The study of

trade Union

INTRODUCTION
This project is about Trade Union. About their functions. Types. History of Trade unions.
More information about Trade unions
.

OBJECTIVE

To know about Trade Unions.

To know about trade unions functions.

To know about phases of trade unions.

To analysis the employees view for the trade union

Scope
3

Limitation
Research technology

CHAPTER-2
Company profile

History
Tata Consultancy Service Limited was founded in 1968 by a division of Tata Sons Limited.[13] Its
early contracts included punched card services to sister company TISCO (now Tata Steel),
working on an Inter-Branch Reconciliation System for the Central Bank of India,[14] and
providing bureau services to Unit Trust of India.
In 1975, TCS delivered an electronic depository and trading system called SECOM for the Swiss
company SIS SegaInterSettle (deutsch); it also developed System X for the Canadian Depository
System and automated the Johannesburg Stock Exchange.[15] It associated with a Swiss partner,
TKS Teknosoft, which it later acquired.[16]
In 1980, TCS established India's first dedicated software research and development centre, the
Tata Research Development and Design Centre (TRDDC) in Pune. [17] In 1981, it established
India's first client-dedicated offshore development centre, set up for clients Tandem. TCS later
(1993) partnered with Canada-based software factory Integrity Software Corp, which TCS later
acquired.
In anticipation of the Y2K bug and the launch of a unified European currency, Euro. Tata
Consultancy Services created the factory model for Y2K conversion and developed software
tools which automated the conversion process and enabled third-party developer and client
implementation.[18]

Current trends
Our constant exposure to the needs of more than 240 financial institutions across the globe has
enabled us to develop solutions for the financial services industry that are extensive,
customizable and perfectly aligned with industry standards. Our interaction with our extensive
customer base and leading industry analysts has endowed us with unique and valuable
information on current and future trends in the financial services industry.
In this new section on our website called Trends, we wish to showcase some of our perspectives
-- and provide a prescriptive -- about leading trends and opportunities in the financial services
industry.

Growth and prospective

Highly depends on role, project and relations with project manager. Better the role - Let us say
a developer in a development project - More is the learning involved and hence is the growth.
Monetary growth is usually more dependent on project manager as to how good he/she finds
you. Try to impress them and be servile to their commands and you can climb up faster - But
faster is just 12% instead of 58%.
Overall, if you get a development project or atleast a support development project, you can
expect a growth in terms of knowledge given that you are enthusiastic towards coding. For tester,
the opportunities usually lie in Foreign client projects specifically banking and other critical
applications where performance as well as test case creation is important. In addition to that, a
tester can also get a chance for going ahead with testing automation tools which are of great
value these days.

CHAPTER-3
Conceptual
Background

III. 1 TRADE UNIONISM

Trade Unions are voluntary organization of workers as well as employers formed to protect and
promote the interest of their members. It is a combination of temporary and permanent workers,
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.

Trade Disputes
It means any dispute between employers and workmen or between workmen and workmen, or
between employers and employers which is connected with the employment or non-employment,
or the terms of employment or the conditions of Labour, of any person, where Workmen means
all persons employed in trade or industry whether or not in the employment of the employer with
whom the trade dispute arises.

Emergence of Trade Union Act

Indian Trade Unions Bill, 1925 having been passed by the Legislature received its assent on 25th
March, 1926. It came into force on 1St June, 1927 as the Indian Trade Unions Act, 1926. Section
2(h) of the Trade Unions Act, 1926 has defined a trade union as
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.

Objectives of Trade Union

Workers organize themselves in the form of a union to achieve the following goals:
10

To improve the economic lot of employees by securing for them better wages.
To secure better working conditions for the workers by securing their organizational

stability, growth, and leadership.

To resist schemes of the management which reduce employment, e.g., rationalization and

automation.
To protect the interests of employees by taking active participation in the management.

Levels of Indian Trade Unions

The structure of unions in India relates to their pattern of relationship between national level,
regional level, local level and plant level unions.
Trade unions in India are affiliate with two types of organizations: National federation, and
Federation of Unions.
The National Federation of trade unions is an organization comprising of all trade unions in a
region irrespective of their industrial area. The Federation of Unions has the function of creating
new unions and strengthening the relationships between the existing unions and workers.

11

Objectives of Trade Union

Workers organize themselves in the form of a union to achieve the following goals:

To improve the economic lot of employees by securing for them better wages.
To secure better working conditions for the workers by securing their organizational

stability, growth, and leadership.

To resist schemes of the management which reduce employment, e.g., rationalization and

automation.
To protect the interests of employees by taking active participation in the management.

