Industrial Relations

Industrial relation means the relationship between employers and employees in course of employment in industrial organisations. However, the concept of Industrial Relations has a broader meaning. In a broad sense, the term Industrial Relations includes the relationship between the various unions, between the state and the unions as well as those between the various employers and the government. Relations of all those associated in an industry may be called Industrial Relations. According to International Labour Organisation, Industrial relations comprise relationships between the state on one hand and the employers and employees organisation on the other, and the relationship among the occupational organisations themselves.

Definition: According to J.T. Dunlop, Industrial relations are the complex interrelations among managers, workers and agencies of the government

Features of Industrial Relations:

Industrial relations are outcomes of employment relationships in an industrial enterprise. These relations cannot exist without the two parties namely employers and employees. Industrial relations system creates rules and regulations to maintain harmonious relations. The government intervenes to shape the industrial relations through laws, rules, agreements, terms, charters etc. Several parties are involved in the Industrial relations system. The main parties are employers and their associations, employees and their unions and the government. These three parties interact within economic and social environment to shape the Industrial relations structure. Industrial relations are a dynamic and developing concept, not a static one. They undergo changes with changing structure and scenario of the industry as and when change occurs. Industrial relations include both individual relations and collective relationships.

Objectives of Industrial Relations:

To maintain industrial democracy based on participation of labour in the management and gains of industry. To raise productivity by reducing tendency of high labour turnover and absenteeism.

To ensure workers participation in management of the company by giving them a fair say in decision-making and framing policies. To establish a proper channel of communication. To increase the morale and discipline of the employees. To safeguard the interests of the labour as well as management by securing the highest level of mutual understanding and goodwill between all sections in an industry. To avoid all forms of industrial conflicts so as to ensure industrial peace by providing better living and working standards for the workers. To bring about government control over such industrial units which are running at a loss for protecting the livelihood of the employees.

Importance of Industrial Relations:

Uninterrupted Production: The most important benefit of industrial benefits is that it ensures continuity of production. This means continuous employment for all involved right from managers to workers. There is uninterrupted flow of income for all. Smooth running of industries is important for manufacturers, if their products are perishable goods and to consumers if the goods are for mass consumption (essential commodities, food grains etc.). Good industrial relations bring industrial peace which in turn tends to increase production. Reduction in Industrial disputes: Good Industrial relations reduce Industrial disputes. Strikes, grievances and lockouts are some of the reflections of Industrial unrest. Industrial peace helps in promoting co-operation and increasing production. Thus good Industrial relations help in establishing Industrial democracy, discipline and a conducive workplace environment. High morale: Good Industrial relations improve the morale of the employees and motivate the worker workers to work more and better. Reduced wastage: Good Industrial relations are maintained on the basis of co-operation and recognition of each other. It helps to reduce wastage of material, manpower and costs. Contributes to economic growth and development.

Causes of poor Industrial Relations:

Economic causes: Often poor wages and poor working conditions are the main causes for unhealthy relations between management and labour. Unauthorised deductions from wages, lack of fringe

benefits, absence of promotion opportunities, faulty incentive schemes are other economic causes. Other causes for Industrial conflicts are inadequate infrastructure, worn-out plant and machinery, poor layout, unsatisfactory maintenance etc. Organisational causes: Faulty communications system, unfair practices, non-recognition of trade unions and labour laws are also some other causes of poor relations in industry. Social causes: Uninteresting nature of work is the main social cause of poor Industrial relations. Dissatisfaction with job and personal life culminates into Industrial conflicts. Psychological causes: Lack of job security, non-recognition of merit and performance, poor interpersonal relations are the psychological reasons for unsatisfactory employer-employee relations. Political causes: Multiple unions, inter-union rivalry weaken the trade unions. Defective trade unions system prevailing in the country has been one of the most responsible causes for Industrial disputes in the country. Suggestions to improve Industrial Relations:

Sound personnel policies: Policies and procedures concerning the compensation, transfer and promotion, etc. of employees should be fair and transparent. All policies and rules relating to Industrial relations should be fair and transparent to everybody in the enterprise and to the union leaders. Participative management: Employees should associate workers and unions in the formulation and implementation of HR policies and practices. Responsible unions: A strong trade union is an asset to the employer. Trade unions should adopt a responsible rather than political approach to industrial relations. Employee welfare: Employers should recognise the need for the welfare of workers. They must ensure reasonable wages, satisfactory working conditions, and other necessary facilities for labour. Management should have a genuine concern for the welfare and betterment of the working class. Grievance procedure: A well-established and properly administered system committed to the timely and satisfactory redressal of employees grievances can be very helpful in improving Industrial relations. A suggestion scheme will help to satisfy the creative urge of the workers. Constructive attitude: Both management and trade unions should adopt positive attitude towards each other. Management must recognise unions as the spokesmen of the workers grievances and as custodians of their interests. The employer should accept workers as equal partners in a joint endeavour for good Industrial relations. Creating a proper communication channel to avoid grievances and misunderstandings among employees

