Professional Documents
Culture Documents
Module 1: Nature of IR
1. Define IR
The field of industrial relations (also called labour relations) looks at the relationship between
management and workers, particularly groups of workers represented by a union.
Labour relations is an important factor in analyzing "varieties of capitalism", such as neocorporatism
(or corporatism), social democracy, and neoliberalism (or liberalism).
Labour relations can take place on many levels, such as the "shop-floor", the regional level, and the
national level. The distribution of power amongst these levels can greatly shape the way an economy
functions.
Another key question when considering systems of labour relations is their ability to adapt to change.
This change can be technological (e.g., "What do we do when an industry employing half the
population becomes obsolete?"), economic (e.g., "How do we respond to globalization?"), or political
(e.g., "How dependent is the system on a certain party or coalition holding power?").
Governments set the framework for labor relations through legislation and regulation.
In Australia industrial relations is the commonly used term, though in recent years the term workplace
relations has also become common. This was a prominent issue in the defeat of the centre-right
Howard Liberal government at the 2007 federal election, who with a Senate majority had introduced
the WorkChoices policy.
The academic discipline of labor studies is closely related to and often studied and taught in
conjunction with the study industrial and labor relations in english language universities.
2. Nature of IR (5)
An industrial relations system consists of the whole gamut of relationships between employees and
employees and employers which are managed by the means of conflict and cooperation.
A sound industrial relations system is one in which relationships between management and employees
(and their representatives) on the one hand, and between them and the State on the other, are more
harmonious and cooperative than conflictual and creates an environment conducive to economic
efficiency and the motivation, productivity and development of the employee and generates employee
loyalty and mutual trust.
Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire
them. Management can also affect workers’ interests by exercising their right to relocate, close or
merge the factory or to introduce technological changes.
Employees: Workers seek to improve the terms and conditions of their employment. They exchange
views with management and voice their grievances. They also want to share decision making powers of
management. Workers generally unite to form unions against the management and get support from
these unions.
Government: The central and state government influences and regulates industrial relations through
laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal
courts.
SCOPE:
The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it
means that the employer, employee relationship confines itself to the relationship that emerges out of
the day to day association of the management and the labor. In its wider sense, industrial relations
include the relationship between an employee and an employer in the course of the running of an
industry and may project it to spheres, which may transgress to the areas of quality control, marketing,
price fixation and disposition of profits among others.
The scope or industrial relations is quite vast. The main issues involved here include the following:
1. Collective bargaining
2. Machinery for settlement of industrial disputes
3. Standing orders
4. Workers participation in management
5. Unfair labor practices
In India the industrial relations have been seen through the following three stages:
1. Occupations in India
a. Labour in medieval India
b. Guilds and union.
2. Industrial Relations in India
a. Early British Rule
b. 1st World War to Pre-Independence Period
c. Post independence period.
In those days, the prime occupation in India was “Agriculture”. Trading was of second importance.
Manual service formed the third area of preference. Majority of the states were ruled by kings. India
was greatly advanced in the industrial field, this is evident from the “Kautilya’s Arthashastra”. This
gives a comprehensive picture of the organisations and functions of the social and political institutions
in ancient India.
The caste system had great influence on the development and progress of these industries and
occupation. The concept of caste systems was originally based on the transfer of skills and
specializations which ultimately led to standardization of professions. The
1. Labour Medieval India: The caste system unified a number of persons belonging in particular
occupations and formed the basis of occupational guilds. Indian works of art and crafts were
badly ruined with the foreign invasions, which lasted 700 years. These artisans gradually lost
the traditional skills. This led to the state that there was no difference between a slave and these
artisans.
The situation improved only after restoration of law and order under the Mughals. Under Akbar,
government factories operated in Agra, Lahore, Fatehpur and Ahmedabad, where employees
could develop respective art. A large number of occupations were also carried on by small
manufacturers and traders in their cottages mostly on a hereditary basis. A majority of artisans
lived in the fringe of starvation.
