Download - IR & LL for Sem III for Students
-
7/28/2019 IR & LL for Sem III for Students
1/137
1. Industrial Relations :Concepts, Nature, Evolution and Growth
1Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
2/137
Industrial Relations : Evolution and Growth
Features associated with changes of relations betweenemployer and workmen in a unit or industry:
Segmentation : Blue-color and White-collar Roles
Specialization : Horizontal Differentiation
Hierarchical levels : Vertical Differentiation
A New Relationship Interface : A Range of Interface,Maximization of production, Technological Transformation &
Innovations
2Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
3/137
Industrial Relations : Evolution and Growth
Changes in workplace relationships include: Increase in capital-labor ratio;
Work specialization
Fragmentation of work
Repetitive work to increase efficiency;
Fragmentation of work led to formation of groups and
employees and employers;
New perspective of an inter-group relationship;
Growing sense of insecurity required a collective effort to
counter any management initiative for retrenchment, dismissal,
etc.
3Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
4/137
Industrial Relations : Evolution and Growth
Changes in workplace relationships brought more playersassociated:
Groups of workmen / employees in the unit / industry;
Association of employers;
States to regulate public interest, social welfare
Hence Industrial Relations is Social Relations in Production
And, two dominant aspects of IR: Cooperat ion (among al l stake ho lders); and
Conf l ic t
4Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
5/137
2. Objectives & Features of IR
Approaches; Role of State, TUs, EmployersOrganizations and ILO
5Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
6/137
Industrial Relations : Objectives & Features
INDUSTRIAL RELATIONS : SOCIAL RELATIONS:
This term is generally associated with relations between
Employer and Employees in a Unit or Industry
Mass Production post Industrial Revolution, coupled with alaissez faire appro achled to Employers adopting a Mechanistic
approach to work and labor as a commodi ty and a factor of
product ion
Trade Unions emerged out of a necessity to restore somebalance in the relationship between pow erful capita land weak
labor
6Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
7/137
Industrial Relations : Objectives & Features
Conflicting interests and ideological orientation conveyed anadversar ial and str i fe-torn relat ionship
The State sought to gain cooperation of the two partners in
industry supporting econom ic growth and development
through an improvement in the quality of work life (QWL).
7Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
8/137
Industrial Relations : Objectives & Features
DEFINITION OF IR MUST TAKE THE FOLLOWING INTOACCOUNT:
IR is about relationship
The origin is in the relationship of employment
Employer Employee relationship pertains to all kinds oforganizations
There are actors other than employer and employee who
influence the relationship
The relationships are shaped by actors, structures, rules, law,
technology etc.
The impact of social, economic, political and technological
features of the context on the shaping of these relationships.
8Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
9/137
SCOPE of Industrial Relations
SCOPE OF IR:
Management Union Relationship
Employer Employee Relationship
Relationships amongst various Groups of Employees
Effects of extraneous factors (State, Socio-Political-Economic
factors) on workplace relationships
9Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
10/137
Scope of IR
IR deals with management of relationships, mainly with and
within groups or agencies like:
1. Employees:
Relat ion ship among / between employees and their sup er iors
2. Union Management or Labor Relations Collect ive Relat ions between TUs and Management
3.Government Management Union:
Collect ive Relat ionship between var ious organizat ions of
emplo yers and employ ees who represent management, thework force and th e State
4.Community or Public Relations
10Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
11/137
Scope of IR
COMMUNITY OR PUBLIC RELATIONS:
Relat ion s between an ind ustry and the soc iety.
This explains impo rtance of CSR which h as become a part of
their work cul ture
SUBJECT MATTER OF SUCH RELATIONSHIP: Desirable working conditions
Establishment and maintenance of good personal relations
Developing a sense of belonging by ensuring closer contact
between persons from various rungs of industrial hierarchy
Developing situations characterized by mutual concern andsense of responsibility for improve performance
Maximization of social welfare
Maintenance of industrial peace and avoidance of industrial
disputes.11Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
12/137
-
7/28/2019 IR & LL for Sem III for Students
13/137
Aims of Industrial Relations
7. To ensure organizat ional disc ipl ine
8. To boost morale of workers and c reate a sense of
organizat ional pr ide
9. To enable wo rkers to solve problems th rough m utualnegot iat ions and c onsu l tat ions w i th management
10. To encourage and develop TUs in order to increase workers
strength and in st i tut io nal ize proc ess of co l lect ive bargaining
11.To correct imbalances in socio -econom ic order ar is ing out of
industr ia l development assoc iated wi th com plex relat ionships
and c onf l ic t ing interests.
13Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
14/137
Objectives of Industrial Relations
OBJECTIVES OF IR: Different at enterprise / unit, industry and National levels
AT INDUSTRY OR ENTERPRISE LEVEL:
Healthy relat ionship
Mutual trust and un derstanding
Dysfunc t ional conf l ic t f ree envi ronment
Gain in produ ct iv i ty for m utual benef i ts
Minim izing los s of man-hou r due to acc idents, str i fe or
absenteeism
Reduced attr i t ion env ironm ent Part ic ipat ive working on pr inc ip les of industr ia l demo cracy
Enhancin g qual i ty of l i fe and work- l i fe balance
14Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
15/137
-
7/28/2019 IR & LL for Sem III for Students
16/137
Features of Industrial Relations
Arises out of employment relationship
Sets complex rules and regulations for the participants to
ensure industrial peace and harmony
Hinges on a cooperative spirit between all partners thereby
emphasizing the need for adjustments and accomodation in the
interest of growth and development.
Comprise employees and their organizations, employers and
their associations, and the government as participants.
16Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
17/137
-
7/28/2019 IR & LL for Sem III for Students
18/137
Schematic Interplay of Industrial Relations
LEGISLATURE
E
X
EC
U
T
I
V
E
Employees
and Groups
representing
Employees
Protective
WELFARE
Regulatory (Rights)
JUDICIARY
Performance /
Compensation
Regulatory (Terms andconditions of employment)
WELFAREJOBSEmployees
and Groups
Representing
Employees
A Schematic Interplay amongst the main variables in IR 18
-
7/28/2019 IR & LL for Sem III for Students
19/137
Approaches to Industrial Relations
SIX APPROACHES TO IR:1. The unitary approach
2. The Systems Approach : Dunlop (Input Transformation
Output)
3. The Conflict Approach: Pluralism & Post Capitalism
4. Webers Social Action Approach individual and society
5. The Gandhian Approach or Trusteeship approach
6. The Marxian or Radical approach
19Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
20/137
Approaches to Industrial Relations
1. UNITARY APPROACH:
Unity in structure
Unity in purpos e
Having a sing le source of author i ty
Having a cohesive set of part ic ipants
HENCE :
Only one source of author i ty : Management
Sing le / Unif ied lo yalty
Prerogat ive of Management to make bus iness decisio n andemplo yee related decisions .
20Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
21/137
Approaches to Industrial Relations
UNITARY APPROACH LEADS TO:
Predominantly managerially oriented
CB and TUs are perceived as being anti-social and anti-
managerial
Prefer union-less environment
KRA of HR Manager : To prevent unionization
21Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
22/137
2. System Approach:
Dunlops Framework of Industrial Relations System
Inputs Processes Outputs
BargainingConciliation
Arbitration
Lawmaking
etc
Rules
Actors
Environmental
Contexts
Ideology
Feedback
22Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
23/137
Dunlops Framework of Industrial Relations System
The Actors
Managers & their representatives
Work ers & their Organizat ions
Special ized Government Agencies concerned with workers,
enterpr ises and their relat ions hips
The Context
Techn olog ical character ist ics of the workp lace and work
commun i ty
Product and factors markets or budgetory cons train ts that
imping e on the actors
23Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
24/137
Dunlops Framework of Industrial Relations System
The ideology
A body of common ideas
Ideas that def ines role and place of each acto r
Ideas each actors ho ld tow ards place and fun ct ion o f others in
system
Ideology of a stable system com pat ib i l i ty amon g al l in thesystem
The Network or Web Rules
Concerns procedures for establ ishin g rules, regulat ions ,
decision s, orders, col lect ive bargaining agreements, cu stom s,
t rad i t ions of wo rkplace and communi ty
24Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
25/137
Dunlops Framework of Industrial Relations System
Some limitations of Systems Frame Work:
Consum ers and Communi ty not included
Talks abou t Roles and no t Peop le
Behavioral aspects l ike hum an motiv at ions and preferences not
emphasized
25Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
26/137
Modification of System Framework
Top tier : Strategic Decision
Making
Middle Tier : Collective
Bargaining and/or HR
policy making
Bottom Tier:Workplace,
individual and
organizational
relationships
26Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
27/137
Approaches to IR Six Perspective
3. CONFLICT APPROACH PLURALISM & POST CAPITALISM
Organization is composed of ind iv iduals
Ind iv iduals make up dist inct ive groups, each w i th i ts own
interests , object ives and leadersh ips Hence give r ise to tensions , com peti t ion (intra and inter)
Plural ism a bel ief of existence of more than one rul ing
pr inc iple giving r ise to conf l ict of interests
Hence, conf l ict is inevi table but c ontainable through var ious
inst i tut io nal arrangements
27Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
28/137
Approaches to IR - Six Perspective
3. CONFLICT APPROACH PLURALISM & POST CAPITALISM
Post Capita l ist-so ciety - viewed as an open society in which
pol i t ical , econom ic and soc ial power is increasingly disp ersed
Hence regu lat ion o f indu str ia l and po l i t ical con f l ict are ofnecessar i ly disso ciated
28Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
29/137
Approaches to IR - Six Perspective
4. MAX WEBRERS SOCIAL ACTION APPROACH
Social Action is behavior having subjective meaning for
individual actors, with social action theory focusing on
understanding particular actions in industrial relations
situations rather than on just observing explicit industrialrelations behavior control;
Maruti Manesar labor unrest?
29Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
30/137
Approaches to IR - Six Perspective
5. TRUSTEESHIP APPROACH
Propounded b y Mahatma Gandhi
Imp l ies s tewardships w i thout ownership
Company accepts i ts tota l responsib i l i ty towards c onsumers,
wo rkers, shareholders and communi ty
Mutual respo nsib i l i t ies to one another
Managements role is to balance all claims delivering justice
30Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
31/137
Approaches to IR - Six Perspective
6. RADICAL APPROACH
Also know n as Marxian Perspect ive
Capital sy stem not ion is pro duct ion s ystem is pr ivately ownedand is mo t ivated by prof i ts ;
Contro l over produ ct ion is exerc ised by Managers w ho areagents of Owners
Confl ict is inevi table which cannot be con tained or con trol led aslong as capital ism prevai ls
Role of Trade Unions in pro test ing exploi tat ion is inevi table
Favo rs transform ation of TUs into revolut ion ary organizat ions
31Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
32/137
2. Role of State, Trade Unions, Employers
Organization and International Labor
Organization (ILO)
32Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
33/137
-
7/28/2019 IR & LL for Sem III for Students
34/137
Role of Government
Transi t ion from planned econom y to market economy resul ted
in major sh if ts in state intervent ion in IR in the f ie lds o f:
Legislat ion
Trade Union s
Wage sett ing
Col lect ive B argaining,
WPM; and
Employment Secur i ty and Welfare
34Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
35/137
Role of Government
Relat ion ship b etween state and m ult inat ional corpo rat ion is
often caugh t between dif ferent histor ic al paradigms l iberal,
neo-l iberal and neo-imp erial tradit ions .
Maruti-Suzuki : Haryana and Gujarat
Center State relation s affecting : Relat ive distr ibut ion o f power and author i ty regarding po l icy
making, legislat ion and enforc ement of labor laws; and
Competi t ion between states results in plural ism and diversi ty;
Gujarat, B ihar, West Bengal
35Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
36/137
Role of Employers Organizations (EO)
These are formal groups of employers
Can be registered under the Trade Union Act, 1926 or The
Indian Companies Act, 1956 or the Societies Act, 1860
Main Aims and Objectives:
To defend, represent or advise affiliated member-employersthat may be necessary for promoting, supporting, opposing
legislative and other measures affecting or likely to affect
directly or indirectly industry, trade and commerce in general
or particular interest
To strengthen position of such member-employers in society at
large with respect to labor matters as distinct from economic
matters.
36Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
37/137
Role of Employers Organizations (EO)
AIOE All India Organizat ion of Indian Employers
CIE Counci l of Indian Emplo yers
ASSOCHAM Associated Chamber of Commerce
FICCI Ind ian Chamber of Commerce & Indust ry
EFI Emp loyers Federat ion o f Ind ia
AIMO All Ind ia Manu facturers Organizat ion
SCOPE Standing Con ference of Pub l ic Enterpr ises
CIE Council of Indian Employers
Represent large scale industry in India Ensures closer cooperation and coordination between AIOE,
EFI and SCOPE
37Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
38/137
Role of Trade Unions
Major A ims , Object ives & Ro le of Trade Union s
To promote and protect wo rkers interest throug h col lect ive
act ion
To ensure secur i ty of wo rkers
To obtain better econ om ic returns To Imp rove working condi t ions
To ensu re health, safety and welfare of w orkers at the work
place
Power to inf luence management
Power to inf luence government
38Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
39/137
2. International Labor Organization (ILO)
39Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
40/137
International Labor Organization (ILO)
Created in 1919
Fundamental Principles :
Labor is no t a commodi ty
Freedom of Exp ression and of asso ciat ion are essent ia l to
sus tain progress
Poverty anyw here con st i tutes danger to pros per i ty everywhere War against want requires to be carr ied on w ith unrelent ing
vigor w i th in each nat ion and by c ont inuance and conc erted
internat ional effor t in wh ich the representat ives of workers and
employers, enjoying equal status w i th those of governments,
jo in w ith them in free d iscuss ion and democrat ic dec is ion w itha view to promo t ion of common wel fare.
40Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
41/137
International Labor Organization (ILO)
General Conference 26th session at Philadelphia in 1944
Affirms:
All h uman beings , ir respect ive of race, creed o r sex, have r ight
to pursu e their mater ial wel l -being and s pir i tual developm ent in
condi t ions of freedom and digni ty , of econom ic secur i ty andequal oppor tun i ty ;
Member countries central aim would be to attain the above
throu gh national and internat ional pol icy
41Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
42/137
International Labor Organization (ILO)
Assist Member countries to recognize:
Ful l emp loyment and rais ing s tandards o f l iv ing
Minimum wages, hou rs of w ork, wages and earn ing for l iv ing
Effect ive recog nit ion o f co l lect ive bargaining
Cooperat ion of m anagement of labor in cont inuo us
improv ement of prod uct ive ef f ic iency Extension of socia l secur i ty measures
Adequate protect ion of l i fe and health of w orkers
Provisio n of ch i ld welfare and materni ty pro tect ion
Equali ty of educat ion and vocat ional oppor tun i ty
42Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
43/137
International Labor Organization (ILO)
ILC International Labor Conference:
Supreme body of ILO
Each member country send 4 delegates 2 from State and 1
each representing employers and workers
43Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
44/137
International Labor Organization
INDIA AND THE ILO:
Ind ia is one of the founding members of ILO
ILO act iv i t ies have impacted IR in India in tw o important ways:
Ratif icat ion of the ILO con vent ion s and/or recommendationsform ed the basis for many labor legislat ion s
Requirement of the ILO to have representat ion from non-
government delegates helped to organize the employee and
employer group s
44Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
45/137
International Labor Organization
CORE CONVENTIONS OF THE ILO:
ILO has made a total Eight Con vent ion s as Core Convent ion s
or Human Rights Convent ions.
INDIA HAS RATIFIED FOUR OF THE EIGHT CORE
CONVENTIONS: Forced Labor Con vent ion (No.29)
Equal Remunerat ion Convent ion (No.100)
Abol i t ion o f Forced Labor Convent io n (No.105)
Discr im inat ion (Emp loym ent Occupat ion) Convent ion (No.111)
45Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
46/137
International Labor Organization
OTHER CORE CONVENTIONS OF THE ILO YET TO BE
RATIFIED BY INDIA:
Freedom of A ssoc iat ion and Right to organize (No.87)
Right to Col lect ive Bargaining (No.98)
Minimum Wage Convent ion (No.138)
Wors t Form o f Chi ld Labo r Convent ion (No.182)
IN RESPECT OF OTHER CONVENTIONS:
By 2004, India has rat if ied 39 includ ing 4 Core Convent ions of
the 184 Convent ion s
46Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
47/137
International Labor Organization
International Labor Standards and their influence on Indian
Labor Legislation:
Conditions of work
Hours of work in:
Industry , Mines, Road Transport , Commerce and Off ices andOther Establ ishments
Weekly Rest
Holidays w ith Pay
Wages
Protect ion of wages
Minimum wages
47Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
48/137
International Labor Organization
International Labor Standards and their influence on Indian
Labor Legislation:
LABOR ADMINISTRATION AND INSPECTION
EMPLOYMENT OF CHILDREN AND YOUNG PERSONS:
Minimum age of employment
Medical Examinat ion
Night Work
Preparat ion of employment
Worst form of chi ld labor
48Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
49/137
International Labor Organization
International Labor Standards and their influence on Indian
Labor Legislation:
EMPLOYMENT OF WOMEN
Materni ty Protect ion
Night work
Employm ent in un heal thy processes
Equal Pay
HEALTH, SAFETY AND WELFARE
Safety
Indus tr ial Hyg iene and Health
welfare
49Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
50/137
International Labor Organization
International Labor Standards and their influence on Indian
Labor Legislation:
SOCIAL SECURITY
Workmens Compensation
Sickn ess Insurance
Invalidity, Old Age and Survivors Insurance
Unemployment Provis ion
EMPLOYMENT AND UNEMPLOYMENT
Employm ent Off ices
Forced Labor
50Prof. T.K. Goon
I i l L b O i i
-
7/28/2019 IR & LL for Sem III for Students
51/137
International Labor Organization
Problems of Ratification:
Member countr ies can be grouped as:
Coun tr ies with Higher Labo r Standards
Countr ies having Federal Set-up
Coun tr ies where subject matter of Conv ent ions are regulated
by Col lect ive Agreements; and Indu str ia l ly Back -ward countr ies
51Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
52/137
3.Industrial Relations in India
Phases of IR in India & IRMachineries In India
52Prof. T.K. Goon
I d t i l R l ti i I di
-
7/28/2019 IR & LL for Sem III for Students
53/137
Industrial Relations in India
PHASE OF IR IN INDIA :
1. Pre- independence Phase
2. The protective phase (1947 56)
3. The consolidation phase (1956-65)
4. The conflict ridden phase (1965 -1977)
5. The directionless phase (1977 1980)6. The productivity - Efficiency- Quality-orientation phase (1981
1990)
7. The competitive phase (post 1990)
53Prof. T.K. Goon
I d t i l R l ti i I di
-
7/28/2019 IR & LL for Sem III for Students
54/137
Industrial Relations in India
FORCES SHAPING IR SYSTEM IN INDIA:
The colonial history
Governments role in IR preventive and regulatory
India being a founder member of ILO
Political movement for Freedom and labor participation
Worker-centric State policies Protection of domestic industries important substitution
Multiplicity of TUs and political affiliation of TUs
Labor in concurrent list in COI
54Prof. T.K. Goon
I d t i l R l ti i I di
-
7/28/2019 IR & LL for Sem III for Students
55/137
Industrial Relations in India
BASIC CHARACTERISTICS OF IR SYSTEM IN INDIA:
Overall control through regulatory provisions
Regulated primarily through legislations
Though the laws promulgated are extensive, they are
confounded with serious ambiguities and gaps
Unionization largely restricted to organized sector
Most unions have political affiliations
Multiplicity of unions and external leadership
State intervention has continued to prevail since time of
Independence, although in the last decade, it has shown a
declining trend
55Prof. T.K. Goon
I d t i l R l ti i I di
-
7/28/2019 IR & LL for Sem III for Students
56/137
Industrial Relations in India
Basic Characterist ic s of IR System in Ind ia:
Marked difference in labor management relations in differentstates, organized and unorganized sectors, private and private
enterprises and multinationals and domestic companies
There is no National IR policy
Collective Bargaining is more a matter of optional practice with
no statutory backing
The changes brought in by the New Economic Policy have
resulted in changes in the IR structure
The heterogeneity of the emerging workforce has made it
difficult to establish standards or uniform IR practices in the
Indian industry.
