Management of Industrial Relations Unit -1

2010

UNIT 1

Topics

- Industrial Relations - Economy and the labor force in India - Approaches to industrial relations - Industrial relations in comparative frame work - Management and employer organizations - Introduction origin and growth Trade unions - Introduction, Definition and Objectives - Growth and Structure of Trade Unions in India - Trade unions Act. 1926 and legal Framework - Union recognition - Union Problems - Non union Firms - Management of Trade union in India

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Industrial Relations
Introduction: Industrial relations pose one of the most delicate and complex problem to modern industrial society with growing prosperity and rising wages, workers have achieved a higher standard of living, they have acquired education satisfaction and greater mobility career patterns have changed. For larger sections of people have been constrained to leave their forms to become wage earners and salary earners in urban under trying condition of work. Ignorant and drenched in poverty vast masses of men, women children have migrated to a few urban areas. The organizations in which they are employed have ceased to be individually owned and have become corporate enterprises at the same time however a progressive status dominated, secondary group oriented. Universalities aspirant and sophisticated class of workers have become into being who have their own trade unions and who have their gain a bargaining power which enables them to tough fight to their employers to establish their rights in the growing industrial society as a result the govt. has stepped in and plays an important role in establishing harmonious industrial relation partly become it had itself become an employer of millions of industrial workers but mainly because it has enacted a vast body of legislation to ensure that the rights of industrial workers in private enterprise are suitably safeguarded. Besides rapid changes have taken place in the techniques and methods of production, long established jobs have disappear and new employment opportunities have been created which call for different patterns of experience and technical education labor employer relationship have therefore become more complex than they were in the past and have been given a sharp edge because of wide spread labor unrest the circumstances a clear understanding of the factors which made for which unrest & which are likely to eliminate it would be a reward experience for anyone who is interested in industrial harmony. Definition: Industrial relation refers the complex of relation between trade unions and management, but also between employers and employees. International labor organization (ILO):

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Has Dray as with the relationship between the state on the one hand and the employers and employees and organizations on in other industrial relations are a integral aspects of social relations arising out of employer employee interaction in modern industries which are regulated by state in varying degree in conjunction with organized social forces and influenced by the existing institutions. Dale Yoder: The Industrial Relations have been described as relationship between management and employees or among employees and there organization that characterize and grow out of employment.

Contents of Industrial Relation: Industrial relation do not constitute a simple relationship but or a setoff functional inter dependent complexities involving industrial economical, social, physiological, demographical, political, legal other variables and calls for inter to the study. A study of conditions server mainly the levels of wages and security of employment comes under economics. Their organization and development under History the resultant social conflicts under Sociology the attitudes of compactness the govt. and press under social physiology their cultural interaction under cultural anthropology, state policies comes under political science, legal aspects of disputes under law etc. Industrial relation do not function in vacuumed but for multi dimensional in nature and they are conditioned by 2 sets of determinants. 1) Institutional functions 2) Economic factors

1) Institutional functions: Dr. V.B Singh includes such matters has state policy, labor legislations laborers and employer organization and social institutions system of power and status, motivation influence system of industrial relation. 2) Economical factors: Economical organization capital structure including technology, the nature and composition of labor force and the sources of supply and demand in the labor market. Objectives: 3 |Page

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The primary purpose of industrial relation is to bringing above good and healthy relation between employers and employee and to facilitate production and productivity. To create an environment of cooperation between labor and management to ensure protection of their rights and to provide collective bargaining in atmosphere. `To avoid unhealthy atmosphere in industry due to go slow, strikes, lockouts, harass to establish and maintain industrial democracy to raise productivity to a higher level in an era full environment tendency to high turnover and frequent obsentism. To establish (govt. control) such plans and units at loss or is which production has to be regulated in the public interest. The object of industrial relations is to facilitate production to sale for rights of both management and labor electing the cooperation of achieves a sound harmonious and mutually beneficial between employers and employees. Importance of Industrial Relations: 1) Harmonious relations between management and employees. 2) Uninterrupted production. 3) Reduction in industrial disputes. 4) High morale. 5) New programs. 6) Mental revolution. 7) Reduced wastage. Industrial Relations comparative framework: Comparative study of Industrial Relations in all social economical legal and institutional aspects and the attitudes and approaches of principles actors. Ex: government, unions, management such studies help to understand the relative significance different strategies of Industrial Relations comparative study should focus on the key aspect relational economy, law, institutional trade economies, trade union structure personal management industrial conflicts. The research for study is 1) Globalization of business and pressure on industrial to hire universal labor standards in some critical areas. 4 |Page

