I R Unit-I

8/8/2019 I R Unit-I

1/37

UNITUNIT--II

OVERVIEW OF INDUSTRIALOVERVIEW OF INDUSTRIAL

RELATIONSRELATIONS

8/8/2019 I R Unit-I

2/37

CONCEPTOF INDUSTRIALCONCEPTOF INDUSTRIAL

RELATIONSRELATIONSIndustrial relation is a relationship betweenIndustrial relation is a relationship betweenmanagement and employees or among employeesmanagement and employees or among employeesand their organizations, that characterize andand their organizations, that characterize and

grow out of employment.grow out of employment.-- Dale YoderDale Yoder

Industrial relations may be defined as theIndustrial relations may be defined as thecomplex of intercomplex of inter--relations among workers,relations among workers,

managers and government.managers and government.

-- Prof. DunlopProf. Dunlop

8/8/2019 I R Unit-I

3/37

Partiesto Industrial RelationsPartiesto Industrial Relations

Employers

Employees

Government

INDUSTRIAL

RELATIONS

Employers Associations

TradeUnions

Courtsand Tribunals

8/8/2019 I R Unit-I

4/37

CharacteristicsCharacteristics

It is the outcome of Employment RelationshipIt is the outcome of Employment Relationshipin an Industrial Enterprise.in an Industrial Enterprise.

It develop the skills and Methods of adjusting toIt develop the skills and Methods of adjusting toand cooperative with each other.and cooperative with each other.

It creates complex rules and regulations toIt creates complex rules and regulations tomaintain harmonious relations.maintain harmonious relations.

The important factor of industrial Relations are:The important factor of industrial Relations are:Employees and their organization, employer andEmployees and their organization, employer andtheir associations and government.their associations and government.

8/8/2019 I R Unit-I

5/37

NatureofIRNatureofIR

Grievances and their RedressalGrievances and their Redressal

Workers participation in managementWorkers participation in management

Ethical code and DisciplineEthical code and Discipline Collective bargainingCollective bargaining

Standing ordersStanding orders

Machinery for the settlement of industrialMachinery for the settlement of industrialDisputes.Disputes.

8/8/2019 I R Unit-I

6/37

ObjectivesofIRObjectivesofIR

To develop and maintain harmonious relations betweenTo develop and maintain harmonious relations betweenmanagement and Labormanagement and Labor

To safeguard the interest of labor as well as the managementTo safeguard the interest of labor as well as the management

To establish and maintain the Industrial democracy.To establish and maintain the Industrial democracy.

To avoid all form of industrial ConflictTo avoid all form of industrial Conflict

To rise the productivity in an era of full employmentTo rise the productivity in an era of full employment

To ensure a healthy and balanced social orderTo ensure a healthy and balanced social order

To bring out government control over industrial unitsTo bring out government control over industrial units

8/8/2019 I R Unit-I

7/37

Approachesto IRApproachesto IR

Psychological approachPsychological approach

Sociological ApproachSociological Approach

Human Relations ApproachHuman Relations Approach

GiriGiri ApproachApproach

GandhianGandhian ApproachApproach

8/8/2019 I R Unit-I

8/37

Evolution ofIRin IndiaEvolution ofIRin India

8/8/2019 I R Unit-I

9/37

Evolution ofIndustrial SystemEvolution ofIndustrial System

Agrarian Economy StageAgrarian Economy Stage

Handicraft Stage

Handicraft Stage

Cottage or puttingCottage or putting--out Stageout Stage

Factory or Industrial Capitalism StageFactory or Industrial Capitalism Stage

8/8/2019 I R Unit-I

10/37

CharacteristicsofIndianCharacteristicsofIndian

Industrial Relations SystemIndustrial Relations System Employer/Management in Retrospect and historically usedEmployer/Management in Retrospect and historically used

to consider trade unions as a necessary evil of the industrialto consider trade unions as a necessary evil of the industrial

system.system. The trade unions perceive their main task is to challengeThe trade unions perceive their main task is to challenge

and oppose decisions of Management.and oppose decisions of Management.

trade unions are poorly organized in the country.trade unions are poorly organized in the country.

The parties are largely in disagreement over the scope ofThe parties are largely in disagreement over the scope ofcollective bargaining and various issues to their negotiationcollective bargaining and various issues to their negotiationprocess.process.

8/8/2019 I R Unit-I

11/37

Bargaining between employers and unions isBargaining between employers and unions is

very much centralized.very much centralized.

