UNIT-I: INDUSTRIAL RELATIONS

INDUSTRIAL RELATIONS
Introduction:
The term industrial relations refer to industry and relations.
Industry means any productive activity in which an individual is engaged. Relations mean the
relations that exist in the industry between the employer and workmen.
Definitions:
The term industrial relations explain the relationship between employees and management that stems
directly or indirectly from union employer relationship.
V.AGNIHOTHRI.
I.R. may be referred to as an art of living together for the purpose of production
J.HENRY RICHARDSON
The concept of Industrial Relations has been extended to denote the relations of the state with the
employer, worker and their organisations.
The subject therefore, includes individual relations and joint consultations between employers and
work people at their work place. Collective relations between employers and their organizations and
trade unions and the part played by the STATE in regulating these relations.
ENCYCLOPAEDICA OF BRITANNICA
The following points emerge from I.R.:
1. Industrial relations are the actions of the employment relationship.
2. This relationship lays emphasis need for accommodation by which the parties involved to develop
skills and methods of adjusting and cooperating with each other.
3. Every industrial relation system creates a complex of rules and regulations to govern the work
place work community with main purpose of achieving and maintaining harmonious relations
between labour and management by solving their problems through collective bargaining.
4. The Govt./State evolves, influences and shapes industrial relations with the help of laws, rules
and regulations, awards of courts, customs and traditions as well as implementation of policies
and interference through judicial machinery
Scope and Aspects of Industrial Relations:
An industry is a social world in miniature where associations of variety of people like employers,
executives and supervisory personnel and workmen interact and create a relationship known as
industrial relations. These associations of people not only influence labour relations but also the
social, economic, political and moral lives of the whole community. In other words, industrial life
creates a series of social relationship, which regulate the relation and working of a wide variety of
people either directly or indirectly or both.
1

(i) Labour Relations:

I.e., relations between union and management (also known as labour management relations.
(Ii) Employer-Employee Relations:
I.e., relations between management and employees.
(iii) Group Relations:
I.e., relations between various groups of workmen.
(iv) Community or Public Relations:
I.e., relation between industry and society.
The last two, generally fall under purview of industrial relations- Sociology- Further, the two terms,
labour-mgt relations and employee relations are synonymously uses.
The Main Aspects of Industrial Relations:
1) Development of healthy labour - management relations.
2) Maintenance of industrial peace.
3) Development of Industrial Democracy.
1. Development of healthy labour management relations:
The existence of strong well organized democratic and responsible Trade Unions and associations of
employees.
Job Security, workers participation in management.
Give a dignified role to a labour.
These associations also tend to create vantage grounds for negotiation, consultations and discussions
on mutual basis, which ultimately lead to good Industrial Relation.
The spirit of collective bargaining and willingness to take recourse to voluntary arbitration. The C.B.
recognizes equality of status between two conflicting groups and creating an atmosphere of trust and
goodwill in the matters of common interest to both industry and labour.
"Welfare work', whether statutory or non-statutory provided by the state trade unions and employers
create, maintain and improve labour management relations and thereby contribute to industrial peace.
2. Maintenance of Industrial Peace:
The industrial peace can be nurtured through the following means:
(a) Machinery should be set up for the prevention of settlement and industrial disputes:
Trade Union Act, Industrial Disputes Act, Industrial Employment (standing industrial orders) Act,
W.C., J.M.C., Conciliation Officer, Board, Labour Courts, Industrial Tribunal, National Tribunals and
provisions for Voluntary Arbitration.
(b) The Govt. should have the power to refer disputes to adjudication.
(c) The provision of the Bipartite and Tripartite forums for the settlement of disputes:
These forums act on the basis of the code of discipline in industry code of conduct, code of
efficiency, welfare and model standing orders help to create satisfaction among and employees.
3. Development of Industrial Democracy:
(a) Establishment of the shop councils and Joint Management Councils at the floor and plant level.
(b) Recognition of Human Rights in industry.
2

(c) Increase in Labour Productivity.

