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SW_7103

Apr 10, 2018

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    SW 7103 :ORGANIZATIONAL BEHAVIOUR AND

    EMPLOYEE DEVELOPMENT

    Unit I : Human Relations in Organizations

    Trade Unionism historical development,strengths and weaknesses, law relating totrade unions,

    Problems and status of Trade unionism inpost globalization period.

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    Structure

    What is trade Union

    - Human need for unionizing

    - Definition

    - Functions

    Historical development

    Evolution in global context

    Indian context

    Initial stage

    Trade unionism after world war I 1970s till Globalization

    Post globalization period

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    HUMAN NEED FOR UNIONIZING :

    Security

    Satisfaction of self expression

    Social needs for recognition and identity

    Furtherance of interests

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    DEFINING A TRADE UNION

    An organization

    Membership consists of employees

    Seeks to protect and promote their interests andrights

    Both in work place and society

    In particular..

    Seeks to regulate the employment relationship, Through the direct process of collective bargaining

    with management

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    TRADE UNION FUNCTIONS

    six distinct aspects of trade union function :

    1. Power collective strength as a pressure group

    2. Economic Regulation maximize the wages and

    employment3. Job regulation establish a joint rule-makingsystem

    4. Social Change seek to develop a society

    reflecting the

    ir v

    iews5. Member services range of benefits to

    individual members

    6. Self fulfillment self expression of individuals

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    Purpose..

    Regulating the relations between..

    Workmen and Employers

    Workmen and WorkmenEmployers and Employers

    for imposing restrictive conditions on theconduct of any trade or business..

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    Historical development

    Evolution at Global LeveL :

    A direct byproduct of industrialization at international level

    5 Ms of Industrialization :i. Money,

    ii. Man,

    iii. Material,

    iv. Machines,

    v. Management.

    Early 19th century at Europe,

    Marx , Lenin etc. revolutionaries spending their time in exile,

    Capital Formation Theory Karl Marx

    Healthy discussion on uniting workers & bringing change.

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    Development in Indian Context

    2 parameters

    i. Time Frame

    ii. Benchmark of characteristicsTwo impetus for changing trends in trade

    unions

    i. Political current of freedom movementii. Political affiliation of powerful lobbies

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    Initial Stage :

    1875 : first recognized effort to organize the labour

    by M.S.S. Bengali.

    no substantial improvement in the lot of Indian

    labour.

    1881 : first industries act by govt. of India.

    FOCUS on i. safety,ii. Security, & iii.welfare

    Mr. Lokhande Bombay Mill Hands Association.

    - Deenbandhu labour magazine.

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    1885 : formation of Indian National Congress byA. O. Hume.

    1905 : Bengal division. In Calcutta the WORKERSof printing presses organized themselves into atrade union.

    1907 : postal workers formed a trade union in

    Bombay.1910 : A Labour Welfare Association was

    established in Bombay.

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    Trade unionism in India after World

    War - I

    1919- formation of ILO.

    an international platform for 3 Stakeholders

    i. state, ii. workers, & iii. Employers

    1920 All India Trade Union Congress wasestablished under the provisions of Government of

    India Act, 1919.to look after the general, political and economic

    progress of organized workers as a whole.

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    1923 workmens compensation act.

    First social security act for Indian workers with

    extensive focus on occupational diseases1926 TRADE UNION ACT.

    Leadership of trade unions went over to

    communists.Trade union divided into two peaceful &

    constructive outlook vs radical approach.

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    1929- All India Trade Union Federation wasestablished by unions separating from INTUC.

    Mutual strife hurting the interests of workers.

    1931 All India Red Trade Union Congress cameinto being.

    1934- grand session of Indian trade unioncongress and AIRTUC was abolished.

    1938- merger of Trade Union Federation intoAITUC credited to Shri V.V. Giri.

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    1936- payment of wages act

    To ensure prompt payment

    Recommendations of fixed wage periodsReduction of all deduction from wages

    Applied to all factories and railways.

