Introduction to Industrial Relations


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Introduction to Industrial Relations

  1. 1. Industrial Relations and Labour Enactments (IRLE) (UNIT – I) Course Instructor: Dr. Parikshit Joshi
  2. 2. Industrial Relations : Introduction • Labour management relation, employee employer relations, union management relations, personal relations, human relations and so on. • IR is the relationship between employees and management in the day - to - day working of industry . • IR describe relationships between management and employees or among employees and their organisations that characterise or grow out of employment. • Dale Yodar 2© Dr. Parikshit Joshi
  3. 3. Three main participants in IR • Workers and their organisation: trade union • Employers and their organisation: • Government: plays an increasing role in IR by protecting the interest of employees and employers. © Dr. Parikshit Joshi 3
  4. 4. Indian Constitution and IR • Constitutional rights : adequate means of livelihood, equal pay for equal work, similar working conditions, living wages, etc. • Article 14 says that the state shall not deny to any person equality before the law • Article 16 guarantees equality of opportunity in matters of public employment • Article 19 guarantees the right to freedom of speech and expression. • Article 24 of the constitution prohibits employment of children below 14 yrs of age in factories. 4© Dr. Parikshit Joshi
  5. 5. • Article 39 deals with same pay for same work. • Article 42 ensures good working conditions. • Article 43 deals with living wages. 5© Dr. Parikshit Joshi
  6. 6. Impact of Liberalization on IR • LPG????? • 1991 New Economic reforms were introduced. • Initial phase of liberalization led to the shock of competition • Many prosperous family business felt a shock that time • Consumer truly became empowered • Markets have become very competitive 6© Dr. Parikshit Joshi
  7. 7. • It become difficult to attract, mould, develop and retain human resource. • In order to survive the companies are reinvesting themselves by revamping their organisational culture and structure. • Communication barriers have been dismantled. • Loyalty goes down • Increase in female participation • Equal opportunities for male and female. 7© Dr. Parikshit Joshi
  8. 8. The Modern IR Concept Old Classical Modern Ownership Focus Means Result / End Factory owners Govt & Big Business Houses Govt/ Private/ Trust/ MNC Production and HR Developme nt Policy to retain employees Labour Unions Owners hold top Positions Production & Employment Production Only two layers Hire and Fire Feeling of belongingness 8© Dr. Parikshit Joshi
  9. 9. Objectives of IR • Develop and retain employee-employer relationship. • To enhance the economic status of the worker by improving wages, benefits and by helping the worker in evolving sound budget. • To regulate the production by minimizing industrial conflicts through state control. • To socialize industries by making the government as an employer. 9© Dr. Parikshit Joshi
  10. 10. Objectives of IR cont……. • To provide an opportunity to the workers to have a say in the management and decision-making. (workers participation in decision making) • To improve workers as strength with a view to solve their problems through mutual negotiations and consultation with the management. • To avoid industrial conflict and their consequences • To extend and maintain industrial democracy. 10© Dr. Parikshit Joshi
  11. 11. Factors affecting Industrial Relations • Institutional Factors – State policy, labour laws, collective bargaining agreement, labour unions. • Economic Factors – type of business organization sole proprietorship, partnership, MNC, Govt Economic Policies, labour supply in market. • Social Factors – Cast, colour, social values, norms, social status 11© Dr. Parikshit Joshi
  12. 12. • Technological Factors – introduction of new and improved technology • Psychological Factors – owners attitude, perception of workforce, motivation, morale. • Political Factors – political system, system of government political philosophy, attitude of government towards trade unions. • Global Factors – international relations, global conflicts, international labour agreements. 12© Dr. Parikshit Joshi
  13. 13. • The state has direct interest in preserving industrial peace in the country. • To promote healthy growth of trade unions and set up a well organised industrial relations to achieve industrial peace and prosperity. • Industrialized developed and underdeveloped economies steps have been taken by the state to promote a healthy growth of trade union. • The state intervention has been deemed necessary because there are numerous labour organizations which are relatively weak and all employers cannot be trusted. Role of State in IR 13© Dr. Parikshit Joshi
  14. 14. • Changing role of state Govt. – Laissez Faire: During 19th century govt played a laissez faire role in industrial relations . Under this the workers and employees were left alone to manage their affairs. – Paternalism: By the end of 19th century laissez faire was replaced by paternalism. Thinkers like Robert, Rusin and others attract the attention of Govt and public towards inhuman working conditions of factories & mine workers. Govt has also set up a royal commission on labour. 14© Dr. Parikshit Joshi
