES: to paralyze the industry firm by firm
SIT DOWN /TOOL DOWN/PEN DOWN: Strike when unions plan strike and workers cease toperform but do not leave the place of work:
SLOW DOWN STRIKE: Go-slow tactic, workers do not stop working but dot perform at theirnormal pace
LIGHTNING STRIKE: Workers may goon strike without notice or at very short notice with anelement of surprise
HUNGER STRIKE: To gain sympathy from public and get noticed by employer workers maydecide to forego food for a specified period. Such non-violent protests generally bringmoral pressure on employers
FORMS OF UNREST/DISPUTES
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FORMS OF UNREST/DISPUTESLOCK-OUTS: It is the counterpart of strike.
It is the weapon available with employer to close down the factory till the workersagree to resume work on the conditions laid down by employer.
If it is impossible to meet the demands of workers, employers may decide o go forlock-out
An employer may also pull down the shutters so as to bring psychological pressureon the workers to agree to his conditions or face the closure of unit
GHERAO: Gherao means to surround
Group of workers initiate collective action aimed at preventing members of hemanagement from leaving the office. This can happen outside the premises too
Persons who atre under gherao are not allowed to move for a long time, sometimeeven without food or water
National commission on labor has refused to accept it as a form of industrial protest
PICKETING and BOYCOTT While picketing workers carry/display signs ,banners and placards( In connection with
dispute), prevent others from entering the place of work and persuade others to jointhe strike
Boycott aims at disrupting the normal functioning of an enterprise, Through forceful
and negative behavioral acts, strikers prevent others not to cooperate with employer
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MANAGEMENT ACTION TO COUNTER STRIKES
EMPLOYERS ASSOCIATION: Employers may form their unions to collectively oppose the working class
and put pressure on trade unions
LOCKOUT: It is the counterpart of strike.
An employer may close down the place of employment temporarily. It is
very powerful weapon available with employer to pressurize workers till theyagree to resume work on the conditions laid down by employer.
If it is impossible to meet the demands of workers, employers may decide ogo for lock-out
An employer may also pull down the shutters so as to bring psychologicalpressure on the workers to agree to his conditions or face the closure of unit
TERMINATION: Employer may resort to suspension or disciplinary action leading to
termination of workers on strike. The list of employees so suspended ordismissed may be circulated to the other employer so as to restrict theirchances of getting employment with other employers.
CHANGING ROLE / PUBLIC PERCEPTION
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CHANGING ROLE / PUBLIC PERCEPTIONTRADE UNIONS
Change in the attitude of unions towards management, Industry,
Govt. and economy Unions becoming increasingly matured, responsive and realistic
Gone are the days of frequent strikes, bandhs, gheraoes andviolence
Unions are reconciled to economic reforms. The accent is on
opposing the adverse impact of reforms and not the reforms Discussion among trade union circles is now on issues like
productivity, TQM, Technology, competition, MNCs, exports etc..
Unions aware of the Right Sizing and feel the need for suplus laborfat to be shed
Days when unions were affiliated with political parties are gone by.Today thrust is on de- politicization of unions
Experience of politically free unions is pleasant, reinforcing the beliefthat farther the unions are from politics, more advantageous it is forthem
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Workers association in our country is highly fragmented and theconsequence is multiplicity of unions, which weakens the bargaining
strength of employees. One of the defects of trade union movement in India has been the
phenomenon of outside leadership. The fault of outside leadership lies withtrade Union Act, 1926 itself. The act permitted outside participation to theextent of 50% of the strength of office bearers in a union.
Trade Unions are at cross roads. Their membership is declining, Theirpolitical support is waning, public sympathy is receding, their relevance itselfis at stake
Managements on the other hand are on the offensive. They are able toforce unions to accept terms and conditions. Workers,officers andmanagers are mercilessly terminated in the name of restructuring,
downsizing etc Professionalisation of trade unions movement is another trend witnessed,
they are trying to upgrade their leadership quality. Topics lie IT, strategicplanning, diversity, networking and productivity etc now form inputs intraining programmes organized for union leaders
TRADE UNIONISM IN INDIA TODAY
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TRADE UNIONISM IN INDIA TODAY
Unionization according to industry/region/state
70,000 registered trade unions , many not regisered 9 central unions, all affiliated to political parties
2 % of the union force unionized
PSUs: Industrial level collective bargaining in coal/steel,
enterprize level elsewhere
Private sector: Plant level collective bargaining
Union density according to the size of of industry
Craft unions in Govt transport sector
Unionization in India under recession
Twin battle against Inter Union Competition andassertive management
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MAJOR PROBLEMS FACED BY BTRADEUNIONS IN INDIA
Outside or political leadership Multiplicity of trade unions
Small size of unions
Low membership
Uneven growth
Poor financial position
Low level of knowledge of labor legislation
Fear of victimization
FUTURE ROLE OF TRADE UNIONS
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FUTURE ROLE OF TRADE UNIONS
IN INDIA
TRADE UNION ACT (1926)
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U O C ( 9 6)
It legalizes the formation of trade unions by allowing employees the right toform and organize unions and also strengthen bargaining power of workers
Act aims to provide law for the registration of trade unions and get itregistered under the act
Permits any seven persons to form a union
OBJECTIVES
Lay down conditions governing the registration of trade unions
Defines obligations of trade unions
Prescribe rights and liabilities of a registered trade union
STATUS OF A REGISTERED UNION
It becomes a body corporate
It gets a common seal It can buy and hold movable and immovable property
