industrial relations mod 1&2

8/19/2019 Industrial Relations Mod 1&2

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MBA III SEM

3.5.2: Industrial and Employee Relations

Course material

Module 1: Industrial Relations

-Dr.Anupama..Mala!i

Introdu"tion o# Industrial relation

Content $

%istori"al Ba"&!round

Meanin!

De#inition

'ature

()*e"ti+es

S"ope

Importan"e

,arties to Industrial Relation

Approa"es


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%istory

Industrial relations has its roots in the industrial revolution which created the modern

employment relationship by spawning free labor markets and large-scale industrial organizations

with thousands of wage workers. As society wrestled with these massive economic and social

changes, labor problems arose. Low wages, long working hours, monotonous and dangerous

work, and abusive supervisory practices led to high employee turnover, violent strikes, and the

threat of social instability. Intellectually, industrial relations was formed at the end of the 1th

century as a middle ground between classical economics and !ar"ism.

#he relation between workers and management have undergone $imalayan changes in our

country there had been a sys tem of king and his sub%ects , al l should work to

improve the coffers of the king. Later &amindars came and workers were at their

me rc y ' so me ti me bonded also, later with the formation of (ast India company and )ritish

*ule a heart less $ire and fire system was established Industrial workers were no man+s child

neither the employers or government cared for them, there were no union also.

radually enlightened leaders came in l ike, okale, ! andhi *oy, #ilak etc

felt the need for workers union. #heir relentless efforts forced both governments

an d the e mp lo ye rs to think of w orke rs lot s mall u n i o n s w e r e f o r m e d ,

g o ve r n m en t e n ac t ed r u le s l i ke #r ad e u n i o n A c t 1 /0 . I n du s t r i a l

disputes Act etc.

arious #a"tors responsi)le #or tis are-

rowing prosperity

*ising wages

orker2s higher standard of living

(ducation

reater mobility

http://en.wikipedia.org/wiki/Industrial_revolutionhttp://en.wikipedia.org/wiki/Strike_actionhttp://en.wikipedia.org/wiki/Strike_actionhttp://en.wikipedia.org/wiki/Industrial_revolution


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Individually owned organization have became 3orporate enterprises.

4rogressive , status-dominated , secondary group-oriented , sophisticated class of workers

has came into being who have their own trade unions , thus gained bargaining power

which enable them to give a tough fight to their employers to establish their rights in the

growing industrial society.

Legislation to safeguard the rights of the industrial workers in private enterprises.

3hanges in the techni5ues and methods of production

Meanin!

Industry6 refers to 7any productive activity in which an individual 8or a group of individuals9 is 8are9 engaged6.

)y 7relations6 we mean 7the relationships that e"ist within the boundary wall of the

industry between the employer and his workmen.6

#he term Industrial relations are basically the interactions between employers, employees and

the government, and the institutions and associations.

Accordingly, industrial relations concern to the study and practice of collective bargaining, trade

unionism, and labor-management relations, while human resource management is a separate,

largely distinct field that deals with nonunion employment relationships and the personnel

practices and policies of employers.

Industrial relations has become one of the most delicate and comple" problems of modern

industrial society. Industrial progress is impossible without cooperation of labors and harmonious

relationships. #herefore, it is in the interest of all to create and maintain good relations between

employees 8labor9 and employers 8management9.

/e main "on"epts o# industrial relations are

1. 4reservation and promotion of economic interest of workers along with social interest/. 4eace and productivity goes hand in hand hence. Attempt to reduce industrial dispute and

promote peace is a necessity.


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:. (mployer employee relation should be made healthy and growing

; . * un ni ng o f t he i nd us tr y, d ay t o d ay w or k s ho ul d b e m ad e mo r e

democratic with increasing workers participation


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'ature

#hree types of relations between two components.

• (mployer-(mployer

• (mployer-(mployee

• (mployee-(mployee

It e"ists within the boundary wall of the Industry. e"ist in both the organized or

unorganized sectors of industry.

It is a web of rules formed by the govt., and business community and labour.

3onflict =olving- >rom the earliest phase of industrialization from which the workers

formerly working with their own tools entered into power driven factories, owned by

owners? to minimization of breakdown due to industrial conflicts of later state and further

to industrial peace.

!ulti- @imensional- Industrial relation do not function in a vacuum but multi-

dimensional in nature and are conditioned with three determinants 8i9 Institutional factors

8ii9 (conomic factors 8iii9 #echnological >actors.

• Institutional #a"tors are included items such as state policy, labour laws, voluntary

codes, collective agreements, labourers+ unions and employers+ organisation, social

institution like the community, caste, %oint family, creed, system of beliefs, etc, attitudes

of work, systems of power status, relative nearness to the centers of power motivation

and influence and industrial relations.

• E"onomi" #a"tors are included economic organisation 8socialist, capitalist, communist,

individual ownership, company ownership, government ownership9 power of labour and

employers, the nature and composition of the labour force and the sources of supply and

demand in the labour market.

• /e"nolo!i"al #a"tors come the techni5ues of production, modernization and

rationalisation schemes, capital structures etc.

@ynamic and @eveloping concept


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3omplimentary process

3omple"

()*e"ti+es

/o sa#e!uard te interest o# la)or and mana!ement- by securing the highest level of

mutual understanding and good-will among all those sections in the industry which

participate in the process of production.

/o a+oid industrial "on#li"t or stri#e and de+elop armonious relations which are an

essential factor in the productivity of workers and the industrial progress of a country.

/o raise produ"ti+ity to a i!er le+el - by lessening the tendency to high turnover and

fre5uency absenteeism.

/o esta)lis and promote te !ro4t o# an industrial demo"ra"y.

/o eliminate or minimie te num)er o# stri&es6 lo"&outs - by providing reasonable

wages, improved living and working conditions etc.

estin! o# interest o# te 4or&ers in te industries in 4i" tey are employed.

/o )rin! )etter understandin! and "ooperation )et4een employers and 4or&ers.

/o esta)lis a proper "annel o# "ommuni"ation )et4een 4or&ers and mana!ement.

/o ensure "onstru"ti+e "ontri)ution o# trade unions.

/o 4or& in te dire"tion o# esta)lisin! and maintainin! industrial demo"ra"y.

/o ensure 4or&ers7 parti"ipation in de"ision-ma&in!.

/o in"rease te morale and dis"ipline o# 4or&ers.

/o ensure )etter 4or&in! "onditions6 li+in! "onditions and reasona)le 4a!es.


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/o de+elop employees to adapt temsel+es #or te"nolo!i"al6 so"ial and e"onomi"

"an!es.

/o ma&e positi+e "ontri)utions #or te e"onomi" de+elopment o# te "ountry.

Importan"e

!aintenance of harmonious industrials relations is on vital importance for the survival and

growth of the industrials enterprise. ood industrial relations result in increased efficiency and

hence prosperity, reduced turnover and other tangible benefits to the organization. #he

significance of industrial relations can be summarized as below?

