Professional Documents
Culture Documents
The relationship between Employer and employee or trade unions is called Industrial Relation.
Harmonious relationship is necessary for both employers and employees to safeguard the
interests of the both the parties of the production. In order to maintain good relationship with the
employees, the main functions of every organization should avoid any dispute with them or settle
it as early as possible so as to ensure industrial peace and higher productivity. Personnel
management is mainly concerned with the human relation in industry because the main theme of
personnel management is to get the work done by the human power and it fails in its objectives if
good industrial relation is maintained. In other words good Industrial Relation means industrial
peace which is necessary for better and higher productions.
Definition:-
i. Industrial Relation is that part of management which is concerned with the manpower of the
enterprise – whether machine operator, skilled worker or manager. BETHEL, SMITH &
GROUP
ii. Industrial Relation is a relation between employer and employees, employees and employees
and employees and trade unions. - Industrial dispute Act 1947
iii. While moving from jungle of the definitions, here, Industrial Relation is viewed as the
“process by which people and their organizations interact at the place of work to establish the
terms and conditions of employment.”
1. Industrial Relation do not emerge in vacuum they are born of employment relationship in an
industrial setting. Without the existence of the two parties, i.e. labor and management, this
relationship cannot exist. It is the industry, which provides the environment for industrial
relations.
2. Industrial Relation are characterized by both conflict and co-operations. This is the basis of
adverse relationship. So the focus of Industrial Relations in on the study of the attitudes,
relationships, practices and procedure developed by the contending parties to resolve or at least
minimize conflicts.
3. As the labor and management do not operate in isolations but are parts of large system, so the
study of Industrial Relation also includes vital environment issues like technology of the
workplace, country’s socio-economic and political environment, nation’s labor policy, attitude of
trade unions workers and employers.
4. Industrial Relation also involve the study of conditions conductive to the labor, managements
co-operations as well as the practices and procedures required to elicit the desired co-operation
from both the parties.
5. Industrial Relations also study the laws, rules regulations agreements, awards of courts,
customs and traditions, as well as policy framework laid down by the governments for eliciting
co-operations between labor and management. Besides this, it makes an in-depth analysis of the
interference patterns of the executive and judiciary in the regulations of labor–managements
relations.
In fact the concepts of Industrial Relations are very broad-based, drawing heavily from a variety
of discipline like social sciences, humanities, behavioral sciences, laws etc.
In fact, Industrial Relation encompasses all such factors that influence behavior of people at
work. A few such important factors are details below:
Poor Industrial Relation produces highly disquieting effects on the economic life of the country.
We may enumerate the ill-effects of poor Industrial Relations as under:
1. Multiplier effects: Modern industry and for that matter modern economy are interdependent.
Hence although the direct loss caused due to industrial conflict in any one plant may not be very
great, the total loss caused due to its multipliers effect on the total economy is always very great.
2. Fall in normal tempo : poor Industrial Relations adversely effect the normal tempo of work so
that work far below the optimum level. Costs build up. Absenteeism and labor turnover increase.
Plants discipline breaks down and both the quality and quality of production suffer.
3. Resistance of change : Dynamic industrial situation calls for change more or less continuously.
Methods have to be improved. Economics have to be introduced. New products have to be
designed, produced and put in the market. Each of these tasks involves a whole chain of changes
and this is resisted bitterly if these are industrial conflict.
4. frustration and social cost : every man comes to the work place not only to earn a living. He
wants to satisfy his social and egoistic needs also. When he finds difficulty in satisfying these
needs he feels frustrated. Poor Industrial Relations take a heavy toll in terms of human
frustration. They reduce cordiality and aggravate social tension.
a. Both management and unions should develop constructive attitudes towards each other
b. All basic policies and procedures relating to Industrial Relation should be clear to everybody
in the organization and to the union leader. The personnel manager must make certain that line
people will understand and agree with these policies.
c. The personnel manager should remove any distrust by convincing the union of the company’s
integrity and his own sincerity and honesty. Suspicious, rumors and doubts should all be put to
rest.
d. The personnel manager should not vie with the union to gain workers‘loyal to both the
organization. Several research studies also confirm the idea of dual allegiance. There is strong
evidence to discard the belief that one can owe allegiance to one group only.
e. Management should encourage right kind of union leadership. While it is not for the
management to interfere with union activities, or choose the union leadership, its action and
attitude will go a long way towards developing the right kind of union leadership. “Management
gets the union it deserves” is not just an empty phrase. Managements
The healthy industrial relations are key to the progress. Their significance may be discussed as
under -
1. 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. The resources are fully utilized, resulting in the maximum possible production. There is
uninterrupted flow of income for all. Smooth running of an industry is of vital importance for
several other industries; to other industries if the products are intermediaries or inputs; to
exporters if these are export goods; to consumers and workers, if these are goods of mass
consumption.
