Definition

Concepts under IR

1. Trade Unionism 1. IR is considered as a system of rules and 2. Discipline Handling regulations, which govern the relationship between the major parties i.e. employer and employees. 3. Grievance Redressal System 2. Basically it is the: (a) Relationship between the employees/union and management (b) Conducted within a legislative framework devised by Govt., institutions (c) Have implications for all incl society (d) All aspects of employment relationships. 4. Collective Bargaining 5. Machinery for Settlement of Industrial Disputes 6. Labour Laws 7. Workers Participation in Management 8. Working Conditions, Health and Safety 9. Social Security Systems

IR includes
1. Relationships between: (a) Individual workers (b) Workers - their employer (c) Employers employers (d) Employers and workers - organizations formed to promote their respective interests 2. Processes through which these relationships are expressed: (a) Unionism, (b) Disciplinary actions (c) Grievance redressal System (d) Collective bargaining, (e) Machinery for Settlement of Industrial Disputes (f) Labour Laws (g) Workers Participation in Management (h) Working Conditions, Health and Safety 3. Mgmt of conflict between (a) employers, workers and trade unions

HR and IR
HR Deals with Non Union relationship between employer and an indl employee(1-1 relationship) HRM strat and obj are based on M/V/O/G of company and implemented through policies, proc and practices. IR Set of rules and regulation which govern relationship between two main actor- Employer and Employee/union( 1- Many) The implementation of HRM policies results in IR. Sound IR contributes to the organizational goals. The unsound IR result in industrial conflicts demanding for change and reformulation of HRM obj and goals Conflicts are resolved through Collective bargaining , negotiations, conciliation, arbitration, adjudication Four main parties- Employer, employee, union and govt

Employee-employer conflicts are resolved through Grievance and disciplinary procedures HRM is the overall mgmt of all resources incl workers, staff, exe, Top mgmt, Sup & Cust

Objectives of IR System
1. Avoid industrial conflict and develop harmonious relations 2. Min industrial unrest (strike, lockout) 3. Raise productivity by reducing cost 4. Safeguard the interest of labor and mgmt 5. Establish and promote the growth of an industrial democracy

IR | Lesson 1[Type the company name]

Labour and Management: Friend or Foes?

1. They cant be friends because you cant do business with friends. 2. They cant be foes because they need each other

IR in India
1. Incremental and adaptive NOT Discontinuous and revolutionary 2. Contributed by endogenous conditionsEconomy, Politics and History 3. Exogenic conditions of Globalization hastened the process 4. Earlier stages of industrialization, employers were powerful were expl. 5. Govt. was pressurized to protect the weaker party workers 6. Bargaining system has become more decentralized and at unit level. Settlements based on productivity rather than national level agreements 7. Concession bargaining is gaining ground. (a) It is reduction of benefits to guarantee further job losses .ie biz owners are willing to agree to increased employment security if unions are willing to see wage freezes and slower benefit increases. (b) 2/3rd of all union contracts negotiated in 2005 contained concessions bargaining (c) Agreement between union and Chrysler when latter faced bankruptcy.

Approaches to study IR
1. No single strong explanatory theory (a) Dunlop (1958) Systems Theory of IR (b) Kochan et al, (1984) Strategic Choice Theory 2. Dunlop Model. Appx A 3. Kochan et al, (1984) - Strategic Choice Theory (a) Integrates strategy, structure, and decision making (b) IR activities among actors happen at 3 levels: i) ii) Top tier: Strategic decision making Middle tier: Collective Bargaining and/or Personnel policy-making

iii) Bottom tier: Workplace, individual and organizational relationships (c) IR strategies are made in response to the firms overall competitive strategies

Labor Market Situation in India

Only about 7% of the workforce is employed in organized and formal sector. Largest chunk is in Agricultural sector

Summary of IR in India
Appx C

Enactment of Labor Laws

1. Trade Unions Act 1926: Rights and responsibilities of Unions? 2. Industrial Employment (Standing orders) Act 1946: Accepted principles between management and union in general? 3. Industrial Disputes Act 1947: How to solve the disputes arising out of employment relations?