2. Guilds and Unions: From early days, craftsmen and workers felt the need of being united.
Different terms such as Gana and Vrat as in “Rigveda” Sheshthi in Aitareya Brahmana; Gana
and Ganapati in Vajasaneyi Samhita; Sreni in Arthashastra and Puga, Gana, Vrat, Shremi and
Sangha have been used to indicate what Katyanyana calls group.
These unions gradually gained strength and were helpful not only in the evolution of arts but
were powerful centers of arts in themselves. Only responsible persons could become their
members. The union followed democratic principles. In event of a dispute between the
president and the members, the king intervened and brought about conciliations.
Kautilya has given a good description of the unions of employees, craftsmen or artisans.
According to him the work of unions should be controlled by the board of 3 directors, members
should pay the entrance fee to the president and the profits earned by the unions should be
equally distributed among their members.
Almost every craft, profession or occupation had its own union which was called “Shreni”.
Every “Shreni” included about 1000 members. The Shreni elected its chief who was called the
“Pramukha” or “Jyeshta”. These guilds and corporations wielded considerable political power
and influence.
2. Industrial Relation in India
However due to the autocratic regime of the Muslim rulers, the economic conditions of the employees
was deplorable. Laborers could be forced to leave home to work on wages, as per the “Forman” of the
emperor or the Governor, as the case may be. There were no organisations of the workers during the
Mughal rule which could deal with the difficulties and problems of the members.
The wages, if paid were very meager and insufficient for a day meal too. They were also paid in the
form of old, used and tattered clothes and such other articles, when the emperor and his officials dealt
harshly with the workers cordial relations between layout and capitol could not be expected to exist.
Commercial character of the East India Company did not change the conditions of the workers. The
underdevelopment of the economy continued even under the British rule. But collective relations in
industry were modeled on the British pattern. In fact the growth of industries in different parts of the
country was based on the need for good industrial relations.
(a) Early British Rule: There was not much if scope for industrial development
in India during the early British rule. India was expected to be colonial market for British goods
till the second half of the 19th Century. A cotton mill was established in Bombay and Calcutta.
The workers were to work in subversive and deplorable conditions, while they were exploited
by their contractors. Their relations had been strained and the workers abstained themselves
from work. As a result, many disputes rose. Mining industry also started slowly. Tata Iron and
Steel industry had been established in Jamshedpur, which produced on a moderate scale.
Engineering and railway workshops, iron and brass foundries etc had also been developed in a
moderate way prior to World War-I. The modern industry in India owes a great deal to the
initiative of the Europeans. However the workers were not satisfied with the working conditions
and the worker-management relations were not cordial. Hence the Factories Act of 1881 was
passed which gave an impetus to the worker’s approach for redressal.
(b) World War-I: This was period of Boom for all employers. With the rising
prices, the profit also went up enormously. The wages of the workers, however did not keep
pace with this tendency. The economic distress brought workers together and an organised
working class movement began in the country. The unrest among the workers found an outlet in
increased strike actions among which the one at Ahmedabad and other at Chennai are famous.
During this period, as a result of ILO influence, various laws were enacted (Workmen’s
compensation act -1923, the trade unions act-1926 and the Trade disputes act – 1917)
During the second war, employers made enormous profits. The workers demanded a share in
them. Bonus and dearness allowance were granted to them but as money wages did not increase
in proportion to the rise in prices, the government tried to check dissatisfaction of workers and
consequential strike activity by prohibiting strikes under the emergency rules.
Post independence industrial relations were very much influenced by the pre-independence
industrial environments and labour management relations. Industrial unrest and shattered
worker management relations prevailed everywhere when India became independent in 1947.
Government has emerged as an arbitrator between management and workers. During the second
five year plan, certain norms, mechanisms and practices were evolved which formulate the need
of minimum wage, wage boards, guidelines on rationalization, code of discipline, code of
conduct, scheme for workers participation in management.
5. Approaches to IR (5)
Unitarist perspective
In unitarianism, the organization is perceived as an integrated and harmonious whole with the ideal of
"one happy family", where management and other members of the staff all share a common purpose,
emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach where it demands
loyalty of all employees, being predominantly managerial in its emphasis and application.