56Prof. T.K. Goon
I d t i l R l ti i I di
-
7/28/2019 IR & LL for Sem III for Students
57/137
Industrial Relations in India
BIPARTISM:
A system of IR where social and labor issues are discussed
between Employee Groups (Trade Unions) and Employer/
Employers Groups (Management) usually at the Enterprise
level
TRIPARTISM:
A system of Consultations amongst three actors of IR:
Employers, Employees and the State
Can take place at either or both macro and micro level;
A binding spirit of mutuality and reciprocity
Tripartism is an important feature and cornerstone of the IRsystem and Policy in India
To give shape to this element of policy, a number of bodies
were created:
57Prof. T.K. Goon
Industrial Relations in India
-
7/28/2019 IR & LL for Sem III for Students
58/137
Industrial Relations in India
Important tripartite bodies in India:
Indian Labor Conference (ILC)
Standing Labor Committee (SLC)
Committee on Conventions
The Industrial Committees
58Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
59/137
Industrial Relations Machineries in India
Central Level:
Ministry of Labor Central Labor Commissioner (CLC) and its offices in various
Regions (RLC) and ALC
Conciliation Officers
State Level
Ministry of Labor
State Labor Commissioner and ALC
Labor Enforcement Officers (LEOs)
Conciliation Officers
59Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
60/137
Industrial Relations Machineries in India
UNDER VARIOUS LABOR LEGISLATIONS:
Conc i l iat ion Off icer
ALC and RLC
Board of Conci l iat ion
Labor Cour ts
Regional PF Comm issio ner
Commissioner under Employees Compensation Act
Chief Factor ies Insp ector under the Facto r ies Act
Au thor i t ies as prescr ibed un der PoW A ct, Min imum Wages Act ,
Gratui ty Act, Shops & Establ ishments Ac t, ESI Ac t, ContractLabor Ac t etc.
60Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
61/137
Industrial Relations Machineries in India
JUDICIAL MACHINERIES:
Distr ic t Cour t
High Cour t
Supreme Court
61Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
62/137
-
7/28/2019 IR & LL for Sem III for Students
63/137
4. Global Industrial Relations
Major Industrialized Economies
63Prof. T.K. Goon
Global Industrial Relations
-
7/28/2019 IR & LL for Sem III for Students
64/137
Global Industrial Relations
In most industrialized countries, initial primary goal of IR
system was to maintain labor peaceand more generallyindu str ia l stabi l i ty
In many countries, IR system began to be institutionalized only
in post-war period, coinciding with independence of some of
the countries
Factors affecting across industrialized work:
Decentral ization of bargainin g
Movement towards increased f lexibi l i ty in wages, labordeployment and wo rkplace pract ices
64Prof. T.K. Goon
Global Industrial Relations
-
7/28/2019 IR & LL for Sem III for Students
65/137
Global Industrial Relations
FACTORS INFLUENCING IR FRAME WORK IN MAJOR
ECONOMIES:
Globalization
Imp act of Informat ion Technology
Changing demog raphic p rof i le of workers
Restructu r ing of industr ia l enterpr ises
Emergence of kn ow ledge economies and know ledge work ers Outsourc ing of non-core act iv i t ies
Uncer ta in ty in trade union movement
LEADING TO:
Decentral izat ion of Bargaining
Increased f lexibi l i ty in wages, labor deployment and w orkplace
pract ices.
65Prof. T.K. Goon
IR in UK
-
7/28/2019 IR & LL for Sem III for Students
66/137
IR in UK
Early 20thCentury:
Largely shaped around chal lenge of staple industry
Resulted in indu stry level col lect ive bargaining to take care of
the twin p roblem
Post war per iod: Bargain ing took place mo re and mo re at indu stry level
Hardly any sc ope of CB at enterpr ise level
Post 1979 and Thatcher ism:
Indu str ia l Chaos & Strong -arm tact ics of Tus
Passin g of Emp loym ent Relat ions Ac t (1979)
Marget Thatchers Economic and Political Philosophy of
reduc ed state intervention , Free Market and En trepreneurism66Prof. T.K. Goon
IR in UK
-
7/28/2019 IR & LL for Sem III for Students
67/137
IR in UK
Post 1979 and Thatcher ism:
Passin g of Emp loym ent Relat ions Ac t (1979)
Margaret Thatchers Economic and Political Philosophy of
reduc ed state intervention , Free Market and En trepreneurism
Resulted in:
Industr ia l Chaos & Strong -arm tact ics of Tus
Character ist ics of Tus in B ri tain:
Tradit ion o f Voluntar ism
Representat ion of workers through TU Off icers at workp laces
in the form of shop steward;
TU membership on occu pat ional rather than indus tr ia l l ines.
67Prof. T.K. Goon
IR in EU
-
7/28/2019 IR & LL for Sem III for Students
68/137
IR in EU
EC attemptin g a pool ing o f research on IR structures,
pro cesses, laws and pract ices in Member Coun tr ies with a viewto b r ing in g radual uni formi ty on larger pol icy matters
pertain ing to IR
Character ist ics o f TUs in EU:
Dist inct m ovement towards TU organizat ion at pan-EU level;
Some diversi ty in National level , effor ts are on at some sort of
integrat ion. ETUC set up in that direct ion
Unions in most m ember countr ies are organized on a sectora l
or oc cupat ional basis; Blu e-col lar un ion los ing inf luence and wh ite col lar unions
gaining signi f icance.
