Alternative Unit 1 2 IM
Alternative Unit 1 2 IM
Part A:
Industrial relations- Definition and main aspects. Industrial disputes and strikes.
Collective bargaining.
The concept of Industrial relations has been defined using various terminologies, but in
the strictest sense, it is essentially the relationship between management and labor. The
full concept of industrial relations is the organization and practice of multi-pronged
relationships between labor and management, unions and labor, unions and
management in an industry. Dale Yoder defines it as a "whole field of relationships that
exists because of the necessary collaboration of men and women in the employment
process of an industry."
Industrial relations are associated with labor, management, labor unions, and the state.
The scene of industrial relations has grown tremendously, and cannot be represented
merely by relations between management and labor. It has become a comprehensive
and total concept embracing the sum total of relationship that exists at various levels of
the organizational structure. Additionally, it connotes relationships between workers
themselves within the labor class, and relations among the management within the
managerial class. In an open sense, industrial relations denote all types of relations
within a group and outside a group - both formal and informal relations.
1. Protect management and labor interests by securing mutual relations between the two
groups.
2. Avoid disputes between management and labor, and create a harmonizing relationship
between the groups so productivity can be increased.
3. Ensure full employment and reduce absenteeism, hence, increasing productivity and
profits.
4. Emphasize labor employer partnership to establish and maintain industrial democracy.
This is done to ensure the sharing of profit gains, and personal developmental of all all
employees.
5. Provide better wages and living conditions to labor, so misunderstandings between
management and labor are reduced to a minimum.
6. To bring about government control over plants where losses are running high, or where
products are produced in the public interest.
7. To bridge a gap between various public factions and reshape the complex social
relationships emerging out of technological advances by controlling and disciplining
members, and adjusting their conflicts
Causes of Industrial Dispute:
Disputes may result from various causes: psychological, potential, and economic. The
most common cause of strikes has been economic reasons; other reasons have been
influenced by nationalist, communist, and commercial ends. The Labor Bureau of
Simla has observed causes such as: wages and allowances, bonus, personnel, vacation
and work timings, violence (added in 1971), etc. An analysis has revealed the following
facts:
During 1921-1931:
15.2% of demands were related to wages.
4.6% of demands were related to bonus.
4.4% of demands were related to vacation days and work-timings.
18.5% of demands were related to others.
During 1939-1947:
44.1% of demands were related to wages.
7.9% of demands were related to bonus.
15.6% of demands were related to personal matters.
5% of demands were related to vacation and work-timings.
During 1948-1957:
28.1% of demands were related to wages.
9.1% of demands were related to bonus.
30.9% of demands were related to personal matters.
7.2% of demands were related to vacation days and work-timings.
Mr. V.B. Singh defines industrial disputes falling under these categories:
1. Income (wage items, price rates, allowances, bonus, minimum and basic wages,
etc.)
2. Employment (holidays, leaves like sick leave, etc., work-timings, welfare
activities, etc.), and
3. Technological changes (workload, standardization of raw materials, etc.).
Industrial peace has, at a certain extent, worsened in the past few years. The social gap
between management and labor has increased, resulting in increased disparities and
frustration. Industrial peace has to be developed with mutually understanding the issues
of labor, and it is imperative to have proper communication between management and
labor union. Three ways to establish industrial have been suggested by the Royal
Commission on Labor:
1. Appoint a labor officer who ensures labor welfare and serves as a representative to
management.
2. Constitution of Works Communities for different industries, and
For a dispute to become an industrial dispute, the following parameters have to be met:
4. There should be a valid and contractual relation between the employer and the
employee. Furthermore, the employee must be employee at the time of the dispute.
Classifications of Disputes:
1. Conflict of Interest:
These conflicts arise due to disagreements in level of income, fringe benefits, job
security, and/or other terms and conditions of employment. Dispute can be resolved on
conciliation by compromising.
Also known as conflict of rights disputes, they occur due to general disagreements like:
discipline, dismissal, payment of wages, overtime, time off entitlements, demotion,
transfer, etc. Dispute can be resolved in labor courts and tribunals.
