Student Name:

Reg: No:
Class:

INDUSTRIAL RELATIONS

NEW SYLLABUS

T. HABEEBUR RAHMAN MBA.,M.Phil.,Ph.D.

Asst. Prof. of Business Administration,
Islamiah College (Autonomous)-Vaniyambadi
 INDUSTRIAL RELATIONS (U8BA6001)

Course Code Course Title L T C

U8BA6001 INDUSTRIAL RELATIONS 5 1 5
Instructional Objectives
1. To enable the students to understand the concept of industrial relations.
2. To facilitate students to understand the causes, types and machineries available under
Industrial Disputes Act.
3. To understand the concept of collective bargaining, its functions and have a knowledge of
Trade Union, its features and functions.
4. To make the students capable of maintain peace and harmony in the organisation by the
application of various labour laws and ensuring maximum efficiency.
Unit-I Introduction 15 Hours
Industrial Relations –Meaning – Characteristics- Nature and Scope of Industrial Relations –
Objectives- Factors influencing industrial relationship- Importance of harmonious Industrial
Relations.
Unit-II Industrial Disputes 15 Hours
Industrial Disputes – Definition – Causes- Types – Machineries available under Industrial
Dispute Act- Prevention and settlement of Industrial disputes – Causes for Industrial Dispute –
Employee Dissatisfaction – Disciplinary Action – Strikes – lockout – Legal and illegal –
Prevention of Strikes and Lockouts.
Unit-III Trade Union 15 Hours
Definition- features- Functions- Procedure for registration- Rights of registered trade union-
measures to strengthen trade union in India.
Unit-IV Collective Bargaining and WPM 15 Hours
Meaning- Importance- Functions- Process- Role of Government in Collective Bargaining-
Workers participation in management- features- objectives- scope- methods
Unit-V Indian Factories Act 15 Hours
Indian Factories Act, 1948 – Objectives –Provisions of the Act regarding Welfare, Health and
Safety of Workers.
Books for Study:
1. Sreenivasan M R :Industrial Relations and Labor legislations
2. Monoppa : Industrial Relations
3. B.Nanda Kumar :Industrial Relations Labour Welfare and Labour Laws
4. Subba Rao p :Human Resource Management and Industrial Relations
5. N.D.Kapoor :A handbook of Industrial Laws

Books for Reference:

1. BD Singh :Industrial Relations: Emerging paradigm

2. Piyali Ghosh Shefali Nandan : Industrial Relations and Labour Laws
3. CB Mamoria : Dynamics of Industrial Relations
4. J.R.Carby Hall :Principles of Industrial Law
5. H. Samuel :Industrial Law

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T. HABEEBUR RAHMAN MBA.,M.Phil.,Ph.D | Asst.Prof.of Business Administration, Islamiah college (Autonomous)-Vaniyambadi
 INDUSTRIAL RELATIONS (U8BA6001)

Industrial Relations
Unit-I-Introduction
1) Meaning of Industrial Relations:
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual is engaged”. By
“relations” we mean “the relationships that exist within the industry between the employer
and his workmen.”
The term industrial relations explains the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers within
the organizational settings.

2) Definition of Industrial Relations:

According to bethel and others "Industrial relations refer to that part of management which
is concerned with the manpower of the enterprise whether machine operator, skilled
worker or manager.
The Industrial Relations or IR encompasses the relationship between the management
and workmen and the role of a regulatory body to resolve any industrial dispute.
According to V. Agnihotri "The term industrial relations explains the relationship
between employees and management which stems directly or indirectly from union-
employer relationship.
According to H.A. Clegg "The field of industrial relations includes the study of workers
and their trade unions, management, employers' associations and the state institutions
concerned with the regulation of employment.

3) OBJECTIVES OF INDUSTRIAL RELATIONS:

• The primary objective of industrial relations is to maintain and develop good and healthy
relations between employees and employers in an industry.
• To establish and foster sound relationship between workers and management
by safeguarding their interests.
To avoid unnecessary interference of the government, as far as possible and practicable, in the
matters of relationship between workers and management.
To avoid industrial conflict and unrest, so that production process must carry on
smoothly.
To reduce employee turnover and frequency absenteeism.
To allow workers participation in management decision making process.
To eliminate or minimize the number of strikes, lockouts and by providing reasonable wages.
To improve the economic conditions of workers in the existing state of
industrial managements and political government.
To socialize industries by making the government as an employer.
To maintain industrial peace and harmony.

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4) IMPORTANCE OF INDUSTRIAL RELATIONS

1. Increased Productivity: With amicable industrial relations both the workers and
managers
continue to work on their respective position and contribute towards the overall productivity of
the firm. Thus, IR ensures the continuity of production.
2. Reduced Industrial Disputes: An effective industrial relations helps in the reduction
of industrial disputes as both the management and the workers maintain harmonious
relations with each other and work in unison towards the accomplishment of production
objective.
3. Increased Morale: The peaceful industrial relations boost the morale level of the
employees as they feel that their interest coincides with that of the employer’s, and their efforts
will result in the overall profitability of the firm.
4. Minimization of Wastage: A good industrial relations ensures reduced wastage as
the resources – Man, Machinery, Material are fully utilized and are effectively
contributing towards the overall productivity of the firm.