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2) The need to learn and apply what is relevant from the experience of other culture, countries contents. The study of Industrial Relations in a comparative framework includes the broader approaches to the gamut of employment relationship including HRA policies and practices. The Wider social and economic aspects of society which influences Industrial Relations policies. The legal and administration framework the structure and compassion of principal actors in Industrial Relations system. The consideration of major issues and theories which explains different national pattern of Industrial Relations. Study of Comparative Industrial Relations: The Industrial Relations in one country cannot transplant to another country even the Industrial Relations of a company in one country cannot be transplanted to another country. The case of subsystem such as trade union structure, labor laws another institutional framework still study of Industrial Relations cross countries would help to understand the relative significance of carrier of varies factors such as economic and institutional strategies technology legal and institutional framework cultural factors in determining the types of Industrial Relations adopted different countries. Employment issues are critical to every country different countries have approached differently employment standards vary across countries still they are playing a key role in determining comparative advantages. Govt. and trade unions in developed countries have been keen on taking labor out of competition with a view to gusting the migration of jobs from north to south which may to serious down fall in international labor standards. What and how to compare: Comparison are purposive and the criteria are point of reference depend on the purpose when they are marked differences between countries. Ex: In loans labor goods or collective bargaining and worker participation in management it would be difficult to make meaningful comparison but it becomes even more complex when there is a gap between formal institutions or policies the different are striking even with English speaking countries consider the different in the legal status of Collective Bargaining in UK. Labor contract in USA and industrial award in Australia all these have broadly similar growths but different status in law then there is problem of terminology 5 |Page

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identical words different meaning in different languages. Compulsory arbitration has little completion in practice in Australia voluntary separation or not quit in seven situation in Indian private sectors even the higher founded it difficult to find a word which convened same meaning about contract labor across there is a danger in drawing from the study of formal institutional and the legal structure there is evident in Ronald doves study of Nissan plan in Japan and UK. And another study on auto mobile industry by LANSBURG in USA and Sweden. There are many differences found in another cases also Theoretical perspective: The lack of theoretical research is one of the result is studying Industrial Relations in comparative framework the purpose is to study Industrial in different national unit exist and came up with hypothesis verify the same. The broad theoretical prospective on Industrial Relations may be different with a particular stakeholder group like trade unions. Ex: INTUC (Indian National Trade union council) affiliated to congress party may focus on the subject with a floristic framework CITU affiliate mars test may examine the issues radical perspective due to this differences within and between the principal stakeholders in the industrial relations problem in understanding the issue from a common framework. BAMPER & CANSBURG the way in which different countries similar industrial relation can be illustrated can be refers technological change they suggest society which have a prevent ally adversarial approaches to Industrial Relations such as Austria, Britain, Canada dominated other countries the parties find it more difficult to cope with technological change in those more of a social partnership approach. Industrial Relation such as non due countries and Germany & etc. Convergence or Divergence: There is considerable debt on convergence and divergence in the field of Industrial Relations Kerret at 1960 or 1983 LCK & 1992 Whitely 2000, KATZ 2000 an overview of theoretical writings on this subject enable us to conclude that technology to be harmonizing or homogenizing factor in HRM policies and practices work, workplace. Work force and to look similar this can be best initiated by the gain similarity in HR policies and practices in the software, firms in the Silicon Valley in the US and Bangalore the silicon valley of India. Industrialization strategy and Industrial Relations: Employment relations industrial relations policies and practices in any country at any given time reflect a combination of three different logics of action namely the logic of industrial peace logic completion and the logic of employment logics and refer to sense making construct that embody a conventional 6 |Page

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understanding about what is appropriate and reasonable there by shaping actions each logic result in the development rules and institution governing employment when new logic is introduced already existing logic new rules and institutional changes. Ex: 1) The tripartite institutions create to guarantee industrial peace in Singapore is now being used to strengthen the logic combination. 2) The logics of action frame to used to social musical construction of capitalism that assume of interest between capital and labor and system stand zing role for the sake. Logic of Industrial Peace: Following the struggles for independent canonel countries (India and Malaysia) focused on a policy with the aim to limit industrial conflict in the interest on economic development in many these countries. Ex: India the government adapted economic development strategies based on the important substitution industrialization (ISF) model. These strategies curved internal and external competition through licensing regulation protection to assist local industry and help sustain industrial peace. Helps the empathy was to protect labor and labor market capital and the product market in other cases such as Singapore the government enthused industries inutile for foreign investors and its economic strategy was based explore oriented industrialization (EOI). The pursuit of economic development based on EOI (Export increased foreign direct investment market liberalization policies in any Asian countries (India and china)). Hence the focus is on promoting enterprise efficiency both in terms of labor market flexibility and labor productivity the policies and practices to promote these into Elimination of marginalization of trade unions. Exemption of export processing zones from national labor legist ration (Bangladesh) a using selective immigration and miles of ensuring abdicate flexible supply of labor (Singapore & Malaysia). Where completion is based on quality and innovation, government emphasize on skills training to improve worker confidence particularly where labor shortage.

