Tertiarization of economy and casualization of work force are the dominant theme. Some key concerns are job creation, skill development, labour mobility, labour commitment, work culture, productivity, and competitiveness. Two phase of Indian economy are 1.inmort substitution era post independence (1947- 1991)and 2.Era of economic liberalization. NB: Employment in the large percentage of labour force in casual occupation.
Only 13% of the labour force is in the regular wage 2001 census POPULATION >1 BILLION LABOUR WORKFORCE <400 MILLION ORGANIZED SECTOR 7% UNORGANIZED SECTOR 93% SELF EMPLOYED 55% REGULAR WORKFORCE 13% CASUAL WORK FORCE 32% EMPLOYMENT IN GOVT. AND >18MILLION PBLIC SECTOR EMPLOYMENT IN PRIVATE SECTOR >9MILLION UNIONIZED WORKFORCE 4% WORKFORCE COVERED BY 2% COLLECTIVE BARGENING
Declining stability and security in employment. Declining labour intensity Declining influence of trade union. Increasing in home based work Shift from contract of service (employment)to contract for service (self-employment) TRENDS IN LABOUR MARKET •Squeeze in recruitment in government sector. •Growing casualization and contractulization of labour •Falling employment elasticities. •Merger and acquisition getting more prolific.
Aspect Primary/Agriculture Secondary/manfr. Tertiary/hitech.Wealth based Land Money/capital Knowledge/mindHuman energy Muscle Machine skill mind./brainRelationship Master & Servant Employer- Partnership employeeLeadership Authoritarian Paternalistic Consultative/ participativeMotivation Fear Favor FairnessCommunicatio Top down/one way Two way Open/transparentnProductivity Hard work/control Hard Smart over work & worker work/control over work//control work & worker over work/empowerme ntEmployment inducement investment involvementDevMgmt. Direction & control Direction & Direction &approach control control
Technology and Job creation Skill development Labour mobility Labour commitment Work culture Productivity and competitiveness
Human relation: relation between or among human being. Employee Relation: Relations between employer and employee as an individual. Employment relation: Relation between parties in an employment context, either as individuals or a collective. Employment relation covers relations between management and employees, both in unionized and non unionized situation. Industrial relation/Union management relation: collective relation between management and trade union.
Industrial relations means relationship between management and workmen in a unit or an industry. In its wider connotation, it means the organization and practice of multi-pronged relationships between workers and management, unions and workers, and the unions and managements in an industry. industrial relations is that part of management which is concerned with the manpower of the enterprise.
The four main parties who are actively associated with any industrial relations system are the workers, the managements, the organizations of workers and managements, and the State. But the scope of industrial relations cannot merely be confined to common labour-management relations or employer-employee relations. It is a comprehensive and total concept embracing the sum total of relationships that exists at various levels of the organizational structure. More specifically, it connotes relations among workers themselves within the class of employees, relations among the managements within the managerial class, and relations between the two distinct classes of workers and management. It consists of a complex network of relations that arise out of functional interdependence between workers and managements and between industrial organizations and society.
ECONOMIC FACTORS SOCIAL FACTORS Working condition A supportive environment Wage and salary structure requires both economic ,social Bonus and profit sharing and psychological rewards Job security TECHNOLOGY FACTORS Social security Scientific technique for production High degree of modernization Scientific management. POLITICAL FACTORS Improving the international relations INSTITUTIONAL FACTORS Implementing international laws Implementation of labour law Improving national political situation. Quality of collective bargaining Health of relation among employees attitude and degree of morale to work Concept of caste, color creed and religion.
Development of healthy employee-employer relationship Maintenances of Industrial Peace. Development of industrial democracy. Industrial Democracy: the employer must have the right and assess to the management in running, managing and controlling the industry. It is the management of the workers, for the workers and by the workers
EMPLOYEE-EMPLOYER RELATION:o A smart wage and salary administration.o Employees career prospects promotion and transfero Retirement benefits and medical facilities.o Training and development of employees. LABOUR MANAGEMENT RELATIONo There exist a strong collective bargaining machineryo An efficient industrial dispute machineryo Good provision for welfare measure and fringe benefits INDUSTRIAL PEACE AND PRODUCTIVITYo Try to maintain healthy and improve union management relationshipo To ensure there is no strike, logout or layoffo To ensure there is minimum man day loss per yearo To look after the up-gradation of technology and methods production.
