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Industrial relations Industrial Relations

Multidisciplinary field that studies the employment relationship - include the relationships and interactions between employers and employees Also called employment relations because of the importance of non-industrial employment relationships. Studies and examine various employment situations - Covers all aspects of the employment relationship, including human resource management, employee relations, and unionmanagement (or labour) relations

Industrial relations
Industrial progress is impossible without cooperation of labours and harmonious relationships. Therefore, it is necessary to create and maintain good relations between employees (labour) and employers (management). Industry - any productive activity in which an individual (or a group of individuals) is engaged. relations - the relationships that exist within the industry between the employer and his workmen.

Industrial relations & human relations

Industrial relations deals with the study and practice of collective bargaining, trade unionism, and labourmanagement relations Human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

Terms in industrial relations

Industry Any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes by investing a capital with a motive to make any gain or profit. An industry is a whole range of activities that are carried on by an employer with the help of his employees and labours for production and distribution of goods to earn profits

Terms in industrial relations

Employer An employer can be defined as:a person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons. a person who directly engages a worker/employee in employment. any person who employs, whether directly or through another person or agency, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed.

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Terms in industrial relations

Employee Employee is a person who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business. An employee is any individual employed by an employer. A person who works for a public or private employer and receives remuneration in wages or salary by his employer while working on a commission basis, piece-rates or time rate. The

Terms in industrial relations

state of Employment being employed or having a job.

Labourmarket The market in which workers compete for jobs and employers compete for workers. It acts as the external source from which organizations attract employees. These markets occur because different conditions characterize different geographical areas, industries, occupations, and professions at any given time.

Scope of industrial relations

The scope or industrial relations include the following: Collective bargaining Machinery for settlement of industrial disputes Standing orders Workers participation in management Unfair labour practices

Collective bargaining
Process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditions. Interests of the employees are commonly presented by representatives of a trade union to which the employees belong. Collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs

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Industrial disputes
Defined as a conflict or difference of opinion between management and workers on the terms of employment Disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes, picketing or gheraos.

Objectives of industrial relations

The main of industrial relations system are: To bring better understanding and cooperation between employers and workers. To establish a proper channel of communication between workers and management. To ensure constructive contribution of trade unions. To avoid industrial conflicts and to maintain harmonious relations. To safeguard the interest of workers and the management. To work in the direction of establishing and maintaining industrial democracy.

Objectives of industrial relations

Objectives of industrial relations

Vesting of a proprietary interest of the workers in the industries in which they are employed To ensure workers participation in decision-making. To increase the morale and discipline of workers. To ensure better working conditions, living conditions and reasonable wages. To develop employees to adapt themselves for technological, social and economic changes. To make positive contributions for the economic development of the country.

To establish and promote the growth of an industrial democracy based on labour partnership in the sharing of profits and of managerial decisions, To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions To improve the economic conditions of workers in the existing state of industrial managements and political government. Socialization of industries by making the state itself a major employer

Main aspect of Industrial Relations

labour Relations, i.e. relations between union and management. Employer-employees relations, i.e. relations between management and employees. Group relations, i.e. relations between various groups of workmen. Community or Public relations, i.e. relations between industry and society. Promotions and development of healthy labour-managements relations. Maintenance of industrial peace and avoidance of industrial strife Development of true industrial Democracy.

Significance of industrial relation

The healthy industrial relations are key to the progress and success. Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production.

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Significance of industrial relation

Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production.

Causes of Poor Industrial Relations

Mental inertia on the part of management and labour; An intolerant attitude of contempt of contempt towards the workers on the part of management. Inadequate fixation of wage or wage structure; Unhealthy working conditions; Indiscipline; Lack of human relations skill on the part of supervisors and other managers; Desire on the part of the workers for higher bonus or DA and the corresponding desire of the employers to give as little as possible;

Principle of Good Industrial Relations

The willingness and ability of management and trade unions to deal with the problems freely, independently and with responsibility. Recognition of collective bargaining. Desirability of associations of workers and managements with the Government while formulating and implementing policies relating to general economic and social measures affecting industrial relations. Fair redressal of employee grievances by the management Providing satisfactory working conditions and payment of fair wage. Introducing a suitable system of employees education and training. Developing proper communication system between management and employees. To ensure better working conditions, living conditions and reasonable wages. To develop employees to adapt themselves for technological, social and economic changes. To make positive contributions for the economic development of the country.

Factors of industrial relations

Industrial Relation encompasses all such factors that influence behavior of people at work. 1. Institution: It includes government, employers, trade unions, unions federations or associations, government bodies, labour courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. 2. Characters : It aims to study the role of workers unions and employers federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labour court, tribunal etc.