1. It esta)lises industrial demo"ra"y: Industrial relations means settling employees

problems through collective bargaining, mutual cooperation and mutual agreement

amongst the parties i.e., management and employees+ unions. #his helps in establishing

industrial democracy in the organization which motivates them to contribute their best to

the growth and prosperity of the organization.

/. It "ontri)utes to e"onomi" !ro4t and de+elopment: ood industrial relations lead to

increased efficiency and hence higher productivity and income. #his will result in

economic development of the economy.

:. It impro+es morale o# e 4or& #or"e: ood industrial relations, built-in mutual

cooperation and common agreed approach motivate one to contribute one+s best, result in

higher productivity and hence income, give more %ob satisfaction and help improve the

morale of the workers.

;. It ensures optimum use o# s"are resour"es: ood and harmonious industrial relations

create a sense of belongingness and group-cohesiveness among workers, and also a

congenial environment resulting in less industrial unrest, grievances and disputes. #hiswill ensure optimum use of resources, both human and materials, eliminating all types of

wastage.


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management and employees through mutual agreement to which both these parties are

bound. #his results in banning of the unfair practices being used by employers or trade

unions.

0. It prompts ena"tment o# sound la)our le!islation: Industrial relations necessitate

passing of certain labour laws to protect and promote the welfare of labour and safeguard

interests of all the parties against unfair means or practices.

B. It #a"ilitates "an!e: ood industrial relations help in improvement of cooperation, team

work, performance and productivity and hence in taking full advantages of modern

inventions, innovations and other scientific and technological advances. It helps the work

force to ad%ust themselves to change easily and 5uickly

C. 8ninterrupted produ"tion ' #he most important benefit of industrial relations is that

this ensures continuity of production. #his means, continuous employment for all from

manager to workers. #he resources are fully utilized, resulting in the ma"imum possible

production. #here is uninterrupted flow of income for all. =mooth running of an industry

is of vital importance for several other industries to other industries if the products are

intermediaries or inputs to e"porters if these are e"port goods to consumers and

workers, if these are goods of mass consumption.

. Redu"tion in Industrial Disputes ' ood industrial relations reduce the industrial

disputes. @isputes are reflections of the failure of basic human urges or motivations to

secure ade5uate satisfaction or e"pression which are fully cured by good industrial

relations. =trikes, lockouts, go-slow tactics, gherao and grievances are some of the

reflections of industrial unrest which do not spring up in an atmosphere of industrial

peace. It helps promoting co-operation and increasing production.

1D. %i! morale ' ood industrial relations improve the morale of the employees.(mployees work with great zeal with the feeling in mind that the interest of employer and

employees is one and the same, i.e. to increase production. (very worker feels that he is a

co-owner of the gains of industry. #he employer in his turn must realize that the gains of

industry are not for him along but they should be shared e5ually and generously with his

workers. In other words, complete unity of thought and action is the main achievement of


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industrial peace. It increases the place of workers in the society and their ego is satisfied.

It naturally affects production because mighty co-operative efforts alone can produce

great results.

11. Mental Re+olution ' #he main ob%ect of industrial relation is a complete mental

revolution of workers and employees. #he industrial peace lies ultimately in a

transformed outlook on the part of both. It is the business of leadership in the ranks of

workers, employees and overnment to work out a new relationship in consonance with

a spirit of true democracy. )oth should think themselves as partners of the industry and

the role of workers in such a partnership should be recognized. En the other hand,

workers must recognize employer+s authority. It will naturally have impact on production

because they recognize the interest of each other.

1/. Redu"ed 9asta!e ' ood industrial relations are maintained on the basis of cooperation

and recognition of each other. It will help increase production. astages of man, material

and machines are reduced to the minimum and thus national interest is protected.

S"ope

/e "ordial and ealty la)our mana!ement relations "ould )e )rou!t in-

• )y safeguarding the interest of the workers

• )y fi"ing reasonable wages

• )y providing good working conditions

• )y providing other social security measures

• )y maintaining healthy trade unions

• )y collective bargaining.

/e industrial pea"e "ould )e attained


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• )y setting industrial disputes through mutual understanding and agreement

• )y evolving various legal measure and setting up various machineries such as orks

3ommittee, )oards of 3onciliation, Labour 3ourts etc.

/e industrial demo"ra"y "ould )e a"ie+ed

• )y allowing workers to take part in management and

• )y recognition of human rights.

,arties in industrial relation

Industrial relation re5uires a study regarding I9 conditions of work 8ii9 compensation paid

for t h e s w e a t t h e w o r k e r m a k e s i i i 9 p e r m a n e n c y o f t h e % o b a s s u re d

continuance of work or otherwise.

#he parties to Industrial *elations are

19 9or&ers and teir unions, the intelligence level knowledge of workers, back-ground

of worker leaders, real or bogus their linkage with political unions, are to be

considered for the effective relations.

/ 9 ' at u re o # e mp l oy m en t a n d e mp lo y er s , w h e th e r b e n ev o le n t ,

in te re st ed in workers or aiming to get as much profit as possible s5ueezing

workers thei r attitude plays vital role in maintaining better relations. hether they want

to have team, and growth of their team as a whole or %ust hire and fire system.

: 9 , o s i t i o n o # ! o + e r n m e n t 6 p o l i t i " a l 4 i l l s w h e t h e r

o p p or t u n i t i e s f a v or i ng employers o r inte rested in workers, a re t o be

seen. #heir interest in worker scan be seen through their actions in creating

Laws for labour welfare and implementing them effectively.


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Approa"es

Approa"es to Industrial Relations

Industrial conflicts are the results of several socio-economic, psychological and political factors.

Farious lines of thoughts have been e"pressed and approaches used to e"plain his comple"

phenomenon. Ene observer has stated, 7An economist tries to interpret industrial conflict in

terms of impersonal markets forces and laws of supply demand. #o a politician, industrial

conflict is a war of different ideologies ' perhaps a class-war. #o a psychologist, industrial

conflict means the conflicting interests, aspirations, goals, motives and perceptions of different

groups of individuals, operating within and reacting to a given socio-economic and political

environment6.

,sy"olo!i"al approa"

According to psychologists, problems of industrial relations have their origin in the perceptions

of the management, unions and rank and file workers. #hese perceptions may be the perceptions

of persons, of situations or of issues involved in the conflict. #he perceptions of situations and

issues differ because the same position may appear entirely different to different parties. #he

perceptions of unions and of the management of the same issues may be widely different and,

hence, clashes and may arise between the two parties. Ether factors also influence perception and

may bring about clashes.

#he reasons of strained industrial relations between the employers and the employees can be

understood by studying differences in the perception of issues, situations and persons between

the management groups and labour groups.

#he organizational behavior of inter-groups of management and workers is of crucial importance

in the pattern of industrial relations. #he group-dynamics between the two conflicting groups in

industrial relations tend to shape the behavioral pattern.

So"iolo!i"al approa"


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Industry is a social world in miniature. #he management goals, workers+ attitudes, perception of

change in industry, are all, in turn, decided by broad social factors like the culture of the

institutions, customs, structural changes, status-symbols, rationality, acceptance or resistance to

change, tolerance etc. Industry is, thus inseparable from the society in which it functions.