ASPECTS ID INDUSTRIAL DEMOCRACYo To improve public relationshipo To bring humanism and professionalism in the industry LIAISON FUNCTIONo To have a strong liaison with state and central gov. through labour dept. and also with local authorityo To do constant employees level of motivation and attitude surveyo To participate in different labour conference and arrange workshop on developing healthy IR
Two basic parties, Four important employee and employer parties, employee,emplo Concerned with yer,trade union and formulation, objective government. policies, procedures and Aim to improve IR by program for human providing all these resources and its proper facilities and benefits for implementation. which the employees are legally entitled. To ensure industrial peace.
My Boat attitude: Get off, if u don’t like it. Shared boat attitude: We sail together. Don’t rock the boat. Our boat attitude: it Is our own common enterprise. Let us combine our effort to better it Your boat attitude: with sense of ownership and pride, the purpose is to let employee wholeheartedly contribute to the cause of enterprise. The approaches to IR must focus attention on solving problem on solving problems and understanding the current environment.
Dunlop considered industrial system as the subsystem of society. It is divided in to four subsystem Certain actor Certain context[technological characteristics, product , market] An ideology(to bind the industrial system together) A body of rules: created to govern the actors in the work place. It meant the regulation, policies of management.
IR system as a study of the institutions of job regulation. The institutions may be external or internal Internal regulation being the code of work rules, internal procedures, wage procedures, grievances handling. While trade union considered as external regulation.
Margerison developed two conceptual levels of IR, one intra plant level the outside of firm. At one intra plant level there could be three type of conflict, distributive, structural and human relation. The major causes of such conflicts are related to job contentment, work task and technology. Strategies adopted are collective bargaining, human relation management analysis and structural analysis. Industrial relations are also affected by social factors like urbaniation,social mobility, housing and transport problem, stress and strain, gambling,drinking and other social evils.
Its stresses the way in which an individual influence the social structure and makes the society. It attempts to study the behavioral influence Behavior at work get influenced by quality of HRM and nature of technology. Some times industrial peace itself may not ensure healthy relationship. May be there are other internal tension among employees which affects their behavior.
The problem in IR arise due to perception of management, Union and workers. These perception is about the person, the situation, the issue involved in the conflicts. Workers satisfaction depends on many factors like nature of work, attitude, working condition, wage, job security, and relation with co workers. If the worker is not satisfied, he may be dragged to dissatisfaction and this can be expressed in strikes destruction… so industrial peace is the result of correct perception and attitude of both parties.(mgmt and workers)
Take care of your employees they will take care of your organization. management must learn and know the basic needs of employee and should always try to win the people. Basic need may be economic need and psychological needs Human relation approach has it’s origin in the Hawthorne experiment as it highlight certain policies and technique to improve the morale and efficiency of employees. Industrial conflict are due to inadequate communication & lack of understanding of interpersonal factors like personality factors.
There should be bipartite machinery in every industry and every unit of the industry to settle difference from time to time with active encouragement from government. A strong promoter of collective bargaining. •Peaceful co existence of capital and labour •Trust, nonviolence and non-possession •Each individual worker is a human being •Labour management is a powerful stimulus to economy •Industrial peace is an important condition for development. • conflict can be resolved by non violence, and non cooperation.
It says there is only one source of authority and that is management. They own and therefore they control. For unitarist employers are law unto themselves. Employers perceives themselves as provider of job, income and social security. They believe that conflict is unnecessary. It prevails in large scale of unorganized structure and small scale industries. This perspective is based on assumption that an organization is composed of a group of people under a single unified loyalty structure. Conflict is irrational and trade union is avoidable.
