Assistant Professor, b.borooah college
In United States labour law, the term unfair labour practice refers to certain actions taken by
employers or unions that violate the National Labour Relations Act (NLRA) and other
legislation. Such acts are investigated by the National Labour Relations Board (NLRB).
Definition of "unfair labour practice"
The NLRB has the authority to investigate and remedy unfair labour practices, which are defined
in Section 8 of the Act. In broad terms, the NLRA makes it unlawful for an employer to:
interfere with two or more employees acting in concert to protect rights provided for in
the Act, whether or not a union exists
to dominate or interfere with the formation or administration of a labour organization
to discriminate against employees for engaging in concerted or union activities or
refraining from them
to discriminate against an employee for filing charges with the NLRB or taking part in
any NLRB proceedings
to refuse to bargain with the union that is the lawful representative of its employees
The Act similarly bars unions from:
restraining or coercing employees in the exercise of their rights or an employer in the
choice of its bargaining representative
causing an employer to discriminate against an employee
refusing to bargain with the employer of the employees it represents
engaging in certain types of secondary boycotts
requiring excessive dues
engaging in featherbedding (requiring an employer to pay for unneeded workers)
picketing for recognition for more than thirty days without petitioning for an election
entering into "hot cargo" agreements (refusing to handle goods from an anti-union
striking or picketing a health care establishment without giving the required notice
Investigation and processing of the charge
The General Counsel of the NLRB is responsible for investigating unfair labor practice charges
and making the decision whether to issue a complaint. This job is delegated to the Regional
Director of the region of the NLRB in which the charge has been filed; the Regional Director in
turn assigns it to an employee of the region. It is the responsibility of the charging party to
identify the witnesses who can support its charge; should it fail to do so the Regional Director
will typically dismiss the charge.
Issuance of complaint and settlement
If the Region finds merit in the charge it will file a formal complaint setting out the violations of
the law allegedly committed by the respondent. While the Act requires that the original unfair
labour practice be filed within six months, there is no comparable statute of limitations for
issuance of a complaint. The complaint may also be amended in some circumstances to include
other alleged violations of the Act not specified in an unfair labour practice charge
The Board will set aside an informal settlement agreement if the employer violates the agreement
or commits other violations of the Act after the agreement. The Board can, by contrast, enforce a
formal settlement like any other Board order by petitioning the Court of Appeals for an order
enforcing itThe Board will also accept non-Board settlements, in which the charging party
withdraws its charge in return for promises from the other side. The Board is not, however,
obliged to accept the parties' settlement agreement or to allow withdrawal of the charge.
Interim injunctive relief
If the General Counsel believes that there is cause to issue complaint, then he can seek injunctive
relief from a federal district court under Section 10(j) of the Act. Injunctive relief is usually
ordered when necessary to preserve the status quo pending the Board's decision on the complaint
or to prevent employees from suffering irreparable harm. Any injunction lapses once the NLRB
issues its decision
If the Court of Appeals enforces the Board's order then the case will return to the Region for it to
monitor the respondent's compliance. In those cases in which the Board's order requires payment
of back pay, the Region will commence compliance proceedings if it is not able to resolve all
disputes over the amount of back pay. These compliance proceedings are also held before an
Administrative Law Judge, based on the compliance specification filed by the Region. The same
procedural rights apply in these proceedings as in the earlier proceedings on the merits of the
UNFAIR LABOUR PRACTICE
WHAT IS AN UNFAIR LABOUR PRACTICE
It is unfair treatment by an employer of an employee or job applicant. There are a limited number
of unfair labour practices that the LRA defines, the types of treatment, which may constitute an
unfair labour practice, are discussed hereunder. Section 185 of the LRA states that “every
employee has the right not to be subjected to an unfair labour practice.”
THE MEANING OF AN UNFAIR LABOUR PRACTICE
An unfair labour practice means any unfair act or omission that arises between an employer and
an employee, involving:
• The unfair conduct of the employer relating to the promotion, demotion or training of an
employee or relating to the provision of benefits to an employee
• The unfair suspension of an employee or any other disciplinary action short of dismissal in
respect of an employee
• The failure or refusal of an employer to reinstate or re-employ a former employee in terms of
• An occupational detriment, other than dismissal, in contravention of the Protected Disclosures
Act, 2000, on account of an employee having made a protected disclosure as defined in that Act.