(d) The availability of proper work environments.
Components of Industrial Relations System or 3 actors of IR:
1) Workers and their organizations: - Socialist countries - state agents - workers union - sectional
bargainers - calm unions - white color class - E.union bargainers.
2) The Management: Exploitative authoritative system: Benevolent authoritative system: Consultative management: Participative style: 3) The Government: - In this system, government acts as a regulator and judge. Further not only the
central government but also the government at the state and regional level do influence the system
of industrial relations.
Laissez Faire (19th century)
I.L.O.
I.L.C
Standing labour committee.
Factors affecting Industrial Relations
The IR system of an organisation influenced by a variety of factors.
1) Institutional Factors :- State policy, labour laws, collective bargaining agreement, labour unions,
employer organisations/Federation.
2) Economic Factors: - Economic organization (socialist, communist, capitalist) type of ownership,
individual company whether domestic or MNE, Government, cooperative ownership, nature and
composition of workforce, disparity between groups, levels of unemployment, economic cycle
will influence IR.
3) Social Status: - Social group like joint family or caste, social values, norms, social status (high or
low) ' have and have-not'.
4) Technological: - Work method, type of technology, technology change and R&D.
5) Psychological: - Attitude, perception, motivation, and mass-machine interface.
6) Political factors: - Political institutions, system of government, political philosophy, attitude of
government.
7) Enterprise related factors: - Style of mgt., prevailing in the enterprise, organizational climate, and
adaptability to change.
8) Global Factors: - International relations, global conflict, economic political ideologies, global
culture and international trade.
Trade Union
Introduction
The trade union came into an existence as an agent of workers and working class at large. It
performed and still it performs two functions. One to work for the redistribution of some the nations
wealth by raising wages and earning of its members. This enables the workers at their own to
improve their living standard and is the process become better equipped to deal with unfavorable
economic conditions.
3

The second objective of Trade union is however more directly related to their security role,
through various types of union welfare fund and later through pressure for employees welfare
Programme and governmental social security measures. The unions aim to obtain greater benefit for
its members.
About four decades ago many employers considered union as something undesirable unwanted
item. Today unions are accepted as a part of industrial relations system. They participate in decisionmaking on issues relating to welfare and well being of working community. Some unions discus on
production norms technical change, introduction of new problems.
Trade union:
The classic definition of trade union was given by Sidney and webb that it is a continuous
association of wage earners for the purpose of maintaining and improving the conditions of their
working lives.
Indian trade union Act 1926 defines as A Trade union is any combination, whether
temporary or permanent, formed primarily for the purpose of regulating the relations between
workmen employers or between workmen and workmen or between employers and employers or for
imposing restrictive conditions on the conduct of any trade or business and includes any federation of
two or more trade unions.
Problems of Trade Unions;
Prologue:
India has the largest numbers of trade unions for a single country, but they have developed very
slowly. In the beginning India employers like the British capitalists in India disliked unions. Due to
mahatma Gandhi, B.P. Wadia efforts produced some results.
(1) Un Even Growth
The trade unionism has not influenced a variety of industries. Plantations coal mines, textile,
transport commerce are the main organized industries where the unionism has made progress.
Unionization varies from industry.
It may be noted that the trade union activities are mostly in the large-scale industry sector
that too manual labour. Much labour problems have cropped up in the cotton mills, causing
some of the most destructive strikes. Further the leaders provided bulk labour tenders
loknomde, B.P.Wadica, G.D. Ambedkar.
Another important feature of trade unionism is that it is mainly concentrated in few states
in bigger industrial centers in those states due to concentration of certain industries in
particular areas, Bombay, surat, indore, kempur, kerala, westbengal, T.N and assam.
The trade union development among white-collar workers and lower management cadres
is even more unsatisfactory. Hardly any trade union activity exists in small enterprises,
domestic servants and agriculture labour.
4

