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TRADE UNIONS-
INDUSTRIAL RELATIONS
INDUSTRIAL RELATIONS IN INDIA
 Early British Rule:
 India was colonial market for British goods
 There was initiative from Europeans in industry.
 Cotton mill(Bombay -1853); Jute mill (Calcutta – 1855)
 Workers were exploited by their contractors; they were
in deplorable condition, Workers were unsatisfied;
worker – management relations were not cordial.
 Hence, the Factories Act of 1881 was passed which gave
an impetus (drive) to the worker’s approach for
redressal.
 Tata Iron & Steel Industry (Jamshedpur) – 1911
 World war I & II
 WWI was a period of boom for employers – rise in
prices  rise in profit  wages were not rise
 This resulted in economic distress, which brought
workers together & an organized working class
moment began , i.e no. of strikes increased (at
Ahmadabad, Madras in 1921)
 Various laws were enacted;
 Workmen’s Compensation Act (1923)
 Trade Unions Act (1926)
 Trade Disputes Act (1917)
 WWII, Bonus & DA were granted but not wage hike.
 Govt prohibited strikes.
 For settlement of disputes-
 Industrial Employment Act, 1946
 Industrial Disputes Act, 1947
 Post Independence Era:
 In 1947, industrial scene was in chaos & confusion;
industrial unrest and shattered worker-management
relations
 Govt has emerged as an arbitrator between the
management and the workers.
 Minimum wages Act , 1948
 Factories Act ,1948
 Employee State Insurance Act ,1948
INDUSTRIAL RELATIONS
 Industrial Relations is an art, the art of living together for
purposes of production –J.H.Richardson
 Cordial & peaceful Industrial relations between the employees
and the employer are highly essential for increasing
productivity and the economic growth of the country.
 Objectives:
 Safeguard the interest of labour as well as management (by
mutual understanding & goodwill)
 avoid industrial conflicts
 Raise productivity (reducing higher labour turnover &
frequent absenteeism)
 Establish & maintain Industrial Democracy
 Bring down strikes, lockouts & gheraos (provide better &
reasonable wages & improved living conditions, and fringe
benefits for workers.
 Govt control over plants, which are in loss / production in
public interest
 Build healthy social order
CONFLICT RESOLUTION
 Direct observation (by good supervisor)
 Open door policy (ineffective)
 Personnel counselors
 Suggestion boxes
 Exit interview
 Ombudsman approach (he is mediator or investigator)
 Internal tribunal (management form review board or panel)
 Problem solving for unionised employees
 Arbitration (arbitrator act as judge)
 Mediation (mediator is a third party & has no power of decision)
 Union management cooperation (prior consultation,
sincere concern, joint study committees)
Summary:
The main theme of Industrial relations is to maintain
a human relationship between the organization and
its employees.
Objectives:
 Developing mutual understanding and goodwill
 Avoiding industrial conflicts
 Increasing productivity
 Promoting industrial democracy
 Supporting government regulations
• ……………………………………….
objective suggestion
Developing mutual
understanding and goodwill
The workers in a mill have to work in
shifts. The management will provide
increased security for the night shift
Avoiding industrial conflicts The company plans to shift its
production to the new mills it has
acquired. It offers its temporary
employees permanent positions in the
new centre
Increasing productivity The management deals with increasing
demand by putting in a new shift, hiring
new workers while making temporary
workers permanent
Supporting government
regulations
A wage board is set up to negotiate
between the management and labour,
on their demands for an increase in
wages
Promoting industrial The workers are asked for their inputs
TRADE UNIONS
 Trade Union may be defined as any combination,
whether temporary or permanent, formed primarily
for the purpose of regulating the relations between
workmen and employees or between workmen and
workmen or 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 unions.
 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
Objectives:
 Representation (Workers’ Interests  avoid
exploitation)
 Voice in decisions (Lay off, Retrenchment) affecting
workers (security of employment)
 Fairer wages (cost of living & standard of living)
 Working conditions (working hours, leave, social
security, Education, Welfare)
 Member Service (Education, Training, Welfare,
Discounts, Loans, Bonus)
 Negotiation (Collective Bargaining)
IMPORTANCE OF TRADE UNIONS
 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
 Purpose of Trade Unions
 Employment Protection and Job Creation.