The employers are highly organized.The employers are highly organized. The Indian Industrial Relations system is slowlyThe Indian Industrial Relations system is slowly

changing over time.changing over time.

8/8/2019 I R Unit-I

12/37

Evolution ofIndustrial RelationEvolution ofIndustrial Relation

in Indiain India

EarlyBritish RuleEarlyBritish Rule

First World war to PreFirst World war to Pre--IndependenceIndependence Independence and afterIndependence and after

8/8/2019 I R Unit-I

13/37

Early British RuleEarly British Rule Started in 1831Started in 1831

18531853 C

otton mill inB

ombayC

otton mill inB

ombay 18551855 Jute mill in CalcuttaJute mill in Calcutta

18771877 the first indication of industrial unrest and earliest workthe first indication of industrial unrest and earliest workstoppage on the initiative on weavers of Empress Mills, Nagpur.stoppage on the initiative on weavers of Empress Mills, Nagpur.

18811881 The Factories ActThe Factories Act 18841884 5,000 workers presented a memorandum to the Bombay5,000 workers presented a memorandum to the Bombay

Factory labor commission.Factory labor commission.

18901890 The first labor Association named BombayThe first labor Association named Bombay MillhandsMillhands

association establishedassociation established

18951895 the first time workers struck work at the Budge Budgethe first time workers struck work at the Budge BudgeJute Mill.Jute Mill.

18971897 Amalgamated Society of Railways Servants of IndiaAmalgamated Society of Railways Servants of India

19051905 another organization in Calcuttaanother organization in Calcutta

19071907 The Postal union in BombayThe Postal union in Bombay

8/8/2019 I R Unit-I

14/37

FirstWorld WartoPreFirstWorld WartoPre--

IndependenceIndependence 19141914 19181918 the first world war (created a boom forthe first world war (created a boom for

employers)employers)

19191919 -- ILOILO

19211921 one strike at Ahmedabad (led by Mahatama Gandhi),one strike at Ahmedabad (led by Mahatama Gandhi),another at Madras (led byB.P.Wadia)another at Madras (led byB.P.Wadia)

19231923 The workmens compensation actThe workmens compensation act

19261926 The trade union actThe trade union act

19171917 The trade dispute actThe trade dispute act 19461946 The industrial employment (standing order) actThe industrial employment (standing order) act

19471947 The industrial dispute actThe industrial dispute act

8/8/2019 I R Unit-I

15/37

Independenceand AfterIndependenceand After

1947 A tripartite Conference

All five year Plans.

8/8/2019 I R Unit-I

16/37

International LaborOrganizationInternational LaborOrganization

(ILO)(ILO)

8/8/2019 I R Unit-I

17/37

INTERNATIONAL LABORINTERNATIONAL LABOR

ORGANIZATION [ILO]ORGANIZATION [ILO]

Established on April 19,1919 at VersaillesEstablished on April 19,1919 at Versailles

Came in to existence at the end of First world WarCame in to existence at the end of First world War

Established by Versailles Peace ConferenceEstablished by Versailles Peace Conference

An Autonomous body associated with League ofAn Autonomous body associated with League ofNationsNations

Became specialized agency of United Nations in 1946Became specialized agency of United Nations in 1946

Its three Constituents: (i) The GovernmentIts three Constituents: (i) The Government

(ii) Workers(ii) Workers

(iii) Employers(iii) Employers

8/8/2019 I R Unit-I

18/37

Objectivesofthe ILOObjectivesofthe ILO

Full EmploymentFull Employment

Raising of the Standard of LivingRaising of the Standard of Living

Job satisfactionJob satisfaction

Fair Wages and

BonusFair Wages and

Bonus

Providing ProtectionProviding Protection

Collaboration of workers and employersCollaboration of workers and employers

Child welfare and maternity protectionChild welfare and maternity protection Adequate Nutrition, Housing, CultureAdequate Nutrition, Housing, Culture

Education facilitiesEducation facilities

8/8/2019 I R Unit-I

19/37

Functionsofthe ILOFunctionsofthe ILO

It passes conventions and makes recommendations onIt passes conventions and makes recommendations onthe labor mattersthe labor matters

It helps in building up an international labor codeIt helps in building up an international labor code

Gives expert advice to member countries for

Gives expert advice to member countries forimproving their labor conditionsimproving their labor conditions

It provides training to the peoples to solve laborIt provides training to the peoples to solve laborproblemsproblems

It organizes regional conferences every yearIt organizes regional conferences every year

