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  • 1. INDUSTRIAL RELATIONDirectorate of Distance Education MBA Paper 4.33 ALAGAPPA UNIVERSITY KARAIKUDI – 630 003 Tamilnadu
  • 2. Dear Learner,Greeting from Alagappa UniversityWe extend a very warm welcome to you as a Student of Distance Education of AlagappaUniversity. We appreciate your interest in enrolling for MBA Programme. TheProgramme content is designed to broaden the business acumen, administrative capacityand sharpen the analytical skill of the student.You are instructed to go through the course materials carefully and thoroughly to havebetter understanding of the subject. You are advised to attend the Personal ContactProgrammes to have better clarity on the subject.At the end of the each unit, the review questions are given to enable you to prepare forExaminations. The Model Question Paper is given at the end of the course material forreference and practice.We wish you all the best in your endeavour for successful completion of the programme. Director Directorate of Distance Education Alagappa University Karaikudi, Tamilnadu.
  • 3. MBA PAPER 4.33 INDUSTRIAL RELATIONS SYLLABUSUNIT 1 Industrial Relations: Concept – Definition – Significance – Objectives – Scope – Approaches – Principles of good industrial relations – Role of State, Employers and the Unions in industrial relation.UNIT 2 Trade Unionism and Industrial Relations: Labour movement – Concepts – Trade union movement – Development of trade unionism in Indian – Functions and problems of trade unions. International Labour Movement – International Confederation of Free Trade Unions (ICFTU) – World Federation of Trade Unions (WFTC) – International Labour Organisations (ILO) – Origin, history, objectives and functions.UNIT 3 Industrial Disputes: Meaning – Causes – Forms – Industrial relations machinery – Joint consultation – Works committee – Conciliations – Court of Enquiry – Voluntary arbitration – Adjudication. Employee Discipline: Definition – Causes of indiscipline – Code of discipline – Disciplinary procedure – Code of conduct. Grievance Handling: Meaning of grievances – Causes of grievances – Guidelines for grievance handling – Grievances redressal procedures.UNIT 4 Worker’s Participation in Management: Meaning – Significance – Forms – Situations in India. Collective Bargaining: Meaning – Significance – Principles – Process – Training methods – Evaluation of training and retraining. Wage Administration and Industrial Relations – Wage policy – Objectives – Wage regulation machinery – Wage Board: Growth and development – Composition and functions – Evaluation of wage bonds.
  • 4. UNIT 5 Employee Communication: Meaning - Significance - Types – Barriers – Methods of overcoming barriers – Principal of effective communication - Employee Education and Training – Concept – features – Aims and objects – Contents – Teaching techniques – Training Schemes.UNIT 6 Employee health, safety and security: Meaning – Significance –Programmes – Employee Counseling: Meaning – Significance – Types and Process –Conflict management: Meaning – Types of conflict episode – management of conflict –Quality circle: Meaning – Objectives – Techniques.REFERNCES 1. Bhagoliwal TN, personal Management and Industrial Relations, Agra Publ. 2. Arun Monappa, Industrial Relations, Tata Mc Graw Hill. 3. Michael V P, HRM and Human Relations, Himalaya. 4. Mamoria and Mamoria, Dynamics of Industrial Relations in India, Himalaya. Course Material prepared by - Dr. SM. Chockalingam Professor and Head Debt. Of Commerce (DDE) Annamalai University, Annamalainagar.
  • 5. CONTENTSUNIT – I 1. Industrial Relations – Introduction 2. Labour And The ConstitutionUNIT – II 3. Trade UnionismUNIT – III 4. Industrial Disputes 5. Grievances Handling 6. Employee DisciplineUNIT – IV 7. Workers’ Participation in Management 8. Collective Bargaining 9. Wage Administration and Industrial RelationsUNIT – V 10. Employee Communication 11. Worker’s Education and TrainingUNIT – VI 12. Industrial Health and Social Security 13. Employee Safety Programme 14. Employee Counseling 15. Conflict Management
  • 6. 16. Quality Circles
  • 7. UNIT – I1. Industrial Relations – Introduction2. Labour and The Constitutions
  • 8. Lesson 1 Industrial Relations – IntroductionIndustrial relations constitute one of the most delicate and complex problems of themodern industrial society. This phenomenon of a new complex industrial set-up isdirectly attributable to the emergence of ‘Industrial Revolution”. The pre-industrialrevolution period was characterized by a simple process of manufacture, small scaleinvestment, local markets and small number of persons employed. All this led to closeproximity between the manager and the managed. Due to personal and direct relationshipbetween the employer and the employee it was easier to secure cooperation of the latter.Any grievance or misunderstanding on the part of either party could be promptlyremoved. Also, there was no interference by the State in the economic activities of thepeople. Under such a set-up industrial relations were simple, direct and personal. Thissituation underwent a marked change with the advent of industrial revolution – size of thebusiness increased needing investment of enormous financial and human resources, thereemerged a new class of professional managers causing divorce between ownership andmanagement, and relations between the employer and the employer became entrangedand gradually antagonistic. This new set-up rendered the old philosophy of industrialrelation irrelevant and gave rise to complex, indirect, and impersonal industrial relations.Industry today is neither viewed as a venture of employers alone nor profit if consideredas its sole objective. It is considered to be a venture based on purposeful cooperationbetween management and labour in the process of production and maximum social goodis regarded as its ultimate end and both management and employees contribute in theirown way towards its success. Similarly, labour today is no more an unorganized mass ofignorant works ready to obey without resentment or protest the arbitrary anddiscretionary dictates of management. The management has to deal with employees todaynto as individuals but also as members of organized social groups who are very muchconscious about their rights and have substantial bargaining strength. Hence, theobjective of evolving and maintaining sound industrial relations is not only to find ourways and means to solve conflicts to resolve differences but also to secure thecooperation among the employees in the conduct of industry.But maintaining smooth industrial relation is not an easy task. Almost all theindustrialized countries of he world fact the problem of establishing and maintaining
  • 9. good management worker relationships in their industries. Each country has sought tofind our solution, depending upon its economic, social and political environment.However, industrial conflict still arises and therefore establishment and maintenance ofsatisfactory industrial relations forms an important plank in the personnel policies ofmodern organization.Meaning In the broad sense, industrial relations cover all such relationships that a businessenterprise maintains with various sections of the society such as workers, state, customersand public who come into its contact. In the narrow sense, it refers to all types of relationships between employer andemployees, trade union and management, works and union and between workers andworkers. It also includes all sorts of relationships at both formal and informal levels in theorganization. The term ‘industrial relations’ has been variously defined. J.T. Dunlop definesindustrial relations as “the complex interrelations among managers, workers and agenciesof the governments”. According to Dale Yoder “industrial relations is the process ofmanagement dealing with one or more unions with a view to negotiate and subsequentlyadminister collective bargaining agreement or labour contract”.In indusial relations, therefore, one seeks to study how people get on together at theirwork, what difficulties arise between them, how their relations including wages andworking conditions etc., are regulated. Industrial relations, thus, include both ‘industrialrelations’ and ‘collective relations’ as well as the role of the state in regulating theserelations. Such a relationship is therefore complex and multidimensional resting oneconomic, social, psychological, ethical, occupational, political and legal levels. Thereare mainly two set of factors that determine the state of industrial relations – whethergood or poor in any country. The first set of factors, described as ‘institutional factors’include type of labour legislation, policy of state relating to labour and industry, extentand stage of development of trade unions and employers’ organizations and the type ofsocial institutions. The other set of factors, described as ‘economic factors’ include thenature of economic organization capitalist, socialist technology, the sources of demandand supply in the labour market, the nature and composition of labour force etc.Distinction between human relations and industrial relationsThe term ‘human relations’ lays stress upon the processes of inter-personal relationshipsamong individuals as well as the behavior of individuals as members of groups. The term‘industrial relations’ is used widely in industrial organizations and refers to the relationsbetween the employers and workers in an organization, at any specified time.
  • 10. Thus, while problem of human relations are personal in character and are related to thebehavior of individuals where moral and social element predominate, the term ‘industrialrelations’ is comprehensive covering human relations and the relations between theemployers and workers in an organization as well as matters regulated by law or byspecific collective agreement arrived at between trade unions and the management.However, the concept of ‘industrial relations’ has undergone a considerable change sincethe objective of evolving sound and healthy industrial relations today is not only to findout ways and means to solve conflicts or resolve difference but also t secure unreservedcooperation and goodwill to divert their interest and energies toward constructivechannel. The problems of industrial relations are therefore, essentially problems that maybe solved effectively only by developing in conflicting social groups of an industrialundertaking, a sense of mutual confidence, dependence and respect and at the same timeencouraging them to come closer to each other for removing misunderstanding if any, ina peaceful atmosphere and fostering industrial pursuits for mutual benefits.Significance of Industrial RelationsMaintenance of harmonious industrials relations is on vital importance for the survivaland growth of the industrials enterprise. Good industrial relations result in increasedefficiency and hence prosperity, reduced turnover and other tangible benefits to theorganization. The significance of industrial relations can be summarized as below: 1. It establishes industrial democracy: Industrial relations means settling employees problems through collective bargaining, mutual cooperation and mutual agreement amongst the parties i.e., management and employees’ unions. This helps in establishing industrial democracy in the organization which motivates them to contribute their best to the growth and prosperity of the organization. 2. It contributes to economic growth and development: Good industrial relations lead to increased efficiency and hence higher productivity and income. This will result in economic development of the economy. 3. It improves morale of he work force: 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. 4. It ensures optimum use of scare resources: 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.
  • 11. 5. It discourages unfair practices on the part of both management and unions: Industrial relations involve setting up a 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. 6. It prompts enactment of sound labour legislation: 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. 7. It facilitates change: Good industrial relations help in improvement of cooperation, team work, performance and productivity and hence in taking full advantages of modern inventions, innovations and other scientific and technological advances. It helps the work force to adjust themselves to change easily and quicklyCauses of Poor Industrial RelationsPerhaps the main cause or source of poor industrial relations resulting in inefficiency andlabour unrest is mental laziness on the part of both management and labour. Managementis not sufficiently concerned to ascertain the causes of inefficiency and unrest followingthe laissez-faire policy, until it is faced with strikes and more serious unrest. Even withregard to methods of work, management does not bother to devise the best method butleaves it mainly to the subordinates to work it out for themselves. Contempt on the part ofthe employers towards the workers is another major cause. However, the following arebriefly the causes of poor industrial relations: 1. Mental inertia on the part of management and labour; 2. An intolerant attitude of contempt of contempt towards the workers on the part of management. 3. Inadequate fixation of wage or wage structure; 4. Unhealthy working conditions; 5. Indiscipline; 6. Lack of human relations skill on the part of supervisors and other managers; 7. Desire on the part of the workers for higher bonus or DA and the corresponding desire of the employers to give as little as possible; 8. Inappropriate introduction of automation without providing the right climate;
  • 12. 9. Unduly heavy workloads; 10. Inadequate welfare facilities; 11. Dispute on sharing the gains of productivity; 12. Unfair labour practices, like victimization and undue dismissal; 13. Retrenchment, dismissals and lock-outs on the part of management and strikes on the part of the workers; 14. Inter-union rivalries; and 15. General economic and political environment, such as rising prices, strikes by others, and general indiscipline having their effect on the employees’ attitudes.Objectives of Industrial Relations 1. To bring better understanding and cooperation between employers and workers. 2. To establish a proper channel of communication between workers and management. 3. To ensure constructive contribution of trade unions. 4. To avoid industrial conflicts and to maintain harmonious relations. 5. To safeguard the interest of workers and the management. 6. To work in the direction of establishing and maintaining industrial democracy. 7. To ensure workers’ participation in decision-making. 8. To increase the morale and discipline of workers. 9. To ensure better working conditions, living conditions and reasonable wages. 10. To develop employees to adapt themselves for technological, social and economic changes. 11. To make positive contributions for the economic development of the country.ScopeThe scope of industrial relations includes all aspects of relationships such as bringingcordial and healthy labour management relations, creating industrial peace anddeveloping industrial democracy.
  • 13. The cordial and healthy labour management relations could be brought in- • by safeguarding the interest of the workers; • by fixing reasonable wages; • by providing good working conditions; • by providing other social security measures; • by maintaining healthy trade unions; • by collective bargaining.The industrial peace could be attained – • by setting industrial disputes through mutual understanding and agreement; • by evolving various legal measure and setting up various machineries such as Works Committee, Boards of Conciliation, Labour Courts etc.The industrial democracy could be achieved – • by allowing workers to take part in management; and • by recognition of human rights.Approaches to Industrial RelationsIndustrial conflicts are the results of several socio-economic, psychological and politicalfactors. Various lines of thoughts have been expressed and approaches used to explain hiscomplex phenomenon. One observer has stated, “An economist tries to interpretindustrial conflict in terms of impersonal markets forces and laws of supply demand. To apolitician, industrial conflict is a war of different ideologies – perhaps a class-war. To apsychologist, industrial conflict means the conflicting interests, aspirations, goals,motives and perceptions of different groups of individuals, operating within and reactingto a given socio-economic and political environment”.Psychological approachAccording to psychologists, problems of industrial relations have their origin in theperceptions of the management, unions and rank and file workers. These perceptions maybe the perceptions of persons, of situations or of issues involved in the conflict. The
  • 14. perceptions of situations and issues differ because the same position may appear entirelydifferent to different parties. The perceptions of unions and of the management of thesame issues may be widely different and, hence, clashes and may arise between the twoparties. Other factors also influence perception and may bring about clashes. The reasons of strained industrial relations between the employers and the employeescan be understood by studying differences in the perception of issues, situations andpersons between the management groups and labour groups.The organizational behavior of inter-groups of management and workers is of crucialimportance in the pattern of industrial relations. The group-dynamics between the twoconflicting groups in industrial relations tend to shape the behavioural pattern.Sociological approachIndustry is a social world in miniature. The management goals, workers’ attitudes,perception of change in industry, are all, in turn, decided by broad social factors like theculture of the institutions, customs, structural changes, status-symbols, rationality,acceptance or resistance to change, tolerance etc. Industry is, thus inseparable from thesociety in which it functions. Through the main function of an industry is economic, itssocial consequences are also important such as urbanization, social mobility, housing andtransport problem in industrial areas, disintegration of family structure, stress and strain,etc. As industries develop, a new industrial-cum-social pattern emerges, which providesgeneral new relationships, institutions and behavioural pattern and new techniques ofhandling human resources. These do influence the development of industrial relations.Human relations approachHuman resources are made up of living human beings. They want freedom of speech, ofthought of expression, of movement, etc. When employers treat them as inanimateobjects, encroach on their expectations, throat-cuts, conflicts and tensions arise. In factmajor problems in industrial relations arise out of a tension which is created because ofthe employer’s pressures and workers’ reactions, protests and resistance to thesepressures through protective mechanisms in the form of workers’ organization,associations and trade unions.Through tension is more direct in work place; gradually it extends to the whole industryand sometimes affects the entire economy of the country. Therefore, the managementmust realize that efforts are made to set right the situation. Services of specialists inBehavioural Sciences (namely, psychologists, industrial engineers, human relationsexpert and personnel managers) are used to deal with such related problems. Assistance is
  • 15. also taken from economists, anthropologists, psychiatrists, pedagogists, tec. In resolvingconflicts, understanding of human behavior – both individual and groups – is a pre-requisite for the employers, the union leaders and the government – more so for themanagement. Conflicts cannot be resolved unless the management must learn and knowwhat the basic what the basic needs of men are and how they can be motivated to workeffectively.It has now been increasingly recognized that much can be gained by the managers andthe worker, if they understand and apply the techniques of human relations approaches toindustrial relations. The workers are likely to attain greater job satisfaction, developgreater involvement in their work and achieve a measure of identification of theirobjectives with the objectives of the organization; the manager, on their part, woulddevelop greater insight and effectiveness in their work.Principle of Good Industrial Relations • The willingness and ability of management and trade unions to deal with the problems freely, independently and with responsibility. • Recognition of collective bargaining. • Desirability of associations of workers and managements with the Government while formulating and implementing policies relating to general economic and social measures affecting industrial relations. • Fair redressal of employee grievances by the management • Providing satisfactory working conditions and payment of fair wage. • Introducing a suitable system of employees education and training. • Developing proper communication system between management and employees. • To ensure better working conditions, living conditions and reasonable wages. • To develop employees to adapt themselves for technological, social and economic changes. • To make positive contributions for the economic development of the country.Role of state in industrial relationsIn recent years the State has played an important role in regulating industrial relations butthe extent of its involvement in the process is determined by the level of social and
  • 16. economic development while the mode of intervention gets patterned in conformity withthe political system obtaining in the country and the social and cultural traditions of itspeople. The degree of State intervention is also determined by the stage of economicdevelop. For example, in a developing economy like ours, work-stoppages to settleclaims have more serious consequences than in a developed economy and similarly, afree market economy may leave the parties free to settle their relations through strikesand lockouts but in other systems varying degrees of State participation is required forbuilding up sound industrial relations.In India, the role played by the State is an important feature in the field of industrialrelations and State intervention in this area has assumed a more direct form. The State hasenacted procedural as well as substantive laws to regulate industrial relations in thecountry.Role of management in industrial relationsThe management have a significant role to play in maintaining smooth industrialrelations. For a positive improvement in their relations with employees and maintainingsound human relations in the organization, the management must treat employees withdignity and respect. Employees should be given ‘say’ in the affairs of the organizationgenerally and wherever possible, in the decision-making process as well. A participativeand permissive altitude on the part of management tends to give an employee a feelingthat he is an important member of the organization – a feeling that encourages a spirit ofcooperativeness and dedication to work. • Management must make a genuine efforts to provide congenial work environment. • They must make the employees feel that they are genuinely interested in their personal development. To this end, adequate opportunities for appropriate programmes of 18training and development should be provided. • Managements must delegate authority to their employees commensurate with responsibility. • They must evolve well conceived and scientific wage and salary plan so that the employees may receive just compensation for their efforts. They must devise, develop and implement a proper incentive plan for personnel at all levels in the organization. • There must be a well-planned communication system in the organization to pass on information and to get feed back from the employees.
  • 17. • Managements must pay personal attention to the problems of their employees irrespective of the fact whether they arise out of job environment or they are of personal nature. • They must evolve, establish and utilize appropriate machineries for speedy redressal of employees grievances. • Manageemnts must provide an enlightened leadership to the people in the organization.An environment of mutual respect, confidence, goodwill and understanding on the part ofboth management and employees in the exercise of their rights and performance of theirduties should prevail for maintaining good industrial relationsRole of trade unions in maintaining industrial relationsThe trade unions have a crucial role to play in maintaining smooth industrial relations. Itis true that the unions have to protect and safeguard the interests of the workers throughcollective bargaining. But at the same time they have equal responsibility to see that theorganization do not suffer on account of their direct actions such as strikes, even fortrivial reasons. They must be able to understand and appreciate the problems ofmanagements and must adopt a policy of ‘give and take’ while bargaining with themanagements. Trade unions must understand that both management and workers dependon each other and any sort of problem on either side will do harm to both sides. Besidespublic are also affected, particularly when the institutions involved are public utilityorganizations.The labour management synergyPlanning for healthy Industrial Relations is one of the most delicate and complexproblems of present day industrial society, representing diverse ‘points of flexion’ and‘bases of industrial edifice’. How people get on together at their work, what difficultiesarise between them, how their relations, including wages and working conditions, areregulated and what organizations are set up for the protection of different interests- theseare some of the major issues of industrial relations system.The Triangle of Industrial Relations System represents multi-pronged relationshipbetween management, trade unions and workers.Industrial Relations System’s responsibility implies: (a) Inter-vertex Relationship(amongst management, trade unions and workers inter se) and, (b) Inter-societalobligations.
  • 18. Management relationship vis-à-vis trade unions is based on increasing realization thattrade unionism has to come to stay as a necessary concomitant of the contemporarycapitalist them; and, that trade unions movement is the expression of the workers’collective determination to recover emotional security lost through Industrial revolution.Management relationship vis-à-vis workers revolves round the themes like attitudetowards work; industrial democracy; urge for greater degree of control over worksituation; search for an environment, where worker can take roots and where he belongsto; and, identification of the functions, where he sees the purpose of his work and feelsimportant in achieving it.Management approach towards itself presupposes management as a social task. Since lifeis based on conflict, the management task in the long-run is directed towards harmonizingthis conflict inside and outside the enterprise. The art and science of management ishighly sophisticated with theories, concepts and models of management.Trade union relationship vis-à-vis management is conditioned by accepting the fact thatmanagement presents an indissoluble partnership amongst interest, power andresponsibility in the societal context.Trade Union relationship vis-à-vis workers implied that it should appreciate workers’aspirations and expectations that trade union is essentially a protective, friendly society,meant primarily to manage and handle their economic, social and cultural problems.Often aspirations of workers are at variance with those of leaders in the trade unionmovement. Trade union approach towards itself is based on the premise that tradeunionism is a management system. Trade Unions as organizations generally viewedthemselves as an ‘end’ rather than as a ‘means’ centering on ‘cause’ and not on ‘man’,which, in turn, creates an attitude of convalescence and the cause of unconsciousness.There is often a tendency in trade unionism to promote ‘mass movement’ instead of an’organisation’, and its membership is often based on ‘calamity features’ rather than on‘positive factors’. In a changing situation like India, ideological postures are of limitedrelevance in the realm of trade unionism, which has to undertake responsibilities in adynamic situation, influenced by external and internal environment and focusing on:
  • 19. WORKERS TRADE UNION • The primary purpose • Organisation • Adjustment and adaptation • Attitudes • Representation • Economic responsibility • DisciplineThere is an imperative need of strengthening the democracy and freedom within the tradeunions, encourage workers’ participation in the process of decision-making anddeveloping new perspectives in the personnel problems of the trade unionism.Management and trade unions both have to be aware of the changing value system, theneeds of a ‘new breed’ of employee, the ever-increasing generational gap in attitudestowards money, emphasis on quality of life, public’s lower frustration tolerance,changing attitudes towards work and leisure, education’s impact on peoples’ self-image,rejection of authoritarianism and dogmatism, greater stress on pluralism andindividualism, and search of identity, self-esteem and self-realization. The ideology basedon rationality; moral absolutes leading to situational ethics; and, economic efficiencyresulting in social justice; are the new bases and postulates for shaping the futureindustrial relations system in the Indian context.
  • 20. Planning Industrial Relations: Tasks AheadIn future organization systems, employees would consider themselves to be partners inmanagement and expect their talents to be utilized to the fullest. With increased self-esteem and self-image, young graduates will resist authority and would challengeprevailing management prerogatives. Tomorrow’s management control centers, advancedOR models will aid future managers in the use of resources, they would need to balancehumanistic values with the flow of advancing science and technology. According toVictor Fuchs, “In future, the large corporation is likely to be over-shadowed by thehospital, university, research institutes, government offices and professionalorganizations that are the hallmarks of a service economy’. Following the concept of‘corporate citizenship’, the ‘responsible corporation’ has to develop as a socialinstitution, where people share success and failure, create ideas, interact and work fordevelopment and realization of the individual’s potential as human being.Since Industrial Relations is a function of three variables – management, trade unions andworkers, a workable approach towards planning for healthy labour-management relationscan be developed by: • Defining the acceptable boundaries of employer/ employee action; • Granting the freedom to act within these boundaries; and • Monitoring the resulting developments.For achieving the objectives of improved management – trade union the following line foaction is suggested: • A realistic attitude of managers towards employees and vice versa for humanizing industrial relations. • Proper organization climate and extension of area of Industrial Relations, • Institutionalism of industrial relations and effective forums for interaction between management and trade unions at plant, industry and national levels. • A comprehensive system of rules and discipline, • The maintenance of an efficient system of communication, • An objective follow-up pattern for industrial relations system.
  • 21. • Respect for public opinion and democratic values • An integrated industrial relations policy incorporating rational wage policy; trade union and democratic rights, sanctity of ballot, collective bargaining and tripartite negotiations.Whatever, labour laws may lay down, it is the approach of the management and unionwhich matters and unless both are enlightened, industrial harmony is not possible. In factboth managements and workers need a change in their philosophy and attitudes towardseach other. In all fairness, both management and workers should not look uponthemselves as two separate and distinct segments of an organization, but on the contrary,realize that both are partners in an enterprise working for the success of the organizationfor their mutual benefit and interest. It is becoming increasingly obvious that industrialpeace amongst all participants in the industrial relations systems requires truth asfoundation, justice as its rule, love as its driving force, and liberty as its atmosphere.REVIEW QUESTIONS: 1. Bring out the significance of industrial relations. 2. Discuss different approaches to industrial relations. 3. What are the principles of good industrial relations? 4. Explain the role of the Government, Employer and the Trade Union in maintaining sooth industrial relations. 5. Suggest suitable strategies for maintaining cordial industrial relations.
  • 22. Lesson 2 Labour and the ConstitutionConstitutional FrameworkThe Constitution of India has guaranteed some Fundamental Rights to the citizens andhas also laid down certain Directive Principles of State Policy for the achievement of asocial order based on Justice, Liberty, Equality and Fraternity, The Constitution amplyprovides for the upliftment of labour by guaranteeing certain fundamental rights to all.Article 14 lays down that the State shall not deny to any person equality before the law orthe equal protection of laws. There shall be equality of opportunity to all citizens inmatters relating to employment or appointment or appointment to any office under theState. People have the right to form associations or unions. Traffic in human beings andforced labour and the employment of children in factories or mines or other hazardouswork in prohibited. The Directive Principles, though not enforceable by any court, arenevertheless fundamental in the governance of the country, and it shall be the duty of theState to apply those principles in making laws from time to time.Labour is in the Concurrent List on which both the Centre as well as the States have thepower to make laws, Article 254 has been enacted to clarify the position. Normally, aslaid down in clause(I), in case of any repugnancy between the Union and the Statelegislation, the legislation of the Union shall prevail. To this, there is one exceptionembodied under clause(II) of Art. 354, where, a law enacted by a State with respect to thematter enumerated in the Concurrent List, reserved for the consideration enumerated inthe Concurrent List, reserved for the consideration of the President, has received hisassent, such law shall prevail in the State, and provisions of that law repugnant to theprovision of an earlier law made by the Parliament or any existing law with respect tothat matter have priority over the Central legislation.Articles 39, 41, 42 and 43 have a special relevance in the field of industrial legislationand adjudication. In fact, they are the sub-stratum of industrial jurisprudence.Article 39 accentuates the basic philosophy of idealistic socialism which is enshrined inthe Preamble of the Constitution and provides a motivation force to the DirectivePrinciples by laying down that the State shall direct its policy towards equal pay for bothmen and women.Article 41 lays down that the State shall, within the limits of its economic capacity anddevelopment, make effective provision for securing the right to work, to education and to
  • 23. public assistance in cases of unemployment, old age, sickness and disablement, and inother cases of undeserved want.Social security is guaranteed in our Constitution under Arts. 39, 41 and 43. TheEmployees’ State Insurance Act, 1948, is a pioneering piece of legislation in the field ofsocial insurance. The benefits provided to the employees under the scheme are: (1)sickness benefit and extended sickness benefit; (2) maternity benefit; (3) disablementbenefit; (4) dependants’ benefit; (5) funeral benefit; and (6) medical benefit. All thebenefits are provided in cash except the medial which is in kind.The administration of the scheme is entrusted to an autonomous corporation called theEmployees’ State Insurance Corporation. The Employees’ Provident Funds andMiscellaneous Provisions Act, 1952 and the Maternity Benefit Act, 1961, are also socialsecurity measures to help fulfill the objectives of Directive Principles of our Constitution. • The Provident Fund Scheme aimed at providing substantial security and timely monetary assistance to industrial employees and their families. This scheme has provided protection to employees and their dependants in case of old age, disablement, early death of the bread-winner and in some other contingencies. • A scheme of Family Pension-cum-Life Assurance was introduced with a view t providing ling-term recurring financial benefit to the families in the event of the members’ premature death while in service. The Employees’ Provident Fund Organization, is in charge of three important schemes, viz., the Employees’ Provident Funds Scheme, the Employees’ Family Pension Scheme and the Employees’ Deposit-linked Insurance Scheme. • The Maternity Benefit Scheme is primarily designed to provide full wages and security of employment. They enable a female employee to get maternity leave with full wages at least for 6 weeks before and 6 weeks after confinement. • The object of the Payment of Gratuity Act, 1972 is to provide a scheme for the payment of gratuity to employees employed in factories, mines, oil fields, plantations, ports, railways, shops and establishments. All employees who have rendered a minimum of years’ continuous service in the above mentioned establishments are entitled to gratuity at the time of superannuation, retirement, resignation, death or if they leave their job due to accident, disablement. Under the Act., employers are required to pay gratuity at the rate of 15 days’ wages for every completed year of service subject to a maximum of 20 months’ wages.Article 42 enjoins the State government to make provision for securing just and humaneconditions of work and for maternity relief.