5) SCOPE OF INDUSTRIAL RELATIONS:

1) Development of Healthy Labour-Management Relations: The promotion of healthy
labour management relations pre-supposes: The existence of strong, well-organized,
democratic and responsible trade unions and associations of employers.
This can lead to: a) Job security of employees (b) Increased workers' participation in
management (c) Negotiations, consultations and discussions (d) Good labour-management
relations.
2) Maintenance of Industrial Peace: Industrial peace pre-supposes the absence of industrial
strife. Industrial peace is essential for increased productivity and harmonious labour-
management relations.
The industrial peace can be largely nurtured through the following means:
(a) Machinery should be set up for the prevention and settlement of industrial disputes
(b)The industrial peace can also be attained by the creation and maintenance of implementation
cells and evaluation committees which have the power to look into implementation of
agreements, settlements and awards and also violations of statutory provisions laid down under
various labour laws.
(iii) Development of Industrial Democracy: The idea of industrial democracy states that the
labour should have the right to be associated with the management of an industry. To achieve
this objective, the following techniques are usually employed:
Establishment of the Shop Councils and Joint Management Councils at the floor and plant
level. These councils aim at:
(a) Improving the working and living conditions of employee
(b) Improving productivity, encourage suggestions from employees
(c) Assisting the administration of laws and agreements
(d) Serve as a channel of communication between the management and employees
(e) Creating among the employees a sense of participation in the decision-making process and
(f) Sense of belonging to the industry.

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6) FACTORS OF INDUSTRIAL RELATIONS

Industrial relations are influenced by various factors,
(a) Institutional factors, (b) Economic factors (c) Technological factors (d) Political Factors
(e) Social and Cultural Factors (f) Governmental Factors.
(a) Institutional Factors: These factors include government policy, labour legislations,
voluntary courts, collective agreement, employee courts, employers’ federations,
social institutions like community, caste, joint family, faith, system of beliefs, attitudes of
works, system of power status etc.
(b) Economic Factors: These factors include economic organization, like capitalist,
communist mixed etc., the structure of labour force, demand for supply of labour force etc.
(c) Technological Factors: These factors include mechanization, automation,
rationalization, and computerization. Every Industry has to continuously focus on
technological changes frequently.
(d) Political Factors: These factors include political system in the country, political
parties and their ideologies, their growth, mode of achievement of their policies,
involvement in trade unions etc.
(e) Social and Cultural Factors: These factors include population, religion, customs and
tradition of people, race ethnic groups, cultures of various groups of people etc.
(f) Governmental Factors: These factors include Governmental policies like industrial
policy, economic policy, and labour policy, export policy etc.

7) CAUSES OF POOR INDUSTRIAL RELATIONS:

1. Economic causes: Often poor wages and poor working conditions are the main causes for
unhealthy relations between management and labour. Unauthorised deductions from wages,
lack of fringe benefits, absence of promotion opportunities, faulty incentive schemes are
other economic causes. Other causes for Industrial conflicts are inadequate infrastructure,
worn-out plant and machinery, poor layout, unsatisfactory maintenance etc.
2. Organisational causes: Faulty communications system, unfair practices, non-
recognition of trade unions and labour laws are also some other causes of poor relations in
industry.
3. Social causes: Uninteresting nature of work is the main social cause of poor Industrial relations.
Dissatisfaction with job and personal life culminates into Industrial conflicts.
4. Psychological causes: Lack of job security, non-recognition of merit and performance, poor
interpersonal relations are the psychological reasons for unsatisfactory employer-employee
relations.
5. Political causes: Multiple unions, inter-union rivalry weaken the trade unions.
Defective trade unions system prevailing in the country has been one of the most
responsible causes for Industrial disputes in the country.

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8) SUGGESTIONS TO IMPROVE INDUSTRIAL RELATIONS/ ESSENTIALS

OF INDUSTRIAL RELATIONS:
1. Sound personnel policies: Policies and procedures concerning the compensation,
transfer and promotion, etc. of employees should be fair and transparent. All policies and
rules relating to Industrial relations should be fair and transparent to everybody in the
enterprise and to the union leaders.
2. Participative management: Employees should associate workers and unions in
the formulation and implementation of HR policies and practices.
3. Responsible unions: A strong trade union is an asset to the employer. Trade unions
should adopt a responsible rather than political approach to industrial relations.
4. Employee welfare: Employers should recognise the need for the welfare of workers.
They must ensure reasonable wages, satisfactory working conditions, and other necessary
facilities for labour. Management should have a genuine concern for the welfare and
betterment of the working class.
9) ADVANTAGES OF INDUSTRIAL RELATIONS:
1) Increased Productivity: Employees who have a positive relationship with their
colleagues and managers work smarter and more efficiently. They are more likely to put
forth their best efforts and get involved in the company's projects. This leads to higher
productivity and performance, which helps to achieve organizational objectives.
2) Enhanced Motivation: Increased morale and motivation is one of the primary
benefits of good employee relations. Disengaged employees cost organizations a whopping
$300 billion in lost productivity each year. Companies with engaged workers, on the other
hand, experience up to 43-percent higher productivity. Basically, it pays to make sure your
staff feels appreciated and empowered. Let them know that their opinion is valued. Provide
personalized feedback and express interest in their work.
3) Less Absenteeism: Workplace stress and conflicts are often the driving factors
behind employee absenteeism. If your employees are constantly missing work, try to
determine the cause. Ask about their relationship with other team members. Investigate
any harassment charges and encourage your staff to report such cases. Assure your
employees that you care about their safety and well-being. A good industrial leads to less
absenteeism of employees.
4) Increased Revenue: Strong employee relations have a positive impact on the
company's growth and revenue. People who feel motivated and engaged in the workplace do
an excellent job in their assigned roles, resulting in better products, greater customer
satisfaction and increased sales. Employees are a company's most valuable asset.
5) Industrial peace and harmony: A good industrial relations leads to maintain
industrial peace and harmony in an organisation. It leads to avoid industrial disputes and
conflicts. Hence, the objectives of the organisation will achieve easily.

