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Subject Code : 14MBA HR301 IA Marks : 50 No. of Lecture Hours / Week : 04 Exam Hours : 03 Total Number of Lecture Hours : 56 Exam Marks : 100 Practical Component : 01 Hour / Week
PART A INDUSTRIAL RELATIONS
MODULE – I (8 hours)
Introduction:
Background of Industrial Relations – Definition, scope, objectives, factors affecting IR, participants of IR, importance of IR. Approaches to Industrial relations, system of IR in India. – Historical perspective & post-independence period, Code of Discipline and historical initiatives for harmonious IR, Government policies relating to labor, ILO and its influence on Legal enactments in India.
MODULE – II (8 Hours)
Collective Bargaining & Negotiation:
Collective Bargaining: Definition, Meaning, Nature, essential conditions for the success of collective bargaining, functions of collective bargaining, importance of Collective Bargaining, collective bargaining process, prerequisites for collective bargaining, implementation and administration of agreements.
Negotiations-Types of Negotiations-Problem solving attitude, Techniques of negotiation, negotiation process, essential skills for negotiation, Workers Participation in Management
MODULE - III (8 Hours)
Trade Union
Trade Unions: Meaning, trade union movement in India, The role of the Trade Unions in Modern Industrial Society of India, functions of trade unions, objectives of important trade unions, The Trade Union Act, 1926, procedure for registration of Trade Union, Grounds for the withdrawal and cancellation of registration, union structure, Rights and responsibilities, Penalties for offences of trade unions, Difference between a registered and a recognised. Trade Union, problems of trade unions, future trends of trade union movement in India.
MODULE – IV (8 Hours)
Grievance procedure and Discipline management:
Grievance - Meaning and forms, sources of grievance, approaches to grievance machinery, Grievance procedures, and model grievance procedure.
Discipline - Causes of Indiscipline - Maintenance of discipline. Principles of Natural Justice, Judicial approach to discipline, Domestic enquiries, Disciplinary procedures, approaches to manage discipline in Industry, Principles of Hot stove rule.
MODULE – V (8 Hours)
Industrial Conflicts:
Industrial conflict – perspectives, Nature of conflicts and its manifestations causes and types of Industrial conflicts, prevention of Industrial conflicts, industrial disputes act of 1947, settlement Machinery of Industrial disputes.
Paradigm shift from industrial relations to employee relations – shift in focus, difference, employee relations management at work, culture and employee relations, future of employee relations.
PART B MODULE – VI INDUSTRIAL LEGISLATIONS (16 hours) Factories Act 1948 Industrial Employment (Standing orders) Act, 1946 Employees‘ State Insurance (ESI) Act, 1948, Maternity benefit Act, 1961 Contract Labour Act Shops & Establishment Act Child Labour (Prohibition & Regulation) Act 1986 MODULE – VII (8 Hours) Minimum Wages Act, 1948 Payment of Wages Act, 1936 Payment of Gratuity Act, 1972
TABLE OF CONTENTS
MODULE
NO
CONTENT PAGE
NO
I Introduction 5 – 28
II Collective Bargaining & Negotiation 29 – 53
III Trade Union 54 – 87
IV Grievance procedure and Discipline management^88 – 94
V Industrial Conflicts^95 – 102
VI
- Factories Act 1948,
- Industrial Employment (Standing orders) Act, 1946
- Employees‘ State Insurance (ESI) Act, 1948,
- Maternity benefit Act, 1961
- Contract Labor Act
- Shop & Establishment Act
- Child Labor act(Prohibition & Regulation)Act 1986
VII
- Minimum Wages act 1948
- Payment of Wages act 1936
- Payment of Gratuity Act 1972,
- Employees‘ Provident Fund and Miscellaneous Provisions Act 1952;
- Payment of Bonus Act, 1965.
- Employee Compensation act 2013
INDUSTRIAL RELATIONS
MODULE 1: (8 hours)
Introduction:
Background of Industrial Relations – Definition, scope, objectives, factors affecting IR, participants of IR, importance of IR. Approaches to Industrial relations, system of IR in India. – Historical perspective & post-independence period, Code of Discipline and historical initiatives for harmonious IR, Government policies relating to labor, ILO and its influence on Legal enactments in India.
