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Concept And Approach To Industrial Relations

UGC Refresher Course On Labour Legislation & Industrial Relations

Organized by Department of Management Studies, Pooja Bhagavat Memorial Mahajan Post Graduate Center, Mysore In Association with National Institute Of Personnel Management Mysore Chapter
29th April 2011
Presentation By

Surendranath.A
Past Chairman, NIPM-Mysore Chapter

About The Presenter


Surendranath. A, is a seasoned HR Professional with 35 years of experience in HR & IR in manufacturing industries plus 2 years stint as HR Consultant. M.A (Social Work) from Indore School of Social Work (1974) A Certified Management Trainer by All India Management Association Conducted several workshops for MNCs to their supervisors and line managers on People Skills, Coaching & Mentoring and Performance Management Executed HR Projects to MNCs and the notable one was for Toyotas Global Labor Relations Department, Japan by developing India HRM Handbook. Has hands on experience in integrating HR methods into Industrial Relations Management for todays need. Well experienced in dealing with Knowledge Employees in Todays Manufacturing Industries. Thorough in Employment Laws Advisory Services Experienced in setting up HR function for newly setup industries and reengineer HR function for the existing industries. Has passion to develop and train people in Behavioral, Management & HR skills. Lectured for Refresher Courses for Teaching Staff of Universities on HR under the aegis of AICTE and UGC.
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About The Presenter


Membership In Professional Bodies:
Life Member- National Institute of Personnel Management (NIPM) Life Member- National HRD Network (NHRDN) Life Member-Indian Industrial Relations Association (IIRA) Member- All India Management Association (AIMA) Life Member- National Association for Professional Social Workers of India Also held membership in International Industrial Relations Association, International Sociological Association, Forum for Asian Managers

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About The Presenter


Organizations Worked:
JK Tyres, Mysore (Earlier Vikrant Tyres) Falcon Tyres, Mysore ACC-Vickers-Babcock, Shahabad (Now Alstom) BMM Ispat, Hospet BILT, Kamalapuram (Then AP Rayons) Mahindra-Nissan-Allwyn, Zahirabad (Now M&M) Rockwool India, Digwal Sumitra Pharma, Digwal (Now Piramal Pharma) Nizam Sugars, Madhnagar Sangam Alluminium, Hosur

Industry Type
Tyre Tyre Heavy Engg Iron & Steel Rayon Pulp Automotive Mineral Wool Bulk Drugs Sugar Extrusion

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Content of Presentation
Historical Background Concept and Approach in IR Stake Holders of IR Various Factors Influencing IR Essentials of Sound IR Policy IR Strategies Community of IR Legal Framework of IR Proactive IR
Works Committee MOUs & Settlements Collective Bargaining Long Term Settlements

HR Approach to IR
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Historical Background

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Historical Background
Industrial relations has its roots in the industrial revolution which created the modern employment relationship by spawning free labor markets and largescale industrial organizations with thousands of wage workers.

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Industrial Relation in India


Early British Rule 1st World War to Pre-Independence Period Post independence period.

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Historical Background
With the massive economic and social changes, labor problems arose. Low wages Long working hours Monotonous and dangerous work, and Abusive supervisory practices Led to high employee turnover, violent strikes, and the threat of social instability.
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Historical Background
Industrial relations was formed with a strong problem-solving orientation that rejected both the classical economists laissez faire solutions to labor problems and the Marxist solution of class revolution. It is this approach that underlies the various labour legislation.

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Historical Background- West


Institutionally, industrial relations was founded by John R. Commons when he created the first academic industrial relations program at the University of Wisconsin in 1920. Early financial support for the field came from John D. Rockefeller, Jr. who supported progressive labor-management relations in the aftermath of the bloody strike at a Rockefellerowned coal mine in Colorado.
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Historical Background-West
In Britain, another progressive industrialist, Montague Burton, endowed chairs in industrial relations at Leeds, Cardiff and Cambridge in 1930, and the discipline was formalized in the 1950s with the formation of the Oxford School by Allan Flanders and Hugh Clegg.