10) DISADVANTAGES OF INDUSTRIAL RELATIONS:

1) Unhealthy working conditions: If there is poor industrial relations then the industry
may face unhealthy working condition problems. There will be one or the problem occurs
on daily basis. If there is no healthy working conditions then the industry may face plenty of
problems right from production to sales.

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2) Indiscipline: Poor industrial relations leads to indiscipline among employees of

the Industry. Discipline and co-ordination of employees plays vital role in all the
industries. An indiscipline employee always try to omit the rules and regulations of the
industry.
3) Less Productivity: Poor industrial relations leads to less productivity. Employees does
not show any interest on production process. The industry may face severe loss.
4) Instability in the work: Poor industrial relations leads to instability in the work. There
will not be fixed rules and regulations because everyone try to break the rules and
regulations and automatically products will not produce on time. It also leads to severe
business loss.
5) More Conflicts: Poor industrial relations leads to industrial conflicts. There will be
no understanding and relationships between employees and employer.
11) ROLE OF INDUSTRIAL RELATIONS TOWARDS INDUSTRIAL EXPANSION
1) It promotes understandings and unity among workers. Since the workers have to work
in groups, there is bound to be common understanding which promotes friendship
among employees.
2) It paves the way for improving the morale among the workers.
3) It leads to avoid industrial conflict and unrest, so that production process must carry on
smoothly.
4) It allows workers participation in management decision making process.
5) It eliminate or minimize the number of strikes, lockouts and by providing reasonable
wages.
6) It improve the economic conditions of workers in the existing state of industrial
managements and political government.
7) It leads to maintain industrial peace and harmony.

12) APPROACHES/PERSPECTIVES OF INDUSTRIAL RELATIONS:

1) Psychological Approach to IR: The psychologists are of the view that the problem of IR
are deeply rooted in the perception and the attitude of focal participants. For ex. A photograph
of an ordinary middle aged person served as input, which both groups were expected to rate. It
is interesting to note that both the groups rated the photograph in different manner, i.e., the
Union leaders referred the person in the photograph as “ Manager” where the group of
Executives saw Union leaders referred the person in the photograph as “Manager” where the
group of Executives” saw “Union leader” in the photograph.

This variance in perception of parties is largely because of their individual perception. The
conflict between labour and management occurs because every group negatively
views/perceives the behaviour of other i.e. even the honest intention of a party is looked with
suspicion.

2) Sociological Approach to IR: The industry is a social world made up of groups with
differing personalities, educational background, family breeding, emotions, likes and dislikes
and host of other personal factors such as attitudes and behaviour. Since ages, the problems of
IR have been looked upon as one basically concerned with wages, employment, conditions and
labour welfare. But in fact sociological aspects of the problem are more important than others.

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This largely includes various sociological factors like value system, customs, norms,
symbols and attitude and perception of both labour and management that affect the IR in varied
ways.
3) Human relations Approach to IR: Management of people at work is an exclusive
prerogative of HR specialists, the various HR policies including those relating to leadership
and motivation have profound influence on their work behaviour. For instance, a manager,
using an autocratic style, designs, a close supervision system and feels that display of authority
would drives people to work. But this style leads to dissatisfaction and hatred among people
whereas in a democratic style, it is held that a desired organisational behaviour can be cultivated if
employees needs and wants are properly satisfied. The manager working with such a style
positively motivates people. In fact, no style is good or bad is every situation demands a
specific leadership behaviour on the part of HR specialist.

4) Gandhian Approach to IR: Gandhiji advocated that for resolving disputes the following
rules to be observed.
a. The workers should seek redressal of reasonable demands only through collective action.
b. If they have to organise a strike, trade unions should seek by ballot authority from all workers to
do so, remain peaceful and use non-violent methods.
c.The workers should avoid strikes as far as possible in industries of essential services;

d. The workers should avoid formation of unions in philanthropic organisation.

e. The strikes should be resorted to only as a last resort after all other legitimate measures have
failed.

13) COMPONENTS OF INDUSTRIAL RELATION SYSTEM

1) Employees: Workers seek to improve the terms and conditions of their employment. They
exchange views with management and voice their grievances. They also want to share decision
making powers of management. Workers generally unite to form unions against the
management and get support from these unions.
2) Employers: Employers possess certain rights vis-à-vis labours. They have the right to hire
and fire them. Management can also affect workers’ interests by exercising their right to
relocate, close or merge the factory or to introduce technological changes.
3) Government: The central and state government influences and regulates industrial relations
through laws, rules, agreements, awards of court and the like. It also includes third parties and
labour and tribunal courts.

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Unit-II-Industrial Dispute Act 1947

1) Meaning of Industrial Dispute/Unrest: The term ‘industrial dispute’ means “any dispute
or difference between (i) Employers and Employers or (ii) Employers and Employees, or
(iii) Employees and Employees, or (iv)Employees and Employers which is connected
with the employment or non- employment or the terms of employment and conditions of
employment of any person”.
2) Define Industrial Dispute/Unrest: An industrial dispute may be defined as a conflict
or difference of opinion between management and workers on the terms of employment. It
is a disagreement between an employer and employees representative; usually a trade union, over
pay and other working conditions and can result in industrial actions.