Levels of Indian Trade Unions

The structure of unions in India relates to their pattern of relationship between national level,
regional level, local level and plant level unions.
Trade unions in India are affiliate with two types of organizations: National federation, and
Federation of Unions.
The National Federation of trade unions is an organization comprising of all trade unions in a
region irrespective of their industrial area. The Federation of Unions has the function of creating
new unions and strengthening the relationships between the existing unions and workers.

There are various Trade Unions in India. Few of them are listed below: 12

1) The Indian National Trade Union Congress (INTUC). The Congress Party and the top
congress leaders formed the INTUC like Nehru and Patel were associated with it. Every union
affiliated to INTUC has to submit its dispute to arbitration after exhausting other means of
settlement of disputes.
2) The All India Trade Union Congress (AITUC). This union serves as the labour forum of
Communist Party of India at present. It is considered as the second largest union in India.
3) The Hind Mazdoor Sabha (HMS). It was formed in Calcutta by the socialists who neither
approved INTUC nor AITUC. The HMS was organized with a view to keeping its members free
from any political or other outside interference.
4) The United Trade Union Congress (UTUC). Those persons who were dissident socialist
formed it. It functions mainly in Kerala and West Bengal.
5) Centre for Indian Trade Unions (CITU). The Marxists separated from the AITUC in May
1970 and formed the ITU.
6) Bhartiya Mazdoor Sangh (BMS). Largest central trade union organization in India. Founded
by Dattopantji Thengdi on July 23, 1955.
7) Hind Mazdoor Kisan Panchayat (HMPK). Hind Mazdoor Kisan Panchayat (India Workers
Peasants Council), is a national trade union confederation in India. Its national president is
George Fernandez.
8) National Front of Indian Trade Unions (NFFU). Apex body founded in the year 1969 for
representation, policy making and affiliation of Trade Unions at the national forum. Achieved
status of Central Trade Union Organization in the year 2008 by Ministry of Labour and
Employment Government of India.

13

9) Labour Progressive Federation (LPF). A trade union federation in the South Indian state of
Tamil Nadu. All India President of LPF - Shri. Perur A.Natarajan, Ex.M.L.A. - All India General
Secretary Shri. Shanmugam All India Treasurer Shri. k.Natarajan
10) Centre for Indian Trade Unions (CITU). CITU is a National level Trade Union in India
politically attached to the Communist Party of India (Marxist). The Centre of Indian Trade
Unions is today one of biggest assembly of workers and classes of India. It has strong
unchallengeable presence in the Indian state of Tripura besides a good presence in West Bengal
and Kerala.

Problems of Indian Trade Unions

1) Uneven growth of Trade Unions both industry wise and area wise. Trade union activities are
concentrated in a few states and in bigger industrial centers mainly due to concentration of
industries in those places.
2) Increasing Trade Unions in India led to the declining membership per union. This is due to the
reason that any seven workers can form a union under the Trade Unions Act, 1926 and get it
registered. Secondly, the rivalry among the leaders of trade unions has resulted multiplicity of
unions, thereby reducing the average size of membership per union.
3) The lack of necessary Thnds prevent trade unions from offering support for welfare activities
for labour, support strikes, and hire paid staff.
4) Most trade unions have developed inter-union rivalries and groups that are in constant
competition against each other. Multiple trade unions are a necessary evil.
5) Unions are man aged by the educated class: doctors, lawyers, politicians, etc., who have no
experience or work history with the corresponding union. This type of foreign leadership creates
barriers between lower-end workers and upper management, and is disadvantageous to the
proper development and management of the union.

14

Unions carry out a number of functions. They negotiate on behalf of their members on pay
scales, working hours and working conditions. These areas can include basic pay, overtime
payments, holidays, health safety, promotion prospects, maternity and paternity rights and job
security.

Depending on the circumstances, unions may try to protect or improve workers rights. They also
provide information on a range of issues for their members, for instance on pensions. They help
with education and training schemes and may also participate in measures designed to increase
demand for the product produced and hence for labour.

Some also provide a range of benefits to their members including strike pay, sickness pay and
unemployment pay. In addition many get involved in pressurizing their governments to adopt a
legislation, which will benefit their members or workers in general, such as fixing a national
minimum wage.
Collective Bargaining:
An individual worker may not have the skill, time or willingness to negotiate with her or his
employer. A worker is also likely to have limited bargaining power. If she or he presses for a
wage rise or an improvement in working conditions, the employer may be able to dismiss her or
him and take on someone as a replacement. Unions enable workers to press their claims through
collective bargaining. This process involves negotiations between union officials, representing a
group of workers, and representatives of employers.

The Basis of Wage Claims:

15

There are a number of arguments, a union can put forward while asking for a wage rise. One is
that the workers deserve to be paid more because they have been working harder and have
increased productivity. Another argument is that an industry whose profits have risen can afford
to pay higher wages to its workers.

