Industrial Relations & TU

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Industrial relations & TU

Factors affecting IR and various aspects of TUs

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Factors affecting IRInstitutional factorsEconomic factorsTechnological factorsPsychological factorsPolitical and legal factorsGlobal factors

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Institutional factors

HR policies and practicesOrganizational climate and culture and

value systemsAdaptability to changeCodes of conductCollective bargaining agreementsLabour unionsEmployers’ organizations/ federations

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Economic factorsType of ownership: public or private limited,

Whether domestic or MNC, Govt. or private sector

Nature and composition of the workforceThe source of labourLabour market statusDisparity of wages between groupsLevel of unemployment

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Technological factorsWork methodsType of technologyRate of technology changeAbility of organizations and people to cope

with change

Since these factors have a direct influence on employment status, wage level, collective bargaining process in an organisation.

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Psychological factorsOwners’ attitudePerception of the workforceWorkers’ attitude towards workTheir motivation, interest, dissatisfaction

and boredom leading from man-machine interface.

These have a great impact on job and personal life factors and hence indirectly impact IR

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Political and legal factorsPrevalent Political philosophyAttitude of governmentThe ruling party/ ies ideologyLabour laws and The legal framework for IRChanges in the above frameworkRole of political factions in TUs

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Global factorsRole of ILOInternational relationsNewer formats of business

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Trade Unionism

The why and how

http://www.youtube.com/watch?v=DKjtP_Td4ZI&feature=channel

http://labourbureau.nic.in/TU%202k2%20Statement%202.1.htm

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A union is

An association either of employees or employers or of independent workers

Relatively permanent formations

with the legal authority to represent workers,

Formed for securing economic and social benefits for members

Union

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management positions normally not part of the union but still responsible for employee performance, budgets & profits

the goals & objectives of the union influenced by membership

Trade Unions

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Motivation to Join Unions

Motivation to Join Unions

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Motivation to Join Unions…..Cntd.

Motivation to Join Unions…..Cntd.

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Wages and salariesJob security factorsWorking conditionsDiscipline issuesPersonnel policiesWelfare of workers: sanitation,

hospitals, quarters, education etc.

Negotiating machinerySafeguarding health and

interest of the industry

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Objectives of Labor Unions

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What do unions do?The main service a union provides for its

members is negotiation and representation. There are other benefits people get from being members of trade unions.

Negotiation Representation Information and advice Member services

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Negotiation

1. Negotiation is where union representatives discuss with management issues which affect people working in an organisation.

2. Pay, working hours, holidays and changes to working practices are the sorts of issues that are negotiated.

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Representation

1. Trade unions also represent individual members when they have a problem at work.

2. If the problem cannot be resolved amicably, the matter may go to an industrial tribunal.

3. People can ask their union to represent them at industrial tribunals.

4. Most cases that go to industrial tribunals are about pay, unfair dismissal, redundancy or discrimination at work.

5. Unions also offer their members legal representation. 6. Normally this is to help people get financial compensation for

work-related injuries

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1. Unions have a wealth of information which is useful to people at work.

2. They can advise on a range of issues like how much holiday you are entitled to each year, how much pay you will get if you go on maternity leave, and how you can obtain training at work.

Information and advice

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Member services

During the last ten years, trade unions have increased the range of services they offer their members. These include:

• Education and training - Most unions run training courses for their members on employment rights, health and safety and other issues.

• Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt.

• Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed

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Classification of Functions

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Militant or protective or intra-mural: include protecting the worker’s interest through collective bargaining and collective action such as strikes, gheraos etc.

Fraternal or extramural: providing financial and non-financial assistance to workers during the periods of strikes and lock-outs, provision for education etc.

Political functions: affiliating union to political parties, collecting donations, seeking political help for TU actions, and providing feedback for changes in legal framework.