Education and training imparted to the employees

Collective Bargaining

Good relations between the employer and employees are essential for the success of industry. In order to maintain good relations, it is necessary that industrial disputes are settled quickly and amicably. One of the efficient methods of resolving industrial disputes and deciding the employment conditions is Collective Bargaining. Industrial disputes essentially refer to differences or conflicts between employers and employees. Collective Bargaining is a process in which the management and employee representatives meet and negotiate the terms and conditions of employment for mutual benefit. Collective bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment. It is termed Collective because both the employers negotiators and the employees act as a group rather than individuals. It is known as Bargaining because the method of reaching an agreement involves proposals and counter-proposals, offers and counter offers. There should be no outsiders involved in the process of collective bargaining. According to Walton and McKersie the process of Collective Bargaining consists of four types of activities: 1) Distributive Bargaining: It involves haggling over the distribution of surplus. Various activities

involved in this activity are wages, salaries, bonus and other financial issues. In this activity, both the parties face a win/lose situation. 2) Integrative Bargaining: Also known as Interest-Based Bargaining, issues which are not

damaging to either party are discussed. It is a negotiation strategy in which both the parties collaborate to find a win-win solution to their problems. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Issues brought up may be better job evaluation procedures, better performance appraisal methods or training programmes etc. 3) Attitudinal structuring: Attitudinal structuring refers to efforts by negotiators to shape their

opponents' perceptions about the nature of the issues to be negotiated. By cultivating an atmosphere of friendliness, mutual respect, trust, and cooperation, negotiators can encourage their opponents to view issues largely in integrative terms and participate in joint problem solving. This activity involves shaping and reshaping some perceptions like trust/distrust, friendliness/hostility, co-operative/non-cooperative between the labour and management. When there is a backlog of bitterness between both the parties, attitudinal structuring is required to maintain smooth and harmonious industrial relations.

4)

Intra-Organisational Bargaining: It is a type of manoeuvring to achieve consensus among the

workers and management. Even within the union there may be differences between different groups as may be the case with the management. Intra-organisational consensus is required for the smooth acceptance of the outcome of Collective Bargaining.

Objectives of Collective Bargaining: To maintain cordial relations between the employer and employees. To protect the interests of the workers through collective action and by preventing unilateral actions from being taken by the employer. To ensure the participation of trade unions in industry. To avoid the need for government intervention as collective bargaining is a voluntary collective process. To promote Industrial democracy. Characteristics of Collective Bargaining: It is a group or collective action as opposed to individual action. It is initiated through the representatives of the employees. It is a flexible and dynamic process where-in no party adopts a rigid attitude. It is a continuous process, which provides a mechanism for continuous negotiations and discussions between management and the trade unions. It is a voluntary process without any third-party intervention. Both workers and management voluntarily participate in the negotiations, discuss and arrive at a solution. That is why it is known as a bipartite process where workers representatives and management get an opportunity for clear, face-to-face communication. It ensures industrial democracy at the workplace; it is a self-run government in action. It is a two-way process. It is a mutual give and take rather than a take home all method of arriving at a solution to a dispute.

Process of Collective Bargaining

Preparation for Negotiation

Identifying issues for Bargaining

Negotiation

Negotiated Agreement

Ratification of Agreement Implementation of Agreement

1.

Preparation for Negotiation: Preparation for negotiation in Collective Bargaining is as

important as the negotiation process itself. Upto 83% of the outcomes are influenced by prenegotiation process. Such preparation is required for both management as well as the union representatives. From the managements point of view, pre-negotiation preparation is required as: Management should decide when and how to open the negotiations/dialogue. Management must choose the representatives to negotiate at the negotiation table. Draft for likely decisions should be prepared in advance so that the final agreement draft can be prepared as soon as the negotiation process is over. From the employees side also, preparation is required for the following reasons: The union should collect the information related to the financial position of the company and their ability to pay the employees. The union must also be aware of the various practices followed by other companies in the same region or industry. The union must assess the attitudes and expectations of the employees over concerned issues so that the outcome of negotiations does not face any resistance from them.

2.

