I LR PPT-1.pptx

• • Concept of Industrial Relations
• • Importance of IR
• • Labour Turnover
• • Absenteeism
• • Trade Union
• • Codes of Conduct

• INTRODUCTION
• Industrial relations has become one of the
most delicate and complex problems of
modern industrial society. Industrial progress
is impossible without cooperation of labours
• and harmonious relationships. Therefore, it is
in the interest of all to create and maintain
• good relations between employees (labour)
and employers (management).

CONCEPT OF INDUSTRIAL RELATIONS
• The term ‘Industrial Relations’ comprises of
two terms: ‘Industry’ and ‘Relations’.
• “Industry” refers to “any productive activity in
which an individual (or a group of individuals)
• is (are) engaged”. By “relations” we mean “the
relationships that exist within the industry
• between the employer and his workmen.”

• The term industrial relations explain the
relationship between employees and
• management which stem directly or indirectly
from union-employer relationship.

• Industrial relations looks at the relationship
between management and workers,
particularly groups of workers represented by
a union. Industrial relations are basically the
interactions between employers, employees
and the government,and the institutions and
associations through which such interactions
are mediated.

Objectives of Industrial Relation
• A. To safeguard the interest of labor and
management by securing the highest level of
• mutual understanding and good-will among
all those sections in the industry which
participate in the process of production.
• B. To avoid industrial conflict or strike and
develop harmonious relations, which area
essential factor in the productivity of workers
and the industrial progress of a country

• C. To raise productivity to a higher level in an era
of full employment by lessening the tendency to
high turnover and frequency absenteeism.
• D. To establish and nurse the growth of an
Industrial Democracy based on labor partnership
in the sharing of profits and of managerial
decisions, so that ban individuals personality may
grow its full stature for the benefit of the industry
and of the country as well.

• E. To eliminate, as far as is possible and
practicable, strikes, lockouts and gheraos by
• providing reasonable wages, improved living
and working conditions, said fringe benefits.
• F. To establish government control of such
plants and units as are running at a loss or
• in which productions has to be regulated in
the public interest.

• G. Improvements in the economic conditions
of workers in the existing state of industrial
• managements and political government.
• H. Control exercised by the state over
industrial undertaking with a view to
regulating production and promoting
harmonious industrial relations.

• I. Socializations or rationalization of industries
by making he state itself a major employer
• J. Vesting of a proprietary interest of the
workers in the industries in which they are
• employed.

The main aspects of Industrial
Relations are
• i. Labor Relations, i.e. relations between union
and management
• ii. Employer-employees relations, i.e. relations
between management and employees
• iii. Group relations, i.e. relations between
various groups of workmen

• iv. Community or Public relations, i.e. relations
between industry and society.
• v. Promotions and development of healthy
labor-managements relations.
• vi. Maintenance of industrial peace and
avoidance of industrial strike
• vii. Development of true industrial Democracy

IMPORTANCE OF INDUSTRIAL
RELATIONS
• The healthy industrial relations are key to the
progress. Their significance may be discussed as
under –
• 1. Uninterrupted Production
• The most important benefit of industrial relations
is that this ensures continuity of production. This
means, continuous employment for all from
manager to workers.
• The resources are fully utilized, resulting in the
maximum possible production

Reduction in Industrial Disputes
• Good industrial relation reduces the industrial
disputes. Disputes are reflections of the
• failure of basic human urges or motivations to
secure adequate satisfaction or expression
• which are fully cured by good industrial
relations. Strikes, lockouts, go-slow tactics,

• High morale
• Good industrial relations improve the morale
of the employees. Employees work with great
zeal with the feeling in mind that the interest
of employer and employees is one and the
same, i.e. to increase production

• Mental Revolution
• The main object of industrial relation is a
complete mental revolution of workers and
• employees. The industrial peace lies ultimately in
a transformed outlook on the part of
• both. It is the business of leadership in the ranks
of workers, employees and Government
• to work out a new relationship in consonance
(agreement)with a spirit of true democracy

• New Programmes
• New programmes for workers development
are introduced in an atmosphere of peace
• such as training facilities, labor welfare
facilities etc. It increases the efficiency of
• workers resulting in higher and better
production at lower costs.

• Reduced Wastage
• Good industrial relations are maintained on
the basis of cooperation and recognition
• of each other. It will help increase production.
Wastages of man, material and machines
• are reduced to the minimum and thus
national interest is protected.

DIFFERENCE BETWEEN INDUSTRIAL
RELATIONS AND HUMAN
RELATIONS
• The term “Industrial Relations” is different from
“Human Relations”. Industrial relations
• refer to the relations between the employees and
the employer in an industry. Human relations
refer to a personnel-management policy to be
adopted in industrial organizations to develop a
sense of belongingness in the workers improves
their efficiency and treat them as human beings
and make a partner in industry.

• Industrial relations cover the matters
regulated by law or by collective agreement
• between employees and employers. On the
other hand, problems of human relations are
• personal in character and are related to the
behavior of worker where morale and social
• elements predominated

• Human relations approach is personnel
philosophy which can be applied by the
management of an undertaking. The problem
of industrial relations is usually dealt with a
three levels – the level of undertaking, the
industry and at the national level. To sum up
the term “Industrial Relations” is more wide
and comprehensive and the term “Human
Relations” is a part of it.

Determining factors of industrial
relations
• History of industrial relations
• No enterprise can escape its good and bad history of
industrial relations. A good history is marked by
harmonious relationship between management and
workers. A bad history by contrast is characterized by
militant strikes and lockouts. Both types of history have
a tendency to perpetuate (indefinitely)themselves.
Once militancy is established as a mode of operations
there is a tendency for militancy to continue. Or once
• Harmonious relationship is established there is a
tendency for harmony to continue.

• Economic satisfaction of workers
• Psychologists recognize that human needs have a
certain priority. Need number one is the basic
survival need. Much of men conducted are
dominated by this need. Man works because he
wants to survive. This is all the more for
underdeveloped countries
• where workers are still living under subsistence
conditions. Hence economic satisfaction
• of workers is another important prerequisite for
good industrial relations.

