WP-30

INDUSTRIAL RELATIONS IN INDIA AN OVERVIEW

by Dr. B.R. Patil*

November 1992

INDIAN INSTITUTE OF MANAGEMENT BANGALORE

Associate Professor, Indian Institute of Management Bangalore

INDUSTRIAL RELATIONS IN INDIA - AN OVERVIEW Dr. B.R. Patil*

A basic characteristic of all industrial societies is large scale wage employment. and People seeking wage

employment

the persons providing -

such

employment

constitute two distinct groups and the employers/management.

the workers/employees The relations between

these two groups ana structured; they are commonly known as employeiemployee labour relations, labour-management relationsthat side the of the

relations, Barring relations employees.

relations or

industrial

the first one, these concepts denote are collective at least on the

It is i: . labour union that deals with e

employers/management in matters of all of interest to its constituents-

issues that a,rG relations

Hence, the

between the two groups ar& organized. Of the terms used to describe the relations between labour and management the term industrial relations widely suggests been in vogue. that Although the word has

"industrial11 workers and

the relations are

between

management in industries, the concept includes work of a non-industrial character and analogues of industrial

Dr. Patil is an Associate Professor of Industrial Relations and Personnel Management in Indian Institute of Management, Bangalore.

relations government, charitable

exist

in all human organisations, institutions,

such

as, and and

educational

chrches

organizations, defense services, police

prisons, etc, indicating its pervasive character. The term relations means interaction between

people and groups based on attitudes of the

interacting may to and

people and groups. So the term industrial relations be defined as the sum total of management's attitude labour and of the labour to management's policies and the positions the two take on

practices

different

issues that affect their interests. But labour also industrial relations arm not purely The between state It is

and managements, i.e, bipartite. a party to industrial

relation*.

often to

intervenes

in labour-management relations in

order

protect the interests of the weaker party - normally th# labour labour and those and seeks to regulate the relations labour between

and management by enacting

legislations with Are

requiring the employers/managements to comply regulations. Therefore, industrial relations

tripartite- The degree and extent of state determines the nature of tripartitism.

intervention

Considering this

dimension of industrial relations we may define the term industrial relations as the complex of inter-relations

among the labour, the management and the state that are characterized and by legal and conventional norm, methods and

techniques of regulated behaviours,

organized

unorganized conflict and cooperation in the of institutional goals.

achievement relations interand in

The term-' industrial

also refers to the cooperative a d collaborative action the between workers, labour unions, with a view to achieving

management excellence

state

productivity of the employees and the enterprise. Hence, industrial relations include the whole range of relations between workers, managers and the state the

which

seek to determine the conditions under which

work is performed and the objectives of the

enterprise,

employees, the economy and the society are achieved. NATURE OF INDUSTRIAL RELATIONS Industrial with relations ar& essentially concerned that

accommodation of various differing interests

a.re involved in the process of get ting work done through other people. Hence, industrial relations s^re often

said to be a form of "industrial government/management11. Accommodation of differing interests of labour and management is always a mixture of cooperation and But

conflict that are inherent in industrial relations. conflict of interests needs to be settled

peacefully

keeping in view the mutual dependence and complimentarity of labour and management, while promoting co-operation

between the two. OBJECTIVES relations OF INDUSTRIAL RELATIONS: Though industrial form

^re bipartite in character, content and

both

the

management and labour unions have

their

own

industrial relations objectives. management and

The basic objective of preservation and the the

in industrial relations is the

strengthening system.

of the business enterprise To state it

enterprise

differently,

objectives of industrial relations are: 1. Achievement of higher efficiency and productivity of the enterprise and industry with active co-operation of the workers and their organizations. 2. To identify areas of common interest of both the sides with reference to recruitment and training, health and safetyv improvement of working and livinQ conditions, etc. 3. To create a new attitude toward work among the employees so that they consider themselves as useful members of the society and honoured partners in production. 4. To establish and improve the working/employment relationships with different groups within the enterprise to promote a social order that ultimately helps to usher in a new social system. 5. Equitable distribution of the benefits derived from industry among the employees, the management, the shareholders, the consumers, the suppliers of raw materials and equipment and the society at large, i.e to fulfill the social responsibilities of industry. 6. To promote the attainment of the commonly held of a democratic society. On the other hand, the objectives of trade in Industrial relations arei 1. To prevent unilateral action by the employer or widen the areas of joint decision-making dignity of labour, workers participation in management. 2. Full organization of workers and maintenance of that organization,i.e - preservation and strengthening of union organi nation. 3. To raise the standard of living of its members and goals unions

gradual improvement of working conditions by more and more for the members.

getting

4. Minimization of competition among workers for available jobs and secure job -security to their members,i.e, control over jobs. 5. To establish and build up union recognition authority in the work place. as an

6. To establish orderly practices for sharing gains7. To defend and promote the interests of workers. DIMENSIONS OF INDUSTRIAL RELATIONS Industrial relations may exist between individuals (i.e. between the worker and his employer) and they be collective, between a group a of group workers of and may an in

individual

manager,

between

workers

different enterprises and managers in those enterprises. The important question here is under what conditions and in what manner the workers act a-- a group in relation to ., i (iiagement, n working relative and in which groups - (work etc)? of And the crucial individual group, issue and union, is the

class,

importance

collective

relations for various aspects of industrial relations. Industrial organization and relations vary on a scale of degree be be in of

At one extreme relations may while at the other they may perhaps and embodied procedures. more

personal highly, legally Collective than of

informal,

institutionalized, prescribed industrial individual

structures relations

tend to be

organized episodes

industrial relations but short

informal group relationships are also significant (as in certain spontaneous work' stoppages). However, the

historical trend has been that as an economy or becomes increasingly industrialized the

society organized relations

relationship; replace the informal individual

and the scope of collective bargaining goes on widening. Industrial relations occur in units with boundaries that are observable although varying in the degree of

permeability - the work group, the plant, the enterprise, the exist (the industry, to the region, and the nation. They also level of

a certain extent at th companies)

transnational The universe

multinational

industrial relations is thus far from homogeneous. In practice industrial relations in arh of the

units tend to have A certain degree of independence from the relations in others. Within each industry, patterns of

different

enterprises

may have different

industrial relations.

Similarly, within each enterprise

or company different plants may have different patterns. Industrial single element relations exist in systems, and no

of An industrial

relations

situation

(strike propensity, or trade unionism) can be completely explained to or effectively manipulated without because the natural units reference in which

other elements

industrial

relations occur ar essentially the

wholes. in

They Are complexes of interacting elements; a change one may affect all others.

INDUSTRIAL RELATIONS ENVIRONMENT Industrial relations are intextual and economic The

influenced by the environment - technological, and business.* the social, political environment refers to and the It

legal.

technological system one

production from to the

or the manufacturing process-

differs plant

industry to another and one enterprise/ The technology of the plant

another.

determines

labour force to be hired. The labour force in a mill, labour coal mine force or plantations is

textile the

different from or

engaged in an engineering

electronic

industry. in

Different types of industrial relations exist In any enterprise/industry, labour any

these industries. in technology

change

affects the

force, both

quantity wise and quality wise, leading to variations in industrial relat ions. The according economy. industrial world economic to and business environment national and varies global on on the

the changes in the

These changes have a significant influence relations in an enterprise that depends in

market for its business.

General change or

economic affects frequent

environment, such as inflation the industrial relations at by workers for

recession, micro level and

the

demands

wage

increase

additional benefits, etc, resulting in work stoppages. The Social environment consists of the profiles the workers, the social attitudes, work norms and of work

and

the

society. Thus an educated and

better

trained belief an is life

labour force with positive attitudes to work and

in norms socialized in a society where work ethic is inherent quality of life, and a labour force and democratic in its good that

innovative, will

creative

work

certainly be conducive to

labour-management in

relations

extending their cooperation to management

its endeavours to improve productivity. The ideologies time and Political environment refers to political point of of

and systems prevailing at a given the political affiliations

particularly

labour.

Industrial relations in a democratic

political

system mrm different from those in a socialist/communist system. are is In democratic societies industrial relations

bipartite and voluntary and the state exceptional. The labour unions adopt

intervention to

subscribing to

different industrial policies. policies basically Similarly, industrial patronage while

political

ideologies

different different and mrm

relations philosophies and pursue

Thus the industrial relations philosophy of socialist or communist labour based rather than political in party the in unions

class the

business power by

centered. influences extending

relations

country

to the unions affiliated to its similar privileges to other

labour

wing A

denying

unions.

government believing in tripartite system of

industrial powers

relations wants to have more and more regulatory

through legislations and executive fiats, while to create independent institutic* s for

refuses promoting

bipartite relations. The legal environment not rily refers but also the judge-made to labour In a

legislations

laws-

tripartite industrial relations system the State laws on every aspect of labour and industrial

enacts

relation

on the pretext of protecting the intere .,, of the weaker .\s party in industryConsequently, industrial relations determined dimension

are: regulated under the labour laws and not bilaterallyThe judge-made laws add another

to the legal environmentdisputes.

While adjudicating industrial issue awards

The courts interpret laws and

which become more important than the laws enacted by the legislature, often requiring amendments to labour laws. CHARACTERISTIC FEATURES OF INDUSTRIAL RELATIONS in INDIA: Industrial relations in India, over years, have

acquired certain distinct characteristics. 1. Dominance of Tripartitism: Ever since

These a.rGi the Indian were the a

Labour Conference and the Sanding Labour Committee introduced

in 1941-42, ever since labour was put on

concurrent list in the Indian Constitution and formed part of the Directive Principles of the State

Policy, laws of of to the trade

ever since give effect

the enactment of regulatory labour to the protective labour policy

government and

ever since the politicization

unionism

and industrial relations began, the State

has and

become an active intervener in industrial relations

a dominant third party. It is the State that has created the industrial relations machinery conciliation

machinery, the labour courts, industrial tribunals, and national and industrial tribunal - to promote settlements of the

to determine industrial disputes in favour

weaker p^rty <the weaker party often being the The State had the also taken upon itself the

labour). task ui

determining tripartite governments

wages of

industrial

workers

through

wage boards during 1955-65. The in India h v been arming a<

appropriate with

themselves

more and more powers to regulate and control relations (eQ Section 10-B of the Industrial Act), while reiuminq to create independent machinery inspite of the Commission on Labour

industrial Disputes industrial of the

relations the?

recommendations (1969) and

National

Bipartite Committee

Industrial (1990).

Relations Committee

Ramanuiam to

Though several

attempts are made

change the policy and the lav they have turned out to be half-hearted and abortive attempts. So the existing

tate of affairs. 2. Heavy Legalimm in Industrial Relations! The state in

its anxiety to protect the interests of the weaker party has enacted a large number of labour legislations. nation on this earth has such a heavy dose Besides the regulatory labour of No labour an

legislations.

laws,

10

undue policy raise

emphasis

on

compulsory

adjudication

both

in to the

and practice, the right of every trade union a dispute and seek the intervention of

industrial relations machinery, and provision of against coupled awards with of the labour of courts collective in heavy and

appeal

tribunals bargaining

absence have

relationships industrial industrial characterized management had

resulted

legal ism 1960s

in the was

relatiMs. relations

During the 1950s and climate in the

country public The

as litigatory. adopted this

Even the approach.

sector disputes time to laws to

settlement procedure and process had become unduly consuming several extending over a decade in many cases due layers of appeal. Resultantly, the case

developed beyond anybody's imagination and they came be treated as more important than the

statutory inferences matters.

provisions. and

Only a legal pundi t could draw

apply them in day-to-day labour relations

Even today many managements in the private sector prefer an award to an agreement. And where the disputes at the refers

bipartite level prolong the State intervenes and them to tribunals.

The entire scheme of industrial relations in India revolves around the interpretation of three terms, industry, these, the industrial dispute, and workman. adjudicating authorities have On each laid viz. of down

several tests which are applied in case of every dispute

11

raised by a trade union or a workman. Among all the case laws, Court the of judgement of the Full Bench of India presided over by Justice the V. Suprem Krishna A. In term

Aiyyar in Bangalore Water Supply and Sewage Board Vs Rajappa's case in 1979 has been an epoch making one. this case the Supreme Court interpreted the

industry in an extremely wide and comprehensive Consequently, professions, brought many occupations, vocations, callings, business, service,

manner.

avocations, etc, were the being

within the Disputes service

ambit of the term industry and Act - the only exceptions

Industrial domestic

and legal

profession.

Consequentlyf

professionals like doctors, nurses, teachers, engineers, etc, mrm enabled to seek remedies under the Act. Though the new industrial Industrial relations

Disputes

situation arising out of this case law demanded a change in the existing law, the government has not been able to enact an industrial relations law of and both the employers that and protects employee* without the the in any State

interests industrial

non-industrial

sectors

discrimination.

This failure on the part of

has led to frequent work stoppages in all employments and heavy losses to the economy and the society. 3. High Employment Smcurityi The basic approach of

labour legislations has been the protection of interests. Hence, they provide full

workers' to and

protection

workmen leading to criticisms. Secondly, the Courts

tribunals problems Thirdly,

have with

adopted a liberal a view to

approach social

to

labour justice.

delivering

the government policy has been not unemployment in the country. The

to

create compound

involuntary

effect of all these has been high employment security to the workmen. Once a workman completes 240 days of in a

calendar year, i.e. continuous service, (with or without a to break) he is treated as a permanent workman avail all to the benefits. The labour laws eligible provide of

options unwanted

the employer to terminate the It has, however, been

services

workmen.

practically of

impossible, such workmen. of the

in the normal circumstances, to get rid

A workman could be chargesheeted for any misconducts certified under the

several

Industrial Employment (Standing Orders) Act of 1946. But he and cannot be terminated without conducting establishing obtaining the charges, and, in the permission or or a the labour an inquiry cases, of the

certain approval

before

conciliation tribunal.

officer And if

court/industrial raises an Court

terminated

workman

industrial dispute on his termination, the Labour has the power, under Section 11A of the

Industrial and

Disputes Act, to review and examine the entire case

decide whether the employer was justified in terminating the workman. Moreover, during the period of inquiry the

workman is entitled to receive a subsistence allowance. Industrial Disputes Act provides for retrenchment

13

of surplus labour if the business needs it. employer has on his payroll required to take

But if

the is

more than 99 workmen he of the

the permission

appropriate

government to retrench his workmen. ordinarily

But the governments of the

do not give this permission in view

policy of protecting employment.

Similarly, an employer

can't close down his establishment due once again to the statutory government. workman, employer as can requirement of seeking permission of the

And if a workman happens to be a per Section 33(3) of the same

protected Act the grave is

not take any action, except

under

circumstances, against that workman at least till he a protected workman.

Therefore, the only way of getting rid of a workman is through superannuating, voluntary or retirement/Golden permanent total resulted all to

Handshake, voluntary quits, death, disability. in the

This high employment security has asserting themselves to

workmen

secure

statutory

and non-statutory benefits while refusing

improve their efficiency and productivity. 4. Late Emergence and Development Industrial is left to of Collective a-e and they

Bargaining primarily management desire. shaped

Relationshipsi bipartite. It

relations labour

to develop their relationships the way bipartite given a relationship direction is

This and

determined, collective

through

bargaining.

Collective bargaining has been a democratic

14

bipartite also It

decision-making

process in industry.

It

is

a method of management and industrial

government. and of an

is a process of negotiations between management representatives on Issues and problems

workers' mutual

interest and concern with a view to reaching

agreement which helps both to define and redefine relations Collective and ensure industrial peace and

their

harmony. of a the

bargaining presupposes the existence

strong and representative trade union recognized by management as the bargaining agent of the workmen. Collective economies industrial has bargaining become the in industrialized

market of

central

institution of

relations-

Almost every issue

labour-

management relations is decided at the negotiation table nd implemented with the cooperation and involvement labour the unions. But given the socio-political labour India of

system, and a an and

industrial

scenario, and the particularly before

policy became had

legislations, democratic

republic,

collective

bargaining

uneven growth and development. Only a few employers labour unions had endeavoured to practice

collective 1962 by 1950 labour the

bargaining the

according to a Survey conducted in Federation of India.

Employers'

Even after

collective policy British and

bargaining had to face an ambivalent approach of the government.

While and

Government

required the employers

labour and

unions to submit all their disputes to conciliation

15

arbitration, service interested view to

the

Indian

government paid bargaining. It

only was

lip more a

collective

in developing compulsory adiudication with

to nurse the Indian National Trade Union which was promoted by the Congress

Congress party in

vINTUC), 1948. and to

Despite the efforts made by late Sri. V.V. Giri, late Sri. Jagajivan Ram to provide a rightful place

collective the

bargaining government and

in the

industrial to

relations on the

system,

continued

emphasize During

conciliation late policy 1950s of

compulsory

arb1tration the industrial moral

and early 1960s

relations codt^ and the

the government emphasized

tripartite wag* boards

mechanisms like the Cod of Discipline, and workers' participation in

management Even to of

scheme. when

But all of these had a limited success. recommended as has a method

the National Commission on Labour for collective relations the bargaining Government

provide

industrial avoided

consciously bipartite in

to promote collective bargaining and

industrial India,

relations. Th industrial relations laws the

the nature of trade unionism,

paternalistic tripartitism

approach of the employers, the emphasis on

and government's unwillingness to give up its control on industrial relations have been the prime factors for the delayed development of collective bargaining. with the tripartite system adjudication of

A total disillusionment of wage determination,

compulsory

16

industrial disputes coupled with an amendment to Section 19 the of the Industrial Disputes Act in 1964, right on the majority in the union majority to conferring a a

terminate union and and

settlement realization that their

covered on

the part of the management arB better a

labour through

interests

protected strong

bipartite impetus

negotiations

provided

drive

and

to both of them to take recourse to finding out their own solutions to

collective problems on

bargaining like

multiplicity of trade unions, absence of a law of trade unions as the negotiating

recognition

agents per

of workmen and a provision on collective agreements se.

Thus, collective bargaining emerged only during the Yet of a

late 1960s and early 1970s on a fairly large scale. it did not develop as a real bipartite method

determining labour-management relations.

It was more?

process of you bargain we collect type of relationship the unions often making, sky racketing demands on

managements, and

the managements bargaining those

demands, situation since all

the unions collecting the benefits. This exists even today in public sector

largely

bargaining takes place at the national level with active intervention of the concerned ministries. This type of

collective bargaining resulted in a situation of pushing the late managements to the wall. It was only during the

1980s that the managements started making

demands

on labour unions and negotiate on a quid pro quo basis.

17

Though be wages,

collective bargaining issues continue

to in

allowances, bonus, and fringe benefits as

the past, the unions are getting mor# and more

interested

in non-wage issues and trying to regulat managements and save in organ 1 zat ions. Whereas managements are job regulation and fltxibillty, work discipline, good attendance, interested shop-

norms,

floor

productivity, practices by

elimination and the like. the

of restrictive and wasteful work

Often the parties are not bogged down limitation* on the demands and

statutory

issues. data and are The

The union* arm equipping themselves with fact and to effectively negotiate to with the managements that thr

successfully alternate union

ihow of

th management the

ways and

managing ar

organizations. for

workers

prepared

concession

bargaining save the organization and jobs. Today the collective bargaining has developed labour policy fast and despite legal

absence of an encouraging

framework. democratic

The industrial relations are and mature. The labour and

becoming are in law

management

less dependent on the State and are demanding almost a single voice an industrial relations policy and

that promote bipartitism. But continue its the Government is consciously trying to from

its policy of tripartitism as is evident to replace the existing relations machinery with state the

refusal

controlled autonomous

industrial

18

industrial relations commissions and the revival of Indian Labour Conference. 5. A Fragmented trade and Politicized Trade Union of

the

Movements workers of its

union is a voluntary organize ion to protect and promote the

seeking

interests

members vis-a-vis that of the employers. union is a political organization. Trade

Hence, a trade unions have

different

philosophies, policies, programs and Some unions may

methods subscribe

to achieve their objectives.

to the philosophy of class struggle or class warfare and its approach to industrial relations its while and objectives some unions may may be and methods of and class latter

achieving militant, cooperation

agitational in of

believe

coexistence.

The approach

group of^ unions could be constitutional and peaceful. Trade unions in India are organized at various

levels - craft, plant, enterprise, corporate, industrial, industry-cum-regional, and

regional, The

national.

craft unions are are

the most basic and original type: they the working

often detrimental to the interests of

class itself.

The plant/enterprise level unions are the The unions at the regional,

most common form of unions.

industry, and the national levels function as federating and affiliating trade bodies. India has a large the number first of of

affiliating

union organizations, Trade Union

which was the All India

Congress

(AITUC)

organized in 1920 much against the advice of Gandhiji.

19

The history of trad union movement vividly out the phenomenon that it is guided more by than industrial necessities.

bring*

political During due and to the

considerations 1920-48 struggle the

AITUC had to face internal splits

between the Indian National Congress

Communists for gaining control over the organization and the external supported Indian the AITUC Indian Trade control class. saga War was threats from the Government and government the After again the

trade union movement under the aegis of (IFL) of M. N. Roy. and once

Federation of Labour

though the IFL was dissolved the sole national level the

organisation, Indian view to the

National Union

Congress formed

National gaining working A and

Congress (INTUC) with a

over the trade union movement and

Since then the trade union movement has been of fragmentation, subdivision, and following fragmentation parties both at the alignment

realignment political levels.

and realignments of and regional

national

Resultantly, there have been too many national, and

regional and industrial federations of trade unions also non-affiliated, independent trade unions.

The rate

of growth of trade unions has been mind boggling for any one. The number of registered trade unions in 1950-51 the mere Indian on

was a mere 3766 which reached 47.014 in 1987, while number of affiliating federations has grown from a four to over a dozen during the same period. The trade union movement even today has been

living

20

borrowed philosophies and ideologies - mostly communist and socialist. The methods trade union philosophy, the policies, But no and trade

often determine the membership.

union can achieve 100% unionization of workers unless it is a closed shop system which is absent in India. Yet in modern industries like, chemicals, engineering, power the It

generation, etc, where the labour force is educated density has of organization (membership) is very high,. impressive in proportions in large to

reached

firms, modest at

especially levels in

the public sector,

tapering but

medium

sized enterprises,

remains

negligible levels in small business. Since permanent stabilized bring all 1980's workers at but It the in level large of organizations has among either to

enterprise

relatively high levels or a handful within has certainly the been

increased of period

ambit a

trade of

unionism.

consolidation for the labour movement in this segment. Whereas, in traditional industries like cotton and jute textiles, plantations, coal mines, etc, the dues their past. have lead mass of

paying membership is becoming less relevant while support Trade in crisis situation continues as in unions in such industries seem the to

r\ot

overcome the legacy of the past. an

They continue to

existence centered around conflict, mobilizing during strikes and living on a slender base

support

21

cues paying members when industrial relation ar& normal. The labour trade union federations, instead of have promoted interand creating

unity,

mtra-union and

rivalry, fragmentation and sub-division dependency processes. on political par ties and

of unio-is,

adjudicatory is

The fragmentation of the labour movement

at its waist in older industries. In plantations, And jute textiles, coal mining, ports and docks,

cotton etc,

there ^re too many trade unions as every political party competes to have a base in each unit or enterprise.

Inspite of this savage competition for worker support or perhaps because of it -claims and countdiclaims dominance by rival unions are strong and to

intense.

Further, as if competing claims to worker support is not

enough, there are intense rival claims by many unions to

a single banner. and There are several unions of the INTUC, to the

HMS each claiming to be the true successor In the past the labour

mantle.

movement was split by groups to The in

ideologies. within promote every

But today it is split by factional ideological stream working

overtime

individual

leaders and their

ambitions.

it at ion seems to be worst in the chemical industry Maharashtra where about a dozen INTUC with one another to organize the unions mre chemical

vying

workers. increased It is no and

Resultantly, the density of organizations has much faster than the density of membership.

wonder, therefore, that if workers treat the unions

22

their

functions

as

strike committees to

be

used

in

crisis situation but unworthy of continue., supoort. If that we analyze the pattern of affiliation we place find of

different trade union federations have

dominance in the labour movement in different regions CITU in West Bengal, INTUC in AP, Gujarat,

Maharashtra On

and Karnataka, AITUC in Kerala and

Karnataka, etc,.

the contrary, in modern industries the workers and their unions prefer to remain unaffiliated enterprise level

unions dominated and lead by internal leadership. Still another feature of trade union movement been external leadership. leadership came has

Historically, the trade union workino class; the

from outside the

freedom movement provided necessary leadership. of thf

Inspite in from and ar& by

45 yea-s of Independence, trad- union leadership traditional industries continues to be E^ut in newer industries different of leadership have emerged. whose leadership is themselves of and drawn forms

outside. structures the unions

At one end entirely the from trade

provided other

employees situation

at the

familiar central unionists

leadership controlled by

coming outside

organizations continues. which coopt

In between these two extremes ^re the unions an external leader as an advisor or getting affiliated to the as a

president

without

central

organization to which belongs. Such a leader is retained (like a consultant) purely as a figure head, leaving

real

power in the hands of the worker-leaders.

It

it

also now an established fact that such leader is changed at the sweet will of the dues oayino membership; workers h r > from one external someone In to this leader to another in the hope of only to when get of in

finding needed.

whose help could be sought process they do not a

mind

affiliated

or d1saffi 1 i ated from

federation

unions. This clearlv general

indicate* the desire of workers

to gain greater control over their unions. importantly, there ham been a negative on

More orientation

to trad* union movement and trade unions

the part of the employer* and managements. Thouoh unionism in India has been more than a century old, trade unions are not fully accepted by the

trade the

industry, partners attitude typical

especially in the private sector, as essential in the management of industry. The employers'

toward trade unions and trade unionism is still of feudalism. to

Wherever and whenever there is Mn attempt and comes of the

organize workers, the employers try to suppress those efforts, despite it if the they seek to break the union unity

repress into

existence

workers taking advantage of a section of the workers who loyal to them and promoting a company union unions and exist union The the

fostering

its growth.

Even where single

the efforts are to plant the loyal workers in the as its office-bearers or members of the executive. professional outside leader is often found by

24

employer amenable to inducements? he is willing to settlements such union handled In on the dotted lines for a are absent, the reward. sees should

sign Where the be

situations as a

management people who is

militant group of

toughly whenever the opportunity

provided. play one

a multiple union situation, the employers

union against the other using a 'favoured' union and get the issues decided in their favour. If a dispute is

raised by a union the managements fight it out up to the Supreme Court level. However, in recent years there is an appreciable managements toward trade

change in the attitude of the employers and both in the private and public sectors

unions.

They are encouraging the employees to take over

the leadership of their unions and help build strong and stable organizations. An sector important feature of trade unionism in industries has been the formation of public on

unions

caste and language basis and unionization of employees. the The protective discrimination

managerial bestowed on

SCs and STs and their desire to avail the

benefits the on been An

in employment much faster than due has

resulted in

formation of SC & ST Employees' Associations exactly trade union lines though they may not of have 1926.

registered

under

the

Trade Unions Act

unexpected consequence of coming into existence of these associations has been the formation of Non-SC & ST

25

Employees' Associations, and the emergence of linguistic fora particularly in centers like Bangalore; e.g. Sanghams, Malayalee Samajams, Kannadigara Tamil

Hitarakshaka welfare

Samitisf etc ? .

Though these bodies claim t - be <

associations their style of functioning has been that of labour unions. Managerial unionism in public sector and financial institutions feeling level of has come to stay the basic reason being alienation and powrlessness in decision-making and among a

middle of be they

managers

absence to

employment stronger

security. in financial

Managerial unionism seems institutions and often

function in association with the staff unions. 6.The Changing Face of Industrial Conflict! The term in

conflict refers to a sharp disagreement or collision

interests, ideas, etc, and emphasizes the process rather than the end. In industry where the interests of

labour and management are divergent and where each party seeks to protect and promote its own interests, conflict is a natural phenomenon and more common than any other

form of industrial relations. Conflict in labour-management relations is closely related to the degree of structuring of labour

relations ranging from unorganized conflict to organized group conflict. In an exhaustive study of industrial listed

conflict various

Arthur Kornhauser el al identified and manifestations of industrial

conflict.

Manifestations

of

organized

group

conflict

at

the

instance of the unions take the form of with

non-cooperation workof union strikes and

the management, unwillingness to negotiate, go-slow, and systematic wastage, adoption the

to-rule, wasteful

restrictive work practices by

members, demonstrations and picketing, wild-cat

with or without the approval of the un on, sabotage destruction, gherao, and, lastly, strikes and On the other hand, management in to resorts to

violence. unilateral unions,

changes refusal

work norms, refusal to negotiate in good

recognize faith,

over strict

supervision and shop-floor discipline,

retrenchment and

lay-off of workers on flimsy grounds, lock-outs, closure of establishment, and/or removal of plants, Of suspension

of manufacturing operations, etc,. lock-outs, gheraos,

these, strikes, suspension of establishments dramatic

go slows, lockouts,

manufacturing operations, and closure of have been the most overt and

sometimes

manifestations of conflict. The terms severity of conflict is normally measured number duration involved, of wages in of of the and

of the number of disputes raised, and resulting in work-stoppages, the the number lost, of workers loss

disputes

work-stoppages, number of

man days The

the

production. extend affect

effects of

work-stoppages,

however, and The

beyond the parties involved in the conflict the community and the national economy.

27

industrial relations history sine* World War II reveals effects. 1962, the that the strikes have had their

clearly dramatic in

Barring the periods of rational emergency 1971 and 1973-77, the number of

1965,

strikes,

number of workers involved, the number

of man days high. has

lost, and the wages and production lost were very But after the 1982 textile strike in Bombay there

been a dramatic change. have

The strike activities of unions employers have

come down substantially while the

become offensive.

During the last one decade the number

of lock-outs declared, the workers affected and the loss of man days have relatively been higher than those caused by strikes. The table below reveals this phenomenon.

Trends in Industrial Conflict 1983 - 88 No. of Disputes No. of Workers No. of Man days resulting in Involved(in 0 0 0 s ) lost (in lakhs) Strikes Lockouts 1983 1986 1987 1988 1,335 1,438 1,348 1,304 400 434 451 441 Strikes Lockouts Strikes Lockouts 8,78 14f44 14,95 9,37 2,01 2,01 2,75 2,54 114.87 118.24 140.26 125.30 117.33 139.23 213.32 214.17

Year

Sourcei Handbook Q I U&fiUC Statistics 1991 The Employer's Federation of India, Bombay 1992. P. 38. Considering the consequences of conflict to labour, management, need to the community, and the economy there it. Accordingly, the is a

regulate

Industrial

28

Disputes Act regulajes strikes and lock-outs. Under Sec. 22 of this Act it is compulsory on the part of a or management union

in a public utility service intending to notice lock-

resort of

to a strike/lock-out to give a six weeks a

its intention to go on a strike or declare

out, after having served this notice they can not resort to a work-stoppage within 14 days of giving the notice

before the expiry of the date of strike specified in the notice and during the pendency of conciliation

proceedings and seven days after the conclusion of those proceedings adjudication. without and after Any the dispute or is referred resorted an for to

strike these

lock-out is the

following

conditions under

unlawful Act. The going in a

strike/lock-out implications on

punishable

of these restrictions are such that

a legal strike or declaring a lawful lock-out

public utility service is next to impossibilitythere utility their are no such restrictions in case of

While

non-public to a get

services the law permits the employers establishments (services) declared as

public

utility service for a period of six months at a time. An employer this the can approach the appropriate government most for of

purpose every six months.

Consequently, been

strikes and lock-outs in India have And Sec. 23 on not of the Act imposes

illegal. general or

certain A

restrictions lockout can

strikes and lock-outs. be resorted to or

strike

continued

while

29

conciliation or adjudication proceeding to issues

settle of

the the the

arm on, seven days after the conclusion proceeding* or one month

conciliation conclusion and during in or

after

of adjudication or arbitration the period of a settlement

proceedings, or award by same ^n in that Act

operation settlement prohibits

respect award.

of any matter Section 25

covered of the to

extending

financial support

illegal

strike or lock-out. Section 10(3) of the Act empowers the appropriate locka is

government to ban the continuance of a strike or

out while referring the dispute for adjudication, and strike/lock-out also illegal. continued in violation of the? unions and ban

But the trade

managements

neglect th ban order and continue their

strike/lockout

as the history of industrial relations reveals. Late conflict invention in 1960s West witnessed a new Bengal, viz. form gherao. of It industrial was the an state

of the leftist trade unions under

patronage to pressurize the managements to concede their demands personnel confined on their (unions) terms. The of management workers, outside demands the the of

were encircled by a large group

them to their office chambers, denied food and water also until the

contacts - often were police High

conceded. The State Government had restrained from intervening in labour matters. Though

Court and the Supreme Court declared this form

30

conflict country found issues part

as

illegal, it spread to other parts

of

the

like a wild fire and the militant trade in it an effective way of settling long

.unions pending on the the

on their terms. The gradual realization

of the government and the trade unions consequences of of gherao on the

about

negative

industrial not of to the

development resort to

the region has made the unions weapon

it. However, it remains as a

trade unions and workers. While trade gherao was an invention the of the militant employers, invention in

unions

against

recalcitrant

suspension of manufacturing operations was an of the employers during the 1980s. utility serv : es were ^ The

employers

public

convinced time and

again lockby a and

about the procedural complexities in resorting to outs. The employers facing a continued labour union often leading to assault on members of rival strike violence unions

(militant) physical

and/or

management personnel suspend manufacturing operations till fixing the normalcy is restored by the union thereby of is

the onus on the union. operations enter Some is

When the suspension declared no worker and

manufacturing allowed to

the company

premises

provided to pay

employment. wages have

employers have also refused

for the workers during that period, while gone to the extent of asking for good to

others conduct resume

undertakings

from workers as a precondition

31

the manufacturing operations. and

Hence, the trade

unions have

some appropriate governments (e.g. Karnataka)

equated suspension of manufacturing operations with lockout holding that suspension of manufacturing has all the ingredients of a lock-out. operations Whether or

suspension of manufacturing operations is a lock-out not is a matter on which case law i yet to develop. Suspension resorted strike to not of manufacturing operations only as a consequence of could

be

continued in

and violence but also when workers

indulges

go-slow over a long period resulting in substantial loss of production. Suspension of manufacturing operations is also justified and acceptable to courts only when

supported by systematic data on production loss. 7. Dilatory and Ineffective Methods of Disputes

Settlement! on some

When the negotiations fail and no agreement the negotiating to a workthe of in

or all the issues is reached have to

parties stoppage

two options, viz. to resort pressurize the other party to

accept

offers or the demands made or to seek the assistance a third party to help them to resolve the and settle the issues. impasse a

negotiations stoppage option The

Since the third

workbetter party. on to a

has several negative consequences is to seek the assistance of the

parties while disagreeing to have an

agreement

terms not acceptable to their constituents may agree invite a third party to mediate and help them to have

32

settlement and, failing mediation to submit the for arbitration for an award.

dispute seek other options

They may decide to In

arbitration words, available Mediation

without going through mediation. and arbitration lieu be Ar& of two

mediation to and

the parties in

work-stoppages. consequential or

arbitration could

independent methods of dispute settlement. In India, however, the third party assistance/ compulsory Conc.il at ion steos Act* in

intervention is in the form of conciliation, adjudication, and or voluntary arbitration.

ad.iudicat ion, however- a.r> consequential

disputes settlemen . Under the Industrial Disputes

conci1iatior services could be availed either by a trade union process the or management or both. It is a quasi-comoulsory by

of disputes settlement. officer

It may be provided oi

conciliation

or a Board

Conciliation Conciliation

appointed is

by the appropriate government.

compulsory in ^11 disputes from the

public

utility

services.

On receiving notice of a strike/lock-out from and

a trade union/employer in a public utility service, in all work-stoppages whether from the public

utility

service or non-public utility service, the officer and of the area/industry is required

conciliation to intervene

immediately initiate the conciliation in case of disputes from

proceedings. utility

Whereas services Whereas

non-public a

the conciliation officers have a Board of Conciliation is an

discretion. hoc body

aji

33

constituted request by

by the is

the appropriate government only disputing tripartite parties. in A Board and

on

a of the the

Conciliation procedure procedures

composition

it follows is a judicial procedure while followed by a conciliation officer

ar& or

administrative. an

Whether conciliation is by a Board

officer the objective is to bring about an Both Are required to make

amicable best to

settlement.

their

efforts to induce the parties to the disoute to come a fair and amicable settlement of the dispute. conciliation parties the to officers appear and the Board can before them and

Both the the in of

summon participate

conciliation proceedings, compel the production

documents and material objects related to the dispute and examine witnesses on oath. Conciliation in India has been a dilatory and Both and in

highly ineffective process of disputes settlement. the labour and management do not have any faith

confidence

in the conciliation machinery especially

collective or interest disputes.

Conciliation is sought for the scale party a the such

by labour and management only to get a legal stamp their bilateral agreement under section 18(3) Act. It is only the small a of

Industrial employers wants legal dispute to

Disputes and

the concerned unions or

where to

tire the other or when both want of the issues

have in all

interpretation that

involved

conciliation is sought! and in

34

cases for

the rate of failure of conciliation is very conciliation When serves as stepping officer stone fails

high to to

adjudication.

a conciliation

bring about a settlement he is required to submit to his government involved bring a in failure report explaining the by issues him to of

the dispute, the efforts made

about the settlement, the reasons for failure and recommending whether the

conciliation should

dispute to

be referred for adjudication or not, and, if of reference. including

be referred, listing the terms All studies on

conciliation,

the have

observations of the National Commission on Labour. invariably concluded that conci1kiation has been dilatory and ineffective firstly because the has failed to create and
v

highly

government and for is

rovide

competent

effective mediation,

conciliation machinery solely responsible and secondly, compulsory adjudication

readily available on failure of conciliation. Compulsory as Adjudication: Adjudication, otherwise arbitration, is a judicial known of

compulsory

process

determining

disputes. It is a

consequential

procedure

based on the failure report of the conciliation officer. The disputes ending in failure at the conciliation level are referred for adjudication by a tribunal or a court by the appropriate government. The labour disputes to small while

involving

legal issues and disputes relating Are referred to labour

establishments

courts

35

disputes are

involving interests of labour to industrial tribunals. industrial also These order; consists bodies each tribunals, of do has a the

and

management labour

referred and

Besides

courts machinery tribunal.

adjudication industrial in a

national

not its

function own

hierarchical

jurisdiction courts by the

derived from the terms of reference. and industrial tribunals are

The labour

constituted national

appropriate

government* while the

industrial

tribunal is set up by the central government only when A dispute involves employers and worker* from more than

on state and have wide implication*. Adjudication, being a consequential *tep9 has not

only contributed to the failure of conciliation but also promoted bag inning not a litigatory culture in in 1950* till 1980*. industrial Since relation* is

adjudication

the final step in dispute* settlement, the

parties

not satisfied with the term* of the award have the right to appeal of to the High Court and then India. Like conciliation, to the Supreme has

Court

adjudication

also been a dilatory and highly time consuming process often labour about over a decade. and the Over a period of time managements got both the

unions the

disillusioned system in by also

functioning of the "justice11.

adjudication

delivering

The time restriction imposed

the government on the adjudication proceedings has not helped to improve the functioning of the

machinery.

As such in recent years the number of disputes the adjudication machinery has declined sharply. Voluntary Arbitration: Voluntary arbitration

reaching

implies disputant and

that arbitration of disputes is sought by the parties least parties,

themselves without any external compulsion the on statutory compulsion. The

negotiating to There seek is

reaching the impasse, may decide of on the issues in deadlock.

arbitration voluntariness arbitration. both from

both sides to submit their dispute to to

The arbitrator is a person acceptable The parties may select the and made available

the sides. a panel

arbitrator by the

prepared

government. and final.

The award of the arbitrator is both binding

Voluntary Ahmedabad Mahatma workers' intervened Following Association Association the

arbitration in India has its industry. leading It came into the wage

roots

in when

textile Gandhi

vogue

was

Ahmedabad increase. in

textile Gandhiji wages. Owners' Labour of for

struggle and this

for a SOX

settled it at 337. increase settlement the Ahmedabad

Mill

and the Mazoor Mahajan (the Textile - TLA) agreed to negotiate all

demands issues

TLA and fai1 ing negotiation submit the

arbitration by a board consisting of the representatives of the mill owners and the labour. In fact, in most of

the cases Gandhiji and the President of the Mill Owners' Association decided the issues. Except for a break of

37

about 15 years between 1937-52 the methods of collective bargaining methods and voluntary arbitration have been the

of determining the labour management

relation*

in Ahmedabad. Provision for voluntary arbitration under the

Industrial Disputes Act was made onlv in 1964 Section when But IDA in the Act through an amendment at

insert inc* a time rise. to

leoalism in industrial relations warn on the the employers and trade unions addicted

compulsory adjudication and court battle did not change their attitudes. Their preference has been for a method the award. Voluntary the Even the

which provides for appeal against arbitration expectations

being binding and final failed to meet of the employers and labour unions.

the Voluntary Arbitration Promotion Board set up by

government could not influence the employers and unions. Voluntary arbitration, as provided under the requires the employers and labour unions interested Act, in

submitting their disputes for arbitration first to agree to refer their dispute for arbitration. But it must the government refers the dispute to a be

before

labour the the

court or tribunal.

The agreement must also specify

arbitrator(s) Secondly, the parties must represent

majority of each party or the union must be a recognized union (as in case of Maharashtra). required to The arbitrator(s) is government which in

submit the award to the

becomes enforceable after 30 davs of its publication

38

the

official Gazette.

However,

voluntary

arbitration

has rarely been sought, 3. Labour-Management conflict Cooperation - A Mirage: Though industrial

has been the most dominant form of

relations, cooperation between the two is most desirable if both the parties have to realize their objectives industrial relations and help the society in

develop

economically and socially.

But in an industrial society

cooperative labourmanagement relations &re evolutionary. Both management and labour must strive to develop such

relationships, the onus being on Quite a good number of

employers/managements. in

employers/managements

different labour systems political the labour

industries in India have been able to cooperation developing their

ensure own a

management and

procedures.

When India

embarked

upon 1950s,

system of socialist democracy in mid policy of the in government management

provided (WPM)

for

workers'

participation

through the the 1958. labour Year of by able and

bipartite joint management councils (JMCs) based on report 15th Since of a Study Group and the deliberations at in

session of the Indian Labour Conference

then WPM has become the watch word of the During the Second Five

policy of all governments. Plan

period the WPM scheme was evolved as a measure and moral codes in industrial relations He was

voluntarism the to

then Labour Minister Mr. G. L. IManda.

persuade a good number of employers/managements

39

trade union federations to agree to introduce the The objectives of WPM in general and of the

JMCs. in

JMCs

part icular were threefold: 1. Promoting increased productivity for the general benefit of the enterprise, the employees and the communi ty; 2. Giving employees a better understanding of their role in the working of the industry and of the process of production; and 3- Satisfying the workers' urge for self-expression, thus leading to industrial peace, better relations and increased cooperation. The JMCs were required to ensure cooperation improving of

between labour and management productivity. funct ional

in raising and

They were entrusted with three types

responsibi1i t ies, viz: informal ion

sharing,

consu11a11vfe, and administrative. Though only in the JMCs were required to establishments and the where initial be good introduced industrial and quite time

those

relations

existed

response

enthusiasm of the employers and labour unions was encouraging, the number of JMCs constituted at any

durinci 1958-65 did not go beyond 150 in the country as a whole. views failed National There and to .is a high degree of uniformity the in the

conclusions about the JMCs that achieve Commission about any of the on the objectives. expressed

scheme the

Even

Labour JMCs and

serious their and

reservations aboliti n the

recommended

in its then existing form. The employers

trade unionists accused each other for the

failure

40

of

the system.

They were seen by the labour unions The managements only of By increasing and large

as

a measure to use

to replace them. them as a means costs.

sought

productivity the socio-

without

additional

economic conditions in the country were not conducive to the effective functioning of the scheme. out out It was pointed emerge making

by research studies that the scheme did not of a need for participation in decision

processes in industry. workers' evolution even participation

It was also pointed out that the was at the lowest level of and in

and that the workers, unions, employers, interest

the government did not have any real

its success. Despite Government introduced revised a such the adverse scheme scheme in in conclusions, October the form 1975 of the and Shoo

two-tier

Councils and Joint Councils.

This scheme was applicable the

to organizations employing more than 499 workers in manufacturing and mining industries both in the and public sectors and extended later to public and service organizations. The

private sector of of and mutual

commercial

purpose

these councils was to provide institutionalized fora communication management and consultation between workmen

with a view to creating a climate of

trust and confidence necessary for increasing production and promoting industrial harmony. Since the scheme was introduced during a time when

41

an

internal

emergency was clamped on the

country.

As

such it was "well received11 throughout the country and * large number of organizations " implemented11 the Whatever success is attributed to this scheme. was lost

scheme

limited to the period of emergency, and the scheme i is sign i ficance and relevance soon after the

emergency

was lifted and a new government came to power in 1977. A second revised scheme, based on the report of Committee on Workers Participation a in

tripartite

Management, Equity and Trusteeship, a three-tier was introduced in 1983 applicable to central

scheme public

sector enterprises, while the private sector enterprises and state governments wore asked to implement at the the

scheme. shop level.

