INDUSTRIAL

RELATIONS
 INDUSTRIAL RELATIONS
• UNIT I - INDUSTRIAL RELATIONS
Industrial Relation Concept – Definition –
Significance – Objectives – Scope –
Approaches – Principles of good industrial
relations – Role of State, Employers and the
Unions in industrial relation.
 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.”
 MEANING AND DEFINITION OF
INDUSTRIAL RELATION
The relationship between Employer and employee or
trade unions is called Industrial Relation.
Harmonious relationship is necessary for both
employers and employees to safeguard the
interests of the both the parties of the production.
In order to maintain good relationship with the
employees, the main functions of every
organization should avoid any dispute with them
or settle it as early as possible so as to ensure
industrial peace and higher Productivity.
 Definitions:
• Industrial Relation is that part of management
which is concerned with the manpower of the
enterprise – whether machine operator, skilled
worker or manager
Industrial Relation is a relation between employer
and employees ,employees and trade unions. -
Industrial dispute Act 1947
While moving from jungle of the definitions,
here, Industrial Relation is viewed as the
“process by which people and their
organizations interact at the place of work
to Establish the terms and conditions of
employment.”
 Objectives of Industrial Relation:
A. To safeguard the interest of labor and
management
B. To avoid industrial conflict or strife and
develop harmonious relations
C. To raise productivity to a higher level in an era
of full employment by lessening the tendency
to high turnover and frequency absenteeism.
D. To establish and nurse the growth of an
Industrial Democracy based on labor
partnership in the sharing of profits and of
managerial decisions, so that ban individuals
personality may grow its full stature for the
benefit of the industry and of the country as
well.
E. To eliminate, strikes, lockouts and providing reasonable
wages, improved living and working conditions, said fringe
benefits.
F. To establish government control of such plants and units as
are running at a loss or in which productions has to be
regulated in the public interest.
G. Improvements in the economic conditions of workers in the
existing state of industrial managements and political
government.
H. Control exercised by the state over industrial undertaking
with a view to regulating production and promoting
harmonious industrial relations.
I. Socializations or rationalization of industries by making the
state itself a major employer.
J. Vesting (benificiary)of a proprietary interest of the workers in
the industries in which they are employed.
 concept
• Industrial relations do not emerge in
vacuum; they are born out of
employment relationship in an industrial
settings. Without the existence of two
parties, ie labour and management, this
relationship cannot exist. It is the
industry which provides the environment
for industrial relations
• Industrial relations are characterized by
both conflict and co-operations. This is
the basis of adverse relationship. So the
focus of industrial relations is on the
study of the attitudes, relationships,
practices and procedures developed by
the contenting parties to resolve or at
least minimizes conflict
• As the labour and management do not
operate in isolation but are part of a large
system, so the study of industrial relations also
includes vital environmental issues like
technology of the workplace, country’s socio-
economic and political environment, nation’s
labour policy, attitude of trade unions.
Workers and employers and impact of the
new wave of global markets, global supply
demand and economy
• Industrial relations also involve the study of
conditions conducive to the labour,
management co-operation as well as the
practices and procedures required to elicit the
desired co-operation from both the parties.
• Industrial relations also study the laws, rules,
regulations, agreements, awards of court
customs and traditions, as well as policy
framework laid down by the government for
eliciting co-operation between labour and
management and defining rights obligation of
the parties
 Important factors
• Institutions
• Characters
• Methods
• contents
 institutions
• They include govenemnt, employers,
tradeunions, union federations, employers
federations or associations, govtnment bodies,
labour courts, tribunals and other
organisations which have direct or indirect
impact on the industrial relations system.
 characters
• It aims to study the role of workers, unions
and employers federation officials, shop
stewards, industrial relations
officers/manager,
mediator/concilators/arbitrator, judges of
labour court, tribunals, etc
 methods
• Here the focus is on collective bargaining
workers participationin the industrial relation
schemes, discipline, procedure, grievance
redressa machinery, dispute settlement
machinery, working of closed shops, union
recognition, organisation of protests through
methods like strikes, gheraos,
 CONTENTS
• They include matter pertaining to employment
conditions like pay and other monetary non
monetary demands of the workers hours of work,
leave with wages, health, and safety disciplinary
actions, layoff, dismissals, retirement etc, laws
relating to such activities, legislation governing
labour welfare, social security, industrial relations,
issues concerned with workers participation in
management, collective bargaining, sharing gains
of productivity profits.
 Importance of industrial relations
• INDUSTRIAL RELATIONS PATTERNS, ORGANISED
SECTOR AND THEIR IMPACT ON UN ORGANIZED
SECTOR
• UNIONS ARE IMPORTANT FORCE IN THE INDIAN
POLITICAL SYSTEM
• VARYING PATTERNS OF INDUSTRIAL RELATIONS
• STATUS DIFFERENCE IN THE WORKERS OF
PUBLIC AND PRIVATE SECTOR
INDUSTRIAL RELATIONS PATTERNS, ORGANISED SECTOR AND THEIR IMPACT ON UN ORGANIZED SECTOR