Consequently, trade unions are deemed as unnecessary since the loyalty between employees and
organizations are considered mutually exclusive, where there can't be two sides of industry. Conflict is
perceived as disruptive and the pathological result of agitators, interpersonal friction and
communication breakdown.
Module 2: Managing IR
3. Name the acts related to IR
The maintenance of harmonious industrial relations within an industry depends on the extent of
promotion and maintenance of discipline in the organizations. No organizations can grow and prosper
without effective disciplinary system. Discipline on account of employees means complying with the
predefined rules and regulations of the organization. It is a form of training that enforces organizational
rules. Conduct problems arise from the employees who fail to follow the code of conduct of the
organization. These employees are most often affected by the disciplinary system of the organization.
Such employees are often called problem employees. The problem employees comprise a small number
of employees, but they are the ones who cause the most disciplinary situations.
If employers fail to deal with problem employees, negative effects on other employees and work
groups may result. Some common disciplinary issues caused by problem employees include
absenteeism, tardiness, productivity deficiencies, pilfering, alcoholism, insubordination, misuse of
equipments and other company resources, and negligence. The goal of discipline is behavior
modification, that is, to modify unacceptable behavior and misconduct.
This approach is based on the premise that role of a discipline approach should not always be to
punish; rather, it should try to regulate the negative behavior of employees to make them better
workers. Positive discipline is a corrective action which results in improved performance, more
productivity and effective workforce. Harsh and negative punishment might work in the short
term, but the end result will eventually be employee dissatisfaction, low productivity, higher rate
of absenteeism and high turnover. This approach tries to mend the negative behavior of employees
by first providing them counseling in terms of what is expected out of them and then giving oral
and written warnings to them. Termination or discharge in extreme cases may also take place.
It is a step by step program designed to correct performance problems arising out of employee
misconduct. This approach typically follows four progressive steps to rectify offenses
committed by an employee. It suggests that actions to modify behavior become progressively
more severe as the employee continues to show improper behavior.
2. Written reprimand: It involves the documentation between employees and supervisor if the
behavior continues or if the employee further commits a serious offense. A written warning is
more official and summarizes the previous oral attempts. This written feedback is discussed
with the employee and then placed in his personnel file.
3. Suspension: The third step is suspension with¬out pay; its purpose is to emphasize the
seriousness of the offense and necessity of change.
4. Dismissal: The final step is dismissal of employee and is used only when previous steps have
failed to change unacceptable behavior.
Grievance means any type of dissatisfaction or discontentments arising out of factors related to an
employee’s job which he thinks are unfair. A grievance arises when an employee feels that something
has happened or is happening to him which he thinks is unfair, unjust or inequitable. In an organization,
a grievance may arise due to several factors such as:
Various sources of grievance may be categorized under three heads: (i) management policies, (ii)
working conditions, and (iii) personal factors
1. Grievance resulting from management policies include:
• Wage rates
• Leave policy
• Overtime
• Lack of career planning
• Role conflicts
• Lack of regard for collective agreement
• Disparity between skill of worker and job responsibility
Grievances are symptoms of conflicts in industry. Therefore, management should be concerned with
both complaints and grievances, because both may be important indicators of potential problems within
the workforce. Without a grievance procedure, management may be unable to respond to employee
concerns since managers are unaware of them. Therefore, a formal grievance procedure is a valuable
communication tool for the organization.
Open door policy: Under this policy, the aggrieved employee is free to meet the top
executives of the organization and get his grievances redressed. Such a policy works well only
in small organizations. However, in bigger organizations, top management executives are
usually busy with other concerned matters of the company. Moreover, it is believed that open
door
policy is suitable for executives; operational employees may feel shy to go to top management.
Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step procedure
for getting his grievance redressed. In this procedure, whenever an employee is confronted with a
grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with
superior’s decision, then he discusses his grievance with the departmental head. The departmental head
discusses the problem with joint grievance committees to find a solution. However, if the committee
also fails to redress the grievance, then it may be referred to chief executive. If the chief executive also
fails to redress the grievance, then such a grievance is referred to voluntary arbitration where the award
of arbitrator is binding on both the parties.