3) OBJECTIVES OF INDUSTRIAL DISPUTE ACT:

• Promotion of measures for securing and preserving amity and good relation between
the employers and workers
• Investigation and settlement of industrial disputes Prevention of illegal strikes and lock–outs
• Relief to workmen in the matter of lay–off and retrenchment
• Promotion of collective bargaining

4) TYPES OF INDUSTRIAL DISPUTES:

1. Interest Disputes and 2. Grievance or Right Disputes.
1. Interest Disputes: These disputes are also called ‘economic disputes’. Such types of
disputes arise out of terms and conditions of employment either out of the claims made by the
employees or offers given by the employers. Such demands or offers are generally made
with a view to arrive at a collective agreement. Examples of interest disputes are lay-offs,
claims for wages and bonus, job security, fringe benefits, etc.
2. Grievance or Right Disputes: As the name itself suggests, grievance or right disputes
arise out of application or interpretation of existing agreements or contracts between the
employees and the management. They relate either to individual worker or a group of
workers in the same group.
So only in some countries; such disputes are also called ‘individual disputes’. Payment
of wages and other fringe benefits, working time, over-time, seniority, promotion,
demotion, dismissal, discipline, transfer, etc. are the examples of grievance or right disputes.

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5) Machineries available under Industrial Dispute Act for the prevention and
settlement of Industrial Dispute (or) Methods available for resolving disputes:
The following are Machineries available under Industrial Dispute Act for the prevention
and settlement of Industrial Dispute:
1) Conciliation 2) Court of enquiry 3) Arbitration 4) Adjudication
1) Conciliation: Conciliation is a process by which the representatives of workers
and employers are brought together before a third party with a view to persuading them to
arrive at an agreement by mutual discussion between them. The third party may be an
individual or a group of people. The third party may also be called as mediators.
It involves the following bodies:
a) Conciliation officer: An authority appointed by the government to mediate disputes
between parties brought to his notice; enjoying the powers of a civil court. He is
supposed to give judgment within 14 days of the commencement of the conciliation
proceedings.
b) Board of conciliation: The Board is an adhoc, tripartite body having the powers of a civil
court created for a specific dispute (when the conciliation officer fails to resolve disputes
within a time frame, the board is appointed)
c) Court of enquiry: In case the conciliation proceedings fail to resolve a dispute, a court of
enquiry is constituted by the government to investigate the dispute and submit the report
within six months.
2) Court of enquiry: In case of the failure of the conciliation proceedings to settle a
dispute, the government can appoint a Court of Inquiry to enquire into any matter
connected with or relevant to industrial dispute. The court is expected to submit its report
within six months. The court of enquiry may consist of one or more persons to be
decided by the appropriate government.
The court of enquiry is required to submit its report within a period of six months from
the commencement of enquiry. This report is subsequently published by the government
within 30 days of its receipt. Unlike during the period of conciliation, workers’ right to strike,
employers’ right to lockout, and employers’ right to dismiss workmen, etc. remain
unaffected during the proceedings in a court to enquiry.
3) Arbitration: Arbitration is a procedure in which a neutral third party studies the
bargaining situation, listens to both the parties, gathers information and then makes
recommendations that are binding on both the parties.
Arbitration is effective means of resolving disputes because it is:
a) Established by the parties themselves and the decision is acceptable to
them. b) Relatively expeditious when compared to courts and tribunals.
4) Adjudication: Adjudication consists of settling disputes through intervention by the
third party appointed by the government. The law provides the adjudication to be
conducted by i) labour court and ii) Industrial tribunals

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i) Labour court: A labour court consists of one person only, who is normally a sitting or
an ex-judge of a High Court. It may be constituted by the appropriate Government for
adjudication of disputes which are mentioned in the second schedule of the Act.
ii) Industrial tribunals: Like a labour court, an industrial tribunal is also a one-man body.
The matters which fall within the jurisdiction of industrial tribunals are as mentioned in the
second schedule or the third schedule of the Act. Obviously, industrial tribunals
have wider jurisdiction than the labour courts.

6) Causes of Industrial Dispute:

i) Wages: Low wages of industrial workers constitute a major cause of industrial
disputes in the country. Wages have not been rising in proportion to the rise in
prices. This has forced the labourers to demand higher wages, consequently leading to
disputes.
ii) Bonus: The demand for bonus or increase in bonus has been the second major cause of
industrial disputes. The workers feel that they should have a greater share in the profits
of the industrial concern. Non-acceptance of this fact by the employers has been a
source of friction among the employers and the workers.
iii) Working Conditions: The demand for improvement in working conditions such as
lesser working hours, security of job, better safety measures in the factory, leave, canteen,
gratuity facilities, etc., are also responsible for many industrial disputes.
iv) Other Causes: Among other causes that lead to disputes are failure of employers to
recognise trade unions, conflict between rival unions for representation, insult to trade
union leadership by the employer, introduction of rationalisation in the factory, the
fear of retrenchment of workers, sympathetic strikes with fellow employees in
other establishments, general discontent and sense of frustration among labourers,
political issues etc.