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Concept and Approach in IR

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What Is IR?
Various interests involved in the labour management are accommodated, primarily for the purpose of regulating employment relationships. Outlook of IR is essentially collectivist and pluralist. The relationships which arise at and out of the workplace (ie, relationships between individual workers The relationships between them and their employer
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What Is IR?
The relationships employers and workers have with the organizations formed to promote and defend their respective interests, and the relations between those organizations, at all levels. Includes the processes through which these relationships are expressed such as, collective bargaining; worker participation in management/involvement in decision-making; and grievance and dispute settlement Involves the management of conflict between employers, workers and trade unions, when it arises.

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What Is IR?
Influenced by the government and its agencies through policies, laws, institutions and programmes, and by the broader political, social, economic, technological and cultural characteristics of a place. The policy/procedure, developed through bipartite consultative processes (ie, between employer and worker representatives, and by them, individually, with government) and tripartite consultation and cooperation (involving government).
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IR Outcomes
A series of rules which apply to work like , Setting down minimum (and other) wages Terms and conditions of employment for workers Occupational safety and health, social security (sometimes), and conditions applying to special categories of workers. Defining the roles and responsibilities of the parties, individually and collectively (eg, through legislation; collective labour agreements; decisions by arbitrators and courts; and enterprise work rules).
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Theoretical Perspectives OR Frameworks Of IR


Unitarism Pluralist Radical Each offers a particular perception of workplace relations and will therefore interpret such events as workplace conflict, the role of unions and job regulation differently.
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Unitary Perspective
In unitarism, the organization is perceived as an integrated and harmonious whole with the ideal of "one happy family", where management and other members of the staff all share a common purpose, emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees, being predominantly managerial in its emphasis and application. Consequently, trade unions are deemed as unnecessary since the loyalty between employees and organizations are considered mutually exclusive, where there can't be two sides of industry. Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction and communication breakdown.
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Pluralist Perspective
In pluralism the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the pluralistic perspective are the management and trade unions. Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees, conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact be channelled towards evolution and positive change.
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Radical Perspective
This view of industrial relations looks at the nature of the capitalist society, where there is a fundamental division of interest between capital and labour, and sees workplace relations against this background. This perspective sees inequalities of power and economic wealth as having their roots in the nature of the capitalist economic system. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Whilst there may be periods of acquiescence, the radical view would be that institutions of joint regulation would enhance rather than limit management's position as they presume the continuation of capitalism rather than challenge it.
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Industrial Relations Today


By many accounts, industrial relations today is in crisis. In academia, its traditional positions are threatened on one side by the dominance of mainstream economics and organizational behavior, and on the other by postmodernism. In policy-making circles, the industrial relations emphasis on institutional intervention is trumped by a neoliberal emphasis on the laissez faire promotion of free markets.

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Industrial Relations Today


In practice, labor unions are declining and fewer companies have industrial relations functions. The number of academic programs in industrial relations is therefore shrinking, and scholars are leaving the field for other areas, especially human resource management and organizational behavior. The importance of work, however, is stronger than ever, and the lessons of industrial relations remain vital. The challenge for industrial relations is to reestablish these connections with the broader academic, policy, and business worlds.
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IR and HR
HR is essentially a bipartite process, not involving the Government. The emphasis of IR is to achieve collective outcomes at national and/or sector/industry levels which are then applied to each enterprise. HR is focused directly at the level of the enterprise and seeks to align the interests of managers, individual workers and groups of workers around certain mutually agreed corporate objectives, in order to achieve competitive advantage in the market place.
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HR challenge to IR
It can operate to undermine the role of trade unions at enterprise level by emphasising the primacy of the relationship between managers and individual workers. It is possible to harmonize IR and HR policies and practices in ways which can strengthen outcomes for both This issue which will be discussed again later in the presentation.
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Human Relations
The term human relations refers to the whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of modern industry. It is that part of management which is concerned with the management of enterprise -whether machine operator, skilled worker or manager. It deals with either the relationship between the state and employers and workers organisation or the relation between the occupational organisation themselves.
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Stake Holders of IR

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Stake Holders of IR
Promoters Including Investors Management Employees Workers and Their Unions Customers Society Government
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Various Factors Influencing IR

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Various Factors Influencing IR


Government Policies Labour Legislation Market Conditions Employer Attitude Employees Attitude Trade Union Attitude

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Essentials of Sound IR Policy

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Sound Industrial Relations System


A sound industrial relations system is not capable of precise definition. Every industrial relations system has to take into account, and reflect, cultural factors. Systems cannot change culture, but only behaviour within a cultural environment. As such, one can only describe some of the elements which have generally come to be recognized as contributing to a sound industrial relations system. These elements would constitute a sort of 'check-list'. A relatively sound industrial relations system will exhibit some of these elements.
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Sound Industrial Relations System


A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.
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Sound Industrial Relations System


Industrial relations itself may again be described as being concerned with the rules, processes and mechanisms (and the results emanating therefrom) through which the relationship between employers and employees and their respective representatives, as well as between them on the one hand and the State and its agencies on the other, is regulated.