#hrough the main function of an industry is economic, its social conse5uences are also important

such as urbanization, social mobility, housing and transport problem in industrial areas,

disintegration of family structure, stress and strain, etc. As industries develop, a new industrial-

cum-social pattern emerges, which provides general new relationships, institutions and

behavioural pattern and new techni5ues of handling human resources. #hese do influence the

development of industrial relations.

%uman relations approa"

$uman resources are made up of living human beings. #hey want freedom of speech, of thought

of e"pression, of movement, etc. hen employers treat them as inanimate ob%ects, encroach on

their e"pectations, throat-cuts, conflicts and tensions arise. In fact ma%or problems in industrial

relations arise out of a tension which is created because of the employer+s pressures and workers+

reactions, protests and resistance to these pressures through protective mechanisms in the form of

workers+ organization, associations and trade unions.

#hrough tension is more direct in work place gradually it e"tends to the whole industry and

sometimes affects the entire economy of the country. #herefore, the management must realize

that efforts are made to set right the situation. =ervices of specialists in )ehavioral =ciences

8namely, psychologists, industrial engineers, human relations e"pert and personnel managers9 are

used to deal with such related problems. Assistance is also taken from economists,

anthropologists, psychiatrists, pedagogists, tec. In resolving conflicts, understanding of human

behavior ' both individual and groups ' is a pre-re5uisite for the employers, the union leaders

and the government ' more so for the management. 3onflicts cannot be resolved unless themanagement must learn and know what the basic what the basic needs of men are and how they

can be motivated to work effectively.

;andian approa"


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#his approach is based on his fundamental principles of truth and non violence . #hese principles

evolved the concept of non co-operations and trustees. here conflict e"ists it should be

resolved by non co-operations G non violence .

andhi %i advocated the followings ?-

orkers should seek reversal of reasonable demands only through collection action.

If they have to organize a strike, trade unions should seek by bailout authority from all

the workers, but in remain peaceful and use non violent methods.

It has now been increasingly recognized that much can be gained by the managers and the

worker, if they understand and apply the techni5ues of human relations approaches to industrial

relations. #he workers are likely to attain greater %ob satisfaction, develop greater involvement in

their work and achieve a measure of identification of their ob%ectives with the ob%ectives of the

organization the manager, on their part, would develop greater insight and effectiveness in their

work.

,rin"iple o# ;ood Industrial Relations

• #he willingness and ability of management and trade unions to deal with the problems

freely, independently and with responsibility.

• *ecognition of collective bargaining.

• @esirability of associations of workers and managements with the overnment while

formulating and implementing policies relating to general economic and social measures

affecting industrial relations.

• >air redressel of employee grievances by the management

• 4roviding satisfactory working conditions and payment of fair wage.

• Introducing a suitable system of employees education and training.

• @eveloping proper communication system between management and employees.


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• #o ensure better working conditions, living conditions and reasonable wages.

• #o develop employees to adapt themselves for technological, social and economic

changes.

• #o make positive contributions for the economic development of the country.

Causes o# ,oor Industrial Relations

4erhaps the main cause or source of poor industrial relations resulting in inefficiency and labour

unrest is mental laziness on the part of both management and labour. !anagement is not

sufficiently concerned to ascertain the causes of inefficiency and unrest following the laissez-

faire policy, until it is faced with strikes and more serious unrest. (ven with regard to methods of

work, management does not bother to devise the best method but leaves it mainly to the

subordinates to work it out for themselves. 3ontempt on the part of the employers towards the

workers is another ma%or cause. $owever, the following are briefly the causes of poor industrial

relations?

• !ental inertia on the part of management and labour

• An intolerant attitude of contempt of contempt towards the workers on the part of

management.

• Inade5uate fi"ation of wage or wage structure

• Hnhealthy working conditions

• Indiscipline

• Lack of human relations skill on the part of supervisors and other managers

• @esire on the part of the workers for higher bonus or @A and the corresponding desire of

the employers to give as little as possible

• Inappropriate introduction of automation without providing the right climate


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• Hnduly heavy workloads

• Inade5uate welfare facilities

•

@ispute on sharing the gains of productivity

• Hnfair labour practices, like victimization and undue dismissal

• *etrenchment, dismissals and lock-outs on the part of management and strikes on the part

of the workers

• *etrenchment, dismissals and lock-outs on the part of management and strikes on the part

of the workers

Distin"tion )et4een uman relations and industrial relations

#he term human relations+ lays stress upon the processes of inter-personal relationships among

individuals as well as the behavior of individuals as members of groups. #he term industrial

relations+ is used widely in industrial organizations and refers to the relations between the

employers and workers in an organization, at any specified time.

#hus, while problem of human relations are personal in character and are related to the behavior

of individuals where moral and social element predominate, the term industrial relations+ is

comprehensive covering human relations and the relations between the employers and workers in

an organization as well as matters regulated by law or by specific collective agreement arrived at

between trade unions and the management.

$owever, the concept of industrial relations+ has undergone a considerable change since the

ob%ective of evolving sound and healthy industrial relations today is not only to find out ways

and means to solve conflicts or resolve difference but also t secure unreserved cooperation and

goodwill to divert their interest and energies toward constructive channel. #he problems of

industrial relations are therefore, essentially problems that may be solved effectively only by

developing in conflicting social groups of an industrial undertaking, a sense of mutual

confidence, dependence and respect and at the same time encouraging them to come closer to

each other for removing misunderstanding if any, in a peaceful atmosphere and fostering

industrial pursuits for mutual benefits.


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Industrial Relations in India

I* has undergone a wide change in Indian scenario, during the end of )ritish period in India an

awakening in working class was seen. #he world wars forced the employers to

become more friendly with the workers, to see un interrupted production is ensured during war

time. Eut of their self interest they have to become benevolent, At the same time leaders also

came up, !r. *oy #ilak !ahatma andhi and others were instrumental to organize workers

union, and also force government to frame labour laws, to improve the lot of workers. In 1/

Industrial dispute Act was enacted later in 1;B it became industrial dispute, act

where in machineries to solve industrial dispute were indicated.

8 1 9 / e D i r e " t i + e p r i n " ip l e s o # s t a t e p o l i " y 6 a s e n s h r i n e d i n o u r

c o n s t i t u t i o n s tipulate that the s tate should endeavor to improve the workers

conditions, working conditions, and also productivity of industries which will

improve wealth of nations.

8/ 9 S e+ e ra l a " ts a r e e na " te d ) y p a rl i am en t b oth b ef ore a nd a ft er

inde p enden c e which were focusing on workers interests, welfare health etc. #he #ric Act+

>actory, Act. Industrial @ispute Act #rade union Act gives ma%or direction to achieve the

constitutional directives.

8 : 9 ) e s i d e s t h i s , w a g e s A c t 1 ; C , ) o n u s A c t 1 0 < , r a v i d i t y A c t 1 B / ,

(5ua l remuneration Act 1B


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a 9 ( m p h a s i s o n f o r m a t i o n o f p e r m a n e n t i n d u s t r i a l

* e l a t i o n s commission 8 = tr i ng e n t a c t io n o n c o n tr a v en t io n o f a m u t ua l ly

ag re ed co de of conducted9 A check off system was prescribed where in by ballot

election, how many are real members of a union how many, dual, bogus etc could come to

light.