This argument may be linked to the first one as the workers are likely to have contributed to the
higher profits. A third argument is known as the comparability argument. A union may argue that
the workers it represents should receive a pay rise to keep their pay in line with similar workers.
For instance, a union representing nurses may press for a wage rise if doctors are awarded higher
pay.

The nurses union is unlikely to ask for the same pay as doctors. What is more likely is that they
will seek to maintain their wage differential. So, if before the rise of doctors pay, nurses received
a wage that was 60% of the doctors earnings, they are likely to demand a rise that will restore
this differential.

A fourth argument that is often put forward is that workers need a wage rise to meet the
increased cost of living. If the price level is rising by 6%, workers will need a wage rise of atleast 6% to maintain their wages purchasing power. This is sometimes referred to as maintaining
their real income (income adjusted for inflation).

The shortcomings or the weakness of the trade union movement in India are as follows:
16

1. Lack of Balanced Growth

Trade unions are often associated with big industrial houses. A vast majority of the working
population is without any union backing. The entire agricultural sector is highly unorganized in
India. The agricultural workers are subject to all kinds of exploitation. The same is true with
respect to those working in small scale and cottage industries. Lack of balanced growth of trade
unions in all sectors is one of the major weakness of the trade union movement in India.
2. Low Membership
Trade unions, with the exception of few have low membership. This is because many employees
are not willing to join unions although they are ready to enjoy the benefits arising out of the
union actions. The reasons for the hesitation of employees to join unions include, among others,
the need to take part in strikes and such other programmes, fear of pay cut and fear of
punishment.
3. Poor financial Position
Low membership is one of the reasons for the poor financial position of the unions. Moreover,
the subscription payable by every member is kept low. Some members may not even make a
prompt payment of the small amount of subscription. These are also not very many sources from
which unions can get funds. They may probably depend on contributions from philanthropists.
The poor financial position can only weaken the trade union movement.
4. Political Control
Most popular trade unions in India are affiliated to certain political parties. These political parties
are only keen on making every grievance of the working class a political issue to attain political
gains. As a result the problem only gets wide publicity and remains unsolved.

5. Multiplicity of Unions
Often there exists more than one union within the same industry each backed by a political party.
These various unions have conflicting ideology. If one union comes out with a strike proposal
17

another union may work against it. As a result, none of the unions is actually able to solve the
problems of the workers.
6. Inter-Union Rivalry
The existence of many unions within a particular industry paves way for what is called interunion rivalry. These unions do not work together for the cause of the workers. Each union may
adopt a different approach to the problem. The inter-union rivalry may become a more serious
problem of the workers. As a result, the employees are unable to derive the benefits of collective
bargaining.
7. Lack of able Leaders
Another barrier to the growth of trade unions is the lack of able leaders. Some union leaders give
a strike call even for petty problems that can easily be resolved through talks. On the other hand,

There are leaders who have secret pact with the management. They get bribes from the
government and work against the interests of the employees. Some leaders dont convene a
meeting of the general body at all even when a crisis develops. They take unilateral decisions
that are thrust on the employees.
8. Lack of Recognition
Most management is not prepared to recognize trade unions. This happens because of any of the
following reason.

The existence of low membership that reduces the bargaining power of the union.

The existence of more unions within the same industry.

Inter-union rivalry.

The indifferent attitude of the employees themselves towards trade unions.

9. Opposition from Employers

Apart from the fact that most employers are not prepared to recognize trade unions, they also do
not let their employees from a union. This the employers are able to achieve by adopting certain
18

punitive measures like intimidating employees victimizing union leaders, initiating disciplinary
action against employees indulging in union activities and so on. Some employers also start rival
unions with the support of certain employees. Sometimes, they may go to the extent of bribing
union leaders to avert a strike or such similar show of protest by employees. The employers fail
to understand that the union enables the employees to express their grievances in a democratic
manner and can also be used as a means of promoting better labor management relationships.
10. Indifferent Attitude of the Members
Union leaders alone cannot be blamed for the weakness of the trade union movement. The
indifferent attitude of the members of certain unions is also a barrier. Some members do not even
make a prompt payment of the subscription amount. The treasurer of the union has to go behind
them, remind and persuade them to pay the subscription that is often a very small amount. There
are on the other hand, members who do not attend the general body meetings nor do they bother
to know what is discussed in such meetings. There are still others who do not take part at all in
any of the programmes of the union organized to press the demands of the employees like slogan
shouting procession, demonstration, hunger strike etc. Members generally expect the officebearers to do all that is necessary to achieve the demands.

6 reasons for joining a union

People who aren't in a union or don't know anyone in a trade or labor union often unsure what
labor unions do and why someone would join. A labor union is an organization of workers
formed to further the social and economic interests of its members.