Logic of Employment Income Production: Rapid industrialization is offering complying disruption of extended family support system and increased dependence either or both the state and the 7 |Page

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employee. Intense competition and Fligst of capital let the increased job insecurity and an employment there is a case for income security and options of job security there is a need for provision of unemployment old age benefits including tensions and skills to bridge the gap between acquired and required skills. While many European countries had created employment income protest skills during countries have neglected it and realize the need when the need was highest the capacity was the lowest when the companies are ignored. The relative strength the logic vary between countries and WAX & WANE over time with the countries response to several countries Different combinations logic strength led to different in employment relation pattern some of the combination of 1) Regulate protective (India) 2) Constrain completion (China) 3) De regulate competition (Philippines) 4) Proactive competition (Malaysia) Given the variation in the strength of different logics of action and the interplant between logics globalization expressed to the logic of competition to the complex and contingent efficient on employment practices however these effect of logic often strengths logic of employment income production and industrial peace. Globalization and Industrial Relation: The origin of globalization can be traced in 16 th century globalization mean many things too many people one measure of globalization is the economic integration across the globe in terms of free movement of capital technology production and people predictive. Globalization remains a myth during 1870 and 1914 found that 85% of production resources investment and trade conditions to be controlled country with about 15% of the population. The tried countries a group of three committed countries North America, European union and Japan Dominate the world inters of access and control over investment trade and technology the perceived benefits of globalization summarized by the national committee on labor (NCL) sustain economic as measurable group national profit is the path to human progress economic globalization achieved by various barriers to the find of goods and money by where in the world spins competition increased economic efficiency, create jobs lowest consumer prices and generally beneficial to everyone. Demerits: How ever there is growing realization that globalization not an unmixed it can be dressed it can be outcome not a prerequisite for successful growth strategy. 8 |Page

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The Process of globalization seems to be a few in a Unipolar world where it is beneficially few and hunting many It is another form of improvise. It is leading to growing inequality between the rich and poor both at the level of individual and among countries. It is destroy jobs and local communities. It is ruthless. It is jobless. It is rootless. It is fruitless (no result).

Trade Unions: The future of an individual worker to see solution to problem while discharging his duties personal and organizational to form a formal group which is identify at present are as trade union. Definition: WEBBS trade union is a continuous association of wage earners for the purpose of protecting and advancing the condition of there working place. DALE YODER trade union is long term association of employees form and maintain for specific purpose of advancing and protecting the interest of the members in the working relationship. Principles: 1) Unity is strength. 2) Equal pay for equal work for same job. 3) Security of service. Organization growth: Like other countries trade union movement of India. Co-extension with large scale industry inflowing stages. 1) Before first world war: Stage -1: The trade union movement India goes back in the year 1875 under the leadership of sorabge shepergy who started negation to drop the 9 |Page

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attention of government to the deplorable confutation of women and child labor in India industry. Stage -2: This followed the established from Bombay Bills hands association in 1890 by Mr. N.M. Lokhande a workman who organized a meeting of 10000 workers as a result of which several demands for accepted. He started a paper Dinabandu to educate the workman.

Stage-3: In 1897 amalgamated seventy of railway servants of India were establish and research under the companies act.

Stage -4: Followed by the printers union Kolkata by 1907 postal union.

2) Between the two world wars:

1) With the association of Mahatma Gandhi Ahmadabad tensile labor association from with theory of homelike then 2) Madras labor union in 1918 [First world war 1914 to 1919] [Russian refloat is 1917] 3) Swarag molonent and international labor organization same into existence 1920. 4) 1926 trade union act were passed (that is legal status to trade unions) 5) At the end of 1920 a split in trade union and all India trade union federation was formed. 6) In 1931 again it was split into community Red trade union congress (RTUC). Another union was formed that is national federation of labor and in 1935 national trade union federation was merged in AITUC. 3) During and after second world war: 1) National and trade union form (NDUF) was dissolve and merged into AITUC in 1940. 2) In another split in AITUC and Indian federation labor was formed. 10 | P a g e

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3) In 197 another split in AITUC a new organization was form that is called Indian National trade union congress since Independence. 4) In 1948 the socialist broke way from Indian National Congress and form Praia Socialist Party. 5) In 1948 Hindu Majdur pancter and international federation of labor was to be Hindu Majdur Sabha. 6) In 1941 the socialist form united trade union congress. 7) From 1953 to 1958 several effort form a to bring them out unity. 8) In the labor movement and 1962 confederation of free trade union (CFTU). 9) In 1970 communist divided CPI & CPM and found centre of Indian Trade Union (CITU). At present there are 9 central trade unions. They are i) ii) iii) iv) v) vi) vii) viii) ix) INTUC BMS HMS UTUC UTUC CITU NCO AITUC NFITU Congress BJP PSP AITUC Radical parties

Radical Party CPM old congress CPI Independent party

Characteristics: 1) Trade union is an association between workmen and workmen or between workmen and employees between employers and employees. 2) The nature of Trade Union is relatively permanent 3) A Trade unions primary objective is to secure economic benefits or its members 4) Continuous changes character of trade union.