Identifying issues for Bargaining: The second step in bargaining process is the determination

of issues which will be taken up for negotiations. The different types of issues are: Wage-related issues: Include wage or salary revision, allowance for meeting increased cost of living like Dearness Allowance (D.A), financial perks, incentives etc. Supplementary economic benefits: These include pension plans, gratuity plans, accident compensation, health insurance plans, paid holidays etc. Administrative issues: Include seniority, grievance procedures, employee health and safety measures, job security and job changes. The wage and benefits issues are the ones which receive the greatest amount of attention on the bargaining table. 3. Negotiation: When the first two steps are completed, both parties engage in actual negotiation

process at a time and place fixed for the purpose. There a re two types of negotiations:

Boulwarism: In this method, the management themselves takes the initiative to find out through comprehensive research and surveys the needs of the employees. Based on the analysis of the findings, the company designs its own package based on the issues to be bargained. Thereafter, a change is incorporated only when new facts are presented by the employees or their unions. Continuous Bargaining: Involves parties to explore particular bargaining problems in joint meetings over a long period of time, some throughout the life of each agreement. The basic logic behind this method is that all persistent issues can be addressed through continuous negotiation over a period of time. The success of negotiations depends on the skills and abilities of the negotiators.

4.

Initial negotiated agreement: When two parties arrive at a mutually acceptable agreement

either in the initial stage or through overcoming negotiation breakdown, the agreement is recorded with a provision that the agreement will be formalized after the ratification by the respective organizations. 5. Ratification of agreement: Ratification of negotiated agreement is required because the

representatives of both the parties may not have ultimate authority to decide various issues referred to for collective bargaining. The ratification of agreement may be done by the appropriate manager authorized for the purpose in the case of management, or trade executives in the case of the employees. Ratification is also required by the Industrial Disputes Act. It is important that the agreement must be clear and precise. Any ambiguity leads to future complications or other such problems. 6. Implementation of agreement: Signing the agreement is not the end of collective bargaining,

rather it is the beginning of the process when the agreement is finalized, it becomes operational

from the date indicated in the agreement. The agreement must be implemented according to the letter and spirit of the provisions made by the agreement agreed to by both parties. The HR manager plays a crucial role in the day-to-day administration implementation of the agreement.

Industrial Disputes Industrial disputes are organised protests against existing terms of employment or conditions of work. According to the Industrial Dispute Act, 1947, an Industrial dispute means Any dispute or difference between employer and employer or between employer and workmen or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person In practice, Industrial dispute mainly refers to the strife between employers and their employees. An Industrial dispute is not a personal dispute of any one person. It generally affects a large number of workers community having common interests.

CAUSES CONSEQUENCES OF INDUSTRIAL DISPUTES Industrial Disputes Act provides for a machinery for just and equitable settlement of Industrial disputes by adjudication, negotiation and conciliation. It promotes measures for securing and preserving amity and good relations between employer and workmen. It helps prevention of illegal strikes and lockouts, and provides provision for relief to workmen in the case of layoff and retrenchment. It promotes a base or collective bargaining also. Causes of Industrial Disputes The problem of industrial unrest is inherent in the industrial system. The main features of industrial work anywhere are that (a) it involves division of labour; (b) it is a group activity; (c) it is carried under control. Broadly speaking, the causes of industrial disputes can be classified as: 1. 2. 3. Economic causes Management causes, and Political causes

A brief description of each, is given below:

1.

Economic causes

Economic causes include questions pertaining to wages, bonus and allowances, retrenchment of workmen by the employer retionalisation and automation, faulty retrenchment system, leave and so on. Low wages, irrespective of rising prices, demand for a rise in D.A., intolerable working and living conditions, issues pertaining to hours of work, etc. are some other economic causes that provoked a number of strikes in India. The worker factors responsible for industrial unrest have been: (1) Inter union rivalries, (2) Economic and political environment that exercise adverse effects on workers attitudes, and (3) Indiscipline amongst workers. 2. Managerial causes Some of the causes of discontent are inherent in the industrial system, itself such as: (1) Workers do not get any opportunity for self-expression; or (2) Their social needs are not fulfilled; that is. the position of workers within in informal qroups formed in jndustrial undertakings and problems of conflict within the groups may not be taken into account. (3)Lack of communication on one hand, between the workers and management may turn petty quarrels into industrial unrest and on the other, the problem of discipline in industrial units may assume serious dimensions.