• The pattern of industrial relations in the organized

sector of econmy has a definite impact on labour
management relations in the unorganized sector.
The trends and pattern established in the
organised sector spills over or influences the
practices of even the most unorganized industries.
This happens because there is always pressure
from a variety of groups on unorganized firm to
match its employment and working conditions,
benefits etc,with that of organized one.
 UNIONS ARE IMPORTANT FORCE IN THE INDIAN POLITICAL SYSTEM

• The impact of indian trade union on the political

system is much wider than on industry. The indian
trade unions some of which are a fall out of the
political system are invariable used by both the
ruling and opposition parties for electioneering
purpose. In addition, the unions sponsored by the
ruling party do influence the legislative process
through their intense lobbing activities. The
representatives of all the national unions are
consulted by the government in formulating various
socio economic policies. This in turn influences the
system of industrial relations in variety of ways.
 VARYING PATTERNS OF INDUSTRIAL RELATIONS

• In india, the patterns of industrial relations are

not only in sharp contrast both in unorganised
and organised sector, but also within the latter,
they exhibit a considerable variation. In the
unorganized sector due to non-unionisation of
the workers, the grievances are usually redressed
by the threat of dismissal or literal beating – thus
the problem of industrial relations, however,
acute is not allowed to surface.
STATUS DIFFERENCE IN THE WORKERS OF PUBLIC AND PRIVATE SECTOR

• In india, with the adoption of socialistic pattern of

society and subsequent acceptance of industrial
policy resolution of 1956, the public sector was
entrusted with the responsibility to accelerate the
economic development of the country. As such
basic and heavy industries were allowed to
concentrate in this sector and the private sector
was not given an opportunity to come up as there
were a host of constrants in its growth and
development.
 significance of Industrial Relations:

• Uninterrupted production
• Reduction in Industrial Disputes
• High morale
• Mental Revolution
• Reduced Wastage
 Uninterrupted production
• The most important benefit of industrial relations is
that this ensures continuity of production. This
means, continuous employment for all from manager
to workers. The resources are fully utilized, resulting
in the maximum possible production. There is
uninterrupted flow of income for all. Smooth running
of an industry is of vital importance for several other
industries; to other industries if the products are
intermediaries or inputs; to exporters if these are
export goods; to consumers and workers, if these are
goods of mass consumption.
 Reduction in Industrial Disputes
• Good industrial relations reduce the industrial
disputes. Disputes are reflections of the failure
of basic human urges or motivations to secure
adequate satisfaction or expression which are
fully cured by good industrial relations. Strikes,
lockouts, go-slow tactics, gherao and
grievances are some of the reflections of
industrial unrest which do not spring up in an
atmosphere of industrial peace. It helps
promoting co-operation and increasing
 High morale
• Good industrial relations improve the morale of the
employees. Employees work with great zeal with the
feeling in mind that the interest of employer and
employees is one and the same, i.e. to increase
production. Every worker feels that he is a co-owner of
the gains of industry. The employer in his turn must
realize that the gains of industry are not for him along but
they should be shared equally and generously with his
workers. In other words, complete unity of thought and
action is the main achievement of industrial peace. It
increases the place of workers in the society and their ego
is satisfied. It naturally affects production because mighty
 Mental Revolution
• – The main object of industrial relation is a complete mental
revolution of workers and employees. The industrial peace
lies ultimately in a transformed outlook on the part of both.
It is the business of leadership in the ranks of workers,
employees and Government to work out a new relationship
in consonance with a spirit of true democracy. Both should
think themselves as partners of the industry and the role of
workers in such a partnership should be recognized. On the
other hand, workers must recognize employer’s authority. It
will naturally have impact on production because they
recognize the interest of each other.
 The main aspects of Industrial Relations
are:-
i. Labor Relations, i.e. relations between union and
management
ii. Employer-employees relations, i.e. relations between
management and employees
iii. Group relations, i.e. relations between various groups of
workmen
iv. Community or Public relations, i.e. relations between
industry and society.
v. Promotions and development of healthy labor-managements
relations.
vi. Maintenance of industrial peace and avoidance of industrial
strife
vii. Development of true industrial Democracy
 DIFFERENCE BETWEEN INDUSTRIAL RELATIONS
AND HUMAN RELATIONS
INDUSTRIAL RELATION HUMAN RELATIONS:
Industrial relations refer to the relations Human relations refer to a personnel-
between the employees and the management policy to be adopted in
employer in an industry industrial organizations
Industrial relations cover the matters problems of human relations are
regulated by law or by collective personal in character and are related to
agreement between employees and the behavior of worker where morale and
employers social elements predominate
The problem of industrial relations is “Human Relations” is a part of it.
usually dealt with a three levels – the
level of undertaking, the industry and at
the national level
 PERSPECTIVES/APPROACHES TO
INDUSTRIAL RELATIONS
• PSYCHOLOGICAL APPROACH
• SOCIOLOGICAL APPROACH
• HUMAN RELATIONS APPROACH
• SOCIO ETHICAL APPROACH
• GANDHIAN APPROACH
• SYSTEM APPROACH
 PSYCHOLOGICAL APPROACH

• The problems of IR have their origin in the perceptions of the

management, unions and the workers. The conflicts between
labour and management occur because every group negatively
perceives the behaviour of the other i.e. even the honest
intention of the other party so looked at with suspicion. The
problem is further aggravated by various factors like the income,
level of education, communication, values, beliefs, customs, goals
of persons and groups, prestige, power, status, recognition,
security etc are host factors both economic and non-economic
which influence perceptions unions and management towards
each other. Industrial peace is a result mainly of proper attitudes
and perception of the two parties.
 Sociological approach
•

Industry is a social world in miniature. The management goals,

workers’ attitudes, perception of change in industry, are all, in turn,
decided by broad social factors like the culture of the institutions,
customs, structural changes, status-symbols, rationality, acceptance
or resistance to change, tolerance etc. Industry is, thus inseparable
from the society in which it functions. Through the main function of
an industry is economic, its social consequences are also important
such as urbanization, social mobility, housing and transport
problem in industrial areas, disintegration of family structure, stress
and strain, etc. As industries develop, a new industrial-cum-social
pattern emerges, which provides general new relationships,
institutions and behavioural pattern and new techniques of
handling human resources. These do influence the development of
industrial relations.
 Human relations approach
•

Human resources are made up of living human beings. They want freedom of
speech, of thought of expression, of
movement, etc. When
employers treat them as inanimate objects, encroach on
their expectations, throat-cuts, conflicts and tensions arise.
In fact major problems in industrial relations arise out of a
tension which is created because of the employer’s
pressures and workers’ reactions, protests and resistance
to these pressures through protective mechanisms in the
form of workers’ organization, associations and trade
unions.
• Through tension is more direct in work place; gradually
it extends to the whole industry and sometimes affects
the entire economy of the country. Therefore, the
management must realize that efforts are made to set
right the situation. Services of specialists in Behavioural
Sciences (namely, psychologists, industrial engineers,
human relations expert and personnel managers) are
used to deal with such related problems. Assistance is
also taken from economists, anthropologists,
psychiatrists, pedagogists, tec. In resolving conflicts,
understanding of human behavior – both individual and
groups – is a pre-requisite for the employers, the union
leaders and the government – more so for the
management.
• Conflicts cannot be resolved unless the management must
learn and know what the basic what the basic needs of
men are and how they can be motivated to work
effectively.

