Industrial Relation Industrial Relation Management in Management in

INDIAINDIABy-----By-----

BRAJESH KUMAR PARASHAR BRAJESH KUMAR PARASHAR Dedicated to my loving son Dedicated to my loving son

“ISHAN Abhisheka parashar” “ISHAN Abhisheka parashar”

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INDUSTRIAL RELATIONINDUSTRIAL RELATION IRIR

IR is nothing butIR is nothing but

““all aspects of people at workall aspects of people at work” ”

oror ““thethe functional employment functional employment

relationships of employee & employer relationships of employee & employer at workat work” ”

The IRThe IR System provides the System provides the frameworkframework for for the functional relationship between the the functional relationship between the Management & Employees in any Management & Employees in any Industrial Society.Industrial Society.

IRsIRs are used to signify the collective are used to signify the collective relationships between relationships between Management & Management & WorkersWorkers in Industrial Prospective. Usually, in Industrial Prospective. Usually, the term IRs is used to coverthe term IRs is used to cover

such features of industrial life as such features of industrial life as Trade Unionism (TU)Trade Unionism (TU)

Collective Bargaining (CB)Collective Bargaining (CB) Employee Participation in Employee Participation in ManagementManagement

Discipline & Grievance HandlingDiscipline & Grievance Handling Industrial Disputes & Interpretation Industrial Disputes & Interpretation

of Labor Laws & Rules and Code of of Labor Laws & Rules and Code of Conduct.Conduct.  

Actors of IR in INDIAActors of IR in INDIA The management which defines the relationship among The management which defines the relationship among

the Employer (Employer Association), Employees (Trade the Employer (Employer Association), Employees (Trade union), and the Government (State) is called Industrial union), and the Government (State) is called Industrial Relation Management (IRM). Hence the main actors of IR Relation Management (IRM). Hence the main actors of IR areare

1.1. Employer/ Employer association/ ManagementEmployer/ Employer association/ Management2.2. Employees/ Trade UnionEmployees/ Trade Union

3.3. Government/ StateGovernment/ State

The IRs is anThe IRs is an ARTART, , the art of living together for the the art of living together for the purposes ofpurposes of PRODUCTIONPRODUCTION..

THE 3 MAIN ACTORS IN IR THE 3 MAIN ACTORS IN IR PROSPECTIVEPROSPECTIVE

Objectives of IRsObjectives of IRs1.1. To maintain & develop good Employee-Employer To maintain & develop good Employee-Employer

RelationsRelations

2.2. To establish Industrial Democracy.To establish Industrial Democracy.

3.3. To maintain Industrial Discipline among EmployeesTo maintain Industrial Discipline among Employees

4.4. To maintain Industrial Peace.To maintain Industrial Peace.

5.5. To avoid Industrial Conflicts (as for as possible).To avoid Industrial Conflicts (as for as possible).

6.6. To safeguard the interests of Labor & Management.To safeguard the interests of Labor & Management.

7.7. To help the Economical Development of Nation.To help the Economical Development of Nation.

8.8. To help the Govt. in making Rules & Regulations To help the Govt. in making Rules & Regulations (Laws).(Laws).

9.9. To develop constructive attitudes between TU & To develop constructive attitudes between TU & Management. Management.

10.10. To encourage CB as a means of Self-regulation.To encourage CB as a means of Self-regulation.

TU: it’s Meaning and TU: it’s Meaning and Definition!Definition!

Trade unions are associations of workers Trade unions are associations of workers and are formed with the intention of and are formed with the intention of protecting the workers against protecting the workers against exploitation of the employers and also to exploitation of the employers and also to improve the workers’ conditions. The improve the workers’ conditions. The industrial revolution in England and in industrial revolution in England and in other countries and the advent of the other countries and the advent of the factory system of production are greatly factory system of production are greatly responsible for the emergence of trade responsible for the emergence of trade unions. unions.

IRs consist of all those areas of HRM that involve relationships with employees – directly and/or through collective agreements where TUs are recognized.

A few definitions of TUA few definitions of TU TU is a “continuous association of wage earners TU is a “continuous association of wage earners

for the purpose of maintaining and improving for the purpose of maintaining and improving the conditions of their working lives.”—the conditions of their working lives.”—WebWeb

““A TU means an association of workers in one or A TU means an association of workers in one or more occupation— an association carried on more occupation— an association carried on mainly, for the purpose of protecting and mainly, for the purpose of protecting and advancing the members’ economic interests in advancing the members’ economic interests in connection with their daily work’.connection with their daily work’.——G.D.H. GoleG.D.H. Gole

A TU is a continuous association of persons in A TU is a continuous association of persons in industry, whether employers, employees or industry, whether employers, employees or independent workers—formed primarily for the independent workers—formed primarily for the purpose of the pursuit of the interest of its purpose of the pursuit of the interest of its members and of the trade they represent.—members and of the trade they represent.—The The Trade Union Act 1926Trade Union Act 1926

OBJECTIVES OF TUOBJECTIVES OF TU1.1. Wages & SalariesWages & Salaries

2.2. Working ConditionsWorking Conditions

3.3. DisciplineDiscipline

4.4. Personnel PoliciesPersonnel Policies

5.5. WelfareWelfare

6.6. Employee-Employer RelationsEmployee-Employer Relations

7.7. Negotiation MachineryNegotiation Machinery

8.8. Health & Safety MeasuresHealth & Safety Measures

AIMS OF TUAIMS OF TU TU aim to-

1. Secure fair wages for workers and improve their opportunities for promotion and training.

2. Safeguard security of tenure and improve their conditions of service.

3. Improve working and living conditions of workers.

4. Provide them educational, cultural and recreational facilities.

5. Facilitate technological advancement by broadening the understanding of the workers.

6. Help them in improving levels of production, productivity, discipline and high standard of living.

7. Promote individual and collective welfare and thus correlate the workers' interests with that of their industry.

PRINCIPLES of TUPRINCIPLES of TU

Methods of TUsMethods of TUs

Brief History of TU in INDIABrief History of TU in INDIA India is the abode of numerous acts and regulations for the

benefit of the TUs which bestow due powers to the working class. TUism has made its headway owing to growth of industrialization. TUism asserts collectively the rights of the workers. In industrially advanced countries trade unionism has made a great impact on the social, political and economic life but in India TUism is restricted to industrial areas and it is still in a stage of growth.

The earliest known TUs in India were the Bombay Millhand's Association formed in 1890, the Amalgamated Society of railway servants of India and Burma formed in 1897, Printers' Union formed in Calcutta in 1905, the Bombay Postal Union which was formed in 1907, the Kamgar Hitwardhak Sabha Bombay formed in 1910.

TU movement began in India after the end of Ist World War. After a decade following the end of Ist World War the pressing need for the coordination of the activities of the individual unions was recognised. Thus, the AITUC was formed in 1920 on a National Basis, the Central Labour Board, Bombay and the Bengal Trades Union Federation was formed in 1922. The All India Railwaymen's Federation was formed in the same year and this was followed by the creation of both Provincial and Central federations of unions of postal and telegraph employees. The origin of the passing of a TUs Act in India was the historic Buckingham Mill case of 1940 in which the Madras High Court granted an interim injunction against the Strike Committee of the Madras Labour Union forbidding them to induce certain workers to break their contracts of employment by refusing to return to work.