The history of Indian labour movement is to a great story of labour is the organized
industry and there has been no movement amongst the vast area of labour in agriculture
sector.
The trade unions in India could both develop into effective voluntary organizations for
certain reasons.
(A) The unrealistic policies of the Govt, irrelevant notions of morality.
(B) More idealism about goals
(C) The Govt, set more ambitious goals, schemes like workers education, and workers in
management etc, without creating an atmosphere for its applicability.
Inspite of their slow growth trade unions have brought about some economic, political
and social changes for the better conditions of the workers.
Socially, they have emerged as a unique force of national integration in spite of the
hindrances of illiteracy rural back ground of workers and their migratory character, on
the basis of communication, casterism.
In fact a century old trade union movement is suffering problems like small size, poor
finance outside leadership, domination of political parties inter-union rivalry, multiciplity
of unions.
(2) Small Size of Unions:
Though trade unions are of various sizes including both small and local associations and large
ones with thousand members like that of the labour textile association of Ahmadabad , yet
most of them are characterized by their small size and small membership.
The small size of trade unions is due to various factors namely
(i)

The fact that any seven workers may form a union under trade union act of 1926 and get it
registered, so the large number of small unions has grown.

(ii)

The women workers who form a sustained part of workforce are not allowed joining trade
unions on account of various reasons.

(iii)

The rivalry among the leaders and the central organizations has resulted in a multiplicity
of unions, thereby reducing membership.

(iv)

The unionization in India started with the big employers and gradually spread to small
employers. Though the number of unions and union membership is increasing however
their average membership has been declining.

Because of their small size, unions suffer from lack of adjucate funds and find it difficult to
engage the services of experts to advice them in time of need. Further they cannot face the
challenges of employers for a long because of their weak bargaining power.
5

Again the small degree of unionization, their helplessness and makes them to depend on
political parties or on such outside personalities who generally favor the employers.
(3) Financial Weakness:
The trade union suffers from financial weakness the average yearly income of a union has
been rather low and inadequate.
The average income of the trade unions has been low not because of the poverty of the
workers but due to certain other factors.
(i)
(ii)
(iii)

the workers are apathetic towards trade unions and do not want to contribute a part of
their hard-earned money.
Members, instead of making regular payments to the unions make ad-hoc payments if
a dispute arises which shows lack of commitment to the union.
Due to multiciplity of unions, unions keep low subscription fee to increase the
membership.

The primary source of income of a trade union is from membership fee poor financial
position adversely affects their working. They cannot undertake any welfare activities for
their members, now they can successfully launch a strike. Due to lack of finance, unions
cannot make use of competent and adequate salaried staff. Honorary workers cannot
safeguard the interest of individual workers and they cannot devote full-time attention to it.
So paid union employees need to be employed to improve the situation.
To improve the financial conditions of unions, the N.C.L recommended that the minimum
subscription should be raised to one rupee per month. It however, did not favor the existing
arrangement. The best way of improving the financial condition of the unions would be to
eliminate trade union rivalry by strictly adhering to the principle of one union is on
industry.
(4) Multiciplity of Unions:
The multiciplity of rival unions and the inter-union rivalry are an important features and one
of the great weaknesses of the Indian trade union movement. The multiple unions are mainly
the result of political outsiders wanting to establish unions of their own with a view to
increasing their political influence. The existence of different conflicting or rival
organizations, with divergent political views, is largely responsible for the inadequate and
unhealthy growth of the movement.
Within a single organization, one comes across a number of groups comprising insiders and
outsiders, new comers and old timers, northern and southern, moderates and radical high and
low caste people.
Inter union rivalry undermines the strength and solidarity of the workers in many ways.
6

 The multiplication of trade unions at plant level does not enjoy the confidence of the
most of the employees.
Most of the trade unions.
Importance of industrial relations (need for ir)
Introduction:
1.
2.
3.
4.

Industrial relations patterns, organized sector and its impact on unorganized sector.
Unions are important force in the Indian political system.
Varying patterns of industrial relations.
Status difference in the workers of public and private sector.

For more information refer Mamoria & Mamoria.

The Code of Discipline (conduct)
Evolution of the Code
The 15th Indian labour conference held in July 1957 laid down general principles

There should be no lockout or strike without notice.