Employee Dissatisfaction
7) Meaning: Employee dissatisfaction refers to unhappy or negative feelings about work
or the work environment. There exist many factors which may result in Employee
dissatisfaction. Some of them are poor working conditions, overwork, low levels of pay,
no scope of promotion or career advancement and lack of recognition.
8) Causes for Employee Dissatisfaction:
i) Underpaid ii) Limited Career Growth iii) Lack of Interest iv) Poor Management
v) Unsupportive Boss vi) Work and Life Balance.

i. Underpaid: Not being paid what one is worth is called being underpaid. If a person does
not think they are being paid enough to do their job, then they perceive themselves
to be underpaid. If they research the wages for that job and find they are indeed being
underpaid, then their dissatisfaction is warranted.
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ii. Limited Career Growth: Not having the opportunity to climb the ladder and grow the
career is another area that can foster dissatisfaction with a position. For this aspect, it is
important to understand that not everyone wants to move up the ladder. This could
mean that the employee will potentially leave for another organization that might have
better career growth opportunities.
iii. Lack of Interest: This is a very straightforward concept; that one should not start his
career with a job which is not an interested area of that person. A lack of interest in the
work is another reason why employees are unhappy. Most employees want to perform
job duties that are engaging and challenging.
iv. Poor Management: A key reason employees perform poorly in the workplace is poor
management. Managers with poor leadership skills tend to offer little feedback on
employees’ performances. Not having the leadership required is another reason for
dissatisfaction.
v. Unsupportive Boss: Managers who disengage from their employees and focus only on
results without providing inspiration, motivation or support are often unaware that they
may be a major cause of job dissatisfaction.
vi. Work and Life Balance: Companies that fail to recognize the need for employees to
maintain a healthy life and work balance are ultimately affecting their own
productivity levels.

Strike

9) Meaning: Strike is a very powerful weapon used by a trade union to get its
demands accepted. It means quitting work by a group of workers for the purpose of bringing
pressure on their employer to accept their demands.
Strike means cessation of work or abstaining from work, by a body of persons employed in
any industry acting in combination.

10) Types of strike:

The following are the types of strike:

(i) Economic Strike (ii) Sympathetic Strike (iii) General Strike (iv) Sit Down
Strike (v) Slow down Strike (vi) Hunger Strike (vii) Wildcat strike
i. Economic Strike: Under this type of strike, members of the trade union stop work
to enforce their economic demands such as wages, bonus, and other conditions of work.
ii. Sympathetic Strike: The members of a union collectively stop work to support
or express their sympathy with the members of other unions who are on strike in the other
undertakings.
iii. General Strike: It means a strike by members of all or most of the unions in a
region or an industry. It may be a strike of all the workers in a particular region of industry
to force demands common to all the workers. It may also be an extension of the
sympathetic strike to express general protest by the workers.
iv. Sit down Strike: When workers do not leave their place of work, but stop work,
they are said to be on sit down or stay in strike. It is also known as tools down or pen down
strike. The workers remain at their work-place and also keep their control over the work
facilities.
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v. Slow Down Strike: Employees remain on their jobs under this type of strike. They
do not stop work, but restrict the rate of output in an organised manner. They adopt go-
slow tactics to put pressure on the employers.
vi. Hunger Strike: Strike in which the employees go on fasting, near the workplace or
at the residence of the employer, to force him/her redress their grievances is called hunger
strike.
vii. Wildcat strike – Such strike happens by the workers without the consent of union
and authority.

11) Legal and illegal strikes

Legal strikes:
The following strikes are legal:
 Economic strikes: in which employees attempt to pressure the employer to concede to their
demands for improvements in wages, benefits or work rules;
 Unfair labour practice strikes: in protest of an employer's committing an unfair
labour practice; and
 Sympathy strikes: which occur when employees choose not to cross a primary picket line
out of sympathy for the primary striking employees.
Illegal strikes
 Intermittent strikes: involving the constant repetition of short strikes in which the
employees attempt to pressure the employer to concede to their demands while still
receiving wages;
 "Work to rule" or slowdown strikes: in which employees fail to perform the duties which
the employer has historically required them to perform;
 In-facility or "sit down" strikes: in which the striking employees take possession of the
employer's property and block others from entering.

12) Consequences of Illegal Strikes

(I)Wages: To entitle the workmen to wages for the period of the strike, a strike should not only
be legal but it should also not be unjustified. Therefore in order to be entitled for wages for the
period of the strike, a strike not only should be not illegal but should not be unjustified. The
question of provocation by the employer in such case is immaterial. Therefore, the workers
ordinarily who Resort to illegal strike are not entitled to wages for the strike period.

(II)Disciplinary Action against Striking Workmen: Normally taking part in the illegal strike
amounts to misconduct on the part of a workman for which they invite the punishment of
dismissal. Whether the employer is free to impose the punishment of dismissal from services in
such cases has been subject to judicial controversy.

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Lockout
13) Definition of Lockout: Section 2(1) Industrial Disputes Act defines Lockout as
the temporary closing of a place of employment, or the suspension of work, or the refusal
by an employer to continue to employ any number of persons employed by him.
Lockout means temporary shutdown of the factory by the employer, but not winding
up (permanent) of the factory. Lockout of the factory maybe happened due to the failure
in the management affected by internal disturbances or maybe by external disturbances.
Lockout means the temporary closing of a business or the refusal by an
employer to allow employees to come to workuntil they accept the employer's terms.