2. Reduction in Industrial Disputes – Good industrial relation 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. Strikes, lockouts,
go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do
not spring up in an atmosphere of industrial peace. It helps promoting co-operation and
increasing production.
3. 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. Every worker feels that he is a co-owner of the gains of
industry. The employer in his turn must realize that the gains of industry are not for him along
but they should be shared equally and generously with his workers. In other words, complete
unity of thought and action is the main achievement of industrial peace. It increases the place of
workers in the society and their ego is satisfied. It naturally affects production because mighty
co-operative efforts alone can produce great results.
4. 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. It is the business of leadership in the ranks of workers, employees and Government to
work out a new relationship in consonance with a spirit of true democracy. Both should think
themselves as partners of the industry and the role of workers in such a partnership should be
recognized. On the other hand, workers must recognize employer’s authority. It will naturally
have impact on production because they recognize the interest of each other.
5. New Programmes – New programmes for workers development are introduced in an
atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the
efficiency of workers resulting in higher and better production at lower costs.
6. Reduced Wastage – Good industrial relations are maintained on the basis of cooperation and
recognition of each other. It will help increase production. Wastages of man, material and
machines are reduced to the minimum and thus national interest is protected.
Thus, from the above discussion, it is evident that good industrial relation is the basis of higher
production with minimum cost and higher profits. It also results in increased efficiency of
workers. New and new projects may be introduced for the welfare of the workers and to promote
the morale of the people at work.
An economy organized for planned production and distribution, aiming at the realization of
social justice and welfare of the massage can function effectively only in an atmosphere of
industrial peace. If the twin objectives of rapid national development and increased social justice
are to be achieved, there must be harmonious relationship between management and labor.
The term “Industrial Relations” is different from “Human Relations”. Industrial relations refer to
the relations between the employees and the employer in an industry. Human relations refer to a
personnel-management policy to be adopted in industrial organizations to develop a sense of
belongingness in the workers improves their efficiency and treat them as human beings and make
a partner in industry.
Industrial relations cover the matters regulated by law or by collective agreement between
employees and employers. On the other hand, problems of human relations are personal in
character and are related to the behavior of worker where morale and social elements
predominated. Human relations approach is personnel philosophy which can be applied by the
management of an undertaking. The problem of industrial relations is usually dealt with a three
levels – the level of undertaking, the industry and at the national level. To sum up the term
“Industrial Relations” is more wide and comprehensive and the term “Human Relations” is a part
of it.
Good industrial relations depend on a great variety of factors. Some of the more obvious ones are
listed below:
1. History of industrial relations – No enterprise can escape its good and bad history of industrial
relations. A good history is marked by harmonious relationship between management and
workers. A bad history by contrast is characterized by militant strikes and lockouts. Both types
of history have a tendency to perpetuate themselves. Once militancy is established as a mode of
operations there is a tendency for militancy to continue. Or once harmonious relationship is
established there is a tendency for harmony to continue.
2. Economic satisfaction of workers – Psychologists recognize that human needs have a certain
priority. Need number one is the basic survival need. Much of men conducted are dominated by
this need. Man works because he wants to survive. This is all the more for underdeveloped
countries where workers are still living under subsistence conditions. Hence economic
satisfaction of workers is another important prerequisite for good industrial relations.
3. Social and Psychological satisfaction – Identifying the social and psychological urges of
workers is a very important steps in the direction of building good industrial relations. A man
does not live by bread alone. He has several other needs besides his physical needs which should
also be given due attention by the employer. An organization is a joint venture involving a
climate of human and social relationships wherein each participant feels that he is fulfilling his
needs and contributing to the needs of others. This supportive climate requires economic rewards
as well as social and psychological rewards such as workers’ participation in management, job
enrichment, suggestion schemes, re-dressal of grievances etc.