The nature of work in the world is changing. Employers are trying to shed responsibility for
providing health insurance, good pension coverage, reasonable work hours and job safety
19

protections. Perhaps a logical starting point is to ask this basic question: why do workers join
unions? The fact is that there are almost as many reasons for joining a union as there are union
members. I would like to focus the six reasons for joining a union.

1. Economic reasons
For higher wages, increased benefits, shorter hours and improved working conditions are
certainly important reasons for joining a union.

2. Job security
One basic human need is security. In the work environment, employees find themselves in a
dependent relationship on their bosses and on what they probably view as impersonal
organizations. They want to know that their jobs will exist in the future and that they will be
protected against unfair or arbitrary treatment. Anyway, with the growth of technological change,
however, workers feel especially vulnerable to job loss. For example, several thousand robots are
now being utilized in manufacturing, with continued growth expected for the use of robotics in
the near future.

3. Social reasons
Men and women are social beings. Therefore, workers have a strong need to be accepted by their
peers, to belong, and to go along with others. Some unions offer attractive benefits, such as
insurance. Peer pressure may also cause workers to join unions.
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4. Recognition
Some employees have found that the union structure offers them an opportunity to gain
recognition not available to them in the business organization. For example, a worker with little
education may serve on a shop committee or even be elected as a position of influence, such as
steward or officer in the local.

5. Participation
Many workers have explained their union membership in terms of their desire to obtain a voice
in decisions that affect them in their working environment. To other workers who feel lost in our
large, complex, industrial society, the union is viewed as a last hope that they will be able to
influence their destiny.

6. Compulsion
Aside from social pressure to join a union, some workers become union members simply
because the employment contract requires them to do so. It would appear that unions serve a
broad network of employee needs.
One of the big reasons workers join a union is to ensure fair treatment in the workplace. As a
union member, you have a strong collective voice for negotiating with employers about pay &
wages, work hours, benefits - including retirement plans, health insurance, vacation and sick
leave, tuition reimbursement, etc., Union members earn more money, have better benefits, and
21

help employers create a more stable, productive workforce in which workers have a say in
improving their jobs. As you plan your future, consider where your best career opportunities are
and how union membership can help. What do you think are the most important reasons why
employees want unions? What can management do to respond to these concerns in advance of
union organizing activity? The role of HR department in developing and maintaining harmonious
working relations between employers and employees is very important. In many countries large
proportions of the working population nowadays belong to labor unions. The HR strategy is to
ensure that the organization has (a) the right types of people, (b) in the right places at the right
times, (c) doing the right things right.

We can see, therefore, that the reasons why employees join a union cannot be reduced to any
single, uncomplicated statement. To the extent that people cannot find opportunities to satisfy
those needs in the workplace, they tend to form unions. Some writers say that the existence of a
union is an indictment of managements failure to provide opportunities for need satisfaction at
all levels of the organization.

Classification based on ideology

a. Revolutionary Unions: Believe in destruction of existing social/economic order and
creation of a new one. They want shift in power and authority and use of force - Left
Unions.
b. Reformist or Welfare Unions: Work for changes and reforms within existing sociopolitical framework of society - European Model.

22

c. Uplift Unions: Advocate extensive reforms well beyond the area of working condition
i.e., change in taxation system, elimination of poverty etc.
Classification based on trade

Many unions have memberships and jurisdictions based on the trades they represent. The
most narrow in membership is the craft union, which represents only members certified
in a given craft or trade, such as pipe fitting, carpentry, and clerical work. Although very
common in the western world, craft unions are not common in countries like India and
Sri Lanka.

At the other extreme in terms of the range of workers represented in the general union,
which has members drawn from all trades. Most unions in India and Sri Lanka are in this
category.

Another common delineation of unions based on trades or crafts is that between so called

blue-collar workers and white-collar workers. Unions representing workers employed on the
production floor, or outdoor trades such as in construction work, are called blue-collar unions. In
contrast, those employees in shops and offices and who are not in management grades and
perform clerical and allied functions are called white-collar workers.

In addition, trade unions may be categorised on the basis of the industry in which they are

employed. Examples of these are workers engaged in agriculture of forestry: hence agricultural
labour unions or forest worker unions.
Classification based on agreement
Another basis on which labour agreements are sometimes distinguished is on basis of the type of
agreement involved, based on the degree to which membership in the union is a condition of
employment. These are:
a. Closed Shop: Where management and union agree that the union would have sole
responsibility and authority for the recruitment of workers, it is called a Closed Shop agreement.
23

The worker joins the union to become an employee of the shop. The Taft-Hartley Act of 1947
bans closed shop agreements in the USA, although they still exist in the construction and printing
trades. Sometimes, the closed shop is also called the Hiring Hall.

b. Union Shop: Where there is an agreement that all new recruits must join the union within a
fixed period after employment it is called a union shop. In the USA where some states are
declared to be right-to-work.
c. Preferential Shop: When a Union member is given preference in filling a vacancy, such an
agreement is called Preferential Shop.
d. Maintenance Shop: In this type of arrangement no compulsory membership in the union
before or after recruitment exists. However, if the employee chooses to become a member after
recruitment, his membership remains compulsory right throughout his tenure of employment
with that particular employer. This is called maintenance of membership shop or maintenance
shop.