Brief History of TU in INDIABrief History of TU in INDIA TU leaders found that they were liable to prosecution

and imprisonment for bona fide union activities and it was felt that some legislation for the protection of TU was necessary. In March, 1921, Shri N. M. Joshi, then General Secretary of the All India Trade Union Congress, successfully moved a resolution in the Central Legislative Assembly recommending that Government should introduce legislation for the registration and protection of trade unions. Opposition from employers to the adoption of such a measure was, however, so great that it was not untill 1926 that the Indian TU Act was passed. For the safeguard of the rights of the labour class, the Indian Trade Unions Bill, 1925 was introduced in the Central Legislative Assembly to provide for the registration of TUs and in certain respects to define the law relating to registered TUs in Provinces of India. The Indian Trade Unions Bill, 1925 having been passed by the Legislature received its assent on 25th March, 1926. It came into force on 1st June, 1927 as the Indian Trade Unions Act, 1926 . By section 3 of the Indian Trade Unions (Amendment) Act, 1964 the word "Indian" has been omitted and now it is known as THE TRADE UNIONS ACT, 1926 .

Measures to Strengthen the Measures to Strengthen the TU Movement in IndiaTU Movement in India

The five measures to strengthen the TU The five measures to strengthen the TU movement in India are as follows: movement in India are as follows:

1. Maintaining Unity1. Maintaining Unity 2. Free from Political influence2. Free from Political influence 3. Workers Education3. Workers Education 4. Adequacy of Funds4. Adequacy of Funds 5. Welfare Activities for Workers.5. Welfare Activities for Workers.

Some Measures that can Some Measures that can Strengthen the TU Strengthen the TU movement in Indiamovement in India

1.1. Maintaining Unity Maintaining Unity

2.2. Free from Political influence Free from Political influence

3.3. Workers Education Workers Education

4.4. Adequacy of Funds Adequacy of Funds

5.5. Welfare Activities for Workers Welfare Activities for Workers

6 Phases of TU Movement 6 Phases of TU Movement in Indiain India

A. Pre-1918 PhaseA. Pre-1918 Phase The setting up of textiles and jute mills and laying of the The setting up of textiles and jute mills and laying of the

railways since 1850 payed the way for that emergence of railways since 1850 payed the way for that emergence of industrial activity and, in turn, labour movement in India. Some industrial activity and, in turn, labour movement in India. Some researchers have traced the origin of labour movement in India researchers have traced the origin of labour movement in India dated back to 1860. However, most of the writers on the dated back to 1860. However, most of the writers on the subject trace the history of labour movement in India since subject trace the history of labour movement in India since 1875.The first labour agitation, under the guidance and 1875.The first labour agitation, under the guidance and leadership of leadership of Mr. S. S. BengaleeMr. S. S. Bengalee, a social reformist and , a social reformist and philanthropist, started in Bombay in 1875 to protect against the philanthropist, started in Bombay in 1875 to protect against the appalling conditions of workers in factories, especially those of appalling conditions of workers in factories, especially those of women and children and appealed to the authorities to women and children and appealed to the authorities to introduce legislation for the amelioration of their working introduce legislation for the amelioration of their working conditions.conditions.

As a result, the first Factory Commission was appointed in As a result, the first Factory Commission was appointed in Bombay in the year 1875 and the first Factories Act was passed Bombay in the year 1875 and the first Factories Act was passed in 1881. in 1881. Mr. N. M. LokhandeMr. N. M. Lokhande may be said to be the founder of may be said to be the founder of organised labour movement in India who founded the first trade organised labour movement in India who founded the first trade union in the country, namely, the Bombay Mill Hands union in the country, namely, the Bombay Mill Hands Association (1890).This was followed by a series of associations Association (1890).This was followed by a series of associations such as the Amalgamated Society of Railway Servants in India such as the Amalgamated Society of Railway Servants in India (1897), The Printers’ Union of Calcutta (1905), The Madras and (1897), The Printers’ Union of Calcutta (1905), The Madras and Calcutta Postal Union (1907), and the Kamgar Hitwardhak Calcutta Postal Union (1907), and the Kamgar Hitwardhak Sabha (1910). All these unions aimed at promoting welfare Sabha (1910). All these unions aimed at promoting welfare facilities for workers and spreading literacy among them.facilities for workers and spreading literacy among them.

B. 1918-1924 PhaseB. 1918-1924 Phase The phase 1918-1924 is considered as the era The phase 1918-1924 is considered as the era

of formation of modem trade unionism in the of formation of modem trade unionism in the country. The trade union movement got country. The trade union movement got momentum just after the close of the World momentum just after the close of the World War I. The post war economic and political War I. The post war economic and political conditions contributed to the new awakening conditions contributed to the new awakening of class consciousness among the workers. of class consciousness among the workers. This led to the formation of TUs in the truly This led to the formation of TUs in the truly modem sense of the term.modem sense of the term.

As a result, Ahmedabad Textile Labour As a result, Ahmedabad Textile Labour Association (1917), led by Shrimati Ansuyaben Association (1917), led by Shrimati Ansuyaben Sarabhai; the Madras Labour Union (1918) led Sarabhai; the Madras Labour Union (1918) led by by B. P. Wadia,B. P. Wadia,Indian Seamen’s Union, Indian Seamen’s Union, Calcutta Clerk’s Union; and All India Postal Calcutta Clerk’s Union; and All India Postal and RMS Association were formed. This period and RMS Association were formed. This period in the history of TU Movement has been in the history of TU Movement has been described as the described as the Early Trade Union Period. Early Trade Union Period.

C. 1925-1934 PhaseC. 1925-1934 Phase With increasing hardships of workers, the signs of militant tendencies With increasing hardships of workers, the signs of militant tendencies

and revolutionary approach in trade unionism got expression into and revolutionary approach in trade unionism got expression into violent strikes since 1924. The communists gained influence in L trade violent strikes since 1924. The communists gained influence in L trade union movement during this period. They split the Trade Union union movement during this period. They split the Trade Union Congress twice with their widening differences with the left-wing Congress twice with their widening differences with the left-wing unionists.unionists.

The moderate section under the leadership of Mr. N. M. Joshi and Mr. The moderate section under the leadership of Mr. N. M. Joshi and Mr. V. V. Giri seceded from the Congress and set up a separate V. V. Giri seceded from the Congress and set up a separate organization named the National Trade Unions Federation (NTUF).organization named the National Trade Unions Federation (NTUF).

Another split in AITUC took place in 1931 at its Calcutta session when Another split in AITUC took place in 1931 at its Calcutta session when the extreme left wing under the leadership of Messrs S. V. Deshpande the extreme left wing under the leadership of Messrs S. V. Deshpande and B T Randive broke away and formed a separate organization, and B T Randive broke away and formed a separate organization, namely, the All India Red Trade Union Congress Two Years later, the namely, the All India Red Trade Union Congress Two Years later, the National Federation of Labour was formed to facilitate unity among all National Federation of Labour was formed to facilitate unity among all the left-wing organizations of labour. As a result, the AITUF and NFL the left-wing organizations of labour. As a result, the AITUF and NFL merged to form the National Trade Union Federation (NTUF).merged to form the National Trade Union Federation (NTUF).

Another important feature of this period was the passing of two Acts, Another important feature of this period was the passing of two Acts, namely, the namely, the Trade Unions Act 1926Trade Unions Act 1926 and the and the Trade Disputes Act, Trade Disputes Act, 19291929 which also gave a fillip to the growth of trade unionism in India. which also gave a fillip to the growth of trade unionism in India. This phase of the Indian labour movement may be described as This phase of the Indian labour movement may be described as The The Period of Left Wing Trade UnionismPeriod of Left Wing Trade Unionism. .

D. 1935-1938 PhaseD. 1935-1938 Phase The Indian National Congress was in power in The Indian National Congress was in power in

seven provinces in 1937. This injected unity in seven provinces in 1937. This injected unity in trade unions. As a result, the All India Red trade unions. As a result, the All India Red Trade Union Congress itself with the AITUC Trade Union Congress itself with the AITUC in 1935. After three years in 1938, the in 1935. After three years in 1938, the National Trade Union Congress (NTUC) also National Trade Union Congress (NTUC) also affiliated with the AITUC. Other factors that affiliated with the AITUC. Other factors that contributed to the revival of trade unions contributed to the revival of trade unions were increasing awakening among the were increasing awakening among the workers to their rights and change in the workers to their rights and change in the managerial attitude towards trade unions.managerial attitude towards trade unions.

