1. Video Case
On 25th may 2010, Air India's operations were severely affected, when around 20,000
employees went on strike across the country; just after Mangalore crash on22nd May
2010. Due to this AI was forced to cancel 150 flights on 16 routes including, 6
international flights. Strike was against the delay in payment of salaries as AI had
decided on last week of May to delay the salary by a week. The ACEU had served a
strike notice on the management and the Chief Labour Commissioner on May 15
against Air India's decision. AI management had requested strikers to return on “
hour of crisis” following the Saturday air crash on 22nd May 2010. Management
request to agitators did not work out and the AI management derecognized two trade
unions, terminated 58 employees services and suspended 24 his employs as action
against strike. On a hidden agenda1 this strike was a signal of conflicts on many
issues such as involving other company for ground duty work and Merger of AI.
This video case leaves few questions. How trade union concept is relevant in new economy? Is immerging
practice of human resource, sliding the trade union role on margin? Does trade unions have lost their
influence/relevance?

2. What should be the approach when we are
talking about the role of HR and trade union
Presented By:
Sandeep Gunjan

3. 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.

4. Trade union Act in India
Indian Trade Unions Act, 1926 defines right, responsibility, liabilities
and registration of trade union. It also ensures that their funds are utilised
properly.
The trade union act aims to:
• Secure fair wages for workers and improve their opportunities for promotion and training.
• Safeguard security of tenure and improve their conditions of service.
• Improve working and living conditions of workers
• Provide them educational, cultural and recreational facilities.
• Facilitate technological advancement by broadening the understanding of the workers.
• Help them in improving levels of production, productivity, discipline and high standard
of living.
• Promote individual and collective welfare and thus correlate the worker interests with
that of their industry.
•http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=192616

5. Industrial disputes
Act, defines industrial dispute as a difference between employers and
employers, or between employers and workmen, or between workmen and
workmen, which is connected with the employment or non-employment,
or the terms of employment or with the conditions of labour, of any
person". The basic objectives of the Act are:-
• To provide a suitable machinery for the just, equitable and peaceful
settlement of industrial disputes.
• To promote measures for securing and preserving amity and good
relations between employers and employees.
• To prevent illegal strikes and lockouts.
• To provide relief to workers against layoffs, retrenchment, wrongful
dismissal and victimisation.
• To promote collective bargaining.
• To ameliorate the conditions of workers.
• To avoid unfair labour practices.

6. Industrial unrest
Industrial peace implies the existence of harmonious relation between the
management & workers. When the relationship between them are not
cordial, industrial atmosphere is not peaceful, such a situation is called
industrial unrest.
Industrial Unrest
Unorganized- When it is unorganized, the moral Of the workers are generally
low & the managements are not sincere in solving the problems of the workers.
Organized - But when industrial unrest takes an organized form, it gets
expression in the form of strikes, demonstrations & lock-outs.

7. Strikes
Strike is a very powerful weapon to get its demands accepted by
a trade union. According to industrial disputes act, 1947, Strike
means , “cessation of work by a group of workers for the
purpose of bringing pressures on their employers to accept their
demand”.

8. Are strike justified?
All strikes are not justified, and nor all strikes are unjustified.
• If the strike was held by the workers in support of their
reasonable, fair & bonafide demands in peaceful manner,
then the strike will be justified.
• If it was held by using of violence or acts of sabotage or for
any ulterior purpose, then the strike will be unjustified.

9. Example
JUSTIFIED: UNJUSTIFIED:
1: WHEN EXISTING FACILITIES 1: STRIKES LAUNCHED FOR
WITHDRAWN, BENEFITS POLITICAL REASONS.
WITHDRAWN. 2: DEMANDS ARE EXCESSIVE
2: UNFAIR LABOUR PRACTICE AND UNREASONABLE
BY MANAGEMENT.
3: NO RESPONSE FROM
MANAGEMENT IN SPITE OF
REFERRING A DEMAND &
ISSUING A REMINDER.

10. Right to strike !!!
For long strike has been recognized as a legitimate weapon for workmen
seeking enforcement of rights. but it is not a fundamental right,
because the Indian constitution doesn’t consider the right to strike as a
fundamental right, as it can not be controlled by the industrial disputes act ,
if declared so.
The right to strike however is not unqualified. it is a relative
right which can be exercised with due regard to the right of others. a strike
therefore should used as a weapon only as a last step, when all other
policies have proved futile & it should be performed IN A peaceful manner
for good & justifiable reasons.

11. Impact of strike
The consequence of industrial disputes are far reaching , as they
disturb the economic ,social & political life of a country. Few points
are -
•Huge wastage of man-days.
•Dislocation in the production work.
•A strike in the public utility services like water supply, power, gas supply,
posts, telegraph, telephone, railways/roadways, hospitals & dispensaries
etc. dis-organises public life & throw the economy out of gear.
•The worker losses wages, which results in family disturbances, mental
agonies, tensions etc. if a strike becomes unsuccessful, then it is a
burden of financial loss on workers, which demoralizes them,
disappointed them severely.

12. CONTINUED..
• Again the employers suffer a heavy loss, not only through stoppage of
production, reduction in sales & loss of market, but also in the huge
expenditure incurred in crushing strikes.
• Stoppages of workplace results in short supply of consumer goods,
which causes sky riding prices & lead to non-availability of products in
the open market.
• Industrial disharmonies like strikes affects national economy. prof.
Pigou pointed out that, when labour & equipment are rendered idle by a
strike or lock-out, national dividend suffers, by lessening the output,
which ultimately reduces national income.

13. Strikes and lockouts 05-09

14. Reason of Declining status of TU
Industry Factor Trade union factor
• In recent year’s public sector and private
sector companies have equally adopted On the other hand poor finance,
good HR practices. Hence, HR are now
weak orgnisational structure, the
playing plays a significant role in employee
satisfaction. lack of initiatives to improve
• Increased domestic and Global competition, member union relations, failure to
has also forced unions at a disadvantage
position as there is a major thrust on labour recognize the importance of two
cost. way communication, involvement
Other reason in insensitive politics of leaders,
• younger workforce, workers attitude towards union,
• irrelevance of lifetime employability, educated workforce, women’s
• productivity based bonus and higher
entry in the workforce, has shifted
compensation ,
• change of corporate aspiration , collectivism to individualism.
• technology and knowledge based business,

15. Role of HR- Conflict management
Management and HR usually view unions as the adversary, but that
only winds up making management look like the enemy.
Companies are much better off working with the unions rather than
against them. To head off any serious problems before they surface
HR managers should do following-
• Start negotiations early, as much as possible. Devote a considerable
amount of strategic energy to negotiations.
• Give importance of communication with employees throughout the
negotiation process.
• Determine if any of the jobs included in the collective bargaining unit
are overly stressful or might foster employee resentment or
unhappiness.

16. Measures for Improving Industrial
Relations
• Workers’ Participation in Management
• Mutual Accommodation : The approach must be of
mutual “give and take rather than “take or leave.” The management
should be willing to co-operate
• Sincere Implementation of Agreements
• Sound Personnel Policies.
• Government’s Role
• Progressive outlook

17. Thank you.