It is based on the assumption that the organization is composed of individuals who make up distinct sectional group, each with it’s own interest, objectives and leadership. This perspective sees conflict between management and employees as rational and inevitable. Employees can organize themselves in to union to collectively safeguard their interest. So the pluralist perception is that conflict is necessary but it can be and need to be managed.
Marxian perspective is based on the notion that the production system is privately owned and motivated by profit. Control over production is exercised by managers who are agents of owner. Marxist theory believe that class conflict is necessary for social change. It seems industrial conflict is synonymous with political, and social conflict. In a capitalist system, conflict is the must. Marx seethe role of trade union in protesting against exploitation. The radical approach favors the transformation of trade union into revolutionary organization.
An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation. A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.
Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes. Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions. Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts
The state sets the framework within which industrial relations exist and it is the state alone which has the law-making powers which may substantially change the rules affecting the employment relationship. (Crouch 1982) When labour and equipments in the whole or any part of an industry are rendered idle by a strike or lockout, national dividend must be suffer in a way that injures economic welfares.
STATE 3rd party interventionTRADE EMPLOYERUNION ASSCIATION
The State as EmployerThe State as Provider of Dispute Resolution Mechanisms The State as the State
1. Market Individualism (State supports the market) 2. Liberal Collectivism (principal of ‘voluntarism’ & ‘pluralism’ – State facilitates) 3. Corporatism (State has power, capitalist focus, unions coerced into compliance)4. Bargained Corporation (‘Social partnership’)
Industrial relation are an integral aspect of social relation to influence the social force. To promote healthy employee and employer relationship. When the labour situation the state can’t be silent and hence bound to interfere. Different articles in constitution has made it compulsory for the state to intervene in certain labour issues. Minimum wage act-1948 Industrial dispute act-1947 Payment of bonus act- 1965
To look after the interest of the weakest section of the society, different articles says…. Article 39:equal pay for equal work. Health and strength workers and children are not abused. Article 42: state shall make provision for securing just and human condition for work and for maternity relief. Article 43: to secure living wage condition to maintain descent standard of life for workers. Evolution of Indian industrial relation started from the vedic period, it also depicted in Arthashastra and later on the Mogul period and British Raj period also.
In pre independent era Indian worker does not enjoy and freedom of expression or association. British employers were exploiting Indian workers Till the end of 1st world war there were no trade union. Trade dispute act 1929 Due to influence of ILO, workmen compensation act-1923, trade union act 1926 and trade dispute act 1917 were passed to provide significant protection to workers. In post independent period INTUC was formed in 1947. industrial dispute act also enacted (formed) in the same year
During 3rd five year plan, emergency caused by Chinese war, in 1962 industrial true resolution was adopted. And bonus act also passed in 1965 During 4th and 5th five year plan most emphasis was given on collective bargaining and state ensure that productivity should be increased through labour management cooperation. In 6th five year plan industrial policy act resolution was being recommended in 1956.(it is necessary that proper amenities and incentives should be provided for all those engaged in industry and the living and working condition of employee must be improved.
The role of government in IR depends on its ideological (socialist, communist, capitalist and neo-capitalist) persuasion, political (neo colonial, democratic, dictatorship or military regime) and socio-economic protectionist or neoliberal ,export oriented policies) orientation Early age- Middle age- Modern age.