In 1938, one of the most developments took In 1938, one of the most developments took place was the enactment of the Bombay place was the enactment of the Bombay Industrial Disputes Act, 1938. An important Industrial Disputes Act, 1938. An important provision of the Act, inter alia, to accord provision of the Act, inter alia, to accord compulsory recognition of unions by the compulsory recognition of unions by the employers gave a big fillip to the growth of employers gave a big fillip to the growth of trade unionism in India.trade unionism in India.

E. 1939-1946 PhaseE. 1939-1946 Phase The World War II also brought chaos in industrial The World War II also brought chaos in industrial

front of the country. Mass retrenchment witnessed front of the country. Mass retrenchment witnessed during the post-World War II led to the problem of during the post-World War II led to the problem of unemployment .This compelled workers to join unions unemployment .This compelled workers to join unions to secure their jobs. This resulted in big spurt in the to secure their jobs. This resulted in big spurt in the membership of registered TUs from 667 in 1939-40 to membership of registered TUs from 667 in 1939-40 to 1087 in 1945-46.1087 in 1945-46.

Somuchso workers in the registered TUs witnessed a Somuchso workers in the registered TUs witnessed a phenomenal increase from 18,612 to 38,570 during phenomenal increase from 18,612 to 38,570 during the same period. The AITUC again split in 1941 when the same period. The AITUC again split in 1941 when Dr. Aftab Ali, President of the Seamen s Association, Dr. Aftab Ali, President of the Seamen s Association, Calcutta disaffiliated his union from the Congress and Calcutta disaffiliated his union from the Congress and formed a new organization known as the “Indian formed a new organization known as the “Indian Federation of Labour”.Federation of Labour”.

The year 1946 was also marked by two important The year 1946 was also marked by two important enactments, namely, the Industrial Employment enactments, namely, the Industrial Employment (Standing Orders) Act, 1946 and the Bombay (Standing Orders) Act, 1946 and the Bombay Industrial Relations Act, 1946. Both the Acts, through Industrial Relations Act, 1946. Both the Acts, through their provisions, contributed to strengthen the trade their provisions, contributed to strengthen the trade unionism in the country.unionism in the country.

F. 1947 and SinceF. 1947 and Since Proliferation of TUs in the pattern of proliferation of political Proliferation of TUs in the pattern of proliferation of political

parties has been a distinguishing feature in the trade union parties has been a distinguishing feature in the trade union history of India during the post-Independence period. In May history of India during the post-Independence period. In May 1947, the Indian National Trade Union Congress (INTUC) was 1947, the Indian National Trade Union Congress (INTUC) was formed by the nationalists and moderates and was controlled formed by the nationalists and moderates and was controlled by the Congress Party. Since by then, the AITUC is controlled by the Congress Party. Since by then, the AITUC is controlled by the Communists.by the Communists.

The Congress socialists who stayed in AITUC at the time of The Congress socialists who stayed in AITUC at the time of the formation of INTUC subsequently formed the Hind the formation of INTUC subsequently formed the Hind Mazdoor Sabha (HMS) in 1948 under the banner of the Praja Mazdoor Sabha (HMS) in 1948 under the banner of the Praja Socialist Party. Subsequently, the HMS was split up with a Socialist Party. Subsequently, the HMS was split up with a group of socialist and formed a separate association, namely, group of socialist and formed a separate association, namely, ““Bhartiya Mazdoor SanghBhartiya Mazdoor Sangh” (BMS) which is now an affiliate of ” (BMS) which is now an affiliate of the B JP. Years after, the communist party split into various the B JP. Years after, the communist party split into various fractions forming the fractions forming the United Trade Union CongressUnited Trade Union Congress (UTUC) (UTUC) and the and the Center of Indian Trade UnionsCenter of Indian Trade Unions (CITU). (CITU).

Later again, a group disassociated itself from the UTUC and Later again, a group disassociated itself from the UTUC and formed another UTUC—Lenin Sarani. Of late, with the formed another UTUC—Lenin Sarani. Of late, with the emergence of regional parties since 1960, most of the regional emergence of regional parties since 1960, most of the regional parties have shown its inclination to a trade union wing, thus, parties have shown its inclination to a trade union wing, thus, adding to the proliferation of trade unions in the country. Thus, adding to the proliferation of trade unions in the country. Thus, it is clear that the origin and growth of TU Movement in India it is clear that the origin and growth of TU Movement in India is riddled with fragmented politicization.is riddled with fragmented politicization.

Obstacles Faced in the Obstacles Faced in the Progress of TU in IndiaProgress of TU in India

1.1. Majority of the Indian Labor is Majority of the Indian Labor is Illiterate Illiterate

2.2. Heterogeneous Character Heterogeneous Character

3.3. Low Economic Standards Low Economic Standards

4.4. Migratory Nature of LaborsMigratory Nature of Labors

5.5. Mutual Strife/ Conflict Mutual Strife/ Conflict

6.6. Incapable Leadership Incapable Leadership

7.7. The Problem of Unemployment The Problem of Unemployment

8.8. Political InterferencePolitical Interference

NATURE OF IRsNATURE OF IRs

Features of IRFeatures of IR The focus of IR is on the study of the attitudes, The focus of IR is on the study of the attitudes,

relationships, practices and procedures relationships, practices and procedures developed by the contending parties to resolve developed by the contending parties to resolve or at least minimize conflicts. or at least minimize conflicts.

. IRs also involve the study of conditions . IRs also involve the study of conditions conducive to the labor , management co-conducive to the labor , management co-operation as well as the practices and operation as well as the practices and procedures required to elicit the desired co-procedures required to elicit the desired co-operation from both the parties. IRs also study operation from both the parties. IRs also study the laws, rules, regulations, agreements, the laws, rules, regulations, agreements, awards of court, customs and traditions, as awards of court, customs and traditions, as well as policy framework laid down by the well as policy framework laid down by the government for eliciting co-operation between government for eliciting co-operation between labor and management. labor and management.

Scope of IRsScope of IRs 1.1. Development of Healthy Labor-Development of Healthy Labor-

Management Relations Management Relations 2.2. Maintenance of Industrial Peace Maintenance of Industrial Peace 3.3. Development of Industrial Democracy Development of Industrial Democracy 4.4. Collective Bargaining CBCollective Bargaining CB5.5. Machinery for Resolving Industrial Machinery for Resolving Industrial

DisputesDisputes6.6. Labor Legislative PoliciesLabor Legislative Policies7.7. Individual GrievancesIndividual Grievances8.8. Role of Govt., Union & ManagementRole of Govt., Union & Management9.9. IRs TrainingIRs Training

Contemporary issues in Contemporary issues in IRIR

1.1. Low Wages Low Wages

2.2. Industrial Safety & HealthIndustrial Safety & Health

3.3. Industrial Housing Industrial Housing

4.4. Employment of Women Employment of Women

5.5. Ignorance & Illiteracy Ignorance & Illiteracy

6.6. Incompatible labor laws Incompatible labor laws

SIGNIFICANCE OF GOOD SIGNIFICANCE OF GOOD IRIR

1.1. Voice for Grievances of Employees.Voice for Grievances of Employees.

2.2. Improved Working Conditions at Workplace.Improved Working Conditions at Workplace.

3.3. Open Communication between Management & Open Communication between Management & Workers.Workers.

4.4. Shared D/M (Decision Making)Shared D/M (Decision Making)

5.5. Fair Wages & Social benefits to Workers.Fair Wages & Social benefits to Workers.

6.6. Higher morale & confidence in the ManagementHigher morale & confidence in the Management

7.7. Industrial PeaceIndustrial Peace

8.8. Higher PRODUCTIVITYHigher PRODUCTIVITY

9.9. Facilitates Facilitates ++ive Change.ive Change.

EVOLUTION OF IRs IN EVOLUTION OF IRs IN INDIAINDIA

11stst Phase : The PROTECTIVE Phase Phase : The PROTECTIVE Phase ( 1947-1956)( 1947-1956)

1.1. Import-Substitution Industrialization.Import-Substitution Industrialization.

2.2. The Industrial Disputes Act was passed in 1947, The Industrial Disputes Act was passed in 1947, which replaced the Trade Disputes Act of 1929. which replaced the Trade Disputes Act of 1929. The ID Act provides for settlement of industrial The ID Act provides for settlement of industrial disputes through Conciliation & Adjudication.disputes through Conciliation & Adjudication.