No unilateral action should be taken in connection with any industrial matter.
There should be no recourse to go-slow tactics.
No deliberate damage should be caused to plant and machinery or property.
Acts of violence, intimidation, coercion, instigation should not be resorted to
The existing machinery should be properly utilized
Awards and agreements should be speedily implemented
Any agreement which disturbs cordial industrial relations should be avoided
These principles were accepted with modification and code of conduct or discipline was
evolved. It came into four central national labour organizations INTUC, AITUC, HMS, and
UTUC on behalf of the workers and by the employers federations of India.

Objectives of Code of Conduct

Aim of the code is to establish cordial relations between management and workers on
voluntary basis to promote industrial harmony.
To ensure that employers and employees recognizes each others rights and obligations.
To constructive cooperation between the parties concerned at all levels.
To secure settlement of disputes and grievances by negotiation, conciliation and
voluntary arbitration.
To eliminate all sorts of coercion, intimidation and violence in industrial relations.
To avoid work stoppage
To facilitate the free growth of trade unions and
7

 To maintain discipline in industry.

Main Features of the Code

The code of discipline is applicable to both public and private sector units. The important
features of code of conduct are as follows,
1. it prohibits strikes and lockouts without prior notice and also intimidation,
victimization and its adoption of go slow tactics by workers.
2. No one sided (unilateral) action can be taken by either party in any industrial
relation matter.
3. All disputes are to be settled through the existing machinery provided for this
purpose by the Govt.,
4. The employer neither will nor increases the workload without prior agreement
with workers.
5. A common grievance procedure for the settlement of grievances of the workers
after full investigation has been provided for
6. The employers will provide all facilities for the unfettered growth of trade
unions.
7. Prompt action will be taken against those officers whose conduct provokes
indiscipline among the workers.
8. The workers will not indulge in any trade union activity during the working hours.
They will not engage in any activity or demonstration which is no peaceful.
9. the workers will implement their part of the awards and settlements promptly and
will take action against those office bearers of the union who has violated the code.
10. the unions will discourage negligence of duty, careless operations, and damage to
property, insubordination and disturbance in normal productive activities. They
will discourage unfair labour practices and will not engage in rowdy
demonstrations.
Causes of poor Industrial Relations:
Industrial relations scene is not satisfactory and it is visible from frequent strikes, gherao,
lockout and other forms of industrial disputes. Several economic, social, psychological,
technological, and political factors are responsible for poor industrial relations.
1. Economic Causes:
Poor wages and poor working conditions are the main reasons for unhealthy relations
among management and labour. Unauthorized deductions from wages, lack of fringe benefits,
absence of promotional opportunities, dissatisfaction with job evolution and performance
appraisal methods, Faculty incentive schemes are other economic causes. When employers
deny equitable and fair remuneration and good working and living conditions to the working
class, trade unions agitate and industrial peace is disturbed .Inadequate infrastructural
facilities, worn-out plant and machinery poor layout, unsatisfactory maintenance and other
physical and technical causes also contribute to industrial conflict.
8