It carries out research on the labor problems andIt carries out research on the labor problems andpublish its findings in the forms of books andpublish its findings in the forms of books and

magazinesmagazines

8/8/2019 I R Unit-I

20/37

StructureofILOStructureofILO

ILO

International

Labor Conference

Governing

Body

International

Labor Office

Representatives of the:

Government Employers

workers

8/8/2019 I R Unit-I

21/37

FunctionsofILCFunctionsofILC

To fix the amount of contribution by the MemberTo fix the amount of contribution by the MemberStatesStates

Appoint committees to deal with different mattersAppoint committees to deal with different matters

To select once in 3 years members of the GoverningTo select once in 3 years members of the GoverningBodyBody

To formulate international labor standardsTo formulate international labor standards

To confirm the powers, functions and procedures ofTo confirm the powers, functions and procedures ofregional conferencesregional conferences

To elect its presidentTo elect its president

8/8/2019 I R Unit-I

22/37

TheGoverning BodyTheGoverning Body

Representatives of the

Government, Workers,Representatives of the

Government, Workers,Employers in the ratio of 2:1:1Employers in the ratio of 2:1:1

The Tenure of this body is 3 yearsThe Tenure of this body is 3 years

FUNC

TIONS of thisB

ody are:FUNC

TIONS of thisB

ody are:-- To Scrutinize the BudgetTo Scrutinize the Budget

-- To coordinate the work of the organizationTo coordinate the work of the organization

-- To appoint the Director General of the OfficeTo appoint the Director General of the Office-- To fix the date, duration and the agenda of theTo fix the date, duration and the agenda of theRegional ConferencesRegional Conferences

8/8/2019 I R Unit-I

23/37

International LaborOfficeInternational LaborOffice

FunctionsFunctions of the international Labor Office:of the international Labor Office:

-- To collect and distribute information of the InternationalTo collect and distribute information of the Internationallabor and social problemslabor and social problems

-- To prepare the documents for the conferencesTo prepare the documents for the conferences

-- To bring out publications dealing with industrial laborTo bring out publications dealing with industrial laborproblems of international interestproblems of international interest

8/8/2019 I R Unit-I

24/37

Financeofthe ILO

The Budget is prepared and fixed on the

recommendation of the GoverningBody andmember states make their contribution.

Contribution are fixed on adhoc basis from yearto year.

India contributes 2.77 % of the annual budget ofthe ILo.

8/8/2019 I R Unit-I

25/37

Impact of the ILO on The Indian laborImpact of the ILO on The Indian labor

India is the member of ILO since its inception.

India has adopted many conventions andrecommendation on international standards for

improvement in labor conditions, under Article 3 of theconstitution of the ILO.

India has been nominating non-government delegatesand advisors to the ILC every year.

The ILO has so far adopted 173 conventions and 180Recommendation.

India has ratified 36 conventions.

8/8/2019 I R Unit-I

26/37

ROLEOF THE STATE IN I RROLEOF THE STATE IN I R

Concern for planned development and rapidConcern for planned development and rapideconomic growth, as given in the successiveeconomic growth, as given in the successiveFive year Plan.Five year Plan.

Requirements of a welfare state envisaged inRequirements of a welfare state envisaged inour Constitution, particularly the directiveour Constitution, particularly the directiveprinciples of state policy and more importantlyprinciples of state policy and more importantly

Articles 43 and 43 A.Articles 43 and 43 A.

The socioThe socio--economic imbalances in the society,economic imbalances in the society,the depressed condition of the working class asthe depressed condition of the working class asobserved by the royal commission on laborobserved by the royal commission on laborand the labor investigation committee.and the labor investigation committee.

8/8/2019 I R Unit-I

27/37

The imbalance in and between unions andThe imbalance in and between unions and

employers and the weakness of both the socialemployers and the weakness of both the socialpatterns, leading to preference for adjudicationpatterns, leading to preference for adjudication

despite avowed recognition and appreciation ofdespite avowed recognition and appreciation ofthe merits of free and fair collective bargaining.the merits of free and fair collective bargaining.

The anxiety of the state concerning the adverseThe anxiety of the state concerning the adverseimpact of industrial dispute and work stoppage,impact of industrial dispute and work stoppage,including strikes and lock outs.including strikes and lock outs.

The role of the state as a major employer, withThe role of the state as a major employer, withpublic sector being projected to achieve thepublic sector being projected to achieve the

commanding heights of the economy as per thecommanding heights of the economy as per theIndustrial Policy Resolution.Industrial Policy Resolution.

