DBA 1748 Industrial Relations and Labour Welfare

MBA(DISTANCE MODE)

DBA 1748 INDUSTRIAL RELATIONS AND LABOUR WELFARE

IV SEMESTER COURSE MATERIAL

Centre for Distance EducationAnna University Chennai Chennai 600 025

Author Dr . Joe Christy N Dr.Assistant Professor Department of Management Studies BSA Cresent Engineering College Vandalur Chennai - 600 048

Reviewer Dr . R. K esan Dr. KesanAssistant Professor Department of Production Madras Institute of Technology Anna University Chennai Chennai - 600 044

Editorial Board Dr .T .V .Geetha Dr.T .T.V .V.GeethaProfessor Department of Computer Science and Engineering Anna University Chennai Chennai - 600 025

Dr .H.P eer u Mohamed Dr.H.P .H.Peer eeruProfessor Department of Management Studies Anna University Chennai Chennai - 600 025

Dr .C . Chella ppan Dr.C .C. ChellappanProfessor Department of Computer Science and Engineering Anna University Chennai Chennai - 600 025

Dr .A.K annan Dr.A.K .A.KannanProfessor Department of Computer Science and Engineering Anna University Chennai Chennai - 600 025

Copyrights Reserved (For Private Circulation only) ii

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ACKNOWLEDGEMENT

The author has drawn inputs from several sources for the preparation of this course material, to meet the requirements of the syllabus. The author gratefully acknowledges the following sources: www. Indian Labour Statistics.com Mamoria C.B. and Sathish Mamoria, Dynamics of Industrial Relations, Himalaya Publishing House, New Delhi, 2004 Ratna Sen, Industrial Relations in India , Macmillan India Ltd., New Delhi, 2003 Srivatsava, Industrial Relations and Labour Welfare Vikas 4th Edition, 2000

Inspite of utmost care taken to prepare the list of references any omission in the list is only accidental and not purposeful.

Dr. Joe Christy N Author

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DBA 1748 INDUSTRIAL RELATIONS AND LABOUR WELFAREUNIT I - INDUSTRIAL RELATIONS Concepts Importance - Industrial Relations Problems in the Public Sector- Growth of Trade Unions- Codes of conduct. UNIT II - INDUSTRIAL CONFLICTS Disputes Impact Causes Strikes - Prevention Industrial Peace Government Machinery- Conciliation Arbitration Adjudication. UNIT III - LABOUR WELFARE Concept Objectives Scope Need- Voluntary Welfare Measures Statutory Welfare Measures- LabourWalfare Funds- Education and Training Schemes. UNIT IV - INDUSTRIAL SAFETY Causes of Accidents Prevention Safety Provisions Industrial Health and Hygiene-Importance ProblemsOccupational Hazards- Diseases Psychological problems- counseling- statutory provisions. UNIT V - WELFARE OF SPECIAL CATEGORIES OF LABOUR Child Labour Female Labour- Contact Labour Construction Labour Agricultural labour Disabled Welfare of knowledge Social Assistance Social Security- Implications. REFERENCES 1. Mamoria C.B. and Sathish Mamoria , Dynamics of Industrial Relations, Himalaya Publishing House, New Delhi 1998. 2. Dwivedi . R.S. Human Relations & Organisational Behaviour, Macmillan India Ltd., New Delhi, 1997. 3. Ratna Sen , Industrial Relations in India, Shifting Paradigms, Macmillan India Ltd., New Delhi, 2003. 4. Srivastava, Industrial Relations and Labour laws, Vikas 4 th edition , 2000. 5. C.S.Venkata Ratnam, Globalisation and Labour Management Relations, Response Books, 2001.

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CONTENTSUNIT I INDUSTRIAL RELATIONS1.1 1.2 1.3 1.4 1.5 INTRODUCTION CONCEPT OF INDUSTRIAL RELATIONS TRADE UNION AND ITS IMPORTANCE TREND IN NUMBER OF REPORTING FACTORIES EMPLOYMENT TRADE UNION CONCEPT 1.5.1 A few commonly cited definitions trade union are 1.5.2 General Features of Trade Unions 1.5.3 Functions of Trade Unions GROWTH AND DEVELOPMENT OF THE TRADE UNION MOVEMENT 1.6.1 Social Welfare period, from 1875 to 1918 1.6.2 Early Trade Union period, from 1918 to 1924 1.6.3 Left-wing Trade Unionism period, from 1924 to 1934 1.6.4 Trade Unions Unity period - 1935 to 1938 1.6.5 Second World War period - 1939 to 1945 1.6.6 Post independence period - 1947 to 2000 FUNCTIONS OF TRADE UNIONS FUNCTIONS OF TRADE UNIONS IN INDIA TYPES AND STRUCTURE OF TRADE UNIONS 1.9.1 The Union Classified According to Purpose 1.9.2 Union Classified on the Basis of Membership Structure CRAFTS VERSUS INDUSTRIAL UNIONS ALL INDIA CENTRAL COUNCIL OF TRADE UNIONS (AICCTU) 1.11.1 Aims and Objectives CODES OF CONDUCT TRADE UNIONS 1.12.1 Labour conditions in India 1.12.2 The possible effects of CCC 1.12.3 General conclusions 1.12.4 About every meeting some distinct remarks were madeix

1 1 13 13 15 15 16 19 20 21 22 23 23 23 24 25 26 29 29 31 33 34 35 36 37 38 39 39

1.6

1.7 1.8 1.9

1.10 1.11 1.12

1.13

1.14

THE INDIA COMMITTEE OF THE NETHERLANDS (ICN) 1.13.1 Organisation 1.13.2 Awareness Raising 1.13.3 Campaigns 1.13.4 Social labels and codes of conduct 1.13.5 Co-operation CONCLUSION

42 42 43 43 43 44 44

UNIT II INDUSTRIAL CONFLICTS2.1 2.2 2.3 2.4 INTRODUCTION INDUSTRIAL DISPUTE CERTAIN ASPECTS OF INDUSTRIAL DISPUTES ARE DISCUSSED AS BELOW GOVERNMENT MACHINERY TO RESOLVE INDUSTRIAL DISPUTES 2.4.1 Introduction 2.4.2 A. Conciliation 2.4.3 B. Arbitration 2.4.4 C. Adjudication MEDIATION 2.5.1 Kinds of Mediator CONCILIATION 2.6.1 Qualities of Conciliator 2.6.2 Role of the Conciliator 2.6.3 Sequential Pattern of Conciliation ARBITRATION 2.7.1 Concept 2.7.2 Types of Arbitration REFERENCE OF DISPUTE TO ARBITRATION UNDER INDUSTRIAL DISPUTES ACT, 1947 2.8.1 Qualification of Arbitrators 2.8.2 Procedure for Investigation 2.8.3 Submission of Award 2.8.4 Criticism of Compulsory Arbitrationx