  15. 15. • Tripartism: Consultancy. • Encouragement of Voluntarism: govt given code of discipline, code of conduct and code of efficiency and welfare. • Interventions: Government also plays an interventions role, in the form of conciliation and adjudication. • Employer: Government also plays the role of employer. 15© Dr. Parikshit Joshi
  16. 16. Evolution of IR in India • Employee – employer relationship • Employers are the people who own the instrument and material of production and employ the workers. • Relationship between employee-employer was informal, personal and intimate since the business and industrial establishments were small. • The growth of the giant sized joint stock companies and business corporations, which employed thousands of workers changed the relationships. 16© Dr. Parikshit Joshi
  17. 17. • In India occupations were carried on by small manufacturers in their cottages, mostly on hereditary basis. • Slavery was common. • Master-slave relations later on converted to master-servant. • The Indian craft and arts were badly damaged during the invasions of foreign invaders, which lasted about 700 years • After invasion of East India Company in 1883, the British Industrialist developed some industries (cotton, jute, railways plantation, coal mines, etc.) 17© Dr. Parikshit Joshi
  18. 18. • Industrial relations is a by product of industrial revolution , it originates from excessive exploitation of workers by the owners of industries. • Trade unions were resisted and crushed by employers. • The first world war is the first milestone enroute to industrial relations in India. • After war prices of consumer good goes up and workers were unable to afford it. 18© Dr. Parikshit Joshi
  19. 19. • Other events which accelerated the pace of industrial relations: – Success of Russian Revolution in 1917 – Formulation of ILO – AITUC was established in 1920 – In 1924 labour party Government formed in U.K. – The Indian Trade Union Act 1926 – Royal commission on Labour (1929-31) was formed. 19© Dr. Parikshit Joshi
  20. 20. • By the end of 19th century and start of 20th century govt. started paying attention towards inhuman working conditions of mine & factory workers. • British Government set up a Royal Commission on labour (1929-1931) to conduct a study on the working conditions of Indian Labour. • As a result of the same conciliation and adjudication were formulated. 20© Dr. Parikshit Joshi
  21. 21. • After Independence Industrial Dispute Act, 1947 • Which laid down a comprehensive dispute settlement machinery to be applicable to all states and passed three important Central Labour Laws: – The Minimum Wages Act 1948, – The Employees State Insurance Act 1948 – The Employees Provident Funds Act 1952 • Five year plans of India • In 1969 first National Commission on Labour was formed and many banks, sick textile mills, sick steel plants were nationalized. • New Economic Policies in 1991 21© Dr. Parikshit Joshi
  22. 22. TRADE UNIONS • "Trade Union" means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business • Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices. 22© Dr. Parikshit Joshi
  23. 23. Objectives • Representation • Negotiation • Voice in decisions affecting workers • Member services (a) Education and training (b) Legal assistance (c) Financial discounts (d) Welfare benefits 23© Dr. Parikshit Joshi
  24. 24. Functions of Trade unions (i) Militant functions a) To achieve higher wages and better working conditions b) To raise the status of workers as a part of industry c) To protect labors against victimization and injustice 24© Dr. Parikshit Joshi
  25. 25. (ii) Fraternal functions • To take up welfare measures for improving the morale of workers • To generate self confidence among workers • To encourage sincerity and discipline among workers • To provide opportunities for promotion and growth • To protect women workers against discrimination 25© Dr. Parikshit Joshi
  26. 26. Importance Of Trade Unions • Trade unions help in accelerated pace of economic development in many ways as follows: – by helping in the recruitment and selection of workers. – by inculcating discipline among the workforce – by enabling settlement of industrial disputes in a rational manner – by helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment. 26© Dr. Parikshit Joshi
  27. 27. Contd…. Social responsibilities of trade unions include: • promoting and maintaining national integration by reducing the number of industrial disputes • incorporating a sense of corporate social responsibility in workers • achieving industrial peace 27© Dr. Parikshit Joshi
  28. 28. Trade Unionism In India Indian trade union movement can be divided into three phases. * The first phase (1850 to1900) * The second phase (1900 to 1946) * The third phase (in 1947). 28© Dr. Parikshit Joshi
  29. 29. Trade Union Act 25 March 1926 • The trade Unions Act, 1926 provides for registration of trade unions with a view to render lawful organisation of labour to enable collective bargaining. It also confers on a registered trade union certain protection and privileges. 29© Dr. Parikshit Joshi
  30. 30. 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 Labor Organization (NLO) • Trade Unions Co-ordination Centre (TUCC) • United Trade Union Congress (UTUC) and • United Trade Union Congress - Lenin Sarani (UTUC - LS) 30© Dr. Parikshit Joshi