Factors of industrial relations

Industrial Relations Machinery
3. Methods : Focus on collective bargaining, workers participation in the Industrial Relation schemes, discipline procedure, grievance re-dressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labour courts, tribunals etc. 4. Contents : Includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, layoff, dismissals retirements etc., laws relating to such activities, regulations governing labour welfare, social security, industrial relations, issues concerning with workers participation in management, collective bargaining, etc.

Comprises of Conciliation Arbitration Adjudication

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Conciliation
Alternative dispute resolution (ADR) process whereby the parties to a dispute (including future interest disputes) agree to utilize the services of a conciliator (mediator), who then meets with the parties separately in an attempt to resolve their differences. They do this by lowering tensions, improving communications, interpreting issues, providing technical assistance, exploring potential solutions and bringing about a negotiated settlement. has no legal standing, and the conciliator usually has no authority to seek evidence or call witnesses, usually writes no decision, and makes no award.

Arbitration
A form of alternative dispute resolution (ADR), is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons (the "arbitrators", "arbiters" or "arbitral tribunal"), by whose decision (the "award") they agree to be bound. It is a settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides

Arbitration is often used for the resolution of commercial disputes, particularly in the context of international commercial transactions The use of arbitration is also frequently employed in consumer and employment matters, where arbitration may be mandated by the terms of employment or commercial contracts.

Adjudication
legal process by which an arbiter or judge reviews evidence and argumentation including legal reasoning set forth by opposing parties or litigants to come to a decision which determines rights and obligations between the parties involved. Three types of disputes are resolved through adjudication: Disputes between private parties, such as individuals or corporations Disputes between private parties and public officials Disputes between public officials or public bodies

What's the difference?

The difference between arbitration and mediation In mediation a neutral facilitator works with all parties to assist them to reach a solution. Arbitration is a formal process in which an independent third party hears from all parties and makes a decision about how to resolve the dispute. The difference between arbitration and adjudication The aim of adjudication is to resolve disputed issues in order to enable work to continue (either indefinitely or while awaiting the decision of a judge or arbitrator). Arbitration is a more formal process, and the arbitrator's decision is legally binding.

Worker Participation And Employee Involvement

The word participation means sharing the decision-making power with the lower ranks of the organization in an appropriate manner. Has a unique motivational power and a great psychological value promotes harmony management. and peace between workers and

When workers participate in organizational decisions, they are able to see the big picture clearly, i.e., how their actions would contribute to overall growth of the company.

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Worker Participation And Employee Involvement

Workers participation in management encompasses the following: Provides scope for employees in the decision making of the organisation. participation may be at the shop level, departmental level or at the top level. participation includes the willingness to share the responsibility by works as they have a commitment to execute their decisions. participation is conducted through the mechanism of forums which provide for association of workers representatives. The basic idea is to develop self control and self discipline among works, so that the management become Auto Management.

Need for workers participation

Reduced industrial unrest Reduced misunderstanding Increased organization balance Higher productivity Increased Commitment Industrial democracy Less resistance to change

Objectives of Workers Participation in Management

The scheme has economic, psychological, ethical and political objectives. Psychological objective - to secure full recognition of the workers Association of worker with management provides him with a sense of importance, involvement and a feeling of belongingness. Socially, the need for participation arises because modern industry is a social institution with the interest of employer, the share-holders, the community and the workers equally invested in it. Ethical objective of participation is to develop workers free personality and to recognize human dignity. Political objective of participation is to develop workers conscious of their democratic rights on their work place and thus bring about industrial democracy.

Objectives of Workers Participation in Management

The main objectives of workers participation in management include: i. To promote increased productivity for the advantage of the organization, workers and society at large; ii. To provide a better understanding to employees about their role and place in the process of attainment of organizational goals; iii. To satisfy the workers social and esteem needs; and iv. To strengthen labour management co-operation and thus maintaining industrial peace and harmony. v. To develop social education for effective solidarity among the working community and for tapping latent human resources.

Objectives of Workers Participation in Management

vi. An ideological point of view to develop self-management in industry. vii. An instrument for improving efficiency of the company and establishing harmonious industrial relations. viii. To build the most dynamic human resource. ix. To build the nation through entrepreneurship and economic development. x. To improve the quality of working life by allowing the workers greater influence and involvement in work and the satisfaction obtained from work. xi. Development of human personality xii. Development of leader from within the industry. xiii. Development of working class. xiv. Creation of a just egalitarian (equal) society. xv. Facilitate self-development of worker.

Formal & informal participation

The participation of workers may be formal or informal. Formal participation - it takes the forms of formal structures such as Works Committee, Shop Councils, Production Committee, Safety Committee, Joint Management Councils, Canteen Committee etc.

Informal participation- may be such as the supervisor consulting the workers for granting leave, overtime, and allotment of worked or transfer of workers from one department to another.

