Notes: 403 Employment Relations

By:

Dr.Deepali S.Patil

Dnyansagar Institute of Management and Research

Unit no.1: Conceptual Framework of ER

• Concept, Philosophy,

Approaches of ER –

• The Dunlop’s Approach ,

• The Social Action Approach, The Social Action Approach,

• The Human Relations Approach,

• The Gandhian Approach,

• Evaluation of ER

• Constitutional & Legal framework of Industrial

Relations

The employment relationship is the legal link between employers and

employees. It exists when a person performs work or services under certain

conditions in return for remuneration.

Employee relations replaces the term industrial relation and covers much more

than just the collective relationships between employers and their workforce.

Whereas, previously, the focus fell on the influence of trade unions and

collective workforce rights, a long-awaited shift towards individual workplace

rights without membership is finally gaining traction.

Actors in Industrial Relations

Workers

(Trade Union)

Industrial

Government

(Society)

Employers (

Employers

Association)

Industrial

relations

(IR)

Employer associations

• The main function of employer associations is

to represent employers in collective

bargaining negotiations. Such representationbargaining negotiations. Such representation

is optional for employers under the Law on

Unions and Collective Bargaining Agreements

although it is compulsory for employees

Role of trade union

• The main role of trade union is to ensure the

welfare of its members such as safeguarding

the interests of its members, protecting the

reliability of its trade, achieving higher wages reliability of its trade, achieving higher wages

by securing economic benefits.

Role of court and tribunal

• The court is a tribunal which can be presided

over by a judge, several judges or a

magistrate, and is tasked with hearing and

giving out judgement in civil and criminalgiving out judgement in civil and criminal

cases. It is part of the judiciary arm of the

government whose role is to ensure that laws

are adhered to or followed strictly

•Institutional factor

•Economic factors

•Technological factors•Technological factors

•Psychological factors

•Political and legal

factors

•Global factors

• Technological factor:

• it include automation, computerization, high degree

of modernization, sci. mgmt.

• Since these factors have a direct influence on

employment status, wage level, collective bargaining

process in an organization.process in an organization.

• Employee relations includes:

• working conditions, pay and benefits – (traditional

issues associated with trade unions and collective

workplace rights);

• work-life balance, rewards and recognition - (more

culture-led and leadership dependent).culture-led and leadership dependent).

• The key thing is managing those relations well. Whether you’re a business

owner, line manager or HR consultant, our Culture Economy Report shows

that fostering positive relations improves business performance.

• Definition’s:

Employment relation can be defining as employer and

employees relationship in a formal and informal nature that

arises between management and employee interactions in all

working situation.

• According to Armstrong (2003),

Employee relations consist of all those areas of humanEmployee relations consist of all those areas of human

resource management that deals with employees directly and

through collective agreements where trade unions are

recognised. The union practices for the welfare and good

working condition of the employees. Employee relations are

concerned with generally managing the relationship between

employer and employees at the workplace that can be formal

e.g. contract of employment or procedural agreement.

• Importance of Employee Relation

• Encourage good organizational climate, mutual understanding

and cooperation.

• There is a clear and fair policy in solving the problems of the

organization.

• Employee relation treats people as valuable assets.

• There is a equitable, fair and transparent treatment of

employees.employees.

• There is an effective communication throughout the

organization.

• Employee Relations Philosophy:

• In order to create an atmosphere favorable to effective employee relations

organization through following objectives:

• Equal Employment Opportunity

• Opportunity for Advancement

• Diversity

• Open Dialog Safe Workplace Safe Workplace

• Compensation

• Evaluation of ER :a. Indusrial relations under

british rule

-Colonial market emerged for british goods.

-cotton mill estd in mumbai 1853 and kolkata 1855

-Tata iron & steel estd 1911

-Still worker s cond. Very harsh, low wage,

disputes invoved

-Factory act 1881 was enacted

b. Industrial relation in first

worldwar

Ist world war was opportunity to disgust for local

factories in india

•Worker’s compensation act 1923•Worker’s compensation act 1923

•Trade union act 1926

•Industrial employment act 1946

•Industrial dispute act 1947 were estd.

c. Post independence -Post independence era saw developing relation

between industry and labour

-Minimum wages act

-Factory act

-Employee state insurance act estd.

Ensured peace between industry and labour

Now Modern IR became dynamic.

• Approaches of ER –Industrial conflicts are the results of several socio-economic,

psychological and political factors.

• The Dunlop’s Approach ,

• The Social Action Approach, • The Social Action Approach,

• The Human Relations Approach,

• The Gandhian Approach

,

Psychological approach:

The problems of IR have their origin in the perceptions of the management,

unions and the workers.unions and the workers.

• The conflicts between labour and management occur because every

group negatively perceives the behavior of the other i.e. even the honest

intention of the other party so looked at with suspicion.

• (i.e organization have different individual & group personalities, family

background , education , these difference create problem among them &

competing each others)

Sociological approach:A no. of sociological factors such as the value system, customs, & traditions

affect the relations between labour & management.

• such as urbanization,

• social mobility,• social mobility,

• housing and transport problem in industrial areas, disintegration of family

structure,

• stress, etc. Such sociological changes impact industrial life

Gandhian approach:

• Gandhiji can be called one of the greatest labour leaders of modernIndia.

• He also appealed to the workers to behave as trustees, not to regard• He also appealed to the workers to behave as trustees, not to regardthe mill and machinery as belonging to the exploiting agents but toregard them as their own, protect them and put to the best use theycan.

• In short, the theory of trusteeship is based on the view that all formsof property and human accomplishments are gifts of nature and assuch, they belong not to any one individual but to society.

•

Dunlop's approach:

•

• This also known systems theory. John Dunlop developed it in 1958.

The theory attempts to provide tools of analysis for interpretation of

industrial relations facts and activities.

• The Dunlop’s model gives great significance to external or environmentalforces. In other words, management, labor, and the government possess ashared ideology that defines their roles within the relationship andprovides stability to the system.