The other managerial factors responsible for industrial unrest have been as 1. Mental inertia on the part of management and labour. 2. Management's general attitude of hatred towards their workers, 3..Lack of competence on the supervisor and other managers in human relations. 4..Management's desire to pay comparatively lesser amount of bonus or dearness allowance against the desire of workmen. 5. .Efforts to introduce modernisation without prior or appropriate environment. 6. Excessive work load and inadequate welfare facilities. 7. Defective policy of lay-off. 8. Denial of the workers right to recognize union. 9. Unfair practices like victimization or termination of services without assigning any reasons. 10.Lack of definite wage policy and stabilization of prices. 12. Lack of a proper policy of union recognition. 13.Denial of worker's right to organise, etc.

Political causes

Industrial disputes are pertly political also. Some important political strikes I organized by industrial workers in India. Prior to independence, as early , there was a mass strike in Mumbai against the sentence of imprisonment strikes occurred on account of actions taken against, for participating in demonstrations, trial of political leaders, etc. After the independence also, some stirkes have occurred owing to agitation's of political parties on questions like re-organisation ation of States, National Language, etc. Percentage distribution of industrial disputes by causes as published by the Ministry of Labour, Impact/Effect/Consequences of Industrial Disputes The consequences of Industrial disputes are many. A brief description is given (1) Disturb the economic, social and political life of a country: When labour and equipment in the whole or any part of an industry are rendered idle by strike or lockout, national dividend suffers in a way that injures economic welfare. Loss of Output: (2)Loss of Output : Loss of output in an industry which is directly affected by a dispute, but other industries are also affected adversely, as stoppage of work in one industry checks activity in other industries too. (3) Decline in the demand for goods and services: Strikes reduces the demand for the goods that other industries make, if the industry in which stoppage has occured is one that furnishes raw materials semi-finished goods or service largely used in the products of other industries. (4) Lasting loss to the workers: There is a lasting injury to the workers in the form of work being interrupted due to the strikes which involves a loss of time which cannot be replaced. The wages are lost and the workers can least afford to lose them specially when the average earning of a worker is not very high. (5) Increase in indebtedness : This increases the indebtedness among the workers and not only the old debts become heavier but fresh debts may also be incurred. (6) Loss of health of family members : The workers and their family members also suffer from loss of health due to mental warrious resulting from loss of wages. (7) Problem to consumers : Strikes and lockouts create problem to consumers also. Articles of their requirements are not available in time, and the prices of such articles reach high due to black marketing activities. .. (8) Loss to the management/employer : When workers stop working, the plant and machinery remain idle. The fixed express are to borne by the employer even when the production stops. This way the employer suffers from great loss. (9) Bad effect on labour relations: Strikes and lockouts bring bad effects on industrial relations. With the result the workmen and the employer always be in mental tension.

(10) Obstruction to economic growth: Strikes creates many kinds of violence which obstruct the growth of economy. Prevention of Industrial Disputes:

The consequences of an Industrial dispute will be harmful to the owners of industries, workers, economy and the nation as a whole, which results in loss of productivity, profits, market share and even closure of the plant. Hence, Industrial disputes need to be averted by all means. Prevention of Industrial disputes is a pro-active approach in which an organisation undertakes various actions through which the occurrence of Industrial disputes is prevented. Like the old saying goes, prevention is better then cure.

1.

Model Standing Orders: Standing orders define and regulate terms and conditions of

employment and bring about uniformity in them. They also specify the duties and responsibilities of both employers and employees thereby regulating standards of their behaviour. Therefore, standing orders can be a good basis for maintaining harmonious relations between employees and employers. Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required to frame standing orders in consultation with the workers. These orders must be certified and displayed properly by the employer for the information of the workers.

2.

Code of Industrial discipline: The code of Industrial discipline defines duties and

responsibilities of employers and workers. The objectives of the code are: To secure settlement of disputes by negotiation, conciliation and voluntary arbitration. To eliminate all forms of coercion, intimidation and violence. To maintain discipline in the industry. To avoid work stoppage. To promote constructive co-operation between the parties concerned at all levels.

3.

Works Committee: The Industrial Dispute Act, 1947 has provided for the establishment of

works committees. In case of any industrial establishment in which 100 or more workers are employed, a works committee consisting of employees and workers is to be constituted; it shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations among the employees and workers.

4.

Joint Management Councils:

5.

Suggestion Schemes:

6.

Joint Councils:

7.

Collective Bargaining: Collective Bargaining is a process in which the representatives of the

employer and of the employees meet and attempt to negotiate a contract governing the employeremployee-union relationships. Collective Bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment.

8.

Labour welfare officer: The factories Act, 1948 provides for the appointment of a labour welfare

officer in every factory employing 500 or more workers. The officer looks after all facilities in the factory provided for the health, safety and welfare of workers. He maintains liaison with both the employer and the workers, thereby serving as a communication link and contributing towards healthy industrial relations through proper administration of standing orders, grievance procedure etc.