  • 24. Substantial steps have been taken to fulfill the object of Art.42 of the Constitution. TheFactories Act., 1948, provides for health, safety, welfare, employment of young personsand women, hours of work for adults and children, holidays, leave with wages etc.Labour welfare funds have been set up to provide welfare facilities to the workersemployed in different mines such a coal, mica, iron ore and limestone. The ContractLabour (Regulation and Abolition) Act of 1970, a piece of social legislation, provides forthe abolition of contract labour wherever possible and to regulate the conditions ofcontract labour in establishments or employments where the abolition of contract laboursystem is not considered feasible for the time being. The Act provides for licensing ofcontractors and registration of establishments by the employers employing contractlabour.Article 43 makes it obligatory for the State to secure by suitable legislation or economicorganization or in any other manner to all workers, agricultural, industrial, or otherwise,work, a living wage, condition of work ensuring a decent standard of life and fullenjoyment of leisure and social and cultural opportunities.To ensure this, the Minimum Wages Act, 1948, was enacted. It provides for the fixationof minimum rates of wages by the Central or State governments within a specified periodfor workers employed in certain scheduled employments. These rates vary from State,area to area and from employments to employment. The minimum wage in any eventmust be paid irrespective of the capacity of the industry to pay. Living wage is the higherlevel of wage and of the industry to pay and naturally, it would include all amenitieswhich a citizen living in a modern civilized society is entitled to. Fair wage is somethingabove the minimum wage which may roughly be said to approximate to the need-basedminimum wage. It is a mean between the living wage and the minimum wage.Article 43A makes it obligatory on the State to take steps by suitable legislation orotherwise to secure the participation of workers in the management of undertakings andindustrial establishments. As observed by the National Commission on Labour in itsreport, “in accepting the Directive Principles, the country is committed morally andethically to see that the governance of the country is carried on with a view toimplementing these Directive Principles in course of time” (Chapter VI, p.48).Social JusticeIn industrial adjudication, the concept of social justice has been given wide acceptance.Different views have been expressed by different authorities about the exact meaning andscope of this concept. According to the Supreme Court, it was a vague and indeterminateexpression and that no definition could be laid down which would cover all situations.According to Justice Holmes, social justice is “an inarticulate major premise which ispersonal and individual to every court and every judge”.
  • 25. In a democratic society, administration of justice is based on the Rule of Law, which, asconceived by modern jurists, is dynamic and includes within its imports social justice. Ithas been given a place of pride in our Constitution. The philosophy of social justice hasnow become an integral part of industrial jurisprudence. The philosophy of social justicehas now become an integral part of industrial jurisprudence. The concept of social justiceis a very important variable in the function of industrial relations. In a welfare State it isnecessary to apply the general principles of social and economics justice to remove theimbalances in the political, economic and social life of the people.Review Questions 1. State the relevant provisions of Indian Constitution for labour welfare. 2. State the relevant legal enactments relating to labour.
  • 26. UNIT – II 3. Trade Unionism
  • 27. LESSON 3 Trade UnionismTrade unionism is a worldwide movement and the highly strategic position occupied bytrade unions in modern industrial society has been widely recognized. In most cases,employees’ associations or trade unions seem to have emerged as ‘protest movements’reaching against the working relationships and condition created by industrialization.When industrialization begins, organization members have to be generally recruited fromthe ranks of former agricultural labour and artisans who have to adapt themselves to thechanged conditions of industrial employment. They have to be provided with new typesof economic security – wages / salaries, benefits and services etc. Often they may have tolearn to live together in newly developing industrial townships and cities and also toadopt themselves to new working conditions and new pattern of work-rules imposingdiscipline and setting pace of work to which they are unfamiliar. Their old habits andtraditions do not suffice to guide them in their daily work-behaviour and in consequencethey may be disorganized and frustrated. Thus the growth of modern industrialorganizations involving the employment of a large number of workers / employees innew type of working conditions and environment makes them helpless in bargainingindividually for their terms of employment. As observed by Frank Tannenbaum, “Theemergence of trade unionism lies in the Industrial Revolution which disrupted the olderway of life and created a new society forged by the shop, the factory, the mine and theindustry.Meaning of Trade Union, Organized Labour and LabourMovementThe term ‘Trade Union’ has been defined in various ways because of wide differences inthe use of this term in different countries. Of all the definitions of a trade union, theclassic definition of the Webbs has been most popular. According to them a trade union is“a continuous association of wage-earners for the purpose of maintaining or improvingthe condition of their working lives”. Since this definition does not cover all theextensions of trade union activities in modern times, a trade union with somemodification may be redefined as “a continuous association of wage-earners or salariedemployees for maintaining the conditions of their working lives and ensuring them abetter and healthier status in industry as well as in the society”.The term ‘Organized Labour’ is used to distinguish workers/ employees who aremembers of trade unions or employee association from those who are unorganized, i.e.who are not members of any union.
  • 28. The term ‘Labour Movement’ is generally applied to all the various types of long-termassociation of workers / employees that the formed in industrialized or industrializingeconomies. According to Encyclopedia of Social Sciences, labour movement isconceived as “all of the organized activity of wage-earners to better their own condition seither immediately or in the more or less distant future”. According to G.D.H. code,“Labour movement implies, in some degree, a community of outlook. Thus the labourmovement in a country emerges from a common need to serve a common interest. Itseeks to develop amongst employees a spirit of combination, class-consciousness andsolidarity of interest and generates a consciousness for self-respect and createsorganizations for their self protection, safeguarding of their common interest andbetterment of their economic and social conditions. A trade union is thus an essentialbasis of labour movement. The labour movement without trade unions cannot exist.Trade unions are the principal institutions in which the employees learn the lesson of self-reliance and solidarity.Difference between Labour M ovement and Trade UnionMovementThere is lot of confusion on the use of the terms ‘labour movement’ and ‘trade unionmovement’. Often the two are used interchangeably. However, there is a slight distinctionbetween the two. The ‘labour movement’ is ‘for the worker’; whereas the ‘trade unionmovement’ is ‘by the workers’. This distinction needs to be noticed all the more becausetill the workers organized themselves into trade unions, efforts were made mainly by thesocial reformers to improve the working and living conditions of labour. These effortsshould be taken as forming a part of the labour movement and not that of the trade unionmovement. The labour movement thus conveys a higher degree of consciousnessamongst workers than conveyed by mere trade union movement.The Trade Union Movement in IndiaThe trade union movement’s origin in a sense can be traced back to very early date to thetime when villages had panchayats and guilds for settling disputes between the mastersand their members. The panchayats prescribed the code of conduct which was rigidlyobserved by its members. Its non-observance resulted in expulsion from the community.Trade unions, as understood today, however originated in the first quarter of the presentcentury, although the groundwork was laid during the last quarter of the 19 th century. InMumbai, as early as in 1975, a movement was started by reformers under the leadershipof Sorabji Shapurju. They protested against the appealing conditions of the factoryworkers and appealed for introduction of adequate legislation to prevent them. The creditof laying the foundation of the organized labour movement in India is at time accorded toMr. N.M. Lokhande, a factory worker himself. An agitation was organized by him a
  • 29. 19884 in Mumbai. This resulted in certain amenities being extended to the mill workerswhich led to the organization of the Mumbai Milhands Association.Actually a real organized labour movement in India started at eh end of the First WorldWar. Rising prices, without a corresponding increase in wages, despite the employersmaking huge profits, led to a new awakening. Many trade unions were formed throughoutIndia. There were a number of strikes during 1919 to 1922. To this was added theinfluence of the Russian Revolution, the establishment of the ILO (International LabourOrganisation) and the All-India Trade Union Congress. Thie4 speeded up the pace of thetrade union movement. Following the Second World War, there was a spiraling of prices.The workers once again became restive. This further indirectly strengthened themovement in India.The labour world in India is dominated mainly by four central organization of labour.These unions are, in fact, federations of affiliated union – units which function onregional, local and craft bases. These are: 1. All-India Trade Union Congress (AITUC): An important event in the history of trade union movement in India was the organization of the All-India Trade Union Congress in 1920. Mr. Nehru took a prominent part in the organization of this Congress. It followed the pattern of the trade union s in the United Kingdom. The effort toward unified action in the matter of labour was, however, short-lived and soon it came under the domination of the Communists and Radicals. This lienated any prominent people who did not subscribe to the views and ideology of the communists. At present, it is the second largest union of workers and is still controlled by Communists and fellow-travellers. 2. Indian National Trade Union Congress (INTUC): In May, the Indian National Trade Union Congress was organized by the Congress party on its labour front. This was formed with the help of the Hindustan Mazdoor Sewak Sangh which consisted of those who believed in Gandhian methods and had left the AITUC in 1937 under of leadership of Mr. M.N. Roy. The INTUC received the blessings of the top congress leaders at the Centre like Mr. Nehru and Sardar Patel. The prominent leaders of ATLA and HMSS were elected office-bearers of INTUC. One of the important points of the constitution of Indian National Trade Union Congress is that every affiliated union has to agree to submit to arbitration every individual dispute in which settlement is not reached thorough negotiations. There must be no strikes till other means of settlement are exhausted. In 1948, the Government of India declared that INTUC, and not AITUC, was the most representative organization of labour in the country entitled to represent Indian labour in I.L.O.
  • 30. 3. Hind Mazdoor Sangha (HMS) : The socialists in the Congress disapproved not only the Communist run AITUC but also the Congress-sponsored INTUC, particularly because it advocated compulsory arbitration as a method of resolving industrial disputes. For sometime the activities of socialist leaders were coordinated by the Hind Mazdoor Panchayat. Subsequently when they left the Congress, they met in Kolkatta in December, 1948 and a new federation by the Hind Mazdoor domination by employers, Government and political parties. 4. United Trade Union Congress (UTUC): The dissidents from the Socialist Leaders’ Congerence held at Kolkatta in December, 1948 proceeded to establish yet another federation of trade unions in April-May 1949 under the name of United Trade Union Congress. The UTUS is more radical than HMS but less revolutionary in its objectives and policies than AITUC.Need for Trade Union • One of the main reasons of workers joining a trade union been their belief to get wages increased and maintained at a reasonable standard through collective action and their realization that individual bargaining was utterly useless for this purpose. • Since the employee, as an individual, feels specially weak, he prefers to join an organization that my afford him an opportunity to join others for the achievement of those objectives that he considers as socially desirable. • The employees may join the unions to ensure a just and fair dealing by management. • Through collective strength, they restrain the management from taking any such action which may be irrational, illogical, discriminatory or contrary to their general interests. • Another reason of employees joining some union may be the broader realization on their part that unions fulfill the important need for adequate machinery for proper maintenance of labour-management relations. • Employees may join the unions because of their belief that it is an effective way to secure adequate protection form various types of hazards and income insecurity such as accident injury, illness, unemployment etc. • The employees may join the unions because of their feeling that this would enable them to communicate their views, ideas, feelings and frustrations to the management effectively.
  • 31. • Individuals may join the unions in the hope of finding a job through their influence in the company management.Functions of Trade Unions • Functions relating to members • Functions relating to organization • Functions relating to the union; and • Functions relating to the society.Functions relating to trade union members 1. To safeguard workers against all sorts of exploitation by the employers, by union leaders and by political parties. 2. To protect workers from the atrocities and unfair practices of the management. 3. To ensure healthy, safe and conducive working conditions, and adequate conditions of work. 4. To exert pressure for enhancement of rewards associated with the work only after making a realistic assessment of its practical implications. 5. To ensure a desirable standard to living by providing various types of social service – health, housing, educational, recreational, cooperative, etc. and by widening and consolidating the social security measures. 6. To guarantee a fair and square deal and social security measures. 7. To remove the dissatisfaction and redress the grievances and complaints of workers. 8. To encourage worker’s participation in the management of industrial organization and trade union, and to foster labour-management cooperation. 9. To make the workers conscious of their rights and duties. 10. To impress upon works the need to exercise restraint in the use of rights and to enforce them after realistically ascertaining their practical implications. 11. To stress the significance of settling disputes through negotiation, joint consultation and voluntary arbitration.
  • 32. 12. The raise the status of trade union members in the industrial organization and in the society at large.Functions relating to industrial organization 1. To highlight industrial organization as a joint enterprise between workers and management and to promote identity of interests. 2. To increase production quantitatively and qualitatively, by laying down the norms or production and ensuring their adequate observance. 3. To help in the maintenance of discipline. 4. To create opportunities for worker’s participation in management and to strengthen labour-management cooperation. 5. To help in the removal of dissatisfaction and redressal of grievances and complaints. 6. To promote cordial and amicable relations between the workers and management by settling disputes through negotiation, joint consultation and voluntary arbitration, and by avoiding litigation. 7. To create favourable opinion of the management towards trade unions and improve their status in industrial organization. 8. To exert pressure on the employer to enforce legislative provision beneficial to the workers, to share the profits equitably, and to keep away from various types of unfair labour practices. 9. To facilitate communication with the management. 10. To impress upon the management the need to adopt reformative and not punitive, approach towards workers’ faults.Functions relating to trade unions organization 1. To formulate policies and plans consistent with those of the industrial organization and society at large. 2. To improve financial position by fixing higher subscription, by realizing the union dues and by organizing special fund-raising campaigns. 3. To preserve and strengthen trade union democracy. 4. To train members to assume leadership position.
  • 33. 5. To improve the network of communication between trade union and its members. 6. To curb inter-union rivalry and thereby help in the creating of unified trade union movement. 7. To resolve the problem of factionalism and promote unity and solidarity within the union. 8. To eradicate casteism, regionalism and linguism within the trade union movement. 9. To keep away from unfair labour practices. 10. To save the union organization from the exploitation by vested interests –personal and political. 11. To continuously review the relevance of union objectives in the context of social change, and to change them accordingly. 12. To prepare and maintain the necessary records. 13. To manage the trade union organization on scientific lines. 14. To publicise the trade union objectives and functions, to know people’s reaction towards them, and to make necessary modifications.Functions relating to society 1. To render all sorts of constructive cooperation in the formulation and implementation of plans and policies relating to national development. 2. To actively participate in the development of programmes of national development, e.g., family planning, afforestation, national integration, etc. 3. To launch special campaigns against the social evils of corporation, nepotism, communalism, casteism, regionalism, linguism, price rise, hoarding, black marketing, smuggling, sex, inequality, dowry, untouchability, illiteracy, dirt and disease. 4. To create public opinion favourable to government’s policies and plans, and to mobilize people’s participation for their effective implementation. 5. To create public opinion favourable to trade unions and thereby to raise their status.
  • 34. 6. To exert pressure, after realistically ascertaining its practical implications, on the government to enact legislation conducive to the development of trade unions and their members.Problems of Trade UnionThe following are some of the most important problems of the trade unions in India: 1. Multiplicity of Trade Unions and Inter-union Rivalry 2. Small Size of Unions 3. Financial Weakness 4. Leadership Issues 5. Politicalisation of the Unions 6. Problems of Recognition of Trade UnionsMultiplicity of trade unionsMultiple rival unionism is one of the great weaknesses of the Indian trade unionmovement. “Multiple unions are mainly the result of political outsiders wanting toestablish unions of their own, with a view to increasing their political influence”. Theexistence of different conflicting or rival organisatoins, with divergent political views, isgreatly responsible for inadequate and unhealthy growth of the movement. Within asingle organisation one comes across a number of groups comprising or ‘insiders andoutsiders’, ‘new-comers’, and ‘old-timers’, moderates’ and radicals’, and ‘high’ and lowcaste’ people. This develops small unions. Inter-union and intra-union rivalry underminesthe strength and solidarity of the workers in many ways.Multiplicity of unions lead to inter-union rivalries, which ultimately cuts at the very rootof unionism, weakens the power of collective bargaining, and reduces the effectiveness ofworkers in securing their legitimate rights. Therefore, there should be “One union in oneIndustry”.Inter-union rivalryAnother vexing problem is that of intra-union rivalry. Trade rivalry is acute and pervadesthe entire industrial scene in India. Practically every important industry, there existsparallel and competing unions, e.g. on the Indian Railways, there are two parallelFederations – the Indian Railway Men’s Federation and Indian National Federation ofRailway-men.Small Size of unions
  • 35. The small size of unions is due to various factors, namely: • The fact that by seven workers may form a union under the Trade Union Act of 1926, and get it registered and a large number of small unions have grown. • The structure of the trade union organization in the country – which is in most cases the factory or the unit of employment; so whenever employees in a particular factory or mine are organized, a new union is formed. • Unionism in India started with the big employers and gradually spread to smaller employers. This process is still continuing and has pulled down the average membership. Though the number of unions and union membership are increasing average membership is declining. • Rivalry among the leaders and the Central Organisation has resulted in multiplicity of unions.The small size of unions create problems such as: • Lack of funds to help its members. • Lack of ability among the leaders and members. • Low bargaining power. • Rivalry between the unions • Lack of unity among workers.Financial weaknessThe financial weakness of the union may be attributed to the small size of union and poorability of its members to contribute. The other reasons are low subscriptions and irregularpayments of subscriptions by the members.Leadership issuesAnother disquieting feature of the trade unions is the ‘outside’ leadership, i.e. leadershipof trade unions by persons who are professional politicians and lawyers and who have nohistory of physical work in the industry. There are several reasons for this phenomenon,namely. • The rank and the file are largely illiterate as such they cannot effectively communicate with the management;
  • 36. • The union’s lack of formal power tends to put a premium on the dharismatic type of the leader, usually a politician, who can play the role of the defender of the workers against the management; • For ensuring a measure of ‘equation of power’ in collective bargaining where the workers are generally uneducated and have a low status. • For avoiding victimisation of worker-office-bearers of the trade unions; and • For lack of financial resources to appoint whole time office-bearers.These political leaders are inevitably concerned with “maximizing their individualstanding as political leaders rather than with, maximizing the welfare of their members”.Further, in bigger unions, direct contact with the rank and file membership and the topleaders is missing because of their hold on a number of trade unions in varied fields; theyfail to pay adequate attention to any one union. Again, often these union leaders are notadequately aware of the actual needs and pressing problems of the members. They,therefore cannot put forth the case of the union effectively.Outside leadership of the unions leads to political unionism (each union having anallegiance to a different political party), which in turn, leads to multiplicity of unions,leading to intra-union rivalry, which cause low membership leading to unsound financesand in turn, lack of welfare and other constructive activities which may infuse strengthinto unions and to conduct collective bargaining effectively the unions depend on outsideleadership, and the vicious circle thus goes on and on.Over and again it has been realized that “a reorientation of policy is desirable by aswitchover to working class leadership”. The National Commmission on Labour gave agood deal of though to the issue whether outside leadership shoul be retained. It felt that,“there should be no ban on non-employees holding positions in the executive body of theunions as that would be a very drastic step”. The Commission also refers to the ILOconvention (No. 87) concerning “freedom of association” and protection of the right toorganize, and the workers’ organisation shall have the right to elect their representative infull freedom.The commission’s own estimate was that outsiders in the unions executive bodies wouldbe about 10%, much less than the number legally permitted. It makes the followingrecommendations to deal with the problem of outside leadership: • Ex-employees of an industrial enterprise should not be treated as outsiders; • Intensification of worker’s education;
  • 37. • Penalties for victimization and similar unfair labour practices such as would discourage the growth of internal leadership; • Intensification of efforts by trade union organizers to train workers in union organisation. • Limiting the proportion of outsiders in the union execute; • Establishing a convention that no union office-bearer will concurrently hold an office in a political party.Hence, leadership should be promoted from within the rank and file and given a moreresponsible role. Initiative should come from the workers themselves through thelaunching of a vigorous programme for Workers’ Education. This will enable them toparticipate in the decision-making and managing the union affairs effectively.Politicalisation of the unionsOn of the biggest problems of the country’s trade union movement faces is the influenceof the political parties. i.e., the most distressing feature is its political character. HaroldCrouch has observed, “Even to the most casual observer of the Indian trade union scene,it must be clear that much of the behaviour of Indian unions, whether it be militant orpassive behaviour can be explained in political terms.Dr. Raman’s observations are: “Trade union multiplicity in India is directly traceable tothe domination and control of the trade union movement by rival political parties…. Theclay of unionism is possibly an effervescent industrial labourers, but the sculptorschiseling it into shape have certainly been members of political parties.In a recent study, Dr. Pandey had reached the conclusion: “The unions are closely alignedwith political parties, and political leaders continue to dominate the unions even now…The supreme consequence of political involvement of unions in India in general, formedto safeguard and promote the social and economic interests of workers, have tended tobecome tools of party politics”.It should be noted that decisions in the trade union fields are taken by the respectivepolitical parties to which the unions are attached and, therefore, with the changingpolitical situation, the decisions also change. With the split in the political ideology, theredevelops factional split in the same trade union professing the same political ideology.The divisions and sub-divisions, thus made, have affected adversely the trade unionmovement. It has become fragmented and disjointed. Each section pulls itself in differentdirections; with the result that “instead of becoming a unity and mighty torrential river,the movement is sub-divided into numerous rivulets”.
  • 38. Dr. Raman ahs very aptly conclude that: “The use of political methods by trade unionsmay be to their advantage, but the union cause is endangered when unions allowthemselves to become pawns in political fights. Political unionism has prevented thedevelopment of a movement or organisation that could be termed the workers’ own andturned the soil upside down to such a degree that it has become impossible for a genuinelabour-inspired, labour-oriented, worker-led trade union movement to take root”.Problems of recognition of trade unionsThis is one of the basic issues in our industrial relation system because employers areunder no obligation to give recognition to any union. In the initial stages, the attitudes ofthe employers towards the trade unions have been very hostile. The employers many atimes have refused recognition to trade unions either on the basis that unions consist ofonly a minority of employees; or that two or more unions existed.Recommendations of National Commission on Labour forStrengthening Trade UnionsThe National Commission on Labour has made a large number of recommendations ondifferent aspects of trade unions, as given below;Enlargement of functionsThe N.C.L. has stated that the “unions must pay greater attention to the basic needs of itsmembers which are: • to secure for workers fair wages; • to safeguard security of tenure and improved conditions of service; • to enlarge opportunities for promotion and training; • to improve working and living conditions; • to provide for educational, cultural and recreational facilities; • to cooperate in and facilitate technological advance by broadening the understanding of workers on its underlying issues; • to promote identity of interests of the workers with their industry; • to offer responsible cooperation in improving levels of production and productivity, discipline, and high standard of quality; and generally • to promote individual and collective welfare”.