This type of dispute occurs when Trade union members face discrimination. Unfair
labor practices include: interference, restraint or coercion of employees, refusal to
collective bargaining, recruitment of workmen during legal strikes, failure to
implement awards, acts of violence, etc. Resolution occurs by rules laid down by the
MRTU & PULP Act in the state of Maharashtra, or following the rules of the Industrial
Dispute Act.
Types of Strikes:
Hunger strike:
Workers gather near the factory owner's residence and refuse to eat.
Pen down:
Workers come to work on regular hours but refuse to do any work.
Rule strike:
This type of strike is done by strictly abiding by company rules to the extreme, and there
is no space for flexibility.
Support strike:
Supporting workers from another factory also go on strike to support their fellow workers
from a related factory.
Gate strike:
Workers gather near the company gates and launch a strike.
Production strike:
Workers produce more industrial items but now in harmony.
Go-slow:
Workers work their usual hours but their productivity is greatly reduced. They
deliberately work slower than usual, causing heavy losses and production delays.
Picketing and boycott:
This is the act of surrounding and picketing the owner's residence, and not allowing
anyone to enter the premises. Violent picketing is illegal. Boycott is disturbing the
normal functioning of the business.
Gherao:
This is the process of blocking a target by encircling it. This may prevent people from
approaching the target. The target may be an office, a building entrance, factory,
residence, etc. Gherao may involve assault and torture, and gheraos are illegal.
Sympathetic strike:
This is an illegal strike done by workmen, who are fully satisfied by their employment,
but support the cause of their fellow unsatisfied workmen.
Lockouts:
This is the process of closing down a place of business due to refusal to work by the
employees. Lockouts are different from strikes because lockouts are initiated by the
management/employer. Lockouts are:
1. Closure of industrial undertaking due to violence, disputes, etc.
2. Suspension of employment relationship.
3. Lockouts are initiated by the employer, and strikes are initiated by the employees.
4. Lockouts have definite motive.
Lockouts & Economy:
Lockouts damage industry and national economy.
Collective Bargaining:
Since reaching of arguments have not been successful, the NCL has recommended
compulsory recognition of the union for solely representing bargaining:
1. In the absence of recognitions of unions, and provisions that require employers and
their staff to bargain in "good faith," collective bargaining hasn't met much success in
India. Nevertheless, it is also important to reach collective agreements.
2. Collective bargaining is greatly being emphasized and relied upon, and may be used
as a procedure to resolve industrial conflicts.
Further Observations:
Unions have to be recognized for the purpose of bargaining with the management, trade
unions must be well organized and stable, strikes have to be defined within the scheme
of industrial relations.
Recognition of Unions:
Trade unions must have at least 30% membership from the supporting organization.
1. Recognition of unions must be required for all organizations 100 or more workers.
And at least 30% of the workers within the organization should be members of the
union.
2. The IRC must certify the union as a representative union by verifying its active
memberships. The IRC must also deal with aspects of union recognition such as: the
level of recognition to be offered, certifying the majority union, and dealing with other
related matters.
3. The recognized union must be allotted certain rights such as right to sole
representation, right to enter into collective agreements on terms and conditions of
service, the right to collect membership subscriptions within the premise of the
undertaking, the right of check-off, etc.
4. Minority unions must only be allotted the right to represent cases of dismissal and
discharge of their members before the Labor Court.
1. If cessation of work may cause social harm, strikes should be banned; instead, the
case must be forwarded to an arbitration committee.
3. A maximum of one month must be allotted for holding a legal strike in non-essential
industries.
4. Gherao is not really a form of labor unrest because it involves physical compulsion
instead of economic pressure.
5. Unjustified strikes hold penalties should be discharged, and the aggravated parties
should settle their disputes face-to-face.
2.Personnel hired to work in the conciliation department should undergo special hiring
selection.
Arbitration:
It has been observed that with the growth of collective bargaining, recognition of
unions, and improved management attitudes, settlement of disputes through voluntary
arbitration will be accepted.
These should be discouraged, and penalties should be levied upon those who participate
in unfair labor practices.