68Prof. T.K. Goon
IR in USA
-
7/28/2019 IR & LL for Sem III for Students
69/137
IR in USA
National and B us iness Culture : Ethnocentr ic
IR in USA paral lels in development of TUs, organized labor and
labor legislat ions, as it do es elsewhere;
Major Legislat ions :
The Norris L aGuardia Ac t, 1932
The Wagner A ct, 1935
The Taft Hartley A ct, 1947
The Landrum Griff in A ct, 1959
Trade Unions in USA:
AFL-CIO : American Federat ion of Labor And Congress o f
Ind us tr ial Organizations (1955); larges t federation s of unio ns in
USA
69Prof. T.K. Goon
IR in Australia
-
7/28/2019 IR & LL for Sem III for Students
70/137
IR in Australia
Bo th Federal and State Governments can legislate on labor
matters;
Oldest legislation : Con ci l iat ion and A rbi trat ion Act, 1904;
This was replaced in 1988 w ith Industr ial Relation s Ac t, 1988
This act requires federal trade unions to register themselves
w ith registrar to be able to take assistance of arbi trat ion
process and other legal r ights f lowing from the act .
Most s igni f icant is Wo rkplace Relat ions Ac t 1996 object ive tosett lement of conf l icts and dispu tes at wo rkplace itsel f .
70Prof. T.K. Goon
IR in China
-
7/28/2019 IR & LL for Sem III for Students
71/137
IR in China
Histor ical ly main ch aracter ist ics of th e IR System inc ludes:
State owner sh ip of indus tr ial enterpr ises;
Imp l ic i t guarantee of emp loyment for workers;
Central ized wage structu re;
A rigid labor market with l i t t le inter-enterpr ise or inter-regional m obi l i ty ;
Abs ence of pr ice- or eff ic iency-dr iven co ntrols o ver the indu stry
Post 1978, system is in a state of ferment, more part icular ly
sin ce 1983;
Government enacted a new labor law in 1994 essent ial ly to
create a new IR System with in thesocialist market economybut implementat ion has not been uni form.
71Prof. T.K. Goon
IR in Japan
-
7/28/2019 IR & LL for Sem III for Students
72/137
IR in Japan
IR System is an ins t i tut ional ized one
Histor ical ly i t focu sed :
Enterpr ise Unions
Lifet ime- employment systems ,
Broad based training; and
Senior i ty based wages
Key ou tcome of IR System is s imul taneous achievement of
stabi l i ty in labor-market and consid erable func t ional f lexibi l i ty
in workp lacelevel IR
Then c ame sudden and dramatic increase in outso urc ing wi th in
Japan, termed as work commissioning;
Result :
Increase in wage flexibi l i ty
Result ing into reduced power of trade unions
72Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
73/137
-
7/28/2019 IR & LL for Sem III for Students
74/137
EMERGING INTERNATIONAL TRENDS IN IR:
-
7/28/2019 IR & LL for Sem III for Students
75/137
Decl ine in un ion m embership and union densi ty
Consol idat ion and merger of trade unions
Variat ions in col lect ive bargaining pract ices
A shift in the relationship from employers organizations and
t rade unions to emp loyer and an individ ual emplo yee
Organization restructuring and emergence of atypical forms
of emp loyment.
75Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
76/137
Changing Characteristics of Industry and Workforce in India
-
7/28/2019 IR & LL for Sem III for Students
77/137
g g y
MAJOR FORCES DRIVING INDUSTRIAL CHANGE:
Computerization
Automation
Rationalization
Globalization
EFFECT OF INDUSTRIAL CHANGE ON LABOR MARKET:
Changed occupational structure
Changed nature of work
Integrated job markets leading to a global occupational
structure
Improved education facilitating economic growth.
77Prof. T.K. Goon
Changing Characteristics of Industry and Workforce in India
-
7/28/2019 IR & LL for Sem III for Students
78/137
g g y
RESULT OF CHANGES IN TECHNOLOGY:
Mechanization
Automation
Information-based services
Disintermediation
ABOVE IN TURN IS FORCING:
Rationalization of manpower
Labor substitution in case of automation
78Prof. T.K. Goon
Changing Characteristics of Industry and Workforce in India
-
7/28/2019 IR & LL for Sem III for Students
79/137
g g y
Participation rate:
Proportion of people in labor force out of total cohort
population:
In 1999-2000:
7.32% of labor force i.e. 26.58 million were unemployed
A large proportion of those employed are in subsistence
employment
Only 8% of those employed are in organized sector
Education and skill profile of current workforce is still poor.
79Prof. T.K. Goon
Changing Characteristics of Industry and Workforce in India
-
7/28/2019 IR & LL for Sem III for Students
80/137
MAIN CHANGES IN LABOR DEMOGRAPHICS:
Decline in participation rates across age groups
Entry of the younger age groups into labor force
More active participation of older people in labor force
A reduction in differentials between male and female
participation
Relatively low education and skill levels
An attitudinal change towards Technical and Vocational
courses.
80Prof. T.K. Goon
Changing Characteristics of Industry and Workforce in India
-
7/28/2019 IR & LL for Sem III for Students
81/137
g g y
MAJOR TRENDS IN UNORGANIZED SECTOR
93% of employees in unorganized sector
Absence of an institutionalized IR system
Labor legislations not for smaller establishments
Social security --->out of reach
Absence of unions does not provide any opportunity forcollective bargaining
81Prof. T.K. Goon
Changing Characteristics of Industry and Workforce in India
-
7/28/2019 IR & LL for Sem III for Students
82/137
TRENDS IN INDUSTRY:
Profit and market leadership are prime drivers, not social
objectives
Changes on market ad technology are throwing up newer
competency requirements
Large employment opportunities in private sector
Public sector employment faces stagnation and decline
Government employment is practically NIL
More opportunities in tertiary sectors
82Prof. T.K. Goon
Changing Characteristics of Industry and Workforce in India
-
7/28/2019 IR & LL for Sem III for Students
83/137
Growing internationalization of business and workforce has its
impact on HRM in terms of:
Problems of unfami l iar laws;
Languages,
Pract ices,
Att i tudes, Management s tyles,
Work eth ics and more
HR & IR professionals Challenge :
To deal wi th m ore and mo re heterogeneous sets of w orkers;
and
More involvement in employees personal life
83Prof. T.K. Goon
Changing Characteristics of Industry and Workforce in India
-
7/28/2019 IR & LL for Sem III for Students
84/137
Liberalization has led to Large scale reorganization of business
in terms of:
Expansions
Mergers and Acquis i t ions (M&A );
Jo int ventures (JVc);
Takeovers Internal restru ctu r ing of o rganizat ions
Situation is dynamics as well as uncertain and the
challenges for HR & IR professionals :
To manage employees anxiety, uncertainties, insecurities andfears.