• Social and Psychological satisfaction
• Identifying the social and psychological urges
of workers is a very important steps in
• the direction of building good industrial
relations. A man does not live by bread alone.
• He has several other needs besides his
physical needs which should also be given due
• attention by the employer

• Off-the-Job Conditions
• An employer employs a whole person rather
than certain separate characteristics. A
• person’s traits are all part of one system
making up a whole man. His home life is not
• separable from his work life and his emotional
condition is not separate from his physical
condition.

• Enlightened Trade Unions
• The most important condition necessary for
good industrial relations is a strong and
• enlightened labor movement which may help
to promote the status of labor without
• harming the interests of management, Unions
should talk of employee contribution and
responsibility.

Negotiating skills and attitudes of
management and workers
• Both management and workers’ representation in
the area of industrial relations come from a great
variety of backgrounds in terms of training,
education, experience and attitudes. These
varying backgrounds play a major role in shaping
the character of industrial relations. Generally
speaking, well-trained and experienced
negotiators who are motivated by a desire for
industrial peace create a bargaining atmosphere
conducive to the writing of a just and equitable
collective agreement

• Public policy and legislation
• When Government, regulates employee
relations, it becomes a third major force
• determining industrial relations the first two
being the employer and the union. Human
• behavior is then further complicated as all
three forces interact in a single employee
• relation situation.

• Better education
• With rising skills and workers’ education
expectations in respect of rewards increases.
• It is a common knowledge that the industrial
worker in India is generally illiterate and
• is misled by outside trade union leaders who
have their own axe to grind. Better
• workers’ education can be a solution to this
problem.

• Nature of industry
• In those industries where the costs constitute a
major proportion of the total cost, lowering down
the labor costs become important when the
product is not a necessity and therefore, there is
a little possibility to pass additional costs on to
consumer. Such periods, level of employment and
wages rise in decline in employment and wages.
• This makes workers unhappy and destroys good
industrial relations.

INDUSTRIAL RELATIONS
PROGRAMME
• a. Individual thinking
• b. Policy awareness and
• c. Expected group reaction

SCOPE OF INDUSTRIAL RELATIONS
WORK
• The staff employed in the industrial relations
department should know the limitations
• within which it has to function. The industrial
relations director generally has several
assistants who help him to perform his
functions effectively, and he usually reports
directly to the president or chairman of the
board of directors of an organization.

• The functions of the industrial relations staff are –
• 1. Administration, including overall organization,
supervision and co-ordination of industrial
• relations policies and programmes.
• 2. Liaison with outside groups and personnel
departments as well as with various cadres of the
management staff.
• 3. The drafting of regulations, rules, laws or orders and
their construction and interpretation.
• 4. Position classification, including overall direction of
job analysis, salary and wage administration, wage
survey and pay schedules

• 5. Recruitment and employment of workers and other
staff.
• 6. Employment testing, including intelligence tests,
mechanical aptitude tests and achievement tests.
• 7. Placement, including induction and assignment.
• 8. Training of apprentices, production workers,
foremen and executives.
• 9. Employee counseling on all types of personnel
problems-educational, vocational, health
• or behavior problems.
• 10. Medical and health services.

• 11. Safety services, including first aid training
• 12. Group activities, including group health
insurance, housing, cafeterial programmes and
• social clubs.
• 13. Suggestion plans and their uses in labor,
management and production committees.
• 14. Employee relations, especially collective
bargaining with representatives and settling
• grievances.
• 15. Public relations.

• 16. Research in occupational trends and
employee attitudes, and analysis of labor
turnover.
• 17. Employee records for all purposes.
• 18. Control of operation surveys, fiscal
research and analysis.
• 19. Benefit, retirement and pension
programmes

FUNCTIONAL REQUIREMENTS OF A
SUCCESSFUL INDUSTRIAL
RELATIONS PROGRAMME
• Top Management Support:
• Sound Personnel Policies:
• Adequate Practices should be developed by
professionals
• Detailed Supervisory Training:
• Follow-up of Results:

TRADE UNION
• Define Trade Union?
• According to Dale Yoder defined as “A trade
union is a continuous association of wage –
earners for the purpose of maintaining or
improving the conditions of their working
lives”.

• What do you mean by Trade Union?
• In the words of Indian Trade Union Act, 1926, “A trade
union is any combination, whether temporary or
permanent, formed primarily for the purpose of
regulating the relations between workmen and
employers, or between workmen and workmen,
between employers and employers, or for imposing
restrictive conditions on the conduct of any trade or
business, and includes any federation of two or more
trade unions”.

• What is the
• i. Need for Trade Union?
• ii. Functions of Trade Union?
• iii. Problems of Trade Union?
• iv. Types of Trade Union

Need for Trade Union
• Security of employment
• Fair Wages
• To get a common Plat Form
• Principle of unity

. Functions of Trade Union
• Functions relating to members
• Functions relating to Organization
• Functions relating to union
• Functions relating to the society

Problems of Trade Union
• Un even Growth( Industry wise-Area wise)
• Small size unions
• Financial weakness
• Multiplicity of union and Inter-union Rivalry
• Leadership issues
• Poilticalisation of union
• Problem of Recognition of unions
• An out dated Trade unit or law

Types of Trade Union
• The Unions Classified According to Purpose.
• i. Reformist Unions
• a. Business Unionism
• b. Friendly or Uplift Unionism
• ii. Revolutionary Unions
• a. Anarchist Unions
• b. Political Unions
• c. Predatory Unions

• Union Classified on the Basis of Membership
Structure.
• i. Craft Union
• ii. Staff Union
• iii. Industrial Union
• iv. General Union

• Reformist Union:
• These unions are those which aim at the
preservation of the capitalist society and the
maintenance of the usual employer – employee
relationship, elimination of competitive system of
production.
• They neither seek comprehensive change nor
wish to destroy the existing social, economic or
political structure of the State.

