Industrial Relations


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Industrial Relations

  1. 1. A brief overview
  2. 2. <ul><li>Industrial society is a complex and dynamic society (consist of group, societies and institution) they are interrelated, however have different attitudes and perceptions. They are also being influenced by external environment. </li></ul><ul><li>We cannot ignore the working aspect of human being, as working hour dominate most of our time. </li></ul><ul><li>The three main actors being in IR being: </li></ul><ul><li>The Employers </li></ul><ul><li>The employees </li></ul><ul><li>The Government </li></ul>
  3. 3. <ul><li>Industrial relations encompasses a set of phenomena, both inside and outside the workplace, concern with determining and regulating employment relationship. </li></ul><ul><li>The making and administering of the institutions and rules of work regulation </li></ul><ul><li>Socio-industrial conflict (in all its forms) and its resolution </li></ul><ul><li>Explicit and implicit bargaining between employees and employers </li></ul>
  4. 4. <ul><li>A process of voluntary negotiation between employers and workers' organizations (generally trade unions) aimed at reaching agreements which regulate working conditions. </li></ul><ul><li>Collective agreements usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs. </li></ul><ul><li>  </li></ul>
  5. 5. <ul><li>Refers to the emotional and mental involvement of an employee to contribute for the goals and share responsibilities of an organization. Objective: a)industrial harmony b)sense of commitment c)sense of belongingness d)good communication skills e)handles the resistance </li></ul>
  6. 6. <ul><li>The trade union movement emerged in India, basically as a reaction to the state interventionist or state pluralism model. The economic reforms’ package (emphasis on privatization, liberalization and austerity measures) </li></ul><ul><li>Trade Union in India is the primary instrument for promoting the union of trade union movement and championing the cause of working class in India. </li></ul><ul><li>All India Trade Union Congress (AITUC) </li></ul><ul><li>All India State Government Employees Federation- AISGF </li></ul><ul><li>Center of Indian Trade Unions - CITU </li></ul><ul><li>Hind Mazdoor Sabha - HMS </li></ul><ul><li>Trade Union International - TUI </li></ul>
  7. 7. <ul><li>Discharge-permanent separation of an employee from the pay roll for violation of company rules or for inadequate performance. </li></ul><ul><li>Dismissal-termination by way of punishment </li></ul><ul><li>Suspension- serious punishment, generally awarded after a thorough enquiry. </li></ul><ul><li>Resignation- on grounds of health, illness et al. </li></ul><ul><li>Retirement- Age of superannuation </li></ul><ul><li>Lay-off </li></ul><ul><li>Retrenchment. </li></ul>
  8. 8. <ul><li>Misconduct- improper behavior backed by a wrongful intention. </li></ul><ul><li>List of misconduct: </li></ul><ul><li>Absence from duty </li></ul><ul><li>Doing personal work during office hours </li></ul><ul><li>Assault on a superior officer </li></ul><ul><li>Acts of dishonesty / fraud </li></ul><ul><li>Willful disobedience of lawful order of transfer </li></ul><ul><li>Drinking at the place of work </li></ul><ul><li>Playing cards at the place of work </li></ul>
  9. 9. satisfactory Not satisfactory Enquiry Report from enquiry officer Reply Show cause proposing punishment Reply Satisfactory Not satisfactory Condone / give warning Impose punishment Show cause notice/Charge sheet Suspension pending enquiry In case of Major misconduct
  10. 10. <ul><li>Whenever an employee is sought to be punished, it is usual for the employer to conduct a departmental/ D.E. for the purpose of finding out whether the proposed action of punishment is warranted. </li></ul><ul><li>The procedure for holding an enquiry may be laid down under the S.O /service Rules of the established or by means of an award or settlement. </li></ul><ul><li>If no such procedure specified- principal of natural justice. </li></ul><ul><li>Procedure: </li></ul><ul><li>Appointment of enquiry officer. </li></ul><ul><li>Notice of enquiry. </li></ul><ul><li>Initiation of proceedings by the enquiry officer. </li></ul><ul><li>Procedure of leading evidence by the employer and material evidence. </li></ul><ul><li>Examination of witness. </li></ul>
  11. 11. <ul><li>A bible governing all the major labour laws! </li></ul><ul><li>This Act was basically designed to protect children and to provide few measures for health and safety of the workers. </li></ul><ul><li>Registration & Renewal of Factories </li></ul><ul><li>  Employer to ensure health of workers pertaining to </li></ul><ul><li>Safety Measures </li></ul><ul><li>Welfare Measures </li></ul><ul><li>Working Hours, Spread Over & Overtime of Adults </li></ul><ul><li>Annual Leave with Wages </li></ul>
  12. 12. <ul><li>To secure industrial peace and harmony by providing machinery and procedure for the investigation and settlement of industrial disputes by negotiations instead of by trail of strength through strikes andlock-outs. </li></ul><ul><li>The legislation is calculated to ensure social justice to both employers and employees and thereby promote industrial progress. </li></ul><ul><li>Strikes & Lock outs(14 days) </li></ul><ul><li>Lay off’s(7 days) & Retrenchment(three months) </li></ul><ul><li>Closure(60 days) </li></ul>