Giri approach:

Acc. To V.V.Giri (former president of India) collective bargaining & joint

negotiations be used to settle dispute between labour & management.

Outside inference must be avoided at all costs while resolving differencesOutside inference must be avoided at all costs while resolving differences

between the parties.

TU should use voluntary arbitration in place of compulsory adjudication to

resolve disputes.

Giri observed there should be bipartite machinery in every industry to

settle differences from time to time with active support of govt. & there

should not outside interference upon industrial peace.

• Evaluation of ER :a. Indusrial relations under

british rule

-Colonial market emerged for british goods.

-cotton mill estd in mumbai 1853 and kolkata 1855

-Tata iron & steel estd 1911

-Still worker s cond. Very harsh, low wage,

disputes invoved

-Factory act 1881 was enacted

b. Industrial relation in first

worldwar

Ist world war was opportunity to disgust for local

factories in india

•Worker’s compensation act 1923•Worker’s compensation act 1923

•Trade union act 1926

•Industrial employment act 1946

•Industrial dispute act 1947 were estd.

c. Post independence -Post independence era saw developing relation

between industry and labour

-Minimum wages act

-Factory act

-Employee state insurance act estd.

Ensured peace between industry and labour

Now Modern IR became dynamic.

legal framework of IR in India:

• The trade union act,1926

• The industrial employment act 1946

• The industrial Dispute Act, 1947

• Employee State Insurance Act 1948

• Minimum Wages Act 1948:• Minimum Wages Act 1948:

• The factories act 1948

• The payment of bonus act 1965

Through Indian constitution the govt. of india have enacted various laws for

regulating the industrial relation.

legal framework of IR in India:

The trade union act,1926

Act legalize the formation of trade unions by granting to

workmen their rights of association & organizing union.

The industrial employment act 1946:

Act deal with the conditions of employment of workers in anAct deal with the conditions of employment of workers in an

industrial establishment.

The industrial Dispute Act, 1947:

An act that is meant to resolve disputes between ‘Employer

and Employees’, ‘Employees and Employees’, ‘Employer and

Employer’ within positive contexts are set out in the Act.

Employee State Insurance Act 1948:

It’s a Social security legislation’ with highly worthy intent and purpose,

legislated by the parliament.

the mechanism for ensuring delivery of various benefits from this Act to the

workers and their family members

Payment of wages act 1936:

Under this act he employers determined he mode and manner of wage

payment as they liked.

Minimum Wages Act 1948:

It seeks to care for the welfares of labour. However, unfair labour practices

prevail in spite of this piece of legislation.

Employees’ Provident fund and Miscellaneous Act 1952:

It is a social security legislation that puts the obligation of responsibility on

the employees’ Provident Fund Organization (EPFO) to ensure security for

the future of the employees. By nature, it is proactive in its intent and

purpose

• Factories act 1948:

Aim is to secure health, safety, welfare, proper working hours,

leave and other benefit for workers employed in factories.leave and other benefit for workers employed in factories.

Payment of bonus act,1965

Act aims to outline the principles of payment of bonus acc. to

perfect formula and to provide machinery for enforcement of

bonus. (Min- 8.33%& max 20% of basic)

Unit no.2: Industrial Relations Laws

2.1 The Industrial Disputes Act 1947: Sections # 2to 19

Provisions under Chapter V, VA, VC and chapter VI, VII.

2.2 Industrial Employment (Standing Orders) Act

1946: Section # 2,3,5,6,7,9,10,11, 12,13,14 1946: Section # 2,3,5,6,7,9,10,11, 12,13,14

2.3 The Contract Labour (Regulation and Abolition)

Act 1970 Section# 2 and all provisions under Chapter

III,IV,V,VI,and VII

Elements of ID

2.1 The Industrial Disputes Act 1947

� Definition of Industrial Dispute falls easily into three parts

� There must be a dispute or differences;

� The dispute or difference must be between employers

and employers, or between employers and workmen, or and employers, or between employers and workmen, or

between workmen and workmen;

� The dispute or difference must be connected with the

employment or non-employment or the terms of

employment or with the conditions of labour of any

person.

• en.wikipedia.org

Appropriate Government [section 2(a)]– means the Central Government in

relation to

Any industry carried-on:

� By or under the authority of the central government, or

� By a railway company, or

� Concerning any such controlled industry as may be specified in this

behalf by the central government.

Average pay [section 2(aaa)]- “Average Pay” means the average of

monthly paid workman:

� In the case of monthly paid workman, in the three complete calendar

months;

� In the case of weekly paid, workman, in the four complete weeks;

� In the case of daily paid workman, in the twelve full working days.

• Award [Section 2(b)]- “Award” means an interim or a final

determination of any Industrial dispute or of any question

relating thereto by any Labour Court, Industrial Tribunal or

Nation Industrial Tribunal and includes an arbitration award

made under Section 10-A

• Board [Section 2(c)]- “Board” means a Board of Conciliation

constituted under the Act.

• Closure [Section 2(cc)]- “Closure” as the permanent closing

down of a place of employment or thereof.

• Conciliation Officer [Section 2(d)]- “Conciliation Officer” means a Conciliation Officer appointed under the Act.

• Conciliation Proceeding [Section 2(e)]- “Conciliation Proceeding” means any proceeding held by a Conciliation Officer or Board of Conciliation under the Act.

• Court [Section 2(f)]- “Court” means a Court of Inquiry constituted under the Act.

• Industrial Dispute: means any dispute between employers and employers, employers and workmen and between workmen and workmen; which is connected with employment or non employment or the terms of employment.

• Employer [Section 2(g)]- “Employer” means in relation to an industry:

Carried-on by or under the authority of any department of the Central

Government or a State Government, the authority prescribed in this behalf;

or where no authority is prescribed, the head of the department; Carried-on

by or on behalf of a local authority, the chief executive office of that authority.