8/8/2019 I R Unit-I

28/37

RoleofTrade UnionRoleofTrade Union

Achieving higher wages for the workers (fair wages)Achieving higher wages for the workers (fair wages)

Acquiring control of industry by workers.Acquiring control of industry by workers.

To enlarge opportunities for promotion and training.To enlarge opportunities for promotion and training.

To safeguard security of tenure and improve conditions ofTo safeguard security of tenure and improve conditions of

service.service.

To improve working and living condition.To improve working and living condition.

To provide educational, cultural and recreational facility.To provide educational, cultural and recreational facility.

To offer responsive coTo offer responsive co--operation in improving levels ofoperation in improving levels ofproduction and productivity, discipline and high standard ofproduction and productivity, discipline and high standard ofquality.quality.

To promote individual and collective welfare.To promote individual and collective welfare.

8/8/2019 I R Unit-I

29/37

Employers AssociationEmployers Association

Employers organizations came intoEmployers organizations came into

existence as the result of the formation of ILOexistence as the result of the formation of ILOand the growing presence of Trade Unions,and the growing presence of Trade Unions,

especially after the first world war.especially after the first world war.

The Royal Commission on Labor,1929The Royal Commission on Labor,1929

recommended that the Indian Employers need anrecommended that the Indian Employers need an

organization to deal with labor problems fromorganization to deal with labor problems fromthe employers point of view.the employers point of view.

8/8/2019 I R Unit-I

30/37

ObjectivesofEAObjectivesofEA

To promote and protect interests of employersTo promote and protect interests of employersin trade and industry.in trade and industry.

To defend , represent or advise affiliatedTo defend , represent or advise affiliated

employers.employers.

8/8/2019 I R Unit-I

31/37

FunctionsofEAFunctionsofEA

Primary ObjectivesPrimary Objectives

Secondary ObjectivesSecondary Objectives

8/8/2019 I R Unit-I

32/37

PrimaryObjectivesPrimaryObjectives

Promote and protect the interest of employers.Promote and protect the interest of employers.

Study and analyze information relating to laborStudy and analyze information relating to labor

policy, labor management relations, collectivepolicy, labor management relations, collectivebargaining etc.bargaining etc.

Offer advice concerning various aspect of laborOffer advice concerning various aspect of labor

policy.policy.

8/8/2019 I R Unit-I

33/37

SecondaryObjectivesSecondaryObjectives

Train and develop staff and members.Train and develop staff and members. Obtain data on wages and conditions of work inObtain data on wages and conditions of work in

industries attached to them.industries attached to them.

Come out with surveys, research based reports onCome out with surveys, research based reports on

issues of importance to both labor and management.issues of importance to both labor and management.

Deal with safety and health at work place and workingDeal with safety and health at work place and workingenvironment.environment.

Initiate steps to improve public image and publicInitiate steps to improve public image and publicrelations.relations.

8/8/2019 I R Unit-I

34/37

Origin and GrowthOrigin and Growth

19201920 Associated Chamber ofCommerceAssociated Chamber ofCommerce(ASSOCHAM)(ASSOCHAM)

19271927 Federation of Indian Chamber ofCommerceFederation of Indian Chamber ofCommerce(FICC)(FICC)

19321932 -- All India Organization of Employers (AIOE)All India Organization of Employers (AIOE)

19331933 Employers Federation of India (EFI)Employers Federation of India (EFI)

19411941 All India Manufactures Organization (AIMO)All India Manufactures Organization (AIMO)

and got recognition from ILO in 1980.and got recognition from ILO in 1980.

8/8/2019 I R Unit-I

35/37

StructureofEAStructureofEA

Local OrganizationLocal Organization Bombay Mill Owner associationBombay Mill Owner association

Regional OrganizationRegional Organization Employers Federation of South IndiaEmployers Federation of South India

Central OrganizationCentral Organization AIOE, EFI, AIMOAIOE, EFI, AIMO

8/8/2019 I R Unit-I

36/37

CausesofPoor IndustrialCausesofPoor Industrial

RelationsRelations Economic causesEconomic causes

Organizational causesOrganizational causes

Social causesSocial causes Psychological causesPsychological causes

Political causesPolitical causes

8/8/2019 I R Unit-I

37/37

MeasuresforimprovingMeasuresforimproving

Industrial RelationsIndustrial Relations Sound human resource policySound human resource policy

Constructive attitudeConstructive attitude

Collective bargainingCollective bargaining Participative managementParticipative management

Responsible UnionsResponsible Unions

Employee welfareEmployee welfare Grievance procedureGrievance procedure