84Prof. T.K. Goon
Changing Characteristics of Industry and Workforce in India
-
7/28/2019 IR & LL for Sem III for Students
85/137
There are signs of changing demographics of the workforce
reflected in:
Age and Qual if icat ion mix;
Dual career couples;
Large chun k of young blood w i th contrast ing ethos of work; \ Growing number of women in workforce;
Work ing m others ;
More educated and aware workers;
Growing n umber of able superannuated workforce
85Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
86/137
6. Trade Unionism and Trade Unions
86Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
87/137
Trade Unionism, developed as an effort of the laborers to
organize during the Industrial Revolution era, promoted the
Factory System o f Product ionand a laissez-faireapproach ofthe State towards participants of Factory System
BASIC THEORIES EXPLAINING TRADE UNIONISM:
Revolut ionary Ownership based
Industr ia l Democracy , Rights b ased
Business Economic Power
Socio-psyc hologica l belongingness
87Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
88/137
REASONS FOR JOINING A TRADE UNION:
1. To attain ec on om ic sec ur ity
2. To be ab le to imp ro ve bargain in g power
3. Fo r ven ti lat io n of workers g rievances
4. For an in fo rm ation med ium
5. To pro tec t unexpec ted econom ic needs
6. To satis fy soc ial needs
7. For secur ing power
88Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
89/137
TOOLS OF TRADE UNIONISM:
Mutual insurance
Collect ive Bargaining
Legal enactment
Direct act ion
89Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
90/137
LINK BETWEEN POLITICS AND TRADE UNIONS:
Politically committed members account for 15-20% of total
membership in a union, but their influence is high
Political parties and unions function in close cooperation, but
there is an essential difference between the two
TUs in India are fragmented due to their allegiance to different
political parties
90Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
91/137
RIGHTS OF TUS:
ILO recognized the rights of association through Freedom of
Association and Protection of the Rights to Organize
Convention (Convention No.87)
Many countries have not ratified this convention
91Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
92/137
MAJOR OBJECTIVES OF TUS:
1. Ens ure s ec ur ity o f work ers
2. Ob tain better econom ic retu rn s
3. Im prove work ing cond it ions
4. Power to in flu en ce managemen t
5. Power to in flu en ce governmen t
92Prof. T.K. Goon
Role of Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
93/137
Major A ims , Object ives & Ro le of Trade Union s
1. To p romo te and p ro tec t workers interes t th rough co ll ec t ive
act ion
2. To en su re sec urity of work ers
3. To obtain better econom ic retu rn s 4. To Impro ve work in g co nd it io ns
5. To ensu re heal th , safety and wel fare o f workers at the work
place
6. Power to in flu en ce managemen t
7. Power to in flu en ce governmen t
93Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
94/137
BROAD AREAS OF TU FUNCTIONS:
Organizational
Economic
Polit ical- legal
Welfare
94Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
95/137
SPECIFIC TU FUNCTIONS:
1. Pro tec t Econom ic in teres ts o f th e members
2. In fl uence soc ial relat ionsh ips at the workplace
3. In fluence po lic ies at Nat ional level
4. Co llec tive ac tion fo r sec tional in ter es t
5. Co llabo rat ion fo r p roduc tiv it y and gain shar ing6. Enhan cin g p ro fes sio nal s tatu s
7. Research
8. Commun icat io n, welfare and educat io n
95Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
96/137
FEATURES OF AN EFFECTIVE TU:
Internal ly Democ rat ic
Have a stro ng leadership and large fol lower ship
Exhib i t a responsib i l i ty tow ards their workers members
Comm it ted to promote industr ial peace and harmon y
Inc l ined towards co l lect ive bargaining that is col laborat ive andnot compet it ive
Possess f inancial secur i ty
Adaptable to change
Trade unions may be classi f ied on the basis of purpo se and th e
purpo se of membership
96Prof. T.K. Goon
Trade Unionism and Trade Unions
-
7/28/2019 IR & LL for Sem III for Students
97/137
Features of an Effective TU:
TRADE UNIONS MAY BE CLASSIFIED ON THE BASIS OF
PURPOSE AND THE PURPOSE OF MEMBERSHIP:
ON THE BASIS OF PURPOSE:
Regulatory
Reformist Revolutionary
ON THE BASIS OF MEMBERSHIP:
Craft
Industry
Staff
97Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
98/137
6. Trade Unions in India
98Prof. T.K. Goon
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
99/137
Indian TUs are very fragmented
Early splits in Indian TUs tended to be on ideological grounds
Recent fragmentations have centered on personalities and
occasionally on regional and caste considerations
Trade union activities are restricted to industrial areas
AITUC was formed in 1920 on a national basis
PHASES IN THE GROWTH OF TUS:
First post-independence growth phase
Second post-independence growth phase (1960s -1980s)
Pre-liberalization era (1980-1991)
Post liberalization era (beyond 1991)
99Prof. T.K. Goon
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
100/137
UNION SECURITY:
Through membership that is sought by providing benefits of
collective bargaining only to those who remain their members
Union derives its meaning and strength from number of
members it has;
Unions (and management) look for measures that enhance
security i.e. maintaining a healthy membership in comparison
to others
Free riders are discouraged
100Prof. T.K. Goon
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
101/137
UNION SECURITY:
CAN BE ACHIEVED THROUGH PRACTICES SUCH AS:
Recognition (by management) as the sole bargaining agent
Maintenance of membership (preferential shop, agency shop,
closed shop, open shop, union shop)
Check-off system
101Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
102/137
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
103/137
MAJOR PROBLEMS FACED BY TUS IN INDIA:
Outsid e or Pol i t ical Leadership
Mult ip l ic i ty of un ions and in ter-un ion r ivalry
Small size of the un ions
Low membersh ip
Uneven grow th Poor f inancial pos i t ion
Low level of know ledge of labor legislat ion
Fear of vict im izat ion
103Prof. T.K. Goon
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
104/137
TRADE UNIONISM IN INDIA:
Unionization according to Industry / Region / State
70,000 registered TUs, large number not registered
2% of workers unionized
PSUs: Industry-level collective bargaining in coal / steel/oil and
gas Enterprise wise elsewhere
Private sector : Plant level Collective Bargaining Union density according to the size of the industry
Craft unions in the government transport sector
Low unionization in SMEs
Twin battle against inter-union competition and assertive
management
Unionization in India under recession
104Prof. T.K. Goon
TRADE UNIONS IN INDIA
-
7/28/2019 IR & LL for Sem III for Students
105/137
REGISTRATION AND RECOGNITION
10% of workers members or 100, subject to a minimum ofseven, can apply for Registration of a union
One-third of the office bearers can be outsiders;
Trade Union can raise and maintain political funds as aseparate account;
Office bearers of a Registered TU are exempt from civil and
criminal liability;
But accountable under the Consumers Protection Act.