It can enter into contracts with others
It can sue and be sued in its name
TRADE UNION ACT (1926)
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TRADE UNION ACT (1926)
REGISTRATION:A trade union formed with at least 7 members may apply for registration with following
documents
A copy of the rules of trade union Name, occupation and addresses of members
Name of trade union and address of its office
Office Bearers of the trade unions
In case already in operation- submit statement of accounts/assets and liability statement
OBLIGATIONS:
It should have a name, clearly laid down objective, membership list readily available,purpose for which funds shall be utilized, members to be the actually working persons ,Honorary/temporary office bearers, conditions for benefits/fines, conditions under whichrules shall be amended, manner in which office bearers shall be appointed, safe custody offunds and manner in which trade union shall be dissolved
RIGHTS AND LIABILITIES Section 15 of the Act provides for certain obligations and liabilities of registered unions
It also stipulates the purpose for which funds can be utilized
THE AMALGAMATION OF TRADE UNIONS: Any two or more registered unions may get amalgamated together as one trade union
INDUSTRIAL DISPUTE ACT (
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INDUSTRIAL DISPUTE ACT(1947)Ever expanding complex multi product/project companies with diverse and
conflicting interests of workmen and employers, growing laborconsciousness, resulting in strikes and lockouts, lead to the outcome of
Industrial dispute Act, 1947
Main provisions of the Act are: Settlement machinery
-Provides suitable machinery for investigation, just, equitable and peaceful settlement ofindustrial disputes and aims to provide justice both to employers and workmen
- Collective bargaining, Negotiation
Aims at promoting security, amity and good relations between employer andemployee or between employers and workmen or among workmen
Prevent illegal strikes and lockouts and explains the contingencies when thesecan be lawfully resorted to or when these can be declared illegal or unlawful.
Provide conditions and relief to workmen in the matters of lay-offs,retrenchment, dismissals and victimizationLast in first out in a retrenchment case or specific reasons in case of others
Provides conditions under which an industrial unit can be closed down60 days notice to be given of intention to close down any undertaking
Compensation to workmen in case of closing down
Get the workmen the right of collective bargaining and promote conciliation Lists down unfair labor practices on the part of both parties introduced in 1984
MACHINARY FOE SETTLEMENT OF INDUSTRIAL
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MACHINARY FOE SETTLEMENT OF INDUSTRIALDISPUTES
KEY PROVISIONS OF ID ACT:
COLLECTIVE BARGAINING:It is a technique by which disputes as to conditions of employment are resolved
amicably, by agreement rather than coercion
NEGOTIATION
CONCILIATION AND MEDIATION: It is facilitated negotiation, essential in publicutility services, Binding on parties to the disputes
ARBITRATION:
Voluntary Arbitration: agreement between workman and management, Send copyto the Govt and conciliation officer, publication of agreement
ADJUDICATION
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Compulsory Adjudication LC, IT, NT
Award Sec. 18(3) of ID Act
Publication of award
Judicial review - Art. 226 orArt. 136
Voluntary Arbitration 10-A
Award 18(2) & 18(3)
Judicial review - Art. 226 orArt. 136
Conciliation (if successfulSettlement)
Sec. 18(3) ofThe I D act
Collective BargainingIf successful settlement
Sec. 18(1) of ID Act
Reference by theAppropriate Government
Sec. 10(1)
S. 2-A, 33-A
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Publication of awards
Publication is must
Time duration of 30 days is directory
Award comes in to operation 30 days afterpublication
Tribunal to recall the award
Conditions for Successful
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Conditions for SuccessfulBargaining
1. Freedom of association
Workers and employers are free to form their ownassociations to represent their interests.
2. Stability of union Unions have to be stable for collective bargaining to
be effective union is able to honor the agreement.
3. Recognition of union by employer
Collective bargaining begins after employerrecognizes the union that claims to represent thespecific group of workers.
Conditions for Successful
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Conditions for SuccessfulBargaining
1. Good faith
Both parties must be willing to resolvedifferences to reach an agreement.
2. Mutual respect Relationship affected and process becomes
tense and difficult if any party used unfair
practices such as victimization.3. Supportive legal system
Employment laws to ensure process takes
place in an orderly manner.
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Negotiations
Process depends on these factors:
1. Subject matter to be discussed
2. Persons involved
3. Circumstances under which the discussion isheld.
A Typical Negotiation Process begins
with each party stating its position. As discussion progresses, each party
adjusts its demands to seek a mutually
acceptable agreement.
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Steps in Negotiation
1. Preparation
Each party must know what it wants.
2. Presentation
Each party presents its case.
3. Exchange and compromise
Parties look for possible adjustment orcompromise.
4. Reaching an agreement
Parties sign a written statement on what
have been agreed.
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Ways to Settle Disputes
Impasse: settlement cannot bereached
Impasses may be solved by thesealternatives:
Conciliation
Mediation Arbitration
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Ways to Settle Disputes
Arbitration Third party settles the dispute by making an
independent decision for the two parties.
Some prefer arbitration as the responsibilityfor reaching agreement is made by aneutral party (quite often, appointed by thegovernment e.g. Arbitration Court).
Arbitration gives some people the impressionthat they did not give in to the other party butfought all the way to the Arbitration Court.
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Ways to Settle Disputes
Mediation
Impartial third party helps to reach amutually acceptable agreement.
Mediator makes recommendations forthe two parties to consider.
Final agreement is made by the twoparties themselves.
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