  • 39. In addition, “unions should also undertake social responsibilities such as • promotion of national integration, • influencing the socio-economic policies of the community through active participation in the formulations of these policies, and • instilling in their members a sense of responsibility towards industry and community”.The main objective should be to draw unions as closely as possible into the entiredevelopment process.LeadershipRegarding leadership the N.C.L. has recommended that “(i) There should be not ban onnon-employees holding the position in the executive of the unions; (ii) steps should takenin to promote international leadership and give it more responsible role (iii) internalleadership should be kept outside the pale of victimization; (iv) permissible limit ofoutsiders in the executive of the unions should be reduced to 25%; and (v) ex-employeesshould not be treated as outsiders”.Union rivalriesIn regard to union rivalries, the Commission was of the opinion that its recommendationregarding recognition of unions, building up of internal leadership, shift to collectivebargaining and institution of an independent authority for union recognition would reducethem. Intra-union rivalries should be left to the central organisation concerned to settleand if it is unable to resolve the dispute the Labour Court should be set up at the requestof either group or on a motion by the government.RegistrationThe Commission has recommended that registration should be cancelled if: (a) itsmembership fell below the minimum prescribed for registration; (b) the union failed tosubmit its annual; (c) it submitted defective returns and defects were not rectified withinthe prescribed time; and (d) an application for re-registration should not be entertainedwithin six months of the date of cancellation of registration.Improvement of financial conditionTo improve the financial conditions of the unions, the Commission recommended for theincrease of membership fees.Verification of membership
  • 40. The Industrial Relations Commission should decide the representative character of aunion, either by examination of membership records or if it consider necessary byholding an election by secret ballot open to all employees.Recognition of the unionsThe N.C.L. has been of the opinion that, “it would be desirable to make recognitioncompulsory under a Central Law in all undertakings employing 100 or more workers orwhere the capital invested in above a stipulated size. A trade union seeking recognition asa bargaining agent from an individual employer should have a membership of at least 30per cent of workers in that establishment. The minimum membership should be 25 percent, if recognition is sought for an industry in a local area”.Trade Unionism in the International ContextTo be understood in the international context, trade unionism must be examined as part ofa wider concept-the labour movement as a whole. That movement consists of severalmore or less intimately relative related organization such as labour parties, workers’mutual insurance organisatoins, producers’ or consumers’ cooperatives, and workers’education and sports association. All have the common objective of improving thematerial, cultural, and social status of their members.What distinguishes one organisation from another is the particular aspects of that broadobjective it is endeavouring to pursue, and the particular method it employees. Therelationship among the various parts of the labour movement varies from country tocountry and from period to period. Not all countries have produced the entire gamut oforganisation referred to above; in some countries the term “labour movement” is virtuallysynonymous with “trade unionism”.Origins and background of the trade union movementEarly forms of labour organisatoinsUnion oriented, mainly in Great Britain the U.S.A in the late 18 th and early 19th centuries,as, associations of workers using the same skill. There is no connection between tradeunions and medieval craft guilds, for the latter were composed of master craftsmen whoowned capital and often employer several workers. The early unions were formed a partlyas social clubs but soon became increasingly concerned with improving wages andworking conditions, primarily by the device of collective bargaining. Progressing fromtrade to trade within the same city or area, the clubs formed local associations which,because they carried on their main activities on a purely local level, were almost self-sufficient. With industrial development, however, local associations sooner or later
  • 41. followed the expansion of production beyond the local market and developed intonational unions of the same trade. These in turn formed national union federations.Factors favouring unionismThe unions of the early 19th century were almost exclusively based upon a particularcraft. But as mass production industries – which required large numbers of rapidlytrained, semiskilled workers – developed, a rend toward large-scale union organisationgrew, and toward the end of the 19th century Great Britain was including unskilledworkers. Unions that recruited members from such groups – whose ranks were expandingrapidly as a result of new technologies – emerged either as industrial unions or as generalunions. Industrial unions attempted to organize all works employed in producing a givenproduct or service, sometimes including even the general office or white-collar workers.General unions included skilled workers and labourers of all grades from differentindustries, even though they usually started from a base in one particular industry. Butchanging technologies, union mergers, and ideological factors led to the development ofvarious kinds of unions that would not fit easily into any of the above categories.Obstacles to union organisationIn most Western countries, labour movements arose out of the protest of workers andintellectuals against social and political systems based upon discrimination according toancestry, social status, income and property. Such a system offered few avenues forindividual or collective advancement. Discrimination in political franchise (restriction onor outright denials of the vote) and a lack of educational opportunities, anti-unionlegislation, and the whole spirit of a society founded upon acknowledged class distinctionwere the main sources of the social protest at the root of modern labour movements.International Trade Union OrganisationThe large trade union movements of various countries for may years have maintainedloose alliances by joining international organisations of labour; federations of unions,rather than individual unions, usually hold membership. In 1901, the InternationalFederation of Trade Unions was established, chiefly under the guidance of Germanunions. It proved to be ineffective and disappeared during World War I. In 1919 it wasrevived at Amsterdam, but immediately came into collision with the Red International ofLabour Unions, established by the new government of the Soviet Union. The Communistorganisation had a brief period of expansion but soon dwindled away and haddisappeared before 1939.World Federation of Trade Unions (WFTU)
  • 42. OriginThe WFTU was founded in 1945 on a worldwide basis, representing trade unionorganisatoins in more than 50 Communist and Non-Communist countries. From heoutset, the American Federation of Labour declined to participate. In January 1949, withthe WFTU under Communist control, British, USA and Netherlands trade unionorganisatoins withdrew and went on to found the ICFTU; by June 1951 all Non-Communist trade unions and the Yogoslav Federation had withdrawn.By the 1990s, after the collapse of the European Communist regimes, membershipbecame uncertain; unions broke their links with the Communist parties and most werelater accepted into the ICFTU. Most of the national trade union centers in Africa andLatin America moved to the ICFTU after 1989, and the French Confederation Generaledu Travail has proposed withdrawal to its members.At the Nov. 1994 Congress in Damascus, most WFTU delegates come from thedeveloping countries (Cuba, India, South Korea, Vietnam).In a move towards decentralization, regional offices have been set up in New Delhi(India), Havana (Cuba), Dakar (Senegal), Damascus (Syria) and Moscow (Russia).World Confederation of Labour (WCL)Founded in 1920 as the International Federation of Christian Trade Unions, it went our ofexistence in 1940 as a large proportion of its 3.4 million members were in Italy andGermany, where affiliated unions were suppressed by the Fascist and Nazi regimes.Reconstituted in 1945 and declining to merge with the WFTU or ICFTU, its policy wasbased on the papal encyclicals Return novarum (1891) and Quadragesimo anno (1931),and in 1968 it became the WCL and dropped its openly confessional approach.Today, it has Protestant, Buddhist and Moslem member confederations, as well as amainly Roman Catholic membership. In its concern to defend trade union freedoms andassist trade union development, the WCL differs little in policy from the ICFTU above. Amembership of 11 million in about 90 countries is claimed. The biggest group is theConfederation of Christian Trade Unions (CSC) of Belgium (1.2 million).OrganisationThe WCL is organized on a federative basis which leaves wide discretion to itsautonomous constituent unions. Its governing body is the Congress, which meets every 4years. The Congress appoints (or re-appoints) the Secretary-General at each 4-yearlymeeting. The General Council which meets at least once a year, is composed of themembers of the Confederal Board (at least 22 members, elected by the Congress) andrepresentatives of national confederations, international trade federations, and trade union
  • 43. organisatoins where there is not confederation affiliated to the WCL. The ConfederalBoard is responsible for the general leadership of the WCL, in accordance with thedecisions and directive of the Council and Congress. Its headquarters is at Belgium.There are regional organisation in Latin America (Caracas), Africa (Banjul, Gambia) andAsia (Manila) and a liaison centre in Montreal.A much smaller international organisation, the International Federation of ChristianTrade Unions (IFCTU), now called the WCL (World Confederation of Labour), is madeup largely of Catholic labour unions in France, Italy and Latin America. The ICFT, at itsfounding congress in 1949, invited the affiliates of the IFCTU to join, but the invitationwas rejected. On the international scene, the WCL has been a comparatively ineffectiveorganisation. Its influence limited to a few countries in Europe and Latin America.International Confederation of Free Trade Unions (ICFTU)OriginThe founding congress o f the ICFTU was held in London in December 1949 followingthe withdrawal of some Western trade unions from the World Federation of Trade Unions(WFTU), which had come under Communist Control. The constitution, as amended,provides for cooperation with the UN and the ILO, and for regional organisation topromote free trade unionism, especially in developing countries. The ICFTU representssome 124m. workers across 196 affiliated organizations in 136 countries.AimsThe ICFTU aims to promote the interests of the working people and to secure recognitionof worker’s organisation as free bargaining agents; to reduce the gap between rich andpoor; and to defend fundamental human and trade union rights. In 1996, it campaignedfor the adoption by the WTO of a social clause, with legally binding minimum labourstandards.OrganisationThe Congress meets every 4 years. It elects the executive Board of 50 membersnominated on an area basis for a 4-years period; 5 seats are reserved for womennominated by the Women’s Committee; and the Board meets at least once a year,Various Committees cover economic and social policy, violation of trade union and otherhuman rights, trade union cooperation projects and also the administration of theInternational Solidarity Fund. There are joint ICFTU-International Trade SecretariatCommittees for coordinating activities.The ICFTU has its headquarters at Belgium; branch offices in Geneva and New York,and regional organizations in America (Caracas), Asia (Singapore) and Africa (Nairobi)
  • 44. Purposes of ICFTUStriving for world peace, the spreading of democratic institutions, increasing the standardof living for workers everywhere, a worldwide strengthening of free trade unions, andsupport to colonial people in their struggle for freedom. The ICFTU consistently opposedFascist as well as Communist dictatorships, and implemented that policy by giving suchaid as was possible to free labour in Spain and certain Latin American countries. It alsofurnished direct financial assistance to workers in Hungary and Tibet and campaignedagainst racialist policies in South Africa.Failures and successes of the ICFTULack of homogeneity among affiliates hindered the activity of the ICFTU in many fields,chiefly because of difference among its affiliates in the approach to unions inCommunist-controlled countries. It found its work to be most effective in the area ofinternational education. By 1960 it has created an international Solidarity Fund of$2,000,000 to aid workers who became victims of oppression and to promote democratictrade unionism in economically under developed countries. Problems of unionorganization were discussed at ICFTU seminars in various parts of the world, withexperienced labour leaders and labour spokesmen from the less industrialized countriesparticipating.To facilitate the functioning of its widespread activities, the ICFTU establishedheadquarters in Brussels, Belgium, with regional or subregional offices in may othercountries. Form one or more of those centers it conducted numerous educationalconferences, maintained a residential trade union training college in Calcutta, India andassisted in founding an African Labour College in Kampala, Uganda. It providedassistance to inexperienced works in areas in the first stages of industrialization and sentorganizers to Lebanon, Okinawa, Cyprus, Cameroon, India, Indonesia, Nigeria andelsewhere.It has been the consistent policy of the ICFTU to cooperate with the United NationsEducational, Scientific, and Cultural Organisation and with the International LabourOffice in Geneva. It is wholly financed by contributions from its affiliates.International Labour Organisation (ILO)The International Labour Organisatoin (ILO) was set up in 1919 by the Versailles PeaceConference as an autonomous body associated with the League of Nations. The ILO wasthe only international organisation that survived the Second World War even after thedissolution of its parent body. It became the first specialized agency of the UnitedNations in 1946 in accordance with an agreement entered into between the two
  • 45. organizations. India has been a member of the ILO since its inception. A unique featureof the ILO, as distinct from other international institutions, is its tripartite character.The aims and objectives of ILO are set out in the preamble to its Constitution and in theDeclaration of Philadelphia (1944) which was formally annexed to the Constitution in1946. The preamble affirms that universal and lasting peace can be established only if itsis based upon social justice, draws attention to the existence of conditions of labourinvolving injustice, hardship and privation of a large number of people, and declares thatimprovement of these conditions is urgently required through such means as theregulation of hours of work, prevention of unemployment, provision of an adequateliving wage, protection of workers against sickness, disease, and injury arising out ofemployment, protection of children, young persons and women, protection of theinterests of migrant workers, recognition of the principle of freedom of association, andorganisation of vocational and technical education. The Preamble also states that thefailure of any nation to adopt human conditions of labour is an obstacle in the way ofother nations desiring to improve labour conditions in their own countries.The three main functions of the ILO are; • to establish international labour standards; • to collect and disseminate information on labour and industrial conditions; and • to provide technical assistance for carrying ort programmes of social and economic development.From the very beginning, the ILO has been confronted with the tremendous task ofpromoting social justice by improving the work and conditions of life in all parts of theworld.The ILO consists of three principal organs, namely, the International Labour Conference,the Governing Body and the International Labour Office. The work of the Conferenceand the Governing Body is supplemented by that of Regional Conferences, RegionalAdvisory Committees, Industrial Committees, etc. The meeting of the GeneralConference, held normally every year, are attended by four delegates from each memberState, of whom two are government delegates and one each representing respectively theemployers and the work people of the State. The International Labour Conference is thesupreme organ of the ILO and acts as the legislative wing of the Organisatoin. TheGeneral Conference elect the Governing Body, adopt the Organization’s biennialprogramme and budget, adopt international labour standards in the form of conventionsand Recommendations and provide a forum for discussion of social and labour issues.The Governing Body is the executive wing of the Organisation. It appoints the Director-General, draws up the agenda of each session of the Conference and examines the
  • 46. implementation by member countries of its Conventions and Recommendations. TheInternational Labour Office, whose headquarters are located at Geneva, provides thesecretariat for all conferences and other meetings and is responsible for the day-to-dayimplementation of the administrative and other decisions of the Conference, theGoverning Body, etc. The Director-General is the chief executive of the InternationalLabour Office. An important aspect of its work relates to the provision of assistance tomember States. It also serves as a clearing house of information on all labour matters.In order to achieve its objective, the ILO has relied on its standard-setting function. Theinternational labour standards take the form of Conventions and Recommendations. AConvention is a treaty which, when ratified, creates binding international obligations onthe country concerned. On the other hand, a Recommendation creates no such obligationsbut is essentially a guide to national actions. The ILO adopted a series of Conventionsand Recommendations covering hours of work, employment of women, children andyour persons, weekly rest, holidays leave with wages, night work, industrial safety,health, hygiene, labour inspection, social security, labour-management, relations,freedom of association, wages and wage fixation, productivity, employment, etc. One ofthe fundamental obligations imposed on governments by the Constitutions of the ILO isthat they must submit the instruments before the competent national or State or provincialauthorities within a maximum period of 18 months of their adoption by the Conferencefor such actions as might be considered practicable. These dynamic instruments continueto be the principal means at the disposal of the ILO to strive for establishing a just,democratic and changing social order necessary for lasting peace. In fact, theseinstruments have been included in the category of “international labour legislation”.These Conventions and Recommendations taken together are known as the “InternationalLabour Code”. Wilfred Jenks describes the International Labour Code as the corpus jurisof social justice.Review Questions 1. Trace the origin and growth of trade union movement. 2. What are the functions of a trade union? 3. What are the problems of a trade union? 4. Briefly explain the history, objectives and functions of ILO.
  • 47. UNIT – III 4. Industrial Disputes 5. Grievances Handling 6. Employee Discipline
  • 48. Lesson 4 Industrial DisputesMeaningAccording to Section 2(K) of the Industrial Disputes Act, 1947, and ‘industrial dispute’means “any dispute or difference between employers and employees or betweenemployers and workmen or between workmen and workmen, which is connected with theemployment or non-employment or the terms of employment or with the conditions oflabour of any person.Thus form the legal point of view, industrial dispute does not merely refer to differencebetween labour and capital as is generally thought, but it refers to differences that affectgroups of workmen and employers engaged in an industry. Essentially, therefore, thedifferences of opinions between employers and workmen in regard to employment, non-employment, terms of employment or the conditions of labour where the contestingparties are directly and substantially interested in maintaining their respective contentiousconstitute the subject-matter of an industrial dispute.Causes of Industrial DisputesThe causes of industrial conflict or disputes have been much varied. These may bedescribed partly a psychological or social and partly political, but predominantlyeconomic. Some important factors responsible for industrial conflict and poor industrialrelations many be briefly stated as follows: • Management’s general apathetic towards workers or employees because of their contention that they want more and more economic or monetary rewards and want to do less work. • Mental inertia on the part of both management and labour. • Lack of proper fixation of wages inconformity with cost of living and a reasonable wage structure generally. • Bad working conditions. • Attempts by management to introduce changes (such a rationalization, modernization or automation) without creating a favourable to appropriate climate or environment for the same.
  • 49. • Lack of competence or training on the part of first-line supervision as well management at upper levels in the practice of human relations. • Assignment of unduly heavy work-loads to worker, unfair labour practices (such as victimization or undue dismissal). • Lack of strong and healthy trade unionism, lack of a proper policy of union recognition and inter-union rivalries. • A spirit of non-cooperation and a general tendency among employees to criticize or oppose managerial policies or decisions even when they may be in the right directions. • A fall in the standard of discipline among employees largely due to wrong or improper leadership, often resulting in insubordination or disobedience on the part of employees. • Difference in regard to sharing the gains of increased productivity. • Inadequate collective bargaining agreements. • Legal complexities in the industrial relations machinery or settlement of industrial disputes. • Lack of necessary changes in the working of government in accordance with changing needs and circumstances. • Combination of too much law and too little respect for law even at high levels. • Growing factional and personal difference among rank-and-file employees who are union members or union leaders and a tendency on the part of the management in some cases to prefer having with outside leaders and not give due respect to worker-leaders. • Political environment of the country; and • Agitation and wrong propaganda by selfish labour leaders to further their own interests of their own party.Forms of DisputesStrikes, lockouts and gheraos are the most common forms of disputes.Strike
  • 50. “Strike” means a cessation of work by a body of persons employed in any industry actingin combination; or a concerted refusal or a refusal under a common understanding or annumber of persons who are or have been so employed to continue to work or to acceptemployment.The following points may be noted regarding the definition of strike: • Strike can take place only when there is a cessation of work or refusal to work by the workmen acting in combination or in a concerted manner. • A concerted refusal or a refusal under a common understanding of any number of persons to continue to work or to accept employment will amount to a strike. A general strike is one when there is a concert of combination of workers stopping or refusing to resume work. Going on mass casual leave under a common understanding amounts to a strike. • If on the sudden death of a fellow-worker, the workmen acting in concert refuse to resume work, it amounts to a strike (National Textile Workers’ Union Vs. Shree Meenakshi Mills (1951) II L.L.J. 516). • The striking workman, must be employed in an ‘industry’ which has not been closed down. • Even when workmen cease to work, the relationship of employers and employees is deemed to continue albeit in a state of belligerent suspension.Types of Strike • Stay-in, sit-down, pen-down strike: In all such cases, the workmen after taking their seats, refuse to do work. All such acts on the part of the workmen acting in combination, amount to a strike. • Go-slow: Go-slow does not amount to strike, but it is a serious case of is conduct. • Sympathetic strike : Cessation of work in the support of the demands of workmen belonging to other employer is called a sympathetic strike. The management can take disciplinary action for the absence of workmen. However, in Remalingam Vs. Indian Metallurgical Corporation, Madras, 1964-I L.L.J.81, it was held that such cessation of work will not amount to a strike since there is no intention to use the strike against the management. • Hunger strike: Some workers may resort to fast on or near the place of work or residence of the employers. If it is peaceful and does not result in cessation of work, it will not constitute a strike. But if due to such an fact, even those present
  • 51. for work, could not be given work, it will amount to strike (Pepariach Sugar Mills Ltd. Vs. Their Workmen). • Lightning or wildcat strike: A wildcat strike is an unofficial strike i.e. a strike not sanctioned by the union. Such strikes occasionally occur in violation of the no- strike pledge in collective bargaining agreements. In such a situation union is obliged to use its best efforts to end the strike. Such strikes are prohibited in public utility services under Section 22 of the Industrial Disputes Act, 1947. Further, the standing order of a company generally required for notice. • Work-to-rule: Since there is a no cessation of work, it does not constitute a strike.LockoutSection 2(1) of the Industrial Disputes Act, 1947 defines “lockout” to mean thetemporary closing of a place of employment or the suspension of work, or the refusal byan employers to continue to employ any number of persons employed by him, lockout,thus, is the counterpart of strike – the corresponding weapon the hands of employer toresist the collective demands of workmen or to enforce his terms. It has been held by thecourts that the suspension of work as a disciplinary measure does not amount to lockout.Similarly, temporary suspension of work called lay-off is not lock-out.GheraoGherao means encirclement of the managers to criminally intimidate him to accept thedemands of the workers. It amounts to criminal conspiracy under Section 120-A of theI.P.C. and is not saved by Sec. 17 of the Trade Unions Act on the grounds of its being aconcerted activity.Regulation of strikes and lock-outsEmployees do not have an unfettered right to go on strike nor do employers have suchright to impost lockout. The Industrial Disputes Act lays down several restrictions on therights of both the parties. A strike or lockout commenced or continued in contraventionof those restriction is termed illegal and there is serve punishment provided for the same.Illegal strikes and lockout are of two types: • Those which are illegal form the time of their commencement; and • Those which are not illegal at the time of commencement but become illegal subsequently. Section 22 and 23 of the IDA provide for certain restriction which if not followed make strikes and lockouts illegal from their very commencement.
  • 52. According to this section, no person employed shall go on strike in breach of contract- • Without giving notice of strike to the employer, as here matter provided, within 6 week before striking; or • Within fourteen days of giving such notice; or • Before the expiry of the date of strike specified in any such notice as aforesaid; or • During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after the conclusion of such proceedings.Consequences of illegal strikes and lock-outs. 1. Penalty for illegal strikes [Sec.26(1)]: Any workman who commences, continues or otherwise acts in furtherance of a strike which is illegal, shall be punishable with imprisonment for a term which may extend to 1 month, or with fine which may extend to Rs. 50, or with both. 2. Penalty for illegal lock-out [Sec.26(2): Any employer who commences, continues or otherwise acts in furtherance of a lock-out which is illegal, shall be punishable with imprisonment for a term which may extend to 1 month, or with fine which may extend to Rs. 1,000 or with both. 3. Penalty for instigation, etc. [Sec. 27]: Any person who instigates or incites others to take part in, or otherwise acts in furtherance of, a strike or lock-out which is illegal, shall be punishable with imprisonment for a term which may extend to 6 months, or with fine which may extend to Rs. 1,000 or with both. 4. Penalty for giving financial aid for illegal strikes and lock-outs [Sec. 28] : Any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out shall be punishable with an imprisonment for a term which may extend to 6 months, or with fine which may extend to Rs. 1,000 or with both.Machinery for Prevention and Settlement of IndustrialRelationsThe machinery for prevention and settlement of the disputes has been given in thefollowing figure: Machinery for Prevention and Settlement of Industrial Relations
  • 53. Voluntary Methods Government Machinery Statutory Measures Code of Tripartite Worker’s Collective I.D. Act, 1947 State Acts Discipline Machinery Participation Bargaining Labour Administration (States & Central Levels) Works Conciliation Voluntary Court of Enquiry Adjudication Committee Arbitration Conciliation Conciliation Labour Industrial National Officers Board Court Tribunal TribunalVoluntary MethodsCode of disciplineFormally announced in 1958, the Code of Discipline provides guidelines for the workers,unions and employers. The code which was approved by major national trade unions andprincipal organisation of employers enjoyed on them to create an environment of mutualtrust and cooperation and to settle the disputes by mutual negotiation, conciliation andvoluntary arbitration. It required the employers and workers to utilize the existingmachinery for the settlement of disputes.A few important provisions of code of discipline are: • Strikes and lockout cannot be declared without proper notice. • The parties should not take any action without consulting each other. • There should be no go slow statistics or any resort to deliberate damage to plant or property or resort to acts of violence, intimidation, coercion etc.
  • 54. The code has moral sanction only and it does not entail any legal liability or punishment.Tripartite machineryTripartite machinery consists of various bodies like Indian Labour Conference, theStanding Labour Committee, the International Committees, the Central Implementationand Evaluation Committee and the Committee on conventions. Generally, thesecommittees include representatives from centre and the states, and the same number ofworkers’ and employers’ organisatoins. These various committees are basically ofadvisory nature, yet they carry considerable weight among the government, workers andemployers.Workers’ participation in managementWorkers’ participation in management is an essential ingredient of industrial democracy.The concept of workers participation in management is based on “Human Relations”approach to management which brought about new set of values to labour andmanagement.According to one view, workers participation is based on the fundamental concept thatthe ordinary workers invest his labour in, and ties his fate to, his place of work and,therefore, he has a legitimate right to have a share in influencing the various aspects ofcompany policy”.According to G.S. Walpole, participation in management gives the workers a sense ofimportance, pride and accomplishment; it gives him the freedom and the opportunity forself-expression; a feeling of belonging to his place of work and a sense of workmanshipand creativity. It provides for the integration of his interests with those of themanagement and makes him a joint partners in the enterprise”.The forms of workers participation in management vary from industry to industry andcountry to country depending upon the political system, pattern of management relationsand subject or area of participation. The forms of workers participation may be asfollows: 1. Joint Consultation Modes 2. Joint Decision Model 3. Self Management, or Auto Management Scheme 4. Workers Representation on Board
  • 55. It should be borne in mind that when individuals are provided with opportunities forexpression and share in decision-making, they show much initiative and acceptresponsibility substantially. The rationale of workers’ participation in management lies inthat it helps in creating amongst the workers a sense of involvement in their organisatoin,a better understanding of their role in the smooth functioning of industry and providesthem a means of self-realization, thereby, promoting efficiency and increasedproductivity.Collective bargainingCollective bargaining is a source of solving the problems of employees in the worksituation collectively. It provides a good climate for discussing the problems of workerswith their employers. The employees put their demands before the employers and theemployers also gives certain concession to them. Thus it ensures that the managementcannot take unilateral decisions concerning the work ignoring the workers. It also helpsthe works to achieve reasonable wages, working conditions, working hours, fringebenefits etc. It provides them a collective strength to bargain with the employer. It alsoprovides the employer some control over the employees.The process of collective bargaining is bipartite in nature i.e., the negotiations arebetween the employers without a thirds party’s intervention. Thus collective bargainingserves to bridge the emotional and physiological between the workers and employersthrough direct discussions.Government MachineryThe Ministry of Labour and Employment at the centre is the key agency for the policyformulation and administration in all the matters pertaining to labour. The Stategovernments with the cooperation of their labour departments are responsible for theenforcement thereof. The Directorate General of Employment and Training (DGET),Office of Chief Labour Commissioner (CLC) (Central), the Director General of MinesSafety (DGMS), the Director General of Factory Advice and Labour Institutes, andIndustrial Tribunals are some of the agencies through which the Central Governmentdischarges its functions related to framing of labour laws and settlement of industrialdisputes. The Labour Secretary is the overall incharge of policy formulation andadministration, and commissioners of labour in the States are the operative arms for theeffective implementation of Labour Laws.Statutory Measures – Industrial Disputes Act, 1947
  • 56. The States are free to frame their own labour laws as the labour falls in the concurrentlist, Some States like Maharashtra, M.P., U.P. and Rajasthan have their own Acts. In therest of the states, Industrial Disputes Act, 1947 applies. However, in the States havingtheir own Acts, the IDA, 1947 will be applicable to the industries not covered by theState Legislation. Formally announced in 1947, the Industrial Disputes Act, has beenamended several times since then. Under the Act the following authorities have beenproposed for the investigation and settlement of industrial disputes.Works committeesThe IDA, 1947 provides for setting up works committees in every organisation having100 or more employees. Having representatives of employees and employees, these areconsultative bodies and are set up for maintaining harmonious relations at the work laceand sort out the difference if any. Though the act does not define the jurisdiction of thesecommittees, yet their functions mainly include providing proper working conditions andamenities for the welfare of employees at the work place or away from the work. A workcommittee aims at promoting measures for securing the preserving amity and goodrelations between employees and workers.ConciliationWhen the services of a neural party are availed for the amicable solution of a disputebetween the disputing parties, this practice is known as conciliation. The IDA, 1947provides for conciliation and it can be utilized either by appointing Conciliation Officeror by setting up Board or Conciliation.The Conciliation Officers are appointed by the Government by notifying in the OfficialGazettee. Usually at the State level, Commissioners of Labour, Additional and DeputyCommissioners of Labour act as Conciliation Officer for disputes arising in anyundertaking employing less than twenty workers. In the conciliation process the officerties to bring the disputing parties together towards a settlement of the dispute and henceworks as a mediator. The intervention of conciliation officer may e mandatory ordiscretionary. But in the disputes related to public utilities in respect of which propernotice is served to him, his intervention becomes mandatory.The Board of Conciliation is a higher forum and is constituted for a specific dispute. Itconsists of equal number of representatives of employers and employees under thechairmanship of an independent person, appointed by the government. The Board has tosubmit its report to the government regarding the dispute within two months from thedate dispute was referred to it. However, depending on the case, the period can beextended.
  • 57. Voluntary arbitrationIndustrial Disputes (Amendment) Bill, 1956 incorporated Section 10A favouringvoluntary arbitration. In case of existed or apprehended dispute, the disputing parties canenter into an arbitration agreement in writing. The success of voluntary arbitrationdepends on “a sufficient degree of mutual confidence in decision by agreement onsubjects which may be submitted for arbitration”.Court of enquiryThe IDA, 1947 empowers the appropriate government to constitute a Court of Enquiry.This body basically is a fact-finding agency, constituted just to reveal the causes of thedisputes and does not care much for the settlement thereof. The Court of Enquiry isrequired to submit its report to the government ordinarily within six months from thecommencement of enquiry. The report of the court shall be published by the governmentwithin 30 days of its receipt.AdjudicationIf the dispute is not settled by any other method, the government may refer it foradjudication. Hence it is a compulsory method which provides for three-tier system foradjudication of industrial disputes. This machinery consists of Labour Court, IndustrialTribunals and National Tribunal. The first two bodies can be set up either by State orCentral Government but the National Tribunal can be constituted by Central Governmentonly, when it thinks that the solution of dispute is of national significance. A LabourCourt consists of one person only, called Presiding Officer, who is or has been a judge ofa High Court. The jurisdiction of Industrial Tribunal is comparatively wider than LabourCourts, and further the Presiding Officer of Tribunal can have two assessors may beappointed by the Central Government to help its Presiding Officer.Labour Courts and Tribunals are now required to submit award to the appropriategovernment within three months in case of individual disputes The submitted award shallbe published by government within 30 days from the date of its receipt. It shall come intoforce on the expiry of 30 days from the date if its publication and shall be operative for aperiod of one year, unless declared otherwise by the appropriate government.Review Questions 1. What is an industrial dispute? What are the causes of industrial disputes? 2. What are the forms of industrial disputes? 3. Explain various machineries for settlement of industrial disputes.
  • 58. Lesson 5 Grievances HandlingA grievance is a sign of the employees’ discontent with job and its nature. It is causeddue to the difference between employee expectation and management practice.Beach defines a grievance as, ‘any dissatisfaction or feeling of injustice in connectionwith one’s employment situation that is brought to the notice of the management.Jucius defines a grievance as ‘any discontent or dissatisfaction, whether exposed or not,whether valid or not, arising out of anything connected with the company which anemployee thinks, believes or even feels to be unfair, unjust and inequitable’.A grievance is a problem submitted by an employee or by a few employees of differenttypes. It may be conce4ring a situation or may likely to affect the terms and conditions ofemployment of one worker or a few workers.In the Indian context, ‘grievance’ may be said to “the representation by a worker, a groupof workers or the unions to the management relation to the terms and conditions ofemployment, breach of the freedom of association or the provisions of standing orders ornon-implementation of the Government orders, conciliation agreeme4nts or adjudicators’awards”. It may also include representation against non-compliance with provision of acollective agreement in an establishment where it has been signed.Grievances usually result in definite and considerable loses to employee morale,efficiency and productivity. The accumulation of grievance leads to strikes, lock outs andother forms of conflicts. Therefore, proper disposal of grievances deserves special andadequate consideration in any programme of harmonizing industrial relations.Areas of GrievancesGrievances resulting from working conditions • Poor physical conditions of work place. • Lack of proper tools, machines and equipments. • Frequent changes in schedules or procedures. • Rigid production standards • Improper matching of the worker with the job.