Various Perspective sof IR

Appx B

IR | Lesson 1[Type the company name]

Appendix A

1. Three key factors for conducting an analysis of the management-labor relationship: (a) Characteristics and interaction of the key actors (b) Environmental , technological, political, legal and social forces that impact relationships (c) Rules that are finally derived from these interactions that govern the employment relationship 2. Limitations (a) Unable to test a theory (b) Does not considers other environmental impacts (consumers, community) (c) Talks about roles not people and hence ignores the behavioral aspect (d) No indication if conflict is inherent in the employment relationship 3. Craig (1986) accepted that some degree of conflict is inherent in IR system and improved it by considering:(a) Grievance process (b) strikes and lockouts as conversion processes

Appx B

APPX C

Pre-independence Era

Early-independence Era Well Protected with pro-labour policy of Govt.

Pre-Liberalization Era

Post-Liberalization Era

Worker

Exploitation, poor working conditions and long working hours

Docile and dependent on Unions

Emergence of knowledge workers & massive casual and contract labour

Management

Most powerful and exploitative

Restrictions of Labour laws Forced to adopt tripartism

Preferred bipartite agreements and avoided unions

Became powerful with free trade regime but lost control over business

Union

Got recognition with Trade Union Act 1926 Still dependent on paternalistic attitude of management

Became powerful with support of govt. and legal system Militant, politicized and dependent on external leadership

Union rivalry, lack of leadership and professional growth

Lost glory with decreasing membership, lack of support from govt.

Government

Laissez-faire approach towards both labour & mgmt.

Controlling authority of IR & promoting tripartism

Shift of labour laws & policies from center to state for sectional interest

Succumbed to the forces of globalisation & unable to continue its pro-labour stance

Trade Unions
1. Formed to protect and promote the interests of their members 2. Primary function is to protect the interests of workers against discrimination and unfair labor practices

(e) To protect women workers against discriminatio (f) To achieve higher wages and better working conditions (g) To raise the status of workers as a part of industry

Importance of Trade Unions

1. For industrial peace (a) Decisions taken through the process of collective bargaining and negotiations between employer and unions are more influential (b) Effective communication between the workers and the management 2. Economic development . (a) Recruitment & selection (b) Discipline among workforce (c) Settlement of ID in rational manner

Objectives (Why are they formed)

1. To rep workers Interests 2. Negotiate (Collective Bargaining) 3. Have voice in decisions especially in Lay off, Retrenchment and things affecting workers 4. Undertake member Service (Education, Training, Welfare, Discounts, Loans)

Purpose of Trade Unions (What they ensure)

1. Employment Protection and Job Creation. 2. Economic Protection. 3. Give Social Status - Identity. 4. Play Political Role - Democratic Institution 5. Societal Obligation - Transformation. 6. Helps in Competitiveness / Sustainable Development.

Why do people join Union?

1. Sense of Security 2. Minimize Discrimination 3. Greater Bargaining Power 4. Sense of Participation 5. Sense of Belongingness 6. Platform for self expression 7. Betterment of relationships

Functions(How they Operate)

1. Militant functions, (a) To achieve higher wages and better working conditions (b) To raise the status of workers as a part of industry (c) To protect labors against victimization and injustice 2. Fraternal functions(welfare Oriented) (a) To take up welfare measures for improving the morale of workers (b) To generate self confidence among workers (c) To encourage sincerity and discipline among workers (d) To provide opportunities for promotion and growth 1 IR | Lesson 2|GK

Structure of TU
1. Plant Level Federations 2. Local level federations 3. Regional level federations 4. National level federations