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5) Ideologies all over the world have influence the birth and growth of trade unions. Objectives: The main objectives of a trade union is to protect of interest of its against of employees. The following of the sum of objectives 1) To secure better wages for workers keeping in view of perverting standards of living and cost of living. 2) To secure for the workers share in the prosperity of industry in the form of bonus. 3) To strive for better working conditions less working hours have with pay social security benefits and other welfare facilities. 4) To ensure stable of continuous employment for workers while fighting against retrenchment layoff dismissals etc. 5) To create class consciousness self confidence among the workers a strong compensation with employees. 6) To work for welfare and development of their members by organizational educational medical recreational and other welfare facilities for them. 7) To safe guard the interest of trade or industry concern through active participation in the management of industrial unions and also contributing in nation, socio and economic development.

Structure of trade unions in India: In India the structure of trade union consist three results. 1) Plant / shop or local. 2) The state and 3) The centre. It is generally from the central level that the ideology of the important central federation of labor in India to the state and local area. Every national or central federation in India state branches state committees from where its organization work down to the local level there are two types of organization to which trade union in India are affiliated. 1) National Federation 12 | P a g e

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2) The Federation of unions.

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1) National Federation: The INTUC (Indian National Trade Union council) consist of a central organization and affiliation unions industrial federation regional branches council working under direct control or super vision central organization the assembly of delegates and general policy or the working committees this is the structure of INTUC. INTUC Functions through its affiliated unions, assembly general council, the working committee, of the general committee, Pradesh bodies. UTUC (United Trade Union Congress): Consist of general body, general counsel and working committee and general counsel. HMC (Hindu Majdur Saba) works through general council, the working committee an affiliated organization. 2) Federation of Unions: These are combinations of various union for the purpose of gaining strength and solidarity they can resort in concerted action. When the need for such action arises without losing their individuality such federations may be local, regional state, national and international. There is little organization which is local in charges for ex: Bharatiya Kamghar sena, the labor progressive federation the national front of Indian trade unions and the coordinating committee of free trade unions many unions are affiliated to one or other types of the following central organization of workers. Besides the affiliated unions and there federations there are a large no of associations and federation which have not joint any one of the central worker unions some of them are. 1) All India Banks employee Association (AIBEA) 2) All India Banks employee Federation 3) All India Insurance Employee Association 4) All India Defense Employee Federation 5) All India Railway men federation 6) The national federation of employees 7) The national federation of postal Indian railway men

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1) Trade Union Act 1926: Definition: Executive means anybody of whatever name called to which the management of the affairs of a trade union is interested. Office bearer means any member of the executive of a trade union. Reg. Office means that office of trade union which is registered as the head office under the act. Reg. of trade union means a registrar appointed by the appropriate govt. for each state has additional or deputy registers. Trade dispute means any dispute between 1) Employers and workmen 2) Between workmen and workmen (or) Employers and Employers which is connected with the employment or terms of employment of any person. Workmen means all persons employed in trade or industry and it is immaterial that the persons employed in trade or are which in the employment of the employer with when the greater dispute arises. 2) Registration of Trade Union: a) Model of Reg. (Sec 4): Any member or members of a trade union being not less than the minimum determine in accordance with the subsection of 1A by subscribing their names to registration of a trade union. b) Application of Registration (Sec 5): Shall be sent to register accompanied by the following particulars namely the names occupation, addresses of members the name of trade union title, names, ages, address of office bureaus, a general statement of assets liability of trade union in prescribed form. c) Provision to continue in the rules (Sec 6): Every Reg trade union is required to have written rules dealing with certain matters specified in scheduled II of central trade union regulation 1932. d) Power to ask for alteration (Sec 7): The register of trade union is empowered to ask to trade union the name, it is identical with that of any union etc. he refuses also if. 14 | P a g e

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e) Registration (Sec 8):

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The registrar on being satisfied that trade union has complied with all requirements of that in regard to reg. within the period of 60 days from the date of such complaints. f) Certificate of Registration (Sec 9): The certificate of registration is issued by register on registry a trade union which shall be conclusive evidence has been duly registered under this act then certificate of registration. g) Cancelation of Registration (Sec 10): The Reg. of trade union can be cancelled or a certificate of Reg. is by the register after enquiry or verification if not the registration will be cancelled within 6 months. 1) Appeal (Sec 11): Any person aggrieved by any refusal by the for register a trade union by the with draw of cancelation of may prefer appeal within 60 days in the high court.

