INDUSTRIAL RELATIONS

History of IR

1) Pre-independence – before 1947

2) Post independence- 1947- 1991

3) Post globalization – After 1991

Pre Independence-

1- 1860- Employer & workman’s dispute act ( the dispute should be resolved)

2- 1880- Factories act- Good working environment& safe machines

3- 1926- Trade union act- Double exploitation- (Influence of USSR due to

communism and Marxism)

4- 1942- Indian Labor conference(ILC)- Government will also interfere between

government and workers

5- 1946- Standing order- orders were made to Discipline in industry

Post independence-

1- Dec 1947-Industrial dispute act- Socialist ideology, Mechanism was made hoe
to solve the dispute

During this time first five year plan was made by Pt. Nehru in 1952

Major trade unions-

INTUC-1920- Indian national trade union congress

AITUC- 1921-All india Trade union congress

2- 1964- 1979

a. 1979- NCL (National commission for labour) it restricts both labours

and employers

b. June 1975- National apex body was organized, during this time
Emergency was also applied

c. 1977- violence factory strike, many changes

3- 1980-91
 a. 26 july 1981- ESMA- Essential service maintenance act- according to
this act employees cannot do the strike in essential services like
Medical, transport, electricity.

b. The rule was also passed when there are more than 300 employees to
be retrenched then the employer will have to seek permission before
retrenchment.

c. The independent trade unions were allowed.

d. 1988- Now the limit was reduced to 100 before retrenchment

Post globalization (After 1991)

1991- Liberalization, privatization, Globalization

Pepsi was the first company to enter india after LPG

New changes were made like VRS- voluntary retirement scheme, Progressive
management, joint management; Non-privatized public sectors- Defense,
railway, uranium. Online trade unions in BPO

TRADE UNION

Functions of trade union according to mode

1) Militant function- to fight for the rights of the workers. (strike, Negotiation,
Gherao)

2) Fraternal function- Co-operative mode. (Congress, unity, negotiation)

a. Intramural- welfare of workers (salary negotiation, working

environment increments)

b. Extramural- For welfare of workers and employers (achieving goals,

increase productivity, morale, motivation)

c. Politics- Serve politically to stop strike and violence

Functions of trade union according to target

P) Trade unions functions for the workers-

1- To fight for the rights of workers

2- To secure good working conditions for workers

3- To help in determining the proper wages for the workers

4- To provide the common voice/ platform for the employees

 5- To secure bonus for the employees

6- To provide housing and other facilities for the employees

Q) Trade unions functions for the organisation-

1- Increase the productivity

2- Increase the morale

3- Help in addressing grievances

4-Making good industrial environment

5-Conflict resolution

R) Functions towards the society-

1) Economic growth due to increase in production

2) Unions organizes the social activities at time to time

3) Stop violence by employees

Problems of trade unions

1) Outside leadership- leader is chosen who is ot the worker in the organisation

2) Scarcity of financial resources- workers are not paid much that they can
contribute easily for the union

3) Politicization- when the leader is from a political party.

4) Multiplicity- when there are multiple unions so the rivalry occurs among the
unions

5) Limited membership- Maximum people do not perceive the value of trade

unions and they take it just for formality.

6) Uneven growth- In some sector unions are strong and growing but in some
sectors it is diminishing

Employers’ federation and government’s role-

it is an organization formed by merging several groups and employers for the
growth of industries.

Federation- eg. State government to central government

EFI- Employers’ federation of india

AIOIE- All india organization for industrial employers

NASSCOM- National association of commerce

ASSCOM- Association of

FICCI- Federation of industrial chambers of commerce of india

Functions of Employers federations

a. Making reports

b. Advice to government in making policies

c. Rising voice of employers

d. Negotiation with employers

e. Pass opinions/views

Secondary function- Act as an employers’ office

Difference between BODY and ASSOCIATION

Body- it is Formal organization, eg. Parliament, it has a Permanent office.

Association- People are not formed formally. It is voluntary in nature. People

associate together. Hierarchy, all people are considered equal, just like
people get free time and do something

Difference among wage, Salary, Compensation, remuneration, CTC

WAGE- Normally it’s for blue color workers. Varies as number of days worked vary.

SALARY- It is monthly basis and fixed. Incentives are not included in salary.

COMPENSATION- it is all the returns offered by the company. (wage + Fooding)

(Cash+ implies returns)
RENUMERATION- Whatever you get in exchange. (cash)

CTC- Cost to company- it includes all the expenses done by the company for
recruiting, retaining and preparing the employee.

Governments’ role and policies

Role-

1) Peace maker

2) Parent (Authority, dominating)

3) Policy maker

Policies- these are taken from the policies of ICL( India commission of labour) and
ILO (International labor organization, 1920, Jenewa)

Work of government-

1) Passing the legislations

2) Ensuring that the laws are well implemented

3) Putting Penalty

Industrial conflict: Strikes& lockouts, Boycott, picketing, Gherao

Strike- Cessation (stopping) of work collectively

Difference between strike and Demonstration-

 Strike- it hits the work without violation.

 Demonstration- It is not related to work. The regular or general work is not

affected.

Types of strikes-

1) Hunger strike- the people do not take the solid fool and stop work

2) General strike- Every worker on any post in the org stops working
 3) Sympathetic strike- when due to strike in one sector or industry another
group of people/ sector also starts strike in sympathy. E.g when engineers
joined the strike after the strike by junior doctors in AIMS.

4) Wild-Cat strike/ Lightening strike- when people suddenly stops working

without the meeting or application. Eg. Strike in NDA

5) Pen/tool down strike- when people remain in the office but do not work.

6) Slow down strike- it is famous in USA and UK. When people do work but not
with the full efficiency.