It has now been increasingly recognized that much can be

gained by the managers and the worker, if they
understand and apply the techniques of human relations
approaches to industrial relations. The workers are likely
to attain greater job satisfaction, develop greater
involvement in their work and achieve a measure of
identification of their objectives with the objectives of the
organization; the manager, on their part, would develop
greater insight and effectiveness in their work.
 The System Approach
• The system approach was developed by J. P. Dunlop of Harvard
University in 1958. According to this approach, individuals are
part of an ongoing but independent social system. The behaviour,
actions and role of the individuals are shaped by the cultures of
the society. The three elements of the system approach are input,
process and output. Society provides the cue (signal) to the
individuals about how one should act in a situation. The
institutions, the value system and other characteristics of the
society influence the process and determine the outcome or
response of the individuals. The basis of this theory is that group
cohesiveness is provided by the common ideology shaped by the
societal factors.
• According to Dunlop, the industrial relations system comprises certain actors,
certain contexts, and an ideology, which binds them together and a body of
rules created to govern the actors at the workplace and work community. The
actors in the system are the managers, the workers and their representatives,
and the government agencies. The rules in the system are classified into two
categories: substantive rules and procedural rules. The substantive rules
determine the conditions under which people are employed. Such rules are
normally derived from the implied terms and conditions of employment,
legislations, agreements, practices and managerial policies and directives. The
procedural rules govern how substantive rules are to be made and
understood. Ultimately, the introduction of new rules and regulations and
revisions of the existing rules for improving the industrial relations are the
major outputs of the industrial relations system. These may be substantive
rules as well as procedural rules." The context in the system approach refers to
the environment of the system which is normally determined by the
technological nature of the organization, the financial and other constraints
that restrict the actors of industrial relations, and the nature of power sharing
in the macro environment, namely, the society.
•
 APPROACHES TO IR (contd..)

• Socio-Ethical approach:
– IR has some ethical implication
– Creation of willingness to co-operate as partners
– Development of a code of ethics & a mgmt
philosophy
– Mgmt. and workers should feel the urge for joint
consultation
VVGiri -”Stress on collective bargaining & mutual
negotiations for settlement of disputes
 APPROACHES TO IR (contd..)

• Gandhian approach:
– Peaceful co-existence of capital & labour
– Resolution of conflict by non-violent,non co-
operation
– Accepted worker’s right to strike but in a just
case
– Capitalist expected to hold industry in trust for
[Link] room for conflict
– India’s IR system largely influenced by this
approach
 APPROACHES TO IR (contd..)

 System approach:
 John Dunlop developed a system approach
 It is an ideological linkage

• Market Restraints
• Technology Union – Rules of
Mgmt Workplace
• Distribution of Power in Govt.
Society

Output is result of interaction

 INDUSTRY
EMPLOYER LABOUR
[MANGEMENT] [TRADE UNION]

INDUSTRIAL RELATION IS INTERACTION BETWEEN THE TWO

STAKE-HOLDERS AT WORK PLACE TO HARMONISE CONFLICTING
INTERESTS
 ROLE/BEHAVIOUR OF ACTORS
(1) WORKERS:
– Form unions to safeguard interests and act as
bargainers
– In India there are 10 central organizations
– Mainly political institutions and a regulatory
device to management actions
 ROLE/BEHAVIOUR OF ACTORS
(2) MANAGEMENT