2) Appellate Court may: Dismiss the appeal or pass an order for registration and issue of certificate of registration or set aside the order for with drawl or cancelation. The register must complain with order of appellate court. 3) Re-Registration (Sec 11 & 11A): A trade union which has been cancelled may apply for re-registration to the register after the expiry of 6 months from the date of cancelation. 4) Incorporation of register Trade Union (Sec 13): A trade union on registration enjoys the following advantages becomes a body corporate, has perpetual success they common seal power to acquire hold property and power to contract sure be sued. 5) Duties and liabilities are a registered trade union (Sec 15): There are mainly two funds which will maintain has 1) General funs

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2) Political fund (Sec 16) Rights and privileges of Registered Trade Union (Sec 17): 1) Immunity from punishment for criminal conspiracy. 2) Immunity from civil suits and certain cases (Sec 18) 3) Immunity from Forts Act (Sec 18-ii) 4) Immunity of agreement (Sec 19) 5) The right to inspect books of trade union (sec 20) 6) Right of minors of membership of trade unions (Sec 21) 7) Disqualification office bearers (Sec 21A) 8) Change of name (Sec 23) 9) Amalgamation and dissolution of trade union (Sec 24-27) 10) 11) 12) Dissolution of registered trade union (Sec 27) Submission of returns (Sec 28) Addition of new sec under 1982 amendment act.

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a) Power of register to verify membership of trade union (Sec 28A) b) Voluntary reference of trade union to a arbitrator (Sec 28B) c) Reference of trade union dispute to register (Sec 28C) 13) Penalties and procedure (Sec 31 33).

Functions of the Trade Union: The function of trade union depends on the country they operate in ex: in a rich country where a standard of living is have and no financial issues the trade union can aim at better quality of work life and training facilities for the employees. However in a country where the level is very poor and is being exploited, trade unions have to take issues like higher wages and better working condition for the labor however all trade unions have some basic function and they can be classified as follows. 1) Militant or Intramural Functions: Under these functions trade unions fight with employers to achieve economic interest of their members it include better working condition, fare wages, job 16 | P a g e

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security, balancing work hours etc. to settle the issues under Collective Bargaining if fails opt for strikes and boycotts with ladder stages. 2) Fraternal & Extramural: Under these functions trade unions act as benefit organizations providing financial non financial assistant to their member during sickness strikes lockouts boycotts temporary removal from services and also provide medical and housing facilities. 3) Social Functions: Trade unions themselves includes in various activities to serve a social cost and accomplish there social responsibility towards different sections of the society. Ex: Educating the customers conducting anti corruption campaigns. 4) Political Functions: Under this functions trade unions associate themselves with political party, get affiliate to party and help it by enrolling members, composing during elections, collecting donations. 5) Ancillary Function: Communication of union ideology welfare activities, education and research Trade Union Function in other Countries: In USSR: In the eras while the trade unions use to be under the trade union act 1959 the following function 1) Razing of labor productivity, improvement in the quality of production, participation of planning and regulation of wage. 2) Participation of settlements of industrial regulation striving for medical facility propaganda on production techniques certain libraries tourism etc. In China: To organize workers to strengthen the labor discipline improvement in cultural standards of others to enroll members, collect funds to provide recreational facilities to get equal pay for equal work protect children and women for exploitation. Maintenance and assist in old age to the workers. In USA:

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According to first president of trade unions in the USA for perform following function. 1) Protecting the wages of works against capitalist exploitation, increasing wages, reducing hours of work providing human working condition, workers share in the national income. 2) Equality of work to all workers 3) Promoting the cause of peace and freedom in the world 4) Encouraging worker to register and vote 5) Negotiation and administration of collective agreements. 6) Participation is community wide. In UK: The British trade union commission report was mentioned the following objectives 1) Maintain and improving hours & conditions of work. 2) Providing & Improving opportunities for the advancement of works to obtain full employment 3) Extending the influence of the working cost over the policy and proposals of industry and arranging for the participation in the management.

Flander & Elegg have let down some objectives 1) Designing or improving the wages and conditions of work 2) Raising the status of the worker has a citizen of industry and of society and 3) Extending the area of social controlee the nations academic life and participations in the control Structure of Trade union: On the basis of Membership: The structure of trade unions in India where is from organization to organization but how ever Indian labor is represented by many different kinds of unions.