• Craft Union:
• It is an organization of workers employed in a
particular craft or trade or in a single or two or
three related trades / crafts / occupations.
Such organizations link together those workers
who have similar skills, craft training and
specialization. This Union is also called as
Horizontal Union.

TRADE UNION AND ITS IMPORTANCE
• The existence of a strong and recognized trade
union is a pre-requisite to industrial
• peace. Decisions taken through the process of
collective bargaining and negotiations
• between employer and unions are more
influential. Trade unions play an important role
and are helpful in effective communication
between the workers and the management. They
provide the advice and support to ensure that the
differences of opinion do not turn into major
conflicts.

• 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

• TRADE UNION – CONCEPT
• The classic definition of trade union was given
by Sidney and Beatrice Webb states
• that it is “a continuous association of wage
earners for the purpose of maintaining and
• improving conditions of their working lives.” In
their time, the brand to trade union
• organizations that existed was small and local
representation a specific skill or trade.

• Dale Yoder, “A trade union is a continuous
association of wage-earners for the purpose
• maintaining of improving the conditions of
their working lives.”

• The characteristic which define a trade union includes
• i) A Statement that the organization is a trade union.
• ii) A Statement of its principal objectives, clearly
specifying the fact that the organization formed is for
the betterment of its members, i.e workers.
• iii) Registration with the Registrar of Trade Unions
having jurisdiction on the area where Trade Union
functions
• iv) Independence from the employer, which may be
evident form the certificate issued by the Registrar of
Trade Unions.
• v) Affiliation with the central trade union organization

• General Features of Trade Unions
• Coming out of a vast array of literature on the
subject, here a few general features
• trade unions are detailed out:
• (1) The trade union is an association either of
employers or employees or of independent
• workers. Accordingly, in India such unions may
consist of

• Merchant’s or employers’ associations (like
the Employers’ Federation of India,
• the All-India Manufacturers’ Organisations,
the All India Organisation of Industrial
• Employers, the Tea Planters’ Association of
North India, the United Planters’
• Association of South India, the Indian Jute
Mills Association, the Indian Sugar

• Mills Association the Bomby Mill Owners’
Association, and the Indian Paper
• Mills Association;
• ii. The general labour unions
• iii. The friendly societies and

• iv. Combination of intellectual labour like (the
All-India Teachers’ Association; the
• All-India Bank Employees’ Association; the All-
India Medical Doctors’
• Association; the Railway men’s Federation;
National Federation of Posts and
• Telegraphs Workers; the All-India Mine
Workers’ Federation etc.)

• FUNCTIONS OF TRADE UNIONS IN INDIA
• As per the Indian Trade Union Act, 1926, the
primary functions of a trade union are
• to protect and promote the interests of the
workers and the conditions of their employment.
• They can also have other objectives, which are
not inconsistent with this primary purpose
• or opposed to any law. In India, trade unions
generally undertake the following functions:

• (i) To achieve higher wages and better working
and living conditions for the members.
• (ii) To acquire control over industry by workers.
• (iii) To minimize the helplessness of the individual
workers by making them stand-up
• united and increasing their resistance power
through collective bargaining;
• protecting the members against victimization and
injustice by employers.

• (iv) To raise the status of the workers as partners
in industry and citizens of society by
• demanding an increasing share for them in the
management of industrial enterprises.
• (v) To generate self-confidence among the
workers.
• (vi) To encourage sincerity and discipline among
workers.
• (vii) To take up welfare measures for improving
the morale of the workers.

• The National Commission on Labour has underscored
certain basic functions to which
• trade unions have to pay greater attention such as:
• i. To secure fair wages for workers.
• ii. To safeguard the security or tenure and improve
conditions of service.
• iii. To enlarge opportunities for promotion and training.
• iv. To improve working and living conditions.
• v. To provide for educational, cultural and recreational
facilities.

• vi. To cooperate and facilitate technological
advancement by broadening the
• understanding of workers in the issues involved in
their jobs.
• vii. To promote identity of interests of the
workers with their industry.
• viii. To offer responsive cooperation in improving
levels of production and productivity,
• discipline and high standards of quality.
• ix. To promote individual and collective welfare.

• Besides these basic functions of trade unions, the
Commission enjoined the following
• responsibilities upon the unions:
• (i) Promotion of national integration.
• (ii) Generally, influencing the socio-economic
policies of the community through
• the active participation in their formulation at
various levels.
• (iii) Instilling in their members a sense of
responsibility to industry and the community.

• The First Five-Year-Plan while spelling our the role of trade
unions emphasized that
• they should:
• (a) Present plans to workers so as to create enthusiasm
among them for the plans.
• (b) Exercise the utmost restraint in regard to work
stoppage.
• (c) formulate wage demands which are attuned to the
requirements of economic
• development and are in keeping with considerations of
social justice.
• (d) Assume greater responsibility for the success of the
productive effort. 20

• The principal function of the trade union is the regulation
of relations between the
• employers (management) and employees (workmen), and
also the provision of benefit to
• its members. In this vein, it carries out the following
objectives:
• (1) To organization of all eligible members under one
platform.
• (2) To represent the workers to management in cases of
disputes or differences.
• (3) To enter in the collective bargaining and other
agreement on behalf of workers.
• (4) To represent workers on various participative forums.

• (5) To undertake various activities for the
welfare of its members.
• (6) To provide benefit to members in case of
sickness, old age, trade disputes,
• unemployment, litigation and also to provide
funeral expenses.
• (7) Furtherance of political objectives.
• (

• 8) To participate in the work of any association
that furthers the activities of trade
• unions and its members.
• (9) To arrange the necessary activities for the
social and moral upliftment of workers.
• (10) To arrange for printing or publishing
facilities for the benefit of workers.