III.2 WORKERS PARTICIPATION IN MANAGEMENT

Any form of work organizations involves interaction between Employees and Management. This
interactions is done through collective bargaining, wherein groups representing different sides
negotiate to find common grounds for solutions to issues of conflict. Another means of finding
solutions is through Cooperation between the two. This can happen if both parties, employees
and management, cooperate and jointly manage issues. When such cooperation is for managing
the enterprise, it is called Worker& Participation in Management (WPM) where Participation
24

basically means sharing the decision-making power with the lower ranks of the organization in
an appropriate manner.
Workers participation in management is an essential ingredient of Industrial democracy.
Traditionally the concept of Workers Participation in Management (WPM) refers to participation
of non-managerial employees in the decision-making process of the organization.
An important aim of WPM is to enable both sides to come together in order to increase
productivity and to inculcate a sense of responsibility among the employees. Another aim is that
of having peaceful industrial relations. However, participation in management does not mean
that employees have to be consulted for taking day to day decisions.
Importance of Workers Participation in Management

Peace and harmony between workers and management.

Workers get to see how Their actions would contribute to the overall growth of the company.
They tend to view the decisions as their own and are more enthusiastic in their

implementation.
They become more willing to take initiative and come out with cost-saving suggestions and
growth oriented ideas.

International Institute of Labour Studies, defines WPM is the participation resulting from the
practices which increase the scope for employees share of influence in decision-making at
different tiers of organizational hierarchy with concomitant (related) assumption of
responsibility.
According to International Labour Organization (ILO), Workers participation, may broadly
be taken to cover all terms of association of workers and their representatives with the decisionmaking process, ranging from exchange of information, consultations, decisions and

25

negotiations, to more institutionalized forms such as the presence of workers member on

management or supervisory boards or even management by workers themselves.

Objectives of Workers Participation in Management

To establish Industrial Democracy.

To build the most dynamic Human Resources.

To satisfy the workers social and esteem needs.

To act on a device to counter-balance powers of managers.

To raise level of motivation of workers by closer involvement.

Its psychological objective is to secure full recognition of the workers.

To develop ties of understanding leading to better effort and harmony.

To act on a panacea for solving industrial relation problems.

To provide opportunity for expression and to provide a sense of importance to workers.

To strengthen labour-management co-operation and thus maintain Industrial peace and

harmony.

To promote increased productivity for the advantage of the organization, workers and the
society at large.

To improve the Quality of Working Life (QWL) by allowing the workers greater
influence and involvement in work and satisfaction obtained from work.

26

Prerequisites for Successful Participation

Management and operatives/employees should not work at cross-purposes i.e. they must

have clearly defined and complementary objectives.

Free flow of communication and information.
Participation of outside trade union leaders to be avoided.
Strong and effective trade unionism.
Workers education and training. Trade unions aRd government needs to work in this area.
Trust between both the parties.
Workers should be associated at all levels of decision-making.
Employees cannot spend all their time in participation to the exclusion of all other work.

Limitations of Participation

Technology and organizations today are so complex that specialized work-roles are required.
This means employees will not be able to participate effectively in matters beyond their

particular environment.
Everybody need not want participation.
The role of trade unions in promoting participative management has been far from

satisfactory.
Employers are unwilling to share power with the workers representatives.
Managers consider participative management a fraud.

Forms of Participation
The forms of workers participation in management vary from industry to industry and country to
country depending upon the political system, pattern of management relations and subject or area
of participation. The forms of workers participation followed in India are as follows:

1) COLLECTIVE BARGAINING
Collective bargaining is a process of negotiation between employers and a group of employees
aimed at reaching agreements to regulate working conditions. The interests of the employees are
commonly presented by representatives of a trade union to which the employees belong.
27

International Labour Organizations defines Collective bargaining, as negotiations about

working conditions and terms of employment between an employer, or a group of employers, or
one or more employers organizations, on the one hand, and one or more representative workers
organization on the other with a view to reaching agreement.
Importance of Collective Bargaining
1) It helps increase the economic strength of both the parties at the same time protecting their
interests.
2) It helps establish uniform conditions of employment with a view to avoid occurrence of
industrial disputes.
3) It helps resolve disputes when they occur.
4) It lays down rules and norms for dealing with labour.
5) It helps usher in democratic principles into the industrial world.