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    data sheet :

    In 1936-37 there were 272 unions with amembership of 2,61,047

    In 1937-38 there were 420 unions with 3,90,112members

    In 1938-39 there were 562 unions with 3,99,159members

    1926 -35 age of moderate trade unions

    1935 onwards age of militant trade unions.

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    1946 Bombay Industrial Relations act came

    out as an amenment in Bombay Industrial

    Disputes Act 1938

    Recognition and conferring various rights to

    trade unions.

    1947- Industrial Disputes Act.

    Investigation and settlement of industrial

    disputes.

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    1948 : Employees State Insurance Act

    gave rise to the idea of contributory nature ofinsurance

    Provided immunities to trade union leadersagainst certain offences.

    1948 : in Calcutta on Decemeber 24 Hind

    Majdoor Sabha was constitutedIn sympathy with socialists neither allied to

    congress nor to communists

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    30TH April 1949 : United trade union congress

    who disagreed with the agenda of Hind

    majdoor sabha March 1964 :Indian Federation of Independent

    Trade Unions ( IFITU), was established at a

    meeting held at Patna.

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    THE FOUR CENTRAL ORGANIZATIONS TILL 1960s

    SERIA

    L NO.

    NAME YEAR OF

    ESTABLISHMENT

    OBJECTIVE

    1 INDIAN NATIONAL

    TRADE UNIONCONGRESS

    May 1947 An all round and peaceful

    development of its individualmembers.

    2 HIND MAZDOOR SABHA 1948 A democratic socialist society.

    3 ALL INDIA TRADE UNION

    CONGRESS

    1920 Dominated by communists aims

    for complete overthrow ofpower

    4 UNITED TRADE UNION

    CONGRESS

    December 1948 Building a central platform for

    labour, free from the

    domination of political parties

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    1967 to 1990

    Focus on 4 mechanisms of conflict resolution :

    i. Negotiation

    ii. Conciliation

    iii. Arbitrationiv. Adjudication

    Focus on three dynamic forces for power buildingand social change :

    i. workersii. Students

    iii. women

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    Major constitutional amendments

    during emergency

    ESMA : essential security maintenance act

    DIR : Defense of India Rules ( for internal

    security)MISA : maintenance of internal security act

    can put behind the bars for 6 months without

    legal proceedings.

    POTA : prevention of terrorism act

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    FCRA, 1976

    Foreign contribution regulation act :

    No organization can receive money/aid from

    other countries without approval of the ministryof home affairs

    Still applicable for NGOs.

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    Period of instability

    By 1980s the nation observed only 4 prime

    ministers but from 1980 to 1990 it had almost

    20 occasions when the Prime ministers were

    changed

    Political instability ----------> unstructured trade

    union movements

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    Structure of Trade Unionism

    Structural characteristic is dealt with at two broadlevels : local and national .

    Two illustrations : enterpriselevelunion and

    industry-levelunion.

    Enterpriselevel union: eg Petroleum industry witha membership spread over different parts ofIndia.

    Industry-level union : eg. A representative union insilk, textile processing and hosiery industrieslocated in a city.

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    Trade Unionism at the Local Level

    Features :

    1. Essentially need based formation

    2. Trend of political unionism ( as not sufficiently self reliant so forcedto seek external assistance and services.)

    3. Unevenness in the size- distribution and mushroomed growth ofsmall unions

    4. mostly unable to develop an effective managing system.. Decisionsmostly on ad hoc basis since survival is key requirement )

    5. Leadership crisis ( aspiring leaders prefer to move out for betterchances )

    6. Weak financial status

    7. Excessive reliance on laws and role of leaders limited to case pleaders only.

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    Trade Union Scene at the National

    Level

    Two of the largest in India :

    a. All India Trade Union Congress ( AITUC ),

    b. Indian National Trade Union Congress (

    INTUC) .

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    Convergence in policy of AITUC and

    INTUC

    i. Called for a revision of existing wage structure

    ii. Relentlessly pleaded for higher rate of bonusthan the statutory minimum

    iii. Fought for ensuring several social securitymeasures like provident fund, gratuity,insurancebenefit, maternity benefit, lay offcompensation, etc.

    iv. Opposed rationalization or automation, and

    v. Demanded workers participation in management.