Layoff
14) Meaning of layoff: Suspension or termination of employment (with or without notice)
by the employer or management. Layoffs are not caused by any fault of the employees
but by reasons such as lack of work, cash, or material. Permanent layoff is called
redundancy.

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Unit-III- Trade union

Trade union Act 1926
1) Meaning/ what is Trade Union: Trade unions are organizations formed by workers
from related fields that work for the common interest of its members. They help workers in
issues like fairness of pay, good working environment, hours of work and benefits. They
represent a cluster of workers and provide a link between the management and workers.
2) Define Trade Union: A trade union is such an organisation which is created
voluntarily on the basis of collective strength to secure the interests of the workers.
Trade union association can exist in three forms:
i. Employer and employees
ii. Employer and employer
iii. Employees and employees
{

3) CHARACTERISTICS OF TRADE UNION

1) Trade union are voluntary association of either employee or employer or independent
workers.
2) Trade union are generally permanent combination.
3) Trade union formed by collective actions of workers.
4) Basic objective of any trade union is to promote and protect the economic, social and
vocational interest of workers/members.
5) Trade union are adoptable to the changing socio-economic- legal - political
environment.
6) Trade union are designed to eliminate the exploitation of the workers through workers
participation in the management.

4) WHAT DO TRADE UNION DO?

1. NEGOTIATIONS (COLLECTIVE BARGAINING):

 Negotiation is where union representatives discuss with the management on issues that
affect people working in the organization.
 The union finds out the members view and relay these views to the management.
 There may be difference of opinion between management and union members,
negotiation is about finding a solution to these differences.
2. REPRESENTATION Trade unions represents individual members when they have
a problem at work. Example if employees feel they are being unfairly treated, the
union representative can sort out the problem with the management, if the problem cannot
be solved by the employer himself then it will be solved on the court
3. INFORMATION AND ADVICE: Trade unions have wealth of information which is
useful to people at work. They can advise on range of issues such as how much pay one is
entitled to get on maternity leave, how much holiday one is entitled to get each year, how to
obtain training at work

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4. MEMBER SERVICES: Trade unions offers range of services to its members. It includes the
following

i. Education and training. Most unions run training courses for their members. The
training relates mostly on employment rights, health and safety.
ii. Legal assistance: Trade union offers legal assistance on employment issues, some
unions even give help on personal matters like housing, wills and debts
iii. Financial discounts: People can get discounts on mortgages, insurance and loans
form unions
iv.Welfare benefits: Trade unions also look after members who hit hard times, example;
some unions offer financial help to their members when they are sick.

5) OBJECTIVES OF TRADE UNIONS:

i) Wages and Salaries: The fundamental objective of trade union is to provide fair
wages and salaries. This item may be related to policy matters. However,
differences may arise in the process of their implementation. In the case of
unorganised senior the trade union plays a crucial role in bargaining the pay scales.
ii) Working Conditions : Trade unions with a view to safeguard the health of workers
demand the management to provide all the basic facilities such as lighting and
ventilation, sanitation, rest rooms, safety equipment while discharging hazardous
duties, drinking water, refreshment, minimum working hours, leave and rest,
holidays with pay, job satisfaction, social security benefits and other welfare
measures.
iii) Personnel Policies: Trade unions may fight against improper implementation of
personnel policies in respect of recruitment, selection, promotions, transfers,
training, etc.
iv) Discipline: Trade union intention is to maintain discipline in the organisation. They sort
out any kind of problems with suitable and two ways communication with
management and employees.
v) Welfare: As stated earlier, trade unions are meant for the welfare of workers. Trade union
works as a guide, consulting authority and cooperates inn overcoming the personal
problems of workers. It may bring to the notice of management, through collective
bargaining meetings the difficulties of workers in respect of sanitation, hospitals,
quarters, schools and colleges for their children's cultural and social problems.
vi) Employee-Employer Relations: A good trade union leads to maintain industrial peace
and harmony in an organisation. It leads to avoid industrial disputes and conflicts.
Hence, the objectives of the organisation will achieve easily.

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6) FUNCTIONS OF TRADE UNION:

Trade unions performs a number of functions in order to achieve the objectives.
These functions can be broadly classified into four categories
i) Militant (revolutionary) functions ii) fraternal functions
iii) Social functions iv) Political functions

i) Militant or protective or intra-mutual functions: These functions include

protecting the workers' interests, i.e., hike in wages, providing more benefits, job
security, etc. through collective bargaining and direct action such as strikes,
gheraos, etc.
ii) Fraternal or extra-mutual functions: These functions include providing financial and
non-financial assistance to workers during the periods of strikes and lock-outs, extension
of medical facilities during slackness and casualties, provision of education,
recreation, recreational and housing facilities, provision of social and religious
benefits, etc.
iii) Social functions: These functions include carrying out social service activities,
discharging social responsibilities through various sections of the society like
educating the customers etc.
iv) Political functions: These functions include affiliating the union to a political party,
helping the political party in enrolling members, collecting donations, seeking the help
of political parties during the periods of strikes and lock-outs.