2) JOINT CONSULTATION
A joint consultative committee is a formal system of communication between the management of
a company or organization and the representatives of the employees. The purpose of the
committee is to tackle decisions affecting the employees of the organization.
These committees are made up of managers and employee representatives who come together on
a regular basis to discuss issues of mutual concern. When setting up a JCC, a constitution should
be agreed with employee representatives, including where appropriate recognized trade unions,
which lays down the rules and procedures that
1) COLLECTIVE BARGAINING
Collective bargaining is a process of negotiation between employers and a group of employees
aimed at reaching agreements to regulate working conditions. The interests of the employees are
commonly presented by representatives of a trade union to which the employees belong.
International Labour Organizations defines Collective bargaining, as negotiations about
working conditions and terms of employment between an employer, or a group of employers, or
one or more employers organizations, on the one hand, and one or more representative workers
organization on the other with a view to reaching agreement.
28

Importance of Collective Bargaining

6) It helps increase the economic strength of both the parties at the same time protecting their
interests.
7) It helps establish uniform conditions of employment with a view to avoid occurrence of
industrial disputes.
8) It helps resolve disputes when they occur.
9) It lays down rules and norms for dealing with labour.
10) It helps usher in democratic principles into the industrial world.

2) JOINT CONSULTATION
A joint consultative committee is a formal system of communication between the management of
a company or organization and the representatives of the employees. The purpose of the
committee is to tackle decisions affecting the employees of the organization.
These committees are made up of managers and employee representatives who come together on
a regular basis to discuss issues of mutual concern. When setting up a JCC, a constitution should
be agreed with employee representatives, including where appropriate recognized trade unions,
which lays down the rules and procedures that will govern the committees operation.
Meetings of JCC
Meetings of the consultative committee should be held regularly. In addition to regular meetings
it is also helpful to provide for ad hoc meetings to be held as and when a particular need arises.
Every meeting should have a well prepared agenda and all members of the committee should be
given the opportunity of contributing items to the agenda before it is circulated. The agenda
should be sent out at least five working days in advance of the meeting so that representatives
have an opportunity of consulting with their constituents prior to the committee meeting.
As with all meetings, the JCC needs to be well chaired if it is to run efficiently. The person
selected to take the chair should ensure that all parties have an opportunity to express their
opinion and that discussion is not allowed to wander from the subject under consideration. The
chairperson should also allocate tasks to particular people to ensure that the views of the
committee are taken into account by the decision makers.
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3) WORKS COUNCIL
Works councils may be defined as: Permanent elected bodies of workforce representatives, setup
on the basis of law or collective agreements ith the overall task of promoting cooperation within
the enterprise for the benefit of the enterprise itself and employees by creating and maintaining
good and stable employment conditions, increasing welfare and security of employees and their
understanding of enterprise operations, finance and competitiveness.
Works councils can also be formed in companies where neither the employer nor the employees
are organized. Works council representatives may also be appointed to the Board of Directors. As
with co-determination, there are three main views about why works councils primarily exist:

To increase bargaining power of workers at the expense of owners by means of legislation;

To reduce workplace conflict by improving and systematizing communication channels;
To correct market failures by means of public policy.

Benefits of Works Council

Better flow of information between management and labor.

More say for workers in corporate decisions.
Decreased labor-management conflict.
Potentially higher productivity and profitability when labors interests are aligned with
managements.

4) JOINT MANAGEMENT COUNCILS & COMMITTEES

Joint councils are bodies comprising representatives of employers and employees. This method
sees a very loose form of participation, as these councils are mostly consultative bodies. Work
committees are a legal requirement in industrial establishments employing 100 or more workers.
Such committees discuss a wide range of topics connected t labour welfare. Examples of such
committees are welfare committee, safety committee, etc.

30

Section 53 of the Labour Relations Code requires employers and unions to establish joint
consultation committees to promote the cooperative resolution of workplace issues. The
Mediation Division of the Labour Relations Board offers assistance to employers and unions in
meeting this obligation by helping them establish joint consultation committees. Mediators work
with the parties to arrive at a common understanding of the committees mandate and specific
terms of reference for their operation.

Benefits of Effective Joint Consultation Committees

For management

The establishment of the means for improved communication with the union.
An opportunity to discuss operational issues in a problem-solving manner.
A more positive labour-management relationship.
An opportunity to respond to constructive suggestions and valid complaints.

For the Union

An opportunity for ongoing communication with management.

An opportunity to provide constructive input into operational problems.
An avenue to express employee and union concerns.
An opportunity to resolve ongoing issues.

Such committees have not proven to be too effective in promoting industrial democracy,
increasing productivity and reducing labour unrest.

