CHAPTER 2

RESEARCHES ON INDUSTRIAL RELATIONS IN INDIA-A REVIEW

Industrial relations is an area which has attracted the attention of a

number of researchers. It is necessary to evaluate critically the existing research

on the subject, with a view to place in proper perspective the important

contributions in the field, identify the gaps, deficiencies, and the comparative

neglect of the important research areas, and thus provide an analytical

framework for the future studies in the field of Industrial relations. A brief

summary of the major studies, which are particularly relevant to the present

study, together with a critical evaluation is presented here.

The literature review of the subject is classified and presented under five

heads. First one is Industrial Relations in general. Second part of the literature

survey highlights studies about job satisfaction. Third part of the literature

analysis accounts for Industrial Disputes and dispute settling machinery. Fourth

part reveals studies pertaining to trade unionism and workers participation in

management.Last part of the literature review highlights various studies

pertaining to industrial relations in Kerala.

2.1. Industrial Relations in General

Many researchers in the country have concentrated on the study of

industrial relations at the national level on the basis of aggregate data. In his

study Viramani (1995)1 has pointed out that the Indian industrial relations

system has all along been adversarial with collective bargaining approach being

its mainstay. He contented that collective bargaining and participation need

different attitudes and hence cannot co-exist. In any new model of I R the

adversarial approach and collective bargaining must give way to participative

structures or development of institutions which check the adversarial approach.

He suggested various changes in the roles of management, union and

Government for redefining Industrial relations.

Chellappa and Jhourney (1982)2 have attempted to identify the factors

which have facilitated the development of harmonious industrial relations. They

identified informal, open and uninhibited interpersonal relations between

employees and the pressures of production, hierarchical status and day-to-day

work problems did not reduce the communication between the individuals.

Datta (1990)3 analysed why employees oppose automation, what are the

steps to be taken for its smooth introduction and how the staff and their unions

can be involved in this task. The utilization and deployment of workforce in the

context of automation has also been analysed. He emphasized the inalienable

connection between automation and industrial relations and suggested that in

their own interest both the managements and the unions must join hands for

phased adoption of new technology.

Johri (1990) 4 discussed several paradoxes of Indian industrial system and

identified that the industrial relations system has now emerged as a major

obstacle to technological progress and competition of Indian industries. He

concluded that Indian industrialism does not reflect a natural stage of economic

evaluation; it may be viewed as a sub-economic system created by the planning

strategy of providing industrialization in a society which continues to be poor

and technologically backward.

Ratnam (1998)5 pointed out that most of the laws pertain to the organized

sector only and this comprises only 8% of the total workforce. He stressed that

economic development should be the means and the human development, the

goal. As regards labour, legislation needs be aligned with the overall shift in

economic and industrialization policies. It under scanned the need to pay

attention to the formulation of a timely, adequate and reliable database on labour

upon which policy planning may be based.

28

Nath (1995)6 focused on the Indian Industrial law, its inadequacies for a

growing industrial economy and its judicial interpretations and implications in

the light of I L Os conventions and universal practices. He strongly argued for

pragmatic and practical industrial laws which meet the growing needs of a fast

industrializing economy. While pleading for equality in enforcement of laws, he

concluded that India can attain the universally acceptable objectives of industrial

relations only after an overhaul of the existing industrial laws.

Johnnie (1992)7 has presented an account of Dunlops Industrial Relation

System theory, critically examining and commenting on Dunlops methodology,

and the theoretical contributions which have been used by other scholars to

further develop the frontiers of knowledge in the study of Industrial Relations.

Although Dunlops work attracted criticism from a good number of scholars, the

author contended that Dunlops work still stands out clearly as a monumental

effort in contemporary industrial relations analysis.

Nayar (1985)8 has attempted to develop a conceptual model of

effectiveness of industrial relations at the enterprise level by building on two

distinct streams of literature-organizational theory and industrial relations. The

purpose was to develop an operationalizable model of industrial relations sub-

system effectiveness. Her model was helpful in developing linkage between the

variables, to assess any given system as to its effectiveness and to identify some

of the characteristics of the internal system variables which contribute to

effectiveness.

Sharma and Sundara Rajan (1983)9 reported the findings of an All-India

survey of organizational climate and its influence on labour -management

relations. They isolated two factors that together explain 58% of the variation in

labour-management relations in India. Those are (1) grievance handling system

and (2) scope for advancement.

Johri (1996)10 has analyzed several consequences of badly designed

legislative controls over Indian industrial relations system. The failure of

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tripartite consultations in producing the agreed outcomes has left the industrial

relations system with only one anchor and it is the body of labour laws as

administered by the Government machinery and interpreted by the courts.