 Economic Protection.
 Social Status - Identity.
 Political Role - Democratic Institution
 Societal Obligation - Transformation.
 Competitiveness / Sustainable Development.
 Why do people join Union?
 Greater Bargaining Power
 Minimize Discrimination
 Sense of Security
 Sense of Participation
 Sense of Belongingness
 Platform for self expression
 Betterment of relationships
SPECIFIC FUNCTIONS OF UNIONS
 Wage & salary bargaining
 Fight for continuous improvement in employee benefits
 Improving working conditions at work place
 Improving welfare, healthcare & recreation facilities,
and leisure at workplace
 Increasing rest periods, holidays, paid leave and time-
offs
 Decreasing working hours, work load esp. manual, and
hazardous working conditions
 Improving career and salary rise prospects & job
security
 Protecting employees against arbitrary / unjust actions
of Management
INDUSTRIAL DISPUTES
 According to Industrial Disputes Act, 1947, an Industrial
Dispute is defined as ‘any dispute 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.
 Objectives:
 To provide machinery for the just, equitable &
peaceful settlement of industrial disputes
 To prevent illegal strikes and lockouts
 To promote collective bargaining
 To avoid unfair union practices
 To provide relief to workers against layoffs,
retrenchment, wrongful dismissal &
victimisation
 To improve the conditions of workers
 To promote measure for securing & preserving
amity and good relations between employers
and employees
CAUSES
Economic causes:
Issues relating to compensation like wages,
bonus, allowances and conditions of work,
working hours, leave and holidays without pay,
unjust layoffs and retrenchments
Non-economic causes:
include factors like victimisation of workers, ill
treatment by staff members, sympathetic strikes,
political factors, indiscipline etc.
TYPES OF INDUSTRIAL DISPUTES
Industrial
disputes
strike
Sit-down strike
Slow down
strike
Sick-out strike
Wild cat strike
Sympathy strike
Lock-
outs
Picketing Gherao
STRIKE
Acc to Industrial Disputes Act 1947, strike means ‘a
cessation of work by a body of persons employed in an
industry acting in combination: or a concerted refusal
of any number of persons who are or have been
employed to continue to work or to accept
employment; or refusal under a common
understanding of any number of such persons to
continue to work or to accept employment’.
LOCKOUTS
 Acc to Industrial Disputes Act 1947, lock-out means the
‘temporary closing of a place of employment or the
suspension of work or the refusal by an employer to
continue to employ any number of persons employed by
him’.
 Thus, a lockout is employers’ weapon while a strike is
raised on part of employees.
 For example,
 if a group of the workers strike so that the work of the
rest of the workers becomes impossible or less
productive, the employer may declare a lockout until
the workers end the strike
 To avoid slowdowns or intermittent work-stoppages.
PICKETING
When workers are dissuaded from work by stationing
certain men at the factory gates, such a step is known as
picketing.
 If picketing does not involve any violence, it is perfectly
legal.
 Pickets are workers who are on strike that stand at the
entrance to their workplace.
 It is basically a method of drawing public attention (This is
achieved by harming the business through loss of customers and negative publicity, or by
discouraging or preventing workers and/or customers from entering the site and thereby
preventing the business from operating normally.)
The purpose of picketing is:
to stop or persuade workers not to go to work
to tell the public about the strike
to persuade workers to take their union's side
GHERAO
Gherao in Hindi means to surround.
It denotes a collective action initiated by a group of
workers under which members of the management are
prohibited from leaving the industrial establishment
premises by workers who block the exit gates by
forming human barricades.
The workers may gherao the members of the
management by blocking their exits and forcing them
to stay inside their cabins.
The main object of gherao is to inflict physical and
mental torture to the person being gheraoed and hence
this weapon disturbs the industrial peace to a great
extent.
TYPES OF SETTLEMENTS’ BETWEEN
MANAGEMENT & UNION
PROBLEMS FOR TRADE UNION GROWTH??