  13. 13. <ul><li>Defines the terms and conditions of service between the employer and his employees . </li></ul><ul><li>Includes: </li></ul><ul><li>Medical examination and aid in case of accident </li></ul><ul><li>Identification of workmen and issue of Identity </li></ul><ul><li>cards </li></ul><ul><li>Working time for different categories of workmen </li></ul><ul><li>Record of age, qualification and experience </li></ul><ul><li>Entry, exit and liability for security checking </li></ul><ul><li>Shift working and weekly off Attendance and late coming Methods of applying for different kinds of leave </li></ul><ul><li>and extension of leave </li></ul><ul><li>Action for unauthorised absence, et al </li></ul>
  14. 14. <ul><li>No woman works during the six weeks immediately following the day of her delivery or her miscarriage </li></ul><ul><li>No woman does any arduous work during the period of ten weeks from the expected date of delivery </li></ul><ul><li>12 weeks leave of which not more than 6 weeks shall precede the date of her expected delivery. </li></ul><ul><li>The benefit to be paid @ average rate of wages for the three months preceding her maternity leave </li></ul><ul><li>In case of miscarriage, 6 weeks leave with pay at the same rate as applicable to maternity benefit. </li></ul>
  15. 15. <ul><li>An act to prevent “Sweated labour and exploitation of labour” </li></ul><ul><li>Requires the Central and State Govt. to fix minimum rates of wages in certain scheduled employment. </li></ul><ul><li>Minimum wages fixed REVISED from time to time. </li></ul><ul><li>Duties of the employer: </li></ul><ul><li>To maintain Register of Wages in showing rate of wages payable, actual amount paid, attendance & overtime, deductions for EPF, ESI and other, net amount paid, date of payment and signature of respective employee. </li></ul>
  16. 16. <ul><li>An Act to regulate the payment of wages to certain classes of persons </li></ul><ul><li>Responsibility of payment wages rests with the employer </li></ul><ul><li>Employer to fix Wage Period </li></ul><ul><li>No wage period shall exceed one month. </li></ul><ul><li>Deduction of wages- PF,ESI, Insurance, fines et al. </li></ul>
  17. 17. <ul><li>An Act to provide for the payment of Bonus to persons in certain establishments on the basis of profits, production or productivity. </li></ul><ul><li>Employee whose salary/ wages does not exceed Rs 10000 per month </li></ul><ul><li>Minimum :8.33% of salary/wages </li></ul><ul><li>Maximum 20% of salary/wages </li></ul>
  18. 18. <ul><li>Gratuity is in the nature of a retirement benefit payable to an employee for a long and meritorious service. </li></ul><ul><li>Gratuity is payable to an employee on termination of his employment after he has rendered continuous service for not less than five years </li></ul><ul><li>On his superannuation </li></ul><ul><li>On his resignation </li></ul><ul><li>On his death or disablement due to </li></ul><ul><li>Employment injury or disease </li></ul>
  19. 19. <ul><li>Act to regulate employment of contract labour, prevent exploitation of contract labour and for abolition of contract labour in certain areas </li></ul><ul><li>That all statutory obligations as provided in Minimum Wages Act, Payment of Wages Act, Provident Fund & Misc Provisions Act, ESI Act, </li></ul><ul><li>Payment of Bonus Act etc are fulfilled by the Contractor in respect of his employees engaged. </li></ul><ul><li>If not, the Principal employer to comply with it and recover any amount paid to contract employees or PF/ ESI or other authorities on behalf of the Contractor from the contractor later on. </li></ul>
  20. 20. <ul><li>Applies to those apprentices who are undergoing apprenticeship training in designated trades. </li></ul><ul><li>From time to time, the Central Govt. has specified the designated trades. </li></ul><ul><li>Placement of Training Officer with suitable qualification </li></ul><ul><li>Payment of stipend at a rate not less than the prescribed minimum rate </li></ul><ul><li>Not to pay on the basis of piece work </li></ul><ul><li>Not to require to take part in any output bonus or other incentive scheme. </li></ul><ul><li>Health, safety and welfare. </li></ul><ul><li>Provision under Workmen’s Compensation Act. </li></ul>
  21. 21. <ul><li>The Act provides for payment of compensation to the worker injured during the course of employment or contracted by any occupational disease peculiar to that employment. </li></ul><ul><li>For accidents resulting in death, an amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor. </li></ul><ul><li>For permanent total disablement, an amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor. </li></ul><ul><li>Permanent Partial Disablement - According to incapacity caused </li></ul><ul><li>Temporary Disablement - Rs. 2000 per month upto a period of 5 years </li></ul>
  22. 22. <ul><li>Provides for health care and cash benefits in cases of sickness, maternity and employment injury </li></ul><ul><li>Employees’ contribution -1.75% of wages </li></ul><ul><li>Employers’ contribution - 4.75 % of wages </li></ul><ul><li>Medical Benefits </li></ul><ul><li>Sickness Benefits </li></ul><ul><li>Maternity Benefits </li></ul><ul><li>Disablement Benefit </li></ul><ul><li>Dependant benefit </li></ul><ul><li>Funeral Expenses </li></ul><ul><li>Old age </li></ul><ul><li>Rehabilitation </li></ul>