UNFAIR CONDUCT RELATING TO PROMOTION, DEMOTION,
TRAINING OR BENEFITS
This usually involves cases where the employer deviates from its own promotion or training
policy or where the employee alleges that the promotion, demotion or training is in itself unfair.
If it is alleged that the failure to promote is a result of discrimination, this dispute must be
referred to the Employment Equity Commission as such a dispute (see information sheet:
Discrimination). If all employees pass a test and all except one or a few are promoted, the
employer may be guilty of unfair conduct against that / those employees. An example of unfair
conduct based on benefits would be when all employees are given transport allowances, but one
Against and not given this allowance. This may constitute an unfair labour practice. An example
of unfair conduct relating to training would be if all employees were given training but for one or
two, for no apparent /fair reason (i.e. that they already have the skills); this may constitute an
unfair labour practice.
UNFAIR SANCTION OR DISCIPLINARY ACTION
Usually an employee would refer a dispute relating to the unfairness of disciplinary measures
taken, based on the merits of their innocence in the alleged wrongdoing. Suspension as a
disciplinary sanction is the only instance where suspension can be unpaid. Whilst on suspension
pending a disciplinary enquiry, an employee must be paid. Non-payment must be referred to the
Department of Labour as a non-payment of salary dispute. It is not regarded as an unfair labour
practice dispute as this definition relates only to benefits and not salary. A dispute regarding the
unfair suspension may be referred as an unfair labour practice if the employee is on suspension
for an unreasonably long period and where there is no plausible reason for the delay in finalising
the enquiry. An example of unfair suspension would be where an employee and her supervisor
argue and the employer suspends only the employee, even though it was the supervisor who was
UNFAIR TREATMENT CREATING AN OCCUPATIONAL DETRIMENT FOR AN
EMPLOYEE WHO MADE A PROTECTED DISCLOSURE
If an employee makes a protected disclosure as set out in that Act e.g. makes a disclosure
regarding the conduct of an employer as he/she has reason to believe that the information shows
that the employer is committing a criminal offence, and is thereafter prejudiced for making such
disclosure by being demoted, such conduct of the employer would constitute an unfair labour
DISPUTE ABOUT UNFAIR TREATMENT
All the disputes about forms of unfair treatment may be referred firstly to conciliation conducted
either by a bargaining council, and if there is no council, by the CCMA. If the dispute remains
unresolved, it can be referred to arbitration.
WHEN TO REFER AN UNFAIR LABOUR PRACTICE DISPUTE
Section 191 states that the employee has 90 days from the date of the act or omission which
allegedly constitutes an unfair labour practice or, if it is a later date, within 90 days of the date
which the employee became aware of the act occurrence.
Victimisation (or victimization) is the process of being victimised or becoming a victim.
Research that studies the process, rates, incidence, and prevalence of victimization falls under the
body of victimology.
Any of various acts by an employer or labour organization that violate a right or protection under
applicable labour laws.
Section 25T prohibits unfair labour practices by employer or a workman or a trade union.
Fifth Schedule to the Industrial Disputes Act, 1947 provides a list as to what constitutes an
"Unfair Labour Practice".
Interfering in Trade Union Activities. Threatening workmen to refrain them from trade union
activities. Establish employer sponsored trade union. Discourage trade union activities by
various means. Discharge or dismiss by way of victimization or falsely implicating workmen.
Abolish work of regular nature and to give that work to contractors. Mala fide transfer of work
men under the guise of management policy. Employ badli or casuals and continue them for
years. Acts of force and violence. Not implementing settlement/agreement/award. Refuse
collective bargaining. Continue illegal lock-out.
TRADE UNIONS AND ECONOMIC DEVELOPMENT (M K Pandhe)
TRADE union movement in India is characterised today by several employers’
spokesmen and financial columnists as a hindrance in economic progress of the
country. It is a wrong concept and this argument needs to be strongly repudiated. As a
matter of fact the trade union movement believes that without faster economic
development, the standard of living of the working class and the people of the country
cannot be improved. Without accelerating economic growth, employment generation
cannot be improved.