 Off-Centering Labour
 Segmentation of Workforce
 Core / Periphery
 Employment Instability
 Investment Attraction
 Individualisation of Labour Relations
 Labour Cost Cutting
 Leadership Credibility/ Inside vs. Outside leadership
 Failure of Institutions
 Emergence of Non-union firms/ E-union/ Cyber-
union
EX:Poor Industrial Relations and Its Reasons
 David Croft, Labour Relations Officer at Empress
Mills, discovers that his employees have many
grievances. In fact, his workers are so dissatisfied
that many of them are considering resigning. David
has a situation of poor industrial relations on his
hands. What are the causes of this situation?
 1. Discontent was existing but mng didn’t know
them, workers didn’t air their complaints
 2. New technology, training was not given but
order for work with deadline was brought.
Workers were at disadvantage n work was lagging
 3. Rewards were not given, even after profits
incentive was not given.

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Trade union

  • 2. INDUSTRIAL RELATIONS IN INDIA  Early British Rule:  India was colonial market for British goods  There was initiative from Europeans in industry.  Cotton mill(Bombay -1853); Jute mill (Calcutta – 1855)  Workers were exploited by their contractors; they were in deplorable condition, Workers were unsatisfied; worker – management relations were not cordial.  Hence, the Factories Act of 1881 was passed which gave an impetus (drive) to the worker’s approach for redressal.  Tata Iron & Steel Industry (Jamshedpur) – 1911
  • 3.  World war I & II  WWI was a period of boom for employers – rise in prices  rise in profit  wages were not rise  This resulted in economic distress, which brought workers together & an organized working class moment began , i.e no. of strikes increased (at Ahmadabad, Madras in 1921)  Various laws were enacted;  Workmen’s Compensation Act (1923)  Trade Unions Act (1926)  Trade Disputes Act (1917)  WWII, Bonus & DA were granted but not wage hike.  Govt prohibited strikes.  For settlement of disputes-  Industrial Employment Act, 1946  Industrial Disputes Act, 1947
  • 4.  Post Independence Era:  In 1947, industrial scene was in chaos & confusion; industrial unrest and shattered worker-management relations  Govt has emerged as an arbitrator between the management and the workers.  Minimum wages Act , 1948  Factories Act ,1948  Employee State Insurance Act ,1948
  • 5. INDUSTRIAL RELATIONS  Industrial Relations is an art, the art of living together for purposes of production –J.H.Richardson  Cordial & peaceful Industrial relations between the employees and the employer are highly essential for increasing productivity and the economic growth of the country.  Objectives:  Safeguard the interest of labour as well as management (by mutual understanding & goodwill)  avoid industrial conflicts  Raise productivity (reducing higher labour turnover & frequent absenteeism)  Establish & maintain Industrial Democracy  Bring down strikes, lockouts & gheraos (provide better & reasonable wages & improved living conditions, and fringe benefits for workers.  Govt control over plants, which are in loss / production in public interest  Build healthy social order
  • 6. CONFLICT RESOLUTION  Direct observation (by good supervisor)  Open door policy (ineffective)  Personnel counselors  Suggestion boxes  Exit interview  Ombudsman approach (he is mediator or investigator)  Internal tribunal (management form review board or panel)  Problem solving for unionised employees  Arbitration (arbitrator act as judge)  Mediation (mediator is a third party & has no power of decision)  Union management cooperation (prior consultation, sincere concern, joint study committees)
  • 7. Summary: The main theme of Industrial relations is to maintain a human relationship between the organization and its employees. Objectives:  Developing mutual understanding and goodwill  Avoiding industrial conflicts  Increasing productivity  Promoting industrial democracy  Supporting government regulations • ……………………………………….