45 45 46 48 48 50 54 55 59 59 60 61 62 64 66 66 67 68 69 69 70 70

2.5 2.6

2.7

2.8

2.9 2.10

2.11 2.12 2.13

2.8.5 National Arbitration Promotion Board ADJUDICATION 2.9.1 Types of Adjudication INDUSTRIAL TRIBUNALS 2.10.1 Constitution 2.10.2 Jurisdiction 2.10.3 National Tribunals MODEL PRINCIPLES FOR REFERENCE OF DISPUTES TO ADJUDICATION COMMENCEMENT AND CONCLUSION OF PROCEEDINGS Central Industrial Relations Machinery in India

71 71 71 73 74 74 75 75 76 76

UNIT III LABOUR WELFARE3.1 3.2 3.3 INTRODUCTION WELFARE AND WORKING CONDITIONS IMPORTANCE OF LABOUR WELFARE 3.3.1 A Labour 3.3.2 B Training 3.3.3 C Employment 3.3.4 D - Special Employment Scheme WELFARE MEASURES VOLUNTARY STATUATORY WELFARE MEASURES NON-STATUTORY WELFARE MEASURES 3.6.1 Non-statutory Welfare in Indian Industry: Some Examples 3.6.2 Comments on Non-Statutory Welfare 3.6.3 Non-Statutory Welfare: A Model WORK ENVIRONMENT 3.7.1 Arousal Hypothesis LABOUR WELFARE FUNDS 3.8.1 Tripartite Labour Welfare Fund Advisory Committee 3.8.2 Conclusion WORKERS EDUCATION AND TRAINING SCHEMES 3.9.1 Workers Education: Conceptxi

3.4 3.5 3.6

3.7 3.8

3.9

79 80 80 81 82 88 88 88 90 94 94 94 95 98 100 101 101 103 104 104

3.10 3.11

3.9.2 Objective of Workers Education 3.9.3 Techniques of Workers Education 3.9.4 Workers Education in India 3.9.5 The Scheme for Workers Education 3.9.6 Three Levels of Workers Education 3.9.7 Special Category Programmes WORKERS TRAINING: CONCEPT 3.10.1 Training Schemes of DGET EVALUATION OF THE TRAINING SCHEMES

105 106 106 107 108 109 111 112 116

UNIT IV INDUSTRIAL SAFETY4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 INTRODUCTION FEATURES OF SAFETY ORGANIZATION SAFETY COMMITTEES ACCIDENT PREVENTION PROGRAMME ROLE OF SAFETY DIRECTOR STATUTORY SAFETY PROVISIONS WORKERS HEALTH 4.7.1 Statutory Health Measures HAZARDOUS PROCESSES STATUTORY REQUIREMENTS FOR HAZARDOUS MANUFACTURING PROCESS OCCUPATIONAL HAZARDS 4.10.1 Match and firecracker industry in Sivakasi, Tamilnadu OCCUPATIONAL HEALTH PROBLEMS 4.11.1 Gem polishing Industry, Jaipur, Rajshtan 4.11.2 Hand made Carpet Weaving Industry, Mirzapur & Bhadoi, Uttarpradesh MENTAL HEALTH PROBLEMS 4.12.1 Slate - Stone Mines and Industry NOTIFIABLE DISEASES PSYCHOLOGICAL COUNSELLING 4.14.1 Councelling Methodology 4.14.2 Employment settingsxii

119 120 120 121 121 121 131 131 136 141 145 146 146 146 147 148 148 149 152 153 154

4.12 4.13 4.14

UNIT V WELFARE OF SPECIAL CATEGORIES OF LABOUR5.1 5.2 5.3 5.4 5.5 CHILD LABOUR 5.1.1 Constitutional Rights of a Child THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986 INITIATIVES TOWARDS ELIMINATION OF CHILD LABOUR ACTION PLAN AND PRESENT STRATEGY FOCUSING OF GENERAL DEVELOPMENTAL PROGRAMMES FOR BENEFITING CHILD LABOUR THE COVERAGE OF THE NCLP SCHEME HAS INCREASED FROM 12 DISTRICTS IN 1988 TO 100 DISTRICTS IN THE 9TH PLAN TO 250 DISTRICTS DURING THE 10TH PLAN. THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 155 155 156 159 159

160 161

5.6

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INDUSTRIAL RELATIONS AND LABOUR WELFARE

UNIT I

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INDUSTRIAL RELATIONSLearning Objectives After going though this unit you should be in a position to explain the following terminologies: Concept of Industrial Relations Importance of IR Labour Turnover Absenteeism Trade Union Codes of Conduct 1.1 INTRODUCTION Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labours and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labour) and employers (management). 1.2 CONCEPT OF INDUSTRIAL RELATIONS The term Industrial Relations comprises of two terms: Industry and Relations. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged. By relations we mean the relationships that exist within the industry between the employer and his workmen. The term industrial relations explain the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated.

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The term industrial relations have a broad as well as a narrow outlook. Originally, industrial relations were broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labour) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labour-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. Industrial Relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises. The industrial situation as reflected in the statement of mandays lost on account of strikes and lockouts has shown improvement in recent years. Despite increase in the number of strikes and lockouts in 1997 compared to 1996, the mandays lost due to these agitations have actually declined. The total number of strikes and lockouts increased from 1166 in 1996 to 1305 in 1997, but the mandays lost on account of these strikes and lockouts declined from 20.3 million in 1996 to 17 million in 1997 (Table 1.1). Among the states, Andhra pradesh, Tamil Nadu, Gujarat and West Bengal recorded most of the agitations. Cotton textiles, engineering and jute hemp and Mesta textiles were the industrial groups which witnessed maximum loss of mandays on account of strikes and lockouts. Wage and wage related issues, personnel issues, retrenchment and indiscipline have been identified as major reasons behind strikes and lockouts. Protests against privatization and entries of multinationals are issues that have gained importance in recent years. The steady improvement in industrial relations has been possible mainly because of the Governments proactive role through timely and effective conciliation of industrial disputes and involvement of the social partners at various bipartite-tripartite fora for the formulation of labour and industrial policies. One important issue, which needs to be addressed, is the extant labour laws especially Industrial Disputes Act (IDA) 1947, which governs lay off, retrenchment and closure. Central and State Governments have often been inhibited in granting necessary permissions for closure, even when economic compulsions justified granting of such permissions. It has often been observed that the present legal provisions and procedures restrict labour market flexibility and thereby discourage growth of employment. A thorough review of the provisions of the IDA and other labour legislations2 ANNA UNIVERSITY CHENNAI


is called for to impart greater flexibility to the labour market and thereby encourage more employment. Considering the radical changes that have taken place in the domestic industrial scenario and the labour market, the Government has decided to set up the Second National Commission on Labour to suggest among others, rationalization of the existing laws in the organized sector so as to make them more relevant and appropriate in the changing context of globalization and opening up of the Indian economy. MEANING AND DEFINITION OF INDUSTRIAL RELATION 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. Other commonly referred definitions: i. Industrial Relation is that part of management which is concerned with the manpower of the enterprise whether machine operator, skilled worker or manager. 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. The Industrial Relation relations also called as labor - management, employee-employers relations. A few notable features pertaining to Industrial Relations are as under: 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., labour 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