  • 59. • Poor relationship with the supervisor.Grievances resulting from management policy and practices • Poor payment • Lack of job security • Inadequate benefits such as medical benefits, leave travel concession etc. • Leave facilities • Seniority • Transfer • Promotion • Lack of career planning and development • Hostility towards labour union • Defective leadership style • Communication gapGrievances resulting from alleged violations of • Violation collective bargaining agreement • Violation of Central/State laws • Violation of common rulesGrievances resulting from personal maladjustment • Over ambition • Excessive self-esteemMethods of Indentifying GrievancesThe following methods can help the employer to identify the grievances: 1. Directive observation: Knowledge of human behaviour is requisite quality of every good manager. From the changed behaviour of employees, he should be
  • 60. able to snuff the causes of grievances. This he can do without its knowledge to the employee. This method will give general pattern of grievances. In addition to normal routine, periodic interviews with the employees, group meetings and collective bargaining are the specific occasions where direct observation can help in unfolding the grievances. 2. Grip boxes: The boxes (like suggestion boxes) are placed at easily accessible spots to most employees in the organisation. The employees can file anonymous complaints about their dissatisfaction in these boxes. Due to anonymity, the fear of managerial action is avoided. Moreover management’s interest is also limited to the free and fair views of employees. 3. Open door policy: Most democratic by nature, the policy is preached most but practiced very rarely in Indian organizations. But this method will be more useful in absence of an effective grievance procedure, otherwise the organisation will do well to have a grievance procedure. Open door policy demands that the employees, even at the lowest rank, should have easy access to the chief executive to get his grievances redressed. 4. Exit interview: Higher employee turnover is a problem of every organisation. Employees leave the organisation either due to dissatisfaction or for better prospects. Exit interviews may be conducted to know the reasons for leaving the job. Properly conducted exit interviews can provide significant information about the strengths and weaknesses of the organisation and can pave way for further improving the management policies for its labour force.Principles or Guidelines for Grievance Handling 1. In handling grievances, a considerable amount of time must be spent in talking to employees; gathering data from them and passing on various types of information. Such talks to be most effective, should conform to definite patterns and adhere to well tested rules. 2. The manager must seek to develop an attitude towards employees that should be helpful in gaining their confidence. The management should also display a sincere interest in the problems of employees and their constructive willingness to be to help to them with a view to gain not only their confidence but also their utmost loyal by and genuine cooperation. 3. The procedure adopt by the management in handling the grievances must be apparent.
  • 61. 4. Grievances should be handled in terms of their total effect on the organisation and not solely their immediate or individual effect.Steps in handling grievancesIt is important that grievance must be handled in a systematic manner. The followingsteps should be taken in handling grievances: 1. Defining, describing or expressing the nature of the grievances as clearly and fully as possible; 2. Gathering all facts that serve to explain when, how, where, to whom and why the grievance occurred; 3. Establishing tentative solutions or answers to the grievances; 4. Gathering additional information to check the validity of the solutions and thus ascertain the best possible solution; 5. Applying the solution, and 6. Following up the case to see that it has been handled satisfactorily and the trouble has been eliminated.Grievance handling proceduresGrievance procedure is the most significant channel through which dissatisfaction ofemployees can be communicated to management. A grievance procedure is an orderedmultistep process that the employer and employee jointly use to redress grievances andresolve disputes that arise. Thus a formal procedure which attempts to resolve thedifferences of parties involved, in an orderly, peaceful and expeditious manner, may bedefined as grievance procedure or grievance redressal machinery. The steps in thismachinery vary from organisation to organisation.For handling grievances, as a first step, the management is required to designate thepersons for each of the various departments to be approached by the works and thedepartment heads for handling grievances as the second step. A Grievance Committeemay also be constituted with representatives of workers and management.The model grievance producer give the various steps through which a grievance shouldbe processed.First, the grievance is taken to the departmental representative of the management whohas to give an answer within 48 hours. Failing this, the aggrieved worker/ employee can
  • 62. beet the departmental head along with the departmental representative of the managementand this step is allotted three days. Above this, the grievance is taken up by the GrievanceCommittee which should make its recommendations to the manager within seven days.The final decision of the management has to be communicated to the workers oremployee concerned within three days of the Grievance Committee’s recommendations.If the employee is not satisfied, he can make an appeal for revision and the managementhas to communicate its decision within a week. In the case of non-settlement, thegrievance may be referred to voluntary arbitration. The formal conciliation machinerywill not be invoked till the final decision of the top management has been foundunacceptable by the aggrieved employee.In the case of any grievance arising out of discharge or dismissal, the workman oremployee has the right to appeal either to the dismissing authority or to a senior authorityspecific by the management within a week from the date of dismissal or discharge.Although the grievance procedure gives the employees opportunity to raise theirgrievances to the highest possible level of management, yet they should be resolved asclose as possible to their source. The main object of grievance procedure is to resolve thegrievance at earliest possible stage. The management must convince itself that justice isnot only done, but seen to be done and the presence of a trade union representative withthe aggrieved party helps to ensure fair play not only for the employee concerned, butalso for his management. CASESandoz (India) LimitedGrievance Settlement Procedure 1. Any aggrieved employee may approach his immediate supervisor for the redressal of any complaint regarding his work, conditions pertaining to his work, etc. The supervisor will look into the complaint, discuss with his departmental head if necessary, who will, in turn, consult the Personal Department if necessary and give a reply to the aggrieved employee within a period of 3 days to one week. 2. If the aggrieved employee is not satisfied with the reply received from his supervisor, he may approach his departmental head, who will, in turn, investigate the matter personally and give a reply within a further period of 3 days to one week. 3. If the employee concerned is still not satisfied, he may approach the Factory Manager either personally or in writing for the redressal of his complaint. The
  • 63. Factory Manager will look into the complaint and the reply given by him will be final in the matter. Such a reply in given generally within a week. 4. If the employee still continues to be aggrieved, he may approach the Management through the Union when the matter is taken up at the Union-Management forum for settlement on tripartite basis or by adjudication/ arbitration. 5. If it is necessary for the workman to leave the work place on a call from any authority under this procedure, previous permission from his immediate superior should be obtained. 6. If a grievance arises out of an order given by the Management, the said order shall be complied with before the workman concerned invokes the procedure laid down for redressal of grievances.Review Questions 1. Define ‘grievance’ and state the causes of grievances. 2. Indicate the guidelines for handling grievances. 3. Discuss briefly grievance handling procedures.
  • 64. Lesson 6 Employee DisciplineDiscipline may be defined as an attitude of mind which aims at inculcating restraint,orderly behaviour and respect for and willing obedience to a recognized authority. In anyindustry discipline is a useful tool for developing, improving and stabilizing thepersonality of workers. Industrial discipline is essential for the smooth running of anorganisation, for increasing production and productivity, for the maintenance of industrialpeace and for the prosperity of the industry and the nation. It is a process of bringingmultifarious advantages to the organisation and its employees.MeaningWebster’s Dictionary gives three meanings to the world “discipline”. First, it is thetraining that corrects, moulds, strengthens or perfects individual behaviour; second, it iscontrol gained by enforcing obedience; and third, it is punishment or chastisement.According to Dr. Spiegel, “discipline is the force that prompts an individual or a group toobserve the rules, regulations and procedures which are deemed to be necessary to theattainment of an objective; it is force or fear of force which restraints an individual or agroup from doing things which are deemed to be destructive of group objectives.Discipline is a product of culture and environment and a basic part of the management ofemployee attitudes and behaviour. It is a determinative and positive willingness whichprompts individuals and groups to carry out the instructions issued by management, andabide by the rules of conduct and standards or work which have been established toensure the successful attainment of organizational objectives. It is also a punitive or a bigstick approach which imposes a penalty or punishment in case of disciplinary violations.There are two types of discipline, one is positive and the other is negative. PositiveDiscipline employs constructive force to secure its compliance. It is immeasurably moreeffective and pays a greater role in business management. Negative Discipline, on theother hand, includes both the application of penalties for violation and the fear ofpenalties that serve as a deterrent to violation. Positive discipline prevails only where theemployees have a high morale. In other situations, negative discipline becomesunavoidable.Aims and objectivesThe main aims and objectives of discipline are:
  • 65. • To obtain a willing acceptance of the rules, regulations and procedures of an organisation so that organizational objectives can be attained; • To develop among the employees a spirit of tolerance and a desire to make adjustments; • To give and seek direction and responsibility; • To create an atmosphere of respect for human personality and human relations; • To increase the working efficiency morale of the employees; and • To impart an element of certainty despite several differences in informal behaviour patterns and other related changes in an organisation.IndisciplineThe term ‘indiscipline’ generally means the violation of formal or informal rules andregulations in an organisation. Indiscipline, if unchecked, will affect the morale of theorganisation. Hence indiscipline is to be checked by appropriate positive means tomaintain industrial peace.Causes for indiscipline in organizationsIt is more complex and difficult to identify the causes of indiscipline. The policies andprocedures of organizations, the attitude of the management towards workers, the attitudeof workers, individual behaviors etc. are the causes for indiscipline.The important causes for indiscipline are: • Ineffective leadership to control, coordinate and motivate workers. • Low wages and poor working conditions. • Lack of timely redressal or workers’ grievances. • Lack or defective grievance procedure. • Character of the workers such as gambling, drinking, violet nature etc. • Political influence.Principle Of Effective DisciplineDisciplinary actions have serious repercussions on the employees and on the industry,and, therefore, must be based on certain principles in order to be fair, just and acceptable
  • 66. to be the employee and their unions. Therefore, in any discipline maintenance system,certain principles are to be observed such as: 1. The rules of discipline, as far as possible, should be framed in cooperation and collaboration with the representatives of employees for their easy implementation. Employees in a group should be associated in the process of discipline enforcement. The group as a whole can control an individual works much more effectively than the management can through a process of remote control or by imposing occasional penalties. Informal groups are likely to exert social pressures on wrong-doers avoiding the need for negative disciplinary actions. 2. The rules and regulations should be appraised at frequent and regular intervals to ensure that they are appropriate, sensible and useful. 3. The rules and regulations should be flexible to suit different categories of employees in the organisation, i.e., both the blue-collar workers and white-collar employees. 4. The rules must be uniformly enforced for their proper acceptance. They must be applied fairly and impersonally. In other words, all defaulters should be treated alike, depending upon the nature of their offence and past record. Any discrimination or favoritism in this regard is likely to create discontent among the employees. Further, there should be a definite and precise provision for appeal and review of all disciplinary actions. 5. The rules of discipline embodied in the standing orders, or in the company’s manual, must be properly and carefully communicated to every employee preferably at the time of induction for their easy acceptance. It serves as a warning and a learning process and helps to improve future behaviors of the employees in the enterprise. 6. Every kind of disciplinary penalty, even if it is a rebuke or a warning, should be recorded. In some of the American industries they have what is known as the “pink slip system”. Pink slips are issued as warning signals to a defaulting employee. A person who has been issued with a stated number of pink slips will be liable to be laid-off or discharged, and no elaborate procedure has to be followed. 7. The responsibility for maintaining employee discipline should be enirusted to a responsible person (e.g. a line executive), through it is the personnel officer who should be given the responsibility of offering advice and assistance. The line executive should issue only verbal and written warnings. In serious matters,
  • 67. which warrant suspension, discharge etc., the industrial relations departments should be consulted. 8. Disciplinary actions should be taken in private because its main objectives is to ensure that a wrong behaviour is corrected and not that the wrongdoer is punished. If disciplinary actions are taken in the presence of other employees, it may offend the sense of dignity of the employee and impair his social standing with his colleagues. Similarly, an immediate supervisor should never be disciplined in the presence of his subordinates. If this happens, it would lower his status and authority, and make it difficult, if not impossible, for him to discipline his subordinates under certain circumstances. 9. A punitive actions must satisfy the principle of natural justice. The management must act without bias and without vindictiveness, and its disciplinary actions must be based on justice and fairplay. The punishment should be commensurate with the gravity of the offence. An individual is presumed to be innocent until he is proved to be guilty. The burden of proof is on the employer and not on the employee.Approaches to Discipline EnforcementThe different approaches to discipline include- • Human Relations Approach • Human Resources Approach • Group Discipline Approach • The Leadership Approach andUnder human relations approach, the employee is treated as human being and his acts ofindiscipline will be dealt from the view point of human values, aspirations, problems,needs, goals, behaviors etc. In this approach the employee is helped to correct hisdeviations.Under human resources approach, the employee is considered as ‘resource’ as an asset tothe organisation. This approach analysis the cause of indiscipline from managementactivities such as defects in selections, training, motivations, leadership etc., afterindentifying the defects, corrective steps are carried out by the management.Under group discipline approach, group as a whole, sets the standard of disciplines andpunishments for the deviations. In this approach, trade unions also act as agencies inmaintaining discipline in work situation.
  • 68. Under the leadership approach, in disciplinary cases are dealt on the basis of legislationsand court decisions. The Industrial Employment (Standing Orders) Act, 1946 to a certainextent, prescribed the correct procedure that should be followed before awardingpunishment to an employee.Code of DisciplineThe Fifteenth Indian Labour Conference discussed the question of discipline in industryand lain down the following general principles: • There should be no lock-out or strike without notice. • No unilateral action should be taken in connection with any industrial matter. • There should be no recourse to go-slow tactics. • No deliberate damage should be caused to plant or property. • Acts of violence, intimidation, coercion or instigation should not be resorted to. • The existing machinery for settlement of disputes should be utilized. • Awards and agreements should be speedily implemented. • Any agreement which disturbs cordial industrial relations should be avoided.The Code embodies four parts. Part I contains the duties and responsibilities ofemployees, workers and the government in maintaining discipline in industry. Part IIenlists the common obligations of management and unions. Part III deals with theobligations of management only, while Part IV relates to those of the unions only. Inadditions, Annexure-A to the Code embodies the national level agreement on the criteriafor the recognition of unions. A supplementary document contains the rights ofrecognized unions and a model grievance procedure. Thus, the Code is highlycomprehensive and ethical in its approach to the industrial relations system. It has beenreproduced below.Part –I: To maintain discipline in industry (both in public and private sectors)There has to be: (i) a just recognition by employers and workers of the rights andresponsibilities of either party, as defined by the laws and agreements (including bipartiteand tripartite agreements arrived at all levels from time to time); and ii) a proper andwilling discharge by either party of its obligation consequent on such recognition.Part – II: To ensure better discipline in industry, management and union(s) agree
  • 69. • that no unilateral actions should be taken in connection with any industrial matter and that disputes should be settled at appropriate level; • that the existing machinery for settlement of disputes should be utilized with the utmost expedition. • that there should be no strike or lock-out without notice; • that affirming their faith in democratic principles, they bind themselves to settle all future differences, disputes and grievances by mutual negotiation, conciliation and voluntary arbitration; • that neither will have recourse to (a) coercion, (b) intimidation, (c) victimization, and (d) go-show; • that they will avoid (a) litigation, (b) sit-down and stay-in-strikes, and (c) lock- uts; • that they will promote constructive cooperation between their representatives at all levels and as between workers themselves and abide by the spirit of agreements mutually entered into; • that they will establish upon a mutually agreed basis a Grievance Procedure which will ensure a speedy and full investigation leading to settlement; • that they will abide by various stages in the Grievance Procedure and take no arbitrary action which would by-pass this procedure; and • that they will educate the management personnel and workers regarding their obligations to each other.Part-III Management agrees • not to increase work-loads unless agreed upon or settled otherwise; • not to support or encourage nay unfair labour practice such as: (a) interference with the right of employees to enroll or continue as union members; (b) discriminations, restraint or coercion against any employee because of recognized activity of trade unions; and (c) victimization of any employee and abuse of authority in any form; • to take prompt actions for (a) settlement of grievance, and (b) implementation of settlements, awards, decisions and orders;
  • 70. • to display in conspicuous places in the undertaking the provision of this Code in local language(s); • to distinguish between actions justifying immediate discharge and those where discharge must e preceded by a warning, reprimand, suspension or some other form of disciplinary action and to arrange that all such disciplinary action should be subject to an appeal through normal Grievance Procedure; • to take appropriate disciplinary action against its officers and members in cases where enquiries reveal that they were responsible for precipitate action by workers leading to indiscipline; and • to recognize the unions in accordance with the criteria (Annexure A given below) evolved at the 16th session of the Indian Labour Conference held in May, 1958.Part-IV: Union(s) agree • not to encourage any form of physical duress; • not to permit demonstrations which are not peaceful and not to permit rowdyism in demonstration; • that their members will not engage or cause other employees to engage in any union activity during working hours, unless as provided for by law, agreement or practice; • to discourage unfair labour practices such as: (a) negligence of duty, (b) careless operation, (c) damage to property, (d) interference with or disturbance to normal work, and (e) insubordination; • to take prompt actions to implement awards, agreements, settlements and decisions; • to display in conspicuous places in the union offices, the provision of this Code in the local language(s); and • to express disapproval and to take appropriate action against office bearers and members for indulging in action against the spirit of this Code.The Code does not have any legal section but the following moral sanctions are behind it: 1. The Central Employers’ and Workers’ Organizations shall take the following steps against their constituent units guilty of breaches of Code:
  • 71. • to ask the unit to explain the infringement of the Code; • to give notice to the unit to set right the infringement within a specific period; • to warn, and in case persistent violation of the Code; and • not to give countenance, in any manner, to non-members who did not observe the Code; and • not to give countenance, in any manner, to non-members who did not observe the Code. 2. Grave, willful and persistent breaches of the Code by any party should be widely publicized. 3. Failure to observe the Code would entail derecognition normally for a period of one year-this period may be increased or decreased by the implementing Committee concerned. 4. A dispute may not ordinarily be referred for adjudication if there is a strike or lockout without proper notice or in breach of the code as determined by an Implementation.The Code of Discipline worked well at the beginning of its introduction and had aconsiderable impact on the industrial relations scene. But, however, the impact of theCode was not sustained over a long period of time due to several problems in itsapplication and implementation. The spirit of the Code has not been imbibed by thecentral organisations which were signatories to it.According to the National Commission on Labour, the Code has had only limited successand was obviously not the answer to the industrial relations problems. The Code began torust and the parties were more eager to take it off; they developed an attitude ofindifference. As regards the future of the Code, the Commission was in favour of giving alegal form to its important provisions regarding recognition of unions, grievanceprocedure, unfair labour practices, and the like. With the removal of these provisionsfrom the Code to give them a statutory shape, the Code will have no useful function toperform.Discipline is a two-way traffic and a breach of discipline on the part of either party inindustry will cause unrest. The approach to managing discipline depends to a great extentupon managerial philosophy, culture and attitude towards the employees. A negativeapproach to discipline relies heavily on punitive measures and in the line with thetraditional managerial attitude of “hire and fire” and obedience to orders. On the otherhand, a constructive approach stress on modifying forbidden behaviour by taking positive
  • 72. steps like educating, counseling etc., The concept of positive discipline promotion aims atthe generation of a sense of self-discipline and disciplined behaviour in all the humanbeings in a dynamic organizational setting, instead of discipline imposed by force orpunishment. In brief, the approach to the disciplinary action in most cases should becorrective rather than punitive.Review Questions 1. What are the causes of indiscipline? 2. What are the principles of effective discipline? 3. State the principles of code of discipline.
  • 73. UNIT – IV7. Workers Participation in Management8. Collective Bargaining9. Wage Administration and IndustrialRelations
  • 74. Lesson 7 Workers’ Participation in ManagementWorkers participation in management is in essential ingredient of industrial democracy.The concept of workers participation in management is based in “Human Relations”approach to management which brought about new set of values to labour andmanagement.Traditionally, the concept of Workers’ Participation in Management (WPM) refers toparticipation of non-managerial employees in the decision-making process of theorganisation. Workers’ participation in management meets the psychological needs of theworkers to a greater extent. That way it may also be treated as the process of delegationof authority in the general areas of managerial functions.According to one view, workers participation is based on the fundamental concept thatthe ordinary worker invest his labour in, and ties his fate to, his place of work and,therefore, he has a legitimate right to have a share in influencing the various aspects ofcompany policy”.To quote the version of British Institute of Management, “Workers’ participation inmanagement is the practice in which employees take part in management decisions and itis based on the assumption of commonality of interest between employer and employeein furthering the long term prospects of the enterprise and those working in it”.According to G.S. Walpole, participation in management gives the workers a sense ofimportance, price and accomplishment; it given him the freedom and the opportunity forself-expression; a feeling of belonging to his place of work and a sense of workmanshipand creativity. It provides for the integration of his interest with those of the managementand makes him a joint partner in the enterprise”.Dr. Alexander considers a management to be participative, “if it gives scope to theworkers to influence its decision making process on any level or sphere or if it shareswith them some if its managerial prerogatives”.Clegg says, “It implies a situation where workers representatives are, to some extent,involved in the process of management decision making, but where the ultimate power isin the hands of the management”.
  • 75. According to Dr. Davis, “it is a mental and emotional involvement of a person in a groupsituation which encourages him to contribute to goals and share responsibilities in them”.According to Dr. Davis, “it is a mental and emotional involvement of a person in a groupsituation which encourages him to contribute to goals and share responsibilities in them”.In should be borne in mid that when individuals are provided with opportunities forexpression and share in decision-making, they show much initiative and acceptresponsibility substantially. The rationale of workers’ participation in management lies inthat it helps in creation amongst the workers a sense of involvement in their organisation,a better understanding of their role in the smooth functioning of industry and providesthem a means of self-realization, thereby, promoting efficiency and increasedproductivity.Thus the concept workers’ participation in management encompasses the following: • It provides scope for employees in the decision making of the organisation. • The participation may be at the shop level, departmental level or at the top level. • The participation includes the willingness to share the responsibility by works as they have a commitment to execute their decisions. • The participation is conducted through the mechanism of forums which provide for association of workers representatives. • The basic idea is to develop self control and self discipline among works, so that the management become “Auto Management”.ObjectivesThe scheme has economic, psychological, ethical and political objectives. • Its psychological objective of the scheme is to secure full recognition of the workers. Association of worker with management provides him with a sense of importance, involvement and a feeling of belongingness. He considers himself to be an indispensable constituent of the organisation. • Socially, the need for participation arises because modern industry is a social institution with the interest of employer, the share-holders, the community and the workers equally invested in it. • The ethical objective of participation is to develop workers free personality and to recognize human dignity.
  • 76. • The political objective of participation is to develop workers conscious of their democratic rights on their work place and thus bring about industrial democracy.Levels of ParticipationWorkers’ participation is possible at all levels of management; the only difference is thatof degree and nature of application. For instance, it may be vigorous at lower level andfaint at top level. Broadly speaking there is following five levels of participation: 1. Information participation: It ensures that employees are able to receive information and express their views pertaining to the matters of general economic importance. 2. Consultative participation: Here works are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests at the option of management and employees’ views are only of advisory nature. 3. Associative participation: It is extension of consultative participation as management here is under moral obligation to accept and implement the unanimous decisions of employees. 4. Administrative participation: It ensure greater share of works in discharge of managerial functions. Here, decision already taken by the management come to employees, preferably with alternatives for administration and employees have to select the best from those for implementation. 5. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relation to production, welfare etc. is called decisive participation.Forms of Workers’ Participation in ManagementThe forms of workers participation in management vary from industry to industry andcountry to country depending upon the political system, pattern of management relationsand subject or area of participation. The forms of workers participation may be asfollows: 1. Joint Consultation Model 2. Joint Decision Model 3. Self Management, or Auto Management Scheme 4. Workers Representation on Board
  • 77. 1. Joint consultation model: In joint consultation model the management consults with the workers before taking decisions. The workers represent their view through ‘Joint consultative Committees’. This form is followed in U.K., Sweden and Poland. 2. Joint decision model: In this form both the workers and management jointly decide and execute the decisions. This form of participation is followed in U.S.A. and West Germany. 3. Self management of auto management: In this model, the entire control is in the hands of workers. Yugoslavia is an example to this model. Where the state industrial units are run by the workers under a scheme called ‘Self Management or Auto Management Scheme’. 4. Workers’ representation on board: Under this method, the workers elect their representative and send them to the Board to participate in the decision making process.The participation of workers may be formal or informal. In the formal participation, ittakes the forms of formal structures such as Works Committee, Shop Councils,Production Committee, Safety Committee, Joint Management Councils, CanteenCommittee etc. The informal participation may be such as the supervisor consulting theworkers for granting leave, overtime, and allotment of worked or transfer of workersfrom one department to another.Workers’ Participation in Management in IndiaWorkers participation in management in India was given importance only afterindependence. Industrial Disputes Act of 1947 was the first step in this direction, whichrecommended for the setting up of Works Committees. The Joint Management Councilswere established in 1950 which increased the participation of labour in management. Themanagement scheme, 1970 gave birth to ‘Board of Management’. Since July 1975, thetwo-tire participation model called ‘Shop Council’ at the shop level and ‘Joint Councils’at the enterprise level were introduced.Based on the review and performance of previous schemes a new scheme was formulatedin 1983. The new scheme of workers participation was applicable to all central publicsector enterprises, except those specifically exempted. The scheme with equal number ofrepresentatives will operate both at shop as well as plant level. The various functions ofparticipative forum laid down in the scheme could be modified with the consent ofparties. The scheme could not make such head way due to lack of union leaders
  • 78. consensus of the mode of representation and workers’ tendency to discuss ultra-viresissues e.g. pay scales, wages etc.Prior to WPM Bill, 1990 all the schemes of participation were non-statutory andconcentrated on particular levels. For effective and meaningful participation at all levels,a bill was introduced in Parliament on 25th May, 1990. The bill provide for effectiveparticipation at all level by formulating schemes of participation. For electingrepresentatives for participation it also provides for secret ballot. The appropriategovernment may also appoint inspectors to review participation schemes and the bill alsohas provision of punishment for those who contravene any of the provision of the Act.Thus the workers’ participation schemes in India provide wide scope for application andupliftment of workers. But in practice, these schemes have not met with success thoughthey are successful in some private sector units. The factors responsible for the failureare: • Attitude of the management towards the scheme is not encouraging. The preventatives of workers are not given due recognition by the management. • The attitude of trade unions towards the schemes is negative as they consider these schemes are reducing the power of Trade Unions. Some Trade Unions boycott Joint Management Council meetings. The success these schemes require certain conditions. • Management should appreciate the scheme and accept them in full faith. • Trade unions have to cooperate with the schemes. • Workers have to be educated.Thus workers’ participation in management in India has yet to succeed. It can be done byeducating the workers, creating an environment in the organisatoin for coordination ofworkers and management.Review Questions 1. What do you understand by the concept of workers’ participation in management? What are its objectives? 2. What are the different forms of workers’ participation in management? 3. Discuss the concept of workers’ participation in management in the Indian context.