  • 8. objective suggestion Developing mutual understanding and goodwill The workers in a mill have to work in shifts. The management will provide increased security for the night shift Avoiding industrial conflicts The company plans to shift its production to the new mills it has acquired. It offers its temporary employees permanent positions in the new centre Increasing productivity The management deals with increasing demand by putting in a new shift, hiring new workers while making temporary workers permanent Supporting government regulations A wage board is set up to negotiate between the management and labour, on their demands for an increase in wages Promoting industrial The workers are asked for their inputs
  • 9. TRADE UNIONS  Trade Union may be defined as any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employees or between workmen and workmen or 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 unions.  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
  • 10. Objectives:  Representation (Workers’ Interests  avoid exploitation)  Voice in decisions (Lay off, Retrenchment) affecting workers (security of employment)  Fairer wages (cost of living & standard of living)  Working conditions (working hours, leave, social security, Education, Welfare)  Member Service (Education, Training, Welfare, Discounts, Loans, Bonus)  Negotiation (Collective Bargaining)
  • 11. IMPORTANCE OF TRADE UNIONS  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
  • 12.  Purpose of Trade Unions  Employment Protection and Job Creation.  Economic Protection.  Social Status - Identity.  Political Role - Democratic Institution  Societal Obligation - Transformation.  Competitiveness / Sustainable Development.  Why do people join Union?  Greater Bargaining Power  Minimize Discrimination  Sense of Security  Sense of Participation  Sense of Belongingness  Platform for self expression  Betterment of relationships
  • 13. SPECIFIC FUNCTIONS OF UNIONS  Wage & salary bargaining  Fight for continuous improvement in employee benefits  Improving working conditions at work place  Improving welfare, healthcare & recreation facilities, and leisure at workplace  Increasing rest periods, holidays, paid leave and time- offs  Decreasing working hours, work load esp. manual, and hazardous working conditions  Improving career and salary rise prospects & job security  Protecting employees against arbitrary / unjust actions of Management
  • 14. INDUSTRIAL DISPUTES  According to Industrial Disputes Act, 1947, an Industrial Dispute is defined as ‘any dispute 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.
  • 15.  Objectives:  To provide machinery for the just, equitable & peaceful settlement of industrial disputes  To prevent illegal strikes and lockouts  To promote collective bargaining  To avoid unfair union practices  To provide relief to workers against layoffs, retrenchment, wrongful dismissal & victimisation  To improve the conditions of workers  To promote measure for securing & preserving amity and good relations between employers and employees
  • 16. CAUSES Economic causes: Issues relating to compensation like wages, bonus, allowances and conditions of work, working hours, leave and holidays without pay, unjust layoffs and retrenchments Non-economic causes: include factors like victimisation of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc.
  • 17. TYPES OF INDUSTRIAL DISPUTES Industrial disputes strike Sit-down strike Slow down strike Sick-out strike Wild cat strike Sympathy strike Lock- outs Picketing Gherao
  • 18. STRIKE Acc to Industrial Disputes Act 1947, strike means ‘a cessation of work by a body of persons employed in an industry acting in combination: or a concerted refusal of any number of persons who are or have been employed to continue to work or to accept employment; or refusal under a common understanding of any number of such persons to continue to work or to accept employment’.
  • 19. LOCKOUTS  Acc to Industrial Disputes Act 1947, lock-out means the ‘temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him’.  Thus, a lockout is employers’ weapon while a strike is raised on part of employees.  For example,  if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive, the employer may declare a lockout until the workers end the strike  To avoid slowdowns or intermittent work-stoppages.
  • 20. PICKETING When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing.  If picketing does not involve any violence, it is perfectly legal.  Pickets are workers who are on strike that stand at the entrance to their workplace.  It is basically a method of drawing public attention (This is achieved by harming the business through loss of customers and negative publicity, or by discouraging or preventing workers and/or customers from entering the site and thereby preventing the business from operating normally.) The purpose of picketing is: to stop or persuade workers not to go to work to tell the public about the strike to persuade workers to take their union's side
  • 21. GHERAO Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins. The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent.
  • 22. TYPES OF SETTLEMENTS’ BETWEEN MANAGEMENT & UNION
  • 23. PROBLEMS FOR TRADE UNION GROWTH??  Off-Centering Labour  Segmentation of Workforce  Core / Periphery  Employment Instability  Investment Attraction  Individualisation of Labour Relations  Labour Cost Cutting  Leadership Credibility/ Inside vs. Outside leadership  Failure of Institutions  Emergence of Non-union firms/ E-union/ Cyber- union
  • 24. EX:Poor Industrial Relations and Its Reasons  David Croft, Labour Relations Officer at Empress Mills, discovers that his employees have many grievances. In fact, his workers are so dissatisfied that many of them are considering resigning. David has a situation of poor industrial relations on his hands. What are the causes of this situation?  1. Discontent was existing but mng didn’t know them, workers didn’t air their complaints  2. New technology, training was not given but order for work with deadline was brought. Workers were at disadvantage n work was lagging  3. Rewards were not given, even after profits incentive was not given.