9.

Tripartite bodies: Several tripartite bodies have been constituted at central, national and state

levels. The India labour conference, standing labour committees, Wage Boards and Industries Committees operate at the central level. At the state level, State Labour Advisory Boards have been set up. All these bodies play an important role in reaching agreements on various labour-related issues. The recommendations given by these bodies are however advisory in nature and not statutory.

Machinery for settlement of Industrial Disputes:

1.

Conciliation: Conciliation refers to the process by which representatives of employees and

employers are brought together before a third party with a view to discuss, reconcile their differences and arrive at an agreement through mutual consent. The third party acts as a facilitator in this process. Conciliation is a type of state intervention in settling the Industrial Disputes. The Industrial Disputes Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands.

Conciliation Officer: The appropriate government may, by notification in the official gazette, appoint such number of persons as it thinks fit to be the conciliation officer. The duties of a conciliation officer are: a) To hold conciliation proceedings with a view to arrive at amicable settlement between the

parties concerned. b) To investigate the dispute in order to bring about the settlement between the parties

concerned. c) d) To send a report and memorandum of settlement to the appropriate government. To send a report to the government stating forth the steps taken by him in case no settlement

has been reached at. The conciliation officer however has no power to force a settlement. He can only persuade and assist the parties to reach an agreement. The Industrial Disputes Act prohibits strikes and lockouts during that time when the conciliation proceedings are in progress.

2.

Arbitration: A process in which a neutral third party listens to the disputing parties, gathers

information about the dispute, and then takes a decision which is binding on both the parties. The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens to both the parties and then gives his judgement.

Advantages of Arbitration: It is established by the parties themselves and therefore both parties have good faith in the arbitration process. The process in informal and flexible in nature. It is based on mutual consent of the parties and therefore helps in building healthy Industrial Relations. Disadvantages: Delay often occurs in settlement of disputes. Arbitration is an expensive procedure and the expenses are to be shared by the labour and the management. Judgement can become arbitrary when the arbitrator is incompetent or biased. There are two types of arbitration: a) Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both the parties

through mutual consent and the arbitrator acts only when the dispute is referred to him. b) Compulsory Arbitration: Implies that the parties are required to refer the dispute to the

arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement

voluntarily, or when there is some other strong reason, the appropriate government can force the parties to refer the dispute to an arbitrator.

3.

Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial Dispute.

Adjudication means intervention of a legal authority appointed by the government to make a settlement which is binding on both the parties. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery: a) b) c) a) Labour court Industrial Tribunal National Tribunal Labour Court: The appropriate government may, by notification in the official gazette constitute

one or more labour courts for adjudication of Industrial disputes relating to any matters specified in the second schedule of Industrial Disputes Act. They are: Dismissal or discharge or grant of relief to workmen wrongfully dismissed. Illegality or otherwise of a strike or lockout. Withdrawal of any customary concession or privileges.

Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold its proceedings expeditiously and shall, within the period specified in the order referring such a dispute, submit its report to the appropriate government. b) Industrial Tribunal: The appropriate government may, by notification in the official gazette,

constitute one or more Industrial Tribunals for the adjudication of Industrial disputes relating to the following matters: Wages Compensatory and other allowances Hours of work and rest intervals Leave with wages and holidays Bonus, profit-sharing, PF etc. Rules of discipline Retrenchment of workmen Working shifts other than in accordance with standing orders It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its report to the appropriate government within the specified time.

c)

National Tribunal: The central government may, by notification in the official gazette,

constitute one or more National Tribunals for the adjudication of Industrial Disputes in Matters of National importance Matters which are of a nature such that industries in more than one state are likely to be interested in, or are affected by the outcome of the dispute. It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its report to the central government within the stipulated time.

Trade union

The process of industrialization on one hand contributed to peace and prosperity of nation but on the other hand it has also created many social and personal problems, previously these problems were sorted by individuals in there private capacity but now with the advancement in the field of industrialization. These problems were tackled with the organized effort.

Individual is powerless and in unable to barging regarding his interest. While strength and power lies in unity, association and collective action which leads to formation of trade union, through trade unions employees can defend their rights and achieve improvements.

Trade unions have been developed to protect employees against exploitation of employers and provide equitable shares to employees in the profit occurring out of production, to raise their status in industry and society. The basis of trade union movement has always been the promotion and protection of employees interest.

According to section 2(b) of trade union act of 1926, A trade union is any combination of persons, whether temporary of permanent, primarily for the purpose of regulating the relations between workers and employers or between workers and workers and for imposing restrictive conditions on the conduct of any trade or business.