These services, provided jointly by the Bureau of Mediation and the Office of Labor-
Management Cooperation, assist labor and management in improving their relationship at
all levels, from the "shop floor" to the "board room," and enable them to address issues of
mutual concern together, rather than as adversaries.
Part :B
Legislation
This is another important area which has a great impact on the industrial relations system.
Labour legislation has been instrumental in shaping the course of industrial relations in
India. Establishment of social justice has been the principle which has guided the origin
and development of labour legislation in India. The setting up of the International Labour
Organisation gave an impetus to the consideration of welfare and working conditions of
the workers all over the world and also led to the growth of labour laws in all parts of the
world, including India. Some of the other factors which gave impetus to the development
of labour laws in India were the Swaraj Movement of 1921-24 and the appointment of the
Royal Commission on Labour in 1929.
The labour laws regulate not only the conditions of work of industrial establishments,
but also industrial relations, payment of wages, registration of trade unions,
certification of standing orders, etc. In addition, they provide social security measures
for workers. They define legal rights and obligations of employees and employers and
also provide guidelines for their relationship.
In India, all laws emanate from the Constitution of India. Under the Constitution,
labour is a concurrent subject, i.e., both the Central and State governments can enact
labour legislation, with the clause that the State legislature cannot enact a law which
is repugnant to the Central law. A rough estimate places the total number of
enactments in India to be around 160.
The Apprentice Act of 1850 was followed by the Factories Act of 1881 and the first State
act was the Bombay Trade Disputes (and Conciliation) Act, 1934, followed by the
Bombay Industrial Disputes Act, 1938, which was amended during the war years. This
was replaced by the BIR Act, 1946.
The Central Government at this time introduced the Industrial Employment (Standing
Orders) Act, 1946. In 1947, the government replaced the Trade Disputes Act with the
Industrial Disputes Act, which was later modified. This law is the main instrument for
government intervention in industrial disputes.
After Independence, many laws concerning social security and regulation of labour
employment were enacted, such as the ESI Act, 1948, EPF and Miscellaneous
Provisions Act, 1952, Payment of Gratuity Act, 1972, Equal Remuneration Act, 1976.
Etc.
Objectives:
Labour Legislation in India are to
i. Protect workers from exploitation
ii. Strengthen industrial relations;
iii. Provide machinery for settling industrial disputes and welfare of workers.
3. Regulatory Legislation:
The Industrial Disputes Act, 1947, Industrial Employment (Standing Orders) Act,
1946 and the Trade Unions Act, 1926, etc. come under this category.
The Industrial Disputes Act, 1947, basically provides for the investigation and
settlement of industrial disputes. Its main objective is to provide for a just settlement
of disputes by negotiations, conciliation, mediation, voluntary arbitration and
compulsory adjudication. The Act places constraints on strikes and lockouts. It
provides for a works committee at the plant level to ensure that management and
worker contribute to the efficient day to day working of the enterprise.
3. Principle of Regulation:
The principle of Regulation generally seeks to regulate the relationships between the
employers and their associations, on the one hand, and workers and their
organisations, on the other. As the relationships between the two groups have
repercussions on the society, the laws enacted on this principle also aim at
safeguarding the interests of the society against the adverse consequences of collusion
or combination between them. Thus, the principle of regulation seeks to regulate the
balance of power in the relationships of the two dominant groups in industrial
relations.
4. Principle of Welfare:
Although the protective and social security laws have the effect of promoting labour
welfare, special labour welfare or labour welfare fund laws have also been enacted,
with a view to providing certain welfare amenities to the workers, and often to their
family members also.
The main purpose behind the enactment of labour laws on this principle is to ensure
the provision of certain basic amenities to workers at their place of work and also, to
improve the living conditions of workers and their family members.
5
One of the outstanding measures to mitigate the hardship is to make available social
security benefits under the coverage of legislation. Social security legislation may be
kept under two broad categories social insurance legislation and social assistance
legislation. In social insurance, benefits are generally made available to the insured
persons, under the condition of having paid the required contributions and fulfilling
certain eligibility conditions.