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Sound Industrial Relations System


Industrial relations seek to balance the economic efficiency of organizations with equity, justice and the development of the individual, to find ways of avoiding, minimizing and resolving disputes and conflict and to promote harmonious relations between and among the actors directly involved, and society as a whole.

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Sound Industrial Relations System


The rules, processes and mechanisms of an industrial relations system are found in sources such as laws (legislative, judicial, quasi-judicial), practices, customs, agreements and arrangements arrived at through a bipartite or tripartite process or through prescription by the State.

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Sound Industrial Relations System


Industrial relations operates at different levels - at the national level, at the level of the industry and at the enterprise level. The elements which reflect a sound industrial relations system at all these levels are not necessarily the same.

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National Level Industrial Relations


At the national level industrial relations operates so as to formulate labour relations policy. In market economies this is usually done through a tripartite process involving government, employers and workers and their representative organizations.

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Industry Level Industrial Relations


At the industry level industrial relations often takes the form of collective bargaining between employers' organizations and unions. This process may result in determining wages and other terms and conditions of employment for an industry or sector. It may also result in arrangements on issues which are of mutual concern such as training, ways of avoiding or settling disputes, etc.

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Enterprise Level Industrial Relations


At the enterprise level the relationship between employers and workers is more direct, but the interests of workers may be represented by unions. Employers' organizations, however, are not usually involved at the enterprise level in representing the employers interests with workers or their union, but this does not mean that they do not have an important promotional role at this level.
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Sound Industrial Relations


Sound industrial relations at the national level build trust and confidence between representatives of workers and employers. Sound relations at the enterprise level builds trust and confidence between workers and management, which is the point at which the system must ultimately be effective. Effectiveness at one level would naturally have some impact on the other.

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IR Strategy

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IR Strategy
Attitudinal and behavioural changes Modern labour polices, legislation and institutions Employers should be seeking "modern" labour policies, legislation and institutions which encourage industrial harmony (by emphasising prevention not resolution of conflict). Compensation systems linked to enterprise performance A skilled and adaptable workforce Flexible forms of work organization and management Culturally-sensitive management strategies Implementing a reform strategy

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Diffusion Of IR Practices
Whether such IR/HRM practices are adopted, on a widespread basis, will depend on three considerations: First, the impact of MNC's (through international benchmarking and diffusion of best practice to local suppliers and subcontractors); Second, the extent to which individual domestic enterprises and governments learn "by doing" (and diffuse lessons learned within the local economy) and, Thirdly, whether collective bargaining (particularly, at industry level) can produce good examples of negotiated agreements which address the range of issues of concern in developing more flexible workplaces, and provide "blueprints" which many local enterprises might seek to follow. Presentation By Surendranath.A On 29 April, 2011
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Governments Role In IR
The essential challenge for governments in the region in the face of globalization is to seek to encourage and regulate foreign participation in national economic development in a manner that promotes balanced growth with equity.

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Employers Roles In IR
Proactive and preventive, the need for sound workplace relations which emphasise the importance of improved cooperation and consultation and effective negotiation to address workplace issues, thereby avoiding (or, at least, limiting) industrial disputes and providing a basis for achieving sustainable improvements in enterprise performance.
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Workers & Unions Role In IR


A form of unionism which focuses on working with employers (and their organizations) in implementing strategies to improve enterprise competitiveness and the quality of work through improvements in work organization, labour management Proactive and strategic in approach Relations and Skills development Avoid restrictive in nature (eg, seeking, by various means, to limit change). The development of effective unionism (and, indeed, of trade union movements everywhere) is contingent on the recognition and application of the rights of freedom of association, to organize and to bargain collectively.
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Impact of Globalization on Industrial Relations