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Workers participation in management in India

Entered the Indian scene in the year, 1920, when Mahatma Gandhi had suggested that workers should participate and contribute to the organization and also share its prosperity.

Workers participation in management in India

The various forms of workers participation in management currently prevalent in the country are: 1) Works Committee 2) Joint Management Councils (JMCs 1958) 3) Joint Councils 4) Unit councils 5) Plant Council (6) Shop Councils (7) Workers Representation on Board of Management (8) Workers Participation in Share Capital

Workers Participation in Management in India

Even after taking all these initiatives, WPM in India was a failure. The factors responsible for the failure are: Attitude of the management towards the scheme is not encouraging. The preventatives of workers are not given due recognition by the management. The attitude of trade unions towards the schemes is negative as they consider these schemes are reducing the power of Trade Unions. Some Trade Unions boycott Joint Management Council meetings.

Suggestion to make WPM Schemes Successful in India

The success of any scheme of participative management is dependent on some of the basic points regarding work environment ,which are as under: There should be a strong, demographic and representative unionnism,without any political forces and multiplicity in unions.

Suggestion to make WPM Schemes Successful in India

Formation of mutually agreed and clearly spelt objectives for participation, with emphasis on autonomy and satisfaction of higher needs of the workers. Creation of working environment conducive to participation ,without much rigid hierarchical structure and close supervision. Ensure complete sharing of information which shall ensure effective consultations and formation of policies.

Suggestion to make WPM Schemes Successful in India

Both parties should develop their attitude and outlook, and must have full faith in the soundness of this concept. Rights of each other are recognized and protected by the presence of legal framework, thought is not used often.

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Labour welfare
Involves all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries. Labour welfare has the following objectives: To provide better life and health to the workers To make the workers happy and satisfied To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.

Labour welfare
labour welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining Labour welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time. Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency. The purpose of labour welfare is to bring about the development of the whole personality of the workers to make a better workforce.

Labour welfare
The important benefits of welfare measures can be summarized as follows: They provide better physical and mental health to workers and thus promote a healthy work environment Facilities like housing schemes, medical benefits, and education and recreation facilities for workers families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. Employers get stable labour force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. The social evils prevalent among the labours such as substance abuse, etc are reduced to a greater extent by the welfare policies.

Social security
System of protection or support provided by the society or government to workers and their families in time of sudden calamity, sickness, unemployment, injuries, industrial accidents, disablement, old age or other contingencies. Social security programmes include Medicare and insurance benefits Medical help at the time of injury and accident and provision financial compensation and relief. Pension in case of disablement Unemployment insurance or allowance Maternity benefits Death payments and family pension Retirement benefits or old age relief etc.

Social Security Programmes in India

In pre-independence period, a beginning was made in social security with the passing of the Workmens Compensation Act, 1923. After independence, enacted a number of laws and has introduced and implemented many schemes to provide social security to industrial workers..

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Social security
Social security is guaranteed in our Constitution under Acts. 39, 41 and 43. The Employees State Insurance Act, 1948 provided sickness benefit and extended sickness benefit; maternity benefit; disablement benefit; dependants benefit; (5) funeral benefit; and medical benefit. The Employees Provident Funds and Miscellaneous Provisions Act, 1952 and the Maternity Benefit Act, 1961, are also social security measures Workmens compensation act, 1923 - became effective from July 1, 1924 -provided for payment of compensation to workmen and their dependents in case of injury, accident and some occupational diseases arising our of and in the course of employment and resulting in disablement and death. Payment of Gratuity Act, 1972 - provide a scheme for the payment of gratuity to employees employed in factories, mines, oil fields, plantations, ports, railways, shops and establishments

Social security
The Factories Act., 1948, provides for health, safety, welfare, employment of young persons and women, hours of work for adults and children, holidays, leave with wages etc. The Contract Labour (Regulation and Abolition) Act of 1970, a piece of social legislation, provides for the abolition of contract labour wherever possible and to regulate the conditions of contract labour in establishments or employments The Minimum Wages Act, 1948, provides for the fixation of minimum rates of wages by the Central or State governments within a specified period for workers employed in certain scheduled employments

Industrial safety
Factories act 1948 caters for the industrial safety of the worker The Act has been enacted primarily with the object of protecting workers employed in factories against industrial and occupational hazards.

INDUSTRIAL SAFETY & WELFARE PROVISION

Industrial safety
Main features of act are:
Before starting any industry, written permission of the government is required along with relevant particulars of the industry.(at least 15 days notice is required) Complete security arrangements shall be made. Children shall not be employed in big or dangerous machines

Employee Health and Safety

For smooth functioning of an organization, the employer has to ensure safety and security of his employees. Health and safety form an integral part of work environment- should enhance the well being of employees and thus should be accident free

A construction worker hanging in the rope without any protection at a construction site in Chennai.