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Workers Seek Collective Representation

Union Begins TheUnion Begins TheOrganizing ProcessOrganizing Process

Collective Bargaining For A ContractCollective Bargaining For A Contract

Contract AdministrationContract Administration

ManagementManagement LaborLabor

Representation Election is HeldRepresentation Election is Held

The Labor Organization Process

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Employer Tactics Opposing Unionization

Stressing favorable employer-employee relationship experienced without a union.

Emphasize current advantages in wages, benefits, or working conditions the employees may enjoy

Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights. Use statistics to show that unions indulge in large numbers of illegal activities.

Proactive HR measures

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Impact of Unionization on Managers

Challenges to Management PrerogativesManagement prerogatives versus union

participation in decision-making in the work place.

Loss of Supervisory AuthorityConstraints on management in directing and

disciplining the work force by terms of the collective bargaining agreement.

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Problems and Weaknesses of Trade Unions:

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Uneven growth, Multiplicity of unionsOutside leadershipIndifferent Attitude of workersLack of educationMay not welcome change, Strike on

Illogical basisUndue demands relating to wagesMilitant activitiesPolitical involvement

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Craft unions Unions that represent skilled craft workers

Industrial unions Unions that represent all workers—skilled,

semiskilled, unskilled—employed along industry lines

Employee associations Labor organizations that represent various

groups of professional and white-collar employees in labor-management relations.

Types of Unions: Classification based on trade

Types of Unions: Classification based on trade

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Qualified union Unions having at least 5% of membership of

total employeesPrimary Unions

Having membership of at least 15% of the employees in an undertaking

Representative Union Having a membership of not less than 25% of

the total employees as members in an undertaking

Types of Unions: Classification based on representation

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Employers Response

Decide what the organizations response is going to be

I.e.. counter campaign, union acceptance, union avoidance, union substitution?

Prepare to hire labour relations specialist if required

seek legal advice and conduct training sessions to ensure management/supervisors are aware of legal responsibilities etc.

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Unfair Labor Practices

Engaging or encouraging illegal strikes

failing to represent employees fairly

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TRADE UNION MOVEMENT IN INDIA

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All of the organized activity of wage-earners to better their own conditions their own conditions either immediately or in the more or less distant future.”

Labour movement implies in some degree, a community of outlook, it is an organization, or rather many forms of organizations based upon the sense of common status and a common need for mutual help.

A trade union is an essential basis of a labour movement for without cannot exist, because trade unions are the principal schools in which the workers learn the lesson of self-reliance and solidarity.

The trade union movement on the other hand, started after 1918, when the workers formed their associations to improve their conditions. It is, thus, a part of the ‘labour movement’, which is a much wide term.

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Why the Trade Union Movement?

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The main elements in the development of trade unions of workers in every country have been more or less the same.

The setting up of large-scale industrial units, created conditions of widespread use of machinery, new lines of production, and brought about changes in working and living environment of workers, and concentration of industries in large towns.

It was this labour protest on an organized scale, through the support of some philanthropic personalities, that organized labour unions came to be formed.

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Growth and Development of the Trade Union Movement:

Social Welfare Period (1875-1918)

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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 workable conditions, the government’s attitude of complete indifference in respect of protection of labour from such evils, on the other.

The memorial demanded: i. a complete day of rest every Saturday; ii. Half an hour’s rest at noon; iii. Working hour no longer than 6.30 p.m., which should cease at sunset; iv. The payment to injured worker until they recovered together with suitable compensation, if they are permanently disabled.

According to Pandey, the important factors which have helped in the emergence and growth of the industrial labour movement are:

While the economic hardships of workers have been present as a latent force, the impetus for the growth of labour movement is provided by the major political currents, particularly movement for national independence.

The failure of workers’ initial attempts to organize led them to seek the help of philanthropists and social workers who generally came from classes higher in economic and social status.

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Early Trade Union Period (1918-1924)

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The year 1918 was an important one for the Indian trade union movement.

The industrial unrest that grew up as a result of grave economic difficulties created by war. The rising cost of living prompted the workers to demand reasonable wages for which purpose they united to take resort to collective action.