Unit II
• INDUSTRIAL CONFLICTS
• Industrial Dispute has been defined as “any
dispute or difference between employers
• and employers or between employers and
workmen or between and workmen which is
• connected with the employment of non-
employment, or the terms of employment or the
• conditions of labour, of any person.(Sec.2(k),
Indian Trade Unions Act, 1926)

• The definition very wide and takes within its
fold many disputes between an employer
• and a workman. A dispute is an industrial di(a)
There should be an industry, employer and
workman. There must be a “collective
• will of substantial or appreciable number of
workmen taking up the cause of the
• aggrieved workman. It must be in a position to
redress the grievance.

• (a) There should be an industry, employer and
workman. There must be a “collective
• will of substantial or appreciable number of
workmen taking up the cause of the
• aggrieved workman. It must be in a position to
redress the grievance.
• (b) There should be a real and substantial dispute
or difference and should be one in which the
workman is substantially interested, i.e., there
must be ‘community of interest’.

• (c) The dispute should be between the employer
and his workman, between employers
• and employers or between workman and
workmen.
• (d) The dispute must be connected with: (i) the
employment or (ii) non – employment,
• or (iii) terms of employment or with conditions of
labour. Non – employment
• includes retrenchment and refusal to reinstate.

• e) There should be a contractual relationship between the
employer and the workman.
• The former following a trade, business and manufacture
and the latter following
• any calling, service, or employment in aid of employers
enterprise.
• (f) The dispute should relate to existing industry, and not a
dead on one which is not
• even in existence.
• (g) An individual dispute could assume the character of an
industrial dispute provided
• it is sponsored either by the trade union or by a number of
workmen.

CERTAIN ASPECTS OF INDUSTRIAL
DISPUTES ARE DISCUSSED AS
BELOW
• (a)Employment and non employment:
Besides employment, conditions relating to
• non employment also constitute a dispute.
The term non employment includes
• retrenchment as well as refusal to reinstate

• (b)Individual dispute and industrial dispute: Before
introduction of the Section
• 2-A of the Act an individual dispute could not attain the
status of dispute unless
• raised by the trade union or a number of workmen.
However, Section 2- A has its
• own limitation. If fact all individual disputes cannot be
termed as industrial dispute.
• The disputes connected with the discharge, dismissal
retrenchment or termination
• cannot be termed as industrial dispute

• (c) Disputes regarding facilities: For any
industrial dispute the tribunals and court
• has adequate jurisdiction to pass proper and
reasonable order. But the facilities
• like housing, education and medical are the
responsibilities of the state. Therefore,
• such obligations cannot be imposed on the
employer

• (d)Withdrawal of privilege of trade union
leader: In case where any privilege is
• given to a trade union leader and its
withdrawn by the management it cannot from
• a subject matter of dispute

• (e)Dispute relating to workmen employed by the
contractor: The question
• whether the disputes relating to workmen employed
by the contractor, can be
• regarded as dispute is quite controversial. In this
context the case of Vacuum
• Refining Company, is leading one. The company in
question used to give annual
• contract for maintenance of plants and premises. In
the year 1970 it employed 67
• workers whereas in the next year only 40 workers were
employed

• Lay off (Section 2 kkk): It means “the failure,
refusal or inability of an employer
• on account of shortage of coal, power or raw
material of the accumulation of
• stocks of the breakdown of machinery; natural
calamity or for any other connected
• reasons to give employment to a workman
whose name is borne on the muster
• rolls of his industrial establishment and who has
not been retrenched.

• (g) Lockout (Section 21) : Lockout means “the
temporary closing of place of
• employment, or the suspension of work, or
temporary refusal by an employer to
• continue to employ any number of person
employed by him.
• In cash of a lay-off, owing to the reasons specified
in the definition, the employer is
• unable to give employment to one or more
persons.

GOVERNMENT MACHINERY TO
RESOLVE INDUSTRIAL DISPUTES
• One of the principal aims of the Industrial
Disputes Act is to harmonise the conflicting
• interest of employers and employees engaged in
industrial establishments as defined in the
• Act. The advent of the doctrine of welfare has
cast responsibilities on the State to participate
• actively in the prevention and settlement of
industrial conflicts which are of common
• occurrence under the present economic set-up.

• The various methods and machinery under
the industrial disputes act can be classified
• as under the following heads:
• (I) Conciliation
• a. Works committee
• b. Conciliation officer
• c. Board of conciliation

• (II) Arbitration
• d. Court of inquiry
• (III) Adjudication
• e. Labour court
• f. Industrial tribunal and
• g. National tribunal

• Conciliation
• Conciliation is an important method for the
settlement of industrial disputes through
• third party intervention. It is an attempt to
reconcile the views of disputants, to bring them
• to an agreement. Conciliation is generally
understood as the friendly intervention of a
neutral
• person, in a dispute, to help the parties to settle
their differences peacefully.

• Works committee (Section 3): the following are the
objectives of the works
• committee:
• (1) To promote measure for securing and preserving good
relations between employer
• and employees.
• (2) To strive for minimizing the difference of opinion in
regard to matters of mutual
• interest between the employees and the employer. It is
meant to create a sense of
• partnership or comradeship between the employers and
workmen

• Conciliation Officer (Section 4): Under the
act, the appropriate government is
• empowered to appoint desired number of
conciliation officers, by notification in
• the Official Gazette, for the settlement of
industrial disputes.

• The number of Conciliation Officers to be appointed, is
determined by the appropriate
• government, taking into account the volume of work
and the quality of industrial disputes
• that actually exist or may arise. A Conciliation Office
may be appointed for a specified area
• or for specified industries of for one or more specified
industries and either permanently or
• for a specified area or for specified industries or for
one or more specified industries and
• either permanently of for a limited time.