In social assistance also, the beneficiaries receive benefits as a matter of right, but
they do not have to make any contributions. The finance is made available by the
state or a source specified by the state. Social assistance benefits are generally paid to
persons of insufficient means and on consideration of their minimum needs.
Another problem with regard to labour legislation is that in the absence of an all-India
code labour laws have a tendency to overlap and become repetitive.
f) Collective Bargaining:
The Commission found that collective bargaining did not make any progress in the
country because of absence of arrangements for statutory recognition of trade unions,
except in some states, and greater reliance on adjudication. The Commission
recommended strengthening of collective bargaining through the following measures:
1. In order to enable employees to effectively participate in the process of
collective bargaining, they should be well organised and trade unions must
become strong and stable.
2. To facilitate collective bargaining, there should be compulsory recognition of a union
as sole representative for the purpose of bargaining with the management.
g) Grievance Procedure:
The NCL recommended that statutory backing should be provided for the formulation of an
effective grievance procedure, which should be simple, flexible, less cumbersome and more or
less on the lines of the Model Grievance Procedure. It should be time-bound and have a limited
number of steps, say, approach to the supervisor, then to the departmental head, and thereafter
a reference to the grievance committee consisting of management and union representatives. A
formal grievance procedure should be introduced in each unit employing 100 or more workers.
The Second National Commission on Labour was expected to formulate an umbrella law to
ensure protection to workers in the unorganized sector which, in the absence of growth in
job opportunities in the organised sector, is expanding at a rapid pace, absorbing school
dropouts, women and children. It submitted its report to the Government in June 2002.
Factory Legislation
(1) The term factory henceforth shall mean any concern employing twenty or more
persons instead of fifty as under the 1911 Act.
(2) A basic ten-hour working day for all adults, with the proviso that no person shall be employed more
than sixty hours in any one week or twelve in any one day; the Amendment in the 1911 Factories Act fixed
a twelve-hour day for men and eleven for women, with an interval of half an hour per day for meals.A six-
hour working day for children; this already operates in textile factories.
(3) The minimum age of children to be raised from nine to twelve, and the term children to apply
to all those under fifteen instead of fourteen as hitherto; this new age limit shall not be introduced
till July, 1922, to avoid unnecessary dislocation.
4) Rest periods of not less than one hour for adults for every six hours worked; no child to
work more than four hours continuously without half an hours rest; no person to be
employed in any factory on Sunday, though it is permitted in cases of factories where
continuous processes operate to substitute a mid-week holiday for those workers compelled to
do Sunday work.
5) Overtime rates to be paid at not less than one and a quarter times the normal rates in cases
where factories are exempted for any special reason from the regulation enjoining a maximum
week of sixty hours.
In 1969, the organization received the Nobel Peace Prize for improving peace among classes,
pursuing decent work and justice for workers, and providing technical assistance to other
developing nations.[2]
The ILO registers complaints against entities that are violating international rules; however, it does
not impose sanctions on governments.[3]
The Governing Body decides the agenda of the International Labour Conference, adopts the draft
programme and budget of the organization for submission to the conference, elects the director-
general, requests information from member states concerning labour matters, appoints
commissions of inquiry and supervises the work of the International Labour Office.
Juan Somava was the ILO's director-general from 1999 until October 2012, when Guy Ryder was
elected as his replacement.
Ten of the government seats are held by member states that are nations of "chief industrial
importance," as first considered by an "impartial committee." The nations are Brazil, China,
France, Germany, India, Italy, Japan, the Russian Federation, the United Kingdom and the United
States.[5] The terms of office are three years.
Child labour
The term child labour is often defined as work that deprives children of their childhood, potential,
dignity, and is harmful to their physical and mental development.
In its most extreme forms, child labour involves children being enslaved, separated from their
families, exposed to serious hazards and illnesses and/or left to fend for themselves on the streets
of large cities often at a very early age. Whether or not particular forms of "work" can be
called child labour depends on the child's age, the type and hours of work performed, the
conditions under which it is performed and the objectives pursued by individual countries. The
answer varies from country to country, as well as among sectors within countries.
