Industrial Relations

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INDUSTRIAL RELATIONS

It deals with the nature of relationship between the employer and employee in an industry or an organization . IR is said to be good when willing cooperation emanates from employees towards the achievement of organizational goals

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Evolution of IR

Concept of IR developed as a result of industrial revolution Worker looked upon as a commodity which could be easily replaced and secured in the early factory system Employer in a dominating position Employer dictated both the wages and as well as the conditions of service of the workers
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Objectives

To promote healthy labour management relations To protect the interests of the employees as well as the management To raise the productivity to a higher level To check industrial conflicts and minimize the occurrence of strikes,lockouts ,gheraos etc To minimise labour turnover & absenteeism by providing job satisfaction To facilitate and develop industrial democracy To establish government control over industries to regulate production of industrial relations
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Factors affecting IR

Institutional factors Economic factors Social factors Technological factors Psychological factors Political factors Enterprise related factors Global factors
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Conditions necessary for maintaining IR

Recognition by the employer that the workers are part of a team working towards common objectives An attitude from the part of the employers to deliver the good and service Fair redressal of grievances Avoidance of workers of being unduly influenced by political leaders Payment of fair wages and adequate wage 4/18/2013 structure as well as establishment

Conditions necessary for maintaining IR

Adoption of a policy which ensures the workers an equitable share of the gains of increased productivity Introducing a proper system for employees education Training in industrial relations and human relations to workers ,technical staff and at all managerial levels
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MACHINERY FOR HANDLING INDUSTRIAL DISPUTES

Preventive machinery (Voluntary or non statutory)

Settlement Machinery (Statutory)

Workers participation in management

Collective Bargaining

Grievance Procedure

Tripartite Bodies

Code of Discipline

Standing orders

Conciliation

Court of Enquiry

Voluntary Arbitration

Adjudication

Conciliation officers

Conciliation
Board

Labour Courts

Industrial Tribunals

National Tribunals

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Workers participation in management

Workers are allowed to be consulted and to have a say in the management of the unit Works committee Joint Management council joint council

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Collective Bargaining

Collective bargaining is the process whereby workers organize together to meet, converse, and compromise upon the work environment with their employers. It is the practice in which union and company representatives meet to negotiate a new labor contract

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Collective Bargaining

A collective agreement between an employer and one or more unions in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions and grievance-procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a Collective Bargaining Agreement (CBA) or as a Collective Employment Agreement (CEA).
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TRIPARTITE BODIES

The tripartite body was established to make peace and improve relations between management and unions, and maintain smooth functioning of union management relations. The tripartite body had to be sufficiently large to ensure sufficient representation of the various interests involved; encourage representatives of employers, labor and government to meet regularly; and disallow individual members from making individual contributions to meetings
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TRIPARTITE BODIES

Indian Labour Conference(ILC) & Standing Labour Committee(SLC) have been constituted by the central govt for this purpose The representatives of the workers and employers are nominated to these bodies by the central government in consultation with the all India organizations of the workers and employers The agenda for ILC /SLC is settled by the labour ministry
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Purpose of the tripartite body

Bring the aggravated parties together for mutual settlement of differences, and encourage a spirit of cooperation and goodwill. Promote uniformity in labor laws and legislation. Discuss all matters of All India importance as between employers and employees. Determine a plan for settlement for all disputes
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Code of discipline

It is a set of of self imposed mutually agreed voluntary principles of discipline and good relations b/w the management and the workers in industry In India,Code of discipline was approved by the 16 th Indian Labour Conference in 1958 It contains three sets of codes

Management &union agree : Management agrees : Union agree :