#his did not find well with unions but some unions have arranged for deduction of their

subscription through employers pay counter to some e"tent the check of system is working.

3auses of industrial unrest in India can be classified mainly under four heads they are

1< inan"ial Aspe"ts

a9 @emand for increase of wages, salaries and other perks. workers demand goes on increasing

with the increase in cost of living

b9 @emand for more perks, and fringe benefits. Issue of bonus also has become a c o n ten t io us

one , eve n thou gh )on us Ac t has com e f i"i ng min imu m rate payable as C1J:K

of their total salary in spite of profit or loss incurred by the industry

.c9 Incentives festivals allowances, concessions etc re5uires a hike every now and then, workers

compare these benefits with other industries and demand them 'without comparing the capacity

of the industry where they are working.

/< 'on #inan"ial aspe"ts

a 9 o r k i n g h o u r s , r e s t h o u r s , # r a v e l i n g h o u r s a r e s o u r c e o f d i s p u t e s . I f

hou ses a r e provided some section of workers want to include travel time also as working

hours.

b9 Introduction of machines, computers modernization, and automation ' In effect any act

of management which may result in economy in man power is resisted

c9 !ore facilities like free meals free group travel etc are sought every now and then

:9 Administrators Causes


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a9 on implementation of agreements awards and other local settlements ' with full sprit

b9 =tifling with recognition of labour unions though registered,

c9 Attempt to weaken e"isting trade unions and trying to foist fake unions

d9 Hn healthy working conditions

e9 Lack of skill on the part of leaders supervisors

f9 @isproportionate works loads, favoritism

g9 Fictimization, nepotism attitude of management in recruitment, promotion,

transfer etc

h9 Instead of re deployment or skill improvement easier way of retrenchment forced

voluntary retirement schemes 83.*.=9 are adopted.

;< ;o+ernment and politi"al pressures

a9 Industrial unions affiliating with political unions which are in power, resulting

infre5uent shift of loyalty and resultant unrest

b9 4oli ti cian influenc ing workers group cl oses e"amples is the a lco ' taken over

by =terlite, the state government supported 8propped up9 strike at chattisgarh state against alco,

for months together resulting in total stoppage of the industry for some time.

c 9 = o m e t i m e u n i o n s , w o r k e r s s t r i k e a g a i n s t m e r g e r s , a c 5 u i s i t i o n ,

t a k e n o v e r , disinvestments policies, of government and private sectors.

#e"t uestion

1. hat is industrial relationM ("plain the ob%ective of Industrial relationM )ring out the

significance of industrial relationsM

/. @iscuss different approaches to industrial relationsM


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:. hat are the principles of good industrial relationsM

;. ("plain the role of the overnment, (mployer and the #rade Hnion in maintaining sooth

industrial relationsM

Module 2:

Industrial Relations ,oli"ies

E+olution o# Industrial Relations ,oli"ies

In pre-independen"e India

=tate intervention in labourJ industrial relations had its beginning when the )ritish overnment

in India was constrained to protect its commercial interests in this country. An ILE 4ublication

observes ? 7 >ar from protecting the interests of labour, the earlier attempts to regulate labour

consisted of enactments such as the Assam Labour Act, the workmen+s )reach of 3ontract Act,

1C


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#he beginning of industrial relations dynamics can be traced back to the inception of the Indian

Labour 3onference as far as 1;/ by ).*.Ambedkar, when the policy of bringing together three

parties namely, govt., management and labour on a common platform as consultative tripartite

forum for all matter of labour policy and industrial relations was accepted.

In ,ost-Independen"e India

#he Industrial @isputes Act 81;B9 provided for

#he establishment of a permanent machinery for the settlement of disputes in the shape of certain

authorities like the orks 3ommittee, 3onciliation Efficers, Industrial #ribunals, and Labour

3ourts?

!aking an award of a #ribunal or any settlement brought about by the conciliator binding on the

parties and legally enforceable.

#his Act seeks?

#he prevention and settlement of industrial disputes in all industries through conciliation,

arbitration and ad%udicationJ

#o prohibit strikes lock-outs during the pendency of conciliation and ad%udication proceeding.

)esides the enactment, / ma%or efforts were made to amend the #rade Hnions Act 1/0 ' once in

1;B and again in 1


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influenced by the American ational Labour relations. Hnfortunately these amendments to #rade

Hnions Act never came into force.

In 1


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Its strategic importance e"tends beyond the limited frontiers of union-management relationship

and overlaps with the future prospects for Indian democracy on one hand, and the basic concepts

and assumptions of economic development on the other. #he set of strategic choices must be

made in the midst of economic and political difficulties that the country is undergoing.

'ational Commission (n a)our

overnment of India setup the ational 3ommission on Labor with the key motive to streamline

issues concerned to the labor force in the country and to find genuine solution of the problems

they face. #his 3ommission was also re5uired to guide the government for the betterment of the

labor force for which timely guidance was to be given through suggestions and advices which

could be implemented for strong work condition and to ensure they get their rights.

A)out 'ational Commission on a)or

ational 3ommission on Labor was established by 3entral overnment under the Labor Act

/DD:, Act 0


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taken care of under the proper legal system. #his 3ommission has causal relation with the

!inistry of Labor and reports its Labor @epartment to improve the conditions of all labor forces.

Mandate

ational 3ommission on Labor has been mandated to work and suggest all types of measures

that could make things easier for the labor force. #he 3ommission has been given the powers to

e"plore, evaluate and suggest measures which could prove worthwhile to make the life of the

labor force worthwhile. #his 3ommission submits its reports to the 3hief Labor Efficer in the

!inistry of Labor.

=ome of the important mandates that are prescribed for ational 3ommission on Labor include

developing an effective process after thorough consultation with the various authorities

concerned for development purpose to initiate a workable and effective national level voice of

the labor force under the law which tackles all the issues concerned to them. ational

3ommission on Labor advises the !inistry of (mployment and =ocial elfare as well for

thorough assessment of the conditions and welfare of the labor force in the entire country.

3onsultations continue and newer steps are taken for the betterment of system and governance.

Se"ond 'ational Commission on a)or

It was in /DD/ that the government established the second ational 3ommission on Labor with

involving !r. *avindra Farma to serve it as 3ommission chairman. #he newly established

3ommission offered new recommendations for the labor force for better system and governance.

It suggested measures for the orkers (ducation =chemes and to make the policies which are in

the interest of the labor force.

Re"ommendation Reports

ational 3ommission on Labor has submitted its report to the 3entral overnment to streamline

the labor force in the country. Its report mainly concentrated on the advices and

recommendations in the form of effective suggestions to put together the laws on the industrial


24/43

relations and to bring them together for genuine outcome for uni5ue solution of problems which

labors face.

*eport draft was submitted with several suggestions and guidelines which 3entral overnment

would implement in this regard. #he government has also discussed this 3ommission+s report

after submission in 10 and has taken many initiatives to implement the recommendations.