2. Organisational causes:
Faculty communication system, dilution of supervision and command, nonrecognition of trade unions, unfair practices violation of collective agreements and standing
orders and labour laws are the Organisational causes of poor relations in industry.
3. Social:
Uninteresting nature of work is the main social cause. Factory system and specialization
have made worker a subordinate to the machine. Worker has lost scene of pride and
satisfaction in the job. Tension and conflict in society, break up of joint family system,
growing intolerance have also led to poor industrial relations. Dissatisfaction with job and
personal life cultimates into Industrial conflicts.
4. Psychological Causes:
Lack of job security, poor Organisational culture, non-recognition of merit and
performance, authoritative administration and poor interpersonal relations are the
psychological reasons for unsatisfactory employer-employee relations.
5. Political Cause:
Political nature of trade unions, multiple unions and inter-union rivalry weaken trade
union movement. In the absence of Strong and responsible trade unions, collective bargaining
becomes ineffective. The unions status is reduced to a mere strikes committee. The outsiders
who unions leader become by making wild promises to workers make excessive demands on
employers. When employers do not accept their demands conflicts arise spoiling the industrial
relations climate in the country.
Poor industrial relations are harmful for all. Industrial conflicts reduce productivity of
labour. Quantity and quality of work suffer and costs rise. Industrial discipline breaks down
and labour turnover and absenteeism increase. Working class suffers due to industrial decline.
They find it very difficult to get improved wages and working conditions. Many of them loose
jobs and promotions. They get frustrated and demoralized. Employees face restriction to
change in technology and Organisational structure. Industry, Economy and society and
interdependent. Therefore, Industrial strife has multiplier effect on the economy and society.
Social tensions and law and order problems, drinking and gambling and other social evils to
rise in an atmosphere of poor industrial relations.
Suggestions to improve industrial Relations:
The fundamental principles or requirements for sound industrial relations are given below:
1. Sound Personnel Policies:
Policies and procedures concerning the compensation, transfer, promotion, etc. of
employees should be fair and transparent. All policies and rules relating to industrial relations
should be clear to everybody in the enterprise and to the union leaders. Top management must
support them and set an example for other managers. Practices and procedures should be
developed to put personnel policies into practice. Sound policies and rules are of little help
unless they executed objectively and equitably.
2. Constructive Attitudes:
Both management and trade unions should adopt Positive attitudes towards each other.
Management must recognize union as the spokesmen of workers grievances and as
custodians of their interests. The employer should accept workers as equal partners in a joint
endeavor, unions and workers, on their part, must recognize and accept the rights of
employers.
3. Collective Bargaining:
9

Employers organizations as well as trade unions should be able and willing to deal with
mutual problems freely and responsibly. Both should accept collective bargaining as the
cornerstone of good industrial relations. A genuine desire on the part of employers to bargain
with employees on the basis of equality is necessary. Governmental agencies should assist the
two sides in public interest. Problem centered negotiations rather than a legalistic approach is
desired. Widespread union management consultation and information sharing are helpful.
4. Participative Management:
Employers should associate workers and unions in the formulation and implementation of
personnel policies and practices. Management should convince workers of the integrity and
sincerity of the company. Management should not interfere in the internal affairs of the
unions. Instead of trying to win workers loyalty away from unions management should
encourage right type of union leadership. A strong union is an assert to the employer.
5. Responsible Unions:
Unions should adopt a responsible rather than political approach to industrial relations.
Unions should accept private ownership and operations of industry. They must recognize that
the welfare of workers depends on the successful operations of industry. A strong democratic
and responsible union alone can ensure that workers honor the agreement with their employer.
6. Employee welfare:
Employee should recognize the need for the welfare of workers. They must ensure
reasonable wages, Satisfactory working conditions, opportunities for training and
development, and other necessary facilities for labour. A Genuine concern for the welfare and
betterment of working class is necessary.
7. Grievance Procedure:
A well-established and properly administered system for the timely and satisfactory
redressal of employees grievances can be very helpful in improving industrial relations. It
provides an outlet for tensions and frustrations of workers. Similarly a suggestion scheme will
help to satisfy the creative urge of workers. A code of discipline if properly adhered to by both
the parties will help to avoid unilateral and violent actions on either side.
Trade union Movement in India
Trade union movement in India started quite late. Bombay mill hands association founded in
1890 by Shri. N.M.Lokhanday, a factory worker, is said to de the first trade union in India. In
subsequent years a numbers of unions were formed such as the Amalgamated Society of Railway
Servants of India and Burma (1897), The printers union (1905), The Bombay union (1907), the
kamgar Hitwardhak sabha (1909), and the social service league (1910).
These unions were loose and sectarian organization set up by social reformers rather than by
workers. They were friendly societies or welfare bodies.
There was a remarkable growth in labour movement between 1904 and 1917 and several
strikes were organized. But trade unions remained confined by and large to the upper ranks and
educated sections of the working class. Political developments like the partition of Bengal and
swadeshi movement helped the trade union movement. However, the unions were largely local and
loose dependent on external philanthropy.
At the end of world war-I, growing economic hardships, the Russians Revolution, the
establishment of the ILO and other factors gave Philip to trade union movement. As a result, many
unions were formed. The Textile Labour Association (1920), The All India Trade Union
Congress(AITUC) (1920), Indian Seamens Union, Railways Workers Union, The Indian Colliery
10