NATIONAL POLICIES AND STRATEGIES ON ECONOMIC DEVELOPMENT AND INDUSTRIAL RELATIONS

BUSINESS AND EMPLOYMENT STRATEGIES OF MNCs

BUSINESS AND EMPLOYMENT STRATEGIES OF DOMESTIC COMPANIES

STRATEGIES AND STRUCTURES OF TRADE UNIONS AND EMPLOYERS ORGANIZATIONS

INDUSTRY LEVEL NORMS ABOUT EMPLOYMENT PRACTICE

ENTERPRISE LEVEL

EMPLOYMENT RELATIONS (IR/HR) [WORK ORGANIZATION, SKILL DEVELOPMENT COMPENSATION, CROSS-CULTURAL MANAGEMENT] Presentation By Surendranath.A On 29th April, 2011
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Community of Industrial Relations

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Community Of Industrial Relations


International Industrial Relations Association, Geneva-Sponsored by ILO International Sociological Association National Institute of Personnel Management Indian Industrial Relations Association

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Constitutional Frame Work Of Industrial Relations

Directive Principles of State Policy


Equal Pay for Equal Work for men and women- Article 39(d) Health and Safety of workers Article 39(c) Right to Work-Article 41 Just and Humane Conditions of Work and for Maternity Relief-Article 42 Living Wage and Decent Standard of Life of labourersArticle 43 Participation of Workers in the Management of undertakings or industrial establishments by suitable legislation or otherwise-Aritcle 43A (42nd Amendment)
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Legal Framework of IR

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LABOUR LAWS & IR


Industrial Disputes Act 1947 Industrial Employment (Standing Orders) Act 1946 Trade Unions Act 1926 Factories Act 1948 Contract Labour (Regulation And Abolition) Act 1970 Payment of Wages Act 1936 Equal Remuneration Act

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LABOUR LAWS & IR


Payment Of Bonus Act 1965 Payment of Gratuity Act 1972 Employees Compensation Act 1923 Karnataka Industrial Establishments (National And Festival Holidays Act) 1963

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INDUSTRIAL DISPUTES ACT


Defines Who Is A Workman And What Is an Industrial Dispute Distinguishes Public Utility Service and Non Public Utility Service Specifies for Authorities Under The Act Stipulates Procedure for Change of Service Conditions Provides For Dispute Resolution Machinery

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INDUSTRIAL DISPUTES ACT


Provides For Permission To Change Conditions Of Service Under Certain Circumstances During Pendency Of Proceedings Before Specified Authorities Empowers Labour Courts And Tribunals To Interfere with the Punishment Awarded Deals With Strikes And Lockouts Regulates Lay-Offs And Closures
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What is an Industrial Dispute?


Sec2(k) industrial dispute means any dispute or difference between em-ployers 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 ;

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Conditions Of Service For Change Of Which Notice Is To Be Given- 4th Schedule, ID Act
1. Wages, including the period and mode of payment; 2. Contribution paid, or payable, by the employer to any provident provident fund or pension fund or for the benefit of the workmen under any law for the time being in force; 3. Compensatory and other allowances; 4. Hours of work and rest intervals; 5. Leave with wages and holidays; 6. Starting, alternating or discontinuance of shift working otherwise otherwise than in accordance with standing orders; 7. Classification by grades; 8. Withdrawal of any customary concession or privilege or change in usage; 9. Introduction of new rules of discipline, or alteration of existing existing rules except insofar as they are provided in standing orders; 10. Rationalization, standardization or improvement of plant or technique which is likely to lead to retrenchment of workmen; 11. Any increases or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department or shift not occasioned occasioned by circumstances over which the employer has no control.
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Unfair Labour Practices


5th Schedule, ID Act
I - On the part of employers and trade unions of employers 1. To interfere with, restrain from, or coerce, workmen in the exercise exercise of their right to organise, form, join or assist a trade union or to engage in concerted activities for the purposes of collective collective bargaining or other mutual aid or protection, that is to say, say, (a) threatening workmen with discharge or dismissal, if they join join a trade union; (b) threatening a locklock-out or closure, if a trade union is organised; and (c) granting wage increase to workmen at crucial periods of trade trade union organisation, with a view to undermining the efforts of the trade union at organisation. 2. To dominate, interfere with or contribute support, financial or otherwise, to any trade union, that is to say ::- (a) an employer taking an active interest in organising a trade, union of his workmen; workmen; and (b) an employer showing partiality or granting favour to one of several trade unions attempting to organise his workmen or to its members, where such a trade union is not a recognised trade union. 3. To establish employeremployer-sponsored trade unions of workmen. 4. To encourage or discourage membership in any trade union by discriminating discriminating against any workman, that is to say ::(a) discharging or punishing a workman, because he urged other workmen workmen to join or organise a trade union; (b) discharging or dismissing a workman for taking part in any strike strike (not being a strike which it deemed to be an illegal strike strike under this Act); (c) changing seniority rating of workmen because of trade union activities; (d) refusing to promote workmen to higher posts on account of their their trade union activities; (e) giving unmerited promotions to certain workmen with a view to to creating discord amongst other workmen, or to undermine the strength of their trade union; (f) discharging office bearers or active members of the trade union union on account of their trade union activities. Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com