7) PROCEDURE FOR REGISTRATION OF TRADE UNION

1) Appointment of Registrars 2) Mode of registration 3) Application for registration
4) Provisions to be contained in the rules of a Trade Union 5) Power to call for
further particulars and to require alterations of names 6) Registration 7) Certificate of
registration
1) Appointment of registrars (Sec. 3)
 Appointed by “appropriate Government”
 Appropriate Government can also appoint as many additional and Deputy Registrars of trade
unions.
 But limits will be defined by Registrar
2) Mode of registration (Sec. 4) -Any 7 or more members of Trade Union can subscribe to
the charter of TU by application and complying with the provisions of this Act. Cease to be a
member Registration is invalid Cease to be a member Registration is valid
3) Application for Registration (Sec. 5)
-Application for registration of TU shall be made to Registrar in comply with Rules and
statement of following particulars:
 Names, Occupations & Address of the members
 Name of the Trade Union & Address of its head office
 Titles, Names, Ages, Addresses & Occupations of office Bearers of Trade Union 
Where is Existence of TU from past 1 Year before making this application?

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4) Provisions to be contained in the Rules of Trade Unions (Sec. 6)

 Name of Trade Union
 Whole of the purpose for which the general funds of the Trade Union shall be
applicable.
 Conditions under benefit entitled to members.
 Whole of the objects for which the Trade Union has been established.
 Admission of ordinary members (employee) to whom Trade Union is connected and the
number of temporary members as office bares (forms the executive of TU)
 List of members of Trade Union and their inspection
 Manner for every appointment and removal of office-bearer/ Dissolve of Trade Union 
Manner of Annual Audit of the account books

5) Power to call for further particulars and to require alterations of names (Sec. 7)
 If Trade Union is proposed to be registered is identical with that by which any other
existing
 Shall refuse to register Trade Union until such alteration has been made.
6) Registration (Sec. 8)
Registrar, on being satisfied that the Trade Union has complied with all the requirements of
this Act in regard to registration, shall register the TU within a period of 60 from the date days
of such compliance.
7) Certificate of registration
In the prescribed form which shall be conclusive evidence that the Trade Union has been
duly registered under this Act.

8) RIGHTS OF A TRADE UNION

 It is a corporate body: The registered trade union is a corporate body under section 13 of the Act.
 It enjoys immunity (exemption) from criminal conspiracies
 Section 17 of the Trade Union Act gives immunity to members and office bearers of
registered trade unions from criminal conspiracy in connection with trade disputes.
 The union can keep separate fund for political purposes.
 An agreement between the members of a registered trade union not to accept employment is valid
(not void being agreement in restraint of trade).
 The union has a right to amalgamate to form a larger union. 
Members of the union have a right to inspect books.
 Any person who has attained the age of 15 years can become the member of the union The
union can enforce the performance of contracts.

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9) MEASURES TO STRENGTH TRADE UNION

1. One Union in One Industry:

2. Training and Education of Union Workers:
3. Strengthening the Unions:
4. Free from the control of Political Parties:
5. Change in the Employers’ Attitude:

1. One Union in One Industry: In order to remove inter-union rivalries, to promote unity in the
trade unions, and to take up collective bargaining effectively, it is necessary to observe the
principle of “one union in one industry”. Without such, it is difficult for the workers to concede
their legitimate demands.
2. Training and Education of Union Workers: It is necessary to train and educate the union
worker in the various areas relating to the management of trade union. They should also have
knowledge regarding the working and technicalities of the industry in which they are working.
Further, such trained workers should be appointed as full-time paid officers of the company.
3. Strengthening the Unions: As the trade unions in India are not very .stable and strong, their
growth is very much hindered. Hence, steps must be taken to strengthen them by measures like,
(a) encouraging the small unions to merge with the stronger units, and (b) improving the finances
of trade union by collecting the subscriptions regularly from the members.
4. Free from the control of Political Parties: So far, trade unions in our country are dominated
by the different political parties and this is not helping for their healthy growth. Hence, they must
make efforts to establish themselves as independent organisations and also should replace the
outside leadership by their own leadership.
5. Change in the Employers’ Attitude: The employers have to change their attitude towards
trade unions. They should realize that strong trade unions can be helpful in avoiding many
disputes, inculcating a sense of discipline among the workers and in creating good atmosphere in
the factory. Hence, the employers instead of trying to weaken the trade unions must encourage
their growth on sound lines and give due recognition to the representative trade unions.

10) Limitations /Problems of Indian Trade Union

 Predominance of small sized union

 Rival union
 Inadequate coverage
 Weak financial position
 Political domination
 Absence of full-time office-bearers
 Limited stress on welfare activates
 More reliance on strikes and litigation
 Absence of loyalty of workers to union
 Lack of public sympathy

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 INDUSTRIAL RELATIONS (U8BA6001)
Unit-IV- Collective Bargaining and Participative Management (or)WPM

Collective Bargaining
1) Meaning of Collective Bargaining
The term collective bargaining is made up of two words, ‘collective’ – which means a
‘group action’ through representation and ‘bargaining’, means ‘negotiating’, which involves
proposals and offers. Thus it means collective negotiations between the employer and
the employee, relating to their work situations. The success of these negotiations
depends upon mutual understanding and give and take policies between the employers and
employees.
Collective bargaining is a process of negotiation between employers and a group of
employees aimed at agreements to regulate working salaries, working conditions,
benefits, and other aspects of workers' compensation and rights for workers. The interests
of the employees are commonly presented by representatives of a trade union to which the
employees belong.
Collective Bargaining is the process whereby workers organize collectively and bargain
with employers regarding the workplace. In a broad sense, it is the coming together of
workers to negotiate their employment.
According to Jucious, “Collective Bargaining refers to a process by which employers on
the one hand & representatives of employees on the other, attempt to arrive at agreements
covering the conditions under which employees will contribute & be compensated for their
services”.

