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Industrial Relations Contextual and Constitutional Frameworks

The Contextual Framework


IR is a designation of a whole field of relationships that exist because of the necessary collaboration of men and women in the employment process of industry. - Dale Yonder It is not the cause but an effect of social, political and economic forces It has two faces, like a coin, cooperation and conflict. Relationship between labour and management is based on mutual adjustment on interests and goals, because labour and capital constantly strive to maximise their preferred values by applying resources to institutions.

Major Issues involved in the IR Process are: Terms of Employment : Wages, DA, Bonus, Fringe Benefits Working Conditions : leave, working hours, health, safety and welfare Non-employment : job security, manning and employment impact of work changes Personnel issues : discipline, promotional opportunities Others : Recognition of Trade Unions Unorganized Labour in India has many disadvantages in bargaining position - States intervention and industrial peace

B. Emergence of IR Problem: The loss of workers individuality and the impersonality are factors which, among others, aggravate labour-management relations C. The Dimensions of the Problem - Dominance of Agriculture in India D. Industrial unrest and work stoppages E. Unemployment and Under-Employment as Barriers to improving IR F. Other Difficulties in Healthy Growth of IR thro Labour Law Policy: Low Wages, Ignorance and Illiteracy, Heterogeneity, Absenteeism, Women Workers, Child Labour.

Community Prescriptions
Initially began to strengthen bargaining position of the workers TU Act, 1926 protects workmen from criminal conspiracy, civil conspiracy and restraint of trade confers upon them certain right ID Act, 1947 to protect community interest by regulating IDs IE(SO) Act, 1946 makes employers to define with sufficient precision the conditions of employment and make them known to the workers.

Constitutional Framework and IR


A. The Policy: On 26.11.1949 it was resolved to constitute India into a Sovereign, Socialist, Secular Democratic Republic and to secure to all its citizens: Justice; social, economic and political Liberty of thought, expression, belief, faith and worship Equality of status and opportunity and to promote among them all: fraternity assuring the dignity of the individual and the unity and integrity of the Nation.

The State was directed to strive to secure (a) an adequate means of livelihood; (b) the proper distribution of ownership and control of the material resources of the community so that it may subserve the common need; (c) the prevention of the concentration of wealth and means of production; (d) equal pay for equal work for men and women; (e) the health and strength of workers; (f) right to work, to education and to public assistance in cases of undeserved want; (g) just and humane conditions of work and for maternity relief; (h) living wage and decent std of life of labourers; (i) the participation of workers in management

B. Constitutional Guarantee: Article 14 provides that the state shall not deny to any person equality before the law or the equal protection of the laws within the territory of India Art 16 guarantees equality of opportunity in matters of public employment Art 19 guarantees the right to freedom of speech and expression, to assemble peacefully and without arms, to form associations or unions, to acquire, hold and dispose of property and to practise any profession, or to carry on any occupations, trade or business.

Under Article 32 Public Interest Litigation can be entertained from the public who represents the cause of others who cannot afford to approach court Writ is maintainable for mere violation of labour laws where there is no breach of any fundamental right. Prohibition of Traffic in Human Beings and Forced Labour (Audi alterem partem)

Distribution of Law Making Power: Union List : List I Item 13: Participation in international conferences, associations and other bodies & implementation of decisions made thereat. Item 55: Regulation of labour and safety in mines and oil fields Item 61: Industrial disputes concerning union employees. Item 94: Inquires, surveys and statistics for purposes of any of the matters in the List.

Concurrent List: List III: Item 20 : Economic and Social Planning Item 22: Trade unions; industrial and labour disputes Item 23: Social security and social insurance; employment and unemployment Item 24: Welfare of labour including conditions of work, provident fund, employers liability, workmens compensation, invalidity and old age pension and maternity benefits Item 25: Vocational and technical training of labour Item 36: Factories Item 37: Boilers Item 43: Inquiries and statistics for the purposes of any of the matters specified in List II or List III State List: List II Item 9: Relief of the disabled and unemployable.

National Commission on Labour & Industrial Law GOI set up first NCL in Dec 1966 to undertake comprehensive review of Labour Law. In the sphere of IR it made following recommendations: 1. A beginning to be made in the move towards collective bargaining by declaring that it will acquire primacy in the procedure of settling disputes statutory recognition of representative union as the bargaining agent place of strike/lockout in the overall scheme of IR to be defined

2. With the growth of collective bargaining, the ground will be cleared for wider acceptance of voluntary arbitration 3. Desirable to make recognition compulsory under a central law in all undertaking employing 100 or more workers 30% of membership is eligible criterion for a union to seek recognition as bargaining agent in an establishment 25% in industry in a local area National/State IR Commission (IRC) will have the power to decide the rep character of union 4. The main functions of the National/State IRCs will be (a) adjudication in industrial disputes, (b) conciliation and (c) certification of unions as representative unions

5. In essential industries/services, when collective bargaining fails and when the parties to the dispute do not agree to arbitration, the IRC shall adjudicate upon the disputes and its award shall be final and binding. On 11.1.99 GOI announced its decision to set up the second National Commission on labour to make suggestions to rationalize laws for workers in the organized sector and recommend an umbrella law to protect labour in Unorganized employments.

Approaches to IR
1. Systems Approach: John Dunlop considers IR as a distinctive sub-system of society casting of 3 principal actors: managers, workers and government agencies the interactions among the actors are influenced by several forces in the environment, the most important among them being technology, market and power positions.

2. Pluralist Approach: Associated with Flanders, Clegg and Fox the essence of this approach is that every industrial organization is a coalition of various conflicting interest groups such as employees, shareholders, consumers, the community, the government and so on. the problem of management in this situation is to control and balance the activities of various groups which is not when we regard IR as essentially stable and cohesive.

3. Marxist Approach: Represented by Hyman and others this holds that to define IR exclusively in terms of rules and regulations (as the other two approaches do) is far too restrictive. conflict can never be held in check unless capital accepts that labour has a right to an equal share in power it would be more appropriate to define IRs as the study of processes of control over work relations. IR is about who controls, what, how and why.

Conditions for Good IR


History of IR in the organization Economic Satisfaction of Workers Social and psychological satisfaction of workers Off-the-job conditions of workers Enlightened and responsible labour unions Negotiating skills and attitudes of management and workers Public Policy and legislation Education of workers Nature of industry and business cycles.

Causes of Poor IR
Uninteresting Nature of work Political nature of Unions Poor wages Occupational Instability Poor Behavioural climate

Effects of Poor IR
Multiplier Effect Fall in Normal Tempo Resistance to Change Frustration and Social Cost

Suggestion to Improve IR
1. Both management and union should develop constructive attitudes towards each other 2. All basic policies and procedures relating to IR should be clear to everybody in the organization and to the union leaders 3. The personnel manager should remove any distrust by convincing the union of the companys integrity and his own sincerity and honesty 4. The personnel manager should not vie with the union to gain workers loyalty. He should not try to wean them away from the union 5. Management should encourage right kind of union leadership 6. After the settlement is reached the agreement should be properly administered

HRD/OD Interventions
IR Problem Alienation of Employees Intervention -Training -Work Redesign -Job Enrichment -Counseling -Review of Disciplinary Machinery -Training -Training -Ensuring Effective Communication

Problem of Discipline

Lack of Knowledge about roles, regulations

Delay in personnel decision -Research for identifying making the causes of delay -Reorganization of personnel functions Mistrust between management and union -Survey research -Information sharing -Union-management interface -Collaborative projects (e.g. employee welare/education etc.)

Lack of collaboration

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