• Wages [Section 2(rr)]- “Wages”means a remuneration payable to • Wages [Section 2(rr)]- “Wages”means a remuneration payable to

workman in respect of his employment being expressed in terms of money,

and includes:

� Allowances

� Value of house accommodation

� Any travelling concession

� Any commission payable on the promotion of sales or business or both

• Workmen [Section 2(s)]- “Workman” means any person

employed in any industrial establishment to do any skilled or

unskilled manual, supervisory, technical or clerical work for

hire or reward, whether the terms of employment be

expressed or implied.

INTEREST

DISPUTES

RIGHTS

DISPUTES

RECOGNITION

DISPUTES

DISPUTES OVER

UNFAIR LABOUR

PRACTICESWhatishumanresource.com

ECONOMIC FACTORS

NON-ECONOMIC FACTORS

MANAGEMENT PRACTICES TRADE MANAGEMENT PRACTICES TRADE

UNION PRACTICES

LEGAL AND POLITICAL FACTORS

Yourarticlelibrary.com

• ‘Authorities under the Act

• Chapter II

Intends prevention and settlement of ID through variousauthorities with sufficient power, authorities are both internal&external

A)Voluntary settlement and conciliation agencies

• Grievance redressed committee

• Work committee (Sec 3)

• Conciliation officer (Sec 4)

• Board of conciliation (Sec 5)

• Court of inquiry (Sec 6)

B) Adjudication machinery:

i) Labour Courts (sec 7)

ii)Industrial Tribunals(7A)

iii)National tribunals(7B)

WORKS COMMITTEE [Sec. 3]:

• In the case of an industrial establishment in which 100 or

more workmen are employed, the appropriate Government

may require the employer to constitute a 'Work Committee'.

It consists of equal number of representatives of employers

and workmen engaged in the establishment. Theand workmen engaged in the establishment. The

representatives of the workmen shall be chosen from

amongst the workmen engaged in the establishment and in

consultation with the registered trade union, if any. Works

committee deals with the workers problem arising day to day

in the industrial establishment.

CONCILIATION OFFICER [Sec. 4]:

• The appropriate Government is empowered to appoint any number of persons, as it thinks fit, to be conciliation officers. The conciliation officer having duty of mediating and acts as the mediators in between the parties to resolve the dispute.

In the case of public utility services matters like strikes and lockouts the conciliation officer can initiate the conciliation proceeding ad tries to settle the dispute in between the parties.tries to settle the dispute in between the parties.

If the conciliation officer fails to resolve the dispute between the parties, he should report to the appropriate government. If necessary the dispute shall be referred to the Board, Labour Court, Tribunal or National Tribunal, by the appropriate government. [Sec 12 (5)]

Duties of conciliation officers. [Sec 12]

Hold conciliation proceedings relating to Strikes and lockouts procedural matters of public utility services.

• Investigate the matters of the disputes.

• Conciliation officers shall induce the parties to come to a fair and amicable settlement of the dispute.

• Duty to send the report of settlement of dispute and memorandum of the • Duty to send the report of settlement of dispute and memorandum of the settlement signed by the parties to the dispute to the government or his superior.

• In case of failure of settlement of dispute in between parties, duty to send them to the government or his superior, report of facts and circumstances relating to the disputes and in his opinion, a settlement could not be arrived at,

• Duty to send the report to the government or his superior within 14 days from the commencement of the proceeding. or within such shorter period as may be fixed by the appropriate Government

CONCILIATION BOARD [Sec. 5]

• as occasion arises appropriate Government is also authorisedto constitute a Board of conciliation for promoting the settlement of an industrial dispute. It consists of a chairman who shall be an independent person, and two or four other members. The members appointed shall be in equal numbers to represent the parties to the dispute. On the dispute being to represent the parties to the dispute. On the dispute being referred to the Board it is the duty of the Board to do all things as it thinks fit for the purpose of inducing the parties to come to fair and amicable settlement.

If there are many parties relating to or in the dispute the government may appoint the conciliation board consisting of the above said members

Duties of board. [Sec 13]

• it shall be the duty of the Board to endeavor to bring about a settlement of dispute.

• Investigate the matters relating to the dispute between parties and inducing the parties to come to a fair and amicable settlement of the dispute.

• In case of failure of settlement of dispute in between parties, duty to send to the government the report of facts and duty to send to the government the report of facts and circumstances relating to the disputes and board opinion, a settlement could not be arrived at,

• The Board shall submit its report under this section within 2 months of the date on which the dispute was referred to it or within such shorter period as may be fixed by the appropriate Government.

COURT OF ENQUIRY [Sec. 6]

• as occasion arises, Government can initiate a Court of Inquiry. This Court of Inquiry was to find out matters connected with or relevant to an industrial dispute. Where a Court consists of two or more members, one of them shall be appointed as the chairman.appointed as the chairman.

A Court of Inquiry looks into only matters which are referred to it by Government and submits its report to the Government ordinarily within certain period from the date of reference.

ADJUDICATION

Labour Court [Sec. 7

• A Labour Court consists of one person only. A person is qualified to be appointed as

presiding officer of a Labour Court, if:

(a) he is, or has been a judge of a High Court, or

(b) he has been a District judge or an Additional District judge for at least three years, or

(c) he has held the office of the chairman or any other member of the Labour Appellate

Tribunal or of any Tribunal for at least two years, orTribunal or of any Tribunal for at least two years, or

(d) he has held any judicial office in India for not less than seven years, or

(e) he has been the presiding officer of a Labour Court constituted under any Provincial Act

or State Act for at least five years.

(f) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of

the State Labour Department , having a degree in law and at least 7 years’ experience in the

labour department after having acquired degree in law including three years of experience

as Conciliation Officer:

Industrial Tribunal [Sec. 7A]:

he appropriate Government may, by notification in the Official Gazette, constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any matter, whether specified in the Second Schedule or the Third Schedule and for performing such other functions as may be assigned to them under this Act.

• A Tribunal consists of one person only.• A Tribunal consists of one person only.

For appointment as the presiding officer of a Tribunalhe is, or has been, a Judge of a High Court; or

• he has, for a period of not less than 3 years, been a District Judge or an Additional District Judge;

• he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department,

National Tribunal [Sec. 7 (B)]:

• The Central Government may, by notification in the Official

Gazette, constitute one or more National Industrial Tribunals.