5) BOARD REPRESENTATION
Board-level representation of employees may be defined in terms of rights to attend and
participate in boardroom decisions as full or consultative members. Employee representation can
31

be considered an institutionalized national characteristic to the extent that such rights are
guaranteed by law or through tri-partite and other collective agreements.
Board-level employee representation involves employees representatives who sit on the
supervisory board, board of directors, or similar structures, in companies. Employee
representatives are directly elected by the workforce. They are employees of the companies,
officials of organizations representing those employees, or individuals considered to represent
the employees interests in some way.
The presence of employee representatives in the board-level structures of a company is an
indirect, or representational, form of participation. It involves the expression of employees
collective interest through the intermediary of representatives and differs from direct
participation in a number of ways:

It focuses on the workforce as a whole rather than individual employees or workgroups;

Its fundamental aim is the achievement of democratic input into company decision-

making rather than fostering employee motivation and commitment.

It is in general regulated by legislation or collective agreements, rather than being a
unilateral management initiative.

The role of a worker representative in the board of directors is essentially one of negotiating the
workers interest with the other members of the board. At times, this may result in tension and
friction inside the board room. The effectiveness of workers representative at the board depend
upon his ability to participate in decision-making, his knowledge of the company affairs, his
educational background, his level of understanding and also on the number of worker
representatives in the Board.

6) SUGGESTION SCHEMES
A Suggestion scheme can be defined as a management tool, which encourages employees to
contribute ideas for improvement 4lnd innovation in the organization. It is based on the rationale

32

that creative talent exists in each employee and that they have the ability and are well placed to
make suggestions to improve the way their job is being done.
Under this method workers are invited and encouraged to offer suggestions for improving the
working of the enterprise. A suggestion box is installed and any worker can write his suggestions
and drop them in the box. Periodically all the suggestions are scrutinized by the suggestion
committee or suggestion screening committee.

33

CHAPTER-4
Data Analysis and
Interpretation
1) Do you think, employees have successfully adapted the changing working culture and
environment of TCS?
OPTIONS:
Options
Yes
No

Responses(%)
81
19
34

No; 19%

Yes; 81%

ANALYSIS: Result shows that 81% of the employees think that they have successfully adapted
the changing work culture and environment of TCS while the rest of 19% of respondents have
not adjusted in the work culture of TCS.

2) Do you have a good relationship/communication/mutual understanding with your immediate

manager/supervisor?
OPTIONS:
Options
Yes
No
To Some Extent

Responses(%)
67
6
27

35

To Some Extent; 27%

No; 6%

Yes; 67%

ANALYSIS: Survey shows that67% of the respondents have good mutual understanding with
their immediate manager/supervisor which means relationship between the internal employees
are good and harmonious. Remaining respondents either dont have good understanding with
their manager or their relationship is not appropriate.

3) Do you think Manpower rationalization leading to increased number of outsourced workers

remains a major threat due to differences in provisions?
OPTIONS:
Options
Yes
No
To Some Extent

Responses(%)
54
8
38

36

To Some Extent; 38%

Yes; 54%
No; 8%

ANALYSIS: Figure indicates that 54% of respondents have a major threat from this outsourced
workers along with 38% of respondents who also have threat from this outsourced workers but to
some extent. This opinion of employees can lead to various Trade Union issues. Only 8% of the
respondents dont have any threat from outsourced workers.

4) Out of the following options, which problem do you face regularly at TCS?
OPTIONS:
Options
Work Schedule
Working Culture
Welfare Facilities
Relationship with Subordinates
Disciplinary Action

Responses(%)
16
21
19
29
15

37

Disciplinary action; 15% Work schedule; 15%

Working Culture; 21%
Relationship with subordinates; 29%
Welfare facilities; 19%

ANALYSIS: This question indicates that the major problem faced by29% of respondents are
relationship with subordinates, which could be because of the conflicts prevailing between
employees of TCS and this is resulted from Poor communication and Lack of openness.

5) Do you think grievances are normally settled promptly in TCS?

OPTIONS:
Options
Yes
No
To Some Extent

Responses(%)
23
14
63

38

Yes; 23%
To Some Extent; 63%

No; 13%

ANALYSIS: Survey shows that grievances of only 63% of respondents are solved in an
immediate effect, because of which there is high probability in declining efficiency of
employees.
23% of respondents says that their grievances are immediately solved, which is a positive sign
for TCS.
Remaining 14% of respondents say that grievances are not at all solved in a stipulated time
frame. This would lead to agitation by employees/TUs, resulting in conflicting relationship
between management and TUs.

6) Out of following, which factors do you think leads to grievances?

OPTIONS:
Options
Wages
Leave Policy
Welfare Activities
Disparity between skills of employees and job responsibility
All of the above
39

Responses(%)
17
8
9
17
49

Wages; 17%

All of the above; 49%

Leave Policy; 9%
Welfare activities; 9%

Disparity between skills of employees and job responsibility; 17%

ANALYSIS: Grievances shows how smoothly an organization shows is running without any
abstraction or hurdles, but there are no organization which is running without grievances. From
the observation regarding the issues which leads to grievances like Wages, Leave policy, Welfare
activities and Disparity between skills of employees and job responsibility, we saw that 49% of
employees feel all of this issues are the main reasons which leads to grievances in TCS.