• Key actor in the system

• Manner to get work done determines the quality of
relations
• Likert identified following leadership styles:
– Exploitative & authoritative system
– Benevolent authoritative system
– Consultative Management
– Participative Style
 ROLE/BEHAVIOUR OF ACTORS
(3) GOVERNMENT

• Govt acts as a regulator & judge

– Till 19th century ,govt. never bothered to intervene
– Only early 40’s govt. laid need for consultation with
labour & management.
– Enacted legislations, acts & labour laws.
“ In globalization set up,increasing awareness of
workers,complexities,the relations of 3 actors will
become more complex’
 PRINCIPLES OF IR
1. Fair redressel of employee grievance
2. Providing satisfactory working conditions
3. Payment of fair and reasonable wages
4. Training and education of employees
5. Developing proper communication system between
employer and employee
6. To develop employees to adapt themselves for
technological, social and economic changes.
7. Contribution in economic development of country
8. Recognizing importance of collective bargaining
 Role of state in industrial relations

• In recent years the State has played an important role in regulating industrial
relations but the extent of its involvement in the process is determined by the
level of social and economic development while the mode of intervention
gets patterned in conformity with the political system obtaining in the country
and the social and cultural traditions of its people. The degree of State
intervention is also determined by the stage of economic develop. For
example, in a developing economy like ours, work-stoppages to settle claims
have more serious consequences than in a developed economy and similarly,
a free market economy may leave the parties free to settle their relations
through strikes and lockouts but in other systems varying degrees of State
participation is required for building up sound industrial relations.
• In India, the role played by the State is an important feature in the field of
industrial relations and State intervention in this area has assumed a more
direct form. The State has enacted procedural as well as substantive laws to
regulate industrial relations in the country.
 Role of management in industrial relations

• The management have a significant role to play in maintaining

smooth industrial relations. For a positive improvement in
their relations with employees and maintaining sound human
relations in the organization, the management must treat
employees with dignity and respect. Employees should be
given ‘say’ in the affairs of the organization generally and
wherever possible, in the decision-making process as well. A
participative and permissive altitude on the part of
management tends to give an employee a feeling that he is
an important member of the organization – a feeling that
encourages a spirit of cooperativeness and dedication to
work.
• Management must make a genuine efforts to provide congenial work environment.
• They must make the employees feel that they are genuinely interested in their
personal development. To this end, adequate opportunities for appropriate
programmes of 18training and development should be provided.
• Managements must delegate authority to their employees commensurate with
responsibility.
• They must evolve well conceived and scientific wage and salary plan so that the
employees may receive just compensation for their efforts. They must devise,
develop and implement a proper incentive plan for personnel at all levels in the
organization.
• There must be a well-planned communication system in the organization to pass on
information and to get feed back from the employees.
• Managements must pay personal attention to the problems of their employees
irrespective of the fact whether they arise out of job environment or they are of
personal nature.
• They must evolve, establish and utilize appropriate machineries for speedy redressal
of employees grievances.
• Manageemnts must provide an enlightened leadership to the people in the
organization.
• An environment of mutual respect, confidence, goodwill and understanding on the
part of both management and employees in the exercise of their rights and
Determining factors of industrial relations

• 1. History of industrial relations

• Economic satisfaction of workers
• Social and Psychological satisfaction
• Off-the-Job Conditions
• Enlightened Trade Unions
• Negotiating skills and attitudes of management and
workers
• Public policy and legislation
• Better education
• Nature of industry
 The functions of the industrial relations staff are
[Link], including overall organization,
supervision and co-ordination of industrial relations
policies and programmes.
2. Liaison with outside groups and personnel
departments as well as with various cadres of the
management staff.
3. The drafting of regulations, rules, laws or orders and
their construction and interpretation.
4. Position classification, including overall direction of
job analysis, salary and wage administration, wage
survey and pay schedules.
5. Recruitment and employment of workers and other
staff..
9. Employment testing, including intelligence tests,
mechanical aptitude tests and achievement tests.
7. Placement, including induction and assignment.
8. Training of apprentices, production workers,
foremen and executives Employee counseling on all
types of personnel problems-educational,
vocational, health or behavior problems.
10. Medical and health services.
11. Safety services, including first aid training
12. Group activities, including group health insurance,
housing, cafeteria programmes and social clubs.
[Link] plans and their uses in labor,
management and production committees.
14. Employee relations, especially collective
bargaining with representatives and settling
grievances.
15. Public relations.
16. Research in occupational trends and employee
attitudes, and analysis of labor turnover.
17. Employee records for all purposes.
18. Control of operation surveys, fiscal research and
analysis.
19. Benefit, retirement and pension programmes
FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL INDUSTRIAL
RELATIONS PROGRAMM

