9 industrial relations gm & tu

Industrial Relations and Trade unions

Industrial Relations It is the relationship between

employer and employee as a group. The role of different parties-

employers, employee and their unions, and state in maintaining this relationship.

It the mechanism of handling conflicts between employer and employee.

Objectives To develop harmonious relationship

between operatives and management. Developing goodwill and understanding. Develop mutuality among the interests

of these parties. To raise productivity To curb employee turnover and

absenteeism

Objectives….. To avoid governments interference. To establish and nurse the growth

of an Industrial Democracy (sharing of profits, managerial decisions)

To avoid industrial conflict/ industrial strife

Obj. To eliminate- strikes, lockouts and

gheraos. Development of healthy labor-

management relations Maintenance of industrial peace

Req. of a successful I.R. Prog. Creating trust between Employees

and Management Top Management support. Sound personnel policies Adequate practices should be

developed by professionals Detailed supervisory training Follow-up of Results

Definition of Trade Union

Trade unions are voluntary organizations of workers or employers formed to promote and protect their interests through collective action.

Trade Unions All organizations of employees

including those of salaried and professional workers as well as those of manual wage earners which are known to include among their functions that the negotiating with their employers with the object of regulating conditions of employment.

1926 TU Act Sec. 2 Any body who has the willingness

to group together for the purpose of trade employment or terms of employment or can be united together shall be deemed to be union and as considered in TU Act 1926.

Nature of Trade UnionAccording to the Trade Union Act 1926 it

is a combination, whether temporary or permanent, formed

(i) primarily for the purpose of regulating the relation between (a) workmen and employers or (b) between workmen and workmen, or (c) between employers and employers, or

(ii) for imposing restrictive conditions on the conduct of any trade or business.

Nature of Trade Union

The analysis reveals that Trade Union is :-1. A combination of workers or employers.2. Such a combination could be permanent or

temporary.3. Could include federation of two or more unions,

and4. To regulate relations among workmen, between

workmen and employers or among employers themselves.

Features of T.U T.U are voluntary associations formed by

employees to safeguard their interests through collective actions.

Such associations can work at the level on individual organizations as well as apex bodies (affiliated to trade unions)

Since TU are voluntary- employee has choice to join or not, TU has choice to affiliate or not to affiliate itself with an apex body of TU.

Features of TU in India Various types of TU- primary unions,

regional unions, Central TU All major central TU are affiliated to

political parties Multiplicity of TU in single plant results

into inter-union rivalry Proliferation of TU results in Smaller

number of membership and financial constraints

Features of TU in India Major decision making process is

controlled by the outsiders.

Principles of Trade Unionism

Trade unions function on the basis of three fundamental principles.

Unity is strength. Equal pay for equal work or for the same

job. Security of service.

Objectives of Trade Unions Wages & salaries Working conditions Discipline Personal policies Welfare Employee-employer relations Negotiating machinery Safeguarding organizational health and interest

of the industry

Reasons for joining Union Dissatisfaction of employee Powerlessness Union Instrumentality

Why do Workers Join Trade Unions?

To attain economic security- permanent employment with higher salary and benefits.

To improve their bargaining power

To inform worker’s views, ideas aims and dissatisfaction to the management.

To satisfy social needs.

To secure power.

Betterment of Relationships.

TU movement in India TU activities started with the formation of

Bombay Mill Association in 1890. Followed by many other TU at Calcutta

and Madras . First World War- ILO International Labor

Organization (1919) and Swaraj movement etc. facilitated the TU movement

All India Trade Union Congress (AITUC)

TU movement in India Formation of AITUC prompted the

formation of number of TU In 1926 Trade Union Act was enacted

to provide legal status to union activities and registration of unions.

1920s due to ideological differences many left AITUC and formed National Trade Union Federation.

TU movement in India During Second World War strikes and

lockouts were banned under the Defence of Indian Rules.

After the independence, the growth of TU followed the pattern of development of political parties.

Congress Party formed- Indian National Trade Union Congress (INTUC) 1947

TU movement in India Praja Socialist Party formed- Hind

Mazdoor Sabha 1948. Then Proliferation of political parties Presently more active TU are--- INTUC- Congress partyAITUC- Communist partyCenter of Indian TU- Communist

(Marxists)Bharatiya Mazdoor Sangh9 BJP etc.

Present Central Trade Union Organizations

All India Trade Union Congress (AITUC) 1920

Bharatiya Mazdoor Sangh (BMS)

Hind Mazdoor Sabha (HMS) 1948

Indian Federation of Free Trade Unions (IFFTU)

National Front of Indian Trade Unions (NFITU)

National Labor Organization (NLO)

Trade Unions Co-ordination Centre (TUCC)

Functions of TU Functions relating to members Functions relating to organization Functions relating to union

activities Functions relating to society

Functions of Trade UnionThe basic functions of trade unions is to protect and promote the interest of the workers and conditions of their employment.