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CRAFT Union:

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A craft union is one whose members do one type of work after using specialized skills and training. It is horizontal in character as its members belong to a single process or group of process there enjoy strong bargaining process has its members. Possess specialized skills that cant be easily replaced in case of the strike. Industrial Union: An industrial union is one that includes many persons working in the same industry regardless of job held vertical in nature as it consists of all types of works in an industry it also enjoys strong bargaining power as it consist of skilled and unskilled workers the employer may find it easy to negotiate with one union covertly all workers rather than deal with a no of craft union in place of a dispute. General Union: This type of union consist of workers employs in different industry and crafts within a particular city or region in case of workers all are equal and there is no difference between skilled and unskilled workers there is convenience in negotiation as the employer need not bargain with so many splinted groups because part of a huge crowd and the interest of important group may not be represented properly. Federation: These are national level entitles to which plant level unions craft unions industrial workers and general unions are affiliated these are apex bodies coordinating the affairs of various unions in there fold. Purpose: 1) Reformist Unions: These unions are those which aim at preservation of that capitalist society and the maintenance of usual employer employee relationship elimination of competitive system of production they neither seek comprehensive change nor wish to destroy the existing social economical are political structure of the state.

The reformist unions have been sub divided by HOXIE they are a) Business unionism b) Uplift unionism

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a) Business Unionism: This form a labor cooperation in which employees enter a successful business relationship with employers they have been generally craft conscious rather that craft Claus conscious they favor voluntary arbitrate deprecate stripe and political option. b) Uplift (or) Friendly Unionism: Is idealistic in nature and aspect to eliminate the moral intellectual social life of worker and advocates idealistic plans for social regeneration.

2) Revolutionary Unions: These unions aim at destroying the present structure completely and replacing it with new and different institutions according to ideals that regarded as preferable it is generally seeks to destroy capitalist industry to abolish the wage system and private property to put an end to society and private property to put an end to society based primary upon competition and individual and to substitute some other system generally socialist and communist. Again it is also 2 types a) Anarchist Unions b) Political Unions

a) Anarchist Unions: Anarchist unions are those which try to destroy the existing economic system by revolutionary means b) Political Unions: Political unions are those which gain power through political actions the apartment of loss eliminating the power of capital and capitalistic, redistributing wealth and give it effective power to workers.

Management of Trade unions in INDIA: Every registered trade union in India is supposed to have a constitution of its own endorsed by its members a union constitution contain the guiding principles that firm the basis of its existence and functioning it prescribes a permanent framework of the structure governance and administration of trade unions. It is also assign different constitutions of union and there respect the powers duties and responsibilities. 20 | P a g e

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Essential elements of a union: 1) Preamble 2) Name 3) Declaration of principle 4) Membership right and obligation 5) General assembly delegate conference 6) Election at all levels 7) Duties and responsibilities of officials 8) Executive committee 9) Standing committee 10) 11) 12) 13) Meeting rules Finance oblique funds Collection of donations

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Benefits to members (Scholarship, fellowship, sty fund, death benefits)

Effective Trade union: An effective trade union is considered effective if it is able to: 1) Enroll all works in the industry or organization. 2) Ensure job, income social security carrier progress 3) Improve the productivity of eEnterprise 4) Enhance the standard of living quality work life of its members 5) Meet expectations of the member in selling their intrest.

Internal challenges (or) Problems:

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1) Low membership or low member density labor bureau, union labor book which publish all registered trade unions who have submitted the enrollment list which membership otherwise there membership will be cancelled. 2) Representation at present there 5 national unions they are 1) AICTU 2) CITU 3) HMS 4) BMS 5) INTUC If it has at least 50000 or more members and at least few states will be merged with govt. Global Competition: Cost cutting and value addition neo liberal policies focusing more on the profit than people net through completion is visually lead to become inefficient. Rapid changes in Technology: In trade unions rapid changes in economic and resultant feminine of drastic declaim in employment, institution and workers loss of contract over jobs in a major challenge for trade unions. Shifting attitude of Government: There is a marked shift in state policies worldwide from being labor friendly to investor friendly where govt. or union friendly union grows when govt. are I neutral unions and unionism will stag met, when they adopt anti union policy union and unionism declare. Managerial strategies and HR policies: When the state is neutral or anti labor union power is weakness in the past employees could keep there jobs even if the enterprise become sick because sick private enterprises were privatized and still public once work denationalized with some assurance against retain ship promised on maintenance service condition there is no longer so and modern technologies as reduced labor intensity as also in many cases the critical mass for collective action transforming a large no blue collar jobs into zones white collar ones and shifts control over work from workers to management even if it has may unskilled workers redundant and skill workers prosperous with increased wages. 22 | P a g e

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Association of their rights by the community and consumers:

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Unlike in the past there is growing trend among consumers to unite and fight for the right with the support of the community through public interest litigation when consumers and the common unity are adversely affected by activity of employers and the workers and there organization the right consumers and community in variety representative of greater aggregation interims of no prevail recent judicial rulings by consumer courts, high court, supreme court on issue such as the right to strike of govt. employees environment production been banned etc. confirms this. Leadership organization issues: Union leadership issues: The readership provides the direction and course of particular union the traders task is to make the union effective by improving the term & conditions of employment of the works & also by being concerned with the liability of enterprise it depends upon the individuals. Changing work force Demographics: Grouping unionism of white collar professional employers has become a predominant trend in India and close when in recent decades the genesis of unionize of white collar employers in India can be trend to the end of 2 nd world war even though certain attempts to unionize work evident earlier in the post over decades a boost in whiter corner union activities was with when the employees are central govt. departments railways postal telegraph, defense banking have started organization themselves into union now its fold was open to college university teachers, engineers doctors etc. managerial association is also there. Internal Democracy: Lack of internal democracy has been one of the weaknesses of Trade union In addition the voice and stake of members is minted additionally by linguistic and cultural difference. Declining union power and influence: In India the declining of Trade union power started in the late 1970 an more sharp during 1990 an after such declines cannot be attributed to union density which in any case never been high in India. Union Recognition: The recognition of Trade union may mean much or nothing and instead that unions consists of a minority of employees is no adequate reason for withholding recognition, similarly the existence of two or more rival unions is not itself a 23 | P a g e

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sufficient ground for refusing to recognize any all of the unity of all employer with common interest is a matter for then and for the employees prior to 1946 no provision existed in any state regarding the grant of recognition of Trade Union It was Bombay Industrial Relation act -1946 which provided for the recognition of representative unions I the local area the act also applied to Gujarat, Madhya Pradesh and Rajasthan in Maharashtra in 1971 it come into enforcement. Recognition under code of discipline: The following are the rules pertains to recognition of a Trade Union 1) Where there is more than one union a union claiming recognize should have been functioning for at least 1 year. 2) The membership of a union should cover at least 15% of the workers paid through subscription 3) A union with 25% of the workers recognized as a representation union in local area. 4) A union has been recognized their should be no change in their ranks of artisans who tendered position for a period of 2 yrs. 5) Where there are several unions in as industry the largest membership should be recognized. 6) A representative union for an industry in area should have a right to represent workers make the establishment in the industry. 7) Only those unions which observe the code of discipline should be entitled to recognition.

Recommendations of National commits on of labor in regard recognition: 1) It would be desirable to make recognition compulsory under a certain law where 100 or more workers are working. 2) The proposed national by state Industrial Relations commission will have the power to decide the representative character of a union. 3) The recognized union should be statutorily given certain exclusive rights and facilities such as right of sole representatives entering into collective agreement. 4) The minority unions should be allowed only the right to respect the call of dismissal and discharge of their members before the labor court. 24 | P a g e

Management of Industrial Relations Unit -1

Trade Union Problems:

2010

Through Trade union have been developed in India they face several problems such as 1) Union growth of unionism: It is a major problem for Trade Union in India most of Trade Union activities take place in large scale industrial sections involving man labor and in the industrial centers of this states they are restricted to the organized and no agricultural sections. Trade union activities are satisfactory in industries like textiles, printing press, utility services, transport and communication, small scale industries etc. 2) Small size of unions: According to Trade union act 1926 are seven workers can form a registered union the Trade Unions have ignored the no of women in the work force and restricted in union activities base for formation of a factory or unit therefore a no of unions are formed the process of unionization started with the big employees and slowly spread to the smaller employees the avgas membership has declined where multiplicity of unions existed formal. 3) Financial Weakness: A large part of income of Trade Unions comprises of the membership for the annual income of the Trade unions very slow in India members do not show commitment only when a dispute arises multiplicity unions are charging low fee. 4) Multiplicity of unions: There are 13 central Trade Unions in India Ex: INTUC, AITUC, CITU, UTUC others all India bank employees associate on national federation of Indian railway men etc. there are thousands of other small unions in the center federations are a few of example there is a major problem by this unions the reason is political interference. 5) Internal Rivalry: Every industry in India has parallel unions. Ex: Indian railways federation, Indian national federation of railways are two parallel unions of Indian railways politics in gaining union ship, the self interest of members are some of the other reasons for intra rivalry. 6) Non-Union firms: Means union less firms in generally we can say they are NGOs all though the no. of union less manufacturing enterprises in organized industry in India is limited. The creation of four of the 6 unions less enterprises with 1980s ex: Enfield electronics, Wipro, ponds, modi Xerox, nirma and Anglo French textiles. All by design some employees can and do choose to operate union less factory it is not worthy in profits Anglo French textile is a public enterprise. Classification of non-union firms:

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Management of Industrial Relations Unit -1