The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established
grievance procedure for the country which would be acceptable to unions as well as to management. In
the 16th session of Indian Labor Conference, a model for grievance procedure was drawn up. This
model helps in creation of grievance machinery. According to it, workers’ representatives are to be
elected for a department or their union is to nominate them. Management has to specify the persons in
each department who are to be approached first and the departmental heads who are supposed to be
approached in the second step. The Model Grievance Procedure specifies the details of all the steps that
are to be followed while redressing grievances. These steps are:
STEP 1: In the first step the grievance is to be submitted to departmental representative, who is a
representative of management. He has to give his answer within 48 hours.
STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee can take
his grievance to head of the department, who has to give his decision within 3 days.
STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he can take
the grievance to Grievance Committee. The Grievance Committee makes its recommendations to the
manager within 7 days in the form of a report. The final decision of the management on the report of
Grievance Committee must be communicated to the aggrieved employee within three days of the
receipt of report. An appeal for revision of final decision can be made by the worker if he is not
satisfied with it. The management must communicate its decision to the worker within 7 days.
The Model Grievance Procedure suggested by the National Commission on Labor involves six
successive time-bound steps each leading to the next, in case of dissatisfaction. The aggrieved worker
in the first instance will approach the foreman and tells him of his grievance orally. The foreman has to
redress his grievance and if the worker is not satisfied with this redressal, he can approach the
supervisor. The supervisor has to provide an answer within 48 hours. In the event of the supervisor not
giving an answer or the answer not being acceptable to the worker, the worker goes to the next step. At
this stage the worker (either alone or accompanied by his departmental representative) approaches the
Head of the Department who has to give an answer within three days. If the Departmental Head fails to
give an answer or if the worker is not satisfied with his answer, the worker may appeal to the Grievance
Committee, consisting of the representatives of the employer and employees
. The recommendations of this Committee should be communicated to the Manager within seven days
from the date of the grievance reaching it. Unanimous decisions, if any, of the committee shall be
implemented by the management. If there is no unanimity, the views of the members of the Committee
shall be placed before the manager for his decision. The manager has to take a decision and inform the
worker within three days.
The worker can make an appeal against the manager’s decision and such an appeal has to be decided
within a week. A union official may accompany the worker to the manager for discussion and if no
decision is arrived at this stage, both the union and management may refer the grievance to voluntary
arbitration within a week of the receipt of the management’s decision. The worker in actual practice
may not resort to all the above-mentioned steps. For example, if the grievance is because of his
dismissal or discharge he can resort to the second step directly and he can make an appeal against
dismissal or discharge.
Introduction:
Three groups of managerial decisions affect the workers of any industrial establishment and hence
the workers must have a say in it.
o Economic decisions – methods of manufacturing, automation, shutdown, lay-offs, mergers.
o Personnel decisions – recruitment and selection, promotions, demotions, transfers, grievance
settlement, work distribution.
o Social decisions – hours of work, welfare measures, questions affecting work rules and conduct of
individual worker’s safety, health, sanitation and noise control.
Participation basically means sharing the decision-making power with the lower ranks of the
organization in an appropriate manner.
Definitions:
The concept of WPM is a broad and complex one.
Depending on the socio-political environment and cultural conditions, the scope and contents of
participation change.
International Institute of Labour Studies: WPM is the participation resulting from the practices
which increase the scope for employees’ share of influence in decision-making at different tiers of
organizational hierarch with concomitant assumption of responsibility.
ILO: Workers’ participation, may broadly be taken to cover all terms of association of workers and
their representatives with the decision-making process, ranging from exchange of information,
consultations, decisions and negotiations, to more institutionalized forms such as the presence of
workers’ member on management or supervisory boards or even management by workers themselves
as practiced in Yugoslavia.
Objectives:
According to Gosep, workers’ participation may be viewed as:
o An instrument for increasing the efficiency of enterprises and establishing harmonious relations;
o A device for developing social education for promoting solidarity among workers and for tapping
human talents;
o A means for achieving industrial peace and harmony which leads to higher productivity and
increased production;
o A humanitarian act, elevating the status of a worker in the society;
o An ideological way of developing self-management and promoting industrial democracy.