Its main function is the adjudication of industrial disputes

which involve questions of national importance or affecting

the interest of two or more States.the interest of two or more States.

Chapter IIA - Notice of change [Section 9A.]

• No employer, who proposes to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule, shall effect such change,-

(a) without giving to the workmen likely to be affected by such change a notice in the (a) without giving to the workmen likely to be affected by such change a notice in the prescribed manner of the nature of the change proposed to be effected; or

(b) within twenty-one days of giving such notice:

ARBITRATION

• an arbitrator is appointed by the Government. Whether the dispute is

before Labour Court, or Industrial Tribunal or National Tribunal, the parties

can go to arbitration by written agreement. The arbitrators conduct the

investigation in to the dispute matters and give arbitration award (final

decision or settlement or decree) as for making reference of an industrial

dispute. If an industrial dispute exists or is apprehended and the employer dispute. If an industrial dispute exists or is apprehended and the employer

and the workman agree to refer the dispute to an arbitration, they may

refer the dispute to an arbitration. But such reference shall be made

before the dispute has been referred under Sec. 19 to a Labour Court or

Tribunal or National Tribunal by a written agreement. The arbitrator may

be appointed singly or more than one in number. The arbitrator or

arbitrators shall investigate the dispute and submit to the appropriate

Government the arbitration award signed by the arbitrator or all the

arbitrators, as the case may be.

Grievance procedure

• Grievance Settlement Machinery [Sec. 9 (c)]:

• This Section is incorporated as a new chapter II B of the Act. As per this Section, the employer in relation to every industrial establishment in which fifty or more workmen are employed or have been employed on any day in the preceding twelve months, shall provide for, in accordance with the rules made in that behalf under this Act, a Grievances Settlement Authority.every industrial establishment employing 20 or more workmen shall have one or more Grievance Redressal Committee for the resolution of disputes arising out of individual grievances.disputes arising out of individual grievances.

• The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen.

• The chairperson of the Grievance Redressal Committee shall be selected from the employer and from among the workmen alternatively on rotation basis every year.

• The total number of members of the Grievance Redressal Committee shall not exceed more than 6:

AWARDS [Secs 16, 17, 17A]

• The award of a Labour Court or Tribunal or National Tribunal shall be in writing and shall be signed by its presiding officer. [Sec 16(2)].

• Every arbitration award and every award of a Labour Court, Tribunal or National Tribunal shall, within a period of 30 days from the date of its receipt by the appropriate Government, be published in such manner as the appropriate Government from the date of its receipt by the appropriate Government, be published in such manner as the appropriate Government thinks fit. [Sec 17(1)].

• The award published shall be final and shall not be called in question by any Court in any manner whatsoever. [Sec 17 (2)].

• An award (including an arbitration award) shall become enforceable on the expiry of thirty days from the date of its publication [Sec 17A (1)].

Strike

� A strike is a spontaneous and concerted withdrawal of labour from production

temporarily.

� A collective stoppage of work by a group of workers for pressuring their employers to

accept certain demands.

According to section 2(q) ,̋ strike means a cessation of work by a body of persons

employed in any industry acting in combination, or a concerted refusal under a common employed in any industry acting in combination, or a concerted refusal under a common

understanding of a number of persons who are or have been so employs to continue to

work or to accept employmentʺ

Strike

ʺLock-outmeans the temporary closing of a place of employment or he suspension of

work, or the refusal by an employer to continue to employ any number of

person employed by himʺ

Lay-Offs

• According to section 25A of chapter VA of Industrial Dispute Act 1947, certain establishments do not have any provisions relating to layoff of the employees by the employer. In such circumstances, layoff would be considered without any authority of law.

• Such establishments are:Industrial establishments in which less than 50 workmen are employed, on an average per working day.

• Industrial establishments which are of a seasonal character and in which work is performed only intermittently.

Retrenchment

• [Section 2(oo)]"retrenchments" means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action but does not include-

(a) voluntary retirement of the workman; or(b) retirement of the workman on reaching the age of superannuation if (b) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or43[(bb) termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation on that behalf contained therein; or](c) termination of the service of a workman on the ground of continued ill-health;]

2.2 Industrial Employment (Standing Orders) Act 1946:

Section # 2,3,5,6,7,9,10,11, 12,13,14

• Steps under act:

• Standing order

• Applicability

• Certifying officer

• Submission of draft standing orders• Submission of draft standing orders

• Certification of standing order

• Appeal

• Date of operation of standing order

• Duration and modification of standing order

• Penalties

� Introduction� There was no uniformity in the conditions of service of

workers until this act was brought

� The frequent causes of friction b/w management & workers inindustrial undertaking in India were mainly, due to absence ofclear cut employment condition known to the workers

� This is why – The Labor investigation committee 1944-46observed: “ An Industrial worker has the right to know theThis is why – The Labor investigation committee 1944-46observed: “ An Industrial worker has the right to know theTerms & condition which he is expected to follow”

� And consensus of opinion in favor of separate central lawmaking it obligatory on the part of employer in the countryto frame & enforce with the approval of Govt -Defining the Employment condition.