Trade Union Act 1926

1. Defn (a) Any combination, whether temporary or permanent formed primarily for the purpose of regulating the relations between i) workmen and employers

ii) iii)

workmen and workmen employers and employers

2. Membership related Issues. One member can be member of other unions) 3. Discontent 4. Avenues, intra union fights 5. Political Issues. Conflict between pol and own ideology. 6. Organizational Limitations 7. Legal limitations Solution. 1. One Union for one industry 2. Recognition of one union from among number of Unions

for conduct of any trade or business 2. Salient Aspects (a) TU can be union of employers also, though, universally, associated with union of workmen. (b) Objective is for registration of Trade unions and to define certain laws regulating it. (c) Enacted for registration of TU and not for recognition as representative union.(Recog done by separate state law). (d) Mandates of 1926 TU Act. i) It covers mainly three sets of matters, namely, (1) the conditions for registration(sec 4) (2) Its obligation after after registration (3) Its Privileges (sec 15) ii) Sec 4(1) talks of Registration (not recog).-

Recognition of Trade Union

1. Recognition of Trade Union is generally a matter of agreement between employer and trade union 2. Varies from organization to organization 3. Act is silent about compulsory union (reason?). When it was instituted in 1926, there was opposition to TU acts itself and employer could not reconcile with fact of est of TU. Needless to mention, it was taken as amdt number of times. 4. In States like Maharashtra and Madhya Pradesh, there are specific legal provisions for recognition of an union 5. The Act confers the recog union the right to negotiate and bargain with employers. 6. No central legislation on recog of TU. 7. Attempts to bring rules for registration vide TU 1947 amdt . It did not fructify.. 8. Some lose Concepts to under Recog. (a) Closed shop/union shop. i) It is a form of agreement in which the employer agrees to employ person till his membership of union. This provision is not legal in many countries.

iii) TU will have regd office iv) Maint of two type of funds- Pol and Gen fund. v) Submission of Annual returns vi) Immunity to Office Bearers from legal action. vii) Rights and liabilities specified under Sec 15 (e) Membership. i) ii) Min 7 employees can start TU. 50% to be within industry.(Why?) (1) All are not literate. (2) Some specialized task like book keeping etc can be performed by outside pers. (f) Resp of State. i) ii) Appt of Registrar for registration. Suitable mechanism for recog.

ii)

Multiple Union Causes

1. Leadership related Issues 2 IR | Lesson 2|GK

(b) Member Verification

i)

Membership is verified by a state official by asking an employee if he is a member of a particular union

(a) Bombay Mill-Hands Association-1853 (b) President Mr. N.M. Lokhandey

(c) Secret Ballot. Refres to election. (d) Check Off i) This is giving permission in writing to employer to deduct membership fee from salary

Problems for Trade Union Growth

1. Off-Centering Labour . Becoming capital intensive due to technology. 2. Segmentation of Workforce. Many sectors. 3. Core / Periphery. Outsourcing 4. Employment Instability. Industrailsation not keeping pace with job reqmts 5. Investment Attraction 6. Individualization of Labour Relations 7. Labour Cost Cutting 8. Leadership Credibility/ Inside vs. Outside leadership 9. Failure of Institutions 10. Emergence of Non-union firms/ E-union/ Cyberunion

Code of Discipline.- Indian Labour Conference 1957- A Voluntary measure

1. Objective was to have good inter-union relationship 2. Every employee has the freedom and right to join TU of his choice. No coercion 3. No dual membership and No caste or craft based TU 4. May go for secret ballot or check off system 5. More than 300 employees: Go for secret ballot 6. More there are morethan one union, the conditions for recog spelt out in Code of iscp are:-. (a) Sould have at least 1 year of functioning after Registration.. (b) Largest membership. (c) Atleast have 15 % of WF (d) Any union which has more than 25% of the total workforce is automatically recognized (e) Recog is valid for for 2 years

Suggestions for Healthy Growth of TU

1. One Union Per Industry 2. Paid Union Officials 3. Development of Internal Leadership 4. Recognition of Trade Unions 5. Improved Financial condition

Major TU
1. AITUC-The All India Trade Union CongressCommunist led 2. INTUC- The Indian National Trade Union Congress Congress led 3. CITU-Centre of Indian Trade Union -Radicals . Separated from AITUC 4. Hind Mazdoor Sabha 5. The first labor association in India3 IR | Lesson 2|GK