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Industrial Relations

Industrial Relations

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Industrial Relations

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  1. Industrial Relations Definition: The ILO stated that “ Industrial Relations deal with either the relationships between the state & employer’s and worker’s organizations or the relationships between the occupational Organizations themselves”.

  2. Three Actors of IR • Workers & their organizations • Employers & their organizations • Government

  3. Conditions For Congenial IR • Existence of strong, well organized & Democratic Employees Unions • Existence of sound & organized employees union • Spirit of collective bargaining & willingness to resort to voluntary Arbitration • Maintenance of industrial peace.

  4. Trade Unions Definition: The Indian Trade Union Act 1926 defines a trade union as “any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen & workmen or between employers & employers or for imposing restrictive conditions on the conduct of any trade or business, & includes any federation of two or more trade union.”

  5. Why do workers join trade union • To attain economic security • To improve their bargaining power • Concern about wage & salary benefits • Work environment to be safe & healthy • Need for belongingness • To ventilate the workers grievances to the management

  6. Trade Union Membership Trade Union membership is on the decline India around 10% USA = 10% France=8%

  7. National Level Federation • AITUC- All India Trade Union Congress-CPI_1920. • INTUC-Indian National Trade Union Congress-1947-CP. • HMS-Hind Mazdoor Sabha-1948. • CITU- Centre of Indian Trade Unions 1971-CPI(M).

  8. Employer’s Federation • FICCI-Federation of Indian Chambers of Commerce & Industry-1927. • AIOE-All India organization of employers. • CIE-Council of Indian Employers. • EFI-Employers Federation of India • ASSOCHAM-Associated Chambers of Commerce & Industry of India.

  9. Issues of Trade Unions • Uneven growth of unionism • Small size of unions • Financial Weakness • Multiplicity of unions • Inter-union Rivalry • Leadership Issue • Politics & unions

  10. Definition of Industrial Dispute • As per Section 2(k) of ID Act,1947 • “industrial dispute” means any dispute or difference between employers and employers ,or between employers and workmen, or between workmen and workmen , which is connected with the employment or non-employment or the terms of employment or with the conditions of labour , of any person.

  11. ID Prevention Machinery • Workers participation in management • Employee grievance redressal machinery • Voluntary Arbitration • Conciliation • Adjudication: 1. Labour court 2.Industrial Tribunal 3.National Tribunal

  12. Machinery For The Settlement of Industrial Disputes In India • Works committees: As per the Industrial Disputes Act, 1947, works committees have to be set up all those industrial units which employ 100 or more persons. It is basically a consultative body • Giving greater participation to workers • Ensuring close interaction between labour and management • Generating cooperative atmosphere for negotiation between parties • Opening the doors to unions to have a clear view of what is going on within the unit • Strengthening the spirit of voluntary settlement of disputes • Joint Management Councils: The JMC normally consists of equal number of representatives of workers and employers looking after three things: information sharing, consultative and administrative matters relating to welfare, safety, training etc and the formulation of standing orders.(of course, without encroaching on the jurisdiction of works committees)

  13. Machinery For The Settlement of Industrial Disputes In India • Standing orders: These are the rules and regulations which govern the conditions of employment of workers. The Industrial Employment (standing orders) Act of 1946 provides for the framing of standing orders in all industrial undertakings employing 100 or more workers. • Grievance procedure: A model grievance procedure as suggested by the Indian Labour Conference, 1958 has more or less been widely accepted in India now. • Code of discipline: It consists of a set of self-imposed obligations voluntarily formulated by the central organization of workers and employers.

  14. Industrial Disputes: Settlement Machinery • Conciliation: The practice by which the services of a neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution. • Conciliation officer: an authority appointed by the government to mediate disputes between parties brought to his notice; enjoying the powers of a civil court. He is supposed to give judgement within 14 days of the commencement of the conciliation proceedings. • Board of conciliation: The Board is an adhoc, tripartite body having the powers of a civil court created for a specific dispute(when the conciliation officer fails to resolve disputes within a time frame, the board is appointed) • Court of enquiry: In case the conciliation proceedings fail to resolve a dispute, a court of enquiry is constituted by the government to investigate the dispute and submit the report within six months.

  15. Machinery For The Settlement of Industrial Disputes In India • Voluntary arbitration: It is he process in which the disputing parties show willingness to go to an arbitrator (a third party) and submit to his decision voluntarily. • Adjudication: It is the process of settling disputes compulsorily through the intervention of a third party appointed by the Government. The Industrial Disputes Act provides a three-tier adjudication machinery consisting of: • Labour court • Industrial tribunal • National tribunal

  16. Resort to Voluntary arbitration at Philips India

  17. Discipline Discipline is employees self control which prompts him to willingly co-operate with the organizational standards ,rules, objectives ,etc.

  18. Mc Gregor’s Red Hot Stove Rule • Immediate • Impersonal • Consistent • Foreseeable.