4. Off-the-Job Conditions – An employer employs a whole person rather than certain separate
characteristics. A person’s traits are all part of one system making up a whole man. His home life
is not separable from his work life and his emotional condition is not separate from his physical
condition. Hence for good industrial relations it is not enough that the worker’s factory life alone
should be taken care of his off-the-job conditions should also be improved to make the industrial
relations better.
5. Enlightened Trade Unions – The most important condition necessary for good industrial
relations is a strong and enlightened labor movement which may help to promote the status of
labor without harming the interests of management, Unions should talk of employee contribution
and responsibility. Unions should exhort workers to produce more, persuade management to pay
more, mobilize public opinion on vital labor issues and help Government to enact progressive
labor laws.
6. Negotiating skills and attitudes of management and workers – Both management and workers’
representation in the area of industrial relations come from a great variety of backgrounds in
terms of training, education, experience and attitudes. These varying backgrounds play a major
role in shaping the character of industrial relations. Generally speaking, well-trained and
experienced negotiators who are motivated by a desire for industrial peace create a bargaining
atmosphere conducive to the writing of a just and equitable collective agreement. On the other
hand, ignorant, inexperienced and ill-trained persons fail because they do not recognize that
collective bargaining is a difficult human activity which deals as much in the emotions of people
as in their economic interests. It requires careful preparation and top –notch executive
competence. It is not usually accomplished by some easy trick or gimmick. Parties must have
trust and confidence in each other. They must possess empathy, i.e. they should be able to
perceive a problem from the opposite angle with an open mind. They should put themselves in
the shoes of the other party and then diagnose the problem. Other factors which help to create
mutual trust are respect for the law and breadth of the vision. Both parties should show full
respect for legal and voluntary obligations and should avoid the tendency to make a mountain of
a mole hill.
7. Public policy and legislation: - when Government, regulates employee relations, it becomes a
third major force determining industrial relations the first two being the employer and the union.
Human behavior is then further complicated as all three forces interact in a single employee
relation situation. Nonetheless, government in all countries intervenes in management – union
relationship by enforcing labor laws and by insisting that the goals of whole society shall take
precedence over those of either of the parties. Government intervention helps in three different
ways 1) it helps in catching and solving problems before they become serious. Almost every one
agrees that it is better to prevent fires them to try stopping them after they start; 2) It provides a
formalized means to the workers and employers to give emotional release to their dissatisfaction;
and 3) It acts as a check and balance upon arbitrary and capricious management action.
8. Better education: - with rising skills and education workers’ expectations in respect of rewards
increase. It is a common knowledge that the industrial worker in India is generally illiterate and
is misled by outside trade union leaders who have their own axe to grind. Better workers’
education can be a solution to this problem. This alone can provide worker with a proper sense of
responsibility, which they owe to the organization in particular, and to the community in general.
9. Nature of industry: - In those industries where the costs constitute a major proportion of the
total cast, lowering down the labor costs become important when the product is not a necessity
and therefore, there is a little possibility to pass additional costs on to consumer. Such periods,
level of employment and wages rise in decline in employment and wages. This makes workers
unhappy and destroys good industrial relations.
MODELS/THEORIES
The subject of industrial relations has undergone several changes because of vital contributions
made by a number of disciplines. In developing theoretical models of industrial relations, it
becomes necessary to appreciate the contributions made by various social scientists. Such
models can be used for analysing concrete situations and to build a systematic and
comprehensive theory of industrial relations. The
different perspectives and theories enable us to understand industrial relations institutions,
structures, processes and behaviour of individuals. The practitioners of industrial relations
consider theory as the opposite of practice. Nevertheless, any systematic practice implies some
theory. Basically, there are two main stands in theorising industrial relations. One group
(externalists) lays emphasis on external factors like state of technology, methods of production,
supply and demand in the product market and in the labour market, legalpolitical relationships,
and so on. The environmental theorists have been primarily
economists and to a smaller extent, lawyers, political scientists, and sociologists. They lay
emphasis on the nexus between broad environmental changes and employeremployee relations.
