UNIT- I: INDUSTRIAL RELATIONS

INDUSTRIAL RELATIONS: CONCEPT

Off all the human resource management problem that have emerged on the corporate
forefront in recent times, the problem of industrial relations is the one that has achieved
more prominence than any other one. There are many definitions of industrial relations as
the author on the subject.
The term “industrial relations” commonly denotes employee-employer relations” in both
organized and unorganized sectors of economy. A few features pertaining to industrial
relations are as under:-
1) Industrial relation do not emerge in vacuum they are born out of employment
relationship in an industrial setting .Without the existence of two parties, i.e.,
labour and management this relationship cannot exist.
2) Industrial relations are characterized by both conflict and co-operation. The focus
of industrial relations is on the study of the attitudes relationships practices and
procedures developed by contending parties to resolve conflicts.
3) The study of industrial relations includes vital environmental issues like
technology of the workplace, country’s socio-economic and political
environment, nation’s labour policy attitude of trade union.
4) Industrial relation also study the laws, rules, regulations, agreements, awards of
courts, as well as policy framework laid down by the government for eliciting
co-operation between labor and management.

Aspects of Industrial relations

The main aspects of industrial relations are:-

1) Promotion and development of healthy labour management relations;

2) Maintenance of industrial peace and avoidance of industrial strife and

3) Development of industrial democracy.

Factors affecting Industrial relations

The industrial relations systems of an organization influenced by a variety of factors. A

few important are:-

1) Institutional factor 2) Economic factor 3) Social factor

4) Technological factor 5) Psychological factor 6) Political factor

7) Enterprise related factor 8) Global factors

Approaches to Industrial Relations

A) Psychological approaches to industrial relations:- The psychologists are of view

that the problem of industrial relations are deeply rooted in the perception and the
attitude of focal participants. This was studied nicely by Manson Harie. The
conflict between labour & management occurs & every group negatively views
the behavior of each other. Strained inter personal and inter-group relations
breeds disharmony in the system.

B) Sociological approach to industrial relations:- Sociological aspect of the problem

are more important than other one. This includes various Sociological factors like
value system, customs norms, attitude and perception of both labour &
management that affect the industrial relations in varied ways. So the analyzing of
social change cannot be overlooked.

C) Human relations approach to industrial relations:- Among all the areas of

management perhaps one of the most delicate and tricky ones is concerned with
human resource management. Pulsating human being having their own emotions
perception attitude etc is radically different from that of physical material. So
when resources are not properly managed the problem of industrial surfaces. This
can be only managed by deciphering and managing of human behavior at both
individual and group level.

D) System Approach to industrial relations:- John Dunlop has developed a system

approach. This approach is quite helpful in studying the industrial relations in the
sense that it focuses on participants in the process, environmental forces and the
output . the basic elements of system are:- 1) participants in the system. 2)An
ideological thinking 3) the context or environment.

Importance of Industrial relations

With the increased sophistication of work methods and techno based HRM policies a new
dimension has emerged in industrial relation. The pattern of industrial relation in the
organize sector of economy has a definite impact on labour management relations in the
un-organized sector. The industrial relation has major impact on the Indian political
system in way of trade union formation and its activities.
GROWTH OF TRADE UNIONS

Growth & Development of the Trade Union Movement in India

The growth and development of the labour movement and trade unions in India can be
divided into following periods:-

1. Social welfare period from 1875 to 1918.

2. Early Trade Union period from 1918 to 1924.

3. Left wing Trade Unionism period from 1924 to 1934.

4. Trade Union Unity period from 1935 to 1938.

5. Second World War period from 1939 to 1945.

6. Post Independence period from 1947 to date.

1) Social welfare period from 1875 to 1918.

The labour movement in India started very late through the history of modern
industrialism in India began as early as 1850. The factory commission (1875) factories
Act (1881), the investigation of Meade moor(1874) the second Bombay factory
commission , the workers meeting organized in Bombay and submission of memorial to
second Bombay commission were the important events of this era. The memorial
demanded- 1) a complete day rest on Saturday. 2) Working hours no longer than 6.30 pm.
3) the payment of wages not late than 15th of the month. 4) Payment of injured workers.
The movement received well deserved encouragement by owners and many associations
were formed. The objectives were to promote welfare activities, spread literacy etc. The
movement received a set back on the death of two pioneers. The most noticeable features
of the period were:-
1. Complete absence of radicalism in the labour movement.
2. Most of the organizations were unstable and loose type as they lacked definite
aims and constitution.
3. There was little conception of permanent trade union membership.