  • 79. Lesson 8 Collective BargainingIn the work situation, an individual worker has to face many problems such as, lowwages, long hours of work, loss incentive etc. These problems of an individual or fewindividuals cannot attract the attention of the employer because of their less bargainingpower. The growth of trade union increased the bargaining strength of workers andenables them to bargain for their better conditions collectively.Collective bargaining is a source of solving the problems of employees in the worksituation collectively. It provides a good climate for discussing the problems of workerswith their employers. The employees put their demands before the employers and theemployers also give certain concession to them. Thus it ensures that the managementcannot take unilateral decision concerning the work ignoring the workers. It also helpsthe workers to achieve responsible wages, working conditions, working hours, fringebenefits etc. It provides them a collective strength to bargain with employer. It alsoprovides the employers some control over the employees.The process of collective bargaining is bipartite in nature, i.e. the negotiations arebetween the employers and employees without a third party’s intervention. Thuscollective bargaining serves to bridge the emotional and physiological gulf between theworkers and employers though direct discussions.MeaningThe term collective bargaining is made up of two words, ‘collective’ – which means a‘group action’ through representation and ‘bargaining’, means ‘negotiating’, whichinvolves proposals and counter-proposals, offers and counter-offers. Thus it meanscollective negotiations between the employer and the employee, relating to their worksituations. The success of these negotiations depends upon mutual understanding andgive and take principles between the employers and employees.DefinitionsCollective bargaining has different meanings for different individuals or groups. TradeUnions, management and public interpret the term in their own ways. Let us now discusssome leading definitions:According to the Encyclopedia of social sciences, “Collective bargaining is a process ofdiscussion and negotiation between two parties, one or both of whom is a group ofpersons acting in concert. The resulting bargain is an understanding as to the terms and
  • 80. conditions which a continuing service is to be performed. More specifically, collectivebargaining is a procedure, by which employer and a group of employees agree upon theconditions of work”.Richardson says, “Collective bargaining takes place when a number of work people enterinto negotiation as a bargaining unit with an employer or a group of employers with theobject of reaching agreement on conditions of the employment of the work people”.The I.L.O. workers manual defines collective bargaining as, “negotiation about workingconditions and terms of employment between an employer, a group of employers or oneor more employer’s organizations, on the one hand, and one or more representativeworkers organisation on the other with a view of reaching an agreement.Salient Features • It is a collective process in which representatives of employers and employees participate mutually. • It is a flexible and dynamic process wherein no party adopt a rigid attitude. • It is a bipartite process whereas the representatives of workers and management get an opportunity for clear and face to face negotiation. • It is a continuous process which can establish regular and stable relationship between worker’s organisatoin and management. • It is a practical way to establish an industrial democracy. • It is a good method of promoting industrial jurisprudence. • It is good form of interdisciplinary system (i.e. a function embodying economic psychological, administrative, ethical and other aspects.) • It is a process that includes efforts from preliminary preparations to the presentation of conflicting view points, collection of necessary facts, understanding of view points, taking correct decisions etc.ImportanceWhatever labour laws may lay down, it is the approach of employers and trade unionswhich matters and unless both are enlightened, industrial harmony is not possible.Therefore, the solution to common problems can be found directly through negotiationbetween both parties and in this context the scope of collective bargaining is very great.
  • 81. Collective bargaining is really beneficial forms the stand part of employees and theirunions as well as management. If it works well, it develops a sense of self-responsibilityand self-respect among the employees concerned and thus significantly paves the way forimproved employee morale and productivity.Collective bargaining restricts management’s freedom for arbitrary action and therebymanagement learns a new code of behaviour by conceiving of the union as a method ofdealing with employees. The management also comes to know the grievances of workersin advance and it gives an opportunity to take precautionary measure. Moreover,collective bargaining opens u the channel of communication between top and bottomlevels of an organization.From the point of the view of the society, collective bargaining; if property conducted,result in the establishment of a harmonious industrial climate which helps for the socio-economic development of the nation. It builds up a system of industrial jurisprudence byintroducing civil rights in industry and ensures that management is conduct by rulesrather than by a arbitrary decisions. It extends the democratic principles from the politicalto industrial field.FunctionsProf. Butler has viewed the functions as: • a process of social change • a peace treaty between two parties • a system of industrial jurisprudenceCollective bargaining as a process of social changeCollective bargaining enhances the status of the working class in the society. Wageearners have enhanced their social and economic position in relation to other groups.Employers have also retained high power and dignity through collective bargaining.Collective bargaining as a peace treatyCollective bargaining serves as a peace treat between the employers and employees.However the settlement between the two parties is a compromise.Collective bargaining as an industrial jurisprudenceCollective bargaining creates a system of “Industrial Jurisprudence”. It is a method ofintroducing civil rights into industry. It establishes rules which define and restrict the
  • 82. traditional authority exercised by employers over their employees placing part of theauthority under joint control of union and management.In addition to the above, its functions include: • Increasing the economic strength to employers and employers. • Improving working conditions and fair wages. • Maintaining peace in industry • Prompt and fair redressel of grievances. • Promoting stability and prosperity of the industry.Principles of Collective BargainingThe success of collective bargaining is based on certain principles. These principles are tobe followed by the employers and unions. Prof. Arnold. F. Campo has laid down certainprinciples for union and management, for management and for union.For both union and management 1. Collective bargaining process should give due consideration to hear the problems on both sides. This will develop mutual understanding of a problem which is more important for arriving at the solutions. 2. Both the management and union should analyze the alternatives to arrive at the best solution. 3. There must be mutual respect on both the parties. The management should respect the unions and the unions should recognize the importance of management. 4. Both the union and management must have good faith and confidence in discussion and arriving at a solution. 5. Collective bargaining required effective leadership on both sides, on the union side and management side to moderate discussions and create confidence. 6. In collective bargaining both the union and management should observe the laws and regulations in practice in arriving at a solution. 7. In all negotiations, the labour should be given due consideration – in wage fixation, in working conditions, bonus etc.For management
  • 83. 1. Management should think of realistic principles and policies for labour regulations. 2. The recognitions of a trade union to represent the problems is more essential. If there are more than one union, the management can recognize on which is having the support of majority of workers. 3. Management should follow a policy of goodwill, and cooperation in collective bargaining rather than an indifferent attitude towards the union. 4. Managements need not wait for trade union to represent their grievances for settlement. Management can voluntarily take measures to settle the grievances. 5. Managements should give due consideration to social and economic conditions of workers in collective bargaining.For unions 1. Unions should avoid undemocratic practices. 2. Unions have to recognize their duties to the management also before emphasizing their demands. 3. Unions have to consider the benefits to all workers rather than a section of workers. 4. Strike lock-outs should be resorted to, only as a last measure. As far as possible they have to be avoided by compromise and discussion.Forms of Collective BargainingThe forms of collective bargaining differ from country to country and time to time inIndia. Collective bargaining takes the following forms: 1. Settlements under industrial disputes act: According to this, negotiations are carried out by officers according to the Industrial Disputes Act. 2. Settlements by parties: In this case settlements are arrived at by parties themselves without the interference of a third party. 3. Consent awards: Here the agreements are negotiated by the parties on a voluntary basis when disputes are subjudiced. Later these are submitted to the labour courts. 4. Direct negotiation: In this agreements are arrived at by both the parties after direct negation. The enforcement of these agreements depends upon the goodwill and cooperation of the parties.
  • 84. On the basis of the level (in which collective bargaining takes place) it can be classifiedas: 1. Plant level bargaining 2. Industry level bargaining 3. National level bargainingPlant level bargainingIt is the micro level bargaining. It takes place in the particular unit between themanagement and the trade unions of that unit.Industry level bargainingSeveral unions of the same industry form and association and negotiate with theemployers.National level bargainingIn this, the representatives of trade unions and employers at the national level willnegotiate.The Contents of Collective Bargaining AgreementsThe scope of collective bargaining has increased during the recent years. Prof. Randleobserves that the increase in the scope of collective bargaining is due to the growth oftrade unions, increased response by the managements, increased response by themanagements, increased prices and the legislations.Problems relating to security of trade unions, wages, promotions, transfers, hours andconditions or work, holidays and leave with wages, safety and health etc. are included inthe collective bargaining.The Institute of Personal Management includes the following in a collective agreement. • Nature, scope, definition and purpose of agreement. • Rights and responsibilities of management and trade unions. • Wages, bonus, production norms, leave, retirements benefits and other benefits and terms and conditions of service.
  • 85. • Grievance redressal procedure. • Methods and machinery for the settlements of possible future, disputes, and • A termination clauseThus collective bargaining includes not only the negotiation of wages, but also workingcondition, labour welfare and organizational matters.Process of Collective BargainingThe process of collective bargaining consists of two stages, (i) the negotiation state, and(ii) the contract administration.Negotiation StageAt the negotiation stage certain proposals are put forward for mutual agreement aftercareful consideration. The negotiation stage consists of three steps. • Preparation for negotiation • Negotiation procedure • Follow up actionPreparation for negotiationFirst the union will submit their fresh contract to the management before the expiry ofexisting contract (usually 30 to 60 days before the expiry). Both the management andunions will take considerable time to the preparation and negotiation.They collect the required data relating to large number of issues such as wage, salary,seniority, overtime allowance, the cost of living, the policies of trade unions andmanagement, nature of agreement in other companies etc.The company will collect such information its internal sources – such as balance sheet,contract agreements, market research reports, Govt. reports etc. The trade union alsocollects such data from their own central organisation, research staff from variousDepartment etc.The personal department prepares a personal, which includes – • Specific proposals of the company including the objectives of negotiation. • Estimating the cost of implementing the proposals.
  • 86. • Classifying the demands as demands acceptable before negotiation, demands acceptable after negotiation, demands which cannot be accepted. Such proposals are based on company’s commitment to shareholders, consumers, workers and public.Negotiation technique or procedureIn this step, a negotiation committee is to be formed by both the parties. From themanagement side the representative include the chief executives. The unions isrepresented by the leaders and centrals leaders. The committee consists of three to sixmembers.The demands are classified as demands which need bargaining and demands which maybe rejected. During negotiations, normally the easier demands are taken up first. Bothparties should have a “bargaining cushion”, and make counter proposals. For example, ademand for wage increase by the union, may be accompanied by a counter proposal forincrease in production by the management. Such negotiations go on till the “point of noreturn” is being reached. A rigid or irrevocable stance should always be avoided.Follow-up actionAt this stage, the agreement is printed and circulated among all the employees. Thesupervisors will be enlightened about the agreements for their effective implementation.Contract AdministrationAgreement will be useful if they are executed properly. As observed by Profs. Illiamsonand Harries, “if anything is more important to industrial relations than the contract itself,it is the administration of the contract”.Prof. Campo has laid down the following general principles for administering the contacteffectively; • Cooperation between both the parties is essential. Both the parties should have a tolerant attitude towards each other and have a spirit of accommodation and goodwill. • Proper procedure should be adopted for the redressal of grievances by providing opportunity to exchange views. • When a conference over the redressal of grievance reaches an impasse, the grievance should be referred to arbitration. • Both the parties should honour the commitment.
  • 87. Pre-requisite for Successful Collective BargainingCollective bargaining will be more effective under the following conditions:Negotiating teamNegotiating team should represent all groups including production, finance and industrialrelations experts. The team should be headed by an appropriate person with adequateauthority to take decisions.Recognition of unionsThe management should recognize the trade union and analyze the facts in theirrepresentation of grievances. Mutual understanding encourages mutual agreement.Open mindBoth the management and union should have open minds to listen and appreciate eachothers point of view with flexibility and adjustment.‘Home Work’ on demandsThe union and management have to collect relevant data relating wages, conditions ofwork, welfare schemes, cost of benefits.Routine problemsThe management and unions have to identify the grievances on routine basis and takeappropriate action then and there.Internal union democracyTrade unions should encourage internal union democracy by consulting the rank and filemembers.Importance to outputTrade unions should also give importance to output, quality of the products, company’simage etc., in addition to their wages, bonus, working conditions etc.Strikes/ lockoutsStrikes and lockouts should be resorted to as last measure. Before taking any decision,both the union and management should conduct periodic discussions to avoid strikes andlockouts.
  • 88. Collective bargaining has gradually been taking roots in Indian soil. Most of thecollective bargaining agreements were concluded at plant level. Some industry levelagreements were also concluded in textile industries in Bombay and Ahemadabad.The scope is widening. It includes matters relating to productivity, bonus, modernization,standing orders, voluntary arbitration, incentive schemes and job evaluation etc. Thenumber of agreement has been increasing. Most of the agreements were relating towages. In a study conducted by E.F.I. shows that out of 109 agreements 96 were relatingtowages.Thus collective bargaining is an important method of solving problems, thorough mutualunderstanding. If used properly it can solve the problems of both the parties- managementand union through mutual confidence.Collective bargaining is also used as a tool for bringing coordination between workersand managements. It also serves as tool of communication of views by both managementand works. In the long-run it will serve as an instrument for labour participation inmanagement and pave way for he cordial industrial relations in India.Collective bargaining in central public sector undertakingsCollective bargaining in central public sector undertakings is done according to theguidelines issued by the Departments of Public Enterprises (earlier known as the Bureauof Public Enterprises). This department gives the content and limits of financialcommitments which a public enterpriser can make with the union during the course ofbargaining. However, in many instances these4 limits are circumvented by themanagement by making gentleman’s promises with the unions on several issues outsidethe written agreement and implementing these promises over a period throughadministrative orders.In core industries like steel, ports and docks and banks, collective bargaining is done atthe national level for the industry as a whole. Thus, in steel industry, one main collectiveagreement is entered into by the National Joint Consultative Forum on behalf of allprivate and public sector steel units with other unions. This is followed by severalsupplementary agreements being entered into at the plant level to cover aspects notresulted in creating uniform wage structures and fringe benefit patterns in all publicsector units irrespective of the nature of industry (labour or capital intensive) and thepaying capacity of a unit as determined by its financial performance. This is in sharpcontrast to a private sector unit where its wages and fringe benefits are more geared to itsspecific requirements and circumstances.Review Questions
  • 89. 1. What do you understand by “collective bargaining”? What is its scope?2. Enumerate the principles of collective bargaining.3. What are the pre-requisites for successful collective bargaining?
  • 90. Lesson 9 Wage Administration and Industrial RelationWage is remuneration to labour for the work done or he service rendered by it to theemployees. Wage payment if the most vital and important problem that an industrialworkers is confronted with It is also one of the most difficult areas in our presentindustrial relations system. The wages constitute the earning for the workmen, which, inturn, determine his standard of living and that of his family. They also determine thestandard of his efficiency and consequently, the level of productivity. Wageadministration is also important to the employer as it constitutes one of the principal8items that enter into the cost of production of his product. The government and thecommunity at large are also vitally concerned with the problem because of a largenumber of industrial disputes center round the questions of wages and allowances.Therefore, evolution of a suitable wage structure and wage fixing machinery is importantfor the prosperity of industry, for the well-being of labour, and for the economicdevelopment of the country. However the problem of wage fixation in a moderndemocratic society is by for the most difficult of all employer-employee relationship. Theconcerned parties, namely, the employers, the works and the consumers have seeminglyconflicting interests. A delicate balance has to be struck between wages paid to theworkers, the profits passed on to the shareholders, and the services rendered to thecommunity. It cannot also be considered in isolation from the larger economic and socialbackground prevailing in the country.Wage PolicyThe term ‘wage policy’ refers to legislation or government action undertaken to regulatethe level or structure of wages, or both for the purpose of achieving specific objectives ofsocial and economic policy. The social objectives of wage policy may aim at eliminatingthe exceptionally low wages, the establishing of fair standards, the protection of wageearners from the impact of inflationary tendencies; and at increasing the economicwelfare of the community as a whole. “The social and economic aspects of wage policyare normally inter-related; measures inspired by social considerations inevitably haveeconomic effects and action designed to achieve specific economic results has socialimplications. When the social and economic implication of measures of wage-policyconflict, a choice has to be made”.A wage policy may be viewed from three different angels. At the macro economic level,the problem is that of resolving the conflict between the objectives of an immediate risein the standard of living of workers, additional employment and capital formation. At the
  • 91. semi-aggregative level, the problem is that of evolving a wage structure which isconducive to economic development. At the plant level, the problem is that of a systemwhich provides incentives to increasing productivity and improving the quality ofworkers.Objectives of a Wage PolicyThe ILO publication has enumerated the following objectives of a wage policy indeveloping countries: • To abolish malpractices and abuses in wage payment. • To set minimum wages for workers whose bargaining position is weak because they are unorganized or inefficiently organized, accompanied by separate measures to promote the growth of trade unions and collective bargaining. • To obtain for the workers a just share in the fruits of economic development, supplemented by appropriate measures to keep workers’ expenditure on consumption goods in step with available supplies so as to minimize inflationary pressure; and • To bring about a more efficient allocation and utilization of manpower through wage differentials and where appropriate, systems of payment by results. In India, the objectives of a national wage policy may be stated thus: • To provide minimum wages to workers employed in sweated industries • To fix wage ceilings • To improve the existing wage-structure • To control inflationary tendencies • To accelerate export promotion and • Other objectives.Provision of minimum wages in sweated industriesIn a country like India, where labourers are exploited in the sweated industries, the basicneed is to provide for “safety net” wages to prevent its exploitation. According to Turner,“The protection of workers against exploitation or unduly low wages remains wager
  • 92. policy’s major pre-occupation for the under-developed areas”. The fixing of minimumwage is also necessary to boost up industrial employment, partly to smooth the flow oflabour from the farm to expanding modern industries; and partly to cover the differentialsin wage rates so that wages paid to employees doing identical work are rationalized.Thus, the wage policy should aim at a minimum wage in sweated occupation as well as afloor for entry to industrial employment.Fixation of wage ceilingsCeilings on wages need be fixed to save employees from the pinch of inflationarytendency that follow from uncontrolled price movement. The workers should get a justshare in the fruits of economic development and increased productivity. Productivity andefficiency can be boosted by giving incentives to them and by improving the investmentcapacity of industries by plaughing back a part of the profit in the industry.Improvement in existing wage structureDesirable or rational wage structure facilitates the acquisition of productive skills, servesas an incentive to higher productivity and wage income, and encourages the allocation oflabour to the expanding sectors of economy in which labour is in great demand. Justiceand fairness demand that a sound relationship should exist between rates of ay fordifferent groups in similar occupations.The jobs which demand a higher degree of skill, training, experience, responsibility,mental and physical effort and hazards should be paid more than those having lowerrequirement. According to Clark Kerr, “improving worker efficiency and performance,encouraging the acquisition of skills and providing and incentive of labour mobilityshould be the real purpose of a wage policy in a developing economy”.Control over inflationary tendenciesControlling inflationary pressures should be an essential element of wage policy, forincreasing prices erode workers’ real income and lower down their standard of living andultimately cause industrial unrest. The wage policy should, therefore, aim at stabilizingprices by tying wage increases to productivity.Acceleration of export promotion
  • 93. To get imports of essential capital goods, technical know-how, trained manpower andraw materials, foreign exchange need be earned by promoting exports through increasedproductivity of exportable goods and price stability or price reduction wherever possible.A wage policy should help to accelerate a nations’ development process.Other objectives • To bring social justice to workers and equal opportunities of personal development through the development of socialistic pattern of society; as provided by the Directive Principles of the State Policy in the Constitution. • To maintain industrial peace, which cannot be achieved only through statutory measures and ban on strikes and lockouts and compulsory arbitration • To provide guidance to various authorities charged with the task of wage fixation and revision. • To develop the skill of newly recruited industrial labour and other manpower resources.Dr. Giri has said, “ A national wage policy must aim at establishing wages at the highestpossible level, which the economic conditions of the country as a whole resulting fromeconomic development”.Thus, it may be said that “the protection of workers against exploitation or unduly lowwags, improving workers’ efficiency and performance, encouraging acquisition ofstrikes, providing and incentive to labour mobility, stabilizing prices and acceleration ofthe nation’s development process should be the real purpose and the need for a nationalwage policy.”It may be observed that no serious attempt has so far been made at the level, forformulating a national wage policy; and there does not appear to be a formallyproclaimed wage policy in India.Wage Regulation MachineryIn unorganized industries, wages are fixed and revised under the Minimum Wages Act,1948. But for other industrial workers, they are fixed by several well-establishedprocedures or practices available for wage-fixation and wage revision. These aresettlements in conciliation of wage disputes, collective bargaining at the plant level,bipartite wage revision committees in several industries, adjudication, and arbitration.Lately, Wage Boards have also been created.Wage Board
  • 94. Wage Board is a tripartite body, having representation of the employers and labourbesides, independent members. The representatives of the former two interests arenominated by their central organisatoins; others are nominated by the Government. It isan important machinery of State regulation of wages.Growth and developmentAfter independence, the Industrial Disputes Act was enacted under which disputedregarding wages could be settled through adjudication. But the parties were not satisfiedwith this system. The idea of setting up of tripartite Wage Boards was, therefore, mootedand endorsed in the First Plan. But no action was taken during that Plan period.However, the Second Plan emphasized the need to determine wages through industrialwage boards. It observed, “the existing machinery for settlement of wage disputes has notgiven full satisfaction to the parties concerned. A more acceptable machinery for settlingwage disputes will be one which gives he parties themselves a more responsible role inreaching decisions. An authority like a tripartite Wage Board, consisting of equalrepresentative of employers and workers and an independent chairman will probablyensure more acceptable decisions. Such wage boards should be instituted for individualindustries in different areas”.This recommendation was subsequently reiterated by the 15 th Indian Labour Conferencein 1957 and various Industrial Committees. The Government decision to set up the firstwage board in cotton textile and sugar industries in 1957 was also influence by theReport of the ILO’s expert.Composition and functions of wage boardThe composition of wage boards is, as a rule, tripartite representing the interests of labor,management and the public. Labour and management representatives are maintained inequal numbers by the government, with consultation and consent of the major centralorganizations. Generally, the labor and management representatives are selected from theparticular industry being investigated. These boards are chaired by government-nominated members representing the public.They function industry-wise with broad terms fo reference, which include recommendingthe minimum wage, differential cost of living compensation, regional wage differentials,gratuity, hours of work, etc.The Wage Boards are required to: • determine which categories of employees (manual, clerical, supervisory etc.) are to be brought within the scope of the wage fixation;
  • 95. • to work out a wage structure based on principles of fair wages as formulated by the Committee on Fair Wages. • the system of payment by results; • to work out the principles that should govern of bonus to workers in respective industries.In addition to these common items, some wage boards may also be asked to deal with thequestion of “bonus” (like that of the wage boards for cement, sugar and jute industries);gratuity (like that of the wage boards for the iron ore mining, limestone and dolomitemining industries and the second wage board on cotton textile industry; demands inrespect of payments other than wages (wage boards of jute and iron and steel industry);hours of work ( rubber plantation industry), interim relief (like that of the wage boards forjute industry and port and dock workers).Some wage boards (like that of the wage boards for sugar, jute, iron ore, rubber, tea andcoffee plantation, limestone and dolomite mining industries) have been required to takeinto account the ‘special features of the industry’.Thus, wage boards have to deal with a large range of subjects of which the fixation ofwage-scales on an industry-wise basis constitutes the biggest of all the issues beforethem.Evaluation of wage boardsThe Committee set up by the National Commission on Labour identified three majorproblems from which the wage boards suffer: • Majority of the recommendations of wage boards are not unanimous; • The time taken by the wage boards to complete their task has been rather unduly long; and • Implementation of the recommendations of the wage boards has been difficult. The Committee made some important recommendations as below: • The Chairman of the wage board should be selected by common consent of the organisation of employees and employees in the industry concerned. • In future the wages board should function essentially as a machinery for collective bargaining and should strive for unity. • Wage boards should be assisted by technical assessors and experts.
  • 96. • Terms of reference of wage boards should be decided by Government in consultation with the organisation of employers and the workers concerned. • A central wage board should be set up in the Union Ministry of Labour on a permanent basis to serve all wage boards through the supply of statistical and other material and lending of the necessary staff. • Unanimous recommendations of wage boards should be accepted and in case of non-unanimous recommendations, government should hold consultations with the organisation of employers and employees before taking a final decision. • Wage boards should not be set up under any statues, but their recommendations as finally accepted by the Government should be made statutorily binding in the parties. • For Industries covered by wage boards, a permanent machinery should be created for follow-up action; and • Wage-boards should complete their work in one year’s time and the operation of the recommendation of a wage board should be between two or three years, after which need for a subsequent wage boards should be considered on merit.In these recommendations are accepted, the working of wage boards may be made moreeffective.The institution of wage boards has come to be widely accepted in India as a viable wagedetermination mechanism. Both unions and employers’ organizations have supported itfrom its very inception, and have been willing to accept changes to make it more efficientand productive. It has succeeded in promoting industry-wise negotiations, as contrastedto enterprise-level decisions under adjudications, more acceptable agreements on wagesand other conditions of employment of industrial peace. Furthermore, in addition toencouraging greater participation by the parties and freedom in decision-making, theboards have functioned with responsibility and restraint and their recommendations havenot undermined the efficiency of the industry.However, delays involved in actual working of the boards and imperfect implementationof the reconditions has been often the cause of anxiety, but these can be reduceconsiderably if collection and tabulation of basic information and relevant data on wagefixation is done on a running and continuing basis in respect of all major industries/employments.Review Questions 1. What is a wage policy? What are its objectives?
  • 97. 2. What are wage boards? What are its functions?
  • 98. UNIT –V10. Employee Communication11. Worker’s Education and Training
  • 99. Lesson 10 Employee CommunicationMore effective human relations is engendered through adequate communication. Theorigin of the word “communication” lies in the Latin word “communis” denoting“common”. Therefore communication is concerned with imparting a common idea orunderstanding and covers any type of behaviour resulting in an exchange of meaning.An executive’s working day is filled with communication of different types like orders,reports, conversations and rumours. Communication is vital in the relationship betweenexecutive and their subordinates. It is through effective communication that an executiveultimately gets work done by others. Therefore to be effective, every executive mustknow how to communicate. Whilst the tradionalists viewed the communication purposeas providing the means whereby a plan can be implemented and action coordinatedtowards the common goal or end result; the behaviouralists looked upon it as a meanswhereby persons in the organisatoin can be motivated to execute such plansenthusiastically and willingly. Whatever viewpoint is accepted, effective communicationsrequires an appreciation of its meaning and objectives as well as of the barriers whicheffective communication.Objectives of CommunicationManagement depends upon communications to achieve organizational objectives. Sincemanagers work with and through other people, all their acts, policies, rules, orders andprocedures must pass through some kind of communication channel. Also there must bechannel of communication for feedback. Accordingly, some of the purposes ofcommunication are: • To discourage the spread of misinformation, ambiguity and rumors; which can cause conflict and tension. • To foster any attitude which is necessary for motivation, cooperation and job satisfaction. • To develop information and understanding among all workers and this is necessary for group effort. • To prepare workers for a change in methods of environments by giving them necessary information in advance.
  • 100. • To encourage subordinates to supply ideas and suggestions for improving upon the product or work environment and taking these suggestions seriously. • To improve labour-management relations by keeping the communications channels open and accessible. • To encourage social relations among workers by encouraging inter- communication. This would satisfy the basic human need for a sense of belonging and friendship.Importance of CommunicationInter-personal roles require managers to interact with supervisors, sub-ordinates, peersand other outside the organisation. Thus, or co-ordinate action, communication isnecessary. Communication transforms a group of unrelated individuals into a term thatknows what its goals are and how it will try to reach them.Communication allows people to co-ordinate by providing them with a way to shareinformation. The first type of information that needs to be shared is what the goals of theorganisatoins are. People need to know where they are heading and why. They also needdirections for their specific tasks.Communication is especially important for the task of decision-making. Decision-makesmust share their views on what the problem is and what the alternatives are. Once adecision has been made, communication is necessary to implement the decision and toevaluate its results.Communication also allows people to express their emotions. Communications offeelings can be very important to employee morale and productivity. Employees who feelthat they cannot vent their anger or express their joy on the job may feel frustrated andrepressed.On any given day, a manager may communicate for all the purposes described above.Communication goes up, down and across the levels of the organization’s hierarchy.Communication ProcessThe following figure presents a general way to view the communication process – as aloop between the source and the receiver. In the simplest kind of communication, boththe sender and the receiver perform the encoding and decoding functions automatically.