• Duties of the Conciliation Officer: The Act
provides (under Sec.12) that (i) if an
• industrial dispute exist or is apprehended in a
public utility industry, the Conciliation Officer
• shall hold conciliation proceedings: and (ii) in
case of other industry, his power is
discretionary,
• i.e he may or may not hold such proceedings

• Board of conciliation (Section 5): A board of conciliation is
constituted as an adhoc
• body by the appropriate government. Its purpose is to
medicate and to induce the parties
• to come to a fair and amicable settlement, so the
appropriate government is not empowered
• to constitute a Board for the purpose of referring criminal
proceedings. The board cannot
• enforce an award. It also cannot thrust upon the
contending parties its own terms and
• conditions of settlement. It can take action only when a
dispute has been refereed to it by
• the government.

• Arbitration
• (A) Court of Inquiry (section 6): A court of inquiry is
constituted, as an ad hoc
• body as the occasion may arise, by the appropriate
government. It can inquire into any
• matter connected with or relevant to industrial dispute; but
not into the dispute itself. The
• constitution of the court has to notified in the Official
Gazette. It may consist of one
• independence person or such number of independent
persons as the appropriate
• government thinks fit

• If there are more than two persons, one of them
shall be appointed
• as the chairman. The appointment of court
together with the names of persons constituting
• it requires to be notified in the official gazette. A
court having the prescribed quorum, may
• act notwithstanding the absence of the chairman
or any of its members of any vacancy in its
• number.

• The court of inquiry is not required to make
any recommendations for resolving
• disputes. It is seldom appointed, as it is a
superfluous and ad hoc body. It has no power
to
• impose any settlement upon the parties. It’s
merely a fact finding machinery.

• 2.4.4 C. Adjudication
• The ultimate legal remedy for the settlement
of an unresolved dispute is its reference
• to adjudication by the government. The
adjudication involves intervention in the
dispute by
• a third party appointed by the government for
the purpose of deciding the nature of final
• settlement.

• (a) Labour Court (Section 7) : One or more
labour curt may be constituted by the
• appropriate government by notification in the
Official Gazette, for adjudication on industrial
• disputes relating to any matter specified in the
Second Schedule of the Act, and for
• performing such other functions as may be
assigned to them.

• (D) Industrial Tribunal (section 7 A) : The
appropriate government may appoint one or
• more Industrial Tribunals for the adjudication of
industrial disputes relating to any matter
• whether specified in the Second Schedule of the
Third Schedule. The matters which are in
• the form of new demands and give rise to
industrial disputes, which affect the working of a
• company or industry, are usually referred to an
industrial tribunal

• National Tribunal (Section 7 B): The Central
Government may, by notification in
• the official gazette, constitute one or more
national tribunals for adjudication of industrial
• disputes: (i) involving questions of national
importance; or (ii) which are of such a nature
• that idsutries in more than one state are likely
to be interested in, or affected by such,
• disputes.

• 2.5 MEDIATION
• Mediation’ is the ancient art of the peace-
maker. It has been practiced in a number of
• areas when people disagree. It is an ancient
and honorable process for the settlement of
• disputes – disputes between two warring
nations, disputes between litigants, disputes
• between labour and management, and in
general, disputes between people

• 2.6 CONCILIATION
• Conciliation is the most important method for the
prevention and settlement of industrial
• disputes through third party intervention. It is an
attempt to reconcile the views of the
• disputants and bring them to an agreement.
Conciliation is generally understood as the
• friendly intervention of a neutral person in a
dispute to help the parties to settle their
• differences peacefully.

• 2.6.2 Role of the Conciliator
• The role of a conciliator may be discussed
under following heads:
• (a) As a Discussion Leader
• As a discussion leader, the conciliator reduces
irrationality and antagonism between
• the parties. He guides them towards a
problem-solving approach to their dispute;

• (b) As a Safety Valve
• (c) As a Communication Link
• (d) As an Innovator
• (e) As a Sounding Board
• (f) As a Protector
• (g) As a Fail-Safe Device
• (h) As a Stimulator
• (j) As a Face Saver

• As a Promoter of Collective Bargaining
• While intervening in a dispute, he not only
concerned with promoting a settlement,
• but often assists in collective bargaining and
guides the parties in the development of their
• relationship

• 2.7 ARBITRATION
• 2.7.1 Concept
• Arbitration is a means of securing an award on a conflict
issue by reference to a third
• party. It is process in which a dispute is submitted to an
impartial outsider who makes a
• decision which is usually binding on both the parties. It is a
process where there is a hearing
• and a determination of a cause between parties in
controversy by a person or persons
• chosen by them, or appointed under a statutory provision.

• 2.7.2 Types of Arbitration
• Arbitration may be ‘voluntary’ or ‘compulsory’.
• Voluntary arbitration implies that the two contending
parties, unable to compose their
• differences by themselves or with the help of the mediator
or conciliator, agree to submit
• the conflict/dispute to an impartial authority, whose
decision they are ready to accept. In
• other works, under voluntary arbitration, the parties to the
dispute can and do themselves
• refer voluntarily any dispute to arbitration before it is
referred for adjudication.

• Compulsory arbitration, on the other hand, is
one where the parties are required to
• accept arbitration without any willingness on
their part. When one of the parties to an
• industrial dispute feels aggrieved by an act of
the other, it may apply to the appropriate
• government to refer the dispute to
adjudication machinery

• 2.9 ADJUDICATION
• Adjudication involves intervention in the dispute by a third
party appointed by the
• government for the purpose of deciding the nature of final
settlement.
• 2.9.1 Types of Adjudication
• When the government gets a report of the failure of
conciliation proceedings, it has to
• decide whether it would be appropriate to refer the dispute
to arbitration. The reference of
• dispute to adjudicating is at the discretion of the
government

• When both parties, at their own accord, agree
to refer the dispute to adjudication, it
• is obligatory on the part of the government to
make a reference. When a reference to
• adjudication is made by the parties, it is called
Voluntary Adjudication

• Three-Tier System of Adjudication
• The Industrial Disputes Act, 1947 provides for a three-tier system of
adjudication
• (1) Labour Courts;
• (2) Industrial Tribunals; and
• (3) National Tribunals.
• These are the adjudication bodies which decide the disputes refereed to
them by the appropriate government and pass their awards.
• The Labour Courts adjudicate upon disputes listed in Schedule II of the
Act.
• The Industrial Tribunals adjudicate upon disputes which are of national
importance,
• or when the dispute is of such a nature as to effect industrial
establishment situated in more than one state.