Implementation o# Re"ommendations

Ence ational 3ommission on Labor submitted its report for implementation the government

took instant measures and planned for the implementation in various phases. It also approved

several recommendations and guidelines to take into account for the legal bounding and to

ensure that a new trend is developed through giving voice to the labor force in the country whose

sufferings were of the multiple types and the concerns re5uired immediate legal and policy based

solutions.

#he !inistry of (mployment and =ocial elfare as well as the Labor !inistry took the report

keenly and developed a framework through initiating the consultation process for the better

implementation over the period. As ational 3ommission on Labor had been given the status of

a statutory body which recommended changes in the labor laws its impact is powerful for the

sustainable labor related reforms.

Steps In+ol+ed in Employee ;rie+an"e ,ro"edure

rievances are but natural in organisations. $owever like disciplinary problems, grievances also

benefit none. $ence, there is a need for handling or redressing grievances. >or this, most large

organisations in India have, therefore, evolved a formal grievance procedure which enables anorganisation to handle grievances satisfactorily. As a matter of fact, there are several substantive

reasons for having a formal grievance procedure in an organisation.

/e important ones are listed as #ollo4s:


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8i9 It provides an established and known method of processing grievances and keeps this open.

8ii9 It brings grievance to the knowledge of management so that it can know and understand them

to take necessary action for their settlement.

8iii9 It gives an assurance to the employee that there is a mechanism available to consider his or

her grievance in a dispassionate and detached manner.

8iv9 Fenting his grievance and being heard gives the employee a feeling of being cared for. #his

not only gets it off his chest6, but also helps him improve his morale and productivity.

8v9 Involving several levels of organisation in the grievance procedure provides help on two

dimensions. >irstly, the supervisor who is the first level in the grievance process cannot be by- passed by the worker. =econdly, involvement of several hierarchical levels in the grievance

machinery releases e"clusive reliance on the supervisor who can+t %eopardize the interest of the

employee. #he supervisor knows his is a placatory role.

8vi9 Involvement of various levels makes them know the kinds of issues that concern workers

and managers.

8vii9 Lastly, it checks the managers from taking arbitrary and biased actions against the workersas they know that their actions are sub%ect to challenge.

A""ordin! to Mi"ael Armstron!76 a #ormal !rie+an"e pro"edure pro+ides te #ollo4in!

)ene#its:

8i9 A channel for an aggrieved employee to e"press and present his grievance.

8ii9 An assurance for dispassionate handling of one+s grievance.

8iii9 An assurance about the availability of some machinery for prompt handling of grievance.

8iv9 A means by which an aggrieved employee can release his feelings of discontent or

dissatisfaction with his %ob.


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rievance which indicates discontent and dissatisfaction among employees adversely affects

their productivity. In other words, by not initiating timely action to deal with grievance, the

organisation tends to lose the productive efforts of the discontented employee. It is indeed

unrealistic to assume that an aggrieved or dissatisfied employee will put his or her best efforts on

the %ob. #he redressal of the employees+ grievances, therefore, assumes importance.

/e pro"edure te mana!ement applies to deal 4it te employees !rie+an"es "an )e stated

as #ollo4s:

1. Timely Action:

#he first and foremost re5uisite in grievance handling is to settle them immediately as and when

they arise. Er say, grievances need to be nipped in the bud. =ooner the grievance is settled, lesser

will be its effects on employees+ performance. #his re5uires the first line supervisors be trained

in recognizing and handling a grievance properly and promptly.

2. Accepting the Grievance:

#he supervisor should try to recognize and accept the employee grievance as and when it is

e"pressed. It must be noted that acceptance does not necessarily mean agreeing with the

grievance, it simply shows the willingness of the supervisor to look into the complaint

ob%ectively and dispassionately to deal with the grievance. (vidences suggest that more the

supervisor shows his or her concern for the employees, lesser is the number of grievances raised

by the employees.

3. Identifying the Problem:

#he grievance e"pressed by the employee maybe at times simply emotionally, over-toned,

imaginary or vague. #he supervisor, therefore, needs to identify or diagnose the problem stated

by the employee.


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4. Collecting the act!:

Ence the problem is identified as a real problem, the supervisor should, then, collect all the

relevant facts and proofs relating to the grievance. #he facts so collected need to be separated

from the opinions and feelings to avoid distortions of the facts. It is useful to maintain the facts

for future uses as and when these are re5uired.

". Analy!ing the ca#!e of the Grievance:

$aving collected all the facts and figures relating to the grievance, the ne"t step involved in the

grievance procedure is to establish and analyse the cause that led to grievance. #he analysis of

the cause will involve studying various aspects of the grievance such as the employees past

history, fre5uency of the occurrence, management practices, union practices, etc.. Identification

of the cause of the grievance helps the management take corrective measures to settle the

grievance and also to prevent its recurrence.

$. Ta%ing &eci!ion:

In order to take the best decision to handle the grievance, alternative courses of actions are

worked out. #hese are, then, evaluated in view of their conse5uences on the aggrieved employee,

the union and the management. >inally, a decision is taken which is best suited to the given

situation in the organisation. =uch decision should serve as a precedent both within the

department and the organisation.

'. Implementing the &eci!ion:

#he decision, whatsoever taken, must be immediately communicated to the employee and also

implemented by the competent authority. !cregor+s 7$ot- stove *ule6 should be strictly

followed while implementing the decision. #he decision, thus, implemented should also be

reviewed to know whether the grievance has been satisfactorily resolved or not.

In case, it is not resolved, the supervisor once again needs to go back to the whole procedure step

by step to find out an appropriate decision or solution to resolve the grievance.


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$owever, if the grievance is not resolved at the internal level, the grievance is, then, referred to

an arbitrator who is acceptable to the employee as well as the management. #he arbitrator

follows a 5uasi-%udicial process where both the parties present evidence.

)ased on the evidences so produced, the matter is cross-e"amined in thread-bare. #he arbitrator

then thinks, applies his mind and arrives at a decision. #he decision taken by arbitrator is final

and binding on both the parties.

/e Indian Institute o# ,ersonnel Mana!ement6 ol&ata as listed te #ollo4in! #i+e steps

"ontained in a !rie+an"e pro"edure:

1. #he employee should raise his or her grievance with the immediate supervisor.

/. If the decision taken by the supervisor is not acceptable to the aggrieved employee, he or she

should be made known to whom ne"t in the echelon of management, he or she should refer the

grievance.

:. #he grievance should be handled promptly and dispassionately.

;. Enly the grievance raised by the employee having understood the instructions issued to him or

her employer will register the protest and set the grievance handling procedure in motion.


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(tage 2:

In case, he is not satisfied with the decision, he goes to the departmental head for the settlement

of his grievance.

(tage 3:

If the aggrieved employee is still dissatisfied, he forwards it to the appropriate chairman of the

zonal works committee 8&39. (ach zonal works committee consists of five management and

five union representatives. #heir decision is final and binding on both the parties. #he individual

grievances considered by the zonal committee pertain to promotion, suspension, discharge and

dismissal.