  • 101. Sending Transmission Decoding Encoding (through channels) Sources Noise Receiver Sender Decoding Transmission EncodingSource/senderThe communication cycle begins when one (called the sender) wants to transportmeaning-a fact, idea, opinion or other information-to someone else. A manager, forinstance, might call the research departments to send to the latest information on aparticular market.EncodingThe second step is to encode the message into a form appropriate to the situation. Theencoding might take the form of words, facial expressions, gestures, and physical actionsand symbols like numbers, pictures, graphs etc. Indeed, most communication involves acombination of these. The encoding process is influenced by the content of the message,the familiarity of the sender and receiver and other situational factors.TransmissionAfter the message has been encoded, it is transmitted through the appropriate channel ormedium. Common channels or media in organizations include face-to-facecommunication (using the media of sound waves, light etc.), letters, and reports etc. (The
  • 102. channel by which an encoded message is being transmitted to you at this moment is theprinter page).DecodingThe person to whom the message in sent the receiver) interprets the meaning of themessage through the process of decoding. This process may be simple and automatic, butit can also quite complex. Even when you are just reading a letter, you may need to useall your knowledge of the language, your experience with the letter-writer and so on. Ifthe intended message and the received message differ a great deal, communication hasbroken down (communication gap) and misunderstanding is likely to follow.ReceiverThe receiver can be an individual, a group, or an individual acting on behalf of a group.The sender has generally little control over how the receiver will deal with the message.The receiver may ignore it, decide not to try to decode or understand it or respondimmediately. The communication cycle continues when the receiver responds by thesame steps back to the original sender, which is called ‘feedback’.NoiseIn the communication process, noise takes on a meaning slightly different from its usualone. Noise refers to any type of disturbance that reduces the clearness of the messagebeing transmitted. Thus, it might be something that keeps the receiver from paying closeattention such as someone coughing. Other people talking closely, a car driving by etc., itcan be a disruption such as disturbance in a telephone line, weak hunger or minorailments which may affect the message.Methods of CommunicationThere are mainly three primary methods of communicating in organizations, i.e. written,oral, and non-verbal. Often the methods are combined. Considerations that effect thechoice of method include the audience (whether it is physically present), the nature of themessage (its urgency or secrecy), and the cost of transmission. The figure given belowshows various forms each method can take
  • 103. Methods of communication in organizations Written Letters Memos Reports Oral Manuals Forms Information Conversations Task-related exchange Group Discussions Non-Verbal Formal Speeches Human Elements: Facial expressions Body language Environmental Elements: Office design Building architectureTypically organisations produce a great deal of written communication of many kinds. Aletter is a formal means of communicating with an individual, generally someone outsidethe organisatoin. Probably the most common form of written communication inorganisatoins is the office memorandum, or memo. Memos usually are addressed to aperson or group inside the organisatoin. They tend to deal with a single topic and aremore impersonal, but less formal than letters. Other common forms of writtencommunication include reports, manuals and forms. Reports generally summarize theprogress or results of a project and often provide information to be used in decision-making. Manuals have various functions in organizations. Instructions manuals tellemployees how to operate machines; policy and procedures manuals inform them towork-related problems. Forms are standardized documents on which to reportinformation. As such, they represent attempts to make communication more efficient andinformation more accessible. A performance appraisal form is an example.Oral Communication
  • 104. Oral communication, also known as face-to-face communication is the most prevalentform of organizational. It may be in the form of direct talk and conversation between thespeakers and listeners when they are physically present at one place or through telephoneor intercom system conversation. Where one-way communication is required, then oralcommunication may include public address system. Informal rumour mill or grapevineare also popular form of oral communication. It is most effective for leaders to addressthe followers via public address system or audio-visual media. Oral communication isparticularly powerful because the receiver not only hears the content of the message, butalso observes the physical gestures associated with it as well as changes in tone, pitch,speed and volume of the spoken word. The human voice can impart the message muchmore forcefully and effectively than the written words is an effective way of changingattitudes, beliefs and feelings, since faith, trust and sincerity can be better judged in aface-to-face conversation rather than in written words.AdvantagesSome of the advantages of oral communication are: • It is direct, time saving and least expensive form of communication. • It allows for feedback and spontaneous thinking, so that if the receiver is unsure of the message, rapid feedback allows for early detection by the sender so that corrections can be immediately made, if necessary. • Because the message is conveyed instantaneously, it helps in avoiding delays; red tape and other formalities. • It conveys a personal warmth and friendliness and it develops a sense of belonging because of these personalized contracts.Disadvantages • There is not formal record of communication so that any misunderstood message cannot be referred back to what was actually said. • If the verbal message is passed on long the hierarchical chain of command, then some distortions can occur during the process. The more people the message must pass through, the greater the potential distortion. • Lengthy and distant communication cannot be effectively conveyed verbally. • The receiver may receive the message in his own perception and thus misunderstand the intent of the message.
  • 105. • Spontaneous responses may not be carefully though about. • The spirit of authority cannot be transmitted effectively in verbal transactions. • More or less or a different meaning might be conveyed by manner of speaking, tone of voice and facial expressions.Written CommunicationA written communication is put in writing and is generally in the form of instructions,letters, memos, formal reports, rules and regulations, policy manuals, informationbulletins and so on. These areas have to be covered in writing for efficient functioning ofthe organisation. It is most effective when it is required to communicate information thatrequires actions in the future and also in situations where communication is that ofgeneral informational nature. It also ensures that every one has the same information.Advantages • It serves as evidence of events and proceedings. • It provides a permanency of record for future references. The message can be stored for an indefinite period of time. • It reduces the likelihood of misunderstanding and misinterpretation. The written communications are more likely to be well considered, logical and clear. And the message can be checked for accuracy before it is transmitted. • It can save time when many persons must be contacted at the same time. • It is more reliable for transmitting lengthy statistical data. • It appears formal and authoritative for action.Disadvantages • It can be very time-consuming, specially for lengthy reports. • There is no immediate feedback opportunity to be sure that the receiver has understood the message. • Confidential written material may leak out before time, causing disruption in its effectiveness. • It leads to excessive formality in personal relations.
  • 106. Non-verbal communicationSome of the meaningful communication is conveyed through non-verbal ways. Evensome of the verbal messages are strengthened or diluted by non-verbal expressions.These non-verbal expressions include facial expressions and physical movement. Inaddition, some of the environmental elements such as building and office space canconvey a message about the authority of the person. According to Tipkins and McCarter,facial expressions can be categorised as: • Interest-excitement • Enjoyment-joy • Surprise-startle • Distress-anguish • Fear-terror • Shame-humiliation • Contempt-disgust; and • Anger-ragePhysical movements or body language is known as “kinesics”. A handshake is probablythe most common form of body language and tells a lot about a person’s disposition.Other examples of body language are tilting of head, folding of arms or sitting position ina chair.Our facial expressions can show anger, frustration, arrogance, shyness, fear and othercharacteristics that can never be adequately communicated through written word orthrough oral communication itself. Some of the other body language symptoms areshrugging our shoulders for indifference, wink an eye for mischief or intimacy, tap ourfingers on the table for impatience and we slap our forehead for forgetfulness. As for usenvironmental elements are concerned, a large office with plush carpeting and expensivefurniture conveys a message of status, power and prestige such as that of a chiefoperating officer. On the other hand, a small metal desk on a corner communicates thestatus of a low ranking officer in the organizational setting. Accordingly non-verbalactions have considerable impact on the quality of communication.Communication networks
  • 107. A communication network is the pattern of information exchange used by the membersof a group. Subordinate Senior Manager Subordinate Manager Subordinate Manager Assistant Subordinate Manager WHEEL Management Trainee Communication networks CHAIN CIRCLE Task Force Task Force Member Member Task Force Task Force Member Member ALL-CHANNEL Informal Group Informal Group Member Member Informal Group Informal Group Member Member
  • 108. When the members of a group communicate mostly with the group leader, a wheelnetwork develops. When the members of a group are on different levels of theorganization’s hierarchy, a chain network is likely. Members or a task-force or committeeoften develop a circle network of communication with each person communicatingdirectly to the other members of the task-force. Informal groups that lack a formal leaderoften form an all-channel network – that everyone communicates with everyone else.The density of the communication refers to the total quantity of communication amongmembers. The distance between members describes how far a message must travel toreach the receiver. The ease with which members can communicate with others Imeasured by members’ relative freedom to use different paths to communicate.Members’ commitment to the group’s work is defined by the centrality of the position ofthe members. All these provide insight into possible communication problems. Forinstance, a group with high density and distance can expect a lot of noise distortion in itscommunications, as messages travel a long distance to their receives.
  • 109. The following factors influence the formation of communication patterns within smallgroups: 1. Type of task: If the task of the group is simple – a chain or wheel network will probably arise. For hand task, all channel network will arise. 2. The environment: The environment including the group’s seating arrangement and meeting place also affects communication patterns. For instance, if members always sit around a table, then circle network will arise. 3. Group performance factors: The group performance factors like group’s size, composition, norms and cohesiveness also affect the formation of communication networks. For instance, it is much easier to have an all-channel network in a group of eight than in a group of eighty.Managers must make use of all these characteristics and tendencies to help groupscommunicate and work most efficiently. A manager who sees that a wheel network isforming around and experienced, trusted employee may not interfere with the process. Ifan assertive but irresponsible employee becomes the hub of such a wheel, the mangermay need to take action. If the manager relies on a group to help make decision, themanager may encourage silent group members to seek in order to get the desireddecisions.Forms of Organizational CommunicationAlthough interpersonal and group forms of communication pertains even at the broadestorganizational levels, they do not sufficiently describe the paths of all messagetransmitted in organizations. Individuals can send and receive messages across wholeorganizational levels and departments by means of vertical communication or theinformation communication network. Non-verbal communication is also important andcan be part of interpersonal, group and organizational communication.Vertical communicationVertical communication is communication that follows both up and down theorganizational hierarchy. The communication typically takes place between manages andtheir superiors and sub-ordinates.Upward communicationUpward Communication consists of messages moving up the hierarchy from sub-ordinates to superiors. The content of upward communication usually includes requests,suggestions or complaints and information the sub-ordinate thinks is of importance to thesuperior.
  • 110. Downward communicationDownward Communication consists of messages moving down the hierarchy fromsuperiors to sub-ordinates. The content of downward communication often includesdirectives, assignments, performance feedback and information that the superior thinks isof value to the sub-ordinate.For example, at TELCO, with a view to facilitate expeditious and simultaneouscommunicate to the workers on their jobs, the Worker is provided with a public addresssystem. Dissemination of information is regard to such maters as procedural change andcompany’s policies on transfers, promotion etc. is done through circulars and notice putup on the notice boards. In addition, magazines such as Telco News, Telco Flashes andTelco Ek Samuday provide details with regard to the company’s activities in differentspheres.Transactional communicationWenburg and Wilmont suggest that instead of communication being “upward” or“downward” which is inter-communication, it should be “transactional” communicationwhich is mutual and reciprocal because, “ all persons are engaged in sending encoding”and receiving (decoding) messages simultaneously. Each person is constantly sharing inthe encoding and decoding process and each person is affecting the other”. In thetransactional process, the communication is not simply the flow of information, but itdevelops a personal linkage between the superior and the subordinate.Informal CommunicationAnother term for informal communication network is the grapevine informal networksare found in all organizations. It is in the form of gossip in which personal spreads amessage to as many others as possible who may either keep the information tothemselves or pass it on to others. The content of gossip is likely to the personalinformation or the information about the organisation itself.Managers should have some control over the informal network. For example, thegrapevine in an organisation may be carrying harmful information, false information orpolitically motivated information. When these kinds of rumours are being spread,manages may need to intervene. They can gold open meetings and objectively discuss theissues that are being informally discussed already. They may also issues a clearly wordedmemo or report stating the facts and thereby help minimize the damage that the informalnetwork can do.Managers can also obtain valuable information from the grapevine and use it fordecision-making.
  • 111. Other Forms of CommunicationOne that has become especially popular of late is rather colloquially labeled“management by wandering around”. The basic idea is that some managers keep in touchwith what’s going on by wandering around and talking with people-sub-ordinates,customers, dealers and any one else involved tithe company in any way. This will givemanagers new ideas and a better feel for the entire company.Barriers to CommunicationThe communication must be interpreted and understood in the same manner as it wasmeant to be sent by the sender, otherwise it will not achieve the desired result and acommunication break-down will occur. There are certain external road blocks to effectivecommunication. In addition, there are personal factors which affect communication.Some of the organizational barriers and some of the interpersonal barriers to effectivecommunication are discussed below:Noise BarriersNoise in any external factor which; interferes with the effectiveness of communication.The term is derived from noise or static effects in telephone conversation or radio wagetransmission. It may cause interference in the process of communication by distraction orby blocking a part of the message or by diluting the strength of the communication. Someof the sources contributing towards noise factor are:Poor timingA message sent on poor timing acts as a barrier. For instance a last minutecommunication with a deadline may put too much pressure on the receivers and mayresult in resentment. A message must be sent at an appropriate time to avoid theseproblems. Hence the manager must know when to communicate.Inappropriate channelPoor choice of channel communication can also be contributory to the misunderstandingof the message. The manager must decide whether the communication would be mosteffective if it is in writing or by a telephone call or a face-to-face conversation or acombination of these modes.Improper or inadequate informationThe information must be meaningful to the employee. It must be precise and to the point.Too little or too much information endangers effective communication. Ambiguity in useof words will lead to different interpretations.
  • 112. Physical distractionsAny physical distractions such as telephone interruptions or walk-in visitors can interferewith the effective face-to-face communication process.Organizational structureCommunication may be blocked, chaotic or distorted if the channels are not clear or ifthere are bottlenecks or dead ends. Hence the organisation structure should be such thatthe chain of command and channels of communication are clearly established and theresponsibility and authority are clearly assigned and are traceable.Information overheadOverload occurs when individuals receive more information than they are capable ofprocessing. The result could be confusion or some important information may be laidaside for the purpose of convenience.Network breakdownNetwork breakdown may be intentional or due to information overload and timepressures under which a communication has to be acted upon. Some factors contributingto such disruption are: • Important negative information may be withheld by the managers. • The secretary may forget to forward a memo. • There may be professional jealousy resulting in closed channels.Interpersonal BarriersThere are may interpersonal barriers that disrupt the effectiveness of the communicationprocess and generally involve such characteristics of either the sender or the receiver thatcause communication problems. Some of these are:FilteringFiltering refers to intentionally withholding or deliberate manipulation of information bythe sender, either because the sender believes that the receiver does not need all theinformation or that the receiver is better off not knowing all aspects of a given situation.It should also be that the receiver is simply told what he wants to hear.
  • 113. Semantic barriersThese barriers occur due to differences in individual interpretations of words andsymbols. The words and paragraphs must be interpreted with the same meaning as wasintended. The choice of a wrong word or a comma at a wrong place in a sentence cansometimes alter the meanings of the intended message. For example, a night clubadvertisement sign, “clean and decent dancing every night except Sunday”, could lead totwo interpretations. First, that there is no dancing on Sundays and second, that there isdancing on Sundays, but it not clean and decent.PerceptionPerception relates to the process through which we receive and interpret information fromour environment and create a meaningful work out of it. Different people may perceivethe same situation differently. Hearing what we want to hear and ignoring informationthat conflicts with what we know can totally distort the intent or the content of themessage. Some of the perceptual situations that may distort a manager’s assessment ofpeople resulting in reduced effectiveness of the communication are: • A manager may perceive people to belong to one category or another as stereotypes, rather than unique and distinct individuals. For example, he may perceive women to be less efficient managers. • A manager may make total assessment of a person based on a single trait. A pleasant smile may make a positive first impression. • A manager may assume that his subordinate’s perception about things and situation are similar to his own.This perception limits the manager’s ability to effectively respond to and deal withindividual difference and differing views of work situations.Cultural barriersThe cultural differences can adversely affect the communication effectiveness, speciallyfor multi-national companies and enterprise.Sender credibilityWhen the sender of the communication has high credibility in the eyes of the receiver, themessage is taken much more seriously and accepted at face value. If the receiver hasconfidence, trust and respect for the sender, then the decoding and the interpretations ofthe message will lead to a meaning of sender. Conversely, if the sender is not trusted,then the receiver will scrutinize the message heavily and deliberately look for hidden
  • 114. meanings or tricks and may end up distorting the entire message. Similarly, if the sourceis believed to be an expert in a particular field then the listener may pay close attention tothe message, and believe it specially if the message is related to the field of expertise.EmotionsThe interpretation of the communication also depends upon the state of the receiver at thetime when message is received. The same message received when the receiver is angry,frustrated or depressed may be interpreted differently than when he is happy. Extremeemotions are most likely to hinder effective communication because national judgmentsare replaced by emotional judgments.Multi-meaning wordsMany words in English language have different meanings when used in differentsituations. Accordingly, a manager must not assume that a particular work means thesame thing to all people who use it. Hence, the managers must make sure that they usethe word in the same manner as the receiver is expected to understand it, otherwise it willcreate a barriers to proper understanding of the message.Feedback barriersThe final source of communication barriers is the feedback or lack of it. Feedback is theonly way to ascertain as to how the message was interpreted.Overcoming Communication BarriersIt is very important for the management to recognize and overcome barriers to effectivecommunication for operational optimization and this would involve diagnosing andannualizing, situations, designing proper messages, selecting appropriate channels forcommunicating these messages, assisting receivers of massages in correct decoding andinterpretation and providing an efficient and effective feedback system. Some of the stepsthat can be taken in this respect are as follows: 1. Feedback: Feedback helps to reduce misunderstandings. The information is transferred more accurately when the receiver is given the opportunity to ask for clarifications and answer to any questions about the message. Two-way communication, even though more time-consuming, avoids the message. Two- way communication even though more time-consuming, avoids distrust and leads to trust and openness which builds a healthy relationship contributing to communications effectiveness. 2. Improve listening skills: Good listening habits lead to better understanding and good relationships with the each other. Some guidelines for effective listening are:
  • 115. • Listening requires full attention to the speaker. Do not let your mind wander or be preoccupied with something else, otherwise you would not be able to grasp the meaning of the message in its entirety.• The language used, tone of the voice and emotions should receive proper attention. Listen for feelings in the message content and respond positively to these feelings.• Ask questions to clarify any points that you do not understand clearly and reflect back to the speaker your understanding of what has been said.• Make sure that there are no outside interruptions and interference during the course of conversation.• Do not prejudice or value the importance of the message due to your previous dealings and experiences with the sender or your perceptions about him, positive or negative.• Don’t jump to conclusions before the message is over and is clearly understood.• Summarize and restate the message after it is over to make sure about the content and the intent of the message.3. Develop writing skills: Clearly written messages can help avoid semantic and perception barriers. A well written communication eliminates the possibility of misunderstanding and misinterpretation. When writing messages it is necessary to be precise thus making the meaning as clear as possible so that it accomplishes the desired purpose. Some helpful hints in written communication are suggested by Robert Degise as follows:• Keep words simple: This will reduce your thoughts to essentials and the message will be easier to understand by the receiver. The message will be lost if the words are complex and do not lend to a clear single meaning.• Do not be bogged down by rules of composition. While the rules of grammar and composition must be respected, they should not take priority over the ultimate purpose of the communication.
  • 116. • Write concisely: Use a few words as possible. Do not be brief at the cost of completeness, but express your thoughts, opinions and ideas in the fewest number of words possible. • In specific: Vagueness destroys accuracy which leads to misunderstanding of the meaning or intent of the message. Accordingly, be specific and to the point. 4. Avoid credibility gaps: Communication is a continuing process and the goal of the communication is complete understanding of the message as well as the creation of trust among all members of the organisation. Accordingly, the management must be sincere and should earn the trust of the subordinates. Management should not only be sensitive to the needs and feelings of works but also its promises should be supported by actions. Accordingly to studies conducted by J. Lift, openness and an atmosphere of trust builds healthy relationship and closes credibility gaps, thus contributing to communications effectiveness.Guidelines for Effective CommunicationThese guidelines are designed to help management improve their skills in communicatingso as not only avoid any barriers to effective communication, but also to strengthen thebasis for optimum results which depend upon the clear understanding of the desiredcommunication.The ideas and messages should be clear, brief and preciseThe ideas to be communicated must be well planned and clearly identified. This willeliminate ambiguity so that the message will not be subject to more than oneinterpretation. The message must be clear, precise and to the point and free fromdistortions and noise. It should also be clear, precise and to the point and free fromdistortions and noise. It should also be brief so that it is just necessary and sufficient andshould avoid loose ends or meaningless and unnecessary words.Sense of timingThe message should not only be timely so that the decisions and actions can be taken intie and when necessary, but also the timing of the message and the environmental settingin which the message is delivered and received is equally important.Integrity
  • 117. The communication must pass through the proper channels to reach the intended receiver.The communication flow and its spread must avoid by passing levels or people. Whenthese concerned levels are omitted or bypassed, it creates bickering, distrust, confusionand conflict. Accordingly, the established channels must be used as required.Consult with others who are involved in planning the communicationIf people have participated in the planning process, they would be highly motivated togive active support to such communication and would carry it through. The people whoare concerned must know exactly what they need and when they need thecommunication.Consider the receiver’s interestTake the receivers interest into account, then the receiver will be more responsive to thecommunication. The management must clarify any part of the communication that maybe necessary and must encourage comments, questions, and feedback. The managementmust always be helpful in carrying out the intended message of the communication.Mode of deliveryWhile delivering the communication, avoid negative statements like, “I am not sure itwill work”, but be confident and definitive. The success of the communication alsodepends upon the tone of the voice if the communication is verbal, expression andemotions exhibited, attentiveness to the receiver and so on. The written communicationshould be polite and unambiguous.Use proper follow-upAll communications need a follow-up to ensure that these were properly understood andcarried out. The response and feedback to the communication should determine whetherthe action to the communication has been prompt, appropriate and accurate.Communication should be comprehensiveCommunication should be complete so as not only to meet the demands of today but,should also be based on future needs of the organisation as well as individuals.Recently, the nature of managerial and organizational communication has changeddramatically, mainly because of break through the electronic technology and advent ofcomputers. Now cellular phones, E-mail and Internet have made the communicationquick and convenient. It is not even possible for managers from different cities to ‘meet’by teleconferencing method without leaving their offices. At the same times,
  • 118. psychologists are beginning to discover some problems associates with these newadvances in communication.Role of Communication in Industrial RelationsThe overall objective of the communication system is to create a sense of oneness amongthe people and to secure the individual’s identification with the organisation. It is vital inthe relationship between executives and their subordinates. Through propercommunication the management is able to keep its employees well informed with itsultimate objectives and what it expects from each individual. If such information isshared freely, the management can will the confidence and the employees can be properlyprepared for accepting necessary changes by avoiding unnecessary misgivings. Thus,communication seeks to unify, coordinate and combine the entire employee for theachievement of organizational objectives. As put b Charles E. Redfield, ‘Communicationis the mechanism through which human relations have developed”. “It is claimed that it isimpossible to have human relations without communication”. There can be no denyingthe fact that the adequacy and effectiveness of communication system largely determinesthe success and progress of an organisation.Review Questions 1. Define communication and bring out the importance of organizational communications. 2. What are the steps in communication process? 3. What are the different types of communication? 4. Identify the barriers to effective communication and discuss how they can be overcome? 5. Discuss how communication acts as a tool to bring about smooth industrial relations.
  • 119. Lesson 11 Worker’s Education and TrainingThe workers in the country should be regarded as the most significant component of thecitizen community and they should be psychologically satisfied by providingopportunities for education and training. It has been aptly said that “the major capitalstock of an industrially advanced country is not in its physical equipment, it is the bodyof knowledge amassed from the tested findings and the capacity and the training ofpopulation to use this knowledge effectively”. It has now been increasingly realized thatthere is a growing need for the kind of education that will properly equip the workersand trade unions to meet their increasingly heavy economic and social responsibilities.Concept of Worker’s EducationIt is very difficult to define precisely the term “workers’ education”, partly because of the“lack of definitiveness of aim or workers’ education”, and partly due to “lack ofunanimity amongst labour experts on these aims”. At a Seminar convened by the Copenhangen in 1956 to consider the question of workers’ education, it was gatheredthat the participants had very different conceptions of workers’ educations. To some, itmeant “education of the workers as a trade unionist”, to others, it meant “basic educationfor workers who lacked opportunity in formal schooling”, to still others, it meant“education of the workers as a member of the community and as a producer, consumer orcitizen”.The term “workers’ education” has assumed different meanings in different countries dueto historical reasons. “In the United States of America workers’ education is consideredas synonymous with training in trade union leadership. In the U.K. it covers tradeunionism, general adult education and vocational education. In many countries ofWestern Europe, workers’ education refers to education in citizenship. In the developingcountries, including India, the term workers’ education is used in its wider connotationand aims at making the worker a better operative, a better union member and a bettercitizen.According to Harry Laidlar, “Workers’ education is an attempt on the part of theorganized labour to educate his own members under in educational system in which theworkers prescribe the courses of instruction, select the teachers and in considerablemeasure furnish the finance”. The definition emphasizes upon: • The trade union o educate its own members;
  • 120. • The educational system should be such in which the workers themselves prepare the syllabi and curricula and themselves select the teachers; and • The system of education should be financed by the fund of the union concerned.Florence Peterson observes, “The workers’ education, as commonly used, in not ageneric term but has a specific connotation. It is a special kind of adult educationdesigned to give workers a better understanding for their status, problem, rights andresponsibilities as workers, as union members, as consumers and as citizens”.According to another authority, “Workers’ education and trade union are synonymous,since the chief aim of workers’, education is to equip the trade unions to take a moreactive interest in the movement.” But trade union education is narrower in scope in asmuch as it only confines itself in training workers to become good members of tradeunion whereas the workers’ education besides providing the workers the training in tradeunions also aims at social and fundamental education as that is given with view tomaking a worker a good citizen as well as a good member of the trade union.According to the Encyclopedia of Social sciences, “Workers’ Education” seeks to helpthe worker solve his problems not as an individual but as a member of his social class. aSa whole, workers’ education has to take into consideration the educational needs of theworker as an individual for his personal evolution; as an operative – for his efficiency andadvancement; as a citizen – for a happy and integrated life in the community; as amember of a trade union – for the protection of his interests as a member of the workingclass.”.“It is , therefore, to bridge the lacuna by illiteracy, to create better understanding of workand one’s own place in national economy, to prepare worker for effective collaborationwith the management, to make him a better citizen, to create leadership among the ranksof labour, to replace outsiders in trade unions and ultimately to make them conscious oftheir rights and responsibilities that worker’s education aims at”.Characteristic Features of Worker’s EducationOn the basis of the various definitions given of workers’ education, certain characteristicfeatures may be noted as below: • The scope of workers’ education is much wider than that of trade union education.
  • 121. • Worker’s education is designed to create trade union consciousness in the workers besides making them good citizens and training them to understand their status, rights and responsibilities. • In workers’ education, the workers themselves form the curriculum and select their own teaches. • The institutions providing workers’ education are controlled, financed and managed by the workers. • It is based upon the idea of gaining more the more strength for the bargaining power of trade and producing workers who should behave as workers, • It differs from vocational and professional education as its main aim is to train a worker for his group advancement and for the solution of group problems, whereas vocational and professional education aims at individual advancement. • The approach in workers’ education is psychological and philosophical. • It includes general education, vocational education, technical education, social education and training in trade unionism.Aims and Objects of Workers’ EducationAccording to the National Commission on Labour, workers’ educations should make aworker: • A responsibly committed and disciplined operative; • Understand the basic economic and technical aspect of the industry and the plant where he is employed so that he can take an intelligent interest in its affairs; • Aware of his rights and obligations; • Understand the organisatoin and functioning of the union as well as develop qualities of leadership, loyalty and devotion towards trade union work so that the can intelligently participate in the affairs of his union; • Lead a clean and healthy life based on a firm ethical foundations; and • A responsible and alert citizen.