3.3. A conference called the Industrial Truce Resolution A conference called the Industrial Truce Resolution took place in 1947, and foresaw the establishment took place in 1947, and foresaw the establishment of the Minimum Wages Act, Factories Act, and of the Minimum Wages Act, Factories Act, and Employees State Insurance Act in 1948. Employees State Insurance Act in 1948.

4.4. Economy Growth is very low about 2-3% per year.Economy Growth is very low about 2-3% per year.

5.5. Formation of large Employment-Intensive Public Formation of large Employment-Intensive Public Enterprises.Enterprises.

6.6. Largely Centralized Bargaining with static real Largely Centralized Bargaining with static real wages.wages.

22ndnd Phase : The CONSOLIDATION Phase Phase : The CONSOLIDATION Phase ( 1956-1965)( 1956-1965)

1.1. The period between 1957 and 1965 can be regarded The period between 1957 and 1965 can be regarded as an attempt to move away from Legalism to as an attempt to move away from Legalism to Voluntarism which had dominated IRs in India. As a Voluntarism which had dominated IRs in India. As a result, the Code of Discipline was introduced in 1958.result, the Code of Discipline was introduced in 1958.

2.2. Unfortunately, the Code of Discipline has a limited Unfortunately, the Code of Discipline has a limited success. Consequently, the Govt. has to rely on success. Consequently, the Govt. has to rely on legislation to regulate IRs.legislation to regulate IRs.

3.3. There should be no Lockout or Strike without There should be no Lockout or Strike without NOTICE.NOTICE.

4.4. No unilateral action should be taken in connection No unilateral action should be taken in connection with any Industrial matter.with any Industrial matter.

5.5. Awards & Agreements should be speedily Awards & Agreements should be speedily implemented.implemented.

33rdrd Phase : Conflict Ridden Phase : Conflict Ridden Interventionist phase (1967-1980)Interventionist phase (1967-1980)

1.1. Economic Stagnation.Economic Stagnation.

2.2. Considerable slowdown in employment Considerable slowdown in employment growth and declining real wages.growth and declining real wages.

3.3. Crisis in IRs System occurs, due to Crisis in IRs System occurs, due to massive Strikes and Industrial Conflict.massive Strikes and Industrial Conflict.

4.4. So many Unions were arose during this So many Unions were arose during this period, consequently employees strength period, consequently employees strength was considerably decline.was considerably decline.

5.5. Govt. loosing its control over the IR Govt. loosing its control over the IR System.System.

44thth Phase: The Productivity- Efficiency- Phase: The Productivity- Efficiency- Quality Oriented Phase (1981-1991)Quality Oriented Phase (1981-1991)

1.1. The Govt. has taken steps to further regulate The Govt. has taken steps to further regulate Layoffs, Retrenchments and Closures through Layoffs, Retrenchments and Closures through the ID Amendment Act of 1982 & 1984. the ID Amendment Act of 1982 & 1984.

2.2. Accordingly under the Act, any worker who has Accordingly under the Act, any worker who has completed not less than one year of continuous completed not less than one year of continuous service is entitled to a min. amount of service is entitled to a min. amount of compensation for Retrenchment / Closer.compensation for Retrenchment / Closer.

3.3. Rise of Independent Enterprise Unionism.Rise of Independent Enterprise Unionism.

4.4. In this period Labor Productivity increases In this period Labor Productivity increases considerably, consequently economy grows at considerably, consequently economy grows at the rate of 5.7% per year.the rate of 5.7% per year.

55thth Phase: The Post-Reform Decade Phase: The Post-Reform Decade (1992-Till Now)(1992-Till Now)

1.1. This phase is an era of Globalization / Liberalization This phase is an era of Globalization / Liberalization & MNCs.& MNCs.

2.2. This Phase saw the Govt. adopt the World Bank -This Phase saw the Govt. adopt the World Bank -IMF structural adjustment plans this saw a lot of IMF structural adjustment plans this saw a lot of Liberalization in the economy sector. This meant Liberalization in the economy sector. This meant that Barging Power was Decentralized; this meant that Barging Power was Decentralized; this meant that the Govt. influence on labor unions reduced up that the Govt. influence on labor unions reduced up to the considerable limit.to the considerable limit.

3.3. The positive aspect of this phase was that more The positive aspect of this phase was that more employment was created and the TUs increased it employment was created and the TUs increased it voice both on macro and micro level. voice both on macro and micro level.

4.4. The CB Power of the TUs was experienced more in The CB Power of the TUs was experienced more in this phase.this phase.

COLLECTIVE BARGAININGCOLLECTIVE BARGAINING (CB)(CB)

What is CBWhat is CB1.1. The term CB was first used by Economic Theorist The term CB was first used by Economic Theorist

Sidney WebbSidney Webb in 1891. in 1891.2.2. “ “ CB is a process of Discussion & Negotiation between CB is a process of Discussion & Negotiation between

two parties, one or both of whom is a Group of Persons two parties, one or both of whom is a Group of Persons acting in contest……..More specifically it is the acting in contest……..More specifically it is the procedure by which an Employer / Employers and a procedure by which an Employer / Employers and a Group of Employees / TU Officials agree upon the Group of Employees / TU Officials agree upon the conditions of Work”………………..conditions of Work”………………..

…………THE ENCYCLOPEDIA OF SOCIAL SCIENCETHE ENCYCLOPEDIA OF SOCIAL SCIENCE..3.3. ““CB is an agreement between a single Employer / CB is an agreement between a single Employer /

Association of Employers on one hand and a Labor Association of Employers on one hand and a Labor Union on other hand, which regulates the Terms & Union on other hand, which regulates the Terms & Conditions of Employment”.Conditions of Employment”.

-------TUDWIG TELLER.-------TUDWIG TELLER.Conclusion: Conclusion: CB is the most effective way in which CB is the most effective way in which

workers influence the workers influence the DECISION MAKING DECISION MAKING PROCESSPROCESS..

Objectives of CBObjectives of CB

1.0 To provide an opportunity to the employees, to 1.0 To provide an opportunity to the employees, to voice their problems on issues related to voice their problems on issues related to Employment.Employment.

2.0 To resolve all conflicts & disputes in a mutually 2.0 To resolve all conflicts & disputes in a mutually agreeable manner.agreeable manner.

3.0 To facilitate reaching a solution that is acceptable 3.0 To facilitate reaching a solution that is acceptable to both the parties involves.to both the parties involves.

4.0 To Enhance the Productivity of the organization by 4.0 To Enhance the Productivity of the organization by preventing hurdles like Lock-out, Band, Strikes, etc.preventing hurdles like Lock-out, Band, Strikes, etc.

5.0 To develop a conductive atmosphere to foster good 5.0 To develop a conductive atmosphere to foster good IRs.IRs.

6.0 To prevent any Disputes / Conflict in the future 6.0 To prevent any Disputes / Conflict in the future through mutually agreed contracts. through mutually agreed contracts.