Various suggestions are offered for amending the Industrial Disputes Act, 1947.

He suggested that in accordance with the requirements of Indias more rapidly

developing modern economic sector, all the actors, including the Government

machinery, would learn to adapt and moderate the I R system to accommodate

its main pressures and growth determined needs.

Reddy (1992)11 has approached the problem of industrial relations in the

context of new economic realities, competitive environment and strategic quest.

According to him, the reformation of the industrial relations climate to cope with

the emerging strategic environment requires efforts from all the three parties to

the system. He suggested that the trade unions need to play a complementary

role in understanding the strategic directions, and in turn use their primary power

of opinionating among their members to bring about greater human resource

integration in the firms movement towards the future.

Ghosh (1995)12 observed that not all industrial restructuring exercises can

be lumped together in one undifferentiated category. He identified three distinct

patterns, which have been shaped as much by economic environment and market

compulsions as by prevailing labour-management relations. He suggested some

strategic choices available to labour and management as conventional responses

like bargaining and casualisation are proving inadequate in the wake of

fundamental changes in work practices and employment relations.

Khurana (1972)13 has tried to evaluate the industrial relations in the

private and public sectors in India. He found that industrial relations in both the

sectors had progressively deteriorated during 1962-68 and that public sector

registered a better performance on the criterion of industrial conflict, but when

viewed in the context of its performance in terms of the tripartite forums, the

code of discipline, and the prevalent attitudinal climate it has been no difference

30

from the private sector. He concluded that it cant be said with certainty that

there exist any linear relationship between ownership and industrial relations.

Chander (1979)14 and Rao (1981)15 have analyzed the Gandhian

philosophy of Industrial relations specifically related to minimum wages, labour

strikes and trusteeship and advised to follow Gandhian values for a congenial

industrial atmosphere.

Sharma (1988)16 argued that like employers, unions too have catered only

to the physical well-being of the worker and have paid little attention to improve

the quality of his work life. He argued that the bond between the worker and the

union is not at all strong as the relationship is based on negative motivation. He

suggested that employers and unions can co-operate and collaborate with each

other if they come to agree upon some common goal like improvement of

quality of work life.

Pandey (1999)17 has evaluated the role of IR managers in changing

industrial scenario and concluded that collective action by individuals on issues

of mutual interest shall lay the foundation for individual growth and freedom

which shall be fostered by industrial relations managers of the organization.

Bhatnagar and Sharma (1984)18 studied about the role and effectiveness of

labour welfare officer in industrial relations. They concluded that labour welfare

officers, by and large, are not able to perform their duties faithfully. They

suggested that the mode of appointments and service conditions of the labour

welfare officers be suitably modified so as to accord them a reasonable degree of

functional autonomy. They also suggested for periodic reports to the

Government regarding the welfare activities so that the Government might

proceed against the recalcitrant managements.

While studying the aftermath of Structural Adjustment Programme upon

the labour standards, Palo et al (2000)19 pointed out that Structural Adjustment

Programme has brought income gains to the working class despite their relative

31

job insecurity. Leelavathy (2000)20 examined challenges and strategies of

industrial relations in India and suggested for integration and simplification of

labour laws and greater autonomy for labour tribunals and conciliation

committees. She advocated for modifying Governments strategy based on

Japans model of industrial relations.

Srivastava (2001)21 has given an analysis of changing power dynamics in

the emerging industrial relations scenario and suggested to evolve a mechanism,

which can facilitate business success in a market economy along with protecting

the interest of the working class. He proposed a change in the I R Act which will

help managements, workers and unions deal with each other like partners, not

opponents.

In his study, Srivasthava (2004)22 pointed out that regular, open, two-way

communication in the organization is an important prerequisite for promoting

proactive I R. It would keep the workers updated with employers changing

circumstances, constraints, strategies and plans and giving them an opportunity

to adapt and reposition themselves. He advocated for formulating appropriate

conduct and disciplinary regulations for the protection of employers rights.

Public sector has been the main focus of attention in most of the general

and historic studies. Karim (1972)23 and Mathur (1986)24 have given a good

analysis of the issues of industrial relations in public sector and have

recommended various direct and indirect measures to bring about harmonious

relations between the labour and the managements.

De (1973)25 analysed whether such state of industrial relations do exist in

enterprises as will facilitate the continued fulfillment of its stated objectives and

concrete goals. He suggested the basis for determination of and the role of the

bargaining agent, establishment of integrative collective bargaining relationship,

development of performance-based reward system as part of action plan for

effective industrial relations in the public sector.

