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Industrial relations and trade unions


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Human Resource Management related topic which helps in understanding what are industrial relations and trade unions.

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Industrial relations and trade unions

  1. 1. Industrial Relations And Trade Unions
  2. 2. • Concerned with the systems, rules and procedures used by unions & employers to determine the reward for effort & other conditions of employment, to protect the interests of the employed and their employers and to regulate the ways in which employers treat their employees ” • The Industrial Relations can be referred to as Labour-Management, Employee-Employer relations. Industrial Relations
  3. 3. • Uninterrupted production • Reduction in Industrial Disputes • High morale • Benefit to workers and management as well • Improves productivity (or) Reduces Wastage • Foster Industrial Peace • Promote Industrial Democracy Importance of Industrial Relations
  4. 4. • Union co-operate with the mgt. & the mgt.’s right to manage is accepted • They seek direct negotiations with employees. Assumption: Common interest & promotion of harmony No strikes are there. Unitary Approach Pluralistic Approach It perceives: • Trade union as legitimate representatives of employee interests. • Stability in IR as the product of concessions and compromises between mgt. & unions. • Conflict between Mgt. and workers is understood as inevitable. • Conflict is also viewed as very useful for innovation and growth.
  5. 5. • Regard conflict as Pluralists… • Marxists see conflict as a product of the capitalist society. • Conflict arises due to the division in the society between those who own resources and those who have only labor to offer. • For Marxist all strikes are political. Marxist Approach
  6. 6. Parties Involved in Industrial Relations Industrial Relations Employees Employers Government Courts & Tribunals Employer Associations Trade Union
  7. 7. • To redress the bargaining advantage on one-on-one basis. • To secure better terms and conditions for their members. • To obtain improved status for the worker in his/her work. • To increase implementation of democratic way of decision making at various levels. Employees
  8. 8. • Creating and sustaining employee motivation • Ensuring commitment from employees • Negotiating terms and conditions of employment with TU leaders • Sharing decision making with employees Employers
  9. 9. • Develop healthy and stable industrial relations. • Promote collective bargaining at different levels. • Bring a unified employers’ viewpoint on the issues of industrial relations to the government in a concerted manner. • Represent in the meetings of ILC and SLC boards in conformity with tripartite approach to labour matter. • Employers’ Associations are formed to promote and protect interests of employers in Trade and industry. Employer’s Association
  10. 10. • Primary Objective • Promote and protect the interest of employers engaged in industry, trade and commerce in India. • Study, analyse and disseminate information relating to labour policy, labour management relations, collective bargaining, etc. • Offer advice concerning various aspects of labour policy. • Liaise with Union Government and initiate steps that are representative and legislative in nature. Employer’s Association
  11. 11. • Secondary Objective • Train and develop staff and members. • Obtain data on wages and conditions of work in industries attached to them. Come out with surveys, research-based reports on issues of importance to both labour and management. • Take up projects for social and family welfare. Employer’s Association
  12. 12. • Secondary Objective • Deal with safety and health at work place and working environment. • Initiate steps to improve public image and improve public relations. • Educate the public regarding the character, scope, importance and needs of trade, industry and commerce represented by members. Employer’s Association
  13. 13. • The State, as of today, regulates the relationship between the management and the Labour and seeks to protect the interests of both the groups. The government has set up wage boards, Labour courts, tribunals and enacted laws to lay down norms and to enforce their compliance. Role Of Government
  14. 14. • Internal Factors • The attitudes of managements to employees and unions. • The attitudes of employees to management. • The inevitability of the differences of opinion between managements and unions • The extents to which the management can or wants to exercise absolute authority to enforce decisions affecting the interest of employees. Factors Affecting Employee Relations Strategy