  23. 23. <ul><li>An Act to provide for the institution of provident funds, pension funds and deposit linked insurance fund for the employees in the factories and other establishments. </li></ul><ul><li>Employees share : 12% of the Basic + DA </li></ul><ul><li>Employer’s contribution : 12% </li></ul><ul><li>8.33% to be deposited in Pension Fund </li></ul><ul><li>The balance, i.e, 3.67% to be deposited in Provident Fund. </li></ul>
  24. 24. <ul><li>An act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions. </li></ul><ul><li>The minimum number of workers to form a registered Trade Union is 10% or 100 whichever is less, subject to a minimum of 7 workers. </li></ul>
  25. 25. <ul><li>An Act to regulate certain conditions of service of sales promotion employees in certain establishments, in the first instance, engaged in pharmaceutical industry. </li></ul><ul><li>Provides for application of certain acts , such as Workmen's Compensation Act, 1923, Industrial Disputes Act, 1947, Minimum Wages Act, 1948, Maternity Benefit Act, 1961, Payment of Bonus Act, 1965 and Payment of Gratuity Act, 1972 to sales promotion employees. </li></ul>
  26. 26. <ul><li>To provide for the compulsory notification of vacancies to employment exchanges. </li></ul><ul><li>Before filling up any vacancy as prescribed. To notify the vacancies to such employment exchanges as may be prescribed. </li></ul><ul><li>Time limit for notification of vacancies & selection </li></ul><ul><li>Atleast 15 days before the applicants will be interviewed or tested. </li></ul><ul><li>Employer to furnish the result of selection within 15 days. </li></ul>
  27. 27. <ul><li>&quot;An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success.&quot; - Stephen Covey </li></ul>
  28. 28. <ul><li>A grievance is a sign of an employee's discontentment with his job or his relationship with his colleagues. </li></ul><ul><li>Grievances generally arise out of the day-to-day working relations in an organization. </li></ul><ul><li>An employee or a trade union protests against an act or policy of the management that they consider as violating employee's rights. </li></ul><ul><li>One of the effective methods is to have an “open door policy”. </li></ul><ul><li>Could also be settled through: Conciliation, Arbitration,Adjudication. </li></ul>
  29. 29. <ul><li>Involves taking measures to encourage employees to remain in the organization for the maximum period of time. </li></ul><ul><li>If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. </li></ul><ul><li>In today’s environment it becomes very important for organizations to retain their employees. </li></ul><ul><li>Employee empowerment entails identifying how much responsibility and authority an individual can effectively handle without becoming over-burdened or distressed. </li></ul><ul><li>Importance- Turnover costs, turn over leads to more turnover, regaining efficiency, loss of company knowledge, interruption in the customer service. </li></ul>
  30. 30. <ul><li>An organization’s productivity is measured not in terms of employee satisfaction but by employee engagement. </li></ul><ul><li>Employees are said to be engaged when they show a positive attitude toward the organization and express a commitment to remain with the organization. </li></ul><ul><li>How it could be implemented? </li></ul><ul><li>Provide variety </li></ul><ul><li>Conduct periodic meetings with employees to communicate good news, challenges and easy-to-understand company financial information. </li></ul><ul><li>Provide an open environment. </li></ul><ul><li>Get to know employees' interests, goals, stressors, etc. </li></ul><ul><li>Celebrate individual, team and organizational successes </li></ul>
  31. 31. <ul><li>Employee Counseling is a difficult but challenging function of the Human Resource Officer. </li></ul><ul><li>This is to guide employees on their job. Counseling when used correctly will: </li></ul><ul><li>1. Prevent disciplinary actions or even terminations; </li></ul><ul><li>2. Reduce turnover and its associated costs; </li></ul><ul><li>3. Show employees that you are committed to their job success; </li></ul><ul><li>4. Help you against full legal obligations to employees. </li></ul>
  32. 32. <ul><li>Considers people as an ‘asset’ to the organization rather than as ‘costs'. </li></ul><ul><li>It believes that people perform better when they are allowed to participate in managing their work and make decisions. </li></ul><ul><li>This approach motivates people by satisfying not only their economic needs but also their social and psychological ones. </li></ul><ul><li>To satisfy the new generation workforce, organizations need to concentrate on job designs and organization of work. </li></ul><ul><li>Striking a balance between the personal and professional life of the employees. </li></ul>
  33. 33. <ul><li>“ CSR is defined as the integration of business operations and values, whereby the interests of all stakeholders including investors, customers, employees, the community and the environment are reflected in the companies policies and actions” </li></ul><ul><li>Ex:- Infosys Technologies: initiatives to work in the areas of Research and Education, Community Service, Rural Reach Programme, Employment, Welfare activities undertaken by the Infosys Foundation, Healthcare for the poor, Education and Arts & Culture. </li></ul>