The swaraj movement intensified the movement, widened the gulf between the employers and the employees and brought about a mass awakening among the workers demanding racial equality with their British employers.

The success of the Russian Revolution of 1917 created a revolutionary wave of ideas and a new self-respect and enlightenment, and added momentum to the feeling of class-consciousness among laborers.

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.

Immediately after the war many Indian soldiers in the British army were demobilized and into the labour market.

The non-co-operative movement of Gandhiji during 1920-21 and his support to the demands of industrial labour also greatly influenced the working class movement.

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Left-Wing Unionism Period (1924-1934)

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In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution, conviction and imprisonment of many communist leaders. The rapid growth of the trade unionism was facilitated by several factors, such as:

The growth of anti-imperialist national movement;

The brutal violence and repressive measures let loose by the British government, particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate arrests and imprisonment of national leaders and Satyagrahis,

The phenomenal profits earned by the capitalists in the face of falling real wages during the post-war period

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Trade Union’s Unity Period (1935-1938)

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In mid-thirties 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 division in the Indian labour movement was proving very costly for the Indian working class. In 1933, more than 50,000 workers in Bombay city were thrown out of employment.

The unity efforts were synchronized by a popular upheaval as evidenced by the 1937 general elections.

According to Punekar, “During the decade 1930-40 Indian trade unionism was a divided house and the average industrial worker kept himself aloof from organized action.”

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Second World War Period (1939-1945)

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The Second World War, which broke out in September 1939, created new strains in the united trade union movement.

Hence, again a rift took place in 1941 and the Radicals left the AITUC with nearly 200 unions with a membership of 3, 00,000 and formed a new central federation known as the Indian Federation of Labour.

During war-time certain factors helped to enhance the status of the trade unions in the country, namely, The government as well as employers launched a number of labour welfare measures with a view to increase production of war materials and other essential goods and maintain high profits.

Recognition to trade unions was accorded by many employers. This fact gave amoral strength to the unions.

Ban was placed on the strikes and lockouts, during war-time, under the Defense of India Rules 81-A, and all disputes had to be referred to adjudication and their awards were enforced.

A Tripartite Labour Conference was convened in 1942, for the first time, to provide a common platform for discussions and mutual understanding between the labour and the employers.

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The Post-Independence Period (From 1947 to-date)

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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.

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 HMS was launched ostensibly with a view to “keep the trade union movement free from domination by government and political parties and the methods to be employed were to be peaceful, legitimate and democratic.”

In 1958, the HMS and the UTUC reached an agreement to create a joint front against the AITUC which was working inroads in their membership.

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The post-war period has been made by the trade union movement in India. The most important factors being:

The constant inflow of outside and international influences;

The pressure of trade union rivalries, often based on political or ideological differences;

Government’s Industrial Relations Policy with its provision for compulsory adjudication machinery;

The enactment of labour laws conferring special privileges on registered trade unions;

Desire of workers to unite for safeguarding their interest especially to face harder conditions for labour such as retrenchment, lay-off, etc.;

Attempts made by some employers to set up unions under their influence.

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Present Scenario of the Trade Union Movement

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The Indian trade unions have come to stay now not as ad hoc bodies or strike committees but as permanent features of the industrial society.

The unions succeeded in organizing Central Union Federations which help in the determination of principles, philosophy, ideology and purposes of the unions and give some sense of direction to the otherwise scattered and isolated large number of unions.

The unions have achieved a remarkable status where their voices are heard by the government and the employers; they are consulted on matters pertaining to improvement in conditions of work health and safety, job security, wages, productivity, all matters concerning the interests of labour.

The trade union rivalries have become sharper in free India. The splitting up of unions and formation of new unions having sympathies with political parties have permitted unions operating at different levels.

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Suggestions for Healthy growth of Unions

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One Union Per IndustryPaid Union OfficialsDevelopment of Internal LeadershipRecognition of Trade UnionsImproved Financial condition