The ILO's International Programme on the Elimination of Child Labour (IPEC) was created in
1992 with the overall goal of the progressive elimination of child labour, which was to be achieved
through strengthening the capacity of countries to deal with the problem and promoting a
worldwide movement to combat child labour. IPEC currently has operations in 88 countries, with
an annual expenditure on technical cooperation projects that reached over US$74 million, 50
million in 2006. It is the largest programme of its kind globally and the biggest single operational
programme of the ILO.
The number and range of IPEC's partners have expanded over the years and now include
employers' and workers' organizations, other international and government agencies, private
businesses, community-based organizations, NGOs, the media, parliamentarians, the judiciary,
universities, religious groups and, of course, children and their families.
IPEC's work to eliminate child labour is an important facet of the ILO's Decent Work
Agenda.[35] Child labour not only prevents children from acquiring the skills and education they
need for a better future,[36] it also perpetuates poverty and affects national economies through
losses in competitiveness, productivity and potential income.[citation needed]
ILO's Exceptions in Indigenous Communities
Because of different cultural views involving labour, the International Labour Organization (ILO)
developed a series of culturally sensitive mandates including Conventions No. 169, 107, 138, and
182 to protect indigenous culture, traditions, and identities. Conventions No. 138 and 182 lead in
the fight against child labour, while No. 107 and 169 promote the right of indigenous and tribal
peoples and protect their right to define their own developmental priorities.[37] The ILO recognizes
these changes are necessary to respect the culture and traditions of other communities while also
looking after the welfare of children.
In many indigenous communities, parents believe children learn important life lessons through the
act of work and through the participation in daily life. Working is seen as a learning process
preparing children of the future tasks they will eventually have to do as an adult.[38] It is a belief
that the family's and child well-being and survival is a shared responsibility between members of
the whole family. They also see work as an intrinsic part of their child's developmental process.
While these attitudes toward child work remain, many children and parents from indigenous
communities still highly value education.[37]ILO wants to include these communities in the fight
against exploitative child labour while being sensitive to their traditions and values.
ISSUES
Forced labour
The ILO has considered the fight against forced labour to be one of its main priorities. During the
interwar years, the issue was mainly considered a colonial phenomenon, and the ILO's concern
was to establish minimum standards protecting the inhabitants of colonies from the worst abuses
committed by economic interests. After 1945, the goal became to set a uniform and universal
standard, determined by the higher awareness gained during World War II of politically and
economically motivated systems of forced labour, but debates were hampered by the Cold War and
by exemptions claimed by colonial powers. Since the 1960s, declarations of labour standards as a
component of human rights have been weakened by government of postcolonial countries claiming
a need to exercise extraordinary powers over labour in their role as emergency regimes promoting
rapid economic development.[39]
1. Which Act provides for the Health, Safety and Welfare of workers?
(a) Apprenticeship Act, 1961 (b) Factories Act, 1948
(b) Employees Compensation Act, 1923 (d) All of the above
2. Which of the following Authorities come under the Industrial Disputes Act, 1947?
(a) Works committee (b) Labour Courts
(b) Industrial Tribunal and National Industrial Tribunal (d) All of the above
4. The Workmens Compensation Act, 1923, the Maternity Benefit Act, 1965 and the
Employees State Insurance Act, 1948:
(a) Together can be applicable
(b) The Maternity Benefit Act and the Employees State Insurance Act can be
applicable at a time
(c) The Workmens Compensation Act and the Employees State Insurance Act can
be applicable at a time
(d) If the Workmens Compensation Act and the Maternity Benefit Act are
applicable, the Employees State Insurance Act is not applicable
(a) ii iv i iii
(b) ii iv iii i
(c) iv ii iii i
(d) iv iii i ii
9. The Article in Indian Constitution that imposes prohibition on traffic in human beings,
beggar and other similar forms of forced labour is:
(a) Article 19 (b) Article 23 (c) Article 32 (d) Article 45
1 2 3 4 5 6 7 8 9 10
b d c d a d d a b d