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PRESENTED BY: Pavneet Singh MBA Global Business

The main architecture of industrial relations system was established prior to Independence and remains mostly unchanged. The system is highly centralized and the state is the main mediator between capital and labour.

The concept of Industrial relations has been defined using various terminologies, but in the strictest sense, it is essentially the relationship between management and labor.

DEFINITION The term Industrial Relations commonly denotes employee-employer relations


Emphasize, IR is concerned with the relationship between management and workers


industrial relations denote all types of relations within a group and outside a group - both formal and informal relations




Protect management and labor interests Avoid disputes between management and labor Ensure full employment and reduce absenteeism Emphasize labor employer partnership Provide better wages and living conditions To bring about government control over plants To bridge a gap between various public factions and reshape the complex social relationships


IR pattern organized sector and its impact on unorganized sector Unions are important force in the Indian political system Status Difference in the workers of public and private sector Cordial atmosphere Healthy Labour-Management Relations Maintenance of Industrial peace Development of Industrial Democracy

Multinational companies (MNCs), at the forefront of globalization, have grown to almost 80,000 worldwide employing 55 million people
The last few years have seen a sharp surge in worker protests in multinational companies across India. HONDA

On 25th July 2005, about 300 to 700 workers of Honda Motorcycles and Scooters India (HMSI) were reported injured in a clash with Haryana police. About 3000 workers were protesting a lockout of their factory and the dismissal of some colleagues. Trouble broke out when the workers, staging a protest march, were confronted by police. Honda's Chinese factory near Shanghai, suffered a strike on 7th June 2010, less than a week after it settled an earlier dispute by offering a 24% pay rise


A Maruti spokesperson said the company's Union (formed by exemployees of the company) had long since been de-recognised and therefore was not representative of the workers. contract of employment the workmen are duty-bound to adhere to norms of discipline and give normal output


company claims that its regular employees are paid above average salaries. However, this does not appear to stem the tide of strikes at its various units in India. in order to partially make up the shortfall in production and claimed that office bearers of MKS-N physically intimidated and threatened the managers when they were entering office. Thereafter the MKS-N declared a Tool Down from 8.3.2010 onwards.


The company claimed that the Labour Commissioner had directed the workers to join work and that an enquiry would be conducted against the 11 Union Committee members for resorting to violence during the strike.


The Nokia Union is an affiliate of the Labour Progressive Front (LPF), labour wing of the ruling DMK Party. Nokia raised a dispute with the Labour Department

HYUNDAI A 17-day strike starting 20th April 2009, at Hyundai Motors India Ltd's [HMIL] Sriperumbudur in Tamil Nadu, ended after management and employees reached a settlement when the management agreed to recall some of the suspended workers. MITSUBISHI CHEMICALS The Nationalist Contractors Union (contract workers of Mitsubishi, owing allegiance to Mamata Banerjee's union wing, INTTUC) raised several issues relating to the contract workers' pay discrepancies with permanent workers, non-lucrative incentive schemes, reduction in bonus, etc.

The most recent worst form of industrial unrest was witnessed in the Maruti Suzuki India Ltd., Manesar plant, where workers went into riotous, leaving its General Manager (HR) dead and 100 other officials laid up in hospital with serious injuries. National Quantum

A total of 384 million persons are employed at various levels and out of the total employed 51% are self-employed, while 33.5% are engaged as casual labour and 15.6% are employed as regular wage or salaried employees.

Sectoral Presence

Estimated number of contract labour employed by the three sectors

According to a report by Government of India the following enforcement measures were taken during 2005-06 to 2008-09 as cited in the table below:

International Practices
The practice of hiring or employing contract/short term workers by industries is prevalent throughout the globe for improving overall competitiveness in the globalised market economy.

Industry Perspective & Recommendations

Contracting out job work, services or employing contract employees, provides flexibility, leads to efficient utilisation of resources and improves overall competitiveness.

Landmark Judicial Pronouncements

The Honble Supreme Court of India had delivered three landmark judgements on the Contract
Labour (Regulation and Abolition) Act, 1970 in the cases of Gujarat State Electricity Board, Air India Statutory Corporation and Steel Authority of India Ltd. (SAIL) and recently had given a judgement on Bhilwara Dugdh Utpadak Shakaris Ltd. Gujarat State Electricity Board Vs Union of India (09.05.1995) Air India Statutory Corporation Vs United Labour Union & Others (06.12.1996) Steel Authority of India Ltd. (SAIL) & Others Vs National Union of Waterfront Workers and Others (30.08.2001) Bhilwara Dugdh Utpadak Sahakaris Ltd. Vs Vinod Kumar Sharma Dead by LRS & ORS (01.09.2011)

Central Governments Efforts The Government of India on various occasions has tried to bring about effective compliance mechanisms in the Contract Labour State Governments Initiatives Some State Governments are trying to amend and had also amended the Contract Labour Conclusion Addressing the issues of contract labour through a sustainable method avoiding future industrial unrest is the need of the time and the only remedy to it is by bringing this segment of workers under social security net.