105Prof. T.K. Goon
TRADE UNIONS IN INDIA
-
7/28/2019 IR & LL for Sem III for Students
106/137
REGISTRATION AND RECOGNITION
Registration is with the Registrar of TUs to enjoy certainprivileges
Recognition is by the management for collective bargaining
TU Act does not have provision of Recognition of TU
Certain State have enacted Law for Recognition viz Maharastra,Gujarat, Rajasthan and UP
Certain State have formulated recognition rules viz AP, Orissa
and WB.
In India all registered TUs have de facto, not de jure
recogn it ion. De facto m eansvirtually and De juremeans by law.
106Prof. T.K. Goon
TRADE UNIONS IN INDIA
-
7/28/2019 IR & LL for Sem III for Students
107/137
PRIVILEGES OF RECOGNIZED UNIONS
Right to represent their members grievances
Right to collective bargaining / agreements on wages, working
conditions etc.
May ask for special benefits like office space and
infrastructure, notice board, time off for union work as well as
financial and other support for education, training and other
non-bargaining activities
107Prof. T.K. Goon
TRADE UNIONS IN INDIA
-
7/28/2019 IR & LL for Sem III for Students
108/137
CLOSED SHOP / OPEN SHOP
Closed shop means union membership is pre-requisite foremployment.
UK had it, now illegal under EU Law.
Open Shop means joining union membership is after
employment within a specified period.
CHECK OFF
Means a system by which workers give in writing to deduct
union membership fees from their wages
Neither TU Act nor Payment of Wages Act explicitly provides
for it.
Not legal for employer to deduct union subscription without
members authorization and unions request.108Prof. T.K. Goon
TRADE UNIONS IN INDIA
-
7/28/2019 IR & LL for Sem III for Students
109/137
CODE OF DISCIPLINE
15th
Session of Indian Labour Conference (1957) laid down aset of principles for maintaining harmonious inter-union
relationship:
Every employee in an indus try or unit shal l have freedom and
r ight to jo in the union of his/her cho ice.
No coercion shal l be exercised in this m atter . There shall be no dual membership o f un ions
There shall be unreserved acceptance of and respect for the
democ rat ic funct ion ing o f TUs
There shall be regular and demo crat ic elect ions o f execut ive
bodies and o ff ice bearers of TUs
Ignorance and backw ardness of workers shal l not be exploi ted
by an organizat ion.
109Prof. T.K. Goon
TRADE UNIONS IN INDIA
-
7/28/2019 IR & LL for Sem III for Students
110/137
CODE OF DISCIPLINE
No o rganizat ion shal l make excessive or extravagant deamnd s Casteeism , communalism and provinc ial ism s hall be
eschewed by al l unions.
There shall be no violence, coercion, int im idat ion or p ersonal
vi l i f icat ion in inter-un ion deal ings.
110Prof. T.K. Goon
TRADE UNIONS IN INDIA
-
7/28/2019 IR & LL for Sem III for Students
111/137
CODE OF DISCIPLINE & CRITERIA FOR RECOGNITION OF TU
Where there is more than one union , a union c laim ingrecogn it ion sho uld be of one year old. For one union, this
condi t ion not apply;
Membership o f unio n sh ould have at least 15% of the wo rkers
A representat ive union shou ld have at least 25% of workers of
that industry in that area. Recogn i t ion shou ld remain valid for 2 yrs
Union w i th largest membership should be recogn ized
If a TU is not aff i l iated to any o f the four central organizat ions
of labor, issue of recogn it ion would be dealt separately.
In an industry in an area, i f a union o f that indus try enjoys 50%
or m ore membership, that union wi l l have r ight to deal wi th
issu es of local interests
Only unions w hich ob served Code of Discip l ine would be
recognized. 111Prof. T.K. Goon
TRADE UNIONS IN INDIA - CHALLENGES
-
7/28/2019 IR & LL for Sem III for Students
112/137
INTERNAL CHALLENGES
Low Membership Density Formal and Informal Sector Declining Union Membership
Reprentativity AITUC, CITU, INTUC, BMS, HMS etc.
Poor Finances
Major sources and Uses of Funds
Financial Strength of Trade Unions
112Prof. T.K. Goon
TRADE UNIONS IN INDIA - CHALLENGES
-
7/28/2019 IR & LL for Sem III for Students
113/137
EXTERNAL CHALLENGES
Global Competition Rapid Changes in Technology
Shifting Attitudes of Government
Managerial Strategies and HRM Policies
Assertion of their Rights by the Community and Consumers
ORGANIZATIONAL ISSUES
Leadership
Changing Demographics
Internal Democracy
Declining Union Power and Influence
113Prof. T.K. Goon
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
114/137
TRADE UNIONS ACT, 1926:
Enacted mainly in deference to ILO Convention, in recognition
of the right of workers to organize and also to strengthenbargaining power of workers
Act aims to provide for registration of TUs and in certain
aspects, to define the law relating to registered TUs
OBJECTIVES OF THE ACT:
Lay down conditions governing registration of TUs
10% or 100 subject to min imum of seven members can apply
for registrat ion .
Define obligations of a registered TU
Prescribe rights and liabilities of a registered TU
114Prof. T.K. Goon
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
115/137
SOME OBLIGATIONS & DUTIES OF REGISTERED TRADE
UNIONS:
Not more than 1/3 rd outsiders can be office bearers;
There has to be a separate fund for political purpose;
Must encourage collective bargaining
Must protect interest of its members
PROTECTION TO OFFICE BEARERS OF REGISTERED TRADE
UNION:
Office bearers are exempt from civil and criminal liability; butaccountable under Consumer Protection Act
115Prof. T.K. Goon
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
116/137
MANAGERIAL TRADE UNIONISM:
TUs in Executive cadre like Civil services, doctors, electricityboard, bank officers, merchant navy officers etc.
These associations among white-collared workers more
pronounced in public sector.