What trade union movement is advocating in India is that mere economic growth does
not lead to social advancement. Though India claims to be the second largest growing
economy in the world, its record of human development is extremely below the mark.
The United Nations’ Human Development Index ranks India at 127th position out of
175 in the list. The capitalists in India today do not take into account this aspect of
economic development and trade unions today are fighting for the concept of economic
growth with social justice.
STRUGGLE FOR NATIONAL INTERESTS
When the question of national interests is involved, the trade union movement is
always at the forefront in defending them. When GATT was signed in Morocco by the
government of India, trade unions demonstrated before parliament since Indian
interests were ignored. When all major capitalist countries, including the US, did not
sign it, what was the hurry for India to sign it? Later on, Murasoli Maran, the late
former commerce minister, admitted in parliament that the interest of India was not
taken proper care of in GATT. However, the employers’ organisations in India
When advanced capitalist countries advocated linkage of labour standards (in the form
of social clause) with international trade, the trade union movement in India strongly
came forward to oppose it. And ultimately in a tripartite meeting, the government,
employers’ organisations and trade unions unanimously opposed to link trade relations
with labour standards since it was an attempt of the capitalists in advanced countries to
restrict flow of goods from developing countries to developed countries.
The trade union movement in India has opposed foreign direct investment in sectors
where it destroys our jobs and industry, does not bring new technology but only comes
to compete with our industries and take over Indian companies with a bid to control
our economy. That is why TUs opposed induction of FDI in retail trade since they
destroy our small traders. All this is being done only to protect India’s self reliant
The World Bank and the IMF is keen to dismantle our public sector due to its significant
contribution to make India self-reliant. The trade unions opposed all measures to kill
our small-scale industry and traditional sector of economy which generates
employment for the poor people of the country.
According to us, it is possible to chalk out an independent path of economic
development in the present situation. However, the big business houses want to
collaborate with the MNCs for their own gains, without due care of the overall national
interest. Hence it is totally incorrect to say that trade unions today are a hindrance to
economic development of the country.
FINANCIAL GLOBALISATION AGAINST COMMON PEOPLE
The experience of the last 15 years of globalisation has not been properly reviewed in
India. It might have given boost to Sensex but it has also increased the number of our
farmers committing suicide. According to ILO, it has increased global inequality and
poverty-levels in developing countries. The millennium objectives are not likely to be
achieved even according to official reports.
It has been noted that globalisation generated cut-throat competition in the world to
bring down the cost of production. According to us it is the labour cost that is being
brought down. Hence, downsizing manpower and increasing the workload of the
workers has become the main slogan of the industrial houses and even the government.
It is hoped that as a result of this the working class and trade union movement will be
marginalised. We have to protect the interests of the working class. Hence, the objective
conditions for conflict are not created by the trade unions but by the employers.
Therefore, mere raising of the question of strengthening and sustaining harmony cannot
help without taking into consideration the objective realities of the situation.
Dr Venkatratnam in his presentation criticised the concept of class struggle and wanted
a middle path of progress. But the question is who is creating the conditions of class
conflict? As the employers are trying to protect their class interests, the working class is
also taking steps to protect its class interests. Under these circumstances the
improvement of industrial relations is possible only if objective conditions for it are
ATTACK ON TU RIGHTS
Take the example of what happened in Gurgaon against Honda workers recently. The
crime of the workers was that they only formed a union. They did not even submit a
charter of demands. However, all the leaders were thrown out of jobs and when they
protested, 700 workers were injured in brutal lathi charge.
The previous speaker also mentioned about Ludhiana. In this case also, the unions
which have completed all formalities of registration more than two years ago, were not
granted registration due to the direct intervention of the state government at the
instance of a leading industrialist.
In Firozabad, UP, glass factory workers are forced to work 12 hours a day illegally but
the state government refuses to implement the labour laws and resorted to lathi charge,
firing and arrest of trade union leaders even under Goonda Act!
In Special Economic Zones, Export Processing Zones and IT sector, labour laws are not
implemented and the governments are openly conniving at the violation of the labour
laws. The MNCs do not allow unions to be formed and raise industrial disputes often.
Can you expect industrial harmony in such a situation?