The in-plant theories of internalists have their origin in the “human relations school” propounded
by Elton Mayo and others. These theorists stress on employee motivation, attitude and morale,
styles of supervision, and forms of
management leadership. A.W.J. Craig presented the input-output model of industrial relations
system in the late 1960s. In his model, the actors and the context are similar to those of Dunlop’s
model. The main component of Craig’s model are: (a) the inputs or the goals, and the values and
power of the actors; (b) mechanism for the conversion of inputs into outputs; (c) the outputs of
the system are the financial, psychological and social rewards for the workers. The output is in
the form of the rules, which govern matters such as pay, working conditions, and hours of work.
One of the major objectives of theorising industrial relations is to help the practitioners to
understand what is taking place and causes for the same. Industrial relations theory might be
useful to practitioners if it could help them in three respects: first, to understand the present
industrial relations situation; second, to forecast trends and to predict what will happen under
specific given conditions; and third, to help the practitioners to bring about certain desired
changes and to avoid certain other changes in the present or in the future state of industrial
relations.
One of the most difficult attempts in industrial relations is to build up a theory and to generalise
on its activity, which is highly dynamic. A host of factors, both internal and external, and conflict
generating as well as conflict resolving factors, influence the shape of industrial relations
activity. The industrial relations system in an organization works in the context of pressures,
tensions and conflicts, and is mainly related to power politics, economic, cultural and other
differences. An inter-mix of such dynamic factors, and key institutional variables, is necessary in
theorising industrial relations.
SUMMARY
The term “industrial relations” refers to the complexity of human relationships, which emerge in
work situations. The subject of industrial relations deals with certain regulated and
institutionalised relationships in industry. The employment relationship in any work situation
provides the setting for industrial relations. With this objective, the workers as a group form
trade unions, the employers form their own associations, and the state provides institutions for
the regulation of relations. The field of industrial relations has a multi-disciplinary base. It draws
upon concepts from the established disciplines in social sciences, such as economics, sociology,
and psychology. These disciplines have developed theories of industrial relations, but they differ
considerably in their theoretical framework and practical application. The theorising in this field
has developed in the direction of (a) environmental or external theories, and (b) internalists or in-
plant theories. The prominent contribution to the industrial relations literature is the ‘systems’
approach developed by John T. Dunlop who views industrial relations system as a sub-system of
society.
The staff employed in the industrial relations department should know the limitations within
which it has to function. The industrial relations director generally has several assistants who
help him to perform his functions effectively, and he usually reports directly to the president or
chairman of the board of directors of an organization.
The basic requirements on which a successful industrial relations programme is based are :-
a) Top Management Support: - Since industrial relations is a functional staff service, it must
necessarily derive its authority from the line organization. This is ensured by providing that the
industrial relations director should report to a top line authority to the president, chairman or vice
president of an organization.
b) Sound Personnel Policies: - These constitute the business philosophy of an organization and
guide it in arriving at its human relations decisions. The purpose of such policies is to decide,
before any emergency arises, what shall be done about the large number of problems which crop
up every day during the working of an organization. Policies can be successful only when they
are followed at all the level of an enterprise, from top to bottom.
c) Adequate Practices should be developed by professionals: - In the field to assist in the
implementation of the policies of an organization. A system of procedures is essential if intention
is to be properly translated into action. The procedures and practices of an industrial relations
department are the “tool of management” which enables a supervisor to keep ahead of his job
that of the time-keeper, rate adjuster, grievance reporter and merit rater.
d) Detailed Supervisory Training :- To ensure the organizational policies and practices are
properly implemented and carried into effect by the industrial relations staff, job supervisors
should be trained thoroughly, so that they may convey to the employees the significance of those
policies and practices. They should, moreover, be trained in leadership and in communications.
e) Follow-up of Results: - A constant review of an industrial relations programme is essential, so
that existing practices may be properly evaluated and a check may be exercised on certain
undesirable tendencies, should they manifest themselves. A follow up of turnover, absenteeism,
departmental morale, employee grievances and suggestion; wage administration, etc. should be
supplemented by continuous research to ensure that the policies that have been pursued are best
fitted to company needs and employee satisfaction. Hints of problem areas may be found in exit
interviews, in trade union demands and in management meetings, as well as in formal social
sciences research.