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Employee Health and Safety

Industrial safety and health may comprise measures for : (i) Protecting the workers/employees against any health hazards arising our of their work or the condition under which it is carried on; (ii) Fostering the adaptation of workers to the jobs and work environment and thus contributing towards the employees physical as well as mental adjustments; and (iii) Promoting the establishment and maintenance of the highest possible degree of physical mental and social wellbeing of the workers.

Employee Health and Safety

Normal health hazards may be caused by Chemical substances at the work place such as carbon monoxide, carbon dioxide, sulphur dioxide, sulphuric acid, acetic acid etc. - Inhaling causes respiratory or heart diseases, cancer and neurological disorders they may shorten life expectancy; Biological factors including sickness caused by bacteria, fungi, viruses, dietary deficiencies, allergies, emotional strains due to fear, anxiety etc. and Environmental factors including illness due to radiation, noise, vibrations and shocks or atmospheric conditions such as inadequate ventilation, lighting arrangement or very high or low temperature at the work place.

Employee Welfare Schemes

The statutory welfare schemes include the following provisions: Drinking Water: At all the working places safe hygienic drinking water should be provided. Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.

welfare provisions

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Employee Welfare Schemes

Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

Employee Welfare Schemes

Many non statutory welfare schemes may include the following schemes: Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.

A spittoon (or spittoon) is a container made for spitting into, especially by users of chewing and dipping tobacco

welfare provisions

welfare provisions

Employee Welfare Schemes

Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee. Maternity & Adoption Leave Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

Labour Legislation in India

Labour Legislation refers to all laws of the Government which have been enacted to provide social and economic security to the labour or workers. The evils of industrialization have led to the labour legislation. Now the state has a direct interest in the industrial peace and prosperity These acts are aimed at reduction of production losses due to industrial disputes and to ensure timely payment of wages and other minimum amenities of the workers

welfare provisions

Need of labour Legislation

The basic principle of industrial legislation is to ensure social justice to the workers . The object of legislation is : the equitable distribution of profits and benefits adding from industry between industrialists and workers affording protection to the workers against harmful affects to their health safety and morality

Principles of Labour Legislation :

There are four principles on which the labour legislation is based viz, Social Justice Economic Justice National economy International conventions

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Labour laws
Varied body of law applied to such matters as employment, remuneration, conditions of work, trade unions, and industrial relations. Includes social security and disability insurance as well

Elements of labour law

The basic subject matter of labour law can be considered under nine broad heads:
Employment; Individual employment relationships Wages and remuneration; Conditions of work, health, safety, and welfare; Social security Trade unions and industrial relations; The administration of labour law; Special provisions for particular occupational or other groups

1) Employees State Insurance (ESI) Act, 1948

Provides for certain benefits to employees in case of sickness, maternity and employment injury. It applies to all factories employing ten or more persons and carrying on a manufacturing process with the aid of power or employing 20 or more persons and carrying on a manufacturing process without the aid of power

Employees State Insurance (ESI) Act, 1948

The benefits provided to the employees under the scheme are: (1) sickness benefit and extended sickness benefit; (2) maternity benefit; (3) disablement benefit; (4) dependents' benefit; (5) funeral benefit; and (6) medical benefit. All the benefits are provided in cash

2) Workmens compensation Act, 1923

The Workmens Compensation Act, aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen. It provides for payment by certain classes of employers to their workmen compensation for injury by accident.

3) Payment of Wages Act, 1936

To ensure regular and prompt payment of wages and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages. Applicable for payment of wages to persons employed in any factory. Wages include all remuneration, bonus, or sums payable for termination of service, but do not include house rent reimbursement, light vehicle charges, medical expenses, TA, etc.

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4) Minimum wages Act, 1948

The Minimum wages Act of 1948 was passed for the welfare of labour and provided for fixing the minimum rate of wages of labour. Aims at making provisions for the statutory fixation for the minimum rate of wages in number of industries where there are extensive chances for the exploitation of labour

Role of state in labour welfare

The improvement of labour welfare and increasing productivity with reasonable level of social security is one of the prime objectives concerning social and economic policy of the Government. The resources have been directed through the Plan programmes towards skill formation and development, monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and then families.

Role of state in labour welfare

Various welfare measures adopted by the state are:
Factories act 1948 Trade union act Payment of wages act Minimum wages act Workmen compensation act Contract labour act

Role of labour welfare officer

Labour welfare officer is appointed as per the requirement of section 49 of the Factories Act 1) To act as a negotiating officer 2) To shape and formulate labour policies 3) To establish contact 4) To deal with wages and employment 5) To prevent from anti social activities 6) To bring about peaceful settlement 7) To comply with provision of factory to promote relation between the factory and workers 9) To encourage formation of committees 10) To secure provision of amenities 11) To help factory management in regulation of Leave 12) To secure welfare provisions 13) To advice factory management

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