LABOUR WELFARE
• Concept of Labour welfare
• Welfare Measures – voluntary & non-voluntary
• Statutory welfare measures
• Welfare Funds
• Workers’ Education
• Training Schemes

• Labour and Labour Welfare sub-sector
consists of six main programmes viz. Labour
• Administration, Rehabilitation of bonded
labour, Assistance to Labour Cooperatives,
• Craftsmen training programme,
Apprenticeship training programme,
Employment Services and Sanjay Gandhi
Swavalamban Yojana.

• 3.2 WELFARE AND WORKING CONDITIONS
• The Encyclopedia of Social Science (Vol. XV, 1935)
defines labour welfare as “The
• voluntary efforts of the employers to establish
within the existing industrial system, working
• and sometimes living and cultural conditions of
the employees beyond that which is required
• by law, the custom of the industry and the
conditions of the market

• Labour welfare implies providing better work
conditions, such as proper lighting,
• heat control, cleanliness, low noise level, toilet
and drinking-water facilities, canteen and
• rest rooms, health and safety measures
reasonable hours of work and holidays, and
welfare
• services, such as housing, education,
recreation, transportation, and counseling.

• 3.3 IMPORTANCE OF LABOUR WELFARE
• In India, welfare is of the statutory and the non-
statutory kinds. Though statutory
• welfare ensures a bare minimum of facilities and
reasonably good working conditions,
• employers are free to provide, or not to provide,
non-statutory welfare. However, practically
• all organizations in India provide non-statutory
measures in varying degrees.

• 3.3.1 A – Labour
• Labour Administration
• A brief description of the important schemes
under the Labour Administration Sub-
• Sector is given below. During Tenth Five Year
Plan, 2002-2007 outlay of Rs. 568.00 lakh
• is provided and Rs.40.00 lakhs is provided for
Annual Plan 2002-2003.

• (1) Training & Research Programme
• It is proposed to train officers of the Labour
Department in connection with various
• Labour Laws implemented in the State. A
provision of Rs.1.00 lakh is provided in
• 2002-2003 and outlay for Tenth Five Year Plan
2002-2007 is Rs.10.00 lakh.

• (2) Scheme for wide Publicity to various
Labour Laws.
• It is proposed under this Scheme to regulate
service conditions of workers and to
• give publicity to various labour laws through
the media like television, radio, short
• documentaries, display of slides in rural
theatres, video films, posters, folders and
• newspapers etc

• (3) Strengthening of Medical wing of the Directorate
of Industrial Safetyand
• Health
• There are different types of industries in Maharashtra
like heavy and light engineering,
• heavy and light chemical industries, petrochemicals,
pesticides, fertilizers, textile and
• Electronic Industries. All these pose their own potential
hazards, which may cause
• acute And chronic side effects on the health of the
workers

• (4) Improvement of communications, mobility of
Factory Inspectors
• For the quick transmission of messages relating
to factory accidents, gas leaks, fires
• andDisasters in the area a broad network of
office/ residential telephones is an essential
• Pre-requisite for the Factory Inspector, the
concerned Dy.Chief Inspector of Factories,
• the Chief Inspector and from C.I.F.to higher
authorities.

• Rehabilitation of Bonded Labour
• The Bonded Labour System (Abolition) Act, 1976 which
came into force with effect
• from 25th October 1975.
• The work pertaining to rehabilitation of bonded labour
is entrusted to Revenue and
• Forests Department. The Collectors have been
instructed to take suitable action for
• rehabilitation. The bonded labourers freed from
bondage are to be rehabilitated in the
• ongoing works of Government like IRDP, EGS etc

• Assistance to Labour Cooperatives
• There are 4,422 Labour Contract Societies in
the State with a total membership of
• 2,20,000. The membership of labour contract
societies are mainly from weaker section
• community.

• 3.3.2 B –Training
• CRAFTSMEN TRAINING PROGRAMME (Industrial
Training Institutes)
• The Craftsmen Training Programme is controlled by the
Directorate General of Employment and Training
(DGET), Ministry of Labour, Government of India and
the curriculum in various vocations is executed as per
directives received from it. Thus the training
programme is chalked out on National basis and at
State level, it is administered on the basis of norms and
guidelines laid down by National Council for Vocational
Training

• Main Thrust Areas
• (i) Modernisation of Existing Trades,
• (ii) Maximum utilisation of Existing Infrastructure,
• (iii) Creating facilities for Training of Instructors,
• (iv) Creation of Post of Training and Placement
Officer to facilitate placement of ITI
• pass-outs and to promote better interaction with
industries.

• v) Implementation of Government decision to
established ITIs at each Taluka and
• promote women’s Participation in C.T.S.
training.
• (vi) Creation of additional Training facilities in
the popular trades under Apprentice
• ship Act, 1961.
• (vii)Creation of INTERNET facilities to develop
better MIS.

• Replacement of deficient equipments in
Existing ITI’s
• The ITIs’ training is need-based and unless it is
constantly updated, the same cannot
• be of any use to the Industrial world. Updating
of curriculum results in new requirement of
• tools and gadgets, shop outfits and
machineries

• Removal of deficiency of staff in existing ITIs.
• Staff is created in ITI’s as per the norms laid down
by DGE T in its training manual.
• The requirements of staff in ITIs are related to its
strength and additional staff is required to
• be created with the increase in intake. However,
the required staff is not provided at the
• time of establishing new ITIs as well as
introduction of additional seats.

• Acquisition of Land
• In order to acquire land for the construction of
ITI buildings, an outlay of Rs.100.00
• is provided in Tenth Five Year Plan 2002-2007.
The outlay for Annual Plan 2002-2003 is
• Rs.17.06 lakhs.