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
3. Standing orders
MODULE-2
Collective bargaining has been defined by different experts in different ways. Nevertheless, it is
treated as a method by which problem of wages and conditions of employment are resolved
peacefully and voluntarily between labour and management. However, the term collective
bargaining is opposed to individual bargaining1.
"As negotiations about working conditions and terms of employment between an employer, or a
group of employers, or one or more employers' organisations, on the one hand, and one or more
representative workers' organisation on the other with a view to reaching agreement."
This definition confines the term collective bargaining as a means of improving conditions of
employment. But in fact, collective bargaining serves something more.
Perlman aptly stated,"Collective bargaining is not just a means of raising wages and improving
conditions of employment. Nor is it merely democratic government in industry. It is above all
technique, collective bargaining as a technique of the rise of a new class is quite different ......
from the desire to displace or abolish" the "old ruling class"... ... to gain equal rights as a
class ... ... to acquire an excessive jurisdiction in that sphere where the most immediate interests,
both material and spiritual, are determined, and a shared jurisdiction with the older class or
classes in all other spheres.2”
According to the Court, the Industrial Disputes Act, 1947 seeks to achieve social justice on the
basis of collective bargaining. In an earlier judgment in Titagarh Jute Co. Ltd. v. Sriram Tiwari ,
the Calcutta High Court clarified that this policy of the legislature is also implicit in the
definition of ‘industrial dispute'.
In Ram Prasad Viswakarma v. Industrial Tribunal 4the Court observed that, "It is well known
how before the days of ‘collective bargaining', labour was at a great disadvantage in obtaining
reasonable terms for contracts of service from its employer. As trade unions developed in the
country and Collective bargaining became the rule, the employers found it necessary and
convenient to deal with the representatives of workmen, instead of individual workmen, not only
for the making or modification of contracts but in the matter of taking disciplinary action against
one or more workmen and as regards of other disputes."
In Bharat Iron Works v. Bhagubhai Balubhai Patel 5, it was held that “Collective bargaining,
being the order of the day in the democratic ,social welfare State, legitimate trade union
activities, which must shun all kinds of physical threats, coercion or violence, must march with a
spirit of tolerance, understanding and grace in dealings on the part of the employer. Such
activities can flow in healthy channel only on mutual cooperation between the employer and the
employees and cannot be considered as irksome by the management in the best interests of its
business.
Dialogue with representatives of a union help striking a delicate balance in adjustments and
settlement of various contentious claims and issues."
These definitions only bring out the basic element in the concept i.e., civilized confrontation
between employers and employees and the whole process is regulated by statutory provisions.
between the union and the employer. Nevertheless, experience shows that outsiders who have
little knowledge of the background of labour problems, history of labour movement,
fundamentals of trade unionism and the technique of the industry and with even little general
education assume the charge of labour union and become the self-appointed custodian of the
welfare of workers. The employers, therefore, have been reluctant to discuss and negotiate
industrial matters with outsiders, who have no personal or direct knowledge of day to day affairs
of the industry.
Accordingly employees refuse recognition to the unions which are either controlled by the
politicians or affiliated to a particular political party or controlled by a particular individual.
Government cannot morally compel employers to accord recognition to unions without driving
out the politicians from them. The State must outright ban "outsiders" from the trade union body.
Further, provision for political funds by trade unions should be eliminated, since it invariably
encourages the politicians to prey upon them. The National Commission on Labour has
overlooked this aspect. The Commission does not favour a legal ban on non-employees for
holding the union office. It says that without creating conditions for building up the internal
leadership, a complete banning of outsiders would only make unions weaker. The Commission
hopes that Internal leadership would develop through their education and training. Accordingly
the Commission suggests proportion of the outsiders and the workers in a union executive. On
realising the problems of outsiders in the Union, the Industrial Relations Bill, 1988 proposes to
reduce the number of outsiders to two only.
It is well known that the trade-union movement in India is divided on political lines and exists
on patronage of various political Parties. Most of the trade-union organizations have aligned
themselves with a political party with whom they find themselves philosophically close. It is
because of this that the Indian National Trade Union Congress is considered to be the labour
wing of congress, whereas H.M.S. is considered to be the labour wing of Socialist party.