India has not ratified many core conventions of the ILO, including those relating to
freedom of association and right of collective bargaining. If trade unions rights are
properly protected, trade union movement can play an important role in economic
development of India. What we oppose is a piece of graveyard. We only want
establishment of proper industrial relations machinery to protect the interest of the
workers in a developing economy. The conflict is coming only when the employers
oppose this simple demand.
LABOUR MARKET FLEXIBILITY
The Second National Labour Commission recommended changes in the labour laws
which practically introduce a right of hire and fire of the employers and to freely
engage contract labour in regular jobs at low wage rates. The MNCs have also
demanded these changes in the name of labour market flexibility.
I, however, want to ask you which labour laws are implemented effectively despite our
having 55 central laws. Downsizing of manpower goes on unabatedly while contract
labour is being engaged even in the prohibited categories all over the country with the
union labour ministry behaving like a silent spectator.
Despite the commitment given in the National Common Minimum Programme those
trade unions will be consulted while making changes in labour laws, there has been no
serious consultation with trade union. The government on the other hand is going
ahead with changes in the labour laws, which are wholeheartedly welcomed by the
Dr Venkatratnam had mentioned about union-free establishments. They became unionfree because workers are not allowed to form trade unions and a claim is being made
that workers do not desire to form trade union due to good working conditions. As a
matter of fact, if attempt to form a union is made, workers leaders are immediately
thrown out of jobs and the government fails to protect such employees from
So much is talked today about workers involvement as equal partners in industry. But
then why is the bill on workers participation in management kept pending in
parliament for the last 15 years even though the decision to enact one was taken in a
tripartite meeting? We are told by the government of India that employers’
organisations are opposed to it. An argument is advanced that in a globalised economy
there is no scope for workers participation in management. Basically, the government of
India has no political will to bring this bill. The employers however want to participate
in the management of unions by forming pro-management unions. Can industrial
relations improve under these circumstances?
INDISCIPLINE OF EMPLOYERS
Though employers’ organisations are frequently talking about indiscipline among the
workers, they do not take action against indiscipline among the employers. Has any
employers’ organisation, including CII, issued any circular to pay PF dues in time? The
arrears have reached a whopping Rs1400 crore but no employer has been imprisoned
despite legal provision. Non-payment of taxes by the corporate sector to government
has reached one lakh crore rupees according to officials figures while many tax
defaulters are leaders of the employers’ organisations. The non-payment of bank loans
leading to increase in so called non-performing assets (NPAs) of the banking industry
has reached 1,30,000 crores which involves top-most industrialists in the country. The
industrial houses do not speak against growing economic crimes in the countries
involving leading business houses.
The trade union movement should take steps to reduce the present multiplicity of trade
unions so that united voice of the working class is powerfully raised. A strong trade
union movement is an asset for a sustained growth of economic development and
proper industrial relations.
Trade Unionism In India
The trade union movement in India is ready for a serious dialogue if the employers are
prepared for development of a self-reliant economy for the country and working out
proper norms of industrial relations so that economy can move faster and social
standards are improved. Elimination of poverty and job losses through generation of
more jobs can lead to social happiness, a goal for which the trade union movement in
India is striving.
The trade unionism in India developed quite slowly as compared to the western nations. Indian
trade union movement can be divided into three phases.
The first phase (1850 to1900)
During this phase the inception of trade unions took place. During this period, the working and
living conditions of the labor were poor and their working hours were long. Capitalists were only
interested in their productivity and profitability. In addition, the wages were also low and general
economic conditions were poor in industries. In order to regulate the working hours and other
service conditions of the Indian textile labourers, the Indian Factories Act was enacted in 1881.
As a result, employment of child labour was prohibited.
The growth of trade union movement was slow in this phase and later on the Indian Factory Act
of 1881 was amended in 1891. Many strikes took place in the two decades following 1880 in all
industrial cities. These strikes taught workers to understand the power of united action even
though there was no union in real terms. Small associations like Bombay Mill-Hands Association
came up by this time.