(tage 4:

If the zonal committee either does not reach to a unanimous decision or the decision is not

accepted by the employee, the grievance is, then, forwarded to the central works committee. #his

committee consists of representatives of top management and union officials. $ere also, the

unanimity of principle operators and the decision taken by the committee is binding on both the

parties.

(tage ":

If this committee also does not reach to an unanimous decision, the matter is referred to the

3hairman of the company. $is or her decision is final and is binding on both the parties.

#he stage at which the grievance is settled indicates the climate or the spirit that prevails in the

organisation. Ebviously, lower the level of settlement, the 5uicker the redressal of a grievance.

#he concerned officer, be the supervisor or manager, remains in a position to 7give and take6 atinitial lower stages such as stage 1. radually, he or she comes under the glare of publicity his

or her position becomes harder at the subse5uent stages.

Fiewed from an aggrieved employee+s point, the delay in the settlement of grievance would

intensify his or her an"iety and dissatisfaction. hich, in turn would affect his or her morale and


30/43

productivity. #he colleagues would also get affected. >or the organisation, the delay in settlement

is a loss of goodwill and camaraderie that might have been built up over the period.

3ollective )argaining? 3oncept G Impact in India

3ollective bargaining has been defined by different e"perts in different ways. evertheless, it is

treated as a method by which problem of wages and conditions of employment are resolved

peacefully and voluntarily between labor and management. $owever, the term collective

bargaining is opposed to individual bargaining. =ometimes, it is described as a process ofaccommodation between two conflicting interests $ere, power stands against power.

#he International Labour .Erganization defines collective bargaining?

7As negotiations about working conditions and terms of employment between an employer, or a

group of employers, or one or more employers+ organizations, on the one hand, and one or more

representative workers+ organization on the other with a view to reaching agreement.6

#his definition confines the term collective bargaining as a means of improving conditions of

employment. )ut in fact, collective bargaining serves something more.4erlman aptly

stated,63ollective bargaining is not %ust a means of raising wages and improving conditions of

employment. or is it merely democratic government in industry. It is above all techni5ue,

collective bargaining as a techni5ue of the rise of a new class is 5uite different from the desire to

displace or abolish6 the 7old ruling class6 to gain e5ual rights as a class. to ac5uire an e"cessive

%urisdiction in that sphere where the most immediate interests, both material and spiritual, are

determined, and a shared %urisdiction with the older class or classes in all other spheres6

3ELL(3#IF( )A*AI in India has been the sub%ect matter of industrial ad%udication

since long and has been defined by our Law 3ourts. In Karol Leather

Karamchari Sangathan v. Liberty Footwear 3ompany8101 I LLN.


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observed that, 73ollective bargaining is a techni5ue by which dispute as to conditions of

employment is resolved amicably by agreement rather than coercion.6

According to the 3ourt, the Industrial @isputes Act, 1;B seeks to achieve social %ustice on the

basis of collective bargaining. In an earlier %udgment in #itagarh Nute 3o. Ltd. v. =riram

#iwari81C/ II LLN ;19 , the 3alcutta $igh 3ourt clarified that this policy of the legislature is

also implicit in the definition of industrial dispute+.

In Ram Prasad Viswakarma v. Industrial ribunal 81B/, LLN. /1/9 the 3ourt observed that, 7It

is well known how before the days of collective bargaining+, labour was at a great disadvantage

in obtaining reasonable terms for contracts of service from its employer.As trade unions

developed in the country and 3ollective bargaining became

the rule, the employers found it necessary and convenient to deal with the representatives of

workmen, instead of individual workmen, not only for the making or modification of contracts

but in the matter of taking disciplinary action against one or more workmen and as regards of

other disputes.6

In !harat Iron "orks v. !hagubhai !alubhai Patel 8AI* 1D =3 /;B9, it was held that

73ollective bargaining, being the order of the day in the democratic,social welfare =tate,

legitimate trade union activities, which must shun all kinds of physical threats, coercion or

violence, must march with a spirit of tolerance, understanding and grace in dealings on the part

of the employer. =uch activities can flow in healthy channel only on mutual cooperation between

the employer and the employees and cannot be considered as irksome by the management in the

best interests of its business.@ialogue with representatives of a union help striking a delicate

balance in ad%ustments and settlement of various contentious claims and issues.6

#hese definitions only bring out the basic element in the concept i.e., civilized confrontation

between employers and employees and the whole process is regulated by statutory provisions.


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,osition o# Colle"ti+e Bar!ainin! in India:

3ollective )argaining machinery essentially is a reflection of a particular social and political

climate. #he history of the trade union movement shows that unions are affiliated to one or the

other political parties. As a result most of the trade unions are controlled by outsiders. 3ritic says

that the presence of outsiders, is one of the important reasons for the failure of collective

bargaining in India.

(utsiders in te pro"ess o# Colle"ti+e Bar!ainin!:

#he #rade Hnions Act, 1/0, permits outsiders to be the office bearers of a union to the e"tent of

half the total number of office bearers. =o, it permits one to be the leader of the union who does

not actually work in the industry. =ometimes a dismissed employee working as a union leader

may create difficulties in the relationship between the union and the employer. evertheless,

e"perience shows that outsiders who have little knowledge of the background of labour

problems, history of labour movement, fundamentals of trade unionism and the techni5ue of the

industry and with even little general education assume the charge of labour union and become

the self-appointed custodian of the welfare of workers. #he employers, therefore, have been

reluctant to discuss and negotiate industrial matters with outsiders, who have no personal or

direct knowledge of day to day affairs of the industry.

Accordingly employees refuse recognition to the unions which are either controlled by the

politicians or affiliated to a particular political party or controlled by a particular individual.

overnment cannot morally compel employers to accord recognition to unions without driving

out the politicians from them. #he =tate must outright ban 7outsiders6 from the trade union body.

>urther, provision for political funds by trade unions should be eliminated, since it invariably

encourages the politicians to prey upon them. #he ational 3ommission on Labour has

overlooked this aspect. #he 3ommission does not favour a legal ban on non-employees for

holding the union office. It says that without creating conditions for building up the internal

leadership, a complete banning of outsiders would only make unions weaker. #he 3ommission

hopes that Internal leadership would develop through their education and training. Accordingly

the 3ommission suggests proportion of the outsiders and the workers in a union e"ecutive. En


33/43

realizing the problems of outsiders in the Hnion, the Industrial *elations )ill, 1CC proposes to

reduce the number of outsiders to two only.