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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, countrys socio-economic and political environment, nations 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 labormanagements 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. Industrial Relation encompasses all such factors that influence behavior of people at work. A few such important factors are details below: 1. Institution: It includes government, employers, trade unions, unions federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. 2. Characters : It aims to study the role of workers unions and employers federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc. 3. Methods : Focus on collective bargaining, workers participation in the Industrial Relation schemes, discipline procedure, grievance re-dressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc. 4. Contents : Includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers participation in management, collective bargaining, etc., Objectives of Industrial Relation: A. To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. B. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.4 ANNA UNIVERSITY CHENNAI


C. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism. D. To establish and nurse the growth of an Industrial Democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits. F. To establish government control of such plants and units as are running at a loss or in which productions has to be regulated in the public interest. G. Improvements in the economic conditions of workers in the existing state of industrial managements and political government. H. Control exercised by the state over industrial undertaking with a view to regulating production and promoting harmonious industrial relations. I. Socializations or rationalization of industries by making he state itself a major employer J. Vesting of a proprietary interest of the workers in the industries in which they are employed. The main aspects of Industrial Relations are:i. Labor Relations, i.e. relations between union and management

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ii. Employer-employees relations, i.e. relations between management and employees iii. Group relations, i.e. relations between various groups of workmen iv. Community or Public relations, i.e. relations between industry and society. v. Promotions and development of healthy labor-managements relations. vi. Maintenance of industrial peace and avoidance of industrial strife vii. Development of true industrial Democracy Effects of poor Industrial Relations 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.

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2.

Fall in normal tempo: Poor Industrial Relations adversely effect the normal tempo of work so that work ar 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.

Suggestions to Improve Industrial Relation 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 companys 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 IMPORTANCE OF INDUSTRIAL RELATIONS: 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. There6 ANNA UNIVERSITY CHENNAI


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 reduces 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 coowner 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. 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 employers authority. It will naturally have impact on production because they recognize the interest of each other. 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. 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.

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4.

5.

6.

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.7 ANNA UNIVERSITY CHENNAI

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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. DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND HUMAN RELATIONS: 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. Determining factors of industrial relations 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.

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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.

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4.

Off-the-Job Conditions An employer employs a whole person rather than certain separate characteristics. A persons 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 workers 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.

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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 workers education expectations in respect of rewards increases. 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.

INDUSTRIAL RELATIONS PROGRAMME Todays professional industrial relations director, or by whatever title he is designated, no longer views his job as personalizing management, or that of a social worker in a factory, or a union buster, he looks upon his department as an adjunct to management supervision at all levels; he keeps other executives informed about new discoveries, programme trends and needs. At the same time, he provides efficient service in the operation of several centralized services A successful industrial relations programme reflects the personnel viewpoint, which is influenced by three main considerations: a. Individual thinking b. Policy awareness and c. Expected group reaction Individualized thinking makes if imperative for the administrator to consider the entire situation in which the affected individual is placed. Policy awareness underscores the idea10 ANNA UNIVERSITY CHENNAI


of the consistency of treatment and the precedent value of any decision which a management takes; while expected group reaction balances what we know of human nature in groups against an individuals situation in the light of the policy that has been formulated and implemented. In all these different circumstances, reality demands that all the three aspects of the personnel viewpoint should be considered at once in terms of the past, the present and the future. This viewpoint is held at all the levels of management from the top to the bottom, from the top executives and staff to the line and supervisory personnel. SCOPE OF INDUSTRIAL RELATIONS WORK: 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 functions of the industrial relations staff are 1. Administration, including overall organization, supervision and co-ordination of industrial relations policies and programmes. 2. Liaison with outside groups and personnel departments as well as with various cadres of the management staff. 3. The drafting of regulations, rules, laws or orders and their construction and interpretation. 4. Position classification, including overall direction of job analysis, salary and wage administration, wage survey and pay schedules. 5. Recruitment and employment of workers and other staff. 6. Employment testing, including intelligence tests, mechanical aptitude tests and achievement tests. 7. Placement, including induction and assignment. 8. Training of apprentices, production workers, foremen and executives. 9. Employee counseling on all types of personnel problems-educational, vocational, health or behavior problems. 10. Medical and health services. 11. Safety services, including first aid training 12. Group activities, including group health insurance, housing, cafeterial programmes and social clubs. 13. Suggestion plans and their uses in labor, management and production committees. 14. Employee relations, especially collective bargaining with representatives and settling grievances. 15. Public relations. 16. Research in occupational trends and employee attitudes, and analysis of labor turnover.

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17. Employee records for all purposes. 18. Control of operation surveys, fiscal research and analysis. 19. Benefit, retirement and pension programmes. FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL INDUSTRIAL RELATIONS PROGRAMME 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 timekeeper, 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.

12



1.3 TRADE UNION AND ITS IMPORTANCE The existence of a strong and recognized trade union is a pre-requisite to industrial peace. Decisions taken through the process of collective bargaining and negotiations between employer and unions are more influential. Trade unions play an important role and are helpful in effective communication between the workers and the management. They provide the advice and support to ensure that the differences of opinion do not turn into major conflicts. The central function of a trade union is to represent people at work. But they also have a wider role in protecting their interests. They also play an important educational role, organizing courses for their members on a wide range of matters. Seeking a healthy and safe working environment is also prominent feature of union activity. Trade unions help in accelerated pace of economic development in many ways as follows: by helping in the recruitment and selection of workers. by inculcating discipline among the workforce by enabling settlement of industrial disputes in a rational manner by helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

NOTES

Trade unions are a part of society and as such, have to take into consideration the national integration as well. Some important social responsibilities of trade unions include: promoting and maintaining national integration by reducing the number of industrial disputes incorporating a sense of corporate social responsibility in workers achieving industrial peace

1.4 TREND IN NUMBER OF REPORTING FACTORIES EMPLOYMENT Absenteeism & Labour Turnover, Average Labour Cost and Average Wages/Salaries of Employees Sl. No. Parameters Year

2000 01 2001-02 2002-03 2003-04 2004-05 1. No. of Reporting Factories 2. Average Daily Employment a. All Employees 7988233 7751095 7935948 7870081 845362413 ANNA UNIVERSITY CHENNAI