Employees Association, The Madras Textile Union Were Some Of The Unions. The all India trade
unions congress a loose federation was given authority for selecting delegates to represent Indian
labour at the ILO Conference. Workers unions sprang up in jute, cotton, textiles, railways and port
industries all over the country. The Trade Unions Act 1926 gave legal status to registered trade unions
and conferred on them special privileges. Therefore, this law was an important landmark in the
history of trade union movement in India. The Great Economic Depression, failure of the Bombay
Textile strike of 1929 and Royal Commission on labour(1929) brought a lull in trade union activity.
Communists acquired a hold in the working class movement and the AITUC emerged as the sole
representative of the working class in India. Several major strikes were organized. A section of the
leaders separated and formed the Red Trade Unions Congress (RTUC). The all Indian Railway mens
Federation emerged another major body of workers. The labour movement remained divided.
Thirties was a period of unity in trade union movement. The National Federation of
Labour was formed in 1933 to facilitate unity. The AITUF and the Railway unions amalgamated to
form the National Trade Unions Federation (NTUF). The RTUC merged into the AITUC. In 1940
the NTUF merged with the AITUC. In 1941 radicals in the AITUC formed a new central federation
called Indian Federation of Labour.
After Independence, there was speedy growth in trade unions due to
support from both the Government and the Society at large. However, several splits occurred in
central organizations of labour. In 1947, Moderates in the AITUC separated and formed the Indian
National Trade Union Congress (INTUC). Hindustan Mazdoor sevak sangh (HMSS) and Ahmedabad
Textile Labour Association (ATLA) became very active. Socialists broke away from INTUC and
formed the Hindustan Mazdoor Panchayat (HMP). HMP and Indian Federation of labour came
together and formed the Hind Mazdoor Sabha (HMS). A section of HMS later on formed the United
Trade Union Congress (UTUC) in 1949. A few unions recorded forms the HMS in 1959 and
established the Hind Mazdoor Panchayat. In 1962, a new organization called the Confederation of
Free Trade Unions (NCCTU) to provide a common platform for trade union activities. The basic aim
was to isolate the CITU which retaliated by setting up a United Council Of Trade Unions (UCTC).
At present there are about 48000 registered trade unions and ten central labour organizations
in India. Some important features of these unions are given below:
(i)
Workers in India are unionized mainly on the basis of plant (in- dustrial unions) rather
than on the basis of crafts (Crafts unions). Craft unions are formed among nonindustrial and professional workers e.g, taxi drivers, journalist, teacher, bank
employees, etc. on the basis of hierarchy there are three types of unions: (a) Primary
unions which operate at the plant level; (b) regional federation which work at the
regional level, and (c) Central labour organization which function at the national level.
(ii)
The extent of unionization is not uniform in all industries. Workers in some industries
are better unionized than in others. For instance, about 70% of the workers in textile
industry are unionized whereas only 21% of about workers in chemicals are unionized.
Similarity, there is heavy concentration of unions in some states but in there exists
only few unions.
(iii)
Most of the unions in India are small in size as they are of the one shop type. Due to
small size the financial condition of unions is weak.
(iv)
Unionization is not limited to blue collar employees. White collar workers are also
unionized.
(v)
The primary unions are affiliated to a number of central unions.
11

(vi)

There is very close link between trade unions and political parties most of the central
labour organizations are under the control of one political party or the other.