Conditions of employment differ at

Org A& Org B

WAYS TO MAINTAIN EMPLOYMENT CONDITIONS OF

SERVICE IN UNIFORMALY

Industrial employment

Conditions of Service

1.Written 2.Uniformity 3.Industrial Peace 4.No change of1.Written 2.Uniformity 3.Industrial Peace 4.No change of

detriment of labour

Objectives

Standing orders

� Object

� To minimize Industrial conflict

- To foster harmonious relation between employers & employee

- To require workers to define the condition of workers

� Scope & Applicability

- This Act apply to the whole of India

- It applies to every industrial establishment wherein 100 moreestablishment wherein 100 more

• workmen are employed or , were employed on any

• day of the preceding 12 Month

• 13-B.Act not apply to certain industrial establishments.—

• To which the provisions of Chapter7 of the Bombay Industrial Relation

Act, 19746 or Madhya Pradesh Industrial Employment ( Standing Order)

1961 are applicable(Section 1)

• Definitions:� Certifying officer

• It means labor Commissioner who is appointed by the

appropriate Govt for the purpose of certifying the S.O

� Appellate Authority

• It refers to an authority which is appointed by the Govt for the • It refers to an authority which is appointed by the Govt for the

purpose of seeing to & appeal provided by the employer or

any of the workmen

� Standing Order

• The rules pertaining to working of establishment to be

submitted by Employer

• Procedure, certification , Modification , Appeal:

With in 6 months from the date on which this Act is

applicable to an industrial establishment :

the employer of an industrial establishment is

required to submit to the certifying officer five

copies of the draft standing orders proposed to becopies of the draft standing orders proposed to be

adopted by him in his industrial establishment

together with the prescribed particulars( Form 1) of

workmen, employed and name of trade union if

any to which they belong. (Section 3)

� On receipt of the draft, the certifying officer shall forward a( Form

2) copy thereof to the trade union, if any, of the workmen or

• to the workmen requiring objections if any, which the workmen

may desire to make to the draft standing orders to be submitted by

him within 15 days from the receipt of the notice.

• Then the certifying officer shall decide whether or not any

modification or addition to the draft is necessary to render it

certifiable under the Act and shall make an order in writing.certifiable under the Act and shall make an order in writing.

� The Certifying Officer shall there upon certify the draft standing

orders and shall send within 7 days copies of the certified

standing orders to the employer and to the trade union or

representative of the workmen. (Section 5)

• Appeal:

� Any employer, workman, trade union aggrieved by theorder of the certifying officer, may within 30 days appeal to the appellate authority, whose decision shall be final. (Section 6)

� The appellate authority shall within 7 days of its order send copies to the certifying officer, to the employer and to the trade union copies of the standing orders as to the trade union copies of the standing orders as certified by it and authenticated in the prescribed manner. (Section 6)

� The appellate authority has no power to set aside the order of the Certifying Officer. It can confirm or amend the Standing Orders.

• Date of Operation of Standing Orders:

• Standing orders, will unless an appeal is

preferred, come into operation on the expiry

of 30 days from the date on which the

authenticated copies of the same are sent or

where appeal is preferred, on the expiry of 7 where appeal is preferred, on the expiry of 7

days from the date on which copies of order

of the appellate authority are sent (Section 7)

• Register of S.O:

� A copy of all standing orders as finally certified under this Act shall be filed by the Certifying Officer in a register in the prescribed form( form 3)

� It shall furnish a copy of it to any person on payment of the prescribed fees. [Section 8]

• Pasting of S.O

� The text of the standing orders finally certified shall be prominently pasted by the employer in English and in language understood by the majority of the workmen

• on special board to be maintained for that purpose

• at or near the entrance through which the majority of workmen enter the industrial establishment (Section 9)

� When the Standing Orders be Modified

•Under Section 10 (1) Standing orders finally certified

under this Act shall not be modified until the expiry

of six months from the date on which the standing

order or the last modifications thereof come into

operation, unless the agreement provide otherwise.

� Who may apply for modification

•An employer or workmen may apply to the Certifying

Officer to have the standing orders modified. Such

application must be accompanied by five copies of

the modification proposed to be made.

Payment of Subsistence Allowance

(Section 10-A)

� Where the employer suspend the workman pending investigation or• inquiry into complaint or charges of misconduct against the

workman the subsistence allowance shall be payable:

� At the rate of 50% of the wages which the workman was entitled to immediately preceding the date of such suspension for the first 90 days of suspension; anddays of suspension; and

� At the rate of 75% of such wages for the remaining period of suspension if the delay in completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman.

� If any dispute arises regarding the subsistence allowance payable to a workman, it may be referred to the Labour Court constituted under I.D. Act, 1947.

� Every certifying officer shall have all the powers of a Civil Court (section 11)

1. receiving evidence

2. administering oaths

3. enforcing the attendance of witness

4. Compelling the discovery and production of

documents it shall be deemed to be a Civil Courtdocuments it shall be deemed to be a Civil Court

• Section 12. Oral evidence in contradiction of Standing order

• Section12 A Temporary application of Model S.O

• Penalties & Procedure (Section 13):

� An employer who fails to submit draft standing orders

• shall be punishable with fine which may extend to 5000 rupees and in

case of a continuing offence with a further fine which may extend to

200 rupees for every day after the first, during which the offence

continues.

� An employer, who does any act in contravention of the standing

orders finally certified under this Act for his industrialorders finally certified under this Act for his industrial

establishment

• shall be punishable with fine which may extend to 100 rupees, in case

of continuing offence with a further fine which may extend to 25

rupees for every day after the first, during which the offence

continues.

Power to make Rules (Section 15)

• Section 15(1) of the Act empowers the appropriate Government to makerules to carry out the purposes of this Act after previous publication byNotification in the Official Gazette.

a) prescribe additional matters to be included in the Schedule, and the

procedure to be followed in modifying standing orders certified under

this Act in accordance with any such addition;

b) set out model standing orders for the purposes of this Act;b) set out model standing orders for the purposes of this Act;

c) prescribe the procedure of Certifying Officers and appellate authorities;

d) prescribe the fee which may be changed for copies of standing orders entered in the register of standing orders;

e) provide for any other matter, which is to be or may be prescribed.

Power to Exempt & Delegation of Power (section 14)

• The appropriate Government may by

notification in the Official Gazette exempt,

conditionally or unconditionally, any industrial

establishment or class of industrial establishment or class of industrial

establishments from all or any of the

provisions of this Act.

Model Standing Order (Schedule)/Matters to be

covered in S.O

2.3 The Contract Labour (Regulation and

Abolition) Act 1970 Section# 2 and all

provisions under Chapter III,IV,V,VI,and VII

• Came in existence 5th sept 170• Came in existence 5th sept 170

• Applicable to whole India including J& k

Sec2

Sec2: Worker

Principle employer

Sec 2 Note :Once applicable shall remain applicable ,if app.gov

wants

Through NIOG- notification in official gazette ,app govt ban or

make it applicable though worker below 20 at both parties.

