Industrial relations and trade unions

Industrial Relations And Trade Unions

• Concerned with the systems, rules and procedures usedby unions & employers to determine the reward for effort& other conditions of employment, to protect theinterests of the employed and their employers and toregulate the ways in which employers treat theiremployees ”

• The Industrial Relations can be referred to as Labour-Management,Employee-Employer relations.

Industrial Relations

• Uninterrupted production

• Reduction in Industrial Disputes

• High morale

• Benefit to workers and management as well

• Improves productivity (or) Reduces Wastage

• Foster Industrial Peace

• Promote Industrial Democracy

Importance of Industrial Relations

• Union co-operate with the mgt. & the mgt.’s right to manage is accepted

• They seek direct negotiations with employees.

Assumption: Common interest & promotion of harmony No strikes

are there.

Unitary Approach

Pluralistic ApproachIt perceives:

• Trade union as legitimate representatives of employee interests.

• Stability in IR as the product of concessions and compromises between mgt. &

unions.

• Conflict between Mgt. and workers is understood as inevitable.

• Conflict is also viewed as very useful for innovation and growth.

• Regard conflict as Pluralists…

• Marxists see conflict as a product of the capitalist society.

• Conflict arises due to the division in the society between those

who own resources and those who have only labor to offer.

• For Marxist all strikes are political.

Marxist Approach

Parties Involved in Industrial Relations

Industrial Relations

Employees

Employers

Government Courts & Tribunals

Employer Associations

Trade Union

• To redress the bargaining advantage on one-on-one basis.

• To secure better terms and conditions for their members.

• To obtain improved status for the worker in his/her work.

• To increase implementation of democratic way of decision making at various levels.

Employees

• Creating and sustaining employee motivation

• Ensuring commitment from employees

• Negotiating terms and conditions of employment with TUleaders

• Sharing decision making with employees

Employers

• Develop healthy and stable industrial relations.

• Promote collective bargaining at different levels.

• Bring a unified employers’ viewpoint on the issues of industrial relations to the government in a concerted manner.

• Represent in the meetings of ILC and SLC boards in conformity with tripartite approach to labour matter.

• Employers’ Associations are formed to promote and protect interests of employers in Trade and industry.

Employer’s Association

• Primary Objective

• Promote and protect the interest of employers engaged in industry, trade and commerce in India.

• Study, analyse and disseminate information relating to labour policy, labour management relations, collective bargaining, etc.

• Offer advice concerning various aspects of labour policy.

• Liaise with Union Government and initiate steps that are representative and legislative in nature.


• Secondary Objective

• Train and develop staff and members.

• Obtain data on wages and conditions of work in industries attached to them. Come out with surveys, research-based reports on issues of importance to both labour and management.

• Take up projects for social and family welfare.


• Secondary Objective

• Deal with safety and health at work place and working environment.

• Initiate steps to improve public image and improve public relations.

• Educate the public regarding the character, scope, importance and needs of trade, industry and commerce represented by members.


• The State, as of today, regulates the relationship between the management and the Labour and seeks to protect the interests of both the groups. The government has set up wage boards, Labour courts, tribunals and enacted laws to lay down norms and to enforce their compliance.

Role Of Government

• Internal Factors

• The attitudes of managements to employees and unions.

• The attitudes of employees to management.

• The inevitability of the differences of opinion between managements and unions

• The extents to which the management can or wants to exercise absolute authority to enforce decisions affecting the interest of employees.

Factors Affecting Employee Relations Strategy


• The present and likely future strength of unions.

• The extent to which there is one dominating union or the existence of multiple unions leading to inter union rivalry.

• The extent to which effective and agreed procedures for discussing and resolving grievances or handling disputes exist within the company



• The effectiveness of managers and supervisor in dealing with the problems and disputes related to industrial relations

• The prosperity of the company, the degree to which it is expanding, stagnating or running down and the extent to which technological changes are likely to effect employment conditions and opportunities.


• External Factors

• The militancy of the unions-nationally or locally.

• The effectiveness of the union and its officials and the extent to which the officials can and do control the activities of supervisors within company.

• The authority and effectiveness of the employers association.


• External Factors

• The effectiveness of any national or local procedure agreements that may exists.

• The employment and pay situation nationally and locally.

• The legal framework within which Industrial Relations exits.


• Formed to protect and promote the interests of their members

• Primary function is to protect the interests of workers against discrimination and unfair labor practices

Trade Union

Objectives:

• Representation (Workers’ Interests)

• Negotiation (Collective Bargaining)

• Voice in decisions (Lay off, Retrenchment) affecting workers

• Member Service (Education, Training, Welfare, Discounts, Loans)

Trade Union

Functions• Militant functions

• Fraternal functions

Trade Union

It’s Importance

• For industrial peace• Decisions taken through the process of collective bargaining and negotiations

between employer and unions are more influential

• Effective communication between the workers and the management

• Economic development • Recruitment & selection

• Discipline among workforce

• Settlement of ID in rational manner

It’s Purpose

• Employment Protection and Job Creation.

• Economic Protection.

• Social Status - Identity.

• Political Role - Democratic Institution

• Societal Obligation - Transformation.

• Competitiveness / Sustainable Development.

Advantages and Benefits• Sense of Belongingness

• Platform for self expression

• Betterment of relationships

• Sense of Participation

• Sense of Security

• Greater Bargaining Power

• Minimize Discrimination

• Trade unions are organizations of workers formed to protect the rights and interests of workers through collective action.

• In India, the first quarter of the 20th century gave the birth of the trade union movement. A series of strikes were declared in India in the twenties. The success of most of these strikes led to the organization of many unions.

Growth Of Trade Union In India

• In 1920, the All India Trade Union Congress (AITUC) was set up. In 1926, the Trade Unions Act was passed which gave a legal status to the registered trade unions.

• Subsequently many trade unions were formed such as:

• Indian National Trade Union Congress (INTUC),

• Centre of Indian Trade Unions (CITU),

• Hind Mazdoor Sabha (HMS),

• Bharatiya Mazdoor Sangha (BMS),

• United Trade Union Congress (UTUC), and

• National Federation of Independent Trade Unions (NFITU).


• It was not until the close of First World War, that the modern trade Union movement really took permanent roots in Indian Soil.

• The establishment of Bombay Mill Hands’ Association is considered as the first phase of the trade union movement in India. In 1905, the Printers Association of Calcutta and Dock Union Board in Bombay were formed.


• There was labour unrest in India at the end of the First World War. In several industries, the workers went on strikes to secure wage increases. The Russian Revolution and the Industrial Labour Organization have inspired the Indian labourers to launch trade unions like the Spinners Union and Weaver’s Union which had been established in Madras and Ahmedabad respectively.


• But the important step in the history of Indian trade unionism was the foundation of All India Trade Union Congress in 1920. There had been a steady progress of trade union movement in India. However, the decision of the Madras High Court that the formation of trade union is illegal stood in the way of its development.


Problems for Trade Union

• Finance.

• Low Membership.

• Lack of interest.

• Trade union leadership

• Multiple Unions.

Problems for Trade Union

• Union Rivalry.

• Heterogeneous nature of labour.

• Absence of paid office bearers.

• Illiteracy .

• Uneven Growth.

Thank You For Your Time

Industrial relations and trade unions

Recruiting & HR