  • 122. In the words of the Director-General of the I.L.O., “The primary aim of workers”education is to enable the worker to put his finger on problems confronting him in hissocial group; he must acquire a certain culture so that in his capacity of an individual hecan locate his proper place within his own trade and milieu; he must understand both hisposition in the enterprise as well as the role of the enterprise itself within the generalframework of national and economic development; he must know what man representsand how he should behave in society, family, neighborhoods, workplace and nation.Training programmers will stem logically from the foregoing the workers’ place insociety, the study of his rights and duties, the need for trade unionism and its role,knowledge of the undertaking and of economic principles, labour legislation, humanrelations without losing sight of a few basic essentials such as how to write a letter or areport, to calculate a wage sheet, to contribute effectively in meetings, tec. All of whichwill help to equip him to express and put to practical use the ideas, experience andteaching received”.The workers’ Education Review Committee in India has laid down the followingobjectives: • To equip all sections of workers, including rural workers, for intelligent participation in social and economic development of the nations in accordance with its declared objectives; • To develop among workers a greater understanding of the problems of their social and economic environment, their responsibilities towards family members and their rights and obligations as citizens, as workers in industry and as members and officials of their trade unions: • To develop leadership from among the rank and file of workers themselves; • To develop strong, united and more responsible trade unions through more enlightened members and better trained officials; • To strengthen democratic process and traditions in the trade unions movement; and • To enable trade unions themselves to take over ultimately the function of workers’ educations.Contents of Worker’s EducationThe contents of workers’ education cannot be put in water-tight compartment as thecultural outlook, historical background, availability of resources in men, material and
  • 123. money and stage of economic development differs from country to country. But ingeneral the scope and contents of workers’ education should be determined according tothe environment, employment and union development. It should include different typesof education ranging from general education to trade union education covering vocationalguidance, technological training, literacy and artistic studies and the manner ofconducting conferences and seminars.The content of workers’ education should be built around core subjects such as IndustrialEconomics (particularly organizational and financial aspects of industrial units),Industrial and Social Psychology, Industrial Sociology, Labour Economies, Philosophy,co-operative and Community Organisation.The broad contents should cover: • Organisation, recruitment of members, farming of constitution, registration, collection of dues, maintenance of accounts, correspondence and other office work, submission of returns, propaganda, of research memoranda, fighting cases in labour courts, negotiations with employers and the States. • Relevant economic and social problems, such as grievance procedures, methods of collective bargaining, determination of wages, productivity problems, economics of employment and social security, planning for economic development, indices of wages, and consumer prices, labour statistics, provisions of social and labour legislation, labor welfare and international labour problems. • With emphasis on trade union leadership, workers’ education should also deal directly with areas like history the trade union movement, structure, constitution, administration and methods of organisation of trade unions; communication with members, delegation of authority, elections of representatives; aims and objective of trade unions and methods of achieving these; holding of meetings and writing of reports; trade union finance; general and political funds; adult, accounts control and safeguard of the funds; mutual insurance, welfare work of trade unions, community services; cultural, recreational, educational and cooperative activities; union management relations, implementation of laws and awards; strikes and demonstrations; Union-State relations; labour administration and policy; Inter- union relations; social and labour legislation and practices concerting their legal rights and obligations.Teaching Techniques
  • 124. The workers’ education courses may be conducted in the campus itself. The workers mayalso be given practical training in the field. Extension work may also form a part of theprogramme of workers’ educations.The techniques employed in imparting workers’ education are: (i) the general lectures,delivered in simple, direct and unambiguous language; (ii) discussions on the topics/issues involved; (iii) arranging study groups; and (iv) correspondence courses.Modern methods of teaching are adopted, and for this purpose a number of educationalaids and devices are used – like films, films strips, radio and recording, flip card, pictorialcharts, flash cards, posters, flannel graphs, maps and diagrams, wall newspapers, etc.Demonstration, special lectures, tests seminars, debates, role-playing, arrangingsymposia, case studies and two-way communication methods are also encouraged.Educational visits and study tours of the trainees to union-offices, factories andmultipurpose projects are important aspects of workers’ education.The results of workers’ education programmes have not been very impressive and leavesa vast scope for its improvement. The success of the programme depends to a great extenton responsive cooperation from the unions and management, besides active andenthusiastic participation by the worker-teachers, rank and file workers, and trade unionleaders.Worker’s TrainingTill recently, India had been suffering from acute shortage of skilled and trained workersfor a number of occupations and industries; and majority of the workers suffered fromlow efficiency, which necessarily meant that the rate of skill formation ahs been low.Besides, factors like social attitude towards industrial work, differentials between heincome of skilled and unskilled workers, and the training and educational facilitiesavailable in the country, the educational system has also been responsible for this state ofaffairs. Bringing about any change in these is an uphill task. But for rapid industrialdevelopment, the provision of training facilities for the workers is the great need of hehour. This training pre-supposes a sound basis of universal literacy, proper planning anutilization of trained personnel and utilization of trained personnel, and properly designedtraining institutes. Needless to say that trained leads to higher efficiency and increasedproductivity, less waste, reduced supervision, higher employee earning, reducedaccidents, increased organizational stability and flexibility, heightened morale andvertical job mobility.
  • 125. Training Schemes of D.G.E.T.The Directorate General of Employment and Training has evolved various trainingprogrammes for the young persons. Such programmes comprise: 1. Craftsmen’s Training Programmes 2. Craft Instructor Training 3. Advanced Vocational Training 4. Foremen’s Training 5. Apprenticeship Training Schemes 6. Part-time Training to Industrial Workers 7. Vocational Training Programme for WomenCraftmen’s trainingTo provide training to young men and women in the age-group 15-25, the D.G.E.T. hasset up Industrial Training (it is) all over the country. To promote the efficiency ofcraftsmen trainees, aptitude tests have been introduced which are applied for the selectionof craftsmen – Trainees in engineering trades and one year for non-engineering trades.National Trade Certificates are issued to the successful candidates.Craft instructors’ trainingThe central training institutes train craft instructors required by the ITIs and theapprentice training establishments. For example, training in chemical group of trades isprovided at Bombay institute, and in hotel catering at the Hyderabad Institute; theinstitutes at Kanpur, Bombay and Ludhiana provide training in printing, weaving andfarm machines trade.Advanced vocational training systemUnder this system, training of highly skilled workers and technicians are provided in avariety of advanced and sophisticated skills not available from other vocational trainingprogrammes.
  • 126. Foremen’s trainingFor the training of foremen an institute was set up. Training is provided to the existingand potential shop foremen and supervisors in theoretical and managerial skills andworkers from industry in advances technical skills.Apprenticeships training schemeUnder the Apprentices Act, 1961, employees are required to engage apprentices. For suchapprentices, training is provided in basic trades and on the job.Part-time training for industrial workersFor industrial workers, part-time evening classes are organized to improve their standardsof working. Industrial workers, possessing two years workshop experience in a particulartrade and sponsored by their employers are eligible for admission to this course.Vocational training programme for womenThe National Vocational Training Institute for Women provides instructor training, basictraining and advanced training in selected trades particularly suitable for women.But, substantial training capacities have remained unutilized. Further, the trainingprogrammes do not take into account local and regional needs. The quality of the trainingprogramme need to be increased a large extent.Review Question 1. What is workers’ education? What are its objectives? 2. Explain the contents and teaching techniques of workers’ education? 3. Briefly explain various schemes of workers’ training.
  • 127. UNIT –VI12. Industrial Health and Social Security13. Employee Safety Programme14. Employee Counselling15. Conflict Management16. Quality Circles
  • 128. Lesson 12 Industrial Health and Social SecurityThe greatest activity over the past few decades, in so far as employees benefits areconcerned, has occurred in the areas of health and social security. Industrial health iscomparatively an new system of public health and preventive medicine practicedamong industrial groups with the specific object of improving their health andpreventing the occurrence of disease as well as injury to them. In the traditional sense,health implies “the mere absence of an ascertainable disease or infirmity”, but in itspresent connotation, health is “the outcome of the interaction between the individualand his environment”. According to such a dynamic approach, industrial health maycomprise measures for (i) protecting the workers/employees against any healthhazards arising our of their work or the condition under which it si carried on; (in)fostering the adaptation of workers to the jobs and work environment and thuscontributing towards the employees’ physical as well as mental adjustments; and (iii)promoting the establishment and maintenance of the highest possible degree ofphysical mental and social well-being of the workers. A large segment of the adultmale population and quite a number of adult females too, spend a considerableportion of their working time today in an industrial setting where they are employed.Industry exposes the employee to certain hazards the may affect his health adversely.It is with the intention of reducing such hazards and improving the employee’s healththat the discipline of industrial health has come into being as a branch of publichealth. The introduction of industrial organisation may contribute effectively to apositive reduction in employee absenteeism and turnover as well as discontent andindiscipline among the employees and thus may improve their morale, workperformance and productivity.Obviously employees in the modern industrial setting are subject to various types ofhealth hazards and occupational diseases. According to one view, the normal healthhazards may be caused by- • Chemical substances at the work place such as carbon monoxide, carbon dioxide, sulphur dioxide, sulphuric acid, acetic acid etc. When they are
  • 129. inhaled or absorbed by the skin which may result in acute or chronic sickness including respiratory or heart diseases, cancer and neurological disorders they may shorten life expectancy; • Biological factors including sickness caused by bacteria, fungi, viruses, dietary deficiencies, allergies, emotional strains due to fear, anxiety etc. and • Environmental factors including illness due to radiation, noise, vibrations and shocks or atmospheric conditions such as inadequate ventilation, lighting arrangement or very high or low temperature at the work place.While exposure of workers to radiation may cause cataract, vibration and shocks maycause nerve injury and inflammation of tissues of he joints of the operative’s hands andimproper lighting may impair the employee’s vision, it has been pointed out that manymanufacturing processes are accompanied by such noise as is capable of not onlyimpairing the hearing of a workers but also of making it difficult for him to hear anywarning of an impending danger.Besides such health hazards, various occupational diseases may also be caused as a resultof the physical conditions and the presence of poisonous and non-poisonous dust andtoxic substances in the atmosphere during the process of manufacturing or extraction.Such diseases are usually slow to develop and generally cumulative in their effects. Eachdiseases are usually slow to develop and generally cumulative in their effects.In India, a list of such diseases are appended to sections 89 and 90 of the Factories Act,1948 as well as the Workmen’s Compensation Act, 1923 which includes lead poisoning,phosphorous poisoning, arsenic poisoning, chorome ulceration, anthrax silicosis,primarily cancers of skin, dermatitis due to action of mineral oil, asbestosis, toxic anemia,begassoise etc.Social SecurityBroadly speaking, financial and social insecurity means inability or lack of capacity of aperson or individual to protect himself from the risks of unemployment, sickness,industrial accidents or disability, old age and other contingencies. Thus linked withproblems of employees safety and industrial health of workers is the question ofprovision of security to them by the society or the government.In industrial undertakings, workers are often subject to periodic unemployment due tosickness, industrial accidents, old age, or on account of financial sickness or not so-efficient condition of business. These may incapacitate a worker temporarily orpermanently and lead to unemployment causing financial misery and other consequences.
  • 130. Ordinarily, workers do not have financial resources to cope up with these problems oralternative means of livelihood. In these circumstances it is obligatory on the part ofindustrial establishment and the government to help these workers and provide themsecurity or what we call social security.Social security is a system of protection or support provided by the society or governmentto workers and their families in time of sudden calamity, sickness, unemployment,injuries, industrial accidents, disablement, ole age or other contingencies.Social security programmes include – • Medicare and insurance benefits • Medical help at the time of injury and accident and provision financial compensation and relief. • Pension in case of disablement • Unemployment insurance or allowance • Maternity benefits • Death payments and family pension • Retirement benefits or old age relief etc.Social Security Programmes in IndiaIn pre-independence period, a beginning was made in social security with the passing ofthe Workmen’s Compensation Act, 1923. After independence, the government of Indiahas enacted a number of laws and has introduced and implemented many schemes toprovide social security to industrial workers. Some important acts and schemes in thiscontext are discussed below.Workmen’s compensation act, 1923Workmen’s Compensation Act, passed by the Government of India in 1923, becameeffective from July 1, 1924. The act provided for payment of compensation to workmenand their dependents in case of injury, accident and some occupational diseases arisingour of and in the course of employment and resulting in disablement and death. The act isapplicable to railway men and persons working in factories, mines, plantations,mechanically propelled vehicles, construction works and certain other hazardousoccupations. The rate of compensation ranges from Rs. 20,000 to Rs. 90,000 in case of
  • 131. death and from Rs. 24,000 to Rs. 1,14,000 in case of permanent disablement dependingon wages of workmen. In case of partial disablements, the rate of compensation is 50 percent of the wages of workmen and is to be paid for a maximum period of 5 years. Theact, however, does not apply to workmen who are covered by the Employees StateInsurance Act, 1948.Maternity benefit act, 1961The Government of Mumbai was the first one which passed Maternity Benefits Act in1929. Now, such laws are in force in almost every state of the country. The MaternityBenefit Act, 1961 passed by Central Government regulates employment of women incertain establishments for certain period before and after child birth and provides formaternity and other benefits. The Act covers female works in mines, factories, circusindustry, plantations, hotels, restaurants and shops and establishments employing ten ormore persons. There is no wage limit for coverage under the Act. The act entitles thefemale workers to get about 3 months or 12 weeks maternity leave with full wages.However this act is not applicable to those female workers who are covered byEmployees State Insurance Act, 1948.Employees state insurance act, 1948 (ESI scheme)The Employee State Insurance Act, 1948 is the most important comprehensive schemefor providing social security benefits. The scheme which was originally framed to coverperennial i.e. non-seasonal factories using power and employing 20 or more persons hasbeen gradually extended to smaller factories, hotels, restaurants, cinemas, shops, etc.employing 20 or more persons. It covers employees drawing wages upto Rs. 1600 permonth. The Act provides for medical care in kind and cash, benefits in the contingency ofsickness, maternity employment injury and pension for dependents on the death of theworker because of employment injury.Full Medicare and hospitalization is also being progressively made to members of familyof he injured persons. The act aims at providing compulsory and contributory healthinsurance coverage to workers, For the purpose, the government has set ups employees’State Insurance fund administered by an autonomous Employees’ State InsuranceCorporation. Finances for the fund come from the contribution from employers andemployees and government grants. Employees have to contribute compulsorily a nominalsum, a small percentage of the wages towards this insurance coverage. Presentlyemployers are required to contribute 1.25 per cent of their total wage bill towards thefund. There is a network of hospitals, annexes and dispensaries established at importantindustrial centers throughout the country to provide medical care and other facilities toworkers. The scheme covers about 62 lakhs employees.
  • 132. Employment provided fund The Employment Provident Fund and Miscellaneous Provision Act, 1952 providesretirements benefits such as provident fund, family pension and deposit-linked insurance.This act covers establishments employing 20 or more persons and is restricted to thosedrawing wages up to Rs. 3500 per month and is applicable to about 175 industries orclasses of establishments. The minimum rate of contribution under the act presently is8.33 per cent. However in respect of 98 industries or classes of establishment employing50 or more persons, it has been enhanced to 10 per cent. Under the act, this contributionis deducted from the wages of employees and deposited in the Fund set up for thepurpose. The employers have to make a matching contribution. The amount of providentfund held in employee’s name along with interest is paid to him at the time or hisretirement.Death reliefA Death Relief Fund was established under the Employee Provident Fund Scheme in1964 to provide financial assistance to nominees or heirs of deceased members ofunexempted establishments getting maximum salary of Rs. 1500 per month at the time ofdeath. The amount was restricted to the sum equal to the amount of PF balance fallingshort of Rs. 2000.Employees deposit-linked insurance schemes, 1976 as amended in 1990Under this scheme, in case of death of an employee, the person entitled to received hisaccumulated provident fund gets an additional insurance amount equal to average balancein PF account of the deceased during the preceding twelve months provided that suchaverage balance was not less than Rs. 500 during the said period. The maximum amountto be paid is restricted to Rs. 25,000 and the employees are not required to make anycontribution to it.Family pension schemeThis scheme was introduced in 1971. It provides long-term financial security to familiesof industrial workers in case of their premature death. It is made out of the EmployeesProvident Fund to which the government makes additional contribution for the purpose.Family pension ranges from Rs. 225 to Rs. 750 per month depending on the period ofmembership. Presently family pensioners are also entitled to assurance benefits of Rs.500 to meet immediate expenses.Retirement-cum-withdrawal benefit
  • 133. A member is entitled to withdrawal benefit on retirement or superannuation at the ratesranging between Rs. 110 to Rs. 400 (for one years membership) and from Rs. 9000 to Rs.19825 (for 40 years membership) depending upon the pay range of the members andlength of his membership.Payment of gratuity act, 1972This Act is applicable to factories, mines, oil-fields, plantations, ports, railways,automobiles undertakings, companies, shops etc. The act covers employees receivenwages upto Rs. 2500 per month. The act provides for payment of gratuity at the rate of 15days wages for each complete year of service subject to a maximum of Rs. 50,000. Insuch case of seasonal establishments gratuity is payable at the rate of seven days’ wagesfor each season.Personnel departments can play an important role in ensuring safety, health, security andwelfare of the workers engaged in the organisation. The first thing they can do is to makeemployees aware of the safety measures, rules and regulation, and their rights concerningcompensation payable to them in case of accidents and injuries and about the provisionsof various social security measure in force for their welfare. This can be done byorganizing training courses. They can help in reducing accidents and thus, lower the costof worker’s compensation by persuading the management to provide a safe workingenvironment.An important implication for the personnel department is that it should provide adequatethe reasonable financial and security benefits and facilities. It should also comply withvarious legal rules and regulation honestly and faithfully.
  • 134. Lesson 13 Employee Safety ProgrammeA safe hygienic work environment is the basic and common requirement of everyemployee irrespective of his position or status in the organisatoin. And it is the moral aswell as legal responsibility of every employer to provide a workplace to its employeeswhich is not hazardous to their physical or mental health. Human engineering orergonomics which the study of work and of work methods can help the organizations inprotecting their employees against the dangers of accidents and industrial diseases. Veryminor accidents may create major industrial disputes. Therefore, designing andoperations of man, machine environment scientifically will ensure mental and physicalrest to the human beings. Scientific management, therefore, is a necessity for theorganizations at it will strengthen industrial relations and will enhance job satisfaction.Employees Safety and Industrial AccidentsNo industrial organisation can take the subject of employee safety in a casual mannerbecause frequent industrial accidents will result in decreased production and monetaryloss due to adoption of compensatory measures imposed by law. All industrial accidentscan hardly be ascribed to chance factor though such a possibility cannot be ruled outcompletely in every accident. Sometimes it is situational factor and on other there areindividual factors which are responsible for accidents. An industrial accident may be anevent which takes place without foresight or expectation and results in some personalinjury or damage to property. Factories Act, 1948 defines accident as “an occurrence inan industrial establishment causing bodily injury to a person which makes him unfit toresume his duties in the next 48 hours”. To be considered as an accident it must takeplace in the course of employment in an industrial establishment.Causes of industrial accidentsNature and causes of accidents broadly vary form organisation to organisation. Basicallyindustrial accidents will arise either due to technical faults or due to human follies orerrors. Therefore, the causes of accidents may be attributed to work related causes andworker related causes. • Work-related causes: Unsafe working conditions are the prime cause for any industrial accident and these include all engineering deficiencies. These mainly include improper lighting, inadequate safety devices, polluted work place, poor machine guarding, and unsafe and careless housekeeping. These factors will
  • 135. create psychological and physical problems for the worker and will invite industrial accident. • Worker-related causes: These are human factors responsible for accidents due to their unsafe acts. Lack of adequate skill or knowledge in handling the machine, disturbed mental condition, neglecting safety device and instruction, using unsafe machine, working at unsafe speed are some of the causes due to which workers become victims of industrial accidents.Machinery for Preventing Industrial AccidentsEmployees’ pressure for higher production, efficiency and profits can result in unsafeworking conditions and work behaviour. Accidents always do not take place by chance.Obviously the first step for the accident prevention machinery will be to isolate suchsituational factors which may lead to accidents. In addition to it, the organizations shouldhave strong voluntary machinery for the prevention of accidents and should followstrictly the guidelines issued by Government. The machinery for prevention of industrialaccidents can be studied under two heads – voluntary machinery and regulatorymachinery.Voluntary machineryAs the name suggests, these measures include the ways implemented by the managementvoluntarily and not imposed by the law. Here management will have to be cautious fromthe very selection of the employees. Today various psychological tests are available totest the ability and suitability of the individual for a particular job.Organisatoins may develop their own safety programmes and enjoyed safety officers.Safety training should be provided to the workers on regular intervals. Further to generatethe interest of workers in safety programme, they should be involved in them. Thereshould be proper record of the accidents which took place in the past so that managementis able to concentrate on accident prone areas. Employees should be motivated to developsafety behaviour and follow safety rules. If the voluntary machinery for the prevention ofindustrial accidents is strong enough, the management perhaps may not require to followstatutory laws.Regulatory machineryInternational Labour Organisation (I.L.O.) is the body which is working for employees’safety, health and welfare since long. The latest effort in this direction was theOccupational Safety and Health Convention, No. 155, adopted in 1981. Government ofIndia also took initiative in enacting protective provision in its various legislations.
  • 136. Workmen’s Compensation Act 1923, Factories Act, 1948. The employees StateInsurance Act, 1948 and Personal Injuries (Compensation Insurance) Act., 1963 are themain legislations passed by the Union Government which deal with occupational safetyprovisions in the industrial organizations. Whereas the Factories Act prescribes measuresfor avoidance of industrial accidents, the rest of the three prescribed the liability ofemployer to pay compensation to the workers for the injuries caused by industrialaccidents. The details of a few of these acts and schemes are given later in this ChapterSec. 21 to 38 of Factories Act provide for safety provisions in the industrial organisatoin.The act provides for fencing of machinery, recruitment of trained and adult male workers,minimum distance to be maintained form self acting machine, prohibition of women andchildren from working on moving machines and specific provisions for protection of eyesagainst glare, dangerous fumes, explosive dust, gas tec. In addition to these, StateGovernments are empowered to supplement the provisions to further strengthen thesafety of industrial workers.The Mines Act 1952 contains rules and regulations for providing safety, health andwelfare or works employed in mines. These rules are enforced by the Directorate Generalof Mines Safety whose main functions included inspection of mines, investigation of allfatal accidents and certain serous accidents depending upon their gravity, grant ofstatutory permission, exemptions and relaxation in respect of various mining operations,approval to mines safety equipment, appliances and material etc.As industrial safety is both an end and a means, therefore, adequate measures should betaken by the employees to provide safe and secure work-place to the workers.Companies of Safety ServiceAmong the many components of a safety service the following have proved effectivewhen applied in combination:Appointment of safety officerIn big organizations, the appointment of a safety officer to head the safety departments isa ‘must’. In small organizations, the personnel manager may look after the functions ofthis department. The head of the safety department, who is usually a staff man, is grantedpower to inspect the plant for unsafe condition, to promote sound safety practices(through posters and safety campaigns), to make safety rules, and to report violations tothe plant manager. His functions also include analyzing the causes of accidents,maintaining accident statistics and records, purchasing safety equipments, and so on. Insome organizations, the relationship between the head of the safety departments and theline manager may be functional, that is, the head has the authority to issue and enforceorders in his functional field of safety.
  • 137. Support by line managementThe head of the safety department, whether enjoying a staff or a functional position, byhimself, cannot make a plant safe. His appointment lulls line management into assumingthat all its safety problems have been solved. This highlights the importance of makingsafety a line responsibility. It is said that safety is essentially a line problem. Like allother line management problems it also involves questions of motivation, enforcement ofstandards and working through groups. One sure way to win line people’s support is toencourage them to participate on safety committees, on housekeeping inspections andinvestigations of accidents.Elimination of hazardsAlthough complete elimination of all hazards is virtually an impossibility but followingsteps ca be taken to help reduce them: • Job safety analysis: All job procedures and practices should be analyzed by an expert to discover hazards. He should then suggest changers in their motion patterns, sequence and the like. For example, he may discover that a particular reach over a machine could easily result in a loss of balance and injury or he may discover that a corner of a fixture is sharp enough to cut the hands of the worker. On the basis of job safety analysis the expert should also determine any special qualifications needed by an individual to perform the job. These qualifications may be later incorporate in the job specifications. • Placement: a poorly placed employee is more apt to incur injury that a properly place employee. Employees should be placed on jobs only after carefully estimating and considering the job requirements with those which the individual apparently possesses. • Personal protective equipment: Endless variety of personal safety equipment is available nowadays which can be sued to prevent injury. • Safeguarding Machinery: Guards must be securely fixed to all power driven machinery. • Material handling: Though often ignored, the careless handling of heavy and inflammable materials is an important source of several injuries and fire.
  • 138. • Hand tools: Minor injuries often result from improperly using a good tool or using a poorly designed tool. Therefore, close supervision and instruction should be given to the employees on the proper tool to use and the proper use of the tool. • Maintenance: Worn-out machinery, machinery guards and attachments, old and out-of-date fire fighting equipment also contribute to serious hazards. They often give employee a false sense of security and protection. • Layout and design: A good plant layout and design can go long way in preventing accidents, construction of fireproof walls, adequate fire escapes, aisles, and storage space, doorways and passageways, location of hazardous items above employee reach, provision for non-skid floor, protection of radiators by grills can do much to reduce accidents. • Housekeeping: Good housekeeping does not include only tidy and clean floors and machines; other items such as dirty windows, dusty lights and dirty reflectors which reduce the effectiveness of lighting can also result in employee injury. • Falls: Another major source of industrial injury is tripping over subjects, slipping on floors and falling on to another level. Many dangers lurk in stacking and storing. Piles may not be properly constructed and may subsequently collapse. Periodic inspection can help prevent many accidents stemming directly from these causes.Safety training, education and publicitySafety training is concerned with developing safety skills, whereas safety education isconcerned with increasing the employees’ knowledge about accident prevention.Publicity in the form of contest programmes, safety companies, suggestion awards, andvarious audio-visual aids can be considered as a form of employee education.Safety training programmes should be derived from an analysis of training needs. Thisshould refer to the hazards generally prevent in the company as well as the specifichazards associated with individuals jobs. Training to deal with the general hazards can begiven at the time of induction. Specific hazards can be covered at the time of job training.Safety inspectionsAn inspection by a trained individual or a committee to detect evidence of possible safetyhazards (such as poor lighting, slippery floors, unguarded machines, faulty electricalinstallations, poor work methods and disregard of safety rules) is a very effective deviceto promote safety. Safety inspections can take any one of the following four forms:
  • 139. • Periodical safety audit: Here checklists are prepared of the points to be covered and an inspection programme is planned to deal with them at regular intervals. We give below a sample form that can be used for this purpose. Audit area or Inspected Date………………..Department………… by………………….. Check Symptoms Causes Action Responsibility Date for Points Recommended for Action Completion The safety audit form• Random spot check: Spot checks can be made in each area or department on a random sample basis or to cover special problems, such as the inadequate use of protective clothing. Here the inspector may simply enumerate the unsafe acts or conditions observed by him. An example of the form that can be used for this purpose is given below: Inspection carried out by Date………………….Unsafe Act or Condition Number of Observation Dept. A Dept. B Dept. C Random inspection form• Daily checks: Supervisors can be required to make daily checks of safety points in the departments under their control which should list the problem conditions and indicate the action to be taken either by the supervisor himself, management, or the safety advisor. An example for the form to be used for this purpose is given below:Deptt…………………… Supervisor……………… Date………………….
  • 140. Item Condition Immediate action Future action taken proposed Daily check form • Regular inspection: This may be carried out when required by legislation or by insurance companies, of boilers, pressure vessels, pipelines, dangerous processes, lifts, hoists etc.Investigation of accidentsBy determining the reasons for an accident, appropriate action can be taken to preventsimilar future occurrences. Investigation of an accident usually involves the followingsteps: • Define the problem or nature of accident • Collect all relevant facts • Determine the cause of the accident • Develop several alternatives to prevent recurrence • Select and implement the most effective alternative • Suggest disciplinary action against the employee whose actions were formed deliberately unsafe or negligent.An example of a simple investigation report is shown below:Department…………………..Name of injured………………………. Date & Time of injury………………………….. Date & Time of return to work……………………Where and how die the accident occur?