1. Militant Functions2. Fraternal Function3. Political functions4. social functions

Militant/Protective Functions

Achieve higher wages and better working conditions.

Raise the status of workers as a part of industry and

Protect labour against victimization and injustice.

Fraternal Functions Providing financial and non-financial assistance to

workers

Extension of medical facilities during sickness and casualties.

Provision of education, recreation, and housing facilities.

Provision of religious and social benefits.

To provide opportunities for promotion and growth.

Political Functions Affiliating the union to a political

party Helping to enroll the members,

collecting donations Seeking the help of political parties

during periods of strikes & lockouts

Social Functions Carrying out social service activities Discharging social responsibilities

through various sections of the society like educating the customers

Problems for Trade Union Problems for Trade Union GrowthGrowth

a) Off-Centering Labourb) Segmentation of Workforcec) Core / Peripheryd) Employment Instabilitye) Investment Attractionf) Individualization of Labour Relationsg) Labour Cost Cuttingh) Leadership Credibility/ Inside vs. Outside

leadershipi) Failure of Institutions

Trade Union Act, 1926Allows employees the right to form and organize unions.Min 7 persons is required to form their union and get it registered under this act.If union has been existing for more than 1 year the statement of asset and liability must be shown.The application must contain1. Name, occupation and address of members.2. Name of union, its head office details.3. Details about office bearers

Grievance Management

GrievanceGrievance refers to any discontent or dissatisfaction, whether expressed or not and valid or not, arising out of anything connected with the company that an employee thinks, believes or even feels, is unfair, unjust or inequitable.

3 Cardinal principles of grievance settlement Settlement at the lowest level Settlement as quickly as possible Settlement to the satisfaction of

the aggrieved

Steps in handling grievances

Define the nature of the grievance Collect all the facts (how, where, when, why,

whom) Establish tentative solutions to the grievance Collect additional information to check the

validity Apply the solution Follow-up (casual observation, direct

interaction , general discussion, feedback from other employees)

Principles of handling grievance Fair demonstration of grievance

procedure Definite and clear Simple It should function promptly and speedily Right attitude of supervisor Confidence of supervisors Long run implications of the decision

Causes of grievances Wages and working conditions supervision Management policies and practices Maladjustment of employee

Identification of Grievances Exit interview Gripe box system opinion surveys open door policy

Grievance procedure The grievance procedure is a

problem-solving, dispute-settling machinery which has been set up following an agreement to that effect between labor and management.

Steps in Grievance Procedure Step 1- Aggrieved employee

explains his grievance to his immediate supervisor.

Step 2- Here grievance handled by the sectional/departmental head.Or representative of industrial relations/personal department.

Steps in Grievance Procedure Step 3- Grievance committee

(having members from both management and union)

Step 4- Senior manager or personnel manager along with senior union representative arrives at the decision to refer the matter for arbitration.

Steps in Grievance Procedure Step 5- Arbitrator is appointed

with the mutual consultation of management and union or the employee.

Model grievance procedure 1958

Step 1- An aggrieved employee shall

first present his grievance verbally in person to the officer designated by the management for this purpose.An answer shall be given to him within 48 hours of the presentation of the complaint.


Step 2- Aggrieved, in person and/or

accompanied by his departmental representative present his grievance to the HOD designated by the management for the purpose of handling grievances

Decision should be given within 3 days


Step 3- Grievance committee

(recommendations within 7 days) In the case of difference of opinion

within the committee, matter is send to the manager on which he has to give recommendations within 3 days.


Step 4- Appeal to the management for

revision. Worker has the right, if he desires ,

to take a union official along with him.

Decision should be made within a week from the date of receipt.


Step 5- If no agreement is possible, the

union and management may refer the grievance to voluntary arbitration within a week from the date of receipt.

Important points No interference from the formal

conciliation machinery, till all the steps in the grievance handling procedure have been exhausted.

If the grievance arise out of an order, the said order shall be complied first.

Important points The workers representatives on the

grievance committee shall have the right to assess any document connected to the matter.

Management has the right to refuse if the document is confidential.

But then that document shall not be used against the worker in due course.

Important points 72 hours time difference should be

there within one step and the other. In calculating time intervals,

holidays shall not be reckoned Management shall provide the

necessary clerical and other assistance for a smooth functioning of the grievance machinery.

Constitution of grievance committee In case where the union is

recognized

2 representatives of the managementa union representativea union departmental representative

Constitution of grievance committee Incase where the union is not

recognized or there is no union but a workers committee2 representatives of managementrepresentative of the departmentsecretary or VP of the works committeeMax. no. of members of grievance committee should not exceed 6

9 industrial relations gm & tu

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