Other objectives of WPM can be cited as:
o To improve the quality of working life (QWL) by allowing the workers greater influence and
involvement in work and satisfaction obtained from work; and
o To secure the mutual co-operation of employees and employers in achieving industrial peace; greater
efficiency and productivity in the interest of the enterprise, the workers, the consumers and the nation.
The main implications of workers’ participation in management as summarized by ILO:
o Workers have ideas which can be useful;
o Workers may work more intelligently if they are informed about the reasons for and the intention of
decisions that are taken in a participative atmosphere.
Importance:
Unique motivational power and a great psychological value.
Peace and harmony between workers and management.
Workers get to see how their actions would contribute to the overall growth of the company.
They tend to view the decisions as `their own’ and are more enthusiastic in their implementation.
Participation makes them more responsible.
o They become more willing to take initiative and come out with cost-saving suggestions and growth-
oriented ideas.
Empowered Teams:
Empowerment occurs when authority and responsibility are passed on to the employees who then
experience a sense of ownership and control over their jobs.
Employees may feel more responsible, may take initiative in their work, may get more work done,
and may enjoy the work more.
For empowerment to occur, the following approach needs to be followed as compared to the
traditional approach:
Element Traditional Org. Empowered Teams
Organizational structure Layered, individual Flat, team
Job design Narrow, single task Whole process, multiple tasks
Management role Direct, control Coach, facilitate
Leadership Top-down Shared with the team
Information flow Controlled, limited Open, shared
Rewards Individual, seniority Team-based, skill-based
Job process Managers plan, control, improve Teams plan, control, improve
Financial Participation:
This method involves less consultations or even joint decisions.
Performance of the organization is linked to the performance of the employee.
The logic behind this is that if an employee has a financial stake in the organization, he/she is likely
to be more positively motivated and involved.
Some schemes of financial participation:
o Profit-linked pay
o Profit sharing and Employees’ Stock Option schemes.
o Pension-fund participation.
Limitations of participation:
Technology and organizations today are so complex that specialized work-roles are required.
o This means employees will not be able to participate effectively in matters beyond their particular
environment.
Everybody need not want participation.
The role of trade unions in promoting participative management has been far from satisfactory.
Employers are unwilling to share power with the workers’ representatives.
Managers consider participative management a fraud.
Informal industrial conflict is so labelled because it is not based on any systematic organization, results
directly from a sense of grievance, and supposedly is wholly expressive in nature. Many forms of
industrial sabotage which appear irrational would constitute industrial conflict in this sense, as would
purely individualized and even unconscious forms of protest, including absenteeism, frequent job-
changing, negligence, and even accidents at work. Industrial sociologists have also regarded
spontaneous walk-outs and strikes as examples of informal industrial conflict, as well as the constant
opposition to management expressed in workgroup norms regulating output, restrictive practices,
secrecy, or other guarded treatment of superiors. The idea of informal industrial conflict thus draws
attention to the roots of behaviour which may appear incomprehensible from the point of view of
management. Used too widely, however, it loses its vigour.
Formal industrial conflict is reserved for organized expressions of conflict articulated through a trade-
union or other worker representative. Its supposed purpose is strategic or instrumental rather than (or as
well as) expressive and may often involve workers who, by themselves, have no feelings or personal
involvement regarding the issues at stake in the dispute. Its characteristic form is the organized strike:
that is, a withdrawal of labour such as to constitute a temporary breach of contract, using the collective
strength of the workforce to avoid sanctions and achieve adjustments to pay or conditions of work.
Strikes may be reinforced by other types of formal sanction such as the go-slow and work to rule. They
may be confined to those directly affected or may take the form of sympathy strikes by workers in
related jobs and industries. Strikes are deemed to be official if they have been called at the behest of the
union leadership and in accordance with the law and with procedural collective-bargaining agreements.
The term unofficial or ‘wildcat’ is applied to strikes waged through unrecognized leaders such as shop
stewards, or by a non-recognized union, or in some other way which breaches established collective-
bargaining laws and procedures. Obviously, there is not a clear distinction in practice between wildcat
strikes and some of the more collective forms of unofficial conflict.