  • 141. Names of injury----------------------------------------------------------------------------------Names of witnesses-----------------------------------------------------------------------------Classification of accident:Type of accident Location of accident Severity of injuryMeasures taken and proposed to avoid repetition Signature……………………… Date………………..Measurement of safetyVarious rates and ratios can be computed to indicate to employees and management theprogress the safety departments is making in its job. These rates can be computedperiodically, say, on a quarterly basis, both for the company as a whole and for each linedepartments. Too important measures of safety widely recognized and used in businessare as follows: • Frequency Rates: This is expressed as the number of lost-time accidents per million man-hours worked. The formula to calculate this rate is:A lost-time accident is one which makes an employee unable to work on one or moredays following the accident. • Security Rate: This expressed as the number of days lost due to accidents per million man-hours worked. The formula for this is:New Techniques in Account PreventionThree new techniques of accident prevention which have recently been developed inindustrially advanced courtiers of the West are: • Damage control, • Human engineering or ergonomics and
  • 142. • Systems safetyDamage controlHeinrich in his book, Industrial Accidents Prevention, postulates that before a given setof circumstances can lead to a lost-time accident, here would be 29 accidents involvingminor injuries and 300 near-accidents involving no injury caused by the same set ofcircumstances. However, this theory does not go so far as to accurately predict when thelost-time injury would occur.Lukens Steel of the United States have conducted systematic research to evolve a methodthat would predict accurately when the lost-time injury would occur. Their studyconcludes hat every accident is preceded by a series of minor injuries and incidents whichcan be said to occur in the following six steps: • At stage one, the situation has an accident potential only. There ay be something unsafe in the working environment or wrong attitude to safety in a certain department. Unsafe acts may occur due to inefficient supervison. • At stage two, the accident potential is realized and dangerous incidents do in fact occur. But as it is near-miss, there is no injury and no damage to plant or equipment. • At stage three, the near-miss becomes a hit a plant and equipment are damaged, But people are not involved. Therefore, no injury is recorded. • At stage four, people are involved. The accident causes minor injuries to people as well as possible damage to plant and equipment. • At stage five, the injuries caused by an accident are serious enough to keep the worker away for more than three days. • At stage six, the injuries received prove fatal.Likens Steels experts have, therefore, established that adequate number of sign andindications would be available to those who can keep their eyes open and mind watchfuland a documentation of these indicators would help exercise a better control over thesituations and factors leading to damage. This is damage control. One should note that itis not the same as conventional accident control. It concentrates attention on injurypotential at the pre-injury stage.Human engineering or ergonomics
  • 143. Ergonomics is the science that deals with many-sided problems of how to fit a job toman’s anatomical, physiological and psychological characteristic to enhance humanefficiency and well-being. Thus ergonomics is the application of knowledge of humancapabilities and limitations to the design of plant and equipment. An equipment designedon the principles of human engineering is far less likely to be a source of accident thanone designed without such considerations.Systems safetyA system is an orderly arrangement of components which are interrelated and which actand interact to perform some task or function in a particular environment. All thecomponents of a system are complementary to each other. Accidents occur when any onepart of the system fails or malfunctions. Certainly if the entire industrial system wereunder complete control, no accident would result. The systems approach gives rise to useof advanced quantitative techniques and computers.Review Question 1. Bring out the importance of industrial health and safety. 2. What are the major sources of health hazards and other types of insecurity of industrial employees? 3. What types of health and safety programmes are generally provided to employees in modern industrial organisation.
  • 144. Lesson 14 Employee CounsellingEmotions are part of the nature of human beings and emotional upsets are part of theirlife. It is sometimes more disastrous to suppress emotions. The emotional problems affectthe interest of the employees himself and the organisatoin in which he is working for. Theproblems may reduce their productivity, morale and increase absenteeism. Hence themanagers should take steps to maintain a reasonable emotional balance of theiremployees and channelize their emotions on the constructive lines. The instrument withwhich the managers can achieve such balance is called counselling.Counselling is a method of understanding and helping people who have technical,personal and emotional or adjustment problems that usually has emotional contents thatan employee with the objective of reducing it so that performance is maintained atadequate level or even improved upon.Objective of CounsellingThe general objective of the manager in counselling sub-ordinates is to help theindividual remain effective in his job and performance of his duties in the organisatoin.The man purpose of counselling in industry is to help employees in overcoming theirneurotic or emotionally based illness that accounts for a substantial part of employeeabsenteeism and turnover.Forms of CounsellingCounselling may be formal or informal. Formal counselling implies the direct intentionof the management to structure a counselling relationship between the employee and hissupervisor or sometimes a counselling specialist with adequate professional training.Such counselling on a systematic and planned basis may take place at three levels. • Supervisor’s counselling with his subordinates periodically, • Professional counselling within the organisation by staff members of personnel department, and • Counselling by psychiatrists from inside or outside the organisation.
  • 145. Informal counselling is done in the natural course of human relations among individualswho have mutual confidence and respect for each other judgments. It takes place in thenormal work situation without any predetermined schedule and is considered as a part ofhe routine duty of a manager. Quit often, the subordinates does not know or realize thatcounselling is taking place.Techniques of CounsellingOn the basis of techniques counselling could be • Directive Counselling • Non-directive Counselling • Cooperative CounsellingDirective Counselling centre around the counselor. The counselor, after hearing theproblems of an employee, decides what should be done and give advice and suggestion tohim to resolve the problem. But directive counselling seldom succeeds, as people do notwish to take up advice normally, no matter how good it might be.Nondirective Counselling is the process of skillfully listening the emotional problems ofan employee, understand him and determine the course of action to be adopted to resolvehis problem. It focuses on the counselee hence it is called ‘client centred’ ounselling.Professional counselors usually adopt this method of ounselling. The unique advantage ofthis type of counselling is its ability to cause the employees reorientation. The main stressis to ‘change’ the person instead of dealing with his immediate problem only. The non-directive counselor deals with respect the person so affected. He takes the person as bestto solve his own problems and he facilitates the person to reach his goal.Cooperative Counselling is the process in which both the councellor and client mutuallycooperate to solve the problems of the client. It is not either wholly client centred norwholly counselor centred but it is centred both councellor and client equally. It is definedas mutual discussion of an employee’s emotional problem to set up conditions and plansof actions that will remedy it. This form of counselling appears to be more suitable tomanagerial attitude and temperament in our country.Among the three from of counselling, the advice offered in directive counseling considersthe surface crises; the nondirective counselling goes to the underlining cause, the realcrisis that leads the employee to understand his problem. It is thus suggested thatnondirective to counselling is, probably, the best among the three forms.Counselling Process
  • 146. The counselling process, normally consists of the following stages:InitiatingThis involves developing mutual understanding openness and acceptance betweencounselor and counseled. This rapport building is essential to initiate the counselling.ExplorationThis involved understanding with the help of the counselling, the counsellee’s ownsituation, his feelings, his strengths and weakness, his problems and needs.The councellor allows the counselee to talk about anything even apparently unrelated tothe issue. It is important for the counselor to achieve a free flow of expression-oftenthrough rumblings – of the employee. The counselor will need an alert and receptivemind for this. The councellor, however, see to it that the councellor eventuallyconcentrates his thoughts on his problem rather than stray away from it. The counselorhas to help the counselee in concentrating more on the problem and getting deeper into itand to discover the basic problems by himself.Formulation of action planThis involved exploring possible solutions and formulating action plan for implementingthem to make the counselee the normal person.Counselling and Industrial RelationsWhen employee are affected by job related and personal problems that very much affectthe organizational welfare besides their own. Hence, if he problems are not identified inthe initial stages itself and solved, they may assume a serious proportion and ultimatelyaffect the employee and organisation resulting in poor industrial relations. Hence theorganisatoins should take these problem seriously and solve them. If the problems arerelating to technical or job related, the line manager knows well from his experience howand what changes he may suggest that may help restoration of employee’s effectiveperformance. Concerning career problems the supervisors may refer such cases to thepersonnel specialists within the organisation. Again, it is the line supervisors who mustcreate confidence on the minds of their subordinates that they can solve even the personalproblems of their employees. The supervisors should also be aware of that personal andjob related problems are largely inseparable and the employee brings his total personalityto his work and hence the organizations should also help their employees to solve theirpersonal problems to the extent possible through counselling.
  • 147. Having understood the importance of counselling as a tool of solving the variousproblems of the employees and help them the maintain/ improve concentration in theirwork performance, now many organizations start adopting conselling practices andprocedure to maintain better industrial relations.Review Questions 1. What is counselling? Bring out its importance. 2. Explain the forms and techniques of employee counselling in industry. 3. Describe the process of counselling.
  • 148. Lesson 15 Conflict ManagementConflict is a basic fact of life in groups and organizations. Organizations contain peoplewith divergent personalities, perceptions, goals, ideas, values and behaviours. Hence,conflict is an inevitable feature of organizations. Chung and Megginson describes conflictas the struggle between incompatible or opposing needs, wishes, ideas, interests orpeople. More specifically, “conflict is a process in which an effort is purposefully madeby one person or unit to block another that results in frustrating the attainment of theother’s goals or the furthering of his or her interests”.Conflict is a naturally occurring phenomenon; inevitable; inherent in any system; notalways bad and in fact an optimum level of conflict energizes the system. Fosterscreativity and innovation, and acts as a catharsis. At the same time if conflict is allowedto develop beyond control, it could tend to become destructive, resulting in such aversiveconsequences such as strikes, sabotage and other dysfunctional behaviours.The effective manager must understand the nature of conflict that is beneficial to theorganisation and conflict that is not. He must deal with conflict in ways that promote bothindividual and organizational goals. The management of conflict is an essentialprerequisite to sound human relations.Features • Conflict occurs when two or more parties pursue mutually exclusive goals, values or events. • Conflict arises out of differing perceptions. • Conflict refers to deliberate behaviour. • Conflict can exist either at the latent or overt level • In conflict one side sees on opportunity to interfere with the others opportunity to acquire resources or perform activities. • Conflict is not an organizational abnormality but a normal aspect of social intercourse.
  • 149. Level of ConflictLow level of conflict creates conditions of inertia and boredom in the system andexcessive conflict results in destruction and dysfunctional tendencies. Managers have tomonitor the level of conflict in the system and if there is too little or no conflict at all, themanagers may even have to induce some level of conflict to energize the system. As thelevel of conflict tends to go beyond the optimum level the manager must act to resolvethe conflict in a manner that will be beneficial to the organisation. LEVEL OF CONFLICT Optimum Level High Level Low LevelStages of Conflict Episode CONFLICT AFTER MATH LATENT CONFLICT PERCEIVED FELT CONFLICT MANIFEST CONFLICT CONFLICT CONFLICT RESOLUTIONThe above model presents conflict as a series of stages namely latent conflict; perceivedconflict; felt conflict; manifest conflict and conflict aftermath.Latent ConflictEach episode of conflict starts with a ‘latent conflict’ but the actual conflict has notemerged. Factors such as competition for scarce resources, competition for positions inthe organisation exist which could become conflicts.
  • 150. Perceived conflictThis conflicts results in due to the parties misunderstanding of each other true position.One party perceives the other to be likely to thwart or frustrate his goals.Felt conflictWhen the conflict makes one tense or anxious, the conflict is a felt conflict because thedifference are personalized or internalized.Manifest conflictThis is the stage for open confrontation. It takes the form of conflictual behaviourincluding aggression, sabotage, apathy etc. all of which reduce organization’seffectiveness.Conflict resolutionWhen conflict is resolved in some form, it is called conflict resolution.Conflict aftermathThe aftermath of conflict may be either positive or negative for the organisationdepending on how the conflict is resolved. If the conflict is genuinely resolved, it canlead to more enduring relationship between parties; if the conflict is merely suppressedbut not resolved, the latent of conflict may be aggravated and explode in more violent andserious forms. This is called ‘conflict aftermath’,Types of conflictsConflicts may take following forms: CONFLICT Individual Conflict Group Conflict Organizational Conflict Inter-individual Intra-individual Inter- Intra- conflict conflict organization organizatio al conflict nal conflict Inter-group Inter-group conflict conflict
  • 151. Individual conflictInter-individual conflictInter-individual or inter-personal conflict involves two or more individuals who holdpolarized points of view. The most common reasons for inter-personal conflicts arepersonality differences, perceptions, clashes of values and interests, and competing forscare resources.Intra-individual conflictIntra-individual conflict is internal to the person and probably the most difficult type ofconflict to analyze. Basically, intra-personal conflict can be related to two things; conflictarising due to divergent goals or conflict arising from out of multiple roles to be played.Goal conflict occurs when a goal that an individual is attempting to achieve has bothpositive and negative features. Generally three separate types of goal conflicts areindentified. • Approach-approach conflict: A person wants tow positive situations but can have only one. • Approach-avoidance conflict: In this form of goal conflict the person attempts to achieve a goal that has both positive and negative aspects but wants to avail of positive and negative. • Avoidance-avoidance conflict: This type of conflict can be resolved because a person faced two negative goals and he may not choose either of them and may simply leave the situation.Role conflict is the result of divergent role expectations. It exits when the expectations ofa job are mutually different or opposite and the individual cannot meet one expectationwithout rejecting the other. An individual confronting with role conflict will experiencepsychological stress leading to emotional problems, resulting in poor performance.Group conflictInter-group conflict
  • 152. Every group is in atleast partial conflict with every other group it interacts with. Thegroups differ in goals, work activities, power and prestige. The sources of intergroupconflict are incompatible goals, task interdependence, resource allocation, competitiveincentive and reward system, differences in values or perception etc.Intra-group conflictIntra-group conflict is essentially same as the bases of inter-individual conflict.Organizational conflictInter-organizational conflictThe bases to inter-organizational conflicts are essentially the same as the bases on inter-oup conflict. The types of inter-organizational conflict are between management andgovernment, management and management, union and government etc.Intra-organizational conflictIntra-organisational conflict are mainly three kinds: • Horizontal conflict: It refers to conflict between employees of departments a the same hierarchical level in an organization. • Vertical conflict: If refers to any conflict between different hierarchical levels in an organisation. It occurs usually in superior-subordinate relations. The reasons for vertical conflicts are inadequate communication, differences in interest, perception and attitudes between position holders occupying different levels. • Line and staff conflict: It refers to conflict between line managers and staff specialists.Conflict ManagementConflict has to be resolved as soon as the optimum level is crossed and beforedysfunctional consequences start occurring. Following are some of the techniquesemployed to resolve conflict.Dominance through positionQuiet often managers use positional authority to fire a lower ranking subordinate theyconsider to be a trouble-maker. Individuals, in organisation, with rare exception,recognize and accept the authority of their superiors as an acceptable way or resolving
  • 153. conflicts. Although they may not be in agreement with these decisions, the abide bythem.Appeals proceduresThe people in disagreements may appeal to higher authority to help them to arrive at asolution by resolving the problem satisfactorily.Liaison groupsTo arbit differences between two warring factions, an arbitrator can be appoint who canuse this expertise and persuasion to achieve coordination and get people together.Reduce interdependenceOn way to resolve conflict is to reduce interdependences. Departments may be providedwith resources that are independent of those provided for other departments.Conflict Resolution ModelThompson suggested five styles such as competiting, avoiding, accommodating,collaborating and compromising to resolve conflicts.If two parties experience conflicts, each one could be more concerned above their ownself or could be more concerned for the other.When the concern for ‘self’ is very low they could be very unassertive. If the concern forhe self is very high, they could be very assertive.If their concern for the other is low, they would tend to the non-cooperative. If theconcern for the other it high, they could be co-operative.In a conflicting situation: • If an individual’s concern for self and others is low, he will avoid the conflict; • If he has high concern for himself and low condern for others he will compete; • If he has high concern for himself and for others, he will collaborate; • If he has high concern for other but low concern for himself, he will accommodate;
  • 154. • If he has medium level of concern for both himself and the other, he will go for compromise. High Concern for others ACCOMMODATE COLLABORATE COMPROMISE AVOID COMPETE Low LowAll the five styles have its own advantage and disadvantages and a suitable style dependsupon both the nature of the individual and the situational factors.Review Questions 1. What do you understand by ‘conflicts’? What are the types of conflicts? 2. Explain ‘conflicts episode’. 3. How to manage conflicts in an organisatoin?
  • 155. Lesson 16 Quality CirclesIn Japanese culture, the group plays a dominate role. The Japanese end to do things ingroups, to place to high value on group membership, and to strive to be as cohesive aspossible. It was natural for this group orientation to be expressed in Quality-Control (Q-C) circles in Japanese industry. When American companies began to look to the Japanesefor ways to compete in work markets, the most visible and transferable technique seemedto be Q-C groups. Several thousand, U.S. companies now make use of them.A quality circle has been defined as a “self-governing group of workers with or withouttheir supervisors who voluntarily meet regularly to identify, analyses and solve problemsof their work field”.A group participation proves, quality circle “typically are small groups of volunteersform the same work areas who meet regularly to identify, analyze, and solve quality andrelated problems in their area of responsibility. Members of a group choose a particularproblem to study, gather data, and control charts to frame a recommendation that can bepresented to management. Now groups are trained in communication and problemsolving skills and quality/ measurement strategies and techniques.Objective of Quality Circles • To develop enhance and utilize human resources effectively. • To improve quality of products/ services, productivity and reduce cost of production per unit of output • To satisfy the workers psychological needs for self-urge participation, recognition etc. with a view to motivate them • To improve various supervisory skills like leadership, problem solving inter- personal and conflict resolution • To utilize individual imaginative, creative and innovative skills through participation, creating and developing work interest, include problem solving techniques etc.Techniques used for Discussion in Quality Circles
  • 156. Brain-storming processUnder this technique complete free environment is created with a view to stimulatecreativity and the employees can come out with as many ideas as possible. Later theseideas will be screened and best ideas will be chosen.Cause and effectUnder this technique members are asked to find out the causes for the identified problem.They identify the causes and their effects.Sampling and charting methodsUnder this technique, members of the quality circle observe the events and theirconsequences in the form of positive or negative results.They chart out all their observation either in sequence or in some other relationship whichgives clear ideal of the problem.These techniques will work effectively in attaining the objectives only when theorganizational structure of Q-C is sound and systematic.Quality Circle ProcessSize of the each Q-C select the problem from the operational problems suggested bymanagement or by the members of the Q-C. After selecting the problem the membersanalyze it by using the various problem solving techniques. Then the members developalternative solution, their effect and consequences on organisation and members, costbenefit analysis and merits and demerits of each solution. The next stage is that membersselect the best solution from among the alternative solutions. Management reviews thesolutions and may or may not accept the solution offered by the Q-C members. If thesolution is accepted it is implemented.Making Q-C Process EffectiveThe following factors should be recognized and practiced to make Q-C process ofeffective: • All members should accept that there is more than one way to solve a problem successfully. • All members to be encouraged to clarify and build on each others ideas.
  • 157. • Periodic summarizing of the activities by the leader or member to ensure common understanding. • Avoidance of heated arguments in favour of one particular position. • Avoidance of technique such as majority vote to obtain group agreement.It has been stated in many forums that a major part of he responsibility for quality circleslies with the management than workers. Mr. Ishikawa, during a visit to India in 1987 hadremarked that Q-Cs can contribute only about 30 percent to quality improvement and therest has to be in the form of management efforts. The famous American expert Mr.Deming, after whom, most of the quality awards are given, unhesitatingly says that amajor part of the effort towards quality improvement has to come form management.The secret of the success of the Japanese effort has been the continuous modification oftheir designs to overcome the quality problems faced by the customers and rectify them.This calls for a lot of upstream management and proper tools of analysis to be applied forsuccessful efforts.It is only in a climate of cohesion, mutual trust and understanding that there can bemeaningful progress. For this, both managements and trade unions have to work jointlyfor the common organizational goal. It is not enough if only the management takes uponitself the task of achieving the desired results. It calls for the willing involvement of everysection of employees, including those at the grassroots, leading to company wise trueparticipation and open management. Finally, development of the most important of allresources, human resource has to find a place.To achieve the prerequisites for excellence, many organizations are adopting variouskinds of management tools in the fond hope of finding a place for all their problems inorder to bring in greater involvement of employees in day-to-day affairs. Sweden andYugoslavia (and some companied in India, too) had experimented with “work placedemocracy” and “work autonomy” but not with much success.The task before India is to recreate the culture in which a sense of belonging to theorganisation is generated among all employees. If has were to happen, managements haveto change their age-old attitudes.Management, by itself, without actively involving task performers would not be able toachieve the organizational goals. This would be possible only through a holistic approachtowards employees and humanization of work. Enrichment of the “quality of workinglife” and catering to the self-esteem and recognition needs of employees only would help
  • 158. develop in them a sense of involvement, participation and pride in the organizationalprogress.The one road to achieve this goal is the effective implementation of small group activitiessuch as “Employees Participation Circle” (EPC); “Small Group Activities” (SGA) and“Training at Work Teams” (TAWT). In India in the West they are called “QualityCircles”. In Japan and many Southeast Asian countries, the small groups are known as“Quality Control Circles” because they got evolved in the sixties as a result of massivequality control training imparted to the employees.The “Quality Circle” concept comes nearest o satisfying the pre-requisites for developingthe capability to face the current and emerging challenges. Its unique features such asvoluntariness, bottom up group synergy are now proved to being about tangible andintangible benefits to any organisation, if practiced with sincerity of purpose as adaptedto the Indian milieu. The number of organizations implementing quality circles in Indiahas been steadily rising covering both the public and private sectors and governmentagencies.This scheme will no doubt contribute to the organizational effectiveness and to enhancejob satisfaction and sound human relations in all organizations.Review Questions 1. Define the term “Quality Circle”. What are its objectives? 2. Explain the purpose and process of Quality Circles.
  • 159. CASEIndustrial Relations – The tisco experienceThe Tata Iron and Steel Co. Limited has a history of successful industrial relations. Thisis mainly due to the support established between management and labour. TISCOmanagement believes that the human being is the core of the industry. Therefore hisneeds and fulfillment of his basic necessities were as important as any other considerationin industry such as production and profit. The excellent association of employees withmanagement started with the signing of an agreement by the management and the unionway back in 1956. The agreement provided an increasing measure of closer association ofthe workers with the management in the working of the industry. They believed thiswould help- a) in promoting increases in productivity for the general benefit of the organisation, the employees and the country. b) in giving employees a better understanding of their role and importance in the working of the industry and in process production; and c) in satisfying the urge for self-expression.Joint councils and works committeesA series of Joint Councils and Joint Works Committees were subsequently set up. Theobjectives was to study and advise on the steps deemed necessary for increasingproduction, improving productivity, discipline, cost, economy, promotion, welfare,encouragement of suggestions, improvement of working conditions, as well as thefollow-up action on the implementation of the recommendations and decisions approvedby the management from time to time.The three-tier setupAs already indicated, the close association of employees with management came moreinto existence with the agreement signed in 1956. The three-tier setup of joint councilsconsisted of the Joint Departmental Councils (JDCs) at the base. One was set up for eachmajor department and combined ones for two or more smaller departments. The JointWorks Council (JWC for the whole organisation is at the intermediate level. The JointConsultative Council of Management (JCCM) constituting the apex body.
  • 160. The Joint Councils at their respective levels study operational results and productionproblems, advise on the steps deemed necessary to promote and rationalize production,improve productivity and discipline and economize costs. Promotions of welfare andsafety, encouragement of suggestions and improvement of working conditions also fallwithin the purview of these Councils. These bodies have also to follow up on theimplementation of their recommendations and decisions approved by management.In addition to these common functions, the Joint Works Councils has the special function ofreviewing every month the working of the departmental councils and a few other jointcommittees like the Suggestion Box Committee, General Safety Committee, Canteen ManagingCommittee and the Safety Appliances Committee.The Joint Consultative Council of Management is entrusted with the task of advisingmanagement on all matters concerning the working of he industry in respect ofproduction and welfare, particularly those referred to it by the Joint Workers Council andfollow up on the implementation of its recommendations. The Council has also to advisemanagement on economic and financial matters placed by management before it, but notthose affecting the relations of company with its shareholders and managerial staff, ortaxes.This does not mean that there are no problems in putting through the scheme. Forexample the coordination of the functioning of the various JDCs of which there were 41in 1986, is naturally a complex job. This is sought to be done through an annual meetingof Chairmen, Vice-Chairmen and Secretaries of al the Councils under the Chairmanshipof the General Manager (op), who is also the Chairman of the Joint Works Council. It isalso attended by the top officials of management and the Union. All procedural issuesconcerning the working of the councils are discussed and settled at this meeting, and areview made of the Scheme of Employees Association with Management as a whole.This provides an opportunity to the various JDC officials to learn from one another theweaknesses of a particular council and the strong points of others.AchievementsIt is difficult to measure the success of JDCs in terms of production tonnage or savings inthe cost of steel per tone. However, the fact remains that, during the past several years,production in Tata Steel been toe the tune of 100% of the Plant/s capacity. During theyear 1981-82, it reached the all-time high figure of more than 105% of the Plant’scapacity. He various improvements suggested in process and procedure elimination ofdefective work, import substitution, consumption of materials etc. indicate the JDCs are
  • 161. deeply involved with the problem of productivity. By and large, the Councils havesucceeded in making the employees think about development and improvements.The most abiding effect, however, of these joint consultations has been the strengtheningof the team spirit and of the sense of belonging, which is responsible for the uniqueindustrial harmony and cordial relationship that prevails between employees andmanagement of Tata Steel since the past 53 years-a record indeed. Yet management is notcomplacent as is evident from the following wordings of J.R.D. Tata:“In 1956, in consultation with the Union, we created the consultative machinery whichhas proved largely responsible for the mutual trust and cooperation we have enjoyedsince then. But we must not be satisfied with what we have done up to now. Our workers,today, particularly they younger ones, are better educated and trained to understand thetechnical and managerial problems of industry and are, therefore, quite capable ofenhanced participation in the management of industry. I have been feeling for some timethat we should we take a further step forward in our joint scheme or cooperation”.Finally let us end with the opinion of an independent individual:“May I hope that the relationship between the great House of Tata and the Workers willbe of the friendliest character, and that both of them will constitute a great familybringing in unity and harmony. It is the privilege of both of you…to given India in objectlesson in amity and goodwill”. -Mahatma Gandhi
  • 162. MODEL QUESTION PAPER Paper 4.33 Industrial RelationsTime : 3 Hours Maximum Marks : 100 PART – A (5 X 8 = 40)Answer any FIVE QuestionsAll questions carries equal marks 1. What do you understand by industrial relations? What are its objectives? 2. What are the objectives and functions of International Labour Organizations? 3. Explain grievance rederssal procedure. 4. What are the principles of code of discipline? 5. State the principles of collective boards? 6. What are the functions of wage boards? 7. What are the objectives employee education and training? 8. What is employee counselling? What are its objectives? PART – B (1X 15) = 60Answer any FOUR questionsAll question carry equal marksQuestion No. 15 is compulsory 9. Explain the role of Government, employers and the unions in maintaining smooth industrial relations. 10. Explain the relevant provisions of Constitution in protecting the labour. 11. What are the problems of trade unions? What are your suggestions for its effective functioning? 12. Explain the machineries constituted for settlement of industrial disputes. 13. What are the objectives and forms of workers’ participation in management? 14. Explain the types and management of conflicts. 15. Explain the purpose and process of Quality Circles.
  • 163. BOOKS REFERRED1. Mamoria C B & Sathish Mamoria, “Dynamics of Industrial Relations”, Himalaya Publishing House, Mumbai.2. Tripathi P.C., “Personnel Management and Industrial Relations”, Sultan Chand and Sons, New Delhi.3. Bhagoliwal T. N. “Personnel Management and Industrial Relatoin”, Sahitya Bhawan, Agra.4. Daver R.S. “Personnel Management and Industrial Relations”, Vikash Publications, New Delhi.5. Kapur S. K. & Punia B.K. “Personnel Management and Industrial Relations”, S.K. Publishers, New Delhi.6. Tripathi S.D. & Arya P P, “Trade Union – Management Relation in India”, Deep & Deep Publication, New Delhi.