Import substitution Industrialization Export oriented industrialization In south Asia with inward strategy In south east Asia with export In its first stage, development of oriented industrialization low technology consumer and 1st stage focus on low cost industrial goods for local production of low cost production consumption. of light manufacturing goods for Purpose is to promote exports largely financed by FDI industrialization locally. Given their small market and lack 2nd stage is about promoting the of local capitals they can’t sustain development of heavy industries on ISI state. like railway, atomic energy, steel The 2nd stage is characterized by for future growth emphasis on technological up gradation of industries in the first stage if EOI The Change of Economic situations of the country ultimately change the industrial system
Policies: the policies framework can be varied depend of the country’s stage and level of development. Logic of peace and cooperation during the period of planned economy and ISI Logic of competition as economies are liberalized to integrate them with global economy. The focus is on market not on labour and efficiency. Logic of co-opetition, the focus is on efficiency and equity. Legislations: through international labour standards. Institutions: may be of Facilitative, Executive or judicial. Facilitative institutions for developing and operationalizing proactive labour market. Executive also responsible for enforcing the law through labour administrative machinery through central and state govt. Most of the industrial dispute can be solved in labour court,
Definition of the stateThe ‘State’ can be defined as an institutional system of political government, with a monopoly over tax and the legitimate use of force in a society. Our set of state institutions includes: - the legislature (parliament); - the executive (government ministers); - the judiciary (courts); - central administration (the civil service); - the police and army, which from time to time have played an important role in industrial relations, especially industrial disputes; - local government; and - specialist agencies such as, in the employment field, industrial tribunals, conciliation and arbitration services, equal opportunities commissions and health and safety inspectorates
Theories of state intervention(Review Chapter 1 for general theories of IR and the role of the State)In Western democratic society the distribution of power is often mediated through organised social interests (i.e. pressure groups). Types of pressure groups: - environmental groups (e.g. Greenpeace) - cause groups (e.g. RSPCA) Royal Society for the Prevention of Cruelty to Animals - professional associations (e.g. Indian Medical Association)They also include: - trade unions (e.g. Indian Council of Trade Unions) - employer associations (e.g. Business Council of India) - business organisations in their own rightHow they influence the political process- lobby government, ministers and parliamentarians- provide submissions to parliamentary and party enquiries- use media campaigns and researched articles to persuade public and political opinion
The way political power is distributed and used in industrial relations can be seen through four different theories of state intervention.1. Pluralist theoriesKey authors: Truman (1956); Dahl (1961)Focus: Competing social groupsKey tenets:(i) The state is made of different institutions reflecting different needs and interests of society.(ii) Government is the provider of rules, regulations and policies which pressure groups representing social interests try to influence.(iii) Some pressure groups have greater resources for political influence, but none is capable of prevailing over others in all circumstances.(iv) As a consequence, politics is not governed by any single power centre, but is instead dispersed amongst ‘multiple centres of power’.(v) The conduct of government is about resolving the conflicting interests of pressure groups, with political actors using a ‘set of rules’ or commonly agreed processes for resolving conflicts.(vi) State policy outcomes are the result of the balance of competing organised social interests.
Diagram of ‘Pluralist’ view of democratic political processes Organised Social Policy Interests State OutcomesApplication to industrial relations:The state intervenes in industrial relations to reconcile competing social interests in the workplace.These interests can favour employees, employers, the state itself, or all three. None is dominant all the time. It depends on the issue provoking the intervention and the type of political resources each player can bring to bear at the time.
2. Elitist theoriesKey authors: Bottomore (1966); Nordlinger (1981)Focus: Elite dominationKey tenets(i) Societies are invariably dominated by a minority (or ‘elite’), who take the major political and economic decisions.(ii) Such elites gain their dominant position as a result of - ownership of economic resources - religious dogma or doctrine - control military power - the position they hold in large-scale organisations (e.g. political parties, public bureaucracies, trade unions, business organisations)(iii) State policy outcomes are determined by what serves the interests of ruling elites.
Diagram of ‘Elitist’ view of democratic political process Policy Outcomes State Bourgeoisie eliteApplication to industrial relations:The state intervenes in industrial relations to accommodate the interests of the ruling elite.These interests can favour employees, employers, the state itself, or all three, with none dominant and much depending on what will serve the interests of those in control of the relevant organisations and resources.
3. Marxist theoriesKey authors: Miliband (1969); O’Connor (1973)Focus: Class divisionsKey tenets(i) In advanced capitalist societies people are divided into two competing social classes—the ‘bourgeoisie’ who own the means of production and the ‘proletariat’ who have nothing to sell but their labour.(ii) Because the bourgeoisie is economically dominant in society it is able to wield decisive political power.(iii) Because the bourgeoisie is able to wield decisive political power the state acts as an instrument of class domination to maintain its dominant position.(iv) The state is put in this position because its freedom of action is limited by its dependence on a successful economic base for its continued survival.