• Top Management Support:

• Sound Personnel Policies:
• Adequate Practices should be developed by
professionals:
• Detailed Supervisory Training:
• Follow-up of Results:
 Industrial Relations problems in the Public
Sector
Multiplier effects: Modern industry and for that
matter modern economy are interdependent.
Hence although the direct loss caused due to
industrial conflict in any one plant may not be
very great, the total loss caused due to its
multipliers effect on the total economy is
always very great
Fall in normal tempo: Poor Industrial Relations
adversely effect the normal tempo of work so
that work are below the optimum level. Costs
build up. Absenteeism and labor turnover
increase. Plants discipline breaks down and
both the quality and quality of production
suffer.
Resistance of change: Dynamic industrial
situation calls for change more or less
continuously. Methods have to be improved.
Economics have to be introduced. New
products have to be designed, produced and
put in the market. Each of these tasks involves
a whole chain of changes and this is resisted
bitterly if these are industrial conflict.
Frustration and social cost: Every man comes to
the work place not only to earn a living. He
wants to satisfy his social and egoistic needs
also. When he finds difficulty in satisfying
these needs he feels frustrated. Poor
Industrial Relations take a heavy toll in terms
of human frustration. They reduce cordiality
and aggravate social tension.
 TRADE UNION
Trade unions play an important role and are helpful in
effective communication between the workers and the
management. They provide the advice and support to
ensure that the differences of opinion do not turn into
major conflicts. The central function of a trade union is
to represent people at work. But they also have a wider
role in protecting their interests. They also play an
important educational role, organizing courses for
their members on a wide range of matters. Seeking a
healthy and safe working environment is also prominent
feature of union activity.
 Definitions trade union are

Dale Yoder, “A trade union is a

continuous association of wage-
earners for the purpose
maintaining of improving the
conditions of their working lives.”
 GROWTH AND DEVELOPMENT OF THE TRADE UNION
MOVEMENT

The growth and development of the labour movement,

and for that part of the trade unions, in India, can be
divided into following periods, each of them revealing
different tendencies that mark it from others.
1. Social Welfare period, from 1875 to 1918
2. Early Trade Union period, from 1918 to 1924
3. Left-wing Trade Unionism period, from 1924 to 1934
4. Trade Unions’ Unity period from 1935 to 1938
5. Second World War period from 1939 to 1945
6. Post – independence period from 1947 to date
 1. Social Welfare period, from 1875 to 1918

• Indian humanitarians,like Sorabjee Shapurji

Bengali(1875) and Lokhanday (1884)
• Un happy in working condition in British government
to British the employment of women and child and
then amended in 1891 and 1991 respectively
• The most features of the period 1875-1918 are
• Complete absence of radicalism in the labour
movement. The method of used by the workers were
“ Characterized by a tendency to petition,memorials
and seek redress of grievences by mild pressure.
[Link] movement depended greatly on external
phlanthropy
[Link] the particular grievance was settled the
association would disband.
[Link] was little conception of permanent trade
union membership, the payment of dues or
organized collective bargainning. About the
bombay mill hands association.”This association
not in existence. No membership, no fee,no rule…
Developed by postal workers,railway employees. 1. Social
Welfare period, from 1875 to 1918
not much progresss in Organized industries like textiles,mining
and planatations.
[Link] early leadership was provided by three types of
[Link] intellectuals such as
lawyers,reformers,editors,teachers and preachers, who
readily came forwarded to organize and lead the workers.
Secondly the careerists, who saw in the needs of workers
opportunities for furthering their own ended. The third
group from vardarajulu naidu, shiv rao, annie besant and
b.g. Talak, [Link]
 Early Trade Union period, from 1918 to 1924