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Patil (1998)26 studied about the changing industrial relations in different

industries and organizations in Karnataka to determine the nature of changing

relations and concluded that labour unions are becoming more defensive and

more concerned with protection of jobs. He also found out that workers are

positively responding to the demands of the managements for improvement in

production, job flexibility and shop floor designing.

Gani (1990)27 studied about the factors that help or obstruct the

maintenance and development of cordial and constructive relationship between

labour and management in Jammu and Kashmir. He suggested that clear cut

policies relating to promotion, reward system, training, working conditions and

grievance handling should be formulated and implemented.

2.2 Job satisfaction

Gardner& Pierce (1998)28 and Mathieu, Hofman &Farr (1993)29 found

that although a variety of factors might contribute to job satisfaction for most

workers, the connection between such factors and job satisfaction may not be a

direct link. Job satisfaction may be mediated by the perception of the individual

workers. This is because different employees may perceive the same job

differently, and it is those individual perceptions that determine whether or not

an employee is satisfied with the job.

The study conducted in Japan by Kumara & Koichi (1989)30 found that

supportive supervision as well as support from co-workers, was positively

correlated with workers job satisfaction. According to them, support from co-

workers and supervisors was especially important to employees who did not feel

positive about the work they performed.

Takalkar & Coovert (1994)31 conducted a study comparing the job

satisfaction of white collar workers in the United States and India. They found

remarkable similarity in the factors that contributed to these workers job

satisfaction.

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According to Porter and Lawler (1968)32 job satisfaction and performance

are not directly linked. Instead, effective job performance leads to job related

rewards, such as pay increases, promotions or a sense of accomplishment. If the

process for offering these rewards is perceived as fair, receiving these rewards

leads to job satisfaction and also to higher and higher levels of performance.

This creates a situation in which job satisfaction and job performance are

actually independent of one another, but are linked because both are affected by

job- related rewards.

Judge, Thoresen, et al., (2001)33 suggested that job satisfaction might be

more strongly related to job performance for individuals in complex jobs, such

as managers, scientists and engineers, than in more structured jobs such as

accounting and sales. Complex jobs, because they require creativity and

ingenuity, might offer more opportunity for intrinsic reinforcement, and that may

strengthen the connection between satisfaction and performance, in comparison

to more routine jobs, where satisfaction may be more affected by the structure or

conditions of work, or extrinsic rewards.

Miceli (1993) 34 emphasized that the perception of fairness or justice in

pay is the most important part of the link between performance and job

satisfaction. That is, relative deprivation (a discrepancy between a workers

expectation and rewards) and perceived fairness of pay may mediate the

relationship between performance and job satisfaction, regardless of the actual

rewards obtained.

Although it is conceivable that a worker could be quite satisfied with a

job but have low feelings of commitment to the organization, or vice versa, the

feelings tend to be positively related. Studies showed mixed results as to the

direction of influence between these two constructs. ODriscoll and colleagues

(1992)35 found that job satisfaction may directly affect organizational

commitment, whereas another study (Becker & Billings, 1993)36 indicated that

organizational commitment leads to job satisfaction.

34

The studies of Mukherjee (1980)37 and Kathiresan (1987)38 confirmed the

fact that poverty-stricken workers are more concerned with immediate and

personal economic gains and their economic condition appear to be a central

source of life satisfaction.

Srivasthava and Srivasthava (1983)39 and Narchal et al (1983)40 found

wage pattern, working conditions and job permanency as the most important

factors in workers job satisfaction.

Rao and Ganguli (1971)41 and Chathopadyaya and Venkiteswara (1972)42

found that job satisfaction is correlated with certain personal attributes and

background variables such as age, educational level, number of dependents,

occupational level and marital status.

Mamta Panda (2004)43 examined the relationship between the industrial

relations environment and work culture in a private and a public sector

organization belonging to the same industry. She suggested intensive training

programmes to be organized for making the employees aware of the need for

adoption of normative approach, collaborative orientation, competency building

and developing holistic perspective.

Srivastava (2004)44 studied the effect of welfare facilities on job

satisfaction and attitude of workers towards management amongst the workers of

public and private sectors. The results indicated that welfare facilities affect the

workers attitude towards management and job satisfaction in both sectors. He

concluded that public sector provide better welfare facilities to their workers and

public sector workers are more satisfied with their jobs as compared to the

private sector workers.