  31. 31. Employer’s Organisation • Employers' Organizations are institutions set up to organize and advance the collective interests of employers. • They are crucial for shaping an environment conducive to competitive and sustainable enterprises that can contribute to economic and social development, and by providing services that improve and guide individual performance of enterprises. 31© Dr. Parikshit Joshi
  32. 32. • Employers’ organizations are a critical component of any social dialogue process, which can help to ensure that national social and economic objectives are properly and effectively formulated and enjoy wide support among the business community which they represent. • As one of the three constituents of the ILO, employers' organizations have a special relationship with the Organization. The ILO's Bureau for Employers' Organizations - a specialized unit within the ILO Secretariat - is responsible for the nurturing and development of that relationship 32© Dr. Parikshit Joshi
  33. 33. • Its task is to maintain close and direct relations with employers' organizations in member States, to make the ILO's resources available to them and to keep the ILO constantly aware of their views, concerns and priorities. 33© Dr. Parikshit Joshi
  34. 34. Problems of Trade Union • Multiplicity of Trade Unions and Inter-union rivalry • Small Size of Unions • Financial Weakness • Leadership Issues • Politics involved in Trade Unions • Problems of Recognition of Trade Unions. 34© Dr. Parikshit Joshi
  35. 35. International Labour Organisation(ILO) • Established in April 11, 1919 by the Versailles Peace Conference as an autonomous body associated with the League of Nations. • Its first assembly took place in Washington on April 29,1919 • There were 45 members of the ILO in 1919. • India has been a member of the ILO since its inception. 35© Dr. Parikshit Joshi
  36. 36. Objectives of ILO • Full employment and the raising of standards of living. • Workers must be given that employment in which they can have the satisfaction of giving the fullest measure of their skill and make their contribution to the common well being. • Facilities for training and the transfer of labour including migration for employment and settlement. 36© Dr. Parikshit Joshi
  37. 37. • Policies in regards to wages and earnings bonus and minimum wages. • Right of collective bargaining. • Social security measures and medical care • Adequate protection by the life and health of workers in all occupations. • Provision for child welfare and maternity protection • Provision of adequate nutrition, housing and facilities for recreation and culture • The assurance of educational and vocational opportunity. 37© Dr. Parikshit Joshi
  38. 38. • Since 1945 ILO has expanded its working in three major directions: 1) The establishment of Tripartite International Committees to deal with problems of some of the major industries 2) The holding of regional conferences and meetings of experts to study special regional problems particularly those of underdeveloped region. 3) The development of operational activities 38© Dr. Parikshit Joshi
  39. 39. ILO Membership • Today the ILO comprises 183 Member States. • In addition to the States which were Members of the International Labour Organization on 1 November 1945, any original member of the United Nations and any State admitted to membership of the United Nations by a decision of the General Assembly may become a Member of the ILO. • Communicating to the Director-General its formal acceptance of the obligations of the Constitution of the Organization. 39© Dr. Parikshit Joshi
  40. 40. Organisational Structure • ILO is a tripartite organisation consisting of representatives of the governments, employers and workers of member countries in the ratio of 2:1:1. • Three main organs of ILO: i. The International Labour Conference ii. The Governing Body iii. The International Labour Office 40© Dr. Parikshit Joshi
  41. 41. International Labour Conference • The ILC sessions held once a year and is the policy making organ of ILO • Each member country is represented by four member delegates – two representing the Government, one representing the employers and on one representing the workers. • Principal function is to formulate international social standards in the form of International Labour Conventions and Recommendations. 41© Dr. Parikshit Joshi
  42. 42. The Governing Body • Governing body is the chief executive body of the organisation and meets several times a year to formulate policy for effective programming of work and setting of agenda for the annual conference. • Membership of 40. • 20 Government representatives, 10 employers representatives and 10 representatives of employees 42© Dr. Parikshit Joshi
  43. 43. The International Labour Office • The International Labour office functions as the secretariat of the ILO. • Its main functions are preparation of the documents on varied items of the agents of the meeting of the conference collection and distribution of information on all subjects. 43© Dr. Parikshit Joshi
  44. 44. Major Activities of ILO • Creation of International standards of Labour • Employment Creation • Collection and Distribution of Information and Publication • Research & Studies • Training • Improvement of Working conditions and working environment 44© Dr. Parikshit Joshi
  45. 45. THANK YOU……… © Dr. Parikshit Joshi 45 Warm Regards: Dr. Parikshit Joshi Assistant Professor Department of Management Science Sri Ram Murti Smarak College of Engg. & Technology Bareilly (U.P.), India E-mail: Blog: