Professional Documents
Culture Documents
1.
One of the significant theories of industrial labor relations was put forth by John
Dunlop in the 1950s. According to Dunlop industrial relations system consists of three
agents - management organizations, workers and formal/informal ways they are
organized and government agencies. These actors and their organizations are located
within an environment - defined in terms of technology, labor and product markets, and
the distribution of power in wider society as it impacts upon individuals and workplace.
Within this environment, actors interact with each other, negotiate and use
economic/political power in process of determining rules that constitute the output of the
industrial relations system. He proposed that three parties-employers, labor unions, and
government are the key actors in a modern industrial relations system. He also argued
that none of these institutions could act in an autonomous or independent fashion.
Instead they were shaped, at least to some extent, by their market, technological and
political contexts.Thus it can be said that industrial relations industrial relations is a
social sub system subject to three environmental constraints- the markets, distribution
of power in society and technology.
Dunlop's model identifies three key factors to be considered in conducting an analysis of
the management-labor relationship:
1. Environmental or external economic, technological, political, legal and social
forces that impact employment relationships.
2. Characteristics and interaction of the key actors in the employment relationship:
labor, management, and government.
3. Rules that are derived from these interactions that govern the employment
relationship.
Dunlop emphasizes the core idea of systems by saying that the arrangements in the
field of industrial relations may be regarded as a system in the sense that each of them
more or less intimately affects each of the others so that they constitute a group of
arrangements for dealing with certain matters and are collectively responsible for certain
results"..
In effect - Industrial relations is the system which produces the rules of the workplace.
Such rules are the product of interaction between three key "actors" - workers/unions,
employers and associated organizations and government. The Dunlop's model gives
great significance to external or environmental forces. In other words, management,
labor, and the government possess a shared ideology that defines their roles within the
relationship and provides stability to the system.
Gandhiji's Approach
2.
Mahatma Gandhis philosophy is based upon the "Sarvodoya" principles of truth,
non-violence and trusteeship, in which class harmony prevails. He considers trade
unions as essentially reformist organizations and economic institutions, which must be
organized on the basis of the assumption that capital and labour are not antagonistic
but are supplementary to each other. They should be a great family living in unity and
harmony capital not only looking to the material welfare of the labourers but their moral
welfare also- capitalists being trustees of the welfare of the labouring classes under
them" Gandhiji's view was that trade unions should not only undertake the functions
concerned with improving the economic conditions of workers, but must also try to raise
the moral and intellectual standards of labour and should bring about an all-round
development through internal efforts. They should also undertake programmes for
teaching supplementary occupations to their members so that uncertainty of
employment during a strike may be reduced to the minimum.
3.
The idea is to take from capital labour's due share and no more, and thls, not by
paralyzing capital but by reform among labourers from within and by their own selfconsciousness: not again through the cleverness of non-labour leaders, but by
educating labour to evolve its own leadership and its own self restraint, and its selfexisting organization. As a matter of fact, Gandhiji was never against strikes as such.
He had himself led some strikes in Ahmedabad and declared that a strike was an
Inherent right of the working men for the purpose of securing justice, but it must be
considered a crime immediately the capitalist accept the principle of arbitration.
(A) The causes of a stike must be just and only for redressal of genuine grievances,
strikes should be organized. He &d not want workers to resort to strikes for
unreasonable demands which the capitalist cannot meet without impairing the
production unit.
(B) There should be practical unanimity among the strikers
(C) Strikes should be peaceful and non-violent- i.e., the worker should refrain from
assaulting or abusing capitalist or their agents and avoid violence against the nonstrikers. Even damaging capitalist property is considered by Gandhi as violence.
(D) Workers should undertake stnkes only &er taking up alternative jobs for their living
during the strike period.
4.
(E) Workers should go on strike only after the capitalist failed to respond to moral
appeals and only as a last resort Gandhiji did not favour unions taking part in political
activities for two reasons. First, because the workers were not enlightened, and second,
because political parties exploited the workers for their own ends. He, however,
disapproved of strikes organized by workers doing essential services. He insisted that
such, strikes should be resorted to with a "fair notice" being given to the authorities and
& "every other legitimate means has been adopted and failed". Thus, it would be evident
that Gandhiji insisted that strikes should be undertaken only after adopting the
legitimate means of settling disputes. Gandhiji never advocated the agitational role of
labour. Gandhiji did not yield himself to Marxian concept of class struggle and he
advocated class-collaboration, mutual confidence and self-sacred heartedness as the
pillars of the relations between capital and labour. If workers are properly organized,
they have more wealth and resources through their own labour than the capitalist
through their money. Gandhiji was in favour of organizing trade unions. According to him
the thoughts and methods of western thinkers would fail to solve, the problems of our
country. The structure of the trade unions inevitably leaves its stamp on the character of
its member workers. The union should make labour the master of the means of
productions.
5.
GandhiJi suggested that the unions should expand its activities to increase the
welfare of the members. This will enhance their will power to participate more in the
working and functioning of trade unions. Gandhiji spelled out the duties of the trade
unions as:
(a) To make arrangement for educating both men and women. This is to be regularly
undertaken through night schools.
(b) Children of the labourers should be educated.
(c) There should be a hospital and creche and a matem~ty home attached to every
centre
(d) Labour should be able to support itself during the strikes. GandhiJi advised the
workers that while forming their unions, they must select their cpresentat~vcs carefully.
6.
MARXIST APPROACH
Marxists like pluralists also regard conflict as
inevitable but see it as a product of capitalistic society where as pluralist believe that the
conflict is inevitable in all organizations For Marxists IR has wider meaning. For them
conflict arises not because of rift between management and workers but because of the
division in the society between those who own resources and those who have only labor
to offer.Marxist approach thus focuses on the type of society in which an organization
functions.Industrial conflict is thus equated with political and social unrest. Trade Unions
are seen both as labor reaction to exploitation by capitalists, as- well-as a weapon to
bring about a revolutionary social change. Wage related disputes as secondary. For
them all strikes are political and they regard state intervention (via legislations and
creation of Industrial Tribunals) as supporting managements interests, rather than
ensuring a balance between the competing groups.
Secure fair wages for workers and improve their opportunities for promotion and
training.
Promote individual and collective welfare and thus correlate the workers'
interests with that of their industry.
8.
The Act deals with the registration of trade unions, their rights, their liabilities and
responsibilities as well as ensures that their funds are utilised properly. It gives legal and
corporate status to the registered trade unions. It also seeks to protect them from civil or
criminal prosecution so that they could carry on their legitimate activities for the benefit
of the working class. The Act is applicable not only to the union of workers but also to
the association of employers. It extends to whole of India. Also, certain Acts,
namely, the Societies Registration Act, 1860; the Co-operative Societies Act, 1912;
and the Companies Act, 1956 shall not apply to any registered trade union, and that
the registration of any such trade union under any such Act shall be void.
9.
Definition. According to the Trade Unions Act,1926, 'trade union' means
"any combination, whether temporary or permanent, formed primarily for the
purpose of regulating the relations between workmen and employers or between
workmen and workmen or between employers and employers, or
for imposing restrictive conditions on the conduct of any trade or business,
and includes any federation of two or more trade unions".
10.
Thus, technically, there can be union of employers also, though, almost
universally, the term trade union is associated with union of workmen or employees.
Who can form TU and how
11.
The Act provides for the registration of the trade unions with the 'Registrars of
Trade Unions' set up in different States, like the Office of Registrar (Trade
Union) set up by the Government of National Capital Territory of Delhi. For
registration of a trade union, seven or more members of the union can submit
their application in the prescribed form to the Registrar of trade unions. The
application shall be accompanied by a copy of the 'rules of the trade union' and a
statement giving the following particulars:(i) Names, occupations and addresses of the members making the
application;
(ii)The name of the trade union and the address of its head office;
(iii) The titles, names, ages, addresses and occupations of the office
bearers of the trade union as per the format given in the Trade Unions
Act 1926.
12.
Registration The Registrar, on being satisfied that the Union has complied with
all the requirements of this Act, shall register the trade union. Thereafter, it shall issue a
certificate of registration in the prescribed form as a conclusive evidence of registration
of that trade Union.
13.
The registered trade unions (workers & employers) are required to submit annual
statutory returns to the Registrar regarding their membership, general funds, sources of
income and items of expenditure and details of their assets and liabilities.
14.
The general funds of a registered trade union shall not be spent on any
other objects than those specified in the Act. Also, a registered trade union may
constitute a separate fund, from contributions separately levied for or made to
that fund, for the promotion of the civic and political interest of its members. No
member shall be compelled to contribute to such fund and a member who does
not contribute to the said fund shall not be excluded from any benefits of the
trade union, or placed in any respect either directly or indirectly under any
of
(c)
No suit or other legal proceeding shall be maintainable in any civil
court against any registered trade union or any office-bearer or member
thereof in respect of any act done in contemplation or furtherance of a
trade dispute to which a member of the trade union is a party on the
ground only that such an act induces some other person to break a
contract of employment, or that it is in interference with the trade, business
or employment of some other person or with the right of some other
person to dispose of his capital of his labour as he wills.
(d)
A person shall be disqualified for being chosen as, and for being a
member of, the executive or any other office-bearer or registered trade
union if(i) he has not attained the age of eighteen years;
(ii) he has been
convicted by a court in India of any offence
involving moral turpitude and sentenced to imprisonment,
unless a period of five years has elapsed since his release.
(e)
Any two or more registered trade unions may become amalgamated
together as one trade union with or without the dissolution or division of
the funds of such trade unions or any of them, provided that the votes of at
least one-half of the members of each or every such trade union entitled to
vote are recorded, and that at least sixty percent of the votes recorded are
in favour of the proposal. Such an amalgamation shall not prejudice any
right of any such unions or any right of a creditor or any of them.
16.
A registered trade union of workmen shall at all times continue to have not
less than 10% or 100 of the workmen, whichever is less, subject to a
minimum of 7 persons engaged or employed in the establishment or
industry with which it is connected, as its members.
All office bearers of a registered trade union, except not more than onethird of the total number of office bearers or five, whichever is less, shall be
persons actually engaged or employed in the establishment or industry
with which the trade union is connected.
The employees who have been retired or have been retrenched shall not be
construed as outsiders for the purpose of holding an office in the trade
union concerned.
For the promotion of civic and political interest of its members, unions are
authorized to set up separate political funds.
17.
Trade dispute means any dispute between workmen and employers or between
workmen and workmen, or between employers and employers. However, it should be
connected with employment or non-employment, or the conditions of labour, of any
person.
18.
Workman means all persons employed in trade or industry, whether or not in
the employment of the employer with whom the trade dispute arises. [section 2(g)].
19.
Registration and Recognition. Registration does not mean recognition
Registration and
recognition
of
Union
by an
employer are
independent
issues. Registration of Trade Union with Registrar has nothing to do with its recognition
in a particular factory/company. Recognition of Trade Union is generally a matter of
agreement between employer and trade union. In States like Maharashtra and Madhya
Pradesh, there are specific legal provisions for recognition of a trade union.
20.
The election: The election is held within 30 to 60 days after the NLRB (national
labour relations board)issues its decision and direction of Election. The election is by
secret ballot; the NLRB provides the ballots; voting booth, and ballot box and counts the
votes and certifies the results. The union becomes the employees representative if it
wins the election, and winning means getting a majority of the votes cast, not a
majority of the total workers in the bargaining unit. Also keep in mind that if an
employer commits an unfair labor practice the NLRB may reverse a no union election.
As representative of their employer, supervisors must therefore be careful not to commit
unfair practices. Several things influence whether the union wins the certification
election. Unions have a higher probability of success in geographic areas with a higher
percentage of union workers, in part because union employees enjoy higher wages and
benefits. High unemployment seems to lead to poorer results for the union, perhaps
because employees fear that unionization efforts might result in reduced job
secriuty. Unions usually carefully pick the size of their bargaining unit (all
Criticism of Trade Unions Lack of education makes the workers narrow-minded, and
prevents them from taking long-term views. Thus, anything, which does not result in an
immediate reward, becomes unattractive to them. This attitude is responsible for many
strikes and lock-outs in industrial concerns. Trade unions may not
welcome rationalisation and improved methods of production for the fear that some of
the workers will be put out of work. Therefore, they resort to go slow policy that retards
industrial progress. When labour unions strike because of illogical grounds, incalculable
losses occur to producers, community and the nation. These are harmful to the workers
also. They suffer because of the loss of wages. They create artificial scarcity of labour
by demanding that only union personnel should be employed. By undue insistence on
the payment of standard rates of wages, they have only leveled down the earnings of
the efficient workers.
24.
Industrial disputes are the disputes which arise due to any disagreement in
an industrial relation. The term 'industrial relation' involves various aspects of
interactions between the employer and the employees; among the employees as
well as between the employers. In such relations whenever there is a clash of
interest, it may result in dissatisfaction for either of the parties involved and
hence lead to industrial disputes or conflicts. These disputes may take various
forms such as protests, strikes, demonstrations, lock-outs, retrenchment,
dismissal of workers, etc.
25.
Demand for good and safer working conditions, including length of a working day,
the interval and frequency of leisure and physical work environment.
Demand for improved labour welfare and other benefits. For example, adequate
canteen, rest, recreation and accommodation facility, arrangements for travel to
and from distant places,etc.
26.
In India, the Industrial Disputes Act, 1947 is the main legislation for
investigation and settlement of all industrial disputes. The Act enumerates the
contingencies when a strike or lock-out can be lawfully resorted to, when they
can be declared illegal or unlawful, conditions for laying off, retrenching,
discharging or dismissing a workman, circumstances under which an industrial
unit can be closed down and several other matters related to industrial
employees and employers.
27.
Govt Role in IR
The Act is administered by the Ministry of Labour through
its Industrial Relations Division. The Division is concerned with improving the
institutional framework for dispute settlement and amending labour laws relating to
industrial relations. It works in close co-ordination with the Central Industrial Relations
Machinery (CIRM) in an effort to ensure that the country gets a stable, dignified and
efficient workforce, free from exploitation and capable of generating higher levels of
output. The CIRM, which is an attached office of the Ministry of Labour, is also known as
the Chief Labour Commissioner (Central) [CLC(C)] Organisation. The CIRM is
headed by the Chief Labour Commissioner (Central). It has been entrusted with the task
of maintaining industrial relations, enforcement of labour laws and verification of trade
union membership in central sphere. It ensures harmonious industrial relations through:-
28.
Definition According to the Act, the term 'industrial dispute' means "any
dispute or difference between employers and employers, or between employers
and workmen, or between workmen and workmen, which is connected with the
employment or non-employment, or the terms of employment or with the
conditions of labour, of any person". The basic objectives of the Act are:
To provide a suitable machinery for the just, equitable and peaceful settlement of
industrial disputes.
To promote measures for securing and preserving amity and good relations
between employers and employees.
29.
"industrial establishment or undertaking" means an establishment or
undertaking in which any industry is carried on:
30.
Industry - Section 2(j) of the Industrial Disputes Act, 1947, as any business,
trade, undertaking, manufacture, calling of employers, and includes any calling, service,
employment, handicraft, industrial occupation or avocation of workmen. The first part
says that industry means any business, trade, undertaking, manufacture or calling of
employers and the second part of the definition of industry says that it includes any
calling, service, employment, handicraft, or industrial occupation or avocation of
workmen.
31.
Dispute
Resolution Machinery by Govt. Under the Act, a statutory
machinery has been constituted for conciliation and adjudication of industrial
disputes. It includes:
industrial disputes. He/ she may be appointed for a specified area, or for
specified industries in a specified area, or for one or more specified
industries, either permanently or for a limited period. It is the duty of these
officers to bring both the employees and employers together and help them
to resolve their differences. If the dispute is settled, he/ she shall send a
report, to that effect, to the appropriate Government.
Government.
32.
No reference can be made under the Act to Conciliation Boards, Labour Courts
or Industrial Tribunals, unless the dispute has first been the subject of a decision of a
Grievance Settlement Authority.
33.
Accordingly, Central Government Industrial Tribunals (CGITs) -cum- Labour
Courts have been set up in different parts of the country. There are at present 17
CGITsto whom industrial disputes could be referred for adjudication. Out of these
CGITs, 2 CGITs namely Mumbai-I and Kolkata have been declared as National
Industrial Tribunals.
34.
Besides, the Organization of the Chief Labour Commissioner( Central) acts
as the primary conciliatory agency in the Central Government for industrial disputes.
There are the Regional Labour Commissioners (Central) and Assistant Labour
Commissioners (Central) who on behalf of the Chief Labour Commissioner (Central)
act as Conciliatory Officers in different parts of the country.
35.
Definition of Retrenchment.
"retrenchment means the termination by the
employer of the service of a workman for any reason whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action, but does not include
(a) voluntary retirement of the workman; or
(b) retirement of the workman on reaching the age of superannuation if the
contract of employment between the employer and the workman concerned
contains a stipulation in that behalf; or
(c) termination of the service of the workman as a result of the non-renewal of the
contract of employment between the employer and the workman concerned on
its expiry or of such contract being terminated under a stipulation in that behalf
contained therein; or]
(d) termination of the service of a workman on the ground of continued ill-health;]
36.
Definitions
37.
Settlement.
"settlement" means a settlement arrived at in the course of
conciliation proceeding and includes a written agreement between the employer and
workmen arrived at otherwise than in the course of conciliation proceeding where such
agreement has been signed by the parties thereto in such manner as may be
prescribed and a copy thereof has been sent to 1*[an officer authorised in this behalf by]
the appropriate Government and the conciliation officer;]
38.
Strike.
"strike" means a cessation of work by a body of persons employed
in any industry acting in combination or a concerted refusal, or a refusal under a
common understanding, of any number of persons who are or have been so employed
to continue to work or to accept employment;
39.
"trade union" means a trade union registered under the Trade Unions Act, 1926
(16 of 1926);]
40.
"Tribunal" means an Industrial Tribunal constituted under section 7A and includes
an Industrial Tribunal constituted before the 10th day of March, 1957, under this Act;]
41.
"unfair labour practice" means any of the practices specified in the Fifth
Schedule;
42.
"wages" means all remuneration capable of being expressed in terms of money,
which would, if the terms of employment, expressed or implied, were fulfilled, be
payable to a workman in respect of his employment or of work done in such
employment, and includes
(i) such allowances (including dearness allowance) as the workman is for the time being
entitled to;
(ii) the value of any house accommodation, or of supply of light, water, medical
attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles;
(iii) any travelling concession;
*[(iv) any commission payable on the promotion of sales or business or both;] but does
not include-- (a) any bonus; (b) any contribution paid or payable by the employer to any
pension fund or provident fund or for the benefit of the workman under any law for the
time being in force; (c) any gratuity payable on the termination of his service;]
43.
"workman" means any person (including an apprentice) employed in any industry
to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work
for hire or reward, whether the terms of employment be express or implied, and for the
purposes of any proceeding under this Act in relation to an industrial dispute, includes
any such person who has been dismissed, discharged or retrenched in connection with,
or as a consequence of, that dispute, or whose dismissal, dischasrge or retrenchment
has led to that dispute, but does not include any such person
-- (i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950
(46 of 1950), or the Navy Act, 1957 (62 of 1957); or
(ii) who is employed in the police service or as an officer or other employee of a
prison; or (iii) who is employed mainly in a managerial or administrative capacity;
or
(iv) who, being employed in a supervisory capacity, draws wages exceeding one
thousand six hundred rupees per mensem or exercises, either by the nature
of the duties attached to the office or by reason of the powers vested in him,
functions mainly of a managerial nature.
44.
Dismissal, etc., of an individual workman to be deemed to be an industrial
dispute. Where any employer discharges, dismisses, retrenches, or otherwise
terminates the services of an individual workman, any dispute or difference between
that workman and his employer connected with, or arising out of, such discharge,
dismissal, retrenchment or termination shall be deemed to be an industrial dispute
notwithstanding that no other workman nor any union of workmen is a party to the
dispute.
45.
Works Committee.- (1) In the case of any industrial establishment in which one
hundred or more workmen are employed or have been employed on any day in the
preceding twelve months, the appropriate Government may by general or special order
require the employer to constitute in the prescribed manner a Works Committee
consisting of representatives of employers and workmen engaged in the establishment
so however that the number of representatives of workmen on the Committee shall
not be less than the number of representatives of the prescribed manner from
among the workmen engaged in the establishment and in consultation with their
trade union, if any, registered under the Indian Trade Unions Act, 1926 (16 of
1926). (2) It shall be the duty of the Works Committee to promote measures for securing
and preserving amity and good relations between the employer and workmen and, to
that end, to comment upon matters of their common interest or concern and endeavour
to compose any material difference of opinion in respect of such matters.
46.
Notice of change.- No employer, who proposes to effect any change in the
conditions of service applicable to any workman in respect of any matter specified in the
Fourth Schedule, shall effect such change,-- (a) without giving to the workmen likely to
be affected by such change a notice in the prescribed manner of the nature of the
change proposed to be effected; or
47.
within twenty-one days of giving such notice: Provided that no notice shall be
required for effecting any such change-- (a) where the change is effected in pursuance
of any 1*[settlement or award]; or (b) where the workmen likely to be affected by the
change are persons to whom the Fundamental and Supplementary Rules, Civil
Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service)
Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence Services
(Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or
any other rules or regulations that may be notified in this behalf by the appropriate
Government in the Official Gazette, apply.
Chapter 3- ID Act
9C. Setting up of Grievance Settlement Authorities and reference of certain
individual disputes to such authorities.
(1) Where any industrial dispute exists or is apprehended and the employer and the
workmen agree to refer the dispute to arbitration, they may, at any time before the
dispute has been referred under section 10 to a Labour Court or Tribunal or National
Tribunal, by a written agreement, refer the dispute to arbitration
4*[(1A) Where an arbitration agreement provides for a reference of the dispute to an
even number of arbitrators, the agreement shall provide for the appointment of another
person as umpire who shall enter upon the reference, if the arbitrators are equally
divided in their opinion, and the award of the umpire shall prevail and shall be deemed
to be the arbitration award for the purposes of this Act.
(3) Every Board, Court, 1*[Labour Court, Tribunal and National Tribunal] shall have the
same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (5
of 1908), when trying a suit, in respect of the following matters, namely:-(a) enforcing the attendance of any person and examining him on oath;
(b) compelling the production of documents and material objects;
(c) issuing commissions for the examination of witnesses;
(d) in respect of such other matters as may be prescribed; and every inquiry or
investigation by a Board, Court, 2*[Labour Court, Tribunal or National Tribunal], shall be
deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the
Indian Penal Code (45 of 1860).
(4) A conciliation officer 3*[may enforce the attendance of any person for the purpose of
examination of such person or call for] and inspect any document which he has ground
for considering to be relevant to the industrial dispute 4*[or to be necessary for the
purpose of verifying the implementation of any award or carrying out any other duty
imposed on him under this Act, and for the aforesaid purposes, the conciliation officer
shall have the same powers as are vested in a Civil Court under the Code of Civil
Procedure, 1908 (5 of 1908), 3*[in respect of enforcing the attendance of any person
and examining him or of compelling the production of documents].
5*[(5) A Court, Labour Court, Tribunal or National Tribunal may, if it so thinks fit, appoint
one or more persons having special knowledge of the matter under consideration as
assessor or assessors to advise it in the proceeding before it.
(6) 4*[11A. Powers of Labour Courts, Tribunals and National Tribunals to give
appropriate relief in case of discharge or dismissal of workmen.- Where an industrial
dispute relating to the discharge or dismissal of a workman has been referred to a
Labour Court, Tribunal or National Tribunal for adjudication and, in the course of the
adjudication proceedings, the Labour Court, Tribunal or National Tribunal, as the case
may be, is satisfied that the order of discharge or dismissal was not justified, it may, by
its award, set aside the order of discharge or dismissal and direct reinstatement of the
workman on such terms and conditions, if any, as it thinks fit, or give such other relief to
the workman including the award of any lesser punishment in lieu of discharge or
dismissal as the circumstances of the case may require: Provided that in any
proceeding under this section the Labour Court, Tribunal or National Tribunal, as the
case may be, shall rely only on the materials on record and shall not take any fresh
evidence in relation to the matter.]
12 (5) If, on a consideration of the report reconciliation officer, the appropriate
Government is satisfied that there is a case for reference to a Board, 2*[Labour Court,
Tribunal or National Tribunal,] it may make such reference. Where the appropriate
Government does not make such a reference it shall record and communicate to the
parties concerned its reasons therefor.
(6) A report under this section shall be submitted within fourteen days of the
commencement of the conciliation proceedings or within such shorter period as may be
fixed by the appropriate Government: the time for the submission of the report may be
extended by such period as may be agreed upon in writing by all the parties to the
dispute.]
(5) The Board shall submit its report under this section within two months of the date,
1*[on which the dispute was referred to it. The appropriate Government may from time
to time extend the time for the submission of the report by such further periods not
exceeding two months in the aggregate: Provided further that the time for the
submission of the report 22 may be extended by such period as may be agreed on in
writing by all the parties to the dispute.
Duties of Courts. 14. Duties of Courts.- A Court shall inquire into the matters referred to
it and report thereon to the appropriate Government ordinarily within a period of six
months from the commencement of its inquiry.
Duties of Labour Courts, Tribunals and National Tribunals. Where an industrial dispute
has been referred to a Labour Court, Tribunal or National Tribunal for adjudication, it
shall hold its proceedings expeditiously and shall, within the period specified in the order
referring such industrial dispute or the further period extended, submit its award to the
appropriate Government.
(a) for a period of one year, if the workman, during a period of twelve
calendar monthspreceding the date with reference to which calculation is
to be made, has actually worked under the employer for not less than
-- (i) one hundred and ninety days in the case of a workman
employed below ground in a mine; and
(ii) two hundred and forty days, in any other case;
(b) for a period of six months, if the workman, during a period of six
calendar months preceding the date with reference to which calculation is
to be made, has actually worked under the employer for not less than
(i) ninety-five days, in the case of a workman employed below
ground in a mine; and
(ii) one hundred and twenty days, in any other case.
Explanation.--For the purposes of clause (2), the number of days on which
a workman has actually worked under an employer shall include the days
on which
(i) he has been laid-off under an agreement or as permitted by standing
orders made under the Industrial Employment (Standing Orders) Act, 1946
(20 of 1946), or under this Act or under any other law applicable to the
industrial esta tablishment;
(ii) he has been on leave with full wages, earned in the previous years;
(iii) he has been absent due to temporary disablement caused by accident
arising out of and in the course of his employment; and
(iv) in the case of a female, she has been on maternity leave; so, however,
that the total period of such maternity leave does not exceed twelve
weeks.]
25C. Right of workmen laid-off for compensation. 1*[25C. Right of workmen
laid-off for compensation.- Whenever a workman (other than a badli
workman or a casual workman) whose name is borne on the muster rolls of
an industrial establishment and who has completed not less than one year
of continuous service under an employer is laid-off, whether continuously
or intermittently, he shall be paid by the employer for all days during which
he is so laid-off, except for such weekly holidays as may intervene,
compensation which shall be equal to fifty per cent. of the total of the basic
wages and dearness allowance that would have been payable to him had
he not been so laid-off: Provided that if during any period of twelve
months, a workman is so laid-off for more than forty-five days, no such
compensation shall be payable in respect of any period of the lay-off after
the expiry of the first forty-five days, if there is an agreement to that effect
between the workman and the employer:
Rest in ID act chap 5
Explanation.--"Badli workman" means a workman who is employed in an
industrial establishment in the place of another workman whose name is
borne on the muster rolls of the establishment, but shall cease to be
regarded as such for the purposes of this section, if he has completed one
year of continuous service in the establishment.]
25F. Conditions precedent to retrenchment of workmen.No workman employed in any industry who has been in continuous service for
not less than one year under an employer shall be retrenched by that employer
until
(a) the workman has been given one month's notice in writing indicating
the reasons for retrenchment and the period of notice has expired, or the
workman has been paid in lieu of such notice, wages for the period of the notice:
176 1* * * * * (b) the workman has been paid, at the time of retrenchment,
compensation which shall be equivalent to fifteen days' average pay 2*[for every
completed year of continuous service] or any part thereof in excess of six
months; and
(c) notice in the prescribed manner is served on the appropriate Government
3*[or such authority as may be specified by the appropriate Government by
notification in the Official Gazette].
25FF Sixty days' notice to be given of intention to close down anyundertaking.
1*[25FFA. Sixty days' notice to be given of intention to close down any undertaking.
- (1) An employer who intends to close down an undertaking shall serve, at least
sixty days before the date on which the intended closure is to become effective, a
notice, in the prescribed manner, on the appropriate Government stating clearly the
reasons for the intended closure of the undertaking: Provided that nothing in this section
shall apply to-- (a) an undertaking in which-- (i) less than fifty workmen are employed, or
(ii) less than fifty workmen were employed on an average per working day in the
preceding twelve months, (b) an undertaking set up for the construction of buildings,
bridges, roads, canals, dams or for other construction work or project. (2)
Notwithstanding anything contained in sub-section (1), the appropriate Government
may, if it is satisfied that owing to such exceptional circumstances as accident in the
undertaking or death of the employer or the like it is necessary so to do, by order, direct
that provisions of sub-section (1) shall not apply in relation to such undertaking for such
period as may be specified in the order.]
25G. Procedure for retrenchment. 25G. Procedure for retrenchment.- Where any
workman in an industrial establishment, who is a citizen of India, is to be retrenched and
25L. Definitions.- For the purposes of this Chapter,-(a) "industrial establishment" means-- (i) a factory as defined in clause (m) of
section 2 of the Factories Act, 1948 (63 of 1948);
(ii) a mine as defined in clause (i) of sub- section (1) of section 2 of the Mines
Act, 1952 (35 of 1952); or
(iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour Act,
1951 (69 of 1951);
Prohibition of lay-off. 25M. Prohibition of lay-off.- (1) No workman (other than a badli
workman or a casual workman) whose name is borne on the muster rolls of an industrial
establishment to which this Chapter applies shall be laid-off by his employer except
1*[with the prior permission of the appropriate Government or such authority as may be
specified by that Government by notification in the Official Gazette (hereinafter in this
section referred to as the specified authority), obtained on an application made in this
behalf, unless such lay-off is due to shortage of power or to natural calamity, and in the
case of a mine, such lay-off is due also to fire, flood, excess of inflammable gas or
explosion]. 1*[(2) An application for permission under sub-section (1) shall be made by
the employer in the prescribed manner stating clearly the reasons for the intended layoff and a copy of such application shall also be served simultaneously on the workmen
concerned in the prescribed manner. (3) Where the workman (other than badli workmen
or casual workmen) of an industrial establishment, being a mine, have been laid- off
under sub-section (1) for reasons of fire, flood or excess of inflammable gas or
explosion, the employer, in relation to such establishment, shall, within a period of thirty
days from the date of commencement of such lay-off, apply, in the prescribed manner,
to the appropriate Government or the specified authority for permission to continue the
lay-off.
Grievance procedure
Grievant
Management
Stage-I
Grievant- conveys viability.
Not satisfied go to
Stage-II
Grievant & Departmental representatives
Decision Unsatisfactory
Stage-III
Grievant and Departmental representatives
Stage- IV
No agreement
Stage-V
Grievant management may refer
To union.
Under this approach every employee is looked upon as a resource to the employer and
that the human resource is the most important factor of production. This resource has to
be trained, motivated and brought up to the level of efficiency required by the
organisation.
Indiscipline on the part of workers is due to (a) failure of the training and motivating
system and (b) the individuals own failure to measure up to the requirements of
conduct prescribed as the prevailing norm in the organisation. In the latter case, it is
violation of the prevailing norm.
The disciplinary authority has to look into two objectives of the disciplinary process: (a)
Is the violation so serious as to jeopardise the functioning of the organisation, if the
offender is allowed to continue? (b) Can the offender be reformed by disciplinary action?
In this context, extreme form of penalty like discharge or dismissal will be rarely resorted
to, as the offending human resource will have to be trained and motivated to work within
the requirements of the organisations norm of behaviour.
This approach would naturally attach a good deal of importance to discipline being more
a matter of self-control or self-discipline than a matter of external control.
Group Discipline Approach
If the organisation has well-established norms of conduct, it should try to involve groups
of employees in the process of discipline.
If the management succeeds in making the group accept the organisations norms as
their norms, by virtue of such involvement, then the main function of discipline will be a
delegated function than a management task.
The group as a whole can control an individual worker who is its member much more
effectively than the management can through penalties.
Leadership Approach
Every manager has to develop a leadership quality as he has to guide, control, train,
develop and lead a group of men and act as a leader whatever may be his position in
the organisational hierarchy.
He can administer discipline among the men, whose work is under his direct
supervision, much more than even the top management can. He has a day-to-day
relationship with his men and the worker listens to him. Again they would listen to him all
the more if his own behaviour is disciplined.
Minor Penalties Is a mild form of disciplinary action. This punishment is generally given
for some minor offences. The type of penalties are set below in the ascending order of
their severity.
(a) Oral Reprimand: This is the mildest form of disciplinary action. The issue of
reprimand does not involve loss of status or wages. As people (subordinates) invariably
value the social approval of their actions by their superiors and fellow beings a
reprimand is generally effective in correcting subordinates. Oral reprimand should be
used sparingly; otherwise it will not produce any effect on the subordinate.
(b) Written Reprimand: When oral reprimand proves to be ineffective and the worker
continues with the misconduct, it becomes necessary to issue a written reprimand and
to bring into record the misconduct. A written reprimand may state that certain privileges
would be withheld or withdrawn if the subordinate continues with his present conduct.
(c) Loss of Privileges: For such offences as tardiness or leaving work without
permission, the employee may be put to loss of various privileges such as good job
assignments, right to select machine or other equipment and freedom of movement
about the workplace or company.
(d) Fines: Means a deduction from the remuneration of the employee by way of
punishment.
(e) Punitive Suspension: Punitive suspension is inflicted on the workman as a
punishment for some misconduct. Under punitive suspension an employee is prohibited
from performing the duties assigned to him and his wages are withheld for so long as
the prohibition subsists.
Major Punishments It is a severe form of disciplinary action initiated against the
workmen. It is given for some major offences. The various forms of major punishments
are given below.
(a) Withholding of Increments: Withholding of annual increment of an employee in a
graded scale is a major punishment. The cumulative effect of losing an increment is
considerable. It is equal to The amount of increment 12 the number of years of
service still remaining.
(b) Demotion: Demotion implies condemnation of the employee as being unfit for the
position occupied by him. It should not be used as a penalty if the employee is properly
qualified for the present assignment. Demotion should be used only in a case where an
employee does not meet present job requirement.
(c) Discharge: The term discharge is used to denote removal of an employee from
service by way of punishment. But no stigma is attached to the expression discharge.
Hence, it is not a disqualification for future employment.
(d) Dismissal: Also referred to as industrial capital punishment, dismissal is the ultimate
penalty which is rarely resorted to nowadays. Though discharge and dismissal both
have the same result, i.e., termination of service of the employee, dismissal is a more
severe punishment. There is a stigma attached to the expression dismissal which
makes it a disqualification for future employment.
Procedure for Taking Disciplinary Action The following should be the steps for taking
disciplinary action:
(a) Preliminary Investigation The first step should be to hold preliminary investigation in
order to find out whether a prima facie case of misconduct exists. Only if a prime facie
case of misconduct exists, the management should proceed further. Otherwise, the
case should be dropped.
(b) Issue of a Charge Sheet If a prima facie case of misconduct exists, the management
should proceed to issue a charge-sheet to the worker. The following guidelines may be
followed in framing the charges:
Each charge must be very clear and precise.
There should be a separate charge for each allegation.
Charges must not relate to any matter which has already been decided upon
Proposed punishment should be avoided in the charge sheet.
(c) Suspension Pending Enquiry (if needed) If the nature of misconduct is grave
and if it is in the interest of discipline and security in the establishment, the management
may suspend a worker even before the charge-sheet is issued. In case the worker is
suspended he should be paid subsistence allowance at the following rates For the first
90 days of suspension, half his wages For the remaining period of suspension, threefourths of his wages
(d) Notice of Enquiry On receipt of reply to the chargesheet, either of the
following two situations may arise: (i) The worker may admit the charge. In such a case,
the employer may award punishment without further enquiry. (ii) The worker may deny
the charge. In this case, the employer must hold enquiry
(e) Conduct the Enquiry The enquiry officer is a judge, so it is necessary that he
must be impartial and qualified to act in that capacity. A fair opportunity should be given
to the chargesheeted employee to examine the management witnesses.
(f) Recording of Findings by the Enquiry Officer At the conclusion of the enquiry
proceedings the enquiry officer should decide as to whether the charges made are valid
or not alongwith reasons for his findings.
(g) Awarding Punishment The punishment awarded to the accused employee
should be communicated to him quickly. The letter should contain the following
Reference to (i) the chargesheet, (ii) the enquiry, (iii) findings of the enquiry Decision
Date from which the punishment is to be effective.
Essentials of a good disciplinary system
Whenever employees go against the pre-determined rules and regulations and commit
serious mistakes or create serious problems to the organization and its interests, the
employees misconduct should not be condoned since it amounts to the encouragement
of misconduct which ultimately leads to serious repercussions on the morale of the
organization and its discipline. At the same time, the HR manager should also
endeavour to develop self-discipline on the part of the employee. The HR manager has
to follow certain principles for effective discipline. They are:
(a) He must be interested in the welfare of each employee.
(b) He must view discipline as a corrective measure.
(c) He must NOT take disciplinary action unless it is a must.
(d) He must NOT administer discipline on a routine basis.
(e) He must give a fair chance to the worker to defend himself.
(f) He must maintain consistency in disciplinary action. (ie., he must not show
favouritism)
(g) He must admit his mistakes willingly.
(h) After taking disciplinary action, the HR manager must resume normal
behaviour and attitude towards the employee.
The phrase collective bargaining was coined by Sydney and Beatric Webb. According
to them collective bargaining is a method by which trade unions protect and improve the
conditions of their members working lives. Collective bargaining is a process in which
the representatives of the employer and of the employees meet and attempt to
(a) Weak Unions Collective bargaining process mainly depends on the strength of
unions. Indian unions are marked with multiplicity, inter and intra-union rivalry, weak
financial position and nonrecognition. Weak trade unions cannot initiate strong
arguments during negotiations.
(b) Problems from Government The Government has not been making any strong
effects for the development of collective bargaining. The regulatory framework covering
the industrial relations scene is quite tight, leaving very little room for bargaining to
flourish on a voluntary basis.
(c) Legal Problems Now adjudication is easily accessible. No attempt has been made
by the Government to rationalise or simplify the multifarious laws covering labour
management relations.
(d) Attitude of Management Employers have failed to read the writing on the wall. They
do not appreciate the fact that unions have come to stay with almost equal bargaining
strength. Such negative attitudes have come in the way of negotiating with unions
voluntarily.
(e) Employers Uncertainty about Who is the Recognised Bargaining Agent Employers
are often not very sure about who is the recognised bargaining agent. When there are
multiple unions, bargaining with one union may prove to be a tough battle.
(f) Statutory Fixation of Conditions of Work Areas of collective bargaining have not
grown in view of the encouragement given to wage boards, pay commissions, statutory
fixation of other conditions of work and social security
(g) Political Interference Almost all unions are associated with some political party or the
other. The political parties interfere in the smooth functioning of the union.
Grievance
The satisfaction desired by employee may be economic, social, and psychological. 1.
Grievance is any dissatisfaction or feeling of injustice in connection with ones
employment situation that is brought to the attention of management.
2. The features of grievance are
A grievance refers to any form of discontent or dissatisfaction with any aspect of
the organisation.
The dissatisfaction must arise out of employment and not from personal or
family problems.
Step III: If the employee is not satisfied with the answer, he can approach Grievance
Committee which shall evaluate the case and make its recommendations to
management within seven days of presentation of the case.
Step IV If the committee fails to take decision within the stipulated period the employee
is not satisfied with the decision he can make an appeal for revision to management.
Step V: If the employee is unsatisfied with the managements decision, union and
management may refer the grievance to voluntary arbitration within a week of the
receipt of managements decision by the aggrieved employee.
Seven main causes responsible for growth of rationalisation in Indian industries
are:
(1) to increase the volume of exports (2) old and obsolete machinery (3) traditional
methods of production (4) uneconomic units (5) to provide employment opportunities (6)
lesser labour productivity and (7) improvements in the quality!
(1) To Increase The Volume Of Exports:
For earning more foreign exchange and ensuring favourable balance of payments,
exports have to be increased.
For increasing exports, higher production is needed. Rationalisation becomes
instrumental in increasing production.
(2) Old and Obsolete Machinery:
The plant and machinery used in many industries like sugar, jute and cotton etc., have
become outmoded and obsolete. This has increased the overhead and maintenance
costs and resulted in low productivity. The use of rationalisation techniques like
moderanisation etc., have to be made for-replacing the worn out plant and machinery.
(3) Traditional Methods of Production:
Most of the industries in India are still following the traditional and out of date methods
and processes of production. Latest techniques and innovations have to be introduced
in order to increase the productivity of these industries.
(4) Uneconomic Units:
Many industrial units in India are operating below their optimum capacity. For example
sugar factories are operating below the size of 800 tons of crushing capacity per day,
paper mills below the size of 8,000 tons per annum and cement factories below 1.5
Lakh tons per annum. Rationalisation can bring about a considerable increase in their
production capacity.
(5) To Provide Employment Opportunities:
Rationalisation in the short run leads to unemployment, but in the long run (on account
of increased demand and higher production of goods and services) new units have to
be established. This is helpful in creating new employment opportunities. Measures of
rationalisation are very helpful in reducing the cost of production and increasing the
productivity.
(6) Lesser Labour Productivity:
Labour productivity in India is far below as compared to advanced countries like the
U.S.A., Japan and England. Measures like standardisation and specialisation are
immensely helpful in increasing the efficiency and productivity of labour ensuring higher
wages and increased standard of living to workers.
(7) Improvements in the Quality:
Rationalisation plays a significant role in improving the quality of the products by
introducing improvements in designs and different production processes. Constant
research and experimentation can be undertaken under rationalisation.
The new techniques and methods developed are of utmost significance in achieving
desired quality of products. Quality of articles like tea, sugar, cement, textile products
etc., can be improved by adopting the latest techniques and innovations.
The model agreement developed in 1957 laid down the following principles in
relation to rationalisation:
(1) There should be no retrenchment of employees and the workers unions should be
given prior notice of the scheme of rationalisation involving the retrenchment of
employees.
(2) The benefits of rationalisation should be equitably shared by the employer, the
employees and the society.
(3) The workload should be properly assessed by experts mutually agreed upon by the
employers and the employees. The schemes of rationalisation should ensure proper
working conditions to workers.
(4) The disputes arising on account of the schemes of rationalisation should be referred
to arbitration.
Besides this many other measures were also undertaken to popularise the schemes of
rationalisation like the formation of The National Commission on Labour 1969, Sugar
Industry Development Council etc.
The Government of India has laid down various provisions with regard to application of
the measures of rationalisation under the Industrial Development and Regulation Act,
1951. The Government has further assured financial help to private sector industries
adopting the schemes of rationalisation.
Various subsidies and allowances in the form of cash incentives and depreciation and
development allowance and rebate are also granted. In order to promote industrial
research various scientific and research organisation were established especially after
independence like National Chemical Laboratory, Poona ; National Physical Laboratory,
New Delhi; Central Drug Research Institute, Lucknow ; Central Research Institute,
Lucknow ; Central Research Institute Bhawnagar and Leather Research Institute,
Madras.
INTRODUCING
AND
IMPLEMENTING
VOLUNTARY
HURDLES IN IMPLEMENTING VRS: It deals with the lives of people who are offered to
end the careers abruptly and probably do nothing for the rest of their lives .Thus many
problems arise while implementing the scheme .Some problems are anticipated by the
management and appropriate action plan was drawn for it (Chitra, 2004) Basic
problems which arise at the time of implementation of VRS are.
Non acceptance of VRS
Over acceptance of VRS
Operational problem
Post VRS Blues Major hurdle in the acceptance of the scheme is trade union as union
does not easily accept any type of change even made with genuine reasons .Over
acceptance of VRS in (Chitra, 2004) PSU banks also caused the problem .
POST VRS MEASURES: Company should take up few measures which will help the
retiring employees to maintain their morale. Separate scheme are run by many nodal
agencies for Counseling, Retraining and Redeployment (CRR) of rationalized
employees of central public sector enterprises.
Participative Management refers to as an open form of management where
employees are actively involved in organizations decision making process. The
concept is applied by the managers who understand the importance to human intellect
and seek a strong relationship with their employees. They understand that the
employees are the facilitators who deal directly with the customers and satisfy their
needs. To beat the competition in market and to stay ahead of the competition, this form
of management has been adopted by many organizations. They welcome the innovative
ideas, concepts and thoughts from the employees and involve them in decision making
process.
Participative Management can also be termed as Industrial Democracy, Codetermination, Employee Involvement as well as Participative Decision Making.
The concept of employee participation in organizations decision making is not new.
However, the idea couldnt gain that much popularity among organizations.
The idea behind employee involvement at every stage of decision making is absolutely
straight. Open and honest communication always produces good results both for
organization as well as workers. Freedom and transparency in companys operations
take it to the next level and strengthens the basis of the organization. On the other
hand, there are several companies that straightway rule out the possibility of
participative decision making process. According to them, employees misuse their
freedom of expression and participation in decision making as it provides higher status
to employees and empowers them.
However, there are many companies who have embraced this particular style of
management and are now getting positive results. Toyota is the best example. The
company has been following suggestion schemes and employee involvement
procedures for over a decade now. The management receives almost 2,000,000
suggestions and ideas every year and around 95 percent of these are implemented by
the company. Who is not aware of Toyotas success rate? Around five thousand
improvements per year have made Toyota one of the fastest growing organizations
globally. The need is to develop and implement a comprehensive company policy and
everything works well.
British Airways is another great example of participatory management. During economic
downsizing, employees suggestions helped them cut annual cost of their operations by
4.5 million pounds. This is just unbelievable. The company would have suffered from
huge losses, had it not adopted employees suggestions. It is right to some extent that
employees can misuse industrial democracy but with a proper management of HR
functions, this problem can be solved and the operations of organization can be taken to
the next level.
2.
Co-partnership :
In this method, employees are paid the share of profits in the firm of shares and not
cash. Thus workers become shareholders in the company in which they are employed.
Being shareholders of the company they are entitled to participate in management.
They also receive dividend on their shares. Co-partnership increases the status of
workers and improves their relationship with the management.
The problem with this method is that employees are not interested in co-partnership and
want their share of profits in cash and refuse to accept shares of company. Even the
unions oppose this scheme as well as they feel that nominal shareholding of the
workers does not give them any real say in management.
3.
Employee Directors :
Under this method one or two representative of the workers are nominated on the board
of Directors of the company. They enjoy the same privileges and have the same
authority as other directors have. They participate in the decision making process as
regards policies and procedure. The representatives of the employees to be nominated
are selected or suggested by the unions of the employees. The management of this
method of participation is that many worker directors are ignorant about their role on the
board and get in to conflict with other board members.
4.
Under this system, joint management councils are constituted. These councils consist of
equal number of representatives of employers and workers. The councils discuss
various matters concerning the working of the company. The decision of that council is
advisory in nature. The management however considers these decisions
sympathetically and implement them although it is not mandatory.
5.
Suggestion schemes :
As the name itself indicates, suggestion programs are formal plans to invite
individual employees to make suggestions for work improvements. The suggestions are
then sorted out as per their applicability and cost-benefits ratio. Employees whose
suggestions result in cost saving for the organization are given monetary rewards that
are proportionate to the companys savings. The limitations of suggestion programs
are :
a)
Employee initiative : The emphasis is on individual initiative rather than group
problem solving and teamwork. Only a few employees make actual suggestions and the
rest do not experience any sense of involvement.
b)
Demoralizing : There is a possibility that employees may be feel delay in the
processing of suggestions or if certain ideas that appear good are rejected. The
employee may stop making suggestions in the future.
c)
Criticism : Some managers find it hard to accept suggestions from their
subordinates and may view it as criticism of their ability and practice.
6.
Quality Circles :
The success of quality circles in Japan has led to their increasing popularity in Europe
and the United States. A quality circle consists of a group of employees who meet
regularly to discuss their quality problems, investigate causes, recommend solutions,
and take corrective actions. Quality circles usually consist of eight to ten employees and
supervisors who typically meet once a week on company time and on company
premises. The benefits of quality circles are :
a)
b)
Quality circles provide opportunities for personal growth, achievement and
recognition.
c)
b)
c)
Employees feel isolated if they feel that their efforts are not having an impact on
the organization.
7.
Self-managing Teams :
behaviour and results. In simple words, self-managed teams are teams whose
members are permitted to make key decisions about how their work is done.
Typically, self-managing teams consist of small numbers of employees, often around
ten, who take on duties that used to be performed by their supervisors. Their task
includes making work assignments, deciding on the pace of work, determining how
quality is to be assessed, and even who gets to join the team.
9.
b)
c)
d)
e)
Satisfy the self esteem requirements of the employees at the grass roots.
Since participative management implies the active participation of all the concerned
party, substantial generation of idea could be brought about. This can lead to more &
more innovation, making the organisation competing enough as it is the matter of the
survival of the fittest.
The Factories Act, 1948, has been promulgated primarily to provide safety measures
and to promote the health and welfare of the workers employed in factories. The object
thuss brings this Act, within the competence of the Central Legislature to enact. State
Governments/Union Territory Administrations have been empowered under certain
provisions of this Act, to make rules, to give effect to the objects and the scheme of the
Act.
Applicability: This Act applies to factories, which qualify the definition of Factory
under the section 2(m) of the Act or to those industrial establishments, to whom section
85 have been made applicable by the State Government, by notification in the Official
Gazette. This applies to any premises wherein 10 or more persons with the aid of power
or wherein 20 or more workers without aid of power are/were working on any day in the
preceding 12 months, wherein manufacturing process is being carried on.
What are the provisions relating to health for employees working in factories and
the manufacturing process addressed by the Factories Act, 1948?
The main focus of Factories Act is towards the Health benefits to the workers
Section 11: This section basically specifies the issues of cleanliness at the workplace. It
is mentioned in the provision that every factory shall be kept clean and free from effluvia
arising from any drain, privy or other nuisance. This includes that there should be no
accumulation of dirt and refuse and should be removed daily and entire area should be
kept clean.
Section 12: This section specifies on disposal of wastes and effluents. That every
factory should make effective arrangements for the treatment of wastes and effluents
due to the manufacturing process carried on therein, so as to render them innocuous
and for their disposal.
Section 13: This section focuses on ventilation and temperature maintenance at
workplace. Every factory should work on proper arrangements for adequate ventilation
and circulation of fresh air.
Section 14: This section details on the proper exhaustion of dust and fume in the
Factory. In this it is mentioned that factory which deals on manufacturing process should
take care of the proper exhaustion of dust, fume and other impurities from its origin
point.
Section 15: This section specifies regarding the artificial humidification in factories. In
this the humidity level of air in factories are artificially increased as per the provision
prescribed by the State Government.
Section 16: Overcrowding is also an important issue which is specified in this section.
In this it is mentioned that no room in the factory shall be overcrowded to an extent that
can be injurious to the health of workers employed herein.
Section 18: This section specifies regarding arrangements for sufficient and pure
drinking water for the workers. There are also some specified provisions for suitable
point for drinking water supply. As in that drinking water point should not be within 6
meters range of any washing place, urinal, latrine, spittoon, open drainage carrying
effluents. In addition to this a factory where there are more than 250 workers provisions
for cooling drinking water during hot temperature should be made.
Section 19: This section provides details relating to urinals and latrine construction at
factories. It mentions that in every factory there should be sufficient accommodation for
urinals which should be provided at conveniently situated place. It should be kept clean
and maintained. There is provision to provide separate urinals for both male and female
workers.
Section 20: This section specifies regarding proper arrangements of spittoons in the
factory. It is mentioned that in every factory there should be sufficient number of
spittoons situated at convenient places and should be properly maintained and cleaned
and kept in hygienic condition.
What are the provisions relating to safety for employees working in factories and
the manufacturing process addressed by the Factories Act, 1948?
The Factories Act, 1948 also provides provisions relating to safety measures for the
workers employed herein. This is to ensure safety of workers working on or around the
machines. The detailed information on each provision relating to safety measures is as
under:
Section 17: Under section it has been described that there should be proper
arrangement of lighting in factories. In every part of the factory where workers are
working or passing should be well equipped with lighting arrangement either by natural
sources
or
artificial
sources.
Section 21: This section specifies that fencing of machinery is necessary. That any
moving part of the machinery or machinery that is dangerous in kind should be properly
fenced.
Section 23: This section prescribes that employment of young person on dangerous
machinery is not allowed. In the case where he is been fully instructed in the usage of
the machinery and working under the supervision he might be allowed to work on it.
Section 24: This section provides provision of striking gear and devices for cutting off
power in case of emergency. Every factory should have special devices for cutting off of
power in emergencies from running machinery. Suitable striking gear appliances should
be
provided
and
maintained
for
moving
belts.
Section 28: This section prohibits working of women and children on specific
machinery. As per this section women and children should not be appointed for any part
of
factory
working
on
cotton
pressing.
Section 32: In this section it has been specified that all floors, stairs, passages and
gangways should be properly constructed and maintained, so that there are no chances
of
slips
or
fall.
Section 34: This section specifies that no person in any factory shall be employed to
lift, carry or move any load so heavy that might cause in injury. State Government may
specify
maximum
amount
of
weight
to
be
carried
by
workers.
Section 35: This section provides specification regarding safety and protection of eyes
of workers. It mentions that factory should provide specific goggles or screens to the
workers who are involved in manufacturing work that may cause them injury to eyes.
Section 36: As per this section it is provided that no worker shall be forced to enter any
chamber, tank, vat, pit, pipe, flue or other confined space in any factory in which any
gas, fume, vapour or dust is likely to be present to such an extent as to involve risk to
persons
being
overcome
thereby.
Section 38: As per this section there should be proper precautionary measures built for
fire. There should be safe mean to escape in case of fire, and also necessary
equipments
and
facilities
to
extinguish
fire.
Section 45: This section specifies that in every factory there should be proper
maintained and well equipped first aid box or cupboard with the prescribed contents.
For every 150 workers employed at one time, there shall not be less than 1 first aid box
in the factory. Also in case where there are more than 500 workers there should be well
maintained ambulance room of prescribed size and containing proper facility.
What are the specific regulations for the health and safety provisions for women
employees under various legislations in the country?
There are specific regulations relating to health and safety of women employees under
various laws in our country. Provisions relating to health and safety of women under
various Acts are as under:
Women are prohibited from working between 7.00 pm to 6.00 am. There has
been a recent amended to allow women to work in night shift in certain sectors
including the Special Economic Zone (SEZ), IT sector and Textiles. This is
subject to the condition that the employers shall be obligated to provide adequate
safeguards in the workplace, equal opportunity, their transportation from the
factory premises to the nearest point of their residence.
Section 22 of the Act prohibits that no woman shall be allowed to clean, lubricate
or adjust any part of a prime mover or of any transmission machinery while the
prime mover or transmission machinery is in motion, if that would expose the
woman to risk of injury from any moving part either of that machine or of any
adjacent machinery.
Section 27 of the Act provides that no woman shall be employed in any part of a
factory for pressing cotton in which a cotton-opener is at work.
Section 25 of the Act bans employment of any women in any plantation between
7.00 pm to 6.00 am without permission of the State Government. But it
specifically exempts from its purview women who are employed in any plantation
as midwives and nurses.
The Act also provides provisions relating to sickness and maternity leave for the
women employees.
Section 46 of the Act prohibits employment of any women in any part of a mine
which is below-ground. And in any part of the mine above ground except
between the hours 6.00 am and 7.00 pm. It also provides that every women
employed in a mine above ground shall be allowed break of not less than 11
hours between the end of day work and the commencement of the next day of
work.
Provisions relating to Offences and Penalties under the Factories Act, 1948 for
contravention of laws relating to safety and health of the workers ?
Contravention causing death or serious bodily injury - fine not less than
Rs.25,000 in case of death and not less than Rs.5000 in case of serious injuries.
Factories Act works with a primary object to protect workers employed in the factories
against industrial and occupational hazards. For that purpose, it seeks to impose upon
the owners or the occupiers certain obligations to protect works unwary as well as
negligent and to secure for them, employment in conditions conducive to their health
and safety from accidents.
(i) if personal injury is caused to a workman by accident arising out of and in the
course of his employment;
However, the employer is not liable to pay compensation in the following cases:
If the injury does not result in the total or partial disablement of the
workman for a period exceeding three days.
safety guard or other device which has been provided for the purpose of
securing safety of workmen.
The State Government may, by notification in the Official Gazette, appoint any
person to be a Commissioner for Workmen's Compensation for such area as
may be specified in the notification. Any Commissioner may, for the purpose of
deciding any matter referred to him for decision under this Act, choose one or
more persons possessing special knowledge of any matter relevant to the matter
under inquiry to assist him in holding the inquiry.
Compensation shall be paid as soon as it falls due. In cases where the employer
does not accept the liability for compensation to the extent claimed, he shall be
bound to make provisional payment based on the extent of liability which he
accepts, and, such payment shall be deposited with the Commissioner or made
to the workman, as the case may be.
If any question arises in any proceedings under this Act as to the liability of any
person to pay compensation (including any question as to whether a person
injured is or is not a workman) or as to the amount or duration of compensation
(including any question as to the nature or extent of disablement), the question
shall, in default of agreement, be settled by a Commissioner. No Civil Court shall
have jurisdiction to settle, decide or deal with any question which is by or under
this Act required to be settled, decided or dealt with by a Commissioner or to
enforce any liability incurred under this Act.
The State Government may, by notification in the Official Gazette, direct that
every person employing workmen, or that any specified class of such persons,
shall send at such time and in such form and to such authority, as may be
specified in the notification, a correct return specifying the number of injuries in
respect of which compensation has been paid by the employer during the
previous year and the amount of such compensation together with such other
particulars as to the compensation as the State Government may direct.