The scheme provided for joint councils level, the plant level and the

floor

corporate list of at this

The scheme also provided an exhaustive

the subject matters to be dealt with by the councils the three levels. Before the introduction of

scheme a number of preliminary steps were taken so as to ensure its acceptance. However, based on the findings of a study team it was decided that where the then existing system of participation was working satisfactorily the

same would continue and be strengthened by incorporating some SAIL, of the provisions of the new scheme, like BHEL, would

NTC, and CCI, while other industrial units

introduce the new scheme. The Union Labour Ministry reports reveal that till

42

the

end of 1988-89 no central public sector

enterprise while variant

(CPSE) had introduced the scheme in its totality, 33 CPSEs had implemented their own schemes or a of the new scheme. inclination obviously to

The private sector never showed any implement the scheme. The scheme

had no impact on production and productivity,

and industrial relations. Having gathered the impression that the scheme WPM would not work if left to the discretion of of the to and

emolovers make lab njr it

and labour, the Government in 1990 sought a statutory obligation on through a law. But the the Bill industry on

Workers' Ra%iya

Participation

in Management though introduced in

Sabha could not be enacted and the issue continue to be elusive as ever like a mirage. The government does not that scheme

want to learn from its experience of three decades neither industry nor labour wants to have a

imposed on them. Some of the big public and private takings Circles Even in have sought to introduce systems borrowing this the concept and ideas a good sector like from underQuality Japan. of

area also there was

amount

enthusiasm on the part of both the management and labour and even a quality circle movement seems to have up. Periodically, workshops and conferences on ^re conducted and the make quality caught quality from their

circles different

circles on

organizations

presentations

43

functioning interest circles of and

and

achievements.

But how

deep the

is

the

the labour and- management in the movement is yet to be

quality

empirically

established. 9. Industrial Relations in Public Sector sector to in India was supnosed and to reach Undertakings: be a model

Public employer

the private sector

commanding The general reveals The

heights, inter alia, in employee relations. industrial both relations and scenario in this negative

sector

positive

characteristics.

positive features arez 1. been The public sector enterprises (PSEs) have model employers and in respect of certainly working

wages, the

conditions There in

welfare facilities for

employees. PSEs in now its

seems to be no resource constraints for" the such model employers. has rise The public which sector has and

being

general given

been employment oriented, to problems of surplus

manpower

redeplovment. 2. A culture of uniformity and parity among to have taken strong roots as a result the of PSEs the

seems

government themselves

policy and workers' strong desire to in getting their rights ensured.

assert has the

This

also resulted in the labour legislations regulating relations. 3. In pursuance aware of the labour policy of making and

the an

worker

of his du^.1 role of an emoioyee

44

owner,

the

masteiservant relationship

in

i r

istrial

relations seems to be largely absent. 4. The PSEs have inherited first a top bureaucratic management form of

management jere drawn be

since the

personnel to

from IAS cadres-

This culture continues

the order despite professionalization of all

levels

of management. 5. Trade unions ar& accepted as essential partners; the

managements have respected the freedom of association of workers. internalThe leadership) of the unions is mostly

Trade unions &r& helped by the managements to Recognition of representative unions a normal practice

clos? their ranks. through secret

ballot is becoming

leading to strong collective 6. Though by collective

bargainincj j 1 at ionsh IDS.

bargaining has been accepted both constrained by

the managements and the labour it is

the Bureau of Public Enterprise guidelines and political interference bargaining. bargaining political and maneuverings; often it a to is proxy greater their

The trade unions seems to have capacity than the managements due clout and their practice of

negotiating In some

through the Joint Action Front of trade unions. organizations there is also the practice bargaining. of

continuous

7. Industrial democracy is also better accepted in these organizations primarily due to the governmental policies and approach and professional management. Not only the

45

government

evolved

schemes are

implemented

but

also

other forms of employee participation, like the circles, are introduced in most of the units. 8The managements of PSEs are very open to

quality

change, often and

particularly, bogged down

the technological changes, but are by procedural rules and regulations

surplus manpower losing the benefits of changes. There are some equally strong negative features of industrial relations. These are:

1. The managements of PSEs are reauired to function with too much control from the concerned ministries and is

political

interference.

The top executive himself

selected and appointed by the government with a

limited in

tenure which makes them to keep the political bosses good humour. Often he is not is a position to

provide

continuity to labour-management relations. 2. of The middle level management have developed alienation and powerlessness. a sense the

Resultantly

managerial unionism in public sector has been increasing and reaching its full potential. 3. All PSEs are characterized by a lose work culture.

The work norms are fixed much below the industrial norms as to enable the workers to earn good incentive wages. Production picks year. targets are also losely fixed; production financial

only during the last quarter of the

Consequently, quality is often neglected.

4. All PSEs being employment oriented are of large :ize.

46

This

large size renders it difficu relations often

to establish are

good not

employee

t - grievances ?

attended to and effective redressed due to

bureaucratic

form of management and several layers of management. 5- The workers are more conscious of their rights rather than their duties, obligations and responsibilities.

Consequently, the percentage of labour cost to the total cost of production is very high. 6. Though trade unionism has been accepted and of workers is very high, it is unionion of

zation

developing

caste and linguistic basesSC

There are a good number

& ST Employees' Associations trying to assert

their to

rights in employment matters faster than due leading the formation of non-SC & ST CONCLUSIONS. nriplayees associations.

Industrial relations in India do not fall into any known pure pattern bipartit ism, voluntarism, or all they

tripartitism. the systems.

They exhibit the characteristics of Yet none can emphatically say that

are progressive and of the

conducive to achieve the objectives Each sector of the of and by the

industry and the economy.

industry industrial

has endeavoured to develop its own relations. Often one gets the

system feeling

impression that industrial relations ^re the exigencies managements nor and the need of the hour. the trade unions have

determined Neither any

direction.

47

The labour unions and the trade union movement is an obstacle to The the development labour of good

often

industrial has been a

relations.

entire

movement

direction less

and purposeless affair.

At its heart it of its

does not have the interests of the working class and the industry. own based on a It is yet to develop a philosophy of deep introspect ion.

And the government for is the more

responsible development

to create a conducive environment of good industrial relations

interested in retaining a control on labour and industry and lacks a political will and procedures. to change the existing fact, the

institutions

As a matter of

burden of evolving and developing a system of industrial relations industry with them suited to the changing e- ironment is an . and labour. the The managements must and their take the

along in

workers

organizations

develop ing

democratic

bipartite

industrial

relat ions

leading to productivity and prosperity.

48