Traditionally trade unions in India have been playing the role of bargainers and agitators. But in
future they will have to play new roles to meet the changing aspirations of the working class. There
new activities are: (a) Counseling (b) education and training (c) Communication (d) employee
welfare (e) family and vocational guidance (f) research and publications (g) human resource
development, and (h) employee ownership
RIGHTS OF A REGISTERED TRADE UNION:
1. A registered trade union is a body corporate having a perpetual succession and a common
seal. It acquires a legal personality separate from its members. It can acquire and hold a
property and can enter into contracts in its own name. it can also sue and be sued in its
own name.
2. A registered trade union has a right to maintain general funds and spend them for certain
specified purposes.
3. A registered trade union can constitute a separate fund for political purposes.
4. The act provides immunity to office bearers and m members of a registered trade union
from liability to punishment in respect of any agreement made between the members for
the purpose of furthering its objects as specified in section 15 unless the agreement is an
agreement to commit an offence.
5. A registered trade union enjoys immunity from civil action in respect of any act done in
contemplation or furtherance of a trade dispute to which a member of the trade union is a
party on the ground only that such act induces some other person to break a contract of
employment of some other person to dispose of his capital or his labor as he wills.
6. A registered trade union can represents workmen to the works committee.
A registered trade union has the following liabilities.

To appoint only those persons as office bearers who do not suffer from the disqualification
prescribed under the act.
To maintain books of accounts and the list of members
To keep books and the list open for inspection by members.
To submit annually to the registrar of trade union duly audited statements of receipts and
expenditure and assets and liabilities.
To furnish correct information to persons intending to become members.
RIGHTS OF A RECOGNISED OF TRADE UNION:
Annexure B of the Code of Discipline mentions the following rights of a recognized union.
1. It can raise issue and enter into collective agreements with employers on general questions
concerning the terms of employment and conditions of service of workers in the
establishment.
2. It can collect membership fees from the members within the premises of the undertaking.
3. It can put up a notice board on the premises of the undertaking and use it for announcement
relating to meetings, etc.
4. For the purpose of prevention or settlement of an individual dispute:
12

It can hold discussions on the premises of the undertaking with the employees who
are members of the union.(But this should not interfere with the normal working of the
undertaking)
It can discuss with the employer or with any other person appointed by him in that
behalf the grievance of employees in the undertaking.
It can inspect any place in the undertaking where any member of the union is
employed.
It can appoint its nominees on (a) Joint management councils (b) Grievance
Committee, and (c) any other non-statutory bipartite committee, canteen committee,
house allotment committee, etc.

The National committee on Labor has recommended for compulsory recognition of trade unions by
the employees under the central legislation in all industrial undertakings employing employees100 or
more workers or where the capital invested is above the stipulated size. In order to claim recognition
by the individual employers the union must have the total membership of 30% of the plant or
establishment. The industry wise union local area may, however, is recognized if the minimum
membership is 25%. The Commission has recommended that recognition is sought by more than one
union, the largest union should be recognized.

PROPORTION OF WORKERS INVOLVED IN INDUSTRIAL DISPUTES

Data pertaining to the proportion of workers involved in industrial disputes to the total
number of persons employed during 1973 and 1995 reveals that the percentage of workers involved
in industrial disputes in the public and the private sectors has shown a mixed trends. In 1973, 69% of
the workers involved in industrial disputes belonged to the private sector. It decreased to 48% in
1983, 33% in 1988 and 32% in 1990. It again rose to 55% in 1993. Over the recent years, the
percentage share of public sector in the total man days lost in industrial disputes has shown a rising
trend because of strikes of Banks, Air India, Insurance employees, and post and telegraph employees.
NUMBER OF MANDAYS LOST AND AVERAGE NUMBER OF WORKERS INVOLVED
PER DISPUTE
Though the total number of workers employed in the public sector has been nearly double the
number employed in the private sector, the man days lost in industrial disputes in the public sector
was barely 17% during 1973. The highest figure of the share of man days lost in the public sector
was in the year 1974 when the railways strike took place and next in order was in the year 1981. In
both these years some major public sector undertakings were involved in the industrial dispute.
Despite this, the share of the public sector in the total man days lost never exceeded 33% , it was as
low as 7% in 1976 the year following the emergency. However, it has been around 14 to 18% in
most of the subsequent years. In 1986, it was only 8% and declined to 6% in 1994. It again
increased to 12 and 15% during 1996 and 1997 respectively. From this point of view, the public
sector has an edge over the private sector in the maintenance of better industrial relations.
The number of man days lost in the public sector has been less than that in the private sector,
but the average number of workers involved per dispute has been more in the public sector than in the
13