The second phase (1900 to 1946)
This phase was characterized by the development of organized trade unions and political
movements of the working class. Between 1918 and 1923, many unions came into existence in
the country. At Ahmadabad, under the guidance of Mahatma Gandhi, occupational unions like
spinners’ unions and weavers’ unions were formed. A strike was launched by these unions under
the leadership of Mahatma Gandhi who turned it into a satyagrah. These unions federated into
industrial union known as Textile Labour Association in 1920.In 1920, the First National Trade
union organization (The All India Trade Union Congress (AITUC)) was established. Many of the
leaders of this organization were leaders of the national Movement. In 1926, Trade union law
came up with the efforts of Mr. N N Joshi that became operative from 1927. During 1928, All
India Trade Union Federation (AITUF) was formed.
The third phase began with the emergence of independent India (in 1947). The partition of
country affected the trade union movement particularly Bengal and Punjab. By 1949, four central
trade union organizations were functioning in the country:
The All India Trade Union Congress, The Indian National Trade Union Congress, The Hindu
Mazdoor Sangh, and The United Trade Union Congress
The working class movement was also politicized along the lines of political parties. For instance
Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. The
AITUC is the trade union arm of the Communist Party of India. Besides workers, white-collar
employees, supervisors and managers are also organized by the trade unions, as for example in
the Banking, Insurance and Petroleum industries.
Trade unions in India
the Indian workforce consists of 430 million workers, growing 2% annually. The Indian labour
markets consist of three sectors:
The rural workers, who constitute about 60 per cent of the workforce. Organized sector,
which employs 8 per cent of workforce, and The urban informal sector (which includes the
growing software industry and other services, not included in the formal sector) which
constitutes the rest 32 per cent of the workforce.
At present there are twelve Central Trade Union Organizations in India:
All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS) Centre of Indian
Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS)
Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress
(INTUC) National Front of Indian Trade Unions (NFITU) National Labour Organization
(NLO) Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC)
and United Trade Union Congress - Lenin Sarani (UTUC - LS)
Machinery to solve id
Various provisions incorporated in the act for preventing the disputes are as under;
(a) Establishment of works committees, (b) Wage Boards, (c) process of collective bargaining,
(d) Industrial truce resolution, (e) Standing orders, (f) Joint management councils, (g) Grievances
procedures, (h) Codes of discipline and of efficiency (i) Suggestion system, (j) Voluntary
These all provisions are on voluntary basis and there is no compulsion on employing these
measures. The main purpose of such measures is to prevent the disputes before they arise.
Preventive Machinery of Industrial Disputes
Prevention is always better than cure. Preventive steps should, therefore, to be
taken so that industrial disputes do not occur. The following measures can be taken
to prevent disputes in industry.
A. Code of conduct
Each individual organism its code or may follow the code of discipline in industry
formulated by the govt: and made applicable to industry and workers from June 1st 1958. It aims
at preventing disputes through negotiations without the interference of an outside agency.
To avoid work stoppages
To maintain discipline in industry
Eliminate all forms of coercion and violence in IR
Secure settlement of disputes and grievances by negotiation, conciliation and
Promote constructive co-operation between the parties concerned at all levels.
Improve motivation & communication
Improve productivity and compensation of employees.
A. Workers Participation in Management
It is a method whereby the workers are allowed to be consulted and to have a say in t h e
management of the unit. WPM is essentially the step promoting
I n d u s t r i a l Democracy. It is the modern trend in the industrial world both developed and
developing countries .WPM means sharing of profit and pain.“Applied to industry the
concept of participation means sharing the decision - m a k i n g p o w e r b y t h e
ranks of an industrial organization through their
p r o p e r representatives at all appropriate levels of management, in the entire range of
Dr. V.G. Mehtras the important schemes of workers participation are:Joint Consultation
Joint management council
1. Joint Consultation
It is a process whereby employer consults the workers either directly o r t h r o u g h t h e i r
r e p r e s e n t a t i v e s a n d s e e k s t h e i r o p i n i o n o n v a r i o u s i s s u e s w h i l e retaining to
himself the right of taking final decisions. it is carried out th rough joint
consultation committees consisting the representatives of both the employer and
2. Work Committees
Every industrial undertaking employing 100 or more workers asu n d e r a n o b l i g a t i o n t o
s e t u p a w o r k s c o m m i t t e e c o n s i s t i n g e q u a l n u m b e r o f representatives of
employer and employees. The main purpose of such committees is t o p r o m o t e i n d u s t r i a l
r e l a t i o n s . A c c o r d i n g t o I n d i a n L a b o u r C o n f e r e n c e w o r k committees are
concerned with:Administration of welfare & fine funds.