Characteristics of CBCharacteristics of CB1.0 CB is a 1.0 CB is a GROUP PROCESS.GROUP PROCESS.2.0 It is Flexible / Fluid & Mobile.2.0 It is Flexible / Fluid & Mobile.3.0 CB is a Mutual 3.0 CB is a Mutual GIVE & TAKEGIVE & TAKE, rather than “Take , rather than “Take

it or Leave it”.it or Leave it”.4.0 CB is a year round Continuous Process.4.0 CB is a year round Continuous Process.5.0 It is a 5.0 It is a BIPARTITEBIPARTITE Process. There is no 3rd Party Process. There is no 3rd Party

Intervention.Intervention.6.0 CB is 6.0 CB is INDUSTRIAL DEMOCRACYINDUSTRIAL DEMOCRACY at WORK. at WORK.7.0 It is a 7.0 It is a DYNAMICDYNAMIC Approach. Approach.8.0 It is a series of checks & balances.8.0 It is a series of checks & balances.9.0 It is a method for Developing an 9.0 It is a method for Developing an INDUSTRIAL INDUSTRIAL

JURISPRUDENCE.JURISPRUDENCE.10.0 It is entirely an 10.0 It is entirely an ARTART not a SCIENCE. not a SCIENCE.11.0 CB is a “11.0 CB is a “WIN-WINWIN-WIN” Process.” Process.12.0 CB is an 12.0 CB is an INSTITUTIONALINSTITUTIONAL Process. Process. 13.0 CB is a Beauty of 13.0 CB is a Beauty of DEMOCRACYDEMOCRACY. .

TYPE OF CBTYPE OF CB

Main Functions of the Main Functions of the CBCB

1.0 To Fix the Prices of Labor Services.1.0 To Fix the Prices of Labor Services.2.0 To Establish a System of Workers Rights in 2.0 To Establish a System of Workers Rights in

Industry which may be termed as Industry which may be termed as Democratization of IRs Systems.Democratization of IRs Systems.

3.0 To set-up a machinery for the representation of 3.0 To set-up a machinery for the representation of employees in D/M (Decision Making) & Affecting employees in D/M (Decision Making) & Affecting Process for their group interests.Process for their group interests.

4.0 Basically through the CB, the Workers Union 4.0 Basically through the CB, the Workers Union exert presser on Management. As such TU act exert presser on Management. As such TU act as a Presser Group through the weapons of CB.as a Presser Group through the weapons of CB.

5.0 CB is a Rule-making & Goal-oriented Process.5.0 CB is a Rule-making & Goal-oriented Process.

Nature of CBNature of CB The process of CB is called The process of CB is called BARGAININGBARGAINING because each side because each side

applies Pressure on the other. The best known form of Pressure applies Pressure on the other. The best known form of Pressure are Threats of Strikes & Lockouts.are Threats of Strikes & Lockouts.

CB is a process of CB is a process of VOLUNTARY VOLUNTARY Agreement.Agreement.

CB is an extremely useful shorthand term for describing a CB is an extremely useful shorthand term for describing a CONTINUOUS / INSTITUTIONAL / DYNAMICCONTINUOUS / INSTITUTIONAL / DYNAMIC Process for Process for solving problems arising directly out of TU-Management solving problems arising directly out of TU-Management Relationship.Relationship.

CB is a Technique which seeks to Determine the Rates of Pay CB is a Technique which seeks to Determine the Rates of Pay without the arbitrary control of Govt. For this reason CB is without the arbitrary control of Govt. For this reason CB is regarded as Democratic means of achieving the compensation regarded as Democratic means of achieving the compensation of Human Services.of Human Services.

It is through CB that workers improve their position in the It is through CB that workers improve their position in the LABOUR MARKET.LABOUR MARKET.

CB CB is anis an INSTITUTIONAL PROCESSINSTITUTIONAL PROCESS of Representation.of Representation.

In CB the Employer doesn’t deal directly with his Workers. He In CB the Employer doesn’t deal directly with his Workers. He deals with an Institution Authorized to represent the Workers deals with an Institution Authorized to represent the Workers for purpose of for purpose of NEGOTIATING & ADMINISTERINGNEGOTIATING & ADMINISTERING the the terms & conditions of Employment.terms & conditions of Employment.

Process of CBProcess of CB The two major phases of CB are Negotiation Phase & The two major phases of CB are Negotiation Phase &

Contract Administration Phase.Contract Administration Phase.

NEGOTIATIONNEGOTIATION is a process of is a process of (i) Advancing Proposals---(i) Advancing Proposals--- (ii)Discussing & Criticizing them------(ii)Discussing & Criticizing them------ (iii) Explaining & Exploring their meaning & effect---(iii) Explaining & Exploring their meaning & effect--- (iv) Seeking to secure their Acceptance (If Agreed) (iv) Seeking to secure their Acceptance (If Agreed) (V) If NOT---Making Counter Proposals (V) If NOT---Making Counter Proposals

(Modifications)(Modifications) COUNTER ADMINISTRATIONCOUNTER ADMINISTRATION relates to putting forward the relates to putting forward the

signed agreement into Effect. TU Officials & IRs Officers should signed agreement into Effect. TU Officials & IRs Officers should Interpret the items to all participants in the Organization.Interpret the items to all participants in the Organization.

According to According to DUNLOP & HEALYDUNLOP & HEALY, CB Process involves three , CB Process involves three elements---elements---

1. Bargaining Demands 2. The Deadline / Threat of Strike or 1. Bargaining Demands 2. The Deadline / Threat of Strike or Lockout and Lockout and

3. Changing Position & Reaching on an Agreement. 3. Changing Position & Reaching on an Agreement.

Advantages of CBAdvantages of CB1.0 CB is a good 1.0 CB is a good Anti-cyclical MeasureAnti-cyclical Measure..

2.0 CB has been considered as an Extension of 2.0 CB has been considered as an Extension of Democracy to the Work-Place.Democracy to the Work-Place.

3.0 CB Establishes a System of “3.0 CB Establishes a System of “Industrial Industrial JurisprudenceJurisprudence”.”.

The people who Experience the problems are in a The people who Experience the problems are in a better position than any one else to make the rules better position than any one else to make the rules governing those problems.governing those problems.

4.0 CB is regarded as an Equitable System because it 4.0 CB is regarded as an Equitable System because it Equalizes Power between Employers & Employees.Equalizes Power between Employers & Employees.

5.0 The 5.0 The Idea of Participatory DemocracyIdea of Participatory Democracy has been has been accepted by the Employers as a Force for Social accepted by the Employers as a Force for Social Stability. By Participating in the formulation of Stability. By Participating in the formulation of working rules and joining Political Organizations, working rules and joining Political Organizations, workers gain a stake in the System.workers gain a stake in the System.

Disadvantages of CBDisadvantages of CB CBCB generates many problems. generates many problems.1.0 There is the 1.0 There is the PROBLEM OF STRIKESPROBLEM OF STRIKES..

2.0 Limitation of CB is that since it is based on 2.0 Limitation of CB is that since it is based on POWER & CONFLICTPOWER & CONFLICT it does the most for the it does the most for the people who need it least.people who need it least.

3.0 CB doesn’t contain Sufficient 3.0 CB doesn’t contain Sufficient SAFEGUARD FOR SAFEGUARD FOR THE PUBLIC INTERESTTHE PUBLIC INTEREST, which might be ignored , which might be ignored by collusion between TUs & Employers to fix by collusion between TUs & Employers to fix PRICES.PRICES.

4.0 CB doesn’t prevent 4.0 CB doesn’t prevent Industrial ConflictIndustrial Conflict but but provides a forum for discussion and a means for provides a forum for discussion and a means for Systematic Social Change in the Working Code Systematic Social Change in the Working Code Governing IRs.Governing IRs.