7) Do you feel Samadhan Cell provided by TCS is effectively in handling your grievances?
OPTIONS:
Options
Yes
No
To Some Extent

Responses(%)
38
4
58

40

Yes; 38%
To Some Extent; 58%
No; 4%

ANALYSIS: Samadhan cell is a very effective Grievance Redressal system for TCS employees,
because employees get satisfactory results within a stipulated period of time which is agreed by
38% of respondents. But in some cases, where 58% of employees feel that Samadhan cell is not
always effective in resolving the grievances of employees could be due to delay in processing of
grievances as there could be many grievance received in a day or else there could be delay in
receiving responses from GM/HOD of the concerned cases .
Only 4% of the of the respondents think that Samadhan cell is not an effective Grievance
Redressal system for handling grievances.

8) At what level do you feel Grievances are solved at CCL?

OPTIONS:
Options
Unit Level
Area Level
Corporate Level
All of the above

Responses(%)
19
10
27
44

41

Unit Level; 19%

All of the above; 44%

Area Level; 10%

Corporate Level; 27%

ANALYSIS: 44% of respondents say that grievances are solved at All the levels of TCS. It is a
good management strategy, because if a labor does not get justice in Project Level, then he has
options to fight for his rights in Area and Corporate Level.

9) Do you have a positive view on the joint management-union committees here?

OPTIONS:
Options
YES
NO
To Some Extent

Responses(%)
62
13
25

42

To Some Extent; 25%

No; 13%

Yes; 62%

ANALYSIS: 62% of respondents say, they have a positive view on the joint management-union
committees, which means they trust TUs and management that all the decisions taken by them
will be only for the benefit of organization and their employees.

10) Do you feel Trade Union and Management in TCS make sincere efforts to strengthen the
work of employees and solving labor issues?
OPTIONS:
Options
Yes
No
To Some Extent

Responses(%)
33
11
56

43

Yes; 33%
To Some Extent; 56%
No; 12%

ANALYSIS: According to 56% of respondents, TUs and management are not always successful
in strengthening the work of employees and solving labor issues. In order to have smooth
functioning of work in organization, all the issues should be solved as early as possible.

11) According to you, what type of relation do Trade Union and Management share?
OPTIONS:
Options
Harmonious
Conflicting
Fluctuating

Responses(%)
58
8
34

44

Fluctuating; 35%
Harmonious; 58%
Conflicting; 8%

ANALYSIS: Every organization wants cordial relation in its organization to meet its target like
to produce, dispatch, sale and earn profit. These targets can be achieved only when there is
Harmonious relation between employees and management. 58% of respondents say that
Harmonious relation exist in TCS which is impetus for the organization.

12) What are the common issues raised by Trade Unions?

OPTIONS:
Options
Working Time Regulation
Improper Guidance
Employment Contracts
Equal Pay
Welfare Activities
Sex Discrimination
All of the Above

Responses(%)
0
0
0
0
6
0
94
45

Welfare activities; 6%

All of the above; 94%

ANALYSIS: Main objective of TUs are to solve labors issues and stand for the rights of
employees in front of management. Until the issues of employees are not brought in front of
management, there wont be industrial peace in any organization. 94% of respondents say that
their TU members raise every issues faced by employees. TUs by having bipartite discussion
with management regarding issues can help in creating harmonious relation in organization.
13) Do you think, every dispute raised between Trade Union and Management are solved?
OPTIONS:
Options
Yes
No
To Some Extent

Response(%)
29
4
67

46

Yes; 29%
To Some Extent; 67%

No; 4%

ANALYSIS: According to 67% of respondents TUs and Management are not successful in
solving all the disputes, this can have a negative impact on organization. Dispute causes
frustration in minds of employees as a result, they become stressed, which adversely affects their
professional and personal lives. As a result, organization can face losses as their target was not
achieved.

14) If the conflicts between Trade union and Management are unsolved, it results in which of the
following?
OPTIONS:
Options
Stoppage in Production of Coal
Stoppage in Dispatch of Coal
Strike
Dharna
47

Responses(%)
0
0
20
0

Gherao
Any one or all of the above

15
65

Strike; 21%

Any one or All of the above; 65%

Gherao; 15%

ANALYSIS: If conflicts raised between TUs and management are unsolved, conflicting relation
will prevail in organization there by creating economic blockage. Every organization should
prevent this. 65% of respondents say that unsolved issues of TUs results in stoppage of
Production, Dispatch of coal, Strike, Dharna and Gherao.

48

CHAPTER-5
Conclusion

49

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