128339

125834 125834 125844 136356

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b. All Workers c. Male Workers d. Female Workers e. Child Workers f. Contract Workers 3. Absenteeism Rate (%) @ 4. Labour Turnover a. Accession Rate (%) @ b. Separation Rate (%) @ 5. Labour Cost on Employees per Manday Worked (Rs.) 6. Percentage of Labour Cost to Total Cost of Production a. Wages/Salaries b. Bonus c. Provident Fund d. Welfare Expenses

6135675 5958492 6161493 6086908 6599298 4000370 3771435 3809037 3695860 3863691 881171 666 10.08 15.97 17.16 889292 306 9.44 15.26 17.43 929745 557 9.61 15.44 16.57 894992 987497 385 10.01 16.79 18.11 45 8.96 18.45 16.94

1253468 1297458 1422155 1495671 1748065

256.45 271.96 285.05 305.89 307.76 7.78 77.55 4.44 4.35 76.29 4.19 11.93 7.22 7.15 76.59 4.12 12.12 7.36 6.82 76.40 4.11 10.31 7.36 7.45 5.81 77.95 4.29

7. Percentage of Components of Labour Cost to Total Labour Cost

10.75

12.30 7.25

8. Wages/Salaries per Man-day Worked (Rs.) by a. All Employees b. All Workers c. Male Workers d. Female Workers e. Child Workers f. Contract Workers 78.45 55.63 90.10 198.88 148.86 79.13 38.78 90.95 207.47 152.38 82.17 61.87 96.68 218.31 158.75 87.33 51.57 100.96 233.71 165.55 91.00 28.86 109.71 239.91 168.58

180.02 187.84 197.85 207.72 212.30

@ Among Directly Employed Regular Workers during the calendar year. NB: 1. Workers are defined to include all persons employed directly or through any agency, whether for wages or not, in any manufacturing process or in cleaning any part of machinery or premises used for manufacturing process or in any other kind of work, incidental to, or connected with the manufacturing process or the subject of manufacturing process. Labour engaged in repair and maintenance or production of fixed assets for factorys own use or labour employed for generating electricity, etc. is also included.

14



2. Employees include all workers and persons receiving wage/salary and holding supervisory or managerial positions engaged in administrative office, store keeping and welfare sections, sales department as also those engaged in purchase of raw materials, etc or purchase of fixed assets for the factory and watch and ward staff. 1.5 TRADE UNION CONCEPT The classic definition of trade union was given by Sidney and Beatrice Webb states that it is a continuous association of wage earners for the purpose of maintaining and improving conditions of their working lives. In their time, the brand to trade union organizations that existed was small and local representating a specific skill or trade. The definition refers to a permanent organization of workers rather than one which is created for a particular purpose and died later on. The term wage earner in its purview includes salary earns. The objectives of such association is to maintain and improve the working conditions of its members 1.5.1 A few commonly cited definitions trade union are Dale Yoder, A trade union is a continuous association of wage-earners for the purpose maintaining of improving the conditions of their working lives. S.D. Puneker, A trade union is a monopolistic combination of wage-earners who as individual producers are complementary to one another but who stand to employers in a relation of dependence for the sale of their labour and production, and that the general purpose of association is in view of that dependence to strengthen their power to bargain with the employers of bargaining collectively. However, for the sake of discussion, these definitions may sound good, but a legalistic definition of trade union is desirable in understanding its concept as prevalent in a particular society. This is because in the case of industrial dispute or on all union matter, on has to go by what the letter of laws says and not by what people perceive the union to be. The British Trade Union Act views it thus, A trade union is a combination with the main objective of regulating the relation between workmen and masters or between workmen and workmen or between masters and masters for imposing of restrictive conditions on the conduct of any trade or business and also provision of benefits to members In the words of India Trade Union Act, 1926, A trade union is any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers, or between workmen and workmen, between employees and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.

NOTES

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This definition is defective because it allows even non-workers to form a trade union; also it is narrow and vague about the aims and purpose of forming such a union. Yet the definition with a clear and legal wording is certainly important in relation to getting a trade union registered with the Registrar of Trade Unions and when legal interpretation of trade union is required in the case of industrial disputes etc. The characteristic which define a trade union includes i) A Statement that the organization is a trade union. ii) A Statement of its principal objectives, clearly specifying the fact that the organization formed is for the betterment of its members, i.e workers. iii) Registration with the Registrar of Trade Unions having jurisdiction on the area where Trade Union functions iv) Independence from the employer, which may be evident form the certificate issued by the Registrar of Trade Unions. v) Affiliation with the central trade union organization All the trade unions do not necessarily shown these characteristics, yet many of the large trade unions do. 1.5.2 General Features of Trade Unions Coming out of a vast array of literature on the subject, here a few general features trade unions are detailed out: (1) The trade union is an association either of employers or employees or of independent workers. Accordingly, in India such unions may consist of i. Merchants or employers associations (like the Employers Federation of India, the All-India Manufacturers Organisations, the All India Organisation of Industrial Employers, the Tea Planters Association of North India, the United Planters Association of South India, the Indian Jute Mills Association, the Indian Sugar Mills Association the Bombsy Mill Owners Association, and the Indian Paper Mills Association; ii. The general labour unions iii. The friendly societies and iv. Combination of intellectual labour like (the All-India Teachers Association; the All-India Bank Employees Association; the All-India Medical Doctors Association; the Railway mens Federation; National Federation of Posts and Telegraphs Workers; the All-India Mine Workers Federation etc.) On the other hand, in England, the term trade union also refers to the associations of professional persons such as artists federations, musicians union etc. In China, they refer to the trade union as an association of members of manual wageearners in enterprises, institutions schools and also working class engaged in irregular employments.16 ANNA UNIVERSITY CHENNAI


In the erstwhile USSR, they were a mass non-party public organization which units on a voluntary basis, the workers and other employees of all occupations. They are really the masses of workers and others employees around the party which are mobilized for the struggle to build a communist society. In USA, theses organizations are combinations of all persons in a given trade with the purpose of demanding and securing for each and all of them a definite minimum standard of wages, hours and conditions of works. It may , however , be noted that all similar organizations cannot truly be regarded as trade unions, because the associations of employers are concerned with influencing the terms of purchase of services in favour of their members which they need for performing particular tasks. The associations of professional persons, too cannot be regarded as true trade unions because their main objectives are to improve the training and education of their members. Further, such associations include the self-employed as well as the employees. The trade union should, therefore, be regarded as an association only of workers or employees. Thinkers like the Webbs, Cunnison and others do not recognize the employers associations and professional bodies as trade unions because they differ fundamentally from the workers organizations. They are of the view that if professional associations are treated as trade unions, a similar problem may arise for associations of sellers of services, like traveling and commission agents, bankers, insurance and property brokers and hotelowners, and to include them within the fold of the trade unions would be cumbersome and undesirable. Sometimes, workers allow their employers to join their unions and vice versa. Such organization may be called trade combinations or mixed combinations as provided in the statutory provisions in Chile, France, Hungary and Romania. In India, such organizations have been referred to as quasi-unions. (2) Labour unions are relatively permanent association of workers and are not temporary or casual: They persist throughout the years and conceive of their purpose as on which is not merely immediate but continues. They do not expect to attain their objectives in a day because they anticipate and contemplate continuing stream of additional objectives to be adopted from time to time. The most frequently used techniques by trade union is collective bargaining by which is meant the subordination of individual employer-employee relationships, in so far as the latter involve determination of wages and other conditions of employment-agreements affecting all workers in a group, arrived at by means of bargaining carried on not by workers themselves but by their union representatives. (3) A Trade union is an association of workers who are engaged in securing economic benefits for its members: In other words it is essentially a cooperative labour marketing association. Its purpose is to secure control of the supply of labour in17