Seven Important Prerequisites for a Seven Important Prerequisites for a Successful CBSuccessful CB

1.1. The parties must attain a sufficient degree of organization. If The parties must attain a sufficient degree of organization. If the workers’ organization is weak, employers can say that it the workers’ organization is weak, employers can say that it does not represent the workers and will refuse to negotiate does not represent the workers and will refuse to negotiate with it. Unless the workers are able to form strong and stable with it. Unless the workers are able to form strong and stable unions, collective bargaining will not be successful. unions, collective bargaining will not be successful.

2.2. Freedom of association is essential for CB. Where there is no Freedom of association is essential for CB. Where there is no freedom of association, there can be no CB. Freedom of freedom of association, there can be no CB. Freedom of association implies that the workers as well as the employers association implies that the workers as well as the employers will have the right to form an organization of their own to will have the right to form an organization of their own to protect their interests. protect their interests.

3.3. There should be mutual recognition between both the groups. There should be mutual recognition between both the groups. CB cannot begin if the employers do not recognize the CB cannot begin if the employers do not recognize the workers’ organization. The conflict of interests makes the two workers’ organization. The conflict of interests makes the two groups hostile to each other. They must recognize each other groups hostile to each other. They must recognize each other and realize that adjustment and understanding is essential for and realize that adjustment and understanding is essential for the achievement of organizational goals. the achievement of organizational goals.

4.4. There must exist a favorable political climate, essential for There must exist a favorable political climate, essential for successful CB. If the Govt. encourages CB as the best method successful CB. If the Govt. encourages CB as the best method of regulating conditions of employment, it will be successful. of regulating conditions of employment, it will be successful. Where the governments restrict TU activities, there can be no Where the governments restrict TU activities, there can be no CB. CB.

Seven Important Prerequisites for a Seven Important Prerequisites for a Successful CBSuccessful CB

5.5. Agreement must be observed by those to whom they Agreement must be observed by those to whom they apply. The workers’ organization must be strong apply. The workers’ organization must be strong enough to exercise its authority over its members. If enough to exercise its authority over its members. If the TU has no power over its members, CB will not the TU has no power over its members, CB will not be effectively implemented.be effectively implemented.

6.6. A give and take policy must prevail in the A give and take policy must prevail in the organization. The difference between two parties can organization. The difference between two parties can be adjusted only by compromise so that an be adjusted only by compromise so that an agreement can be reached. Neither side should be agreement can be reached. Neither side should be too rigid on its demand.too rigid on its demand.

Their attitudes should be flexible and both sides Their attitudes should be flexible and both sides should be ready to give up some of its demands. TUs should be ready to give up some of its demands. TUs should not rigidly insist upon unreasonable demands should not rigidly insist upon unreasonable demands and should be ready to reduce its demands to come and should be ready to reduce its demands to come to an agreement.to an agreement.

7. Sometimes unfair labor practices are resorted to by 7. Sometimes unfair labor practices are resorted to by both the employers and the TUs. These will restrict both the employers and the TUs. These will restrict the development of CB. Unfair labor practices should the development of CB. Unfair labor practices should be avoided by both the sides, as this will create an be avoided by both the sides, as this will create an atmosphere of goodwill.atmosphere of goodwill.

How to Develop Sound Industrial How to Develop Sound Industrial Relations ?Relations ?

1.1. Developing Trust between Labor and Management. there may be  Developing Trust between Labor and Management. there may be two most effective ways to create trust between the IR parties:two most effective ways to create trust between the IR parties:

1.1 To build competence in both laborers and managers, and1.1 To build competence in both laborers and managers, and1.2 To develop and practice right human resource practices in the 1.2 To develop and practice right human resource practices in the

organization. In fact, it is trust only that binds labor and management organization. In fact, it is trust only that binds labor and management together.together.

2. 2. Existence of Sound and Democratic TUs:Existence of Sound and Democratic TUs: One another prerequisite One another prerequisite for a sound IR is the existence of sound and democratic trade unions to for a sound IR is the existence of sound and democratic trade unions to bargain with management. It is the sound and democratic TU that can bargain with management. It is the sound and democratic TU that can protect the employee’s interest in terms of wages, benefits, working protect the employee’s interest in terms of wages, benefits, working conditions, job security and so on. These make employees satisfied and conditions, job security and so on. These make employees satisfied and satisfaction permits no alibis and grievance.satisfaction permits no alibis and grievance.

3. Maintenance of Industrial Peace:3. Maintenance of Industrial Peace: Peace promotes prosperity and Peace promotes prosperity and prosperity supports happiness. In an industrial organization, peace can prosperity supports happiness. In an industrial organization, peace can be established through several ways, like establish machinery for the be established through several ways, like establish machinery for the prevention and settlement of industrial disputes. Make provisions for prevention and settlement of industrial disputes. Make provisions for bipartite and tripartite committees for evolving personnel policies, code bipartite and tripartite committees for evolving personnel policies, code of conduct, code of discipline, etc. Create implementation and of conduct, code of discipline, etc. Create implementation and evaluation committees for looking into CB Agreements, court orders evaluation committees for looking into CB Agreements, court orders and judgments and violations of statutory provisions of the various and judgments and violations of statutory provisions of the various laws. laws.

How to Develop Sound Industrial How to Develop Sound Industrial Relations ?Relations ?

4. Continuous Feedback and Monitoring:4. Continuous Feedback and Monitoring: Feedback serves as an input for improvement in all types of Feedback serves as an input for improvement in all types of

activities and so in IR as well. A properly devised feedback activities and so in IR as well. A properly devised feedback mechanism enables the HR Managers to spot the grey areas in mechanism enables the HR Managers to spot the grey areas in IR system and, then, take proactive actions to solve the IR system and, then, take proactive actions to solve the problems before these assume alarming proportions. Nipping problems before these assume alarming proportions. Nipping the problems at the bud is better because, sometimes, a the problems at the bud is better because, sometimes, a seemingly small problem if not solved culminates to a complex seemingly small problem if not solved culminates to a complex and serious one later on.and serious one later on.

5. Professional Approach:5. Professional Approach: Understanding human behavior has ever been a complex Understanding human behavior has ever been a complex

phenomenon. And the same has become more so in case of phenomenon. And the same has become more so in case of modem knowledge workers. This underlines the need for modem knowledge workers. This underlines the need for managing with employees/ IR by the persons having managing with employees/ IR by the persons having professional competence and approach in the subject. These professional competence and approach in the subject. These persons need to be well versed with whole gamut of persons need to be well versed with whole gamut of employee/human behavior at work.employee/human behavior at work.

In other words, these persons must know why employees In other words, these persons must know why employees behave as they behave at work place. Besides, they should also behave as they behave at work place. Besides, they should also have a problem -solving approach to tackle with the employee have a problem -solving approach to tackle with the employee problems in the organizations.problems in the organizations.

Workers Participation in Workers Participation in Management (WPM)Management (WPM)

Workers Participation is the most debated issues now-Workers Participation is the most debated issues now-a-days.a-days.

PARTICIPATIONPARTICIPATION mean an act of mean an act of TAKING PARTTAKING PART. It . It may be defined as Taking Part in a Sharing of may be defined as Taking Part in a Sharing of POWER & STATUSPOWER & STATUS between Management & between Management & Workers. It also relates to a Style of Management Workers. It also relates to a Style of Management enabling Workers to Taking Part in enabling Workers to Taking Part in D/M PD/M Process and rocess and Exert some influence over the Policy of the Exert some influence over the Policy of the Organization. Organization.

WORKERS PARTICIPATIONWORKERS PARTICIPATION is an attempt to is an attempt to Bridge the Gap by Authorizing the Bridge the Gap by Authorizing the WORKERSWORKERS to to Participate in Participate in MANAGERIAL FUNCTIONSMANAGERIAL FUNCTIONS..