• Construction of workshops and
Administrative buildings
• At present, there are 347 Government ITIs out
of which 95 institutes have their own
• buildings and workshops. An outlay of
Rs.9273.00 lakhs is provided for Tenth Five
Year
• Plan 2002-2007 and an outlay for Annual Plan
2002-2003 is Rs.4173.59 lakhs.

• Construction of Staff Quarters
• As per norms laid down by NCVT 50 percent of
the staff is required to be provided
• with residential facility. The provision of such
facility is particularly essential because costly
• equipment is installed in ITI workshops hence
presence of some responsible staff members
• is essential on the premises.

• Construction of Hostel Buildings for Trainees
• The Trainees of ITIs come generally from economically
lower strata of the Society.
• Many of the trainees come from their villages to undertake
ITI training and do not find
• suitable place to reside. NCTVT has also fixed norms
according to which 20 percent of
• the trainees are to be provided with hostel facilities. An
outlay of Rs.400.00 lakhs is provided
• for Tenth Five Year Plan 2002-2007. An outlay for Annual
Plan 2002-2003 is Rs.40.79
• lakhs.

• The ultimate legal remedy for the settlement of an
unresolved dispute is its reference
• to adjudication by the government. The adjudication
involves intervention in the dispute by
• a third party appointed by the government for the
purpose of deciding the nature of final
• settlement.
• On getting a report for the failure of conciliation, the
government has to decide whether
• it would be appropriate to refer the dispute to
adjudication

• The rational behind this is that
• the developing countries can ill-afford to suffer from
loss of production due to long-draw
• strikes and lockouts. Further, the trade union
movement is yet not storing and mature
• enough to adopt and rely on only collective bargaining
for protecting the interest of the
• workers. Therefore, the necessity for intervention by
the government is felt. Thus, the
• government does by making references of the dispute
to the adjudication machinery.

• A labour court shall consist of one person only, to be
appointed by the appropriate
• government. Such a person should have been, for a
period of not less than 3 years, a
• district judge or an additional district judge or has held
any judicial office in India for not
• less than 7 years; or has been a presiding officer of a
lobour court for not less than 5 years.
• No person shall be appointed or continue in the office
of the labour court if he is not an
• independent person, or he has attained the age of 65
years.

• The labour court usually deals with matters which arise
in
• day-to-day working.
• The matters specified in the Second Schedule are:
• (1) The propriety or legality an employer to pass an
order under the Standing Orders;
• (2) The application and interpretation of Standing
Orders;
• (3) Discharge or dismissal or termination of services
including reinstatement of or grant
• of relief to employees wrong fully dismissed;

• (4) Withdrawal of any customary concession
or privilege;
• (5) Illegality or otherwise of a strike or lockout;
• (6) All matters other than those specified in
the Third Schedule which fall within the
• jurisdiction of Industrial Tribunal. It shall
perform such other functions as may be
• assigned to it under the Industrial Disputes
Act.

• (D) Industrial Tribunal (section 7 A) : The
appropriate government may appoint one or
• more Industrial Tribunals for the adjudication of
industrial disputes relating to any matter
• whether specified in the Second Schedule of the
Third Schedule. The matters which are in
• the form of new demands and give rise to
industrial disputes, which affect the working of a
• company or industry, are usually referred to an
industrial tribunal.

• An industrial tribunal may be appointed for a
limited period on an ad hoc basic or
• permanently.
• The matters specified in the third Schedule are:
• 1. Wages, including the period and mode of
payment:
• 2. Compensatory and other allowances
• 3. Hours of Work and rest intervals
• 4. Leave with wages and holidays

• 5. Bones, profit sharing, provident fund and gratuity
• 6. Shift working otherwise than in accordance with
standing orders
• 7. Classification of grades
• 8. Rules of discipline
• 9. Rationalization
• 10. Retrenchment of workmen and closure of an
establishment or undertaking
• 11. Any other matter that may be assigned to them
under Act.

• MEDIATION
• Mediation’ is the ancient art of the peace-
maker. It has been practiced in a number of
• areas when people disagree. It is an ancient
and honorable process for the settlement of
• disputes – disputes between two warring
nations, disputes between litigants, disputes
• between labour and management, and in
general, disputes between people

• Warren (a former Director of the United States
Conciliation Service) has stated.
• “Despite the fact that other forms of settlement
of labour disputes are more dramatic and
• have captured the headlines more often, the
process of mediation has proved successful in
• reaching settlement in the great majority of those
cases in which agreement had not been
• reached by direct negotiation between the
parties.”

• Kinds of Mediator
• There are three kinds of mediators, according
to Prof. Pigou, namely
• (i) The eminent outsider;
• (ii) The non-governmental board; and
• (iii) The board connected with some part of
the government system of the country.

• CONCILIATION
• Conciliation is the most important method for the
prevention and settlement of industrial
• disputes through third party intervention. It is an
attempt to reconcile the views of the
• disputants and bring them to an agreement.
Conciliation is generally understood as the
• friendly intervention of a neutral person in a
dispute to help the parties to settle their
• differences peacefully

• It is a process by which representatives of
workers and employers are brought together
• before a third person or a group of persons
with a view to persuading them to arrive at an
• agreement by mutual discussion between
them.