2.3 Industrial disputes

One of the grim threats to the efficient conduct of the modern industrial

system seems to be the ravaging industrial disharmony characterized by

embittered relationship between the employers and the workers. The causes of

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industrial disputes in India were psychological, political and economic. Hence to

secure industrial peace, changes in the attitude of the workers, employers, trade

unions are required along with political and economic changes.

Strikes are the most visible and spectacular manifestations of industrial

conflicts which in turn, arise out of bad industrial relations. A good number of

studies undertaken to study the causes of industrial disputes have shown that

several economic and non-economic factors have caused industrial disputes in

the country. Papola (1972)45 and Varma (1978)46 concluded that inadequate pay,

rising prices and other economic benefits or pressure might be considered as the

major causes of industrial disputes in India.

Mahapathra (1977)47 and Srivasthava and De (1967)48 found the

multiplicity of trade unions, inter-union and intra-union rivalries, indiscipline

among union members, frustration of workers with the pattern of Industrial

relations are the causes of disputes.

Siva Prasad and Murthy (1977)49 and Gani (1991)50 identified inadequate

wages bonus issues, workers demand for higher cost of living allowances are the

main causes of conflicts.

Verma (1972)51 was of the view that disputes relating to wages,

allowances and bonus constitute approximately 40% of the industrial disputes

whereas Singh (1968)52 opines that more than 50% of the industrial disputes are

caused by wages, bonus and gratuity.

According to Nagaraju (1981)53, the wage issue has been the most

important single issue among the several causes which have given rise to

disputes.

Ramanujam (1979)54 studied about the reasons and remedies of

disharmony in industrial relations and suggested that industrial relations have to

be carefully and continuously nursed in order to retain it at the peak level of its

health. Just as in the case of an individuals health, so also in the case of the

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health of industrial relations, the preventive aspect must receive adequate

attention.

Reddy (1988)55 argued that the authoritarian and retrograte attitude and

indecisiveness of the management; insensitive, indifferent and anti-labour

attitude of the Government and the inter-union rivalries and competition-all

together forced the trade unions to launch general strikes. While studying

industrial relations in coal mining industry in Andhra Pradesh, he found that

over a period of one and a half decades, (1969-70 to 1983-84) there was a

thirteen fold increase in the number of strikes with an annual growth rate of

78.5%.

Mohanan (1999)56 analysed some aspects of industrial relations since

New Economic Policy and concluded that it have improved considerably. He

found that the strikes and lockouts leading to loss of man days reduced

substantially and an atmosphere for the effective functioning of joint

consultative machinery was created. He added that the trade unions have become

more responsible in securing the welfare of workers and national integration.

After studying about the emerging trends of industrial relations in public

and private sector industries in India, Sudama Singh and Binod Singh (1988)57

concluded that industrial unrest has deep rooted in the industrial relations realm

of India. Industrial sector being a part of the whole economic system bears the

impact of the type of administration prevalent in the country.

While studying about the nature and magnitude of industrial disputes in

India in the post liberalization period, Jacob (2002)58 observes that the attitude of

workers and trade union leaders to strike work for any thing and every thing has

been changed on account of the globalised and liberalized mood of the economy.

He identified that the man days lost due to lockouts is more than that of the

strikes.

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Disputes settling machinery

Machinery for the maintenance and promotion of industrial peace has

widely been studied. The working of collective bargaining has occupied a

greater part of studies of most of the researchers. Mehrotra (1966)59 and Rao

(1961)60 described the practice and procedure relating to collective bargaining in

various companies.

Guha (1959)61 and Bose (1967)62 focused the constraints in the operations

of collective bargaining. The important among them being multiplicity of trade

unions, outside leadership, political intervention and the problems of selective

and representative unions.

Conciliation has been deemed to be the other legitimate forum for settling

industrial disputes. Patil (1977) 63found the functioning of conciliation

machinery in Karnataka as most unsatisfactory and largely ineffective.

Shroff (1953)64 and Kumar (1966)65 studied the functioning of

conciliation machinery in Mumbai and Rajasthan respectively.

Singh (1968)66 and Nagaraju (1981)67 have assessed the functioning of

conciliation machinery in Kanpur and Karnataka respectively. The functioning

of conciliation machinery in Orissa and Punjab were studied by Murthy et al.

(1986)68 and Ashdhir (1987)69.

All of them are critical of the working and effectiveness of conciliation

machinery on the ground that the percentage of settlements through conciliation

declined and that of withdrawal, failure and pending cases increased and have

concluded that the machinery as a whole has failed to make any contribution in

the sphere of industrial relations by lessening the strikes and by providing the

adequate machinery for dispute settlement.