NOTES


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one or more markets and to maintain that control as a means of fixing the price of labour as well as the conditions under which it works. But this does not mean that the advancement of the economic interests of its members is the sole purpose of a trade union. As they also try to advance the social political and cultural complex co economic, legal, ethical and social problems, which can be understood and met only by knowing the facts and genesis of the viewpoint of organized labour in all its diversity, contradictions and shifting character and by considering this viewpoint in relation to developing social contradictions and social traditions. The trade unions of to-day are plurist in character and by so slowly changing environment. The traditional concept of trade union functions which was to defend the workers rights and interests against the employers and the state has now changed and been replaced by a new approach to its functions, namely: (i) (ii) (iii) (iv) Protection of workers and provision for their security; Improving the wages, conditions of work and standards of living; Raising the status of the workers as a part of industry and citizen of society; and Contributing in nations socio-economic development

(4) The character of trade unions has been constantly changing: The changes in technology and system of production create fresh problems. Trade unions change their methods and their working to adjust themselves to changing circumstances. Therefore, there has been no finality about trade unions their working and their methods. They have gradually evolved and have now come to occupy an important place in modern industrial order. From criminal and illegal associations, they have now become legalized and recognized institutions; from institutions which were only very small bodies, they have how become gigantic associations; form institutions that were primarily interested in the advancement of the cause of their own membership, they have now become institutions which are interested in the social, cultural and political development of the country. The trade unions, thus, have made remarkable progress since their inception (5) The origin and growth of trade unions have been i8nfluenced by a number of ideologies: The socio economic and even political movements have influenced trade unions in one or the other way. The Marx and Engles Theory of Class War influenced trade unionism in a number of ways. Their theory of class-conflict and dialectical materialism created a class of trade unionists who regarded labour organization as absolutely essential for bringing about a revolutionary and fundamental change in the social order. The proletariat must overthrow the present bourgeois class, capture state power and usher in a classless society because the capitalistic class has long defensive, namely, to fight for the maintenance of the existing wages, to demand (relatively) higher wages, and the betterment of the conditions of work. The socialists, followed by the Webbs, consider trade unionism to be an extension of the principle of democracy in the sphere of industry. They require trade unions to be18 ANNA UNIVERSITY CHENNAI


institutions for overcoming managerial dictatorship to strengthen individual labourers and to give them a voice in the determination of the conditions under which they have to work. The Webbs observed: If the democratic State is to attain its fullest and finest development, it is essential that the actual needs and desires of the human agents concerned should be the main consideration in determining the conditions of employment. Here, then, we find the special function of the trade union in the administration of industry. India, too has accepted the creation of industry democracy as a prerequisite of the establishment of a socialist society. Lenin characterized the trade union as an educational organization, a school administration, a school of economic management, a school of communism. In all socialist countries, it has been accepted that the trade unions have to take an active part in preparing laws concerning labour, production, the way of life, culture and the implementation of these laws. There is no doubt there is a class conflict, but it is sought to be met through equality and collective agreements and joint consultations. The state recognizes the rights of the people to work, rest and leisure and maintenance in old age, sickness and disability, education and equal pay of equal work. The workers and managers have the same common purpose, namely, to promote the interests of the socialist state with which their own interest are bound up. Prof. Ghosh observers, Although modern unions interest is the production problem of the industry or their concern with the broader social affairs like employment of price stabilization, may be explained as derivations from their primary interest-maintaining or improving or improving the conditions of their members working lives it cannot explain the keenness with which many of the modern trade unions in different countries demand not only the right to be consulted in production problems and workers welfare arrangements by the management, but also a direct share in the management itself. Demand for industrial democracy has always influenced a section of the working class, but, in the fifties of the 20th century the demand has gained particular intensity in the trade union circles of a large numbers of countries, including some underdeveloped ones. In fine, it can be said that the modern trade union retains four characteristics from its early origins: (i) (ii) (iii) (iv) It is economically oriented It is an instrument of defense. It implies class distinction It is an outcome of an individualistic society.

NOTES

1.5.3 Functions of Trade Unions The functions of modern trade unions are wide and more comprehensive than those of their forerunners. Generally speaking, these functions have been termed as (i) militant of protection functions, and (ii) fraternal, ministrant of positive functions. The former functions19 ANNA UNIVERSITY CHENNAI

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aim at securing better conditions of work and employment for members through militant activities such as strikes, gherao, etc. if there is failure of collective bargaining. The latter functions provide benefits to their members and support to them during strikes/lockouts or during periods so temporary unemployment by giving them financial support out of the funds raised with their contributions. One author has categorized the functions of trade union as intra-mural and extramural functions. The former include the welfare schemes of the unions within factory premises to improve workers conditions of employment; regulation of hours of work, and provision of rest intervals, adequate wages, sanitation, safety and security; continuity of employment, etc. For performing theses functions, collective bargaining, negotiations and resort to a strike/lockout may be adopted. The latter include welfare schemes carried on with a view to help workers when in need of such assistance (medical of financial) during casualties, provision of education, recreational and housing facilities; provision of social and religious benefits, including payment of expenses of funeral or religious ceremonies for the deceased members of their dependants. All theses measures are designed to inculcate the spirit of cooperation among the workers. According to Samuel Gompers, Trade unions were born of the necessity of workers to protect and defend themselves from encroachment, injustice, and protect the workers in their inalienable right to higher and better life; to protect them, not only as equal before the law, but also in their rights to the product of labour, to protect their lives, their limbs, their health, the homes, their firesides, their liberties as men, as workers, as citizens, to overcome and conquer prejudice and antagonism, to secure them the fight to life, and the opportunity to maintain the result of their brain and brawn, and the civilization of which they are the founders and the mainstay. Before we give a consolidate picture of the functions/objectives of a trade union, it would be useful to glance at their functions in some countries 1.6 GROWTH AND DEVELOPMENT OF THE TRADE UNION MOVEMENT The growth and development of the labour movement, and for that part of the trade unions, in India, can be divided into following periods, each of them revealing different tendencies that mark it from others. 1. Social Welfare period, from 1875 to 1918 2. Early Trade Union period, from 1918 to 1924 3. Left-wing Trade Unionism period, from 1924 to 1934 4. Trade Unions Unity period from 1935 to 1938 5. Second World War period from 1939 to 1945 6. Post independence period from 1947 to date20 ANNA UNIVERSITY CHENNAI