,oliti"iation o# /rade 8nion mo+ement in India:

It is well known that the trade-union movement in India is divided on political lines and e"ists on

patronage of various political 4arties. !ost of the trade-union organizations have aligned

themselves with a political party with whom they find themselves philosophically close. It is

because of this that the Indian ational #rade Hnion 3ongress is considered to be the labour

wing of congress, whereas $.!.=. is considered to be the labour wing of =ocialist party. )hartiya

!a%door =angh pledges its allegiance to ).N.4. and 3.I.#.H. has the support of 3.4.I. 8!9. It is

also the case with the AI#H3 which had started as a national organization of workers but

subse5uently came to be controlled by the 3ommunist 4arty of India and is now its+ official

labour wing. 4olitical patronage of trade-unions has given a new direction to the movement

whose center of gravity is no longer the employees or workmen. #he centre has shifted towards it

leadership whose effectiveness is determined by the e"tent of political patronage and the

conse5uent capacity to obtain the benefit. #his shifting centre of power is the necessary

conse5uence of political parties search for workers votes, which they seek by conferring benefits

on them. =ince the public sector which is really the instrumentality of the =tate, has emerged as

the biggest employer in this country, the collective bargaining -between the union patronized by

the party-in-power and the employer has become an important methodology. It is because of this

process that agreements conferring benefits are signed even in those units where financial losses

are mounting. It is also our e"perience that in spite of wage increase end improved conditions of

service there has been no corresponding improvement in production or the productivity.

Also,most of the losses are being passed on to the consumers by increasing prices of the

products. It is in this conte"t that Nustice upta has, in his, Eur Industrial Nurisprudence6 made

the following observations?6If our e"perience is any guide, it reveals that Ievel of increase in

wages etc., 8in public sector undertaking9is now decided by the )ureau of 4ublic (nterprises

which takes into consideration only the 4olitical impact and 3onsumer resistance+ as two

dominant factors. #his is the reason why the prices of almost all products of necessity like coal,

iron and steel, cement, sugar etc. have been constantly increasing. A survey of pending and


34/43

decided industrial disputes of the last 1D years reveals that there was virtually no industrial

dispute regarding wage structure or bonus in any industry of some significance.

/e Industrial Disputes A"t 1>?@

It e"tends to the whole of India and regulates Indian labour law so f ar as that concerns trade unions. It came

into force April 1, 1;B.

Eb%ectives

#he ob%ective of the Industrial @isputes Act is to secure industrial peace and harmony by

providing machinery and procedure for the investigation and settlement of industrial disputes by

negotiations.

#he laws apply only to the organised sector. 3hapter F-), introduced by an amendment in 1B0,

re5uires firms employing :DD or more workers to obtain government permission for layoffs,retrenchments and closures. A further amendment in 1C/ 8which took effect in 1C;9 e"panded

its ambit by reducing the threshold to 1DD workers.

#he Act also lays down?

1. #he provision for payment of compensation to the workman on account of closure or lay

off or retrenchment.

/. #he procedure for prior permission of appropriate overnment for laying off or

retrenching the workers or closing down industrial establishments

:. Hnfair labour practices on part of an employer or a trade union or workers.

https://en.wikipedia.org/wiki/Indiahttps://en.wikipedia.org/wiki/Indiahttps://en.wikipedia.org/wiki/Indian_labour_lawhttps://en.wikipedia.org/wiki/Indian_labour_lawhttps://en.wikipedia.org/wiki/Industrial_disputehttps://en.wikipedia.org/wiki/Unemployment_benefitshttps://en.wikipedia.org/wiki/Retrenchmenthttps://en.wikipedia.org/wiki/Trade_unionhttps://en.wikipedia.org/wiki/Indiahttps://en.wikipedia.org/wiki/Indian_labour_lawhttps://en.wikipedia.org/wiki/Industrial_disputehttps://en.wikipedia.org/wiki/Unemployment_benefitshttps://en.wikipedia.org/wiki/Retrenchmenthttps://en.wikipedia.org/wiki/Trade_union


35/43

Applicability

#he Industrial @isputes Act e"tends to whole of India and applies to every industrial

establishment carrying on any business, trade , manufacture or distribution of goods and services

irrespective of the number of workmen employed therein.

(very person employed in an establishment for hire or reward including contract

labour , apprentices and part-time employees to do any manual, clerical, skilled, unskilled,

technical, operational or supervisory work, is covered by the Act.

#his Act though does not apply to persons mainly in managerial or administrative capacity,

persons engaged in a supervisory capacity and drawing O 1D,DDD p.m or e"ecuting managerial

functions and persons sub%ect to Army Act, Air >orce and avy Act or those in police service or

officer or employee of a prison.

Important Defnitions

• Se"tion 2A : Appropriate overnment

Any industry carried on by or under the authority of the 3entral ovt, or by a railway company or a @ock

Labour )oard, or the Industrial >inance 3orporation of India Ltd, or the (=I3, or the board of trustees of the

3oal !ines 4>, or >3I, or LI3 or in relation to any other industrial dispute, the state overnment.

• Se"tion 2 : Industry

#he definition of Industry under the Act is taken from the =upreme 3ourt2s %udgement in !angalore water

Su##ly and Sewerage !oard v. $. Ra%a##a.P1Q

/riple /est #ormulae #he organisation is Prima Facie an industry if it is

1. A systematic activity

/. Erganised by co-operation between an employer and an employee

:. for the production of goods and services calculated to satisfy human wants and wishes. 8 not spiritual or

pious in nature but inclusive of material things or services geared to seek celestal bliss9

https://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Tradehttps://en.wikipedia.org/wiki/Manufacturehttps://en.wikipedia.org/wiki/Distribution_(business)https://en.wikipedia.org/wiki/Distribution_(business)https://en.wikipedia.org/wiki/Contract_labourhttps://en.wikipedia.org/wiki/Contract_labourhttps://en.wikipedia.org/wiki/Apprenticehttps://en.wikipedia.org/wiki/Apprenticehttps://en.wikipedia.org/wiki/Prisonhttps://en.wikipedia.org/wiki/Industrial_Disputes_Act,_1947#cite_note-AIR_1978_SC_548-1https://en.wikipedia.org/wiki/Industrial_Disputes_Act,_1947#cite_note-AIR_1978_SC_548-1https://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Tradehttps://en.wikipedia.org/wiki/Manufacturehttps://en.wikipedia.org/wiki/Distribution_(business)https://en.wikipedia.org/wiki/Contract_labourhttps://en.wikipedia.org/wiki/Contract_labourhttps://en.wikipedia.org/wiki/Apprenticehttps://en.wikipedia.org/wiki/Prisonhttps://en.wikipedia.org/wiki/Industrial_Disputes_Act,_1947#cite_note-AIR_1978_SC_548-1


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• Se"tion 2BB: )anking company

• Se"tion 2; : (mployer

•

Se"tion 2 : Industry

• Se"tion 2 : Industrial dispute

• Se"tion 2A : Industrial dispute between individual and employer

• Se"tion 2A: Industrial establishment or undertaking

• Se"tion 2: Insurance company

• Se"tion 2A: !a%or port

• Se"tion 2B: !ine

• Se"tion 2' : 4ublic utility service

• Se"tion 2( :

• Se"tion 2RR: ages

• Se"tion 2S : orkmen 8Including an Apprentice9industrial act

Industrial Disputes: De#inition6 orms and /ypes

Concept o industrial disputes:


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In common parlance, dispute means difference or disagreement of strife over some issues be-

tween the parties. As regards industrial dispute, since its settlement proceeds as per the legal

provisions contained in the Industrial @isputes+ Act, 1;B, hence it seems pertinent to study the

concept of industrial disputes from a legalistic angle.