“It market the start of a new era, an era of

growth and one in which the leadership of the
trade unions was to pass from the hands of
the social workers into the hands of the
politicians. The movement could take
permanent roots in the Indian soil only after
the close of World War”
I. This situation was due to :
1. The industrial unrest that few up as a result
of grave economic difficulties created by war,
the workers to demand reasonable wages .
2. The Swaraj movement intensified the
movement,The new consciousness produced
restlessness, discontent, a spirit of
defiance(boldness) as well as new ideal and
aspirations.
3. the success of the Russian Revolution of 1971
created a revolutionary wave of ideas and a
new self-respect and enlightenment,
4. The establishment of the I.L.O., in 1919, gave dignity to the
working class and also an opportunity to send a delegation to
the annual conference of this body.
5. Immediately after the war many Indian soldiers (who
previously belonged to the working class) in the British army
were demobilized and forced into the labour market. Theses
ex-soldiers who had seen workers and the working conditions
in Europe found that Western workers enjoyed better
conditions of living because of their greater solidarity and of
more opportunities available to them but Indian workers
were denied these opportunities. By 1920, a large class of
genuine proletariat developed. Hence, theses were new
opportunities for the creation of trade unions.
6. The non-co-operative movement of Gandhiji during 1920-21
and his support to the demand of industrial labour
also greatly influenced the working class movement
 Left-wing Trade Unionism period , from 1924 to 1934

In 1924, a violent and long-draw-out strike by unions led to the arrest,

prosecution, conviction and imprisonment of many communist
leaders. The AITUC emerged as the representative of the Indian
working class. By 1927 it united 57 unions with a membership of
150,555. the rapid growth of the trade unionism was facilitated by
several factors, such
(i) the growth anti-imperialist national movement;
(ii) the brutal violence and repressive measures let loose by the British
government, particularly the Jallianwala Bagh massacre,
Rowlatt Act, indiscriminate arrest and imprisonment of national
leaders and Satyagrahis;
(iii) the phenomenal profits earned by the capitalist in the face of falling
real ages during the post-war period.
 Trade Unions’ Unity period - 1935 to 1938

• mid-thirties of the 20th century the state of

divided labour movement was natural thought
undesirable and soon after the first split,
attempts at trade union unity began to be
made through the efforts of the Roy Group on
the basis of ‘a platform of unity’.
• “A trade union is an orange of class-struggle; its
basis task is to organize the workers for advancing
and defending their rights and interests.
Negotiation, representations and other methods of
collective bargaining must remain an integral part
of the trade union activates.” both wings of labour-
the AITUF and the INTUC. The final decision was
taken in Delhi in 1933, when National Federation
of Labour (NFL) was formed to facilitate the
attempt towards unity.
 Second World War period - 1939 to 1945

• The Second World War, which broke out in

September 1939, created new strains in
the united trade union movement.
• (i) for mobilization of Indian labour for conscious for
securing for the workers bare minimum of wages and
amenities which the wartime conditions effort if was
aided by the Government of India, by providing large
funds at the rate of Rs. 13,000 per month. The IFL
grew very rapidly and by 1944, it claimed 222 unions
with a membership of 407,773 workers.
Post – independence period - 1947 to 2000