Diagram of ‘Marxist’ view of democratic political process Policy Bourgeoisie State Outcomes ProletariatApplication to industrial relations:The state intervenes in industrial relations to secure the class interests of the bourgeoisie in the workplace.The interests served favour employers only.
4. Corporatist theoriesKey authors: Schmitter (1974); Lehmbruch (1977)Focus: Incorporated producer groupsKey tenets(i) The state is the main provider of rules, regulations and policies. (ii) Because of their control over income, employment and investment, producer groups (i.e. trade unions, large business corporations and employer associations) have the power to disrupt or frustrate the conduct of state economic and social policies.(iii) The state grants rights of ‘incorporation’ to producer groups in the determination of economic and social policies as a means of soliciting their support and cooperation for the conduct of such policies.(iv) The outcome of state economic and social policies is the consequence of negotiations with major producer groups.
Diagram of ‘Corporatist’ view of democratic political process State Policy OutcomesOther organised Producersocial interests GroupsApplication for industrial relations:The state intervenes in industrial relations to maintain control over national economic and social policies.These interests may favour employers, trade unions, or the state, but typically all three, depending on the ability of producer groups to deliver on commitments in agreements reached with the state.These interests are favoured over other organised social interests, but are not necessarily always contradictory to such interests.
Role played by the state in industrial relations (1)1. Provider of procedural and substantive rulesThe state exerts influence over industrial relations system by regulating relations between the actors. This regulation (laws) is the substantive and procedural rules of the industrial relations system.(a) Substantive rules directly regulate the terms and conditions of employment. They include: - federal legislation for minimum standards(e.g. annual leave, sick leave, equal employment opportunity, working hours, termination of employment, and the form in which wages are paid) - state legislation (e.g. occupational health and safety) - federal legislation for federal public sector (wages and conditions)(b) Procedural rules regulate the behaviour of actors participating in industrial relations bargaining. They include: - federal and state legislation establishing industrial tribunals - federal and state legislation giving tribunals power to legally recognise participating actors and to establish procedures for resolution of disputes. - federal and state legislation giving tribunals power to negotiate and ratify bargaining agreements
Role played by the state in industrial relations (2)2. Ability to manipulate social and economic environmentThe state impacts industrial relations by its social and economic policies, and its ownership and management of public services and utilities:(a) Social and economic policies (examples only). - Welfare policies impact on labour mobility and employment levels - Education policies impact on skill levels and occupational mobility - Health policies impact on absenteeism and health and safety - Taxation policies impact on wage rates and work incentives - Monetary policies impact on employment levels and real wage rates - Tariff policies impact on employer profits and collective bargaining outcomes - Employment policies impact on employment and dispute levels(b) Ownership and management of public services and utilities: all require direct state involvement in setting wages and working conditions for employees. These services and utilities include: - infrastructure e.g. ports, roads, railways and bridges - essential services e.g. hospitals and schools - public utilities (unprivatised) e.g. water, power, gas and public transport - public corporations e.g. insurance and telecommunications companies
Role played by the state in industrial relations (3)3. Influence as a major employerThe state is influential as a major employer, directly responsible for employees’ wages and conditions. In Australia, public sector employees work at federal, state and municipal levels, and (where the service is not privatised) provide: - immigration services - judiciary services - education service - pension services - port services - health services - welfare services - transport services - prison services - unemployment services - road maintenance - military services - law enforcement - garbage collection
Role played by the state in industrial relations (4)4. As a signatory to international conventionsThe state is influential because of obligations under international treaties and membership of international bodies. Many obligations involve social and labour commitments. In Australia the power to enter into these obligations is defined by the Constitution.The most important international organisations for industrial relations are :- International Labour Organisation (ILO); and- Organisation for Economic Cooperation and Development (OECD).The most important membership obligations to these organisations are:- the forty-hour working week- equal pay for work of equal value- anti-discrimination in employment and occupation.
Role played by the state in industrial relations (5)5. Through the attitudes and policies of political partiesIn pluralist democracies, political parties influence industrial relations.In India major Indian political parties have different attitude toward labour issues.