Educational and recreational activities.
Safety and accident prevention
Occupational diseases and protective equipment.
Conditions of work such as ventilation, lightening, temperature &
sanitation including latrines and urinals.
A m e n i t i e s s u c h a s d r i n k i n g w a t e r c a n t e e n , d i n i n g r o o m s , m e d i c a l & health
The following items are excluded from the preview of the work committees.
1 . W a g e s a n d a l l o w a n c e s 2 . P r o f i t s h a r i n g a n d b o n u s 3.Programs of
planning and development 4 . R e t i r e m e n t b e n e f i t s 5 . P F a n d
g r a t u i t y 6.Housing and transport schemes 7 . I n c e n t i v e
s c h e m e s 8.Retirement and layoff
Inability of the employer in certain conditions. it is a measure to cope up with the
t e m p o r a r y i n a b i l i t y o f a n e m p l o ye e t o o f f e r e m p l o ym e n t t o a w o r k m a n t o
k e e p t h e establishment as a going concern.
3. Joint Management Council J u s t t o m a k e a s t a r t i n l a b o u r p a r t i c i p a t i o n
i n m a n a g e m e n t , t h e g o v t : suggested in its Industrial Resolution 1956 to set
up joint management councils. It consists of equal numbers of workers and
employers (minimum 6 & maximum 12)decisions of the JMC should be unanimous
and should be implemented without any delay. JMC members should be given proper
JMC should look after 3 main areas:1. Information sharing2.consultative3.administrative
Representation of workers to the JMCs should be based on the nomination by the
Satisfy the psychological needs of workers
Improve the welfare measures
Increase workers efficiency
Improve the relation and association between workers, managers and promoters.
JMC deals with matters like:-
Employee welfare, Apprenticeship scheme
Causes of failure of JMCs:Attitude of animosity, Crisis of confidence in elected representatives, Limited scope of JMC,
Level of participation
The performance of JMC is not satisfactory due to:
The absence of representative unions made it difficult for the council to
The leaders feel that the council would weaken their hold over workers
Managers feel that it is very difficult to convince uneducated representatives of workers.
Managers feel that with work committees and collective bargaining there is no need for this
4. Shop Council S h o p c o u n c i l s h a v e b e e n e s t a b l i s h e d i n t h e m a n u f a c t u r i n g
a n d m i n i n g industries employing 500 or more workers in private, public and joint sectors
These councils assist the mgmt in achieving production targets,
i m p r o v i n g p r o d u c t i o n , p r o d u c t i v i t y a n d e f f i c i e n c y, e l i m i n a t i n g w a s t a g e
a n d i n a c h i e v i n g optimum utilization of machinery and manpower.
All decisions of a shop council shall be on the basis of consensus and not by
the basis of voting that either party may refer the unsettled matters of the joint council for
There will be shop council for each department or one council for
m o r e departments considering the number of workers employed.
The number of members in the council may be decided by
m a n a g e m e n t i n consultation with recognized unions. The total members may not generally
A shop council once formed shall function for a period of two years. It will meets frequently as
possible at least once in a month.
Each shop council shall consist of equal number of representatives of employers and employees.
Every decisions of a shop council shall be implemented by the parties concerned within a
period of one month, unless otherwise stated in the decision itself and compliance
report shall be submitted to the council.
1. Assist management in achieving production targets. 2 . I d e n t i f y a r e a s o f l o w
p r o d u c t i v i t y. 3 . I m p r o v e p r o d u c t i o n 4 . S u g g e s t h e a l t h y , s a f e t y, w e l f a r e
m e a s u r e s . 5.Assist in maintaining general discipline in the shop or
department.6 . P h ys i c a l c o n d i t i o n s o f w o r k e n v i r o n m e n t
5. Joint Councils are set up for the whole unit and deals with matters relating optimum
production and efficiency and the fixation of productivity norms for man and
machine for the as a whole. in every industrial unit employing 500 and more
workers there should be a Joint Council for the whole unit.
Members of the council must be actually engaged in the unit.
The chief executive of the unit will be the chairman of the council and
v i c e chairman will be nominated by worker members.
Term of the council will be two years.