The term trade union is defined in different ways in different countries. In Indiaterm trade union according to the trade union act of the country refers to both employees organization as well as employers association.

In Britain, Trade union refers to the association of professional people such as artists federation, musician union etc.

In USSR, before the breakup as per article 151 of the Soviet Labour Court, a trade union was conceived as an association of producers in which citizens, institution and business are organized.

Trade union can be defined as a continuous and voluntary association of the salary or wage earners and engaged in industry or trade form for safeguarding the interest of its members, improving the living conditions of the workers, raising their social status and promoting their vocational interest.

Importance of trade union

It improves bargaining power of employees It prevents employees from exploitation of employers. It empowers employees It enhances sense of belongingness among employees It provides platform for self expression to employees.

Functions of trade Union

There are various functions in order to attain objectives of trade unions. These are functions relating to: Industrial organizations Trade union organizations. Trade Union members Society

This classification is based on principles of interdependence between the industry, organization of union, members and society, each reinforcing and being reinforced by the other.

Functions relating to Industrial Organization

To attain higher production quantitatively and qualitatively To maintain discipline inside industry Effective redressal of grievances and settlement of dissatisfaction and complaints. To develop positive attitude of management towards trade unions and improve their status in industry To prevent unfair labour practices in industry. To share profits with employees. To enforce employer regarding implementation of statutory provisions beneficial to employees. To encourage cordial relations between employee and management by settlement of disputes through collective bargaining, joint agreements and voluntary arbitration and by avoiding third party intervention.

Functions relating to Trade Union organizations

Training of members regarding effective leadership. To facilitate communication between trade unions and its members To prevent inter union rivalry and maintaining integrity of trade union movement. To create plans and policies in consonance with those of industrial organization and society at large. To maintain industrial democracy. To eradicate various social evils from industry for example castism, linguisim and regionalism from workplace To prevent unfair labour practices To prevent trade union from exploitation of personal and political interest To prepare and maintain necessary records regarding meetings and other activities of trade unions Scientific management of trade unions

Functions relating to Trade Union members

Settlement of disputes through negotiations, joint consultation and voluntary arbitration

To raise social status of trade union member within industrial organization and society as a whole. To safeguard employees interest against all sort of exploitation by employers, by trade union members and by political parties. To create awareness among workers regarding their rights and duties. To ensure improved standard of living by providing various social services like health measures, housing facilities, education facilities, recreation facilities, co-operative societies etc. To provide effective redressal of grievances and complaints of workers dissatisfaction. To encourage workers participation in management. To ensure safe and hygienic working conditions

Functions relating to Society

To develop positive public opinion regarding trade unions which will lead to their improved social status. To encourage public regarding government plans and policies and to mobilize peoples participation for their effective implementation in society at large To encourage prevention of social evils like nepotism, communalism, castiesm, regionalism, linguism, black marketing, sexual harassment etc. Participation in programs of national development like family planning, aforestation, financial assistance during natural disaster etc.

Minimum wages Act

Wages means all remuneration capable of being expressed in terms of money, which Would, if the terms of contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such. Employment it includes house rent allowance but does not include the value of any house accommodation, supply or light, water, medical attendance or other amenity or service excluded by general or special order of appropriate Government; contribution paid by the employer to Pension/ Provident Fund or under scheme of social insurance; traveling allowance or value of traveling concession; sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or any gratuity payable on discharge. As of now there is no uniform and comprehensive wage policy for all sectors of the economy in India. Wages in the organized sector are determined through negotiations and settlements between