1.6.1 Social Welfare period, from 1875 to 1918 The development of industries led to large scale production on the one hand and social evils like employment and exploitation of women and child labour and the deplorable working conditions, the governments attitude of complete indifference in respect of protection of labour from such evils, on the other. Some of the worst features of industrialism market the history of early factory system in India. In certain respects, conditions of labour in India factories were worse than in the early factories in England. Unfortunately there was no effective public opinion part villagers endeavoring to improve their position by a temporary alliance to industry were submissive and unorganized; and if conditions become too distasteful, the natural remedy was not a strike but abandonment by individuals of the mill or of industry generally or they migrated to other industrial centers or want back to their villages. There was no attempt at collective bargaining or at obtaining redress through concerted action. It was at this juncture that the Indian humanitarians, like Sorabjee Shapurji Bengali (1875) and N.M Lokhanday (in 1884) who themselves were factory workers, drew attention of the government towards the unhappy working conditions of the labourers and demeaned an early legislation to protect their interests. At the same time , the Lancashire interests also forced the British government to British the employment of women and child labour in India industries, not on any humanitarian ground, but on the was passed in 1881, and then amended in 1891 and 1911, respectively. Theses Acts introduced some improvements in regard to shorter hours, and conditions of work for children and women labour. The most noticeable features of the period, 1875-1918, were: (1) Complete absence of radicalism in the labour movement. The methods used by the workers were characterized by a tendency to petition, memorials and seek redress of grievances by mild pressure. These methods reflect the influence of leaders like Naryan Meghajee Lokhanday, Shapurjee Bengali, S.N.Banerjee, and others who were all political moderates and law abiding persons. They were rather social workers desirous to serve the society through amelioration. With theses characteristics, writes Punekar, the labour movement could hardly tackle such problems as excessive hours of work, few holiday, irregular payment of wages, incompetency of mill managers, inadequate fencing of machinery and the ill-ventilated and filthy sate of many work places. (2) The movement depended greatly on external philanthropy. Philanthropic agitation was the fore-runner of labour movement in India and having originated in philanthropy its motive force was sympathy rather than justice. Born of philanthropy, it was a movement for the workers rather than by the workers. (3) Most of the organizations were unstable and of loose type, as they lacked definite aims and constitution. Once the particular grievance was settled the association would disband.21

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(4) There was little conception of permanent trade union membership, the payment of dues or organized collective bargaining. About the Bombay mill hands Association, Dutt observed, The Association has no existence as an organized body, having no roll or membership, no funds no rule (5) The movement developed mostly among the educated class of workers such as the postal clerks and railway employees. It, however, did not make much progress in organized industries like textiles, mining and plantations. (6) The early leadership was provided by three types of persons. First, intellectuals such as lawyers, reformers, editors, teachers and preachers, who readily came forwarded to organize and lead the workers. Second, the careerists, who saw in the needs of workers opportunities for furthering their own ends, jumped in masquerading as labour leaders. The third group from M.Vardarajulu Naidu, B.Shiv Rao, Annie Basant and B.G.Talak, N.M.Joshi. 1.6.2 Early Trade Union period, from 1918 to 1924 The year 1918 was an important one for the Indian trade union movement. It market the start of a new era, an era of growth and one in which the leadership of the trade unions was to pass from the hands of the social workers into the hands of the politicians. The movement could take permanent roots in the Indian soil only after the close of World War I. This situation was due to : (i) The industrial unrest that few up as a result of grave economic difficulties created by war. The rising cost of leaving prompted the workers to demand reasonable wages for which purpose they united to take resort to collective action. (ii) The Swaraj movement intensified the movement, widened the gulf between the employees and te employees and brought about a mass awakening among the workers demanding racial equality with their British employers. The new consciousness produced restlessness, discontent, a spirit of defiance as well as new ideal and aspirations. (iii) the success of the Russian Revolution of 1971 created a revolutionary wave of ideas and a new self-respect and enlightenment, and added momentum to the feeling of class-consciousness among labourers. (iv) The establishment of the I.L.O., in 1919, gave dignity to the working class and also an opportunity to send a delegation to the annual conference of this body. It is was from this body that labour movement in various countries derived their inspiration, help and guidance. (v) Immediately after the war many Indian soldiers (who previously belonged to the working class) in the British army were demobilized and forced into the labour market. Theses ex-soldiers who had seen workers and the working conditions in Europe found that Western workers enjoyed better conditions of living because of their greater solidarity and of more opportunities available to them but Indian workers were denied these opportunities. By 1920, a large class of genuine proletariat developed. Hence, theses were new opportunities for the creation of trade unions. (vi) The non-co-operative movement of Gandhiji during 1920-21 and his support to the demand of industrial labour also greatly influenced the working class movement.

22



1.6.3 Left-wing Trade Unionism period , from 1924 to 1934 In 1924, a violent and long-draw-out strike by unions led to the arrest, prosecution, conviction and imprisonment of many communist leaders. The AITUC emerged as the representative of the Indian working class. By 1927 it united 57 unions with a membership of 150,555. the rapid growth of the trade unionism was facilitated by several factors, such as: (i) the growth anti-imperialist national movement; (ii) the brutal violence and repressive measures let loose by the British government, particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate arrest and imprisonment of national leaders and Satyagrahis; (iii) the phenomenal profits earned by the capitalist in the face of falling real ages during the post-war period. 1.6.4 Trade Unions Unity period - 1935 to 1938 In mid-thirties of the 20th century the state of divided labour movement was natural thought undesirable and soon after the first split, attempts at trade union unity began to be made through the efforts of the Roy Group on the basis of a platform of unity. The imitative taken by All-India Railwaymens Federation (s neutral body) had shown fruitful results. This Federation in its conference at Bombay, formed a Trade Union Unity committee in 1932. The Committee adopted the following platform of unity. A trade union is an orange of class-struggle; its basis task is to organize the workers for advancing and defending their rights and interests. Negotiation, representations and other methods of collective bargaining must remain an integral part of the trade union activates. It also laid down certain broad conclusions agreeable to both wings of labour-the AITUF and the INTUC. The final decision was taken in Delhi in 1933, when National Federation of Labour (NFL) was formed to facilitate the attempt towards unity. The AITUF and the railway unions amalgamated themselves with NFL under the name of the National Trade Union Federation (NTUF). The AITUC and the RTUC, however, remained aloof from theses efforts. 1.6.5 Second World War period - 1939 to 1945 The Second World War, which broke out in September 1939, created new strains in the united trade union movement. These strains arose because of the different political factions in the AITUC related in different ways to the role of India as a protagonist in the war. A large group of trade unionists led by the members of the Radical Democratic Party (such as M.N.Roy, J.Mehra, Miss Maniben Kera and V.B.Karnik) was of the opinion that the AITUC should support and participate in the anti-fascist war irrespective of the acts of omission and commission of the British government. An equally large number (supported by S.C. Bose, and others) were opposed to that view on the ground that it was an imperialist war of Great Britain with which Indian had no unions with a membership of 3,00,000 and formed a new central federation known as the Indian Federation of Labour. In 1942, his23