At one time there was much debate in industrial sociology about the term strike-proneness—
epitomizing the search for structural causes of industrial conflict. Attempts were made to link patterns
of strike activity with industry type, with the degree of isolation and class homogeneity of the work
community, with the use of mass-production technologies, the bureaucratization of management, and
the structuring of work groups. Though weak correlations have been found with some of these factors,
the frequency and incidence of strikes and similar forms of unrest is so erratic that plenty of discrepant
occurrences could be found. Economists have had some success linking long-term strike patterns to
economic indicators but they, like other investigators in this mould, are hampered by the varying
quality and scope of national and international strike statistics. The conclusions tend therefore to be
pitched at a highly general level. A fundamental objection to such structural explanations is that the
more overt forms of industrial conflict have to be socially organized as well as provoked. Hence,
explanations of them have to bear in mind the strategic considerations perceived by workers and their
leaders, as well as the meaning of industrial action, which can (and clearly does) vary greatly between
industrial relations cultures. It is said, for example, that the wearing of red hats during work is as
serious an expression of dissent in the Japanese context as a protracted strike is in the British.
Collective bargaining is process of joint decision making and basically represents a democratic way of
life in industry. It is the process of negotiation between firm’s and workers’ representatives for the
purpose of establishing mutually agreeable conditions of employment. It is a technique adopted by two
parties to reach an understanding acceptable to both through the process of discussion and negotiation.
ILO has defined collective bargaining as, negotiation about working conditions and terms of
employment between an employer and a group of employees or one or more employee, organization
with a view to reaching an agreement wherein the terms serve as a code of defining the rights and
obligations of each party in their employment/industrial relations with one another.
Collective bargaining involves discussions and negotiations between two groups as to the terms and
conditions of employment. It is called ‘collective’ because both the employer and the employee act as a
group rather than as individuals. It is known as ‘bargaining’ because the method of reaching an
agreement involves proposals and counter proposals, offers and counter offers and other negotiations.
2. Negotiation (2)
a discussion intended to produce an agreement
3. Arbitration (2)
Arbitration entails the appointment of a third party to act as adjudicator in a dispute and to decide on
the terms of settlement. Arbitration differs from the conciliation & mediation in that it does not
promote the continuation of collective bargaining. In arbitration a third party actively intervenes in the
dispute & takes over the role of a decision maker. The arbitrator listens to & investigates the demands
& counter demands on both sides, & decides on a final settlement. Whatever settlement will become
binding on both parties.
4. Conciliation (2)
To overcome the distrust or animosity of; appease.
2. To regain or try to regain (friendship or goodwill) by pleasant behavior.
3. To make or attempt to make compatible; reconcile.
4.
5. Adjudication (2)
Adjudication is the 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:
1. Disputes between private parties, such as individuals or corporations.
2. Disputes between private parties and public officials.
3. Disputes between public officials or public bodies.
The trade unionism in India developed quite slowly as compared to the western nations. Indian trade
union movement can be divided into three phases.
The growth of trade union movement was slow in this phase and later on the Indian Factory Act of
1881 was amended in 1891. Many strikes took place in the two decades following 1880 in all industrial
cities. These strikes taught workers to understand the power of united action even though there was no
union in real terms. Small associations like Bombay Mill-Hands Association came up by this time.
The third phase began with the emergence of independent India (in 1947). The partition of country
affected the trade union movement particularly Bengal and Punjab. By 1949, four central trade union
organizations were functioning in the country:
1. The All India Trade Union Congress,
2. The Indian National Trade Union Congress,
3. The Hindu Mazdoor Sangh, and
4. The United Trade Union Congress
The working class movement was also politicized along the lines of political parties. For instance
Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. The
AITUC is the trade union arm of the Communist Party of India. Besides workers, white-collar
employees, supervisors and managers are also organized by the trade unions, as for example in the
Banking, Insurance and Petroleum industries.
It changes ownership, which may bring out changes not only in work org and employment but also in
trade union (TU) dynamics.