employer and employees. In unorganized sector, where labor is vulnerable to exploitation, due to illiteracy and having no effective bargaining power, minimum rates of wages are fixed/ revised both by Central and State Governments in the scheduled employments falling under their respective jurisdictions under the revisions of the Minimum Wages Act,1948. The concept of Minimum Wages was first Evolved by ILO in 1928 with reference to Remuneration of workers in those industries Where the, level of wages was substantially Low and the labor was vulnerable to Exploitation, being not well organized and Having less effective bargaining power. The Need for a legislation for fixation of minimum Wages in India received boost after World War II when a draft bill was considered by The Indian Labor Conference in 1945. On the recommendation of the 8th Standing Labor Committee, the Minimum Wages Bill was introduced in the Central Legislative assembly on 11.4.1946 to provide for fixation of minimum wages in certain Employments. The Minimum Wages Bill was passed by The Indian Dominion Legislature and came into Force on 15th March, 1948. Under the Act both State and Central Government are Appropriate Governments for fixation/revision of minimum Rates of wages for employments covered by The Schedule to the Act. The Central Government is responsible for fixation and revision of minimum wages for the unskilled workers in scheduled employments of Central Sphere Scheduled Employments of Central Sphere are given in The minimum rates of wages also include Special Allowance (Variable Dearness Allowance) linked to Consumer Price Index Number which are revised twice a year effective from April and October. The rates of minimum wages including VDA in different scheduled employments in Central Sphere are at The rates of wages once fixed are revised at an interval not exceeding of five years. The minimum wages were last revised in 1994, under Central sphere. The minimum wages in various mines as well as constructions, laying of underground cables etc. in the central sphere have been revised vide gazette notifications S.O. no. 9(E) dated 3.1.2002 and S.O. no. 113(E) dated 28.1.2002respectively. National Minimum Wage: The National Minimum Wage has been considered at various fora in the past. However, State/UT Governments are not unanimous on the need of a National Minimum Wage as socioeconomic conditions vary from state to state, region to region and also from industry to industry due to different geographical, topographical and agro-climatic factors. Pending easibility of a National Minimum Wage, the desirability of a regional minimum wage has been felt to bring in regional uniformity. The Six Regional Minimum Wages Advisory Committees set up in 1987 to reduce regional disparities among States have been broadened and renamed as Regional Labour Ministers Conferences.

The 28th Indian Labour Conference in 1985 recommended a national basic subsistence level wage below which no wages may be fixed regardless of the nature of work, nature of employment and other considerations. In the absence of uniformity in minimum wages the Central Government adopted the concept of national floor level minimum wage and fixed it at Rs,35/- per day in 1996, based on the recommendation of the National Commission on Labour in 1991 and subsequent increase at the price level. The Central Government raised the national floor level minimum wage to Rs.40/- per day in 1998 and further to Rs.45/- w.e.f. 30.11.1999, keeping in view the rise in consumer price index. All the State/UT Governments were also directed to ensure fixation of minimum rates of wages in all the scheduled employments not below Rs.45/- per day. Enforcement of Minimum Wages: Minimum Wages under Central sphere are enforced through Central Industrial Relations Machinery (CIRM). Presents cases of enforcement by CIRM. Under State sphere the enforcement is ensured by the State machinery Central Board for Workers Education gives wide publicity of provisions of Minimum Wages Act, besides other awareness programmes through mass media Industry -wise special studies on implementation of minimum wages are conducted by Labour Bureau. 5.19 Consumer Price Index determines changes in commodity cost and changes in cost of living of the workers. The index is used in determining VDA Separate baskets of goods and services are used for compilation of consumer Price Index for Industrial, gricultural and Rural Workers. The Consumer Price Index for Industrial workers (base 1982) and Agricultural & Rural Labourers (Base 1986-87) are compiled on the basis of price data collected from specified markets The yearly variation in Consumer Price Index for Industrial Workers and Agricultural Labourers are presented from 1984-85 onwards. Objective: The object of the Act is to prevent exploitation of labour; prevent employment of sweated labour in the interests of general public and so in prescribing minimum wage rates, the capacity of the employer need not be taken into account. Applicability: The Act is applicable in respect of the employments specified in the schedule of the Act. Presently, the Punjab Government has notified 67 employments in the said Schedule. Responsibility of the Employer: An employer of the scheduled employment is required to pay the minimum wages to its employees as notified by the government from time to time. He is also required to maintain registers regarding registers of wages, fines, deductions for damage or loss and overtime. He is also required to send annual return to the Inspector for the year ending on 31st December by 1st of February next year.

Complaints: A worker can made a complaint with regard to payment of less than the minimum wages or unauthorized deductions made to the Labour Inspector Grade-I or II of the area. Claims: A claim application in duplicate can be made in Form VI by an employee; in Form VI-A by a group of employees; in Form VII by an Inspector or person permitted by the Authority u/s 20 for claiming the difference of minimum wage and the wages actually paid, or for claim wages for weekly offs or rest days or for wages at the over-time rate. The application should be presented to the Competent Authority appointed under the Act i.e. the Assistant Labour Commissioner or the Labour-cumConciliation Officer of the concerned area. Bar to Suit: Civil Courts are barred to entertain the suit for recovery of wages once a claim has been lodged with or could have been recovered by application to the Competent Authority under the Act. Contracting out: Any contract or agreement whereby a worker relinquishes or reduce his right to receive minimum wages is null and void to that extent. Penalties: For non compliance of the provisions of the Act, an employer may be punished for imprisonment up to six months or fine up to Rs. 500/- or both. The Industrial Employment ( Standing Orders) Act, 1946 It applies to every Industrial establishment wherein 100 or more workmen are employed or were employed on any day of the preceding 12 months The Act does not apply to : Any industry to which The Bombay Industrial Relations Act; 1946 apply. Any industry to which The Madhya Pradesh Industrial Employment ( Standing Orders) Act 1961 apply Object of the Act: Object of the Act is to require the employers in industrial establishments to define the conditions of employment under them and make the conditions known to workmen employed by them before they accept the employment . To maintain uniformity in terms and conditions of employment in respect of workmen belonging to the same category . The rules made in the regard to these conditions is called Standing Orders MATTERS TO BE PROVIDED IN STANDING ORDERS UNDER THIS ACT Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or badlis. Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage rates.