Background of Industrial Relations – Definition
Concept of Industrial Relations
The term ‗Industrial Relations‘ comprises of two terms: ‗Industry‘ and ‗Relations‘. ―Industry‖ refers to ―any productive activity in which an individual (or a group of individuals) is (are) engaged‖. By ―relations‖ we mean ―the relationships that exist within the industry between the employer and his workmen.‖ The term industrial relations explain the relationship between employees and management which stem directly or indirectly from union-employer relationship.
Definitions Used to Analyse Industrial Relations-Approaches Used to Define Industrial Relations
(1) Institutional-based definitions:
Industrial relations are the sum of institutions and institutional processes that establish and administer the rules regulating workplace relations
(2) Social Psychology-based definitions:
Industrial relations are the sum of social psychological interactions between individuals
(3) Class-based definitions:
Industrial relations are the sum of institutions, interactions and processes that are a product of wider social and economic influences, in particular the class divisions of contemporary capitalism.Definitions that seek to include all matters contained in the first three definitions within other terms:
- Demographic,
- Technological,
- Occupational,
- Political and legal variables.” Characteristics of Industrial Relations (IR)
Industrial relations are outcome of employment relationship in an industry IR develops the skills of co-operation with each other IR creates rules to maintain harmonious relation Government is involved in forming the rules , laws, awards etc Employers , employees and government are responsible for IR
Peculiar Features of Industrial Work
Industry is the association of large number of workers, supervisors, managerial, personnel, consultants and other stake holders. This association brings group relationship which affects social, economic, political and cultural life of the community Large scale industrialization requires diversified skilled human resource, Blue collar, White collar and Gold collar workers Industrial workers are interdependent Centralization of power and authority, workers feel loss of freedom because of rules and regulation Jobs are highly insecure because of technology change, downsizing Wage/salary is the main attraction factor
LINK BETWEEN HRM AND IR
HR
Only two parties-employee and employer Formulates and implements HR policies Reformulates policies based on industrial conflicts Individual employee can contact superior
IR
Four parties-employer, employee, trade union, government HR policies implementation results in IR Sound IR contributes in goals, unsound IR results in conflicts Employees can contact superiors in group
Need for Industrial Relations
To solve problems/conflicts To secure cooperation and goodwill among workers and management To drive energy and interest towards economical, feasible, profitable and socially desirable channels To aim at mutual dependence, confidence and respect to remove misunderstandings
Scope of IR
1. Labour relations, i.e., relations between labour union and management.
- Employer-employee relations i.e. relations between management and employees.
HRM POLICIES
AND
EMPLOYER AND
EMPLOYEE
RESULTS IN
INDUSTRIAL RELATION
CONFLICT IN
RELATION
COLLECTIVE
BARGAINING
REFORMULATION OF
HR POLICIES,
Eg: Reservation policy, VAT
SOCIAL AND CULTURAL FACTORS
Population, religion customs and traditions of people, various cultures and religions, joint family, women in labor etc
POLITICAL FACTORS
Political parties and their ideologies, their growth, mode of policies, involvement in trade unions etc Eg: Economic Reforms, LPG effect, entry of MNC‘S
INSTITUTIONAL FACTORS
Governmental policies, labor legislations, collective agreement, employees court, employers federations, attitude of workers , system of power status etc
Participants of IR
THREE ACTORS OF INDUSTRIAL RELATIONS
Workers and their organizations (trade union) Employers and their organisation Government
Importance of IR.
- Foster Industrial Peace:
Under the mechanism of IR, both employees and managers discuss the matter and consult each other before initiating any actions. Doubts, if any, in the minds of either party are removed. Thus, unilateral actions that prop confusion and misunderstanding disappear from the scene. In this way, IR helps create a peaceful environment in the organisation. Peace, in turn, breeds prosperity.
- Promote Industrial Democracy:
Industrial democracy means the government mandated worker participation at various levels of the organisation with regard to decisions that affect workers. It is mainly the joint consultations
that pave the way for industrial democracy and cement relationship between workers and management. This benefits the both. The motivated workers give their best and maximum to the organisation, on the one hand, and share their share of the fruits of organisational progress jointly with management, on the other.
- Benefit to Workers:
IR benefits workers in several ways. For example, it protects workers against unethical practices on the part of management to exploit workers by putting them under inhuman working conditions and niggardly wages. It also provides a procedure to resolve workers‘ grievances relating to work.