This case study examines the industrial relation in India in the Era of liberalization. The main focus of this case study is trends in Intensity of industrial disputes, its causes and the growth of trade unions in India during the year 1992 to 2011. Results indicates that there is satisfactory industrial relation in India, due to the growth of trade union and continuous decline in industrial strikes and lockout during the entire study period.


Industrial relations has become one of the most delicate and complex problems of modern industrial society.

Objectives of Study

To examine the Trends in Intensity of Industrial disputes in India during 19922011. To examine the main causes of industrial disputes in India. To examine the growth of Trade union in India.

Data collection and Methodology

Data Source

The data have been obtained from the year 1992 to 2011 for number of industrial disputes, workers involve man days lost and Number of registered trade union, from the various issues or reports of Indian Labour Statistics 1992-2011.


For assessing the extent of workers' participation and involvement in industrial conflicts, three criteria have been adopted from Ross and Hartman (1960): (A) Dispute Duration Ratio, (b) Dispute Coverage Ratio, and (c) Time Loss Ratio.

Disputes Duration Ratio:

an employee involved in disputes, generally remained off the job for a relatively shorter duration, averaging 1.90 days per year, during 1992-2011.

Dispute Coverage Ratio: Taking the period under study, as a whole, about 2146 workers have been involved per conflict per year. the general upswing in die ratio is the probable result of two factors: (i) rapid growth in the number of relatively large sized firms involving large number of workers, and (ii) a considerable increase in the number of trade unions accompanied by a higher membership involvement Time Loss Ratio: Though, on an average, about 3374 man-days were lost per dispute during 1992-2011, no regular trend is witnessed.

Wages and allowances:

In 2002, 21.4% of disputes were caused by demand of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%.

Personnel and retrenchment:

In 2003, a similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by personnel, and only 0.4% were caused by retrenchment

Indiscipline and violence: During the year 2003, indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar trend was observed in 2004 where indiscipline accounted for 40.4% of disputes. Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively. Leave and working hours: During 2004, only 0.4% of the disputes were because of leaves and working hours.


The year 2011 faced the minimum number of strikes and lockouts with the least number of man days lost and minimum workers involved. Cause wise distribution of industrial disputes during the year 2002 to 2005 has been shown that demand for higher wages has been the dominant cause for the industrial disputes. The growth of trade union during the 1992- 2007 has been extraordinary; the number of registered union improved in entire study period. The continuous decline in strikes and lockouts and extraordinary growth of trade union indicates that the industrial relations in India are improving.

Limitation of the study:

The limited database, short time period and selected variables are some of the major limitations of this study.

1) The participation of workers in the management of the industrial unit should be encouraged by making effective use of works committees, joint consultation and other methods. 2) The employers must recognize the right of collective bargaining of the trade unions. 3) The management should sincerely implement the settlements reached with the trade unions.

Industrial relations in India are governed by certain forceseconomic, social and political. Industrial relations can change for the better only if there is a convincing change in the attitudes of employers and employees and they both take responsible and realistic interest in their mutual goals and requirements.

The Government should play an active role for promoting industrial peace. It should make law for the compulsory representative union in each industrial unit. recognition of a

It should intervene to settle disputes if the management and the workers are unable to settle their disputes. This will restore industrial harmony.

The location of strikes and unrest have shifted to newer industrial areas like Gurgaon, Manesar, Pune, Jaipur, Chennai, Bangalore, away from the traditional hotbeds of union militancy like Bengal or Ahmedabad, Some of the unrest is related to the recession of 2007-08, but several started much earlier and have continued even after the recession has eased significantly. Many are related to global competition, and manpower utilization techniques consistent with high tech productivity and production. A lot of the problems relate to managerial styles--summary suspensions and dismissals, pay cuts, intolerance for any interference in their own production plans, insistence on written undertakings of good conduct Workers are resorting to violence and are hitting back at management over perceived injustices. Although Collective Bargaining is being used, it is often failing to resolve prickly issues and workers are demanding reopening of negotiations within 6 months to one year. There is also a demonstrated inability on the part of the multinationals (except MCPI) to handle conflicts bilaterally