JC shall meet at once in a quarter.
Decision of the council will be based on consensus and not on voting.
1.Optimum use of raw materials and quality of finished products 2 . O p t i m u m
p r o d u c t i o n , e f f i c i e n c y a n d f u n c t i o n o f p r o d u c t i v i t y n o r m s o f man and
machine as a whole.3.Preparation of schedules of working hours and of
holidays.4 . A d e q u a t e f a c i l i t a t e s f o r t r a i n i n g . 5.Rewards for valuable and
creative suggestions received from workers.
A. Collective Bargaining
Collective bargaining refers to "a process by which employers on the one hand and
r e p r e s e n t a t i v e s o f t h e e m p l o ye e s o n t h e o t h e r , a t t e m p t t o a r r i v e a t
a g r e e m e n t s covering the conditions under which employees will contribute and be
compensated for their services “Michael. J. Jucius“It is the process in which the
representatives of labour organization sand the representatives of business
organization meet and attempt to n e g o t i a t e a c o n t r a c t o r a g r e e m e n t w h i c h
s p e c i f i e s t h e n a t u r e o f t h e employer and employee union relationship.”Edwin Flippo
The term collective bargaining typically refers to the negotiation, administration
and interpretation of a written agreement between two or more people.
Ensure the participation of Trade Unions in the industry
Settle disputes relating to wages and working conditions.
Protect the interests of the workers through collective action.
Prevent unilateral actions on the part of employees.
Conditions essential for successful collective bargaining
Favourable political climate
Freedom of association
Willingness to give & take
Problem solving attitude
Availability of data
Fair labour practices
PROCESS OF COLLECTIVE BARGAINING
1. Preparation for negotiation
C a r e f u l a d v a n c e p r e p a r a t i o n b y e m p l o y e r s a n d e m p l o ye e s a r e n e c e s s a r y
f o r negotiation. it is of two types:
a ) From the management side.
Prepare specific proposals for changes in the contract language.
Determine the general size of the economic package of the
c o m p a n y proposes to offer
Prepare statistical displays and support for use in negotiations.
b) From the employee side
Attitudes and desires of the employees.
Financial position of the company and its ability to pay.
Attitude of management towards various issues as reflected in
p a s t negotiations or inferred from negotiations in similar companies.
1. Identifying bargaining issues
Wage related issues, supplementary economic benefits, administrative issues, institutional issues
The negotiating phase begins with each side presenting its initial d e m a n d s . N e g o t i a t i o n
g o e s o n f o r d a y s u n t i l t h e f i n a l a g r e e m e n t i s reached. The success of
negotiation depends upon skills and abilities of negotiators.
3. Settlement and contract agreement
Agreement can be made on a temporary basis. After an initial agreement has been
made the two sides usually return to their respective constitu encies to determine
whether they have informally agreed upon is acceptable. In such case before the expiry of
both the parties consult each o t h e r a n d c a n t e r m i n a t e o r r e n e w t h e a g r e e m e n t
d e p e n d i n g u p o n t h e circumstances.
4.Ratifying the agreement
The union negotiating team explains and puts the agreement to the u n i o n m e m b e r s f o r t h e
v o t e . i f v o t e d a g r e e m e n t i s f o r m a l i z e d i n t o a contract. it is important the contract
must be clear and precise.
5.administration of the agreement
Signing the agreement is not the end of the process rather it is the bargaining of the process. The
agreement must be implemented according to the letter and spirit of the provisions of the
agreement. Management is primarily responsible for implementing th e agreement,
which must be communicated to all levels. Faulty implementation or violation of
any provision leads to disputes.
Environmental factors include:
Type of bargaining structure that exists between the union and the company.
Type of union- management relationship which exists
D. Grievance Redresal Procedure
Grievances are symptoms of conflicts in the enterprise. So they should be handled very
promptly and efficiently. It is a method by which an individual or group may express a
complaint to an agency or institution alleged to be violating a particular rule and without
fear of reprisal. The Indian Labour Conference in 1958 evolved a code of discipline which
was ratified by the national trade union and employers’ organizations. Under t h i s
code, both the parties voluntarily agree to maintain and create an
atmosphere of mutual trust and cooperation in the factory and to settle all t h e d i s p u t e s a n d
g r i e v a n c e s b y m u t u a l n e g o t i a t i o n , c o n c i l i a t i o n a n d voluntarily arbitration and
also avoid direct action.