Casual labour- those who perform on daily basis

Contractor

SEC 3 & 4 Advisory boards:

Chap III: Registration of establishment

Chap IV: Licensing of contractors

CHAP V: WELFARE AND HEALTH OF CONTRACT LABOUR

Note: if regular worker more than 250 & if contract labor more

than 100 est. need to arrange canteen

21. Responsibility for payment of wagesNote: raise complaint toward factory inspector, who’s name is

mentioned on notice board at est.

Cases: based on abolition of contract labour

CHAPTER VI: PENALTIES AND PROCEDURE

CHAPTER VII :MISCELLANEOUS Sec 29: labour exemption act 1988 applicable where 40 or less than 40

labours exist. (Do not need to maintain register or file return)

Sec 29: labour exemption act 1988 applicable where 40 or less

than 40 labours exist. (Do not need to maintain register or file

return)

case based on Sec 29 case 1: contract labour 25 ( sec 29 cover ) & regular 10 =total 35

Ans: so exemption act 188 applicable, because count is below 40Ans: so exemption act 188 applicable, because count is below 40

case2: 60labour=15 CL+45 Regular so it it require to maintain register under

sec 2

Ans: No because CL 15 means contarct labour act is not applicable

Sec 28: Inspector

Rules: Rule came in existence next year of act i.e

contract labour rule in 1971

Unit no.3 Trade Union Act 1926 :

• Section # 2,Chapter II,III and chapter V,

• The Maharashtra Recognition of Trade Unions and

prevention of unfair labour practices Act 71, Section#

3 and the 3 and the

• provisions under chapter II, III, IV, V, VI, VII, VIII, X

Introduction

• Applicable whole of India including J&K

• Came in existence: 25 march 1926

• It is 16th enactment of the year

Once TU do registration it will be considered a separate legal entity.

Fund will come through members contribution

Definitions

Mode of registration

How to apply? & statements

rules

Rescinded: TU itself break rules

Ceases to exist: e.g business group or affiliated TU vanish due

to any reason so register will cancel registration

Sec .28 Time of submission of document will be decided by registrar . This right given by govt

to registrar ,cuz Size of TU varies .It will be mentioned on certificate. Alteration copy need to

send twice in the year. Once any rule altered so within 15 days of alteration and at the end of

year with all documents.

• Maharashtra Recognition of Trade Unions and

prevention of unfair labour practices Act 71,

Section# 3 and the

• provisions under chapter II, III, IV, V, VI, VII,

VIII, XVIII, X

Maharashtra Recognition of Trade Union and Prevention of

Unfair Labour Practices Act 1971

• CHAPTER VI. Unfair-Labour Practices.

• 28. (1) Where any person has engaged in or is engaging in any unfair for

dealing labour practice, then any union or any employee or any employer

or any Investigating Officer may, within ninety days of the occurrence of

such relating to labour practice, file a complaint before the Court

competent to unfair labour deal with such complaint either under section competent to unfair labour deal with such complaint either under section

5, or as e case may be, practices, under section 7, of this Act:

• Provided that, the Court may entertain a complaint after the period of

ninety days from the date of the alleged occurrence, if good and sufficient

reasons are shown by the complainant for the late filing of the complaint.

• (2) The Court shall take a decision on every such complaint as far as

possible within a period of six months from the date of receipt of the

complaint

• (3) On receipt of a complaint under sub-section (1), the Court may, if it so considers necessary, first cause an investigation into the said complaint to be made by the Investigating Officer, and direct that a report in the matter may be submitted by him to the Court, within the period specified in the direction.

• (4) While investigating into any such complaint, the Investigating Officer may visit the undertaking, where the practice alleged is said to have occurred, and make such enquiries as he considers necessary. He may also make efforts to promote settlement of the complaint

• (5) The Investigating Officer shall, after investigating into the complaint under sub-section (4) submit his report to the Court, within the time specified by it, setting out the full facts and circumstances of the case, and the efforts made by him in settling the complaint. The Court shall, on demand and on payment of such fee as may be prescribed by rules, supply a copy of the report to the complainant and the person complained against.

• (6) If, on receipt of the report of the Investigating Officer, the Court finds

that the complaint has not been settled satisfactorily, and that facts and

circumstances of the case require, that the matter should be further

considered by it, the Court shall proceed to consider it, and give its

decision.

• (7) The decision of the Court, which shall be in writing, shall be in the

form of an order. The order of the Court shall be final and shall not be

called in question in any civil or criminal court

• (8)The Court shall cause its order to be published in such manner as

prescribed. the date specified in the order.

• (9) The court shall forward a copy of its order to the state government and

such officers of the state government as may be prescribed.

• An order of the Court shall be binding on—

• (a) all parties to the complaint;

• (b) all parties who were summoned to appear as parties to the complaint,

whether they appear or not, unless the Court is of opinion that they were

improperly made parties ;

• (c) in the case of an employer who is a party to the complaint before such

Court in respect of the undertaking to which the complaint relates, his

heirs, successors or assigns in respect of the undertaking to which the

complaint relates ; and complaint relates ; and

• (d) where the party referred to in clause (a) or clause

• (b) is composed of employees, all persons, who on the date of the

complaint, are employed in the undertaking to which the complaint

relates and all persons who may be subsequently employed in the

undertaking.

Authorities and punishments under the act

Authorities under this act

(1) The State Government shall by notification in the Official Gazette,

constitute an Industrial Court.

(2) The Industrial Court shall consist of not less than three members, one of

whom shall be the President.