2010

Non union firms has became more common. Guest and HOQUE proposed a way of classifying new non union establishments which recognizes their diversity the classification of non union firms was based on 2 dimensions. 1) Whether or not firms had a human service strategy. 2) Was the nature of this human resource policies and practices necessary this dimension? They fixed four types of non union establishments. a) Good establishments: This had clear HR strategies and extensive use of a range of HRM practices. The reflected high involvement and high commitment approaches could be classified as full utilization, high involvement model of non human. b) Lucky establishments: Though this establishments did not have clear HRM strategies they still appeared to high adopted a large no of innovative HRM policies more by loch than by judgment but such establishments might have stumbled upon best HRM practices by guidance from others, copying others are following their patience. c) Bad Establishments: This has no HRM policies, low updates of HRM practices and represented the bad phase of non unionism. d) Ugly establishments: These establishments had clear strategies but made little use of HRM practices. In that they provided minimum levels of workers rights appeared to the bee environment in which to work and were perceived as an efficiency driven model of non unionism. All this strategies and tactics except personal research are self explanatory. Personal Research: The purpose of personal research is to identify the HR problems at an early date so that remedial action may be taken before the problems gets magnified ignored problems stoke fire and unionization is thought of a remedy to extinguish the five commander personal research are: 1) Wage surveys. 2) Various recruitment processes. 3) Test Valuation. 4) Training efforts. 5) Supervisors effectiveness. 6) Record labor settlement.

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7) Job analysis, performance appraisal valuation. 8) Turnover analysis. 9) Customers complaint survey. Managing employee relations in non union firms:

2010

In non union firms there are 2 methods by which the employees and employers relations may be affected they are a) Individualism b) Collectivism Types of employer behavior and practice (non union approach): The following have been classified type of employers behavior and practice they are. 1) Fear Staff (union suppression): Blunted individualization of worker with the objective of fear. 2) Sweet staff: Union sub situation with better terms and conditions to resolve any grievance. 3) Evil staff (Ideological opposition to hum berg): unions are used under the beds will be descriptive to the contract performance. 4) Fatal Staff (Blunt refusal): Refusal to manage a man or to bargain in good faith. 5) Awkward staff (Stone walking): Effectively employing delay tactics. 6) TAME staff: damage lenient action. 7) Harm staff: (By passing) communication channels. Employer Associations: In India and in many other countries employers organizations constitute and imp segment in the industrial relations system. They influenced labor policy by participating in tripartite institutions and otherwise lobbying for favorable policy, coordinate employers strategy, provide technical. Economic and legal service and at times participate in collective bargaining negotiations employers associations are very old organization the 1st chamber of commerce was established in 1959 in France there are about 10000 such organizations today world wide the Trade Unions act 1926recognised employers organization along with workers union. The 27 | P a g e voice often through specific non union

Management of Industrial Relations Unit -1

2010

definition for a Trade union means and includes employers association. The 1 st organization to come into existence in India are Bombay mill owners association, Bengal mill owners association and Ahmadabad mill owners association of industrial employees (AIOIE_ and 1941 employers federation of India were established. One of the major objectives f employers organization was to gain representation in international bodies like ILO (International Labor Organization) in the post independence period the three major federations that comes into existence are all India employers Organization Delhi; Employers federation of India Bombay; and Standing Conference of public enterprises Calcutta. These are found loosely into an organization called counsel of Indian employers to law made in the government. Small and medium scale enterprises are organized into an organization called all India manufacturing association. This also has representation in the ILO membership. These associations were earlier not very high although it has improved lately by the year 2000 all India employees organization has less than 60 and employees federation of India about 200 scopes how ever has membership of 95% of central public undertakings. The main functions of employers organization is to protect and promote the interest of its members. These functions are centered on economic, commercial, physical and labor matters relating to policy as well as factors. They keep their members inform of all new labor registration, changes and labor policy imp decisions on labor matters. They alive their affiliates on complex legal provisions and procedures. They organize seminars, conferences and training programs at different levels to discuss imp issues in labor management relations. They represent on various comities, wage boards etc. setup by the govt. time to time and place before this bodies a point of view of the employees. They discharge certain social responsibilities towards the country and society by participating in national plans for economic development. Union does not need to worry about solidarity among employees. But employers tend to feel threatened by solidarity among unions. Notwithstanding the fragmentation with in unions. Problem is that employers association finding it hard Effective Open Effective 1st to grapple with some of these members. Engineering trouble in competing in the personal Communicati time hope of deriving and new advantage. research on supervisors Strategies and Tacts for remaining union free: Effective personal planning recruitment and selection 28 Effective |Page training and development al REMAINING UNION FREE A Heartily and safe working environme nt Effective employer employee relations

Effective Remuneratio n

Management of Industrial Relations Unit -1

2010

Managers are therefore developed long term strategies and effective tactics to prevent. Unionization of an organization the most important thing to know that all these strategies and tactics except personal research are self explanatory.

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