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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