(3) Every member of the Industrial Court shall be a person who is not (3) Every member of the Industrial Court shall be a person who is not

connected with the complaint referred to that Court, or with any industry

directly affected by such complaint:

(4) Every member of the Industrial Court shall be a person who is or has

been a judge of a High Court or is eligible for being appointed a Judge of

such Court:

• 5. It shall be the duty of the Industrial Court—

(а) to decide an application by a union for grant of recognition to it;

(b) to decide an application by a union for grant of recognition to it in

place of a union which has already been recognized under this Act;

(c) to decide an application from another union or an employer for

withdrawal or cancellation of the recognition of a union

(d) to decide complaints relating to unfair labour practices except

unfair labour practices falling in item 1 of Schedule IV;

(e) to assign work, and to give directions, to the Investigating Officers

in matters of verification of membership of unions, and

investigation of complaints relating to unfair labour practices ;

(f ) to decide references made to it on any point of law either by any

civil or criminal court; and (g) to decide appeals under section 42

6. The State Government shall, by notification in the Official Gazette,

constitute one or more Labour Courts, having jurisdiction in such

local areas, as may be specified in such notification, and shall

appoint persons having the prescribed qualifications to preside over

such Courts :

7. It shall be the duty of the Labour Court to decide complaints relating

to unfair labour practices described in item 1 of Schedule IV and to

try offences punishable under this Act.

8. The State Government may, by notification in the Official Gazette, 8. The State Government may, by notification in the Official Gazette,

appoint such number of Investigating Officers for any area as it may

consider necessary , to assist the Industrial Court and Labour Courts

in the discharge of their duties.

9. (I) The Investigating Officer shall be under the control of the

Industrial Court, and shall exercise powers and perform duties

imposed on him by the Industrial Court.

(2) It shall be the duty of an Investigating Officer to assist the Industrial

Court in matters of verification of membership of unions, and assist

the Industrial and Labour Courts for investigating into complaints

relating to unfair labour practices.

(3) It shall also be the duty of an Investigating Officer to report to the

Industrial Court, or as the case may be, the Labour Court the Industrial Court, or as the case may be, the Labour Court the

existence of any unfair labour practices in any industry or

undertaking, and the name and address of the persons said to be

engaged in unfair labour practices and any other information which

the Investigating Officer may deem fit to report to the Industrial

Court, or as the case may be, the Labour Court.

Unit no.4 Employee Relations Initiatives

• 4.1 Worker’s Participation in Management,

Concept, evolution, implementation,

Challenges.

• 4.2 Collective Bargaining, Concept, evolution • 4.2 Collective Bargaining, Concept, evolution

and implementation. Study of best practices in

IR

Workers Participation OF Management

Introduction:

• The word ‘participation’ means sharing the decision• The word ‘participation’ means sharing the decision

making power with the lower ranks of the organization in

an appropriate manner.

• Participation makes them more responsible.

Definition:

1) “the participation resulting from practices which

increase the scope for employees share of influence in

decision making at different tries of organizational

hierarchy with related assumption of responsibility”.

- International Institute for Labour Studies

2) “ It is a mental & emotional involvement of a person in a

group situation which encourages him to contribute to

goals & share responsibilities in them”.

- Davis

Evolution of WPM:

• First major step in the direction of wpm in india

was the enactment of the ID Act, 1947.

• Industrial policy resolution 1948 advocated

wpm by suggesting that labour should be in all

matters concerning industrial production.

Objectives:

- for increasing the efficiency of enterprise & establishing

harmonious IR

- Achieving industrial peace & harmony which leads to

higher productivity & increased production

- Developing self management & promoting industrial

democracydemocracy

- Improve quality of working life by allowing the workers

greater influence

- developing social education for promoting unity among

worker & for tapping human talent

Forms of WPM:

Forms of WPM vary from industry to industry & from country

to country.

- Work committee

- Joint mgmt councils- Joint mgmt councils

- Joint & Shop councils

- Unit councils

Challenges in WPM:

1)Conflict of Interest

2)Multiplicity of Trade Unions

3)Lack of Specific Arrangements for Sharing the Gains

4) Lack of Education and Training

5) Unwillingness to participate5) Unwillingness to participate

Collective Bargaining

Collective Bargaining:

Concept:

• Collective bargaining is process of joint decision

making and basically represents a democratic way of life

in industry.

• It is the process of negotiation between firm’s and

workers’ representatives for the purpose of establishing

mutually agreeable conditions of employment.

Definitions:

1) Sydney and Beatrice Webb :

“Collective bargaining is a method by which trade unions

protected and improved the conditions of their members’

working lives.”

2) International Labour Organization :2) International Labour Organization :

“Negotiations about working conditions and terms of

employment between an employer and a group of

employees or one or more employees”

Objectives:

1) To settle dispute relating to wages & working

conditions

2) To protect interest of worker through collective

action

3) Resolve difference between worker and

management through voluntary negotiationmanagement through voluntary negotiation

4) Avoid third party intervention

Essential conditions:

• The five conditions necessary for effective

collective bargaining are as follows:

1. Favorable Political and Social Climate

2. Trade Unions 2. Trade Unions

3. Problem Solving Attitude

4. Availability of Data

5. Continuous Dialogue.

Importance:• 1. From Workers and Trade Union Point of View:

• (i) Trade Unions are the bargaining agents for the workers. Their main function is to protect the economic and non-economic interests of the workers through constructive programmes.

• (ii) Trade Unions may negotiate with the employer for better employment opportunities.

• (iii) It may provide a feeling of job-security to the workers • (iii) It may provide a feeling of job-security to the workers through collective-bargaining.

• (iv) It may compel the management not to indulge in the practices of victimization and exploitation.

• (v) It may also satisfy the ego of the workers by introducing schemes of worker’s participation in management.

• (vi)It may develop a feeling of co-operation and co-ordination among the workers and between employer and employees.

• 2. From Management Point of View:

• (i) Through collective bargaining the management has to ensure that there is maximum utilization of worker for an efficient management growth and prosperity.

• (ii) Collective bargaining is the only way to improve industrial relations and to have cordial atmosphere.

• (iii) It may reduce the presence of strikes and go-slow tactics which is going to adversely affect the productivity tactics which is going to adversely affect the productivity and profitability of the enterprise.

• (iv) Collective bargaining opens up the channels of communication between the top, middle and operative levels of the organization which may be difficult otherwise.