2. Early Trade Union period from 1918 to 1924.

The year 1918 was important one for the India trade union movement. The movement
could take permanent roots in the Indian soil only after the close world war-1 .The
situation was due to - 1) Industrial unrest that grew up as result of grave economic
difficulties created by war. The rising cost of living prompted the workers a reasonable
wages for which they united. 2) The Swaraj movement . 3) The success of the Russian
revolution1917. 4) The establishment of ILO in 1919 gave dignity to workers. 5) The non
cooperative movement of gandhiji during 1920-21 add support to labour.

At this time many union were formed as result of this situation such as GIP railways
workers Union, Bombay MSM railways union etc. By 1919 the trade started to spread
across different parts of India. It is estimated that between 2.50 to 5.00 lakhs workers
were organized into union at this time. In 1920 All Indian Trade Union Congress was
established (AITUC) with a indentation of bringing all the trade union under one roof.
The movement did not make steady progress in all the areas as intended as the unions
were loose in continuity and many other reasons.

3. Left wing Trade Unionism period from 1924 to 1934.

During this era the rapid growth of trade unionism was facilitated by several factors such
as- 1) the growth of anti-imperialist national movement.2) the brutal violence by British.
3) the phenomenal profits earned by the capitalist in the face of failing real wages during
the post war period.

Another significant features of this era was marked by the rise of two distinct trade union
parties called the “Rightists” and “Leftists” who totally different in their policies and
ideologies. The Rightist believes in the policies adopted by AITUC but leftists were
opposed to and they formed a new union called as “All India Trade Union Federation
(AITUF)”. Thus the trade union movement presents a picture of disunity.

4.Trade Union Unity period from 1935 to 1938.

In 1932, Trade union unity committee was formed which adopted a resolution for
“platform for unity”. The division labour movement was proving a very costly as by 1934
47.7 lakhs workers lost their jobs. Under this circumstances it was very important all the
trade union get together and worker for the safety, security ad welfare of employees and
did happened so by 1935 many Trade union came together and stated their work in one
way direction along with helping each other. But the main problem during this period
was that this trade union was that it was post world war scenario and they were still
divided on many issues.

5. Second World War period from 1939 to 1945.

During war time certain factors helped to enhance the status of the trade unions in the
country namely-1) The government as well as employers launched a number of welfare
measures with a view to increase production for war materials and essential goods.
2) Recognition to trade unions. 3) Ban on strikes, lockouts, during war-time and all the
disputes had to be referred to adjudication and their awards were enforce 4) A tripartite
labour conference was convened to provide a common platform for discussion and
mutual understanding between labour and employers.
The impact of the Second World War on the trade union was tremendous. One great
qualitative change that had taken places in Indian trade unions related was that their
ability to participate in negotiations and tripartite deliberations.

6. Post Independence period from 1947 to date.

After the independence the trade union got lot of movement as the governments were in
favour of developing the condition and welfare of the employees. Their were many trade
union formed based on the nature of area of working employees , on nature of political
grounds etc. but all of the trade fundaments were the same. The post war period has
been marked with important factors such as:- 1) The enactment of labour laws conferring
special privileges on register of trade union. 2) Government Industrial Relation Policy
with its provision for compulsory adjudication machinery. 3) Desire of workers to unite
for safe guarding their interest. Present scenario of trade union in India is that they have
become integral part of industrial society .the political, economical, historical factors
have helped trade unions to get a legal status and represent the workers.

TRADE UNION- A CONCEPT

A few commonly citied definitions are:-

Dale yoder “ A trade union is a continuous association of wage-earners for the purpose of
maintaining or improving the conditions of their working lives”

Indian Trade Union Act 1926 “ A trade union is any combination whether temporary or
permanent ,formed primarily for the purpose of regulating the relations between
workmen and employers , or between workmen and workmen, 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 trade unions”.

General Features of trade Union

1) The Trade union is an association either of employers or employees or of

independent workers.
2) Labour unions are relatively permanent association of workers and are not
temporary or casual.
3) A trade union is an association of workers who are engaged in securing economic
benefits for its members.
4) The character of trade union has been constantly changing with the present
scenario.
Functions of Trade Union in India

1) To achieve higher wages and better working and living conditions for the
members.
2) To acquire control over industry by workers.
3) To minimize the helplessness of individual workers by making them stand up
Unitedly and increasing their resistance power through collective bargaining.
4) To raise the status of the workers .
5) To generate self confidence among the workers.
6) To encourage sincerity and discipline among workers.
7) To take welfare measures for improving the morale of the workers.