- Benefit to Management:
IR protects the rights of managers too. As and when workers create the problem of indiscipline, IR provides mangers with a system to handle with employee indiscipline in the organisation.
- Improve Productivity:
Experiences indicate that good industrial relations serve as the key for increased productivity in industrial organisations. Eicher Tractors, Alwar represents one such case. In this plant, productivity went up from 32 per cent to 38 per cent between 1994 and 1997. This increase is attributed to the peaceful IR in the plant.
Approaches to Industrial relations
Psychological Approach
IR have origin in the differences in the perceptions of management Differences in perceptions due to difference in personalities, attitudes Motivation, leadership, group goals versus individual goals are responsible for industrial conflicts
Sociological Approach
Industry is a social world in miniature Organizations are communities of individuals and groups with different personalities, educational and family backgrounds, emotions etc
- create conflict where none would otherwise exist Assumptions about collective bargaining
- creates and institutionalizes unnecessary divisions of interest
- serves to generate workplace conflict rather than resolve it
The unitary perspective is based on the assumptions that the organization is, or if it is not, then it should be, an integrated group of people with a single authority / loyalty structure and a set of common values, interests and objectives shared by all members of the organization.
According to Farnham and Pimlott put it, ―there is no conflict between the interests of those supplying capital to the enterprises and their managerial representatives, and those contributing their aims of productions, profits and pay in which everyone in the organisation has a stake.‖
This has two important implications:
Conflict (i.e. the expression of employee dissatisfaction and differences with management) is perceived as an irrational activity. Trade Unions are regarded as intrusions into the organization from outside which compete with management for the loyalty of employees.
Pluralistic Perspective
Pluralist
Assumptions about workplace relations
- Managers and employees have different objectives
- Multiple sources of legitimate authority Assumptions about workplace conflict
- Inevitable, caused by different opinions and values, benefit to an organisation
- avoid by accepting trade unions, include in decision-making Assumptions about the workplace role of trade unions
- Not the cause of conflict
- are expression of diverse workplace interests that always exist
- a legitimate part of workplace relations Assumptions about the role of collective bargaining
- Deals with problems on a collective basis
- Most efficient means for institutionalising employment rules
- Fairer outcomes by balancing employee and management power
This perspective is based on the assumption that the organization is composed of individuals who coalesce into a variety of distinct sectional groups, each with its own interest, objectives and leadership (either formal or informal).
According to Fox, give rise to ―complex of tensions and competing claims which have to be ‗managed‘ in the interests of maintaining a viable collaborative structure.‖
Radical Perspective
Marxist
Assumptions about workplace relations
- reflects a wider class conflict between capital and labour
- reflects coercion of working class into dominant capitalist values Assumptions about workplace conflict
- Inevitable: capital seeks to reduce costs, workers seek fairer price for labour
- will only cease by revolutionary change in distribution of property and wealth Assumptions about trade unions
- should raise revolutionary consciousness of workers
- should not limit action to improving material lot of workers
- Union leaders who accommodate management betray the workers
System of IR in India.
An industrial relations system consists of the whole gamut of relationships between employers and employees and employers which are managed by the means of conflict and cooperation.
A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.
The term industrial relations refer to the interpersonal or individual relationships, and also relations between the two groups. Industrial relations are the art of living together for purposes of production. Hence, such relationships are strengthening through the major stakeholders. In this backdrop, the said topic mainly discusses the major stakeholders of industrial relations in India.
Major Stake holders in IR:
- Employer
- Government
- Employees
- Employers‘ Associations
- Courts and tribunals
- Trade unions
EMPLOYER
EMPLOYEE RELATIONS
EMPLOYERS
ASSOCIATIONS^ EMPLOYEE
ASSOCIATIONS^ EMPLOYER
COURTS TRIBUNALS AND
GOVERNMENT
EMPLOYEES
Employees
There are about 28.1 million employees working in the organised sector and 365.1 million in the unorganized sector in our country. It is therefore, useful to make certain observations about Indian workers.
- Commitment to industry
- Protective Legislation
- Status of the Worker
- Employment Pattern Now the employees perceive industrial relation in terms of the opportunity to:
- Improve their conditions of employment,
- Voice and grievances,
- Exchange views and ideas with management, and
- Share in decision-making Trade Unions Unions have a crucial role to play in IR. Unions have broad objective which are:
- To redress the bargaining advantage of the individual worker vis-à-vis the individual employer, by substituting joint or collective action for individual action.