• “Congressmen in general and particularly

those working in the field of labour, have
found it very difficult to co-operate any longer
with the AITUC which has repeatedly been
adopting a course completely disregarding, or
even in opposition to the declared policy and
advice of the Indian National Congress.”
• Since the beginning the INTUC shared and
supported the political outlook of the Indian
National Congress its popular image was
identified with that of the Congress, and hence,
its policies are subject to directives of the
Congress party. The constitution of the INTUC
emphasizes democratic and peaceful methods,
which are in harmony with the tradition,
culture and aspirations of the people.
• Important factor
• The constant inflow of outside and international
influence
• The pressure of trade union rivalries, often based on
political and ideological difference
• Gove industrial relation policy with its provision for
compulsory adjudication machinery
• The enactment of labour laws conferring special
privileges on registered trade unions
• Desire of workers to unit for safeguarding their interest
especially to face harder condition for labour such as
retrenchment , layoff, etc.
• Attempts made by some employers to set up union
under their influence.
• FUNCTIONS OF TRADE UNIONS IN INDIA

(i) To achieve higher wages and better working and living

conditions for the members.
(ii) To acquire control over industry by workers.
(iii) To minimize the helplessness of the individual workers by
making them stand-up united and increasing their resistance
power through collective bargaining; protecting the members
against victimization and injustice by employers.
(iv) To raise the status of the workers as partners in industry and
citizens of society by demanding an increasing share for them in
the management of industrial enterprises.
(v) To generate self-confidence among the workers.
(vi) To encourage sincerity and discipline among workers.
(vii) To take up welfare measures for improving the morale of the
workers.
The National Commission on Labour has underscored certain basic
functions to which trade unions have to pay greater attention such as:

i. To secure fair wages for workers.

ii. To safeguard the security or tenure and improve conditions of service.
iii. To enlarge opportunities for promotion and training.
iv. To improve working and living conditions.
v. To provide for educational, cultural and recreational facilities.
vi. To cooperate and facilitate technological advancement by broadening
the understanding of workers in the issues involved in their jobs.
vii. To promote identity of interests of the workers with their industry.
viii. To offer responsive cooperation in improving levels of production and
productivity, discipline and high standards of quality.
ix. To promote individual and collective welfare.
 CODES OF CONDUCT – TRADE UNIONS

Corporate codes of conduct on workers rights and

labour standards hold out a third way to promote
labour rights in the global economy. Advocates
argue that codes of conduct can harness the market
power of informed consumers to halt abuses
against workers in developing countries. Many
supporters see such codes as a civil society
alternative to “first way” government regulation or
“second way” trade union organizing and collective
bargaining to protect workers rights.
• Code of conduct-1958. The four central labour organization
(INTUC,AITUC,HMS, AND UTUC) Voluntairly adopte an inter
union of code of conduct on May 21,1958, The following
principles for maintenance of harmonious intern union
relation
1. Union of His Choice
2. No Dual Membership
3. Democratic Functioning of trade union
4. Democratic Election
5. Extravagant Demands
6. Casteism, Communalism shall be removed
7. No-violence
8. All central unions shall combat the formation of company
union
 Labour conditions in India
In India over 90% of the workforce is employed in the
informal sector. Also a large share of the workers in
the garment industry form part of the informal
sector. One definition of the informal sector refers
to the activities of the working poor who are not
recognized, recorded, protected or regulated by
the public authorities. An example of informal
sector workers are so-called self-employed workers
who run their own micro-enterprise or
homeworkers.
 The possible effects of CCC(Clean Clothes
Campaign)
Several times the question was raised as to what the effect of
an international campaign like the CCC, which is focussed
on companies with global supply chains, is on companies
which produce for the local market and consequently for
workers in these facilities. The response of CCC was that the
campaign aims to improve working conditions in the
garment industry by supporting local organisations. One of
the central demands of the campaign is the right to
organise and collective bargaining. It is up to the labour
movement to command respect for worker rights from
employers and the government on behalf of the workers
who they represent
 General conclusions
Some common conclusions can be drawn from the
meetings in Delhi, Mumbai and Tirupur. In the global
organisation of industry, the local market may not be
local anymore, therefore the globalized industry
needs global intervention through international
labour solidarity. It was felt that more co-operation
between
Indian trade unions, NGOs and CCC is needed. A
majority found the work on a voluntary code of
conduct for industry acceptable, though some felt
the need to discuss this strategy more elaborately.
END