Type and Structure of Trade Unions

A) The Union Classified according to purpose

1) Reformist 2) Revolutionary

1) Reformist unions- These unions are those which aim at the preservation of the
capitalist society and the maintenance of the usual employer-employee
relationship, elimination of competitive system of production. They desire only to
modify these in accordance with what their members consider to be current modes
in society.
2) Revolutionary unions:- These unions aim at destroying the present structure
completely and replacing it with new and different institutions according to the
ideas that are regard as preferable.

B) The Union Classified on the basis of membership structure

1) Craft Union – It is an organization of workers employed in a particular craft or

trade. Craft unions are found amongst non manual employees and professional
workers.
2) Staff Union:- It is popularly used to refer both craft and industrial unions. It is
an organization or rather a form of organization based on the sense of
common status and common need help.
3) Industrial Union:- It is an organization of workers which links craftsmen and
skilled workers in any industry . The common bond here is industry in which
the workers are employed.

PROBLEMS OF TRADE UNIONS

The following are the most important and pressing problems :-

1. Uneven growth (Industry wise and Area wise).
2. Small Size of Unions.
3. Financial Weakness.
4. Multiplicity of unions and inter-union rivalry.
 5. Leadership issue.
6. Politicalisation of unions.
7. Problem of recognition of trade union.

Uneven growth (Industry wise and Area wise).

The trade union activities are mostly concentrated in the large scale industry and there too
in regard to manual labour only. The reason is that this industry has not only the prime
mover of the trade union movement but it has been the supreme centre of all the labour
activity and labour trouble.

Another feature is that it is mainly concentrated in a few states and in bigger industrial
centres in those states. The main reason for the development of these industry-cum-centre
union has been the concentration of certain industries in particular areas for ex- textile
workers in Bombay, surat, indore etc.

Small Size of Unions.

Due to the factors:-

1) Any seven members may form a union under trade union act 1926.
2) The women workers are not allowed to join trade union.
3) The rivalry among the leaders has resulted in multiplicity of union and
membership.
4) With establishment of new organization a new union is formed.

Financial Weakness.

The average income of trade unions has been low not because of the poverty of the
workers but because of factors such as -1) The workers are apathetic towards trade unions
and do not want to contribute a part of their hard earned money. 2) Members instead of
making regular payment to the union make ad hoc payments if disputes arises. The
insufficiency of funds is main reason for the deplorable conditions of many small unions.

Multiplicity of unions and inter-union rivalry.

The multiple unions are the result of political outsiders wanting to establish union of their
own with a view to increase the political influence . The multiplicity of union leads to
inter union rivalry which ultimately cuts at the very root of unionism weakens power of
collective bargaining.

Leadership issue

The leaders of trade union are persons such as politicians, lawyer etc. These leaders are
totally strangers to the workers and their trade unions in the sense that in the whole of
their life-time, neither meet the rank and file nor visit the work places and as such have
not even the slightest idea of their real problems.
Politicalisation of unions.

One of the biggest problem which the country trade union movement faces is the
influence of political parties i.e, the most distressing feature of political charcter. Like for
Ex- INTUC political affiliation to Congress (I), AITUC affiliated to CPI, BMS affiliated
to BJP. Trade being associated with national political party is good but now a days every
political party is trying to advantage of this trade union in misleading non essential
activities.

Problem of recognition of trade union.

Many employers refuse the recognition of trade union either on the basis that union
consist of minority of employees or that two or more union existed, but this cannot a
reason for withholding the recognition to trade union. A Trade union for recognition has
follow the code of discipline laid which are as under:- 1) The membership of a union
should cover at least 15% of the workers in the concerned. 2) Where there more one
union, a union claming recognition should have been functioning for at least one year
after recognition.3) When a union has been recognized there should be no change in the
form the ranks for a period of two years.4) where there several union the largest
membership union should be recognized. 5) Must observe Code of discipline.

CODE OF CONDUCT 1958

The four central labour organizations (INTUC,AITUC,HMS, UTUC) voluntarily

adopted an inter-union “code of conduct” on may 21,1958 for the maintenance of
harmonious inter union relations:-
1) Every employee in industry shall have freedom and right to join a union of his
choice.
2) There shall be no dual membership of unions.
3) There shall be unreserved acceptance of and respect for the democratic
functioning of trade unions.
4) Casteism, communalism and provincialism shall be eschewed.
5) There shall be regular and democratic elections of executive bodies.
6) There shall be no violence, coercion, intimidation in inter union dealing.