It changes the work organization by necessitating retaining and redeployment.
It affects the right of workers and Trade unions, including job/union security, income security, and
social security.
Trade unions, mgt and government are responding to these challenges through various types of new,
innovative, or model arrangements to deal with different aspects of disinvestment like
„X Making workers the owners through issue of shares or controlling interests (latter is still not in
India)
„X Negotiating higher compensation for voluntary separations
„X Safeguarding existing benefits
„X Setting up further employment generating programs, and
„X Proposals for setting up new safety nets that not only include unemployment insurance but also
skills provisions for redundant workers.
Deregulation: - it is tried to ensure that pubic sector/ government employees receive similar protection
as is provided in public/government employment. The worst affected are the pension provisions. this
means, usually a reduction in pension benefits and an uncertainty concerning future provision of
pension benefit due to
Decentralization of IR is seen in terms of the shift in consideration of IR issues from macro to micro
and from industry to enterprise level. When the coordination is at the national or sectoral level then
work in the whole industry can be paralyzed because of conflict in IR. But when the dispute is at the
bank level, in the absence of centralized coordination by Trade unions only work in that bank is
paralyzed and the other banks function normally. This weakens the bargaining power of unions.
New actors and the emerging dynamics: - Earlier IR was mainly concerned with Trade unions, mgt and
government but now consumers and the community are also a part of it. When the right s of consumers
and community are affected, the rights of workers and unions and managers / employers take a back
seat. Hence there is ban on bandh and restrictions even on protests and dharnas.
Increasingly Trade unions are getting isolated and see a future for them only by aligning themselves
with the interests of the wider society.
Pro-labour-pro-investor policies
This leads to decline in strength and power of Trade unions if not in numbers. Unions have to make
alliances with the society, consumers and community and various civil society institutions otherwise
they will find themselves dwindling.
Declining TU density
In government and public sectors workforce is declining because of non-filling of vacancies and
introduction of voluntary / early separation schemes. New employment opportunities are shrinking in
these sectors.
In the private sectors particularly in service and software sector, the new, young, and female workers
are generally less eager to join unions.
Not because of improved IR but because of the fear of job security, concern about the futility of strikes,
and concern to survive their organization for their income survival.
Trade unions have become defensive evident from the fact that there is significant shift from strikes to
law suits. Instead of pressing for higher wages and improved benefits, Trade unions are pressing for
maintenance of existing benefits and protection and claims over non-payment of agreed wages and
benefits.
Collective Bargaining
In India, while labour is in the Concurrent List, state labour regulations are an important determinant of
industrial performance. The Survey notes evidences that states that had enacted more pro-worker
regulations, had lost out on industrial production in general.
However, on the upside, the Survey said there was a secular decline in the number of strikes and
lockouts during 2000-04. The total number of strikes and lockouts went down 13.6% from 552 in 2003
to 477 in 2004. The decline was sharper in the number strikes than in lockouts, it noted.
While most of the strikes and lockouts were in private sector establishments, overall industrial relations
had improved, especially between 2003 and 2004, when there was a decline in the number of mandays
lost by 6.39 million.
Among states, the maximum number of strikes and lockouts were in Left-ruled West Bengal, followed
by Tamil Nadu and Gujarat. The sectors which saw instances of industrial disturbance were primarily
textiles, engineering, chemical and food product industries.
Stressing on the importance of labour reforms to enhance productivity, competitiveness and
employment generation, the Survey noted that a beginning had already been made in that direction. For
instance, in the current year, there was a proposal to enhance the wage ceiling from Rs 1,600 per month
to Rs 6,000 per month through The Payment of Wages (Amendment) Act 2005. Also, the proposal to
empower the central government to further enhance the ceiling in future by way of notification is
already in effect from November 9, 2005.
As regards women working on night shifts, The Factories (Amendment) Bill 2005, was under
consideration to provide them flexibility and safety.
Also, to simplify the procedure for managements to maintain registers and filing returns, an amendment
of Labour Laws (Exemption from Furnishing returns and maintaining Registers by Certain
Establishments) Act 1988, was under consideration.