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    Era of Globalization

    Globalization presupposes the liberalization oftrade policies and privatization of the publicsector undertakings (PSUs).

    Government of India adopted str

    uctura

    ladj

    ustmentpolicy.. Leading to

    a) Devaluation of currency

    b) Privatization of PSUs,

    c) Globalization of financial marketd) Decontrol of foreign trade

    e) Delicensing of industries, etc

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    Globalization in India

    1992 : implementation of the new economicpolicy of LPG..

    LIBERALIZATION : removing the restrictions meant

    to limit the economy within the boundaries of anation state.

    PRIVATIZATION :inviting independent entrepreneurs toshare the ownershipin the production and distributionof economy.

    GLOBALIZATION : removing the barriers ofboundaries.

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    Post Globalization period

    Entry of TNCs :

    local disputes to be solved internationally Widening gap between rich and the poor

    Changing profile of work force: urbanite,

    educated,

    technologically updated,

    right based attitude

    Feminization of work force

    Shift from socialist to competitive economy

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    Change in management approachesFactory manager ---> personnel manager --->Human

    resource manager

    HRD APPROACH : investmentin manpower foroptimum growth

    & development.

    Focuson identification of needswhypeople join trade unions Using the skillsand knowledge base fordissolving the trade

    unions

    Statusofstakeholderstoworkers

    Beginning of non-economicwelfare services

    Making workplace more workable

    Standardization ofmethods

    Enforced cooperation and productivity norms

    Focuson individualachievements,promotion and rewards

    SHIFTING THE BALANCE OF POWER IN FAVOUR OF

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    Strengths of Trade Union movement in

    Globalized scenario

    a. Stronger support of intelligentsia in terms of recognition oftheir efforts

    b. Larger scope for liaisoning with one another at global level

    c. Greater recognition and emphasis on implementation ofhuman rights policies.

    d. Growing importance of HRD as a distinct unit ofspecialization at large scale industries and enterprises

    e. Enhancing awareness and aggravating discontent amongemployees at global level,

    f. Focus on extra- monetary services by HRDs.

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    Challenges to Trade Union movements

    in Globalized scenario1) Weakening of leadership at two primary levels

    role & scope.

    2) Diminishing unity among members .

    3) Increasing focus on bargaining with managementrather than system of inequality.

    4) Strong bifurcation between white-collars andblue-collars trade unions.

    5) States support to entrepreneurs.6) Strong hold of industrialists on policy making and

    implementation

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    Relevance of trade unions in current scenario

    Necessary and relevant as long as unfairness andinjustice remain in employment relations.

    to open the new horizons of organizing the

    unorganized workersTo pay due attention to the grievances of gradedvulnerabilities of a variety of work force

    To ensure the attentiveness and enhance humaneApproaches in HRD.

    To keep alive the dreams of a just and egalitariansociety.

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    References1. Fisher, W.F. & Ponniah, Thomas. (2004).Another World Is Possible, popular

    alternatives to Globalization at the World Social Forum. Nova scotia :

    Fernwood Publishing Ltd.

    2. Goldin ,I. & Reinert,K. (2006). Globalization For Development, Trade,

    Finance, Aid, Migration,And Policy.New Delhi: Rawat Publications.

    3. Sharma, R.K. ( 1997). Industrial Labour In India. Delhi : Atlantic Publishersand Distributors.

    4. Ramanujam,G. (1986). Indian Labour Movement. New Delhi : Sterling

    Publishers Pvt. Ltd.

    5. Giri, V.V. (1972). Labour Problems In Indian Industry. Bombay : Asia

    Publishing House.6. Salamon,M. ( 1998). Industrial relations, theory and practice; third edition.

    London : Pearson Education.

    7. Ghosh,B. (January 2008). Economic Reforms AndTrade Unionism In India

    A Macro View. The Indian Journal Of Industrial Relations, Vol. 43, No.3.

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