On voluntary arbitration, there have been only a few studies because of its

limited use in India. Chatterjee (1966)70 and De (1977)71 identified the skill

required by an arbitrator and the part he could play in building healthy industrial

38

relations. Like conciliation, arbitration has also been severely criticized for its

poor performance.

The role of labour courts and tribunals for settling disputes has also

received greater attention of various scholars. Banerjee (1963)72 reported that

adjudication in India is prevalent because workers are poor and uneducated and

trade unions are incoherently organized.

Giri (1972)73 was also opposite to any court at all as they retarded the

growth of unions and favoured voluntary negotiation. Chowda (1971)74 also

reported the delay in settlement of disputes through adjudication.

Murty (1980)75 observed that the adequacy and competence of a grievance

procedure for the maintenance of good industrial relations depend to a large

extent upon the good spirit with which the individuals concerned use it rather

than a comprehensive and elaborate structure of grievance procedure. He

suggested that it must subject to change to keep pace with the changing

aspirations and interests of management and labour, and with the fluctuating

needs and demands of the developing economy.

Ratna Sen (1988)76 observed that the effects of the political bias in union

verification, in conciliation or adjudication or other political interventions, is

apparent from the increasing recourse to court decisions. Both management and

trade unions or workers have more faith in the judiciary than the Government

machinery for dispute settlement. He found that both short term and long-term

strikes are increasing. It indicates less patience and greater obduracy on the part

of both labour and management.

Most of these studies are mainly concentrated in wage issues and have

suggested that unless suitable measures for the eradication of these problems are

taken the cordial climate of industrial relations will only be a myth.

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2.4 Trade unionism and Workers participation in management

Trade Unionism has been a popular field of research in the literature of

industrial relations because the conflicts and co-operation between workers and

management are influenced by the nature of workers organization. There have

been a good number of research studies in different aspects of trade unionism

such as their growth and development, organization and structure, leadership,

politics, union involvement and participation in union activities etc.

While analyzing the changed dimension of industrial relations since new

economic policy, Mohan (1999)77 observed that though there are more than

52,000 registered trade unions in the country, only 17 %of them are submitting

returns and whose activities are on the record. Further, the density level of trade

unions in India is as low as 9.1% as against 81% in Sweden, 54% in Norway,

39% in U. K., 32% in Germany, and 30% in Canada.

Mathur and Mathur (1962)78 and Padmanabhan (1980)79 traced the history

of Trade Union movement in India and made suggestions for the improvement

of trade unions.

Other studies include those of Nigam(1984)80 and Ratnam(1984)81 who

have focused on some issues such as the process of unionism and its role in the

context of economic development, the role and policy of the Government in

promoting unionism, labour-management co-operation and conflict and other

issues regarding trade union movement.

Attempts have also been made to analyze trade unionism in public

services and white collar employment sectors. Goel (1968) 82 and James and Rao

(1972)83 reported on the unions of Government employees. These researches aim

at studying the organization and strategies of unions.

These studies of Rao (1984)84 and Seth and Jain (1968)85, aimed at

leadership efficiency, influence of legal aspects on union leaders, background,

40

role, status, and style of local trade union leaders, their political affiliation and its

consequences etc.

Halder (1985)86 felt that the Indian unions are very sensitive politically

and multi-unionism has become a fact of life in most of the industries. Ashraf

(1974)87 and Ramaswamy (1973)88 also noted the relationship between union

politics and management politics, relationship between political dependence and

union weakness, political manipulations, transfer of union funds for political

activities and vice-versa, consequence of outside influence, politicization of

workers and their commitment to unions.

Choudhury (1980)89 and Foneseca (1965)90 studied the attitude of workers

towards unions, their perception of union functions, degree of unionization and

the union participation and its socio-economic variables. They concluded that

the level of participation was low in Indian situation and reported considerable

apathy or hostility among workers towards union works.

Pandey and Vikram (1969)91 and Sinha and Pai (1963)92 observed that

economic and protective functions of the unions seem to appeal to the workers

and the union is looked more as the guardian of their interest than as an agency

for political power.

Based on the nature of bargaining and the contents of the agreement,

Murty and Das (1988)93 concluded that steel industry bargaining involves all the

four sub-processes of negotiation behaviour viz., distributive bargaining,

integrative bargaining, attitudinal structuring and intra-organizational

bargaining. So it has taken a good leap from distributive bargaining to

integrative bargaining.

In his study, Patil (1998)94 pointed out that trade unionism and trade union

movement in India and Karnataka continue to be politically oriented, divided,

sub-divided and fragmented, failing to protect the interest of the labour, the

industry and the economy.