Unfair Labour Practices 5th Schedule, ID Act


5. To discharge or dismiss workmen (a) by way of victimisation; (b) not in good faith, but in the colourable exercise of the employer's employer's rights; (c) by falsely implicating a workman in a criminal case on false evidence or on concocted evidence; (d) for patently false reasons; (e) on untrue or trumpet up allegations of absence without leave; leave; (f) in utter disregard of the principles of natural justice in the the conduct of domestic enquiry or with undue haste; (g) for misconduct of a minor or technical character, without having having any regard to the nature of the particular misconduct or the past record of service of the workman, workman, thereby leading to a disproportionate punishment. 6. To abolish the work of a regular nature being done by workmen, workmen, and to give such work to contractors as a measure of breaking a strike. 7. To transfer a workman mala fide from one place to another, under the guise of following management management policy. 8. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as a precondition to allowing them to resume work. 9. To show favouritis or partiality to one set of workers regardless of merit.
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Unfair Labour Practices


5th Schedule, ID Act
10. To employ workmen as "badlis , casuals or temporaries and to continue them as such for years, "badlis years, with the object of depriving them of the status and privileges of permanent permanent workmen. 11. To discharge or discriminate against any workman for filing charges or testifying against an employer in any enquiry or proceeding relating to any industrial dispute. 12. To recruit workmen during a strike which is not an illegal strike. strike. 13. Failure to implement award, settlement or agreement. 14. To indulge in acts of force or violence. 15. To refuse to bargain collectively, in good faith with the recognised recognised trade unions. 16. Proposing or continuing a locklock-out deemed to be illegal under this Act. II - On the part of workmen and trade unions of workmen 1. To advise or actively support or instigate any strike deemed to be illegal under this Act.

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Unfair Labour Practices 5th Schedule, ID Act


2. To coerce workmen in the exercise of their right to selfself-organisation or to join a trade union or refrain from joining any trade union, that is to say - (a) for a trade union or its members to picketing in such a manner that nonnon-striking workmen are physically debarred from entering the work places; (b) to indulge in acts of force or violence or to hold out threats threats of intimidation in connection with a strike against nonnon-striking workmen or against managerial staff. 3. For a recognised union to refuse to bargain collectively in good good faith with the employer. 4. To indulge in coercive activities against certification of bargaining bargaining representative. 5. To stage, encourage or instigate such forms of coercive actions actions as willful "go slow", squatting on the work premises after working hours or "gherao " of any of the members of the managerial or other staff. "gherao" 6. To stage demonstrations at the residences of the employers or the managerial staff members. 7. To incite or indulge in willful damage to employer's property connected with the industry. 8. To indulge in acts of force or violence or to hold out threats threats of intimidation against any workman with a view to prevent him from attending work.

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Matters Within The Jurisdiction Of Labour Courts 2nd Schedule, ID Act


1. The propriety or legality of an order passed by an employer under the standing orders; 2. The application and interpretation of standing orders; 3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen wrongfully dismissed; 4. Withdrawal of any customary concession or privilege; 5. Illegality or otherwise of a strike or lock-out; and 6. All matters other than those specified in the Third Schedule.

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Matters Within The Jurisdiction Of Industrial Tribunals - 3rd Schedule, ID Act


1. Wages, including the period and mode of payment; 2. Compensatory and other allowances; 3. Hours of work and rest intervals; 4. Leave with wages and holidays; 5. Bonus, profit sharing, provident fund and gratuity; 6. Shift working otherwise than in accordance with standing orders; orders; 7. Classification by grades; 8. Rules of discipline; 9. Rationalisation; 10. Retrenchment of workmen and closure of establishment; and 11. Any other matter that may be prescribed.