According to =ection / 8k9 of the Industrial @isputes Act, 1;B, the term industrial dispute+

means 7any dispute or difference between employers and employers or between employers and

workmen, or between workmen and workmen, which is connected with the employment or non-

employment or the terms of employment and conditions of employment of any person6.

#he above definition is too broad and includes differences even between groups of workmen and

employers engaged in an industry. $owever, in practice, industrial disputes mainly relate to the

difference between the workmen and the employers.

@ispute differs from discipline and grievance. hile discipline and grievance focus on

individuals, dispute focuses on collectivity of individuals. In other words, the test of industrial

dispute is that the interest of all or ma%ority of workmen is involved in it.

/e #ollo4in! prin"iples *ud!e te nature o# an industrial dispute:

1. #he dispute must affect a large number of workmen who have a community of interest and the

rights of these workmen must be affected as a class.

/. #he dispute must be taken up either by the industry union or by a substantial number of

workmen.

:. #he grievance turns from individual complaint into a general complaint.

;. #here must be some ne"us between the union and the dispute.


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Forms o Industrial Disputes:

/e industrial disputes are mani#ested in te #ollo4in! #orms:

=trikes? =trike is the most important form of industrial disputes. A strike is a spontaneous and

concerted withdrawal of labour from production. #he Industrial @isputes Act, 1;B defines a

strike as 7suspension or cessation of work by a group of persons employed in any industry,

acting in combination or a concerted refusal or a refusal under a common understanding of any

number of persons who are or have been so employed to continue to work or accept

employment6.

According to 4atterson 7=trikes constitute militant and organised protest against e"isting

industrial relations. #hey are symptoms of industrial unrest in the same way that boils symptoms

of disordered system6.

@epending on the purpose, !amoria et. al. have classified strikes into two types? primary strikes

and secondary strikes.

)i* Primary (tri%e!:

#hese strikes are generally aimed against the employers with whom the dispute e"ists. #hey may

include the form of a stay-away strike, stay-in, sit-down, pen-down or tools- down, go-slow and

work-to-rule, token or protest strike, cat-call strike, picketing or boycott.

)ii* (econdary (tri%e!:

#hese strikes are also called the sympathy strikes+. In this form of strike, the pressure is applied

not against the employer with whom the workmen have a dispute, but against the third person

who has good trade relations with the employer.

$owever, these relations are severed and the employer incurs losses. #his form of strike is

popular in the H=A but not in India. #he reason being, in India, the third person is not believed to

have any locus standi so far the dispute between workers and employer is concerned.


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;eneral and politi"al stri&es and )ands "ome under te "ate!ory o# oter stri&es:

o"&-(uts:

Lock-out is the counter-part of strikes. hile a strike+ is an organised or concerted withdrawalof the supply of labour, lock-out+ is withholding demand for it. Lock-out is the weapon available

to the employer to shut-down the place of work till the workers agree to resume work on the

conditions laid down by the employer. #he Industrial @isputes Act, 1;B defined lock-out as 7the

temporary shutting down or closing of a place of business by the employer6.

Lock-out is common in educational institutions also like a Hniversity. If the Hniversity authority

finds it impossible to resolve the dispute raised by the students, it decides to close-down 8or say,

lockout9 the Hniversity till the students agree to resume to their studies on the conditions laid

down by the Hniversity authority. *ecall, your own Hniversity might also have declared closure

sometimes for indefinite period on the eve of some unrest J dispute erupted in the campus.

;erao:

herao means to surround. It is a physical blockade of managers by encirclement aimed at

preventing the egress and ingress from and to a particular office or place. #his can happen

outside the organisational premises too. #he managers J persons who are gheraoed are not

allowed to move for a long time.

=ometimes, the blockade or confinements are cruel and inhuman like confinement in a small

place without light or fans and for long periods without food and water. #he persons confined are

humiliated with abuses and are not allowed even to answer 7calls of nature6.

#he ob%ect of gherao is to compel the gheraoed persons to accept the workers+ demands without

recourse to the machinery provided by law. #he ational 3ommission on Labour has refused to

accept gherao+ as a form of industrial protest on the ground that it tends to inflict physical duress

8as against economic press9 on the persons gheraoed and endangers not only industrial harmony

but also creates problems of law and order.


40/43

orkmen found guilty of wrongfully restraining any person or wrongfully confining him during

a gherao are guilty under =ection :: or :;D of the Indian 4anel 3ode of having committed a

cognizable offence for which they would be liable to be arrested without warrant and punishable

with simple imprisonment for a term which may be e"tended to one month or with a fine up to

*s.


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for where he came from. #he aftermath of gherao created a tuneful atmosphere in the Hniversity

3ampus for about two weeks.

Pic%eting and +oycott:

4icketing is a method designed to re5uest workers to withdraw cooperation to the employer. In

picketing, workers through display signs, banners and play-cards drew the attention of the public

that there is a dispute between workers and employer.

orkers prevent their colleagues from entering the place of work and pursuade them to %oin the

strike. >or this, some of the union workers are posted at the factory gate to pursuade others not to

enter the premises but to %oin the strike.

)oycott, on the other hand, aims at disrupting the normal functioning of the organisation. #he

striking workers appeal to others for voluntary withdrawal of co-operation with the employer. In-

stances of boycotting classes and e"aminations are seen in the Hniversities also.

Type! of Ind#!trial &i!p#te!:

#he ILE+ has classified the industrial disputes into two main types.

/ey are:

1. Interest @isputes

/. rievance or *ight @isputes.

/ey are dis"ussed one )y one:

1. Interest Disputes:

#hese disputes are also called economic disputes+. =uch types of disputes arise out of terms and

conditions of employment either out of the claims made by the employees or offers given by the

employers. =uch demands or offers are generally made with a view to arrive at a collective


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agreement. ("amples of interest disputes are lay-offs, claims for wages and bonus, %ob security,

fringe benefits, etc.

2. ;rie+an"e or Ri!t Disputes:

As the name itself suggests, grievance or right disputes arise out of application or interpretation

of e"isting agreements or contracts between the employees and the management. #hey relate

either to individual worker or a group of workers in the same group.

#hat+s way in some countries such disputes are also called individual disputes+. 4ayment of

wages and other fringe benefits, working time, over-time, seniority, promotion, demotion,

dismissal, discipline, transfer, etc. are the e"amples of grievance or right disputes.

If these grievances are not settled as per the procedure laid down for this purpose, these then

result in embitterment of the working relationship and a climate for industrial strife and unrest.

=uch grievances are often settled through laid down standard procedures like the provisions of

the collective agreement, employment contract, works rule or law, or customs Jusage in this

regard. )esides, Labour 3ourts or #ribunals also ad%udicate over grievance or interest disputes.

enerally, industrial disputes are considered as dysfunctional+ and unhealthy+. #hese are mani-

fested in the forms of strikes and lock-outs, loss of production and property, sufferings to

workers and consumers and so on. )ut, sometimes industrial disputes are beneficial as well.

It is the dispute mainly which opens up the minds of employers who then provide better working

conditions and emoluments to the workers. At times, disputes bring out the causes to the

knowledge of the public where their opinion helps resolve them.


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industrial relations mod 1&2

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