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Federation was recognized by the government as an organ representing Indian labour class. The IFL called : (i) for mobilization of Indian labour for conscious for securing for the workers bare minimum of wages and amenities which the wartime conditions effort if was aided by the Government of India, by providing large funds at the rate of Rs. 13,000 per month. The IFL grew very rapidly and by 1944, it claimed 222 unions with a membership of 407,773 workers. 1.6.6 Post independence period - 1947 to 2000 As pointed out earlier, when attempts to restructure the AITUC failed, those believing in the aims and ideals other than those of the AITUC separated from the organization and established the Indian National Trade Union Congress (INTUC) in May, 1947. the reason for forming a new union was expressed in the communication of G.L. Nada (the Secretary of the H.M.S.S.) addressed to all the congress-minded trade unionists. It reads: Congressmen in general and particularly those working in the field of labour, have found it very difficult to co-operate any longer with the AITUC which has repeatedly been adopting a course completely disregarding, or even in opposition to the declared policy and advice of the Indian National Congress. The Hindustan Mazdoor Sevak Sangh convened a conference in New Delhi on May 3 and 4, 1947. a resolution was adopted to set up another central organization. On September 25, 1947, the Working Committee of the Indian National Congress recommended to all Congressmen to get those unions, which they organized and of which they were the members, affiliated to the newly formed Indian National Trade Union. On January 20, 1984, Sardar Vallabhbhai Patel, while addressing a labour rally at Bombay, exhorted the workers to do away with the destructive leadership of the leftists who had been exploiting them for their own political ends and asked them to join the INTUC. The Creation of the INTUC was a confession both of the failure to create favorable conditions in the AITUC, and of the government and Congress party impatient with the leadership of the AITUC which had come completely under the domination of the communists. The INTUC was formed by Hindustan Mazdoor Sevak Sangh, a creation of the Pro-Gandhi wing in the Congress, who were associated with the Textile Labour Association of Ahmedabad. The ATLA became the guiding and driving force behind the INTUC. It also supplied 55,000 of the INTUCs intial membership of 575,000. the long experience of the ATLA in trade union affairs also resulted in a large proportion of the INTUC leaders coming from Ahmedabad. As Oranti puts it, Ideologically as well as administratively the bloodstream of the INTUC flows from Ahmedabad. Here the ATLA provides it with a strong membership nucleus, a rich treasury, and a cadre with a long experience in labour work. The INTUC itself joined the International Confederation of Free Trade Unions (ICFTU) as an affiliate. The INTUC had at the time of its inception 200 unions affiliated with it with a membership of 575,000. it grew rapidly in strength and it had the claim of24 ANNA UNIVERSITY CHENNAI


being recognized as the most representative central organization of organized labour in India. The AITUC, which for nearly 30 years had been considered as the Voice of Indian Labour. Thus lost ist premier position. According to its sponsors, the INTUC represented an attempt to go to the working class with a new and fresh approach to the solution of the problems. The INTUC was founded for establishing an order of society which is free from hindrances to al-round development of its individual members which fosters the growth of human personality in all its aspects and which goes to the utmost limit in progressively eliminating social, political and economic exploitation and inequality, the profit motive and economic activity and organization of society and the anti-social concentration of power in any form. Since the beginning the INTUC shared and supported the political outlook of the Indian National Congress its popular image was identified with that of the Congress, and hence, its policies are subject to directives of the Congress party. The constitution of the INTUC emphasizes democratic and peaceful methods, which are in harmony with the tradition, culture and aspirations of the people. 1.7 FUNCTIONS OF TRADE UNIONS The functions of modern trade unions are wide and more comprehensive than those of their forerunners. Generally speaking, these functions have been termed as (i) militant or protection function, and (ii) fraternal, ministrant or positive functions. The former functions aim at securing better conditions of work and employment for members through militant activities such as strikes, gherao, etc. if there is a failure of collective bargaining. The latter functions provide benefits to their members and support to them during strikes/lockouts or during periods of temporary unemployment by giving them financial support out of the funds raised with their contributions. One author has categorized the functions of trade union as intra-mural and extramural functions. The former include the welfare schemes of the unions within factory premised to improve workers conditions of employment; regulation of hours of work, and provision of rest intervals, adequate wages, sanitation, safety and security; continuity of employment, etc. For performing these functions, collective bargaining, negotiations and resort to a strike/lockout may be adopted. The latter include welfare schemes carried on with a view to help workers when in need of such assistance (medical or financial) during casualties, provision of education, recreational and housing facilities; provision of social and religious benefits, including payment of expenses of funeral or religious ceremonies for the deceased members or their dependents. 9 All these measures are designed to inculcate the spirit of cooperation among the workers.

NOTES

25


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According to Samuel Gompers, Trade unions were born of the necessity of workers to protect and defend themselves from encroachment, injustice, and protect the workers in their inalienable right to higher and better life; to protect them, not only as equal before the law, but also in their rights to the product of labour, to protect their lives, their limbs, their health, their homes, their firesides, their liberties as men, as workers, as citizen, to overcome and conquer prejudice and antagonism, to secure them the right to life, and the opportunity to maintain that result of their brain and brawn, and the civilization of which they are the founders and the mainstay. 10 Before we give a consolidated picture of the functions/objectives of a trade union, it would be useful to glance at their functions in some countries. 1.8 FUNCTIONS OF TRADE UNIONS IN INDIA As per the Indian Trade Union Act, 1926, the primary functions of a trade union are to protect and promote the interests of the workers and the conditions of their employment. They can also have other objectives, which are not inconsistent with this primary purpose or opposed to any law. In India, trade unions generally undertake the following functions: (i) To achieve higher wages and better working and living conditions for the members. (ii) To acquire control over industry by workers. (iii) To minimize the helplessness of the individual workers by making them stand-up unitedly and increasing their resistance power through collective bargaining; protecting the members against victimization and injustice by employers. (iv) To raise the status of the workers as partners in industry and citizens of society by demanding an increasing share for them in the management of industrial enterprises. (v) To generate self-confidence among the workers. (vi) To encourage sincerity and discipline among workers. (vii) To take up welfare measures for improving the morale of the workers. The National Commission on Labour has underscored certain basic functions to which trade unions have to pay greater attention such as: i. To secure fair wages for workers. ii. To safeguard the security or tenure and improve conditions of service. iii. To enlarge opportunities for promotion and training. iv. To improve working and living conditions. v. To provide for educational, cultural and recreational facilities. vi. To cooperate and facilitate technological advancement by broadening the understanding of workers in the issues involved in their jobs. vii. To promote identity of interests of the workers with their industry. viii. To offer responsive cooperation in improving levels of production and productivity, discipline and high standards of quality. ix. To promote individual and collective welfare.26 ANNA UNIVERSITY CHENNAI