Bhartiya Majdoor Sangh pledges its allegiance to B.J.P. and C.I.T.U. has the support of C.P.I.
(M). It is also the case with the AITUC which had started as a national organization of workers
but subsequently came to be controlled by the Communist Party of India and is now it's official
labour wing. Political patronage of trade-unions has given a new direction to the movement
whose centre of gravity is no longer the employees or workmen. The centre has shifted towards
it leadership whose effectiveness is determined by the extent of political patronage and the
consequent capacity to obtain the benefit. This shifting centre of power is the necessary
consequence of political parties search for workers votes, which they seek by conferring benefits
on them. Since the public sector which is really the instrumentality of the State, has emerged as
the biggest employer in this country, the collective bargaining -between the union patronized by
the party-in-power and the employer has become an important methodology. It is because of this
process that agreements conferring benefits are signed even in those units where financial losses
are mounting.
It is also our experience that in spite of wage increase end improved conditions of service, there
has been no corresponding improvement in production or the productivity. Also,most of the
losses are being passed on to the consumers by increasing prices of the products. It is in this
context that Justice Gupta has, in his, 'Our Industrial Jurisprudence" made the following
observations:“If our experience is any guide, it reveals that Ievel of increase in wages etc., ( in
public sector undertaking )is now decided by the Bureau of Public Enterprises which takes into
consideration only the Political impact and 'Consumer resistence' as two dominant factors. This
is the reason why the prices of almost all products of necessity like coal, iron and steel, cement,
sugar etc. have been constantly increasing. A survey of pending and decided industrial disputes
of the last 10 years reveals that there was virtually no industrial dispute regarding wage structure
or bonus in any industry of some significance.
There are also not many collective bargaining agreements which have tried to link wages with
productivity. Clearly,therefore, the basic idea of ‘sharing the prosperity' which developed
because of our commitment to the cause of 'social justice' is no longer current and the expected
end product of the process of ' social justice ' is no longer expected. "7
The process of collective bargaining is not likely to succeed unless the threat of strike/lockout is
there in the back-ground. Strike and lock-out are the weapons used by both the parties daring the
collective bargaining process. Without having these weapons at hands, neither of the party to the
dispute can defeat the claim of the other. The peculiar feature of our country while compared to
the advanced nations of the world is that the economic conditions of the workers is very poor and
as a result they can not afford a long-standing strike.
Critical Evaluation:-
In Indian labour arena we see, multiplicity of unions and Inter-union rivalry. Statutory provisions
for recognizing unions as bargaining agents are absent. It is believed that the institution of
collective bargaining is still in its preliminary and organisational stage. State, therefore, must
play a progressive and positive role in removing the pitfalls which have stood in the way of
mutual, amicable and voluntary settlement of labour disputes. The labour policy must reflect a
new approach.Hitherto the State has been playing a dominant role in controlling and guiding
labour-management relation through its lopsided adjudication machinery. The role of the
industrial adjudicator virtually differs from that of a judge of ordinary civil court. The judge of a
civil court has to apply the law to the case before him and decide rights and liabilities according
to its established laws, whereas industrial adjudicator has to adjust and reconcile the conflicting
claims of disputants and evolve “socially desirable" rights and obligations of the disputants. In
deciding industrial disputes the adjudicator is free to apply the principle of equity and good
conscience.
However, it is said that the impact of the romantic attitude of the judiciary towards workers has
not proved conducive to the peaceful industrial relations. It is accepted that the end of judicial
proceeding is pain and penalties. It cannot solve the problems of industries.Accordingly it is said
that,"While statutes, rules, regulations, pains and penaltieshave their place in the ordering of
industry, they do not touch the core of the problems of industrial relations."8
Moreover, advocates of adjudication contend that as the collective bargaining procedure might
end in a strike or lockout, which implies a great loss to the parties concerned and the country, so
for the sake of industrial peace, the adjudication becomes necessary.
Industrial peace can be established by the adjudication for the time being. But the conflicts are
driven deeper and it will retard industrial production. In the absence of effective collective
bargaining the anti–productivity tendencies are bound to appear.
Suggestions:-
For an effective Collective Bargaining in India the following suggestions are made :
Ø The State should enact suitable legislation providing for compulsory recognition of trade
union by employers.