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Works Committee

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Works Committee
ID Act; Sec 3 (1) In the case of any industrial establishment in which one hundred or more workmen are employed or have been employed on any day in the preceding twelve months the appropriate Government may by general or special order require the employer to constitute in the prescribed manner a Works Committee consisting of representatives of employers and workmen engaged in the establishment so however that the number of representatives of workmen on the Committee shall not be less than the number of representatives of the employer.

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Works Committee
The representatives of the workmen shall be chosen in the prescribed manner from among the workmen engaged in the establishment and in consultation with their trade union, if any, registered under the Indian Trade Unions Act, 1926 (16 of 1926).

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Works Committee
ID Act; Sec 3 (2) It shall be the duty of the Works Committee to Promote measures for securing and preserving amity and good relations between the employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavor to compose any material difference of opinion in respect of such matters.
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Works Committee
Concerned with the problems of day-to-day working Not intended to supplant or supersede the union for the purpose of collective bargaining Not entitled to consider substantial changes in the conditions of service Task is to reduce fiction that might arise between workers and management in the dayto-day working
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Settlements

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What is a Settlement?
Section 2 (p) of ID Act: "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;
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PERSONS ON WHOM SETTLEMENTS AND AWARDS ARE BINDING


Section 18 of ID Act, 1948(1) A settlement arrived at by agreement between the employer and workman otherwise than in the course of conciliation proceeding shall be binding on the parties to the agreement. (3) A settlement arrived at in the course of conciliation proceedings under this Act or an arbitration award in a case where a notification has been issued under sub-section (3A) of section 10A or an award of a Labour Court, Tribunal or National Tribunal which has become enforceable shall be binding on - (a) all parties to the industrial dispute;

(d) where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment, as the case may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part.

Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com

PERIOD OF OPERATION OF SETTLEMENTS AND AWARDS


Section 19 of ID Act, 1948(1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute. (2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of two months from the date on which a notice in writing of an intention to terminate the settlement is given by one of the parties to the other Presentation By Surendranath.A On 29 April, 2011 party or parties to the settlement. surendra.atp@gmail.com
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Collective Bargaining

Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com

Nature of Collective Bargaining


"Voluntary negotiation between employers or employers' organizations and workers organizations, with a view to the regulation of terms and conditions of employment by collective agreements.
- The ILO Convention No. 98 (1949) relating to the Right to Organize and to Bargain Collectively

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Essential Features Of Collective Bargaining


It is not equivalent to collective agreements because collective bargaining refers to the process or means, and collective agreements to the possible result, of bargaining. There may therefore be collective bargaining without a collective agreement. It is a method used by trade unions to improve the terms and conditions of employment of their members, often on the basis of equalizing them across industries. It is a method which restores the unequal bargaining position as between employer and employee.
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Essential Features Of Collective Bargaining


Where it leads to an agreement it modifies, rather than replaces, the individual contract of employment, because it does not create the employer-employee relationship. The process is bipartite, but in some developing countries the State plays a role in the form of a conciliator where disagreements occur, or may intervene more directly (e.g. by setting wage guidelines) where collective bargaining impinges on government policy. Employers have in the past used collective bargaining to reduce competitive edge based on labour costs.
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Essential Features Of Collective Bargaining Support of the labour administration authorities Both parties to bargain in good faith Well Informed managers and workers

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Pre-conditions for Successful Collective Bargaining


A pluralistic outlook
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in a pluralist society collective bargaining is recognized as a fundamental tool through which stability is maintained, while freedom of association is the sine qua non without which the interest groups in a society would be unable to function effectively. There can therefore be no meaningful collective bargaining without freedom of association accorded to both employers and workers.

Existence of freedom of association - does not necessarily mean that there would automatically be recognition of
unions for bargaining purposes. Especially in systems where there is a multiplicity of trade unions, there is a need for predetermined objective criteria operative within the industrial relations system to decide when and how a union should be recognized for collective bargaining purposes.
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com

HR Approach To IR
Proactive Caring for employees Effective Communication Employee Involvement Programs Trust Development Developing Attitudes Training for Skill Development Enhancing Competencies Programs on Family and Work Life Balance Health & Safety Career Growth Plans Compensation & Benefits
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com

Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com

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