CB itself recognized as a form of WPM.CB itself recognized as a form of WPM. According to According to ALLAN FLANDERSALLAN FLANDERS, CB is a Process of , CB is a Process of

Power Relationship. By this process Organized Labor Power Relationship. By this process Organized Labor penetrates into areas which are regarded customarily penetrates into areas which are regarded customarily as Management Functions. as Management Functions.

Definition of WPMDefinition of WPM “ “The term Participation implies the Mental & Emotional Involvement The term Participation implies the Mental & Emotional Involvement

of a person in a group situation which encourages him to of a person in a group situation which encourages him to contribute to Group Goals & Share Responsibility in them.” —contribute to Group Goals & Share Responsibility in them.” —KIETH DAVISKIETH DAVIS

This definition envisages three important elements in participation. This definition envisages three important elements in participation. (i)(i) It means mental and emotional involvement rather than mere It means mental and emotional involvement rather than mere

physical activity.physical activity.(ii)(ii) Participation must motivate a person to contribute to a specific Participation must motivate a person to contribute to a specific

situation to invest his own resources, such as Initiative / Knowledge situation to invest his own resources, such as Initiative / Knowledge / creativity & Ingenuity in the objectives of the organization./ creativity & Ingenuity in the objectives of the organization.

(iii)(iii) It encourages people to share responsibility for a Decision or It encourages people to share responsibility for a Decision or Activity. Activity.

 ” ”Participation in Management gives the worker a sense of Participation in Management gives the worker a sense of importance, pride and accomplishment; it gives him the freedom of importance, pride and accomplishment; it gives him the freedom of opportunity for Self-Expression; a Feeling of Belongingness with opportunity for Self-Expression; a Feeling of Belongingness with the place of work and a sense of Workmanship & Creativity”. --- the place of work and a sense of Workmanship & Creativity”. --- WALPOLEWALPOLE

“ “It implies a situation where workers representatives are, to some It implies a situation where workers representatives are, to some extent, involved in the process of management decision making, extent, involved in the process of management decision making, but where the ultimate power is in the hands of the management”. but where the ultimate power is in the hands of the management”. ------CLEGGCLEGG

It is a system of Communication & Consultation either formal or It is a system of Communication & Consultation either formal or informal by which employees of an organization are kept informed informal by which employees of an organization are kept informed about the affairs of the undertaking or through which they express about the affairs of the undertaking or through which they express their opinion and contribute to management decisions.their opinion and contribute to management decisions.

Objectives of WPMObjectives of WPM To raise level of Motivation of Workers by Closer Involvement.To raise level of Motivation of Workers by Closer Involvement. To provide opportunity for Expression and to provide a sense of To provide opportunity for Expression and to provide a sense of

Importance to Workers.Importance to Workers. Establish and encourage good communication system at all Establish and encourage good communication system at all

levels levels To develop ties of understanding leading to better Effort & To develop ties of understanding leading to better Effort &

Harmony.Harmony.   Joint D/M ensures the there will be Min Industrial Conflict an Joint D/M ensures the there will be Min Industrial Conflict an

Economic Growth can be free form Distracting Strife. Economic Growth can be free form Distracting Strife. To act on a device to Counter-Balance Powers of Managers.To act on a device to Counter-Balance Powers of Managers. To act on a Panacea for solving IR Problems.To act on a Panacea for solving IR Problems. To Help handle resistance to change. To Help handle resistance to change. To Promote Democratic Practice.To Promote Democratic Practice. To Promote To Promote CORDIALCORDIAL Relations. Relations. In India the objective of the government in advocating for WPM, In India the objective of the government in advocating for WPM,

as stated in the as stated in the Industrial Policy Resolution 1956Industrial Policy Resolution 1956, is a part of , is a part of its overall Endeavour to create a Socialist Society, wherein the its overall Endeavour to create a Socialist Society, wherein the sharing of a part of the managerial powers by workers is sharing of a part of the managerial powers by workers is considered necessary.considered necessary.

Characteristics of WPMCharacteristics of WPM

1. Participation implies practices which increase 1. Participation implies practices which increase the scope for employees’ share of influence in D/M the scope for employees’ share of influence in D/M Process with the assumption of responsibility.Process with the assumption of responsibility.

2. Participation presupposes willing Acceptance of 2. Participation presupposes willing Acceptance of Responsibility by Workers.Responsibility by Workers.

3. WPM not as individuals but as a Group through 3. WPM not as individuals but as a Group through their representatives.their representatives.

4. WPM differs from CB in the sense that while the 4. WPM differs from CB in the sense that while the former is based on mutual trust, information former is based on mutual trust, information sharing and mutual problem solving; the latter is sharing and mutual problem solving; the latter is essentially based on Power Play, Pressure Tactics, essentially based on Power Play, Pressure Tactics, and Negotiations.and Negotiations.

5. The basic rationale tor WPM is that workers 5. The basic rationale tor WPM is that workers invest their Labor and their fates to their place of invest their Labor and their fates to their place of work. Thus, they contribute to the outcomes of work. Thus, they contribute to the outcomes of organization. Hence, they have a legitimate right organization. Hence, they have a legitimate right to share in D/M activities of organization.to share in D/M activities of organization.

Forms of WPMForms of WPM Different forms of WPM are as under-Different forms of WPM are as under-1.0 CB: 1.0 CB: CB results in collective agreements which lay down certain CB results in collective agreements which lay down certain

rules and conditions of service in an establishment. Such agreements rules and conditions of service in an establishment. Such agreements are normally binding on the parties. Theoretically, CB is based on the are normally binding on the parties. Theoretically, CB is based on the principle of balance of power, but, in actual practice, each party tries principle of balance of power, but, in actual practice, each party tries to outbid the other and get maximum advantage by using, if to outbid the other and get maximum advantage by using, if necessary, threats and counter threats like; Strikes / Band / Lockouts necessary, threats and counter threats like; Strikes / Band / Lockouts and other direct actions. and other direct actions.

2.0 Works Councils:2.0 Works Councils:  These are exclusive bodies of employees, assigned These are exclusive bodies of employees, assigned with different functions in the management of an enterprise. In some with different functions in the management of an enterprise. In some countries, their role is limited only to  receiving information about the countries, their role is limited only to  receiving information about the enterprise. In Yugoslavia, these councils have wider D/M Powers in an enterprise. In Yugoslavia, these councils have wider D/M Powers in an enterprise like; Appointment, Promotion, Salary Fixation and also enterprise like; Appointment, Promotion, Salary Fixation and also major Investment Decisions.major Investment Decisions.

3.0 Joint Management Councils & Committees:3.0 Joint Management Councils & Committees:  Mainly these bodies Mainly these bodies are Consultative & Advisory, with D/M being left to the Top are Consultative & Advisory, with D/M being left to the Top Management. As they are consultative and advisory, neither the Management. As they are consultative and advisory, neither the managements nor the workers take them seriously.managements nor the workers take them seriously.

4.0 Board Representation:4.0 Board Representation:  The role of a worker representative in the The role of a worker representative in the board of directors is essentially one of negotiating the worker’s board of directors is essentially one of negotiating the worker’s interest with the other members of the board. At times, this may interest with the other members of the board. At times, this may result in tension and friction inside the board room. The effectiveness result in tension and friction inside the board room. The effectiveness of workers’ representative at the board depend upon his ability to of workers’ representative at the board depend upon his ability to participate in D/M, his knowledge of the company affairs, his participate in D/M, his knowledge of the company affairs, his educational background, his level of understanding and also on the educational background, his level of understanding and also on the number of worker representatives in the Board.number of worker representatives in the Board.