  15. 15. • Internal Factors • The present and likely future strength of unions. • The extent to which there is one dominating union or the existence of multiple unions leading to inter union rivalry. • The extent to which effective and agreed procedures for discussing and resolving grievances or handling disputes exist within the company Factors Affecting Employee Relations Strategy
  16. 16. • Internal Factors • The effectiveness of managers and supervisor in dealing with the problems and disputes related to industrial relations • The prosperity of the company, the degree to which it is expanding, stagnating or running down and the extent to which technological changes are likely to effect employment conditions and opportunities. Factors Affecting Employee Relations Strategy
  17. 17. • External Factors • The militancy of the unions-nationally or locally. • The effectiveness of the union and its officials and the extent to which the officials can and do control the activities of supervisors within company. • The authority and effectiveness of the employers association. Factors Affecting Employee Relations Strategy
  18. 18. • External Factors • The effectiveness of any national or local procedure agreements that may exists. • The employment and pay situation nationally and locally. • The legal framework within which Industrial Relations exits. Factors Affecting Employee Relations Strategy
  19. 19. • Formed to protect and promote the interests of their members • Primary function is to protect the interests of workers against discrimination and unfair labor practices Trade Union
  20. 20. Objectives: • Representation (Workers’ Interests) • Negotiation (Collective Bargaining) • Voice in decisions (Lay off, Retrenchment) affecting workers • Member Service (Education, Training, Welfare, Discounts, Loans) Trade Union
  21. 21. Functions • Militant functions • Fraternal functions Trade Union
  22. 22. It’s Importance • For industrial peace • Decisions taken through the process of collective bargaining and negotiations between employer and unions are more influential • Effective communication between the workers and the management • Economic development • Recruitment & selection • Discipline among workforce • Settlement of ID in rational manner
  23. 23. It’s Purpose • Employment Protection and Job Creation. • Economic Protection. • Social Status - Identity. • Political Role - Democratic Institution • Societal Obligation - Transformation. • Competitiveness / Sustainable Development.
  24. 24. Advantages and Benefits • Sense of Belongingness • Platform for self expression • Betterment of relationships • Sense of Participation • Sense of Security • Greater Bargaining Power • Minimize Discrimination
  25. 25. • Trade unions are organizations of workers formed to protect the rights and interests of workers through collective action. • In India, the first quarter of the 20th century gave the birth of the trade union movement. A series of strikes were declared in India in the twenties. The success of most of these strikes led to the organization of many unions. Growth Of Trade Union In India
  26. 26. • In 1920, the All India Trade Union Congress (AITUC) was set up. In 1926, the Trade Unions Act was passed which gave a legal status to the registered trade unions. • Subsequently many trade unions were formed such as: • Indian National Trade Union Congress (INTUC), • Centre of Indian Trade Unions (CITU), • Hind Mazdoor Sabha (HMS), • Bharatiya Mazdoor Sangha (BMS), • United Trade Union Congress (UTUC), and • National Federation of Independent Trade Unions (NFITU). Growth Of Trade Union In India
  27. 27. • It was not until the close of First World War, that the modern trade Union movement really took permanent roots in Indian Soil. • The establishment of Bombay Mill Hands’ Association is considered as the first phase of the trade union movement in India. In 1905, the Printers Association of Calcutta and Dock Union Board in Bombay were formed. Growth Of Trade Union In India
  28. 28. • There was labour unrest in India at the end of the First World War. In several industries, the workers went on strikes to secure wage increases. The Russian Revolution and the Industrial Labour Organization have inspired the Indian labourers to launch trade unions like the Spinners Union and Weaver’s Union which had been established in Madras and Ahmedabad respectively. Growth Of Trade Union In India
  29. 29. • But the important step in the history of Indian trade unionism was the foundation of All India Trade Union Congress in 1920. There had been a steady progress of trade union movement in India. However, the decision of the Madras High Court that the formation of trade union is illegal stood in the way of its development. Growth Of Trade Union In India
  30. 30. Problems for Trade Union • Finance. • Low Membership. • Lack of interest. • Trade union leadership • Multiple Unions.
  31. 31. Problems for Trade Union • Union Rivalry. • Heterogeneous nature of labour. • Absence of paid office bearers. • Illiteracy . • Uneven Growth.
  32. 32. Thank You For Your Time