Shift working. Attendance and late coming. Conditions of, procedure in applying for, and the authority which may grant leave and holidays. Requirement to enter premises by certain gates, an liability to search. Closing and reporting of sections of the industrial establishment, temporary stoppages of work and the rights and liabilities of the employer and workmen arising there from. Termination of employment, and the notice to be given by employer and workmen. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct. Means of redress for workmen against unfair treatment or wrongful exactions by the employer or his agents or servants. Any other matter which may be prescribed. Submission of draft standing orders.Within six months of the application of the Act , to an industrial establishment, the employer shall submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in his industrial establishment. Standing orders to be accompanied by particulars of workmen: The draft standing orders submitted shall be accompanied by a statement giving prescribed particulars of the workmen employed in the industrial establishment including the name of the trade union, if any, to which they belong. Employers in similar establishments may submit a joint draft for their convenience. Conditions for certification of standing orders.Standing orders shall be certified under this Act if-(a) provision is made for every matter set out which is applicable to the industrial establishment, and (b) the standing orders are otherwise in conformity with the provisions of this Act; the Certifying Officer is under an obligation to adjudicate upon the fairness or reasonableness of the provisions of any standing orders. Certification of standing orders : Copy of the draft standing order to be sent to trade union or workmen: On receipt of the draft, the Certifying Officer shall forward a copy to the trade union, if any, of the workmen, or where there is no such trade union, to the workmen ,in the prescribed form requiring objections, if any, which the workmen may desire to make to the draft standing orders to be submitted to him within fifteen days from the receipt of the notice. After giving the employer and the trade union or representatives of the workmen an opportunity of being heard, the Certifying Officer shall decide whether or not any modification or addition to the draft submitted by the employer is necessary to render the draft standing orders certifiable under this Act, and shall make an order in writing accordingly

The Certifying Officer shall thereupon certify the draft standing orders, after making any modifications and within seven days send copies of the certified standing orders to the employer and to the trade union or other prescribed representatives of the workmen. Appeals Any employer, workman, trade union or other prescribed representatives of the workmen aggrieved by the order of the Certifying Officer within 30 days from the date on which copies are sent by the certifying officer, appeal to the appellate authority, and the appellate authority, whose decision shall be final, shall by order in writing confirm the standing orders either in the form certified by the Certifying Officer or after amending the said standing orders by making such modifications or additions as it thinks necessary to render the standing orders certifiable under this Act. The appellate authority shall, within seven days of its order , send copies of the Certifying Officer, to the employer and to the trade union or other prescribed representatives of the workmen. Date of operation of standing orders.Standing orders shall, unless an appeal is preferred , come into operation on the expiry of thirty days from the date on which authenticated copies are sent or where an appeal is preferred, on the expiry of seven days from the date on which copies of the order of the appellate authority are sent. Register of standing orders.A copy of all standing orders as finally certified under this Act shall be filed by the Certifying Officer in a register in the prescribed form maintained for the purpose, and the Certifying Officer shall furnish a copy to any person on payment of the prescribed fee. Posting of standing orders.The text of the certified standing orders shall be prominently posted by the employer in English and in the language understood by the majority of his workmen on special boards maintained for the purpose at or near the entrance through which the majority of the workmen enter the industrial establishment and in all departments where the workmen are employed.

Duration and modification of standing orders.A certified standing orders shall not, except on agreement between the employer and the workmen or a trade union or other representatives of the workmen be liable to modification until the expiry of six months from the date on which the standing orders or the last modifications thereof came into operation. An employer or workman or a trade union or other representative body of the workmen may apply to the Certifying Officer for the modification and such application shall be accompanied by five copies of the modifications proposed to be made, and where such modifications are proposed to be made by agreement between the employer and the workman or a trade union or

other representative of the workmen, a certified copy of that agreement shall be filed along with the application.