41

Sodhi (1993)95 examined the response of the three main actors in I R,

highlights the challenges and opportunities which have come up with the new

economic policies. The analysis showed that the response of the management is

positive and the trade unions have reacted against the policies. The State is

announcing policies, but is showing a weak commitment to their

implementation. He warns that with the introduction of various economic

policies, the trade unions may not survive in their traditional role.

While comparing the industrial relations in Japan and India, Zachariah

(1991)96 analysed that one of the major problems of the Indian trade union

movement is the fragmentation of the unions. This multi-unionism has posed a

serious threat to industrial harmony in India. It was argued that the Japanese

model offer learning for the management, unions, workers and Government in

India.

Das (1990)97 argued that trade unions are not really industrial

organizations in the Indian situation. They are loosely knit protest committees,

with weak structure and finding themselves in very difficult situations relating to

positive decision-making and needing to be bailed out either by the management,

political parties or the Government. They enjoyed the vested interests in the

fruits of backwardness which has dominated the stances of almost all the

political parties in the country.

Sharma (1990)98 has tried to take a critical look at the move for

managerial unionism and its implications for industrial relations. He argued that,

in the industrial relations situation, the emergence of separate unions for

managerial employees is bound to aggravate the I R problems still further.

Sodhi (1999)99 examined the role of the actors of the I R system in the

changed economic scenario, highlighted some specific challenges and pressures

for bringing about change in I R and HRM. He found out that the managements

have taken positively to the changes and the unions at the macro level remain

42

opposed to the reform process. He said that the new economic scenario is also

making various unions join hands.

Sen (1997)100 argued that unionization has been growing in the small,

medium and informal sectors or even in the unorganized pockets of organized

industry. He warned that the tendency to depoliticize workers require a response

from unions to decentralize union structures and decision-making and much

greater concern for plant level issues.

Mankidy (1993)101 observed that the new workforce have different

orientation to trade unionism and may not be as loyal to unions as their earlier

counterparts. He warned that unless management take a proactive stance and

introduce greater industrial democracy, the new united front being formed by the

unions may still lead to a return of the spectre of trade union militancy.

Singh102explored the pattern of I R in Maharashtra and analyzed the

inevitability and universality of the conflict in any industrial unit, between the

employer and the employees. He stressed the need for the management of the

conflicts and not the eradication of it. He put forward the suggestion that there

should be a central trade union organization, to which all the unions should be

affiliated.

Pandey (1998)103 exclaimed how the antiquated Trade Union Act of 1926,

which was formulated by an alien Government permitting indiscriminate

registration of trade unions in tune with its divide and rule policy, is still on the

Statute Books of an independent democratic country. He criticized that the

political overtones of Government decisions in labour matters and the

unnecessary interference weakening the forces of collective bargaining.

Choudhury (1998)104 felt that in the western parts of India Trade Unions

were dominated by the individual leaders, whereas, in the east, trade unions were

dominated by the political party affiliation. The strength changes on the basis of

43

the party in power in the State. He put forward the following roles for an ideal

Trade Union.

a) Organize worker education programme for better quality of work life

of the workers, making them hygiene and safety conscious, organize small group

activities for better team work and inter dependence.

b) Bargain with the worker-colleagues for the improvement of

productivity and establishment of eight-hour work culture.

c) Protest against unfair management practices and social evils like AIDS,

alcoholism, pollution etc. in the interest of the workers and the society at large.

Varma (1998)105 studied about the new roles to be played by different

actors of industrial relations and suggested that each state Government should

prepare a panel of arbitrators who must be experts(not necessarily judges)with

practical knowledge and experience of industrial issues, ethos and work culture.

There should be no scope or possibility of appeal against the arbitrators award.

Rath and Misra (1996)106 analysed the effects of economic environment

change on the industrial relations scenario of our country and made an attempt to

put forth a possible futuristic model of industrial relations in the years to come.

They argued that with the specter of obsolescence on the horizon, the attention

of the trade unions will be more to secure appropriate training and empowerment

techniques from the management than to strive for short-term benefits of wages

and welfare.

Rao and Patwardhan (1998)107 analysed how the trade unions see

themselves and concluded that a vast majority of Indian employers are generally

comfortable with unions and that non-unionism is not a priority item on their

agenda. They also found out that external leaders drawn from political parties

have lost their traditional charisma to inspire todays workers.

44

Gani (1991)108 found that workers have shown relatively higher degree of

interest and have positive attitudes towards unions in that they consider unions to

be important and essential aspect of their working lives.