Boycott- the attitude that I will not come to work, let them work. It means it is
done by few people in the organization.

Boycott is of two types.

1- Primary boycott- It includes not only to stop the work as well as to stop
using the facilities offered by the company.

2- Secondary boycott- When employees urge to public that the company is

exploiting the employees so they should not purchase the products
offered by the company.

Picketing- when certain employees do not let others go inside the

premises/factory.

Gherao- this is violent and illegal. This is non-democratic in nature. When

employees make hostage to the members of the administration/ management.

Employers’ tool to show dissatisfaction-

Lock-outs- When the employers close the factory so that the employees cannot
enter into the premises/ factory.

(In all the cases the employees/employers will have to give notice 1 week to 1
month in advance in writing otherwise the movement will be considered illegal)

Collective Bargaining-

Negotiation becomes the part of bargaining.

Negotiation- when two equal level of the parties comes together to discuss on the
certain issue.

Bargaining- when two unequal level of the parties comes together to discuss on
the certain issue.

Types of collective bargaining-

1- Bipartile 2- Settling 3- Judiciary

Process of collective bargaining-

1- Registration and Recognition- there should be at least 7 people to make

the union. For process of bargaining the union should be recognized/
affiliated by the management.

2- Preparation- the minimum limit of compromise, extent of flexibility is decided

by meeting of both the parties separately.

3- Negotiation-

a. Preliminary round- in this round, the issues which are to be discussed

is decided. (Agenda is made)

b. Actual negotiation- in this round each party put his views and
discussion takes place.

c. Winding up- we make the conclusions (which parts come to the results)
we make the list what were the results came out.

4- Contract Administration- the resolutions are implemented and the Agreement

is carried out.

Management of discipline-

Types of disciplines

1- Positive discipline- when positive measurements are taken to discipline. E.g.

reward system

Here positive behavior is rewarded but the negative behavior is not

punished.

2- Negative discipline- when negative measurements are taken to discipline.

E.g. fine system
 Here negative behavior is punished but the positive behavior is not
rewarded.

3- Self discipline- when employees are aware about the value of discipline and
the monitor themselves for the discipline.

4- Progressive discipline- it is the combination of positive and negative

discipline. As things progress the decisions are taken according to situation.

Standing order act 1946, Code of discipline 1958

Why discipline is failed

A- Lack of proper leadership

B- Attitude

C- Personal choice

How to put discipline-

When an employee is found to be guilty of discipline then we first give him 1- Oral
warning, 2- Written warning, 3- Action against the guilty (demotion, termination)

How to terminate the employee

1- Take away all the works

2- Decrease the wages

3- Demotion

4- Enquiry

5- Suspension for the certain time period

6- With hold all the increments

7- Stop the promotion

Red Hot Stove rule by Douglas McGregor- this theory is based on the
characteristics of the red hot stove.

1- Burns immediately- the actions should be taken immediately sothat it should

not be repeated.
 2- Everyone can see the flame- All the employees should know the
consequences of the indiscipline and guidelines

3- Impersonal- Everybody at any post will be punished.

4- Consistent- the consequences of the indiscipline should be applied every

time.

Acts of indiscipline by the employees in the organization

1- Unnecessary strike

2- Violence

3- Sexual harassment

4- Improper behavior

5- Theft

6- Fraud

7- Whistle blowing

8- Drunken behavior

Process of management of discipline

According to standing order 1946, when we find the event/complaint of indiscipline

by an employee then we follow the following process to deal with such event. This
process starts when the complaint against the employee is reported.

Step1- Issue a charge sheet of the complaints against the accused employee.

Charge sheet is a list of all complaints/ charges against the employee. Eg. It is found
a complaint against Mr. XYZ for stealing of A equipment on 4 April 2009.

Step2- Call the employee to explain by issuing a charge sheet against him. For
relevant explanation the employee should be given the time of 1 week to 15 weeks.

Step3- The explanation should be considered.

Step 4- if the explanation is satisfying then the case will be resolved.

If not satisfactory then an enquiry should be ordered. It should be in the form

of interview.
Step5- If there is a big pending in the enquiry then the employee should be
suspended. During the suspension ½ of the wages should be paid. After 3 months ¾
of the wages should be paid.

Step6- If enquiry finds him guilty of the misdeed then according to the degree of the
misbehavior a notice is given to the employee then the proper action is taken
against the employee.

Indian workers

Types of Indian workers-

a. Unorganized workers- 92.9%, 369 mn

b. Organized workers- 7.1%, 31 mn

Age- 18 to 60

Profile- Migrants, wealth problem, high turn over

Trade Union 1926-

Atleast 7 people are required to form a union. Union is a representative of workers

who work in the office, business. The body should be reorganized and recognized by
the both employers and the employees.

Trade unions are of three types-

A- Craft unions- It is based on the kind of Manual work.

B- Industry Unions- It is based upon the Industry.

C- General unions- It is for all the workers in the country. Every worker can
join it.

Closed Union- the workers only participate in formation of the union. A worker first
joins the union then further he takes some responsibility/ post/ task.

Shop Union- In shop unions, the employers play an active role in formation and
distribution of the responsibilities/ posts/ roles.

Online Unions- It is the combination of the trade unions and the technology. The
technology can be used of telecom or computer.
Role of negotiation between employer and employees.

From employees point of view-

A- It brings stability in negotiation.

B- It brings healthy working environment.

From employers point of view-

1) It brings the goodwill for the company in terms of the virtuous cycle-
(virtuous cycle- one thing that leads to the another good thing)(vicious
cycle- one bad thing that leads to another bad event)

2) It improves the production and the productivity

3) The events of accidents and the number of rejected output are also
decreased.

From society point of view

a) It increases the peace and the feeling of security in the society.