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OBJECTIVES

Maintaining peace and order in industry Promoting constructive criticism Avoiding work stoppages Settlement of disputes and grievances by a mutually agreed procedure and avoiding litigations Bringing in the importance the parties recognition of one another's rights and responsibilities Eliminating all forms coercion,intimidation and violation of rules ,regulations and procedures governing industrial relations
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Management and Union(s) agree

that no unilateral action should be taken in connection with any industrial matter and that should be settled at appropriate level

that the existing machinery for settlement of disputes should be utilized with the utmost efficiency
that there should be no strike or lockout without prior notice
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Management and Union(s) agree

that neither party will have recourse to coercion, intimidation, victimization or go slow tactics that they will avoid litigation, sit-down and stay-in strikes and lock-outs that they will promote constructive cooperation between their representatives at all levels and as between workers themselves
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Management and Union(s) agree

that they will establish upon a mutually agreed grievance procedure which will ensure a speedy and full investigation leading to settlement
that they will abide by various stages in the grievance procedure and take no arbitrary action which would by-pass this procedure; and
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Management Agrees

not to increase work-loads unless agreed upon or settled otherwise

not to support or encourage any unfair labor practice such as discrimination and victimization of any employee to take prompt action for settlement of grievances and implementation of settlements, awards, decision and orders
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Management Agrees

to take appropriate disciplinary action against its officers and members in cases where enquiries reveal that they were responsible for precipitate action by workers leading to indiscipline

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Union agrees

not to engage in any form of physical duress not to permit demonstrations which are not peaceful that their members will not engage or cause other employees to engage in any union activity during working hours to discourage unfair labor practices such as negligence of duty, damage to property and insubordination

to take prompt action to implement awards, agreements, settlements and decisions

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Factors guiding code of conduct policy of any organisation

Honesty and integrity Disclosure of information Harassment Outside employment Conflict of interest Confidentiality EEO Misusing company resources Health and safety Payments and gifts
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STANDING ORDERS

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They provide the dos & donts for the employees It act as code of conduct for the employees during their working life within the organisations ILC deliberated the same and the act was finally passed in 1945 Industrial Employment (Standing Orders ) Act,1946 came into force 24

Scope and applications of the Act

This Act requires any establishment with more than 100 workers to provide for conditions of employment (Standing Orders) which must be submitted to the competent authority within 6 months. Conditions that the Standing Orders must cover include

dismissal procedures means of redress for workmen against unfair treatment wrongful exactions by the employer or his agents or servants.
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Industrial disputes
Settlement machinery

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Conciliation

It is a method of resolving disputes with the help of a third party ,who intervenes in a the dispute situation upon a request by either of the parties Decision making function remains the prerogative of the parties to the dispute The conciliator simply assists them in their negotiations and decision making &help remove the bottle necks Time limits

14 days in case conciliation officers 2 months in the case of Board of conciliation

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Conciliation

Strikes and lock outs are prohibited during the conciliation proceedings Settlement arrived is binding on both the parties for a period agreed upon by the parties or for a period of 6 months and will continue until revoked by any either party

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Conciliation Machinery

Both are appointed by the appropriate government Conciliation officer Board of conciliation

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Court of Enquiry

Failure of conciliation proceedings the govt can appoint a court of enquiry Submit the report within 6 months Court of Enquiry is primarily a fact finding machinery

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Voluntary arbitration

The dispute is referred to a third party The arbitrator is chosen by both the parties mutually and voluntarily through the arbitration agreement The arbitrator is not vested with any judicial powers ,he derives his power only to settle the disputes

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Adjudication

Refer the dispute to a labour court or tribunal It becomes compulsory when it is done without the consent of the parties The dispute is referred to three types of tribunals

Labour courts Industrial tribunal National tribunal

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Labour courts ;issues referred

The propriety and legality of an order passed by an employer under the standing order Application and interpretation of standing order Discharge and dismissal of workmen and grant of relief to them Withdrawal of any statutory concession or privilege Illegality of otherwise of any strike or lock out All matters not specified in the third schedule of Industrial Disputes Act 1947
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Industrial tribunal ;issues referred

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Wages including the period and mode of payment Compensatory and other allowancs Hours of work and rest intervals Leave with wages and holidays Bonus,profit-sharing ,PF AND Gratuity Shift working Rules of discipline Rationalization Retrenchment Any other matter 34

National Tribunal ;issues referred

Questions of national importance Dispute of that nature which involve more than two states

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Reference

Industrial relations Concepts and issues ,T N Chhabra& R K Suri ,4th edition Dynamics of industrial relations ;Mamoria C B ,Mamoria,satish,Gankar S V, 15 th revised edition www.labour.gov.in

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