Das (1999)109 observed that the trade unions are exploited for political

purposes and their legitimate functions are completely neglected and through

this door, militancy in trade union arena is brought in.

Jhabvala (2003)110 observed that as production became decentralized, as

the demand for flexible labour grew, and as capital and production moves to

countries and areas where trade unions were weak or non-existent, the power

and effectiveness of trade unions began to decline and weaken.

Bhangoo (2006)111 suggested that the new economic scenario demands

that trade unions must function with alliances and coaliations at national,

regional and global levels to achieve solidarity to mitigate the problems of the

workers of the world.

While analyzing the important reason for the declining influence of trade

unions, Srivastava (2006)112 felt that the profile vis--vis aspirations of new

generation of workforce have changed drastically and there exist a mismatch

between agenda of unions and expectations of new workers. Moreover, the

volatile market, increasing competition and emerging business compulsions have

diluted the needs of unions.

Ghosh (2008)113 noticed a perceptible change in the unions strategy and

approach to labour problems although some pockets of resistance still exist in

certain industries. He pointed out that the unity of the workers brought forward

by the formation of joint forums of major trade unions at different levels has also

contributed to the rise of concern for common and untouched issues of trade

union struggle.

From the above it can be concluded that though considerable efforts have

been made to study some vital aspects of trade unionism, yet some other wider

45

questions have been left out of analysis. A closer and systematic analysis of the

contribution of the outside leaders to the growth of movement and in directing

industrial disputes, within the national concern, still continues to be unexplored.

Workers participation in management

In todays labour relations, workers participation is one of the widely

debated issues. Intensive research has been carried out in the past to examine the

impact of participation on productivity, performance, and job satisfaction,

morale of workers, industrial peace and organizational effectiveness. Underlying

all these studies is the assumption that workers have a desire to participate in

management decision-making and by satisfying that desire organizational

objectives can be effectively achieved to a varying extent.

Research works of Saini (1983)114 and Indira and Harigopal (1985)115,

have shown that participation of workers in various decision-making processes

increases their job satisfaction and decreases their work apathy, reduces

industrial tension and conflict, and works as a positive instrument for the

promotion of productivity and creativity.

Sahus (1981)116 work has pointed out that the majority of the workers

favour the idea of giving them a right to influence the process of management,

particularly in those areas, where their interests are involved.

The studies of Sinha and Sinha (1974)117 have brought to light the

relationship between the workers desire for participation and their background

variables such as education, skill, length of service, interest on job and aspiration

etc.

Very few studies have focused on the attitude of management personnel

towards the workers participation, though some research has tried to elicit the

thinking and belief of the managers about participation. Indira and Harigopal

(1985)118 and Mehta (1977)119 found that the management in general displayed

46

positive attitude towards various dimensions of participative pre- disposition,

indicating thereby, their strong faith in the scheme.

The findings of Warrior(1978)120 and Lal(1984)121 have revealed that in

Indian context, the experience of participative forums are to a great extent

encouraging as most of the schemes of workers participation have functioned

successfully. Joseph (1987)122 concluded that participative management has

failed in India. Sharma (1987)123 was confident that the future of participative

management is bright, but considerable amount of groundwork is necessary.

Mukherjee (1984)124 and Viramani (1978)125 suggested that participative

forums and practices to be effective need favourable attitude among the parties,

sincerity of the purpose, sound trade unionism and industrial relations climate.

Biswas (1994)126 suggested that, for successful working of participative system,

Transactional Analysis Approach will be very useful.

According to Reddy (1990)127, the concept of participation was not

directly linked to the socio-political and economic development of the country.

Mohanan (1999)128 said that the simple launching of new economic policy alone

could not bring about such social, cultural, and economic changes in the required

magnitude to facilitate successful participation of workers in the management.

The worker as a partner of management in joint bodies, is not an equal partner in

reality. He cant be so because he is subordinate to management by the entire

system of responsibility, duty, control, and obligation.

Choudhury (1998)129 suggested that workers participation forums (WPF)

should be under an Integrated Labour Relations Act. (i.e., Industrial Dispute Act

and Trade Union Act combined together).

Workers participation in management has still many vital aspects which

have not been explored completely. The issues that need to be studied include

the attitude and approach of workers and management towards participation,

47

workers commitment to participate, levels of participation desired and the

impact of socio-economic factors on participation.