• 3. From Government Point of View:

• (i) Collective bargaining prevents the government from using the force because an amicable agreement can be reached between employers and employees for implementing the legislative provisions.

• (ii) In fact collective bargaining is a peaceful settlement of any dispute between workers and employers and therefore it promotes industrial peace and higher productivity.productivity.

• (iii) If there is a strong system of collective bargaining, government can easily implement different labour laws and employer will have to give all those facilities to the employee for which he is entitled for.

• (iv) Labour problem shall be minimized through collective bargaining and industrial peace shall be promoted in the country without any force.

Unit no.5 Trends in Employment Relations :

5.1 Strategic Employee Relations – Emerging Trends

5.2 Cultural Aspects of Employee Relations 5.2 Cultural Aspects of Employee Relations

5.1 Strategic Employee Relations – Emerging Trends

• Objectives

• After going through this unit, you should be able to understand:

• l the new perspectives of 1990s and implications of post-modernism forpost-modernism for

• employment relations;

• l the management of new IR and the compatibility of HRM and new

• IR strategies; and

• l the implications of latest developments in HRM for industrial relations issues

• Strategy’ can be defined as the “framework which guides

those choices that determine the nature and direction of an

organization”;

• Strategic management can be defined as “leading the process

of formulating and implementing strategies to achieve long-

term organisational success.”

The two important strategies, which the business organisations

generally opt for, are:

(a) Differentiation

(b) cost leadership

(a) differentiation, i.e., seeking competitive advantage through

uniqueness of product or service, and (b) cost leadership, i.e.,

seeking to achieve lower costs than competitors by improving

overall efficiency of operations.

(b) cost leadership, i.e., seeking to achieve lower costs than

competitors by improving overall efficiency of operations. Both

these generic strategies have implications for human resource

management of which ‘employee relations’ is an integral part.management of which ‘employee relations’ is an integral part.

This approach to employees as assets has vital implications for the

strategic human resource management, which can be defined as

“the process of developing a consistent, aligned set of policies and

practices, which facilitate the realization of organisation’s strategic

objectives.”

• NEW PERSPECTIVES OF 1990s:

There has been a significant change in the industrial relations

management during the 1990s, which can be studied with

reference to the three major perspectives, which dominated

the scene:

• i) Liberal individualism and neo-laissez faire

• ii) Human resource management

• iii) Modernism vs. Post-Modernism• iii) Modernism vs. Post-Modernism

• INDUSTRIAL RELATIONS STRATEGY:

The existence of such strategies is based on the following

assumptions:

• Corporate management determines overall strategies to

achieve the organisational goals;

• Strategic thinking is a prerequisite for organisational success;

• Top management have some choice in the matter;Top management have some choice in the matter;

• The choice of industrial relations strategies and policies

rationally implies that they be limited to other objectives and

policies; and

• There should be a direct relationship between industrial

relations strategies and business strategy;

• What is new Industrial Relations?

New industrial relations represents three ideologicalimages propagated by the contemporary state:

• first, the promotion of the managerial prerogative,employee compliance and a low strike level;

• secondly, a rejection of collective bargaining and tradeunion recognition as public policy and theirreplacement with managerially determined regulationreplacement with managerially determined regulationand individualism in the employment relationship;

• thirdly, a prescription for management of labour to usestrategies centered on flexibility andextra-contractualcommitment through human resource management.

5.2 Cultural Aspects of Employee Relations

• Culture can be broadly defined as a system of shared beliefs, values,

customs, behaviours and material objects that the members of a

society use to cope with their world and with one another.

• In short, culture includes almost any form of behaviour that is

learned rather than inherited.

• The beliefs, perceptions and convictions of the people living in

eastern hemisphere are quite different from their westerneastern hemisphere are quite different from their western

counterparts.

• These beliefs and perceptions in turn influence their attitudes

towards life, work, people, and affect their social behaviours in

several ways.

• Within each of these two broad classifications lie different cultures,

which may be specific to the national, social or even religious

contexts.

• TECHNOLOGICAL REVOLUTION:

Labour is increasingly devoted to the management and

maintenance of machinery rather than to the products

themselves. The whole field of robotics is a case in point.

Specialists in programming and maintaining industrial robots

are now key personnel in heavy, light and service industries.

The Information Technology revolution has witnessed the

replacement of the traditional ‘skill’ workers by ‘knowledge’replacement of the traditional ‘skill’ workers by ‘knowledge’

workers. Technological advancement has transformed our

idea of work. There has been an unprecedented growth of

service sector as compared to manufacturing sector all over

the world.

• Globalisation has brought about a sea change in the cross-

cultural interactions on a scale unprecedented in the history.

The economic forces of international market system have

broken down the geographical barriers. Products are

manufactured on one continent from the raw materials of

another and sold on still another. The decisions made by Iowa

wheat farmers in the United States affect the price of bread in

India; the cost of oil in the Persian Gulf helps determine the

cost of corn in the United States. In essence, the world’s

India; the cost of oil in the Persian Gulf helps determine the

cost of corn in the United States. In essence, the world’s

people are coming to live and produce under increasingly

similar economic conditions

• RECENT DEVELOPMENTS IN EMPLOYMENT RELATIONS:

• Employees and trade unions have come to realize that their

own survival in an organizational context is closely

intertwined with that of the organization.

• This has resulted in a major departure in terms of union

attitudes and approaches towards production, productivity,

quality, customer-orientation, etc.

• Today’s unions and employees are less militant and less non-• Today’s unions and employees are less militant and less non-

cooperative than their counterparts of 1960’s and 1970’s.

• Bipartism refers to the initiatives taken by the employer and

the union to resolve disputes mutually across the table in a

spirit of give and take.

• Tripartism or third-party intervention refers to either

settlement of disputes with the help of a mediator

(conciliation) or through the medium of a judicial or quasi-

judicial authority (adjudication).

• The advent of Human Resource Management with its focus on • The advent of Human Resource Management with its focus on

soft skills, individualism, non-unionism and performance

management is yet another factor which has been impacting

industrial relations in its traditional sense.