private sector. This is due to the fact most of the public sector enterprises such as banks, post and
telegraph are much bigger in size and each employs thousands of employees.
AVERAGE NUMBER OF MANDAYS LOST PER WORKER
The data relating to average number of man days lost per worker reveals that in the public
sector, there is comparatively much less time required for resolving a dispute, but in the private
sector, it has taken much longer. For instance, during the period of 1973 and 1997 (but for 1981 and
1982), the average number of man days lost per worker has remained between 4 and 10 in the public
sector, but during the same period, in the private sector, the average loss of man days per worker has
been between 10 and 87. Perhaps the reason for lower average number of man days lost in the public
sector lies in the fact that the Government, being a pace-setter in the payment of wages, allowances
and perquisites agrees to the demands for higher wages, bonus, allowances, etc. of the workers
without much loss of time.

TRENDS IN INDUSTRIAL DISPUTES IN PUBLIC AND PRIVATE SECTORS

To have a comparative view of the trend in industrial relations in the public and private
sectors, the following indicators may be used:

(i)
(ii)
(iii)

The proportion of workers involved in industrial disputes to the total number of workers.
The total number of man days lost and the average number of workers involved per
dispute.
The average number of man days lost per worker in an industrial dispute.

PROPORTION OF WORKERS INVOLVED IN INDUSTRIAL DISPUTES

Data pertaining to the proportion of workers involved in industrial disputes to the total
number of persons employed during 1973 and 1995 reveals that the percentage of workers involved
in industrial disputes in the public and the private sectors has shown a mixed trends. In 1973, 69% of
the workers involved in industrial disputes belonged to the private sector. It decreased to 48% in
1983, 33% in 1988 and 32% in 1990. It again rose to 55% in 1993. Over the recent years, the
percentage share of public sector in the total man days lost in industrial disputes has shown a rising
trend because of strikes of Banks, Air India, Insurance employees, and post and telegraph employees.
NUMBER OF MANDAYS LOST AND AVERAGE NUMBER OF WORKERS INVOLVED
PER DISPUTE
Though the total number of workers employed in the public sector has been nearly double the
number employed in the private sector, the man days lost in industrial disputes in the public sector
was barely 17% during 1973. The highest figure of the share of man days lost in the public sector
was in the year 1974 when the railways strike took place and next in order was in the year 1981. In
both these years some major public sector undertakings were involved in the industrial dispute.
Despite this, the share of the public sector in the total man days lost never exceeded 33% , it was as
14

low as 7% in 1976 the year following the emergency. However, it has been around 14 to 18% in
most of the subsequent years. In 1986, it was only 8% and declined to 6% in 1994. It again
increased to 12 and 15% during 1996 and 1997 respectively. From this point of view, the public
sector has an edge over the private sector in the maintenance of better industrial relations.
The number of man days lost in the public sector has been less than that in the private sector,
but the average number of workers involved per dispute has been more in the public sector than in the
private sector. This is due to the fact most of the public sector enterprises such as banks, post and
telegraph are much bigger in size and each employs thousands of employees.
AVERAGE NUMBER OF MANDAYS LOST PER WORKER
The data relating to average number of man days lost per worker reveals that in the public
sector, there is comparatively much less time required for resolving a dispute, but in the private
sector, it has taken much longer. For instance, during the period of 1973 and 1997 (but for 1981 and
1982), the average number of man days lost per worker has remained between 4 and 10 in the public
sector, but during the same period, in the private sector, the average loss of man days per worker has
been between 10 and 87. Perhaps the reason for lower average number of man days lost in the public
sector lies in the fact that the Government, being a pace-setter in the payment of wages, allowances
and perquisites agrees to the demands for higher wages, bonus, allowances, etc. of the workers
without much loss of time.

15