Ø The provision for political fund by trade unions has to be done away with-since it unvariably
encourages the politicians to prey upon the union.
Ø State has to play a progressive role in removing the pitfalls which stand in the way of mutual,
amicable and voluntary settlement of labour disputes.
MODULE -3
TRADE UNIONS
IMPLEMENTATION – I SECTION
SCREENING PROCEDURE
• The membership of the union should cover at least 15% of the workers in the
establishment concerned. Membership would be counted only of those who had paid their
subscriptions for at least three months during the period of six months immediately preceding the
reckoning.
• When a union has been recognized, there should be no change in its position for a period
of two years.
• Where there are several unions in an industry or establishment, the one with the largest
membership should be recognized.
• A representative union for an industry in an area should have the right to represent the
workers in all the establishments in the industry, but if a union of workers in a particular
establishment has a membership of 50% or more of the workers of that establishment it should
have the right to deal with matters of purely local interest, such as, for instance, the handling of
grievances pertaining to its own members. All other workers who are not members of that union
might either operate through the representative union for the industry or seek redress directly.
• In the case of trade union federations which are not affiliated to any of the four central
organizations of labour, the question of recognition would have to be dealt with separately.
• Only union which observe the Code of Discipline would be entitled to recognition.
I. To maintain Discipline in Industry both in public and private sector there has to be (i) a
just recognition by employers and workers of the rights and responsibilities of either
party, as defined by the laws and agreements (including bipartite and tripartite
agreements arrived at all levels from time to time) and (ii) a proper and willing discharge
by either party of its obligations consequent on such recognition.
The Central and State Governments, on their part, are required to examine and set right
any shortcomings in the machinery they constitute for the administration of labour laws.
(i) that no unilateral action should be taken in connection with any industrial matter
and that should be settled at appropriate level.
(ii) that the existing machinery for settlement of disputes should be utilized with the
utmost expedition.
(iv) that affirming their faith in democratic principles, they bind themselves settle all
future differences, disputes and grievances by mutual negotiation, conciliation
and voluntary arbitration;
(v) that neither party will have recourse to (a) coercion, (b) intimidation, (c)
victimization or (d) go-slow;
(vi) that they will avoid, (a) litigation, (b) sit-down and stay-in strikes and (c) lock-
outs;
(vii) that they will promote constructive co-operation between their representatives at
all levels and as between workers themselves and abide by the spirit of
agreements mutually entered into;
(viii) that they will establish upon a mutually agreed basis, a grievance procedure which
will ensure a speedy and full investigation leading to settlement;
(ix) that they will abide by various stages in the grievance procedure and take no
arbitrary action which would by-pass this procedure; and
(x) that they will educate the management personnel and workers regarding their
obligations to each other.
(ii) not to support or encourage any unfair labour practice such as (a) interference
with the right of employees to enroll or continue as union members, (b)
discrimination, restraint or coercion against any employee because of recognized
activity of trade unions and (c) victimization of any employee and abuse of
authority in any form;
(iii) to take prompt action for (a) settlement of grievances and (b) implementation of
settlements, awards, decision and orders;
(iv) to display in conspicuous places in the undertaking the provisions of this code in
the local language(s);
(v) to distinguish between actions justifying immediate discharge and those where
discharge must be preceded by warning, reprimand, suspension or some other
form of disciplinary action and to arrange that all such disciplinary action should
be subject to an appeal through normal grievance procedure;
(vi) to take appropriate disciplinary action against its officers and members in cases
where enquiries reveal that they were responsible for precipitate action by
workers leading to indiscipline; and
(vii) to recognize the union in accordance with the criteria (Annexure-I) evolved at the
16th Session of the Indian Labour Conference held in May 1958.
(iii) that their members will not engage or cause other employees to engage in any
union activity during working hours, unless as provided for by law, agreement of
practice;
(iv) to discourage unfair labour practices such as (a) negligence of duty, (b) careless
operation, (c) damage to property, (d) interference with or disturbance to normal
work and (e) insubordination;
(vi) to display in conspicuous places in the union offices, the provisions of this Code
in the local language(s), and
(vii) to express disapproval and to take appropriate action against office-bearers and
members for indulging in action against the spirit of this code.