- To secure improved terms and conditions of employment for their members and maximum degree of security to enjoy these terms and conditions.
- To obtain improved status for the worker in his or her work, and
- To increase the extent to which unions can exercise democratic control over decisions that affect their interests by power sharing at the national, corporate and plant levels. Employers Employers too, are directly involved in any dispute between them and the employees. In general, managers tend to see employee relations in terms of the following activities
- Creating and maintaining employee motivation.
- Obtaining commitment from the workforce.
- Establishing mutually beneficial channels of communication throughout the organization.
- Achieving high levels of efficiency.
- Negotiating terms and conditions of employment with employee representatives.
- Sharing decision making with employees.
- Engaging in a power structure with trade unions. Employers‟ Associations
Employers‘ associations, in India dates back to 1875 when the Bombay Mill Owners association was organized with the objective of protecting the commercial interests of its members and to promote good relations between them. For the development of healthy and stable industrial relations.
(iii) 1925 – 34, (iv) 1935 – 38 , and (v) 1947 and since.
The principal purpose of this section is to trace the origin and development of trade union movement in India.
Pre – 1918
The earliest sign of labour agitation in India was a movement in Bengal in 1860 led by Dinbandhu Mitra, a dramatist and social reformer of Bengal followed by some of journalists to protest against the hardship of the cultivators and also the plantation workers. 1860 – The Government has been appointed Indigo Commission. 1875 – The first Factory Commission was, therefore, appointed in 1875 and as a result the Factories Act, 1881 was enacted. The purpose of this act was, however, inadequate to meet the evil of child labour and protect the women workers. 1884 – Another Factory Commission was appointed. In the same year Mr. N. M. Lokhande organised the conference of the Bombay factory workers and drew up a memorandum signed by 5, 300 workers demanding a
- Complete day of rest on Sunday,
- Half-an-hour recess,
- Working hours between 6.30 a.m to sunset,
- The payment of wages not later than 15 th^ of the month,
- And the compensation for injuries. 1889 – in 1889, in Bombay, workers of spinning and weaving mills demanded
- Sunday as holiday,
- Regularity in the payment of wages and
- Adequate compensation in case of accident. 1890 – the stand of 1884 was also reiterated and the petition this time was signed by 17, 000 workers. The same year, the Bombay Mill Hand Association, the first labour association was organised as Mr. Lokhande as its President. Several labour associations were formed after 1890. For instance,
- The Amalgamated Society of Railway Servants in India and Burma was formed in April 1897 and registered under the Indian Companies Act,
- The Printers Union of Calcutta was formed in 1905,
- The Bombay Postal Union was formed in 1907,
- The Kamgar Hityardhak Shaba and Service League was formed in 1910. The post – 1890 period was also important for the reason that several strikes occurred during this period.
- Two strikes which occurred in Bombay in 1894.
- The first big strike of mill operatives of Ahmedabad occurred in the first week of February, 1895.
- Strikes in Jute industries in Calcutta in 1896.
- In 1897, after plague epidemic, the mill workers in Bombay went on strike for payment of daily wages instead of monthly payment of wages.
- In 1903, the employees of press and machine section of Madras Government went on strike for overtime work without payment.
- Two-years later in 1905, the workers of the Government of India Press, Calcutta launched a strike, over the question of (i) Non-payment for Sunday and gazetted holidays; (ii) Imposition of irregular fines; (iii) Low rate of overtime pay; and (iv) The refusal of authorities to grant leave on medical certificate. The strike continued for over a month. The workers returned on fulfil ent of certain demands.
- In December 1907, the workers of Eastern Railway Workshop at Samastipur went on strike on the issue of increment of wages.
Features of labour movement during the period of 1860 – 1917
First, the movement was led by the philanthropists and social reformers and not by workers.
Second, there was no trade union in the modern sense. According to the Report on the working the Factories Act at Bombay, in 1892, the Bombay Mill Hands Associations was not be classified as genuine trade union.
Third, the association mainly relied on petitions, memoranda and other constitutional means for placing their demands which were mainly confined to factory legislation, e.g.,
o Hours of work, o Health, o Wages for over stay, o Leave,