Besides these basic functions of trade unions, the Commission enjoined the following responsibilities upon the unions: (i) (ii) (iii) Promotion of national integration. Generally, influencing the socio-economic policies of the community through the active participation in their formulation at various levels. Instilling in their members a sense of responsibility to industry and the community.

NOTES

The First Five-Year-Plan while spelling our the role of trade unions emphasized that they should: (a) Present plans to workers so as to create enthusiasm among them for the plans. (b) Exercise the utmost restraint in regard to work stoppage. (c) formulate wage demands which are attuned to the requirements of economic development and are in keeping with considerations of social justice. (d) Assume greater responsibility for the success of the productive effort. 20 A responsible trade union should cooperate in all crucial areas so that the tempo of growth, particularly in the industrial sector, can be speeded up. Thus, trade unions should maintain: (A) A reasonable degree of peace in industry: These conditions by promoting an uninterrupted flow of industrial output, adds to the national income and creates the needed investment climate. A responsible union balances the short-term workers gain with their long-run gain originating from a stable growth of the industry where they are employed. (B) Supporting technological change, i.e: to cooperate in the introduction of new technology, new processes, new managerial techniques etc. These technological changes by promoting an increase in the productivity of the concern also boost its efficiency and effectiveness. (C) Accept a growth-oriented wage payment system: The adoption of growthoriented wage system enables the management to utilize workers untapped potential. By extending co-operation in the above areas, the trade unions will be able to promote industrial growth, in particular and economic growth, in general. The improved productivity brought about by the promotion of technological changes and better utilization of labour would generate higher profits which can be ploughed back into industry. In fine, we can say that the role and functions of trade unions varies from country to country depending on its socio-economic development, political system, extent of trade unionism, extent of wage employment etc. In capitalist countries, they are defensive in character. There is generally some antagonism between the workers and the employers on basic issues relating to wage participation. In democratic countries, besides being defensive, the trade unions also assist the Government in executing their plans for the well-being of27 ANNA UNIVERSITY CHENNAI

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the working class. In erstwhile communist countries, they were dependent on the state for their functioning. The trade unions in countries like France and the Netherlands are statutorily required to be consulted on any draft legislation dealing with economic and social issues. In Sweden, unions participated at the highest level of planning. They are responsible for the implementation of labour and social security legislation. In Germany and Yugoslavia, trade unions take part in management under co-determination. In the USA and Australia, the unions are not very formal with the Government. In Britain, the role of the trade union as a partner in social control is played in an informal manner. Here the main point is to emphasize the fact that trade unions change their outlook, functions and practices to suit the prevailing conditions. That is why it has been said: The trade unions of to-day are not content with protecting and improving wages and conditions of labour; they concern themselves with all matters by which the workers are likely to be affected, whether as producers or consumers, whether as units of industrial manpower or as citizens. 21 In India, the role of trade unions has been perceived differently by the different national unions. For instance, according to the All India Trade Union Congress (AITUC), a trade union is an organization of the working class in its struggle against the all-pervading power of the capitalist class. It has to struggle with employers in order to secure better living and working conditions and to serve the interests of the working class in the given capitalist society, to mitigate the burden of exploitation. In its struggle, it used economic, political, moral and ideological means to attain its demands and objectives. The ultimate aim of the trade union movement is to abolish capitalism and wage slavery and establish socialism in which not only the working class but all layers of society are freed from exploitation.22 The Indian National Trade Union Congress (INTUC) is of the view that union should: (i) (ii) Serve their members and cater to the many-sided requirements of workers as responsible citizens. Plan for sustaining the interests of their members during times of industrial peace by organizing intellectual, social, cultural and recreational activities, consumer cooperatives, credit cooperatives and co-operative housing societies. Educate the rank and file so that the traditional agitational role should gradually be transformed into one of understanding. The unions should be given an effective role in the affairs of the industry.23

(iii)

The Hind Mazdoor Sabha (HMS) has pointed out that if trade unions allow themselves to be diverted from their traditional role in the name of requirements of economic development, the weaker and exploited sections of the working class will find themselves terrorized and deprived of safeguards to an even greater extent.2428 ANNA UNIVERSITY CHENNAI


The principal function of the trade union is the regulation of relations between the employers (management) and employees (workmen), and also the provision of benefit to its members. In this vein, it carries out the following objectives: (1) To organization of all eligible members under one platform. (2) To represent the workers to management in cases of disputes or differences. (3) To enter in the collective bargaining and other agreement on behalf of workers. (4) To represent workers on various participative forums. (5) To undertake various activities for the welfare of its members. (6) To provide benefit to members in case of sickness, old age, trade disputes, unemployment, litigation and also to provide funeral expenses. (7) Furtherance of political objectives. (8) To participate in the work of any association that furthers the activities of trade unions and its members. (9) To arrange the necessary activities for the social and moral upliftment of workers. (10) To arrange for printing or publishing facilities for the benefit of workers. It is to be noted that the functions undertaken by the trade unions are not static but changes with the changes in the economic and social set up of the country. The institutional set-up of the society in which they operate also determine the functions of the unions. In the initial stages, they undertake functions which are primarily concerned with safeguarding the members interests but with the passage of time and the pace of industrialization, change in technology and the system of production create new complex problems, the functions have been widened to meet the changing circumstances. According to Daker, Unions aim at securing economic security and betterment, industrial and social status, and the role as political institution. 1.9 TYPES AND STRUCTURE OF TRADE UNIONS Ever since the dawn of industrialization there has emerged a wide variety of unions across the globe. These are classed under two heads. 1.9.1 The purpose for which unions are formed. 1.9.2 Trade Unions based on their membership structure A brief discussion of different types of unions is given below. 1.9.1 The Union Classified According to Purpose Under this heads, normally two types of union exist. They are; (1) Reformist (2) Revolutionary.

NOTES

29


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1.9.1.1. Reformist Unions These unions are those which aim at the preservation of the capitalist society and the maintenance of the usual employer-employee relationship, elimination of competitive

DBA 1748 Industrial Relations and Labour Welfare

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