• A unique and essential characteristic of the
conciliation process is its flexibility,
• informality and simplicity which sets it apart
from other methods of settling industrial
disputes.
• A conciliator generally does not follow the
same procedure in every case; he adjusts his
• approaches, strategy and techniques to the
circumstances of each dispute

• Qualities of Conciliator
• There are certain basic characteristics which are essential
to the work of conciliation.
• A conciliator must have these if he is to win the trust and
confidence of the parties.
• (i) Independence and impartiality are the two attributes
which every conciliator should
• possess. It is essential that he should not only possess
these qualities but be also
• seen to possess them. He must be above suspicion; and
both parties must have
• confidence in his integrity and neutrality

• Since conciliation, in certain cases, involves
arduous work, a conciliator should be
• physically and psychologically fit for the
rigours of his task. He must have a strong
• and deeply held conviction of importance and
usefulness of conciliation

• A conciliator should never allow conciliation
proceedings before him to constitute
• a mere formality or a step on the road to
arbitration

• Because of the nature of his work, a
conciliator must have the ability to get along
• well with people. He must be, to a certain
extent, a specialist in human relations, in
• the relations between the parties when they
come face-to-face, and in his own relations
with them

• 2.6.2 Role of the Conciliator
• The role of a conciliator may be discussed
under following heads:
• (a)As a Discussion Leader
• (b) As a Safety Valve
• (c) As a Communication Link
• (d) As an Innovator
• (e) As a Sounding Board

• f) As a Protector
• (g) As a Fail-Safe Device
• (h) As a Stimulator
• (i) As an Adviser
• (j) As a Face Saver

• As a Promoter of Collective Bargaining
• While intervening in a dispute, he not only
concerned with promoting a settlement,
• but often assists in collective bargaining and
guides the parties in the development of their
• relationship.

ARBITRATION
• Arbitration is a means of securing an award on
a conflict issue by reference to a third
• party. It is process in which a dispute is
submitted to an impartial outsider who makes
a decision which is usually binding on both the
parties.

• Arbitration is to be distinguished from
conciliation not only by the fact that its
decision
• is binding on the parties but also by its
different approach and spirit.

• Arbitration is also to be distinguished from
mediation. Arbitration is a judicial process,
• while mediation has a legislative tinge. The
award of the arbitrator rests on equity and
• justice, i.e., there is no scope for compromise,
while compromise is the very essence of
• mediation

• 2.7.2 Types of Arbitration
• Arbitration may be ‘voluntary’ or ‘compulsory’.
• Voluntary arbitration implies that the two contending
parties, unable to compose their
• differences by themselves or with the help of the mediator
or conciliator, agree to submit
• the conflict/dispute to an impartial authority, whose
decision they are ready to accept. In
• other works, under voluntary arbitration, the parties to the
dispute can and do themselves
• refer voluntarily any dispute to arbitration before it is
referred for adjudication

• 2.8 REFERENCE OF DISPUTE TO ARBITRATION UNDER INDUSTRIAL
• DISPUTES ACT, 1947
• Under the Industrial Disputes Act, 1947, a dispute may be referred
to arbitration
• under the following conditions:
• (a) An industrial dispute exists or is apprehended in an
establishment;
• (b) The employer and the workers agree, in writing, to refer the
dispute to arbitration;
• (c) The arbitration agreement is in the prescribed form and signed
by the parties to it
• in the prescribed manner

• (d) The agreement must be accompanied by the
consent, in writing, of the arbitrator
• or arbitrators;
• (e) The dispute must be referred to arbitration at
any time before it has been referred
• to a labour court or tribunal or a national
tribunal;
• (f) The reference must be to the person or
persons specified in the arbitration agreement
• to act as arbitrator/arbitrators;

• (g) The arbitration agreement must set forth
the issue/issues to be decided by the
• arbitration procedure and a copy of the
agreement is forwarded to the government
• and the conciliation officer.

• 2.8.1 Qualification of Arbitrators
• If arbitration is to be successful, the arbitrators must have the
qualifications to ensure
• that the parties entrust them with the responsibilities for making
decisions on the questions
• at issue. They should have the following qualifications;
• (i) an understanding of the complexities of the labour-management
relationship;
• (ii) a knowledge of collective bargaining and the operation of
arbitration procedures,
• as well as skill and experience in the interpretation of collective
agreements; and
• familiarity with personnel policies, industrial discipline and human
relations

• (iii) high integrity, that is, they should be non-
partisan persons with a deep sense of
• impartiality, which requires that they should be
free from any commitment to, or
• prejudice in favour of, one side or the other;
• (iv) they must be committed to the maintenance
of harmonious labour management
• relations and have a strong belief in the
importance of successful arbitration;
• (v) They must be acceptable to the parties.

• 2.9 ADJUDICATION
• Adjudication involves intervention in the
dispute by a third party appointed by the
• government for the purpose of deciding the
nature of final settlement.

• 2.9.1 Types of Adjudication
• When the government gets a report of the
failure of conciliation proceedings, it has to
• decide whether it would be appropriate to
refer the dispute to arbitration. The reference
of
• dispute to adjudicating is at the discretion of
the government

• Three-Tier System of Adjudication
• The Industrial Disputes Act, 1947 provides for a
three-tier system of adjudication
• (1) Labour Courts;
• (2) Industrial Tribunals; and
• (3) National Tribunals.
• These are the adjudication bodies which decide
the disputes refereed to them by the
• appropriate government and pass their awards.

• LABOUR COURTS
• One or more labour courts may be constituted
by the appropriate government for
• adjudicating on industrial disputes relating to
any matter specified in the second schedule
• to the Act, and for performing such other
functions as may be assigned to them.

• Constitution
• A labour court shall consist of one person only,
who:
• (a) Is or has been a judge of a High Court; or
• (b) Has been, for a period of not less than 3
years, a District Judge; or
• (c) Has held any judicial office in India for not
less than 7 years

• Jurisdiction
• The jurisdiction of labour courts extends to the
adjudication of the following disputes
• relating to matters specified in the Second
Schedule:
• (1) The propriety or legality of an order passed by
an employer under the Standing
• Orders.
• (2) The application and interpretation of Standing
Orders.

• 2.10 INDUSTRIAL TRIBUNALS
• The appropriate government may appoint one or
more industry tribunals for the
• adjudication of industrial disputes relating to any
matter, whether specified in the Second
• Scheduler or the Third Schedule. The matters
which are in the form of new demands and
• give rise to industrial disputes which affect the
working of a company or industry are
• usually refereed to an industrial tribunal

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