116Prof. T.K. Goon
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
117/137
RIGHTS OF RECOGNIZED TRADE UNIONS:
Right to raise issue with the management
Right to collect membership fees within the premises of the
organization
Ability to demand check-off facility
Ability to put up Notice Board on premises for union
announcements
Ability to hold discussions with members at a suitable placewithin the premises
117Prof. T.K. Goon
Trade Unions in India
-
7/28/2019 IR & LL for Sem III for Students
118/137
Rights of Recognized Trade Unions:
Right to discuss members grievances with employer
Ability to inspect beforehand a place of employment or work of
its members
Nomination of its representatives on Committees formed by
Management for industrial relations purpose as well as
statutory bipartite committees
118Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
119/137
7. Conflict Management -
Causes, Approach & Leadership Style
119Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
120/137
Conflict Management
-
7/28/2019 IR & LL for Sem III for Students
121/137
Specific causes of conflict:
Economic: Terms o f emp loyment
Hours of work
Shif t work ing
Promot ion
Demotion Layoffs
Retrenchment
Dismissal
Job-secur i ty
Retirement etc.
121Prof. T.K. Goon
Conflict Management
-
7/28/2019 IR & LL for Sem III for Students
122/137
Specific causes of conflict:
Institutional: Recogn it ion of TUs
Membership o f TUs
Subjects of CB
Bargaining Unit Union Secur i ty
Unfair pract ices
122Prof. T.K. Goon
Conflict Management
-
7/28/2019 IR & LL for Sem III for Students
123/137
Specific causes of conflict:
Psychological: Clash of p ersonal i t ies
Behavioral maladjustm ent
Demands for recognition of workers personality
Au thor i tar ian admin istrat ion Lack o f sc ope for self expression and par t ic ipat ion
Undue emphasis on disc ip l ines
123Prof. T.K. Goon
Conflict Management
-
7/28/2019 IR & LL for Sem III for Students
124/137
Specific causes of conflict:
Denial of Legal and Contractual Rights:
Non-implementat ion of labor laws and regulat ions , standin g
orders, adjudicat ion awards and so on;
Violation of collective agreements, wage boards
recommendat ions, customer r ights and pr iv i leges and so on
124Prof. T.K. Goon
Modes of resolving conflict
-
7/28/2019 IR & LL for Sem III for Students
125/137
AVOIDANCE MODES
APPROACH MODE
125Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
126/137
Modes of resolving conflict
-
7/28/2019 IR & LL for Sem III for Students
127/137
APPROACH MODE
Take more aggressive or understanding forms byusing positive steps to confront conflicts and find
solutions by way of:
1. Confrontat ion2. Compromise
3. Arb i trat ion
4. Negot iat ion
127Prof. T.K. Goon
Avoidance Mode
-
7/28/2019 IR & LL for Sem III for Students
128/137
1. RESIGNATION
Extreme avoidance of a conflict with a sense of helplessness
Conflict is seen as a part of reality, arising out of unreasonable
stand of out-group, usually seen as hostile.
Another form of Resignation is to ignore the conflict
Also denying unpleasant situation in the hope that conflict will
get resolved itself in due course. Many organizations resigns to recurring conflicts with Trade
Unions and do not attempt to resolve them, hoping solutions
may emerge in due course of time and other will understand
some day.
128Prof. T.K. Goon
Avoidance Mode
-
7/28/2019 IR & LL for Sem III for Students
129/137
2. WITHDRAWAL
Getting away from a conflict
Out-group is seen as belligerent but still open to reason
One way to get away from the conflict is to avoid situation ofpotential conflict, by leaving the two groups to work together.
Another way to withdraw from collaborative work with out-group
Another way is to withdraw from a conflict when it takes place.
Physical separation is a third way to withdraw
Fourth way of withdrawal is to define boundaries of interactionwith out-group and make arrangement to limit these.
Psychological withdrawal when one of the spouses stop
arguing and keep quiet whenever there is a difference ofopinion do not sort out the difference but even leave thehouse for sometime (physical withdrawal) herself
129Prof. T.K. Goon
Avoidance Mode
-
7/28/2019 IR & LL for Sem III for Students
130/137
3. DEFUSION
Buying time for dealing with a conflict
May take several forms
Let the participants cool down before taking up the real issue
Allow passage of time to settle down the emotions
Best example separate statehood of Telengana PM allowed
time to defuse the situation Another way to appeal to good sense of both groups, to the
sentiment that both are part of a larger group and have
common interests, interdependence, mutuality etc
Another way to develop temporary arrangement of interaction
through a third group creating buffer to absorb excessemotions.
130Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
131/137
-
7/28/2019 IR & LL for Sem III for Students
132/137
Approach Mode
-
7/28/2019 IR & LL for Sem III for Students
133/137
6. COMPROMISE
A process of sharing the gain without resolving the conflict.
Can be done by Bargaining
Often used in conflicts between managements and unions
If the out group is seen as being interested in peace (and hence
as reasonable), attempt is made to seek a compromise
Example: If management is interested in fulfilling certain export orders,
they may agree to increase incentive for a particular period and
union may agree to work for longer hours for that time
133Prof. T.K. Goon
Approach Mode
-
7/28/2019 IR & LL for Sem III for Students
134/137
7. ARBITRATION
A third party giving an award acceptable to both groups
If out group is perceived as being belligerent and not interested
in peace, and yet not totally unreasonable, arbitration is
resorted to;
Usually the conflict remains unresolved it is only postponed
for a time
In many managementunion conflicts, arbitration by labor
commissioner is sought.
134Prof. T.K. Goon
Approach Mode
-
7/28/2019 IR & LL for Sem III for Students
135/137
8. NEGOTIATION
Continuous interaction and dialogue between groups in order
to find a solution with maximum advantages to both
Most satisfactory solution can emerge in confronting the
problem and exploring alternative solutions
Possible when out group is perceived both as interested in
peace and as reasonable. Number of steps are involved in the process:
Unfreezing, Being Open, Learning Empathy, Searching for
common themes, Generating Alternatives, Searching for a
solution, Breaking the deadlock, Committing to the solution
within the group, and Committing the Whole Group
135Prof. T.K. Goon
-
7/28/2019 IR & LL for Sem III for Students
136/137
Conflict Management Style
-
7/28/2019 IR & LL for Sem III for Students
137/137
Mode Perception of Out-group Style
Approach Unreasonable Opposed to our
interest, and
belligerent
Confrontation
Approach Open to reason Opposed to our
interests, and
belligerent
Arbitration
Approach Unreasonable Having own
interests, but
interested in
peace
Compromise
Approach Open to reason Having owninterests, but
interested in
Negotiation