2.5. Studies about Kerala Industrial Relations

With the highest level of literacy rate in the country and the consequent

high degree of general awareness even among the rural mass, the militant nature

of trade unions and the presence of communist political movement, Kerala

industrial relations has always been an area of interest to social researchers all

over the country. The major contributions in this regard are noted below:

Pillai, (1994)130 while investigating into the industrial strike activities in

Kerala, suggested to separate trade union interest from political interest. He also

suggested for avoiding external leadership to trade unions as this is the means

through which political influence generally gets into trade union activities. He

suggested that management should be more responsive to the needs of the

workers taking into account the latters higher educational and aspirations level.

The study conducted by Nair (1972)131 revealed that the multiplicity of

unionism and outside leadership in Kerala have in no way reduced the capacity

of the Kerala workers to get good bargains in his industrial life. The study shows

that in Kerala, union movement is a stepping stone to political leadership. In

Kerala the union leadership never subordinates the union interest to political

interest.

According to Nair (1972)132, the age of union movement, instability of

employment, threat to retrenchment and frequent lay-off, leadership conflicts

and political factors were the relevant factors influencing the level of industrial

strike activity in Kerala.

According to George (1993)133, industrial relations in the textile mills of

Kerala showed a consistent tendency towards greater worker involvement in the

management of labour welfare related issues, and though multi-unionism and

politicization of union activities have to a certain extent reduced the bargaining

48

power of the workforce, they are still a force to be reckoned with in maintaining

proper industrial relations.

While examining the collective bargaining experiences in Kerala, Nair

(1982)134 observed that the flexibility and broad minded realism in management

approach, the remarkable degree of trade union unity, and constructive role

played by the State in employment relationship are unique features of industrial

relations in Kerala, that have positively contributed to the growth of a variety of

collective bargaining situations in the State at the plant and industry levels.

Paulsons (1999)135 study revealed that the innumerable labour laws

covering the various facets of industrial relations are full of loopholes, not

comprehensive and not helpful to improve our existing work culture. The study

also showed that though the interest in and inclination of workers towards trade

unions are declining, trade unions can regain their faith through proper remedial

measures.

While studying the industrial relations in Kerala State Electricity Board,

Nair (1993)136 concluded that the nature of industrial relations system depends to

a great deal on the power context. According to him, the intervention of

Government, the style of the management, the degree of unionization, extent of

membership, availability of adequate funds, political ideologies etc. are the

factors which exert great influence on industrial relations.

Remesh (2003)137 described how the bad image of the trade unions among

masses enabled the Government of Kerala to withdraw some of the deserved

rights of the employees including those with full salary and permanency in job.

Thomas (2003)138 found that an indigenous class of entrepreneurs never

emerged in Kerala and the savings mobilized in Kerala have been channeled to

investment in real estate, house construction and some service sector

establishments.

49

Patrick (1995)139 concluded that given the paternalistic and highly

traditional character of Indian management, and the wide availability throughout

the country of less organized and less politicized workers, it follows that Indian

capital would shy away from Kerala.

Gopalakrishnan (2008)140 revealed that political parties have utilized trade

unions in Kerala not as institutions with an independent existence of their own,

but as potential vehicle for power. In the matter of militancy or violence in strike

activity no trade union is distinct from another. He concluded that the

kaleidoscopic view of the Kerala trade union management reveals that though

there are more than 11000 registered trade unions in the State, only 4 to 8

percent of them are submitting returns and whose activities are on the record.

While thinking about Keralas development and failures, Raghavan

(2004)141 observed that the ideological musings of the left wing politics

disfavouring the capitalist development has created an anti-industrial climate in

the state from the very beginning of the formidable stage of its development. He

criticized Kerala society for failing to accomplish the prime truth that one has to

create wealth first before mesmerized by socialist ideals.

Jacob (2005)142 identified the main issues leading to grievances relate to

wages and amenities, service matters, working conditions and disciplinary

actions. The faulty handling of grievances leads to work stoppages and strikes.

He found out that trade union leaders are satisfied with the working of grievance

procedure in Kerala.

Vasanthagopal and Venugopalan (2009)143 compared the involvement of

employees in trade union activities in the public and private enterprises in

Kerala. They found that job security, protection against victimization, and unity

of workers were the major reasons for joining unions. Union participation

appeared to be higher among the employees in the private sector, as compared

with their counterparts in the public sector.

50

2.6 Conclusion

Despite the above studies, no serious attempts have ever been made to

make an up to date assessment of the industrial relations situations in Kerala

especially after the implementation of the new economic policy and the

consequent changing scenario. The present study is mainly intended to make a

thorough scan of industrial relations in Kerala by making a comparative analysis

of public and private enterprises in selected areas of the State. The results of the

study are expected to be of immense use to the administrators, personnel policy

makers, industrial employers, trade union leaders and the community as a whole.

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