E. Tripartite Bodies
Various bodies composed of the representatives of employers, e m p l o ye e s a n d t h e
g o v e r n m e n t h a s b e e n s e t u p f o r c o n s u l t a t i o n a n d discussion on questions
affecting labour. The Indian Labour conference, standing Labour commission, Wage
Boards and Industrial Committees o p e r a t e a t t h e c e n t r a l l e v e l . A t t h e s t a t e
level, State Labour Advisory B o a r d s h a v e b e e n s e t u p . A l l t h e s e
b o d i e s p l a y a n i m p o r t a n t r o l e i n reaching at agreements on vari ous labour
matters. The recommendations o f t h e s e b o d i e s a r e a d v i s o r y i n n a t u r e b u t
c a r r y a g r e a t w e i g h t o n employers, trade unions and the government. All
these bodies constitute the consultative machinery for the private sector.
F. Standing Orders
T o a v o i d f r i c t i o n s a m o n g s t e m p l o ye r s a n d w o r k m e n o v e r t h e t e r m s
o f employment, Govt: enacted the Industrial Employment (Standing Orders) Act
1946. It r e f e r s t o t h e r u l e s a n d r e g u l a t i o n s w h i c h g o v e r n t h e c o n d i t i o n s o f
e m p l o ym e n t o f w o r k e r s . I t a l s o s p e c i f i e s t h e d u t i e s a n d r e s p o n s i b i l i t i e s o f
b o t h t h e e m p l o ye r a n d employees and regulates standards of their contacts. The
main objective of this act is to p r e v e n t t h e d i s p u t e s a s s o o n a s i t ’ s a r i s e s b y
f r a m i n g m o d e l r u l e s f o r m a i n t a i n i n g discipline and better relation. This Act
applies to all establishments employing 100 or more workers. Under this act, each
employer has to have their standing orders certified from the certifying officer to make
them effective in the establishment. Labour Commissioner or Regional Labour
Commissioner or any other officer appointed for this purpose may be certifying officer
under the act.
G. National Arbitration Promotion Board
The Truce Resolution 1962 and the code of Discipline as evolved in 1958 recognized
the principle of voluntary arbitration. I t w a s a g r e e d t h a t a n y d i s p u t e s w o u l d
b e r e f e r r e d t o v o l u n t a r y a r b i t r a t i o n i f conciliation efforts fail. The govt: of
India took note of the intension of both the industrial partners and set up the NAPB to
promote voluntary arbitration to settle industrial disputes. the board
comprises of the representatives of employers’ and employees’ organizations, Public
Undertaking and the central and State Governments. The Board attempts to ensure
that employers and workers take greater recourse to the voluntary approach to settle
H. The Implementation Machinery
The Implementation and Evaluation Committee has been set up at the centre:-
To ensure proper implementation of the Code of Conduct, the Code of Discipline, Labour
laws, awards and agreements with a view to reducing at source the main cause of
To take preventive action by settling disputes before they assume
s e r i o u s proportions and deal with those that have defied settlement for a long time.
To evaluate the impact of major strikes, lockouts and disputes and
f i x t h e responsibility for them.
To evaluate the working and implementation of important labour
legislation, awards and policy decisions in order to assess the extent to
w h i c h t h e s e h a v e produced the desired results and to suggest the measures that may be
taken to effect improvement in them. The Central Organizations of workers and employers have
set up machinery to screen cases of industrial disputes before they are taken to courts
with a view to reducing l i t i g a t i o n . A s r e g a r d s t h e c a s e s w h i c h a r e a l r e a d y
p e n d i n g b e f o r e t h e c o u r t s , t h e implementing machinery attempts out of court
settlements by means of persuasion.
I. National Arbitration Promotion Board
The Truce Resolution 1962 and the code of Discipline as evolved in 1958 recognized t h e
principle of voluntary arbitration. It was agreed that any disputes would
b e referred to voluntary arbitration if conciliation efforts fail. The govt: of India
took note of the intension of both the industrial partners and set up the NAPB to
promote voluntary arbitration to settle industrial disputes.