Forms of WPMForms of WPM5.0 Workers Ownership of Enterprise: 5.0 Workers Ownership of Enterprise: Social Self-Social Self-

Management in Yugoslavia is an example of complete Management in Yugoslavia is an example of complete control of management by workers through an elected control of management by workers through an elected board and workers council. Even in such a system, board and workers council. Even in such a system, there exist two distinct Managerial & Operative there exist two distinct Managerial & Operative functions with different sets of persons to perform functions with different sets of persons to perform them. Though workers have the option to influence all them. Though workers have the option to influence all the decisions taken at the top level, in actual practice, the decisions taken at the top level, in actual practice, the Board and the Top Management team assume a the Board and the Top Management team assume a fairly independent role in taking major Policy fairly independent role in taking major Policy Decisions for the Enterprises.Decisions for the Enterprises.

6.0 Quality Circles QCs6.0 Quality Circles QCs : : QC is a small group of employees in the same work-area or doing a similar type of work who voluntarily meet regularly for about an hour every week to identify, analyse and resolve work-related problems, leading to improvement in their total performance, and enrichment of their work life.

Forms of WPMForms of WPM Underlying the QC concept is the assumption that the causes of

quality or productivity problems are unknown to workers and to management. It is also assumed that shop floor workers have hands on knowledge, are creative and can be trained to use this natural creativity in job problem solving. QCs, however, are a people building, rather than a people using, approach.

Forms of WPMForms of WPM7.0 Kaizen7.0 Kaizen : Kaizen, also known as Continuous Improvement, is an : Kaizen, also known as Continuous Improvement, is an

approach to work that systematically seeks to achieve small, approach to work that systematically seeks to achieve small, incremental changes in processes in order to improve efficiency and incremental changes in processes in order to improve efficiency and quality.quality.

Kaizen can be roughly translated from Japanese to mean “Kaizen can be roughly translated from Japanese to mean “GOOD GOOD CHANGECHANGE." The philosophy behind Kaizen is often credited to ." The philosophy behind Kaizen is often credited to Dr. W. Dr. W. Edwards Deming. Dr. DemmingEdwards Deming. Dr. Demming was invited by Japanese industrial was invited by Japanese industrial leaders and engineers to help rebuild Japan after World War II. leaders and engineers to help rebuild Japan after World War II.

Kaizen means improvement, continuous improvement involving everyone in the organization from top management, to Managers then to Supervisors, and to Workers.

Kaizen is a Japanese philosophy for process improvement that can be traced to the meaning of the Japanese words ‘Kai’ and ‘Zen’, which translate roughly into ‘to break apart and investigate’ and ‘to improve upon the existing situation’

Improvements through Kaizen have a process focus. Kaizen generates process-oriented thinking, is people-oriented, and is directed at people's efforts. Rather than identifying employees as the problem, Kaizen emphasizes that the process is the target and employees can provide improvements by understanding how their jobs fit into the process and changing it.

Kaizen’s Ten-Step ProcessKaizen’s Ten-Step Process The process improvement methodology can be molded The process improvement methodology can be molded

from from Kaizen’s Ten StepsKaizen’s Ten Steps, including , including Six SigmaSix Sigma, , Plan Do Plan Do Check Act (PCDACheck Act (PCDA) ) CYCLECYCLE, or even , or even Select Clarify Organize Select Clarify Organize Run Evaluate (SCORERun Evaluate (SCORE). This flexibility gives the Kaizen an ). This flexibility gives the Kaizen an ability to be used throughout your organization by any ability to be used throughout your organization by any experienced facilitator. These Ten Steps are the process map experienced facilitator. These Ten Steps are the process map through which the event is kept on track and participants through which the event is kept on track and participants remain engaged. See the steps below to compare the other remain engaged. See the steps below to compare the other Methodologies to the Kaizen Process.Methodologies to the Kaizen Process.

1. Define the problem1. Define the problem 2. Document the current situation2. Document the current situation 3. Visualize the ideal situation3. Visualize the ideal situation 4. Define measurement targets4. Define measurement targets 5. Brainstorm solutions to the problem5. Brainstorm solutions to the problem 6. Develop Kaizen plan6. Develop Kaizen plan 7. Implement plan7. Implement plan 8. Measure, record and compare results to targets8. Measure, record and compare results to targets 9. Prepare summary documents9. Prepare summary documents 10. Create short term action plan, on-going standards and 10. Create short term action plan, on-going standards and

sustaining plansustaining plan

Levels of WPMLevels of WPM Informative ParticipationInformative Participation: : This refers to This refers to

Management’s Information Sharing with Workers Management’s Information Sharing with Workers on such items those are concerned with workers. on such items those are concerned with workers. Balance Sheet, Production, Economic Conditions of Balance Sheet, Production, Economic Conditions of the Plant etc., are the examples of such items. It is the Plant etc., are the examples of such items. It is important to note that here workers have no right important to note that here workers have no right of close scrutiny of the information provided and of close scrutiny of the information provided and management has its prerogative to make decisions management has its prerogative to make decisions on issues concerned with workers.on issues concerned with workers.

Consultative ParticipationConsultative Participation: : In this type of In this type of participation, workers are consulted in those participation, workers are consulted in those matters which relate to them. Here, the role of matters which relate to them. Here, the role of workers is restricted to give their workers is restricted to give their VIEWS VIEWS only. only. However the acceptance and non-acceptance of However the acceptance and non-acceptance of these views depends on Management. Nonetheless, these views depends on Management. Nonetheless, it provides an opportunity to the workers to express it provides an opportunity to the workers to express their views on matters involving their interest.their views on matters involving their interest.

Levels of WPMLevels of WPM Associative Participation:Associative Participation: Here, the role of the Here, the role of the

Workers’ Council ( WC )Workers’ Council ( WC )is not just advisory unlike is not just advisory unlike consultative participation. In a way, this is an consultative participation. In a way, this is an advanced and improved form of Consultative advanced and improved form of Consultative Participation. Now, the management is under a moral Participation. Now, the management is under a moral obligation to acknowledge, accept and implement the obligation to acknowledge, accept and implement the Unanimous Decision of the WC.Unanimous Decision of the WC.

Administrative Participation:Administrative Participation: In the administrative In the administrative participation, decisions already taken are participation, decisions already taken are Implemented by the Workers. Compared to the Implemented by the Workers. Compared to the former three levels of participation, the degree of former three levels of participation, the degree of sharing authority and responsibility by the workers is sharing authority and responsibility by the workers is definitely more in this participation.definitely more in this participation.

Decisive Participation:Decisive Participation: Here, the decisions are Here, the decisions are taken Jointly by the Management and the Workers of taken Jointly by the Management and the Workers of an Organization. In fact, this is the ultimate level of an Organization. In fact, this is the ultimate level of WPM.WPM.

Necessary Conditions for Make the Necessary Conditions for Make the WPM Effective or SuccessfulWPM Effective or Successful

1. The objectives of WPM should be closely set by the 1. The objectives of WPM should be closely set by the parties concerned.parties concerned.

2. There should be a democratic, strong and representative 2. There should be a democratic, strong and representative union of workers to participate in management on behalf union of workers to participate in management on behalf of workers.of workers.

3 There should be a sincere feeling of participative 3 There should be a sincere feeling of participative management at all levels. Rigidity in terms of management at all levels. Rigidity in terms of hierarchical participation distorts the atmosphere for hierarchical participation distorts the atmosphere for participative management.participative management.

4. There should be continuous communication and 4. There should be continuous communication and consultation between the workers and management in consultation between the workers and management in matters affecting their functioning.matters affecting their functioning.

5. The Workers and Management should develop positive 5. The Workers and Management should develop positive approach and favorable attitude to Participative approach and favorable attitude to Participative Management. Conducting Training and Orientation Management. Conducting Training and Orientation Progranmmes for the parties concerned can help create a Progranmmes for the parties concerned can help create a conducive, environment for successful application of conducive, environment for successful application of WPM. WPM.