2) Features of Collective Bargaining:

i) Group Action as Opposed to Individual Action: Workers & managers
collectively bargain for their common interests & benefits. They jointly arrive at an
amicable solution through negotiations.
ii) Flexible & Mobile and not Fixed or Static: It has sufficient flexibility, since no party
can afford to be rigid in such situations. It is not a one way street but a give and take
process.
iii) Bipartite Process: It is a mutual give and take rather than a take it or leave it
method of arriving at the settlement of a dispute. Employers and employees
negotiate the issues directly, face to face across the table. There is no third party
intervention.
iv) Continuous Process: It does not commence with negotiations & end with an
agreement. It is a continuous process which includes implementation of the
agreement and also further negotiations.
v) Dynamic & not static: The way agreements are arrived at, the way they are
implemented, and the mental makeup of parties involved keep changing.
vi) Power Relationship: Workers want to gain the maximum from management, &
management wants to extract the maximum from workers.

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3) Types of Collective Bargaining:

i) Conjunctive or Distributive Bargaining: Conjunctive bargaining is the most common
type of bargaining & involves zero-sum negotiations, in other words, one side wins and
the other loses. Both parties try to maximize their respective gains. They try to settle
economic issues such as wages, benefits, bonus, etc. For Example, Unions negotiate for
maximum wages & the management wants to yield as little as possible – while getting
things done through workers.

ii) Cooperative or Integrative Bargaining: Integrative bargaining is similar to

problem solving sessions in which both sides are trying to reach a mutually beneficial
alternative, i.e. a win-win situation. Both the employer & the union try to resolve the
conflict to the benefit of both parties. Both sides share information about their interests and
concerns and they create a list of possible solutions to best meet everyone’s needs.

iii) Productivity Bargaining: A form of collective bargaining leading to a

productivity agreement in which management offers a pay raise in exchange for
alterations to employee working practices designed to increase productivity.
Productivity bargaining has been described as "an agreement in which advantages of one
kind or another, such as higher wages or increased leisure, are given to workers in return for
agreement on their part to accept changes in working practices or in methods or in
organization of work which will lead to more efficient working.
iv) Composite Bargaining: Workers believed that productivity bargaining
agreements increased their workloads. Rationalization, introduction of new technology,
tight productivity norms have added to this burden and made the life of a worker somewhat
uneasy. As an answer to such problems, labour has come in favour of composite
bargaining. In this method, labour bargains for wages as usual, but goes a step further
demanding equity in matters relating to work norms, employment levels, manning
standards and environmental hazards etc.

4) PROCESS OF COLLECTIVE BARGAINING:

The collective bargaining process involves five steps:
i) Prepare: This phase involves composition of a negotiation team.
ii) Discuss: Both parties decide the rules that will guide the negotiations.
iii) Propose: It involves the initial opening statements and the possible options that exist
to resolve them.
iv) Bargain: Negotiations are easy if a problem solving attitude is adopted. This
stage comprises the time when „what ifs‟ and „supposes‟ are set forth and the drafting of
agreements take place.
v) Settlement: This stage is described as consisting of effective joint implementation of
the agreement through shared visions, strategic planning and negotiated change.

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5) Advantages of Collective Bargaining:

i) It is a voluntary process: Collective bargaining is a democratic method of regulating

the terms & conditions of employment. It is a voluntary process without any third
party intervention.
ii) Mutual understanding between the employers and workers: Collective bargaining
leads to mutual understanding between the employers and workers.
iii) Flexibility: Collective bargaining provides a flexible means of adjusting wages
& conditions of employment to changes in economic, social, technological &
political environment.
iv) Systematic: Under collective bargaining, basic standards are fixed and every worker
knows that he cannot be required to work under conditions less favourable than those
stipulated in the agreement.
v) Better implementation of decisions: Collective bargaining facilitates
better implementation of decisions due to the direct involvement of both the parties.
Parties know that the decisions are their own & nobody has imposed them.

6) Limitations of Collective Bargaining:

i) No performance based wages: Since wages of the workers are pre decided under
collective bargaining, hence there are no performance based wages.
ii) lack of employee participation in bargaining: Indian Labour owing mostly to
ignorance or illiteracy is not capacitated with the responsibility to sit and discuss in
the course of Collective bargaining.
iii) Affects environment: Collective bargaining lacks representation of the public interest
at the bargaining table. When unions and companies agree on wage increase, it might cause
rise in price; then the consumer will have to shoulder the full burden of their agreement.
iv) Economical problems: Collective bargaining leads to wage drift. Wage drift leads
to higher wage costs for employers and higher inflation within the economy, which in turn
leads to higher interest rates and lower investment.
7) Role of Government in Collective Bargaining:

The following are the role of government in collective bargaining:

1. The government by becoming a third party to the collective bargaining could give
sufficient support and strength to the parties.
2. The government will be an impartial observer.
3. The government acts as the best counselling agent to persuade both the parties to come
to terms.
4. Just like referee in a match, the government can point out the mistakes committed by
the parties to the collective bargaining and solve the problems.
5. It may determine employment conditions by law, for example, through setting the
minimum wages, holidays etc.
6. It may provide some benefits directly, for example, pensions.
7. Every aspect of discussion that takes place between the parties will become transparent
and the government could record the final conclusions reached by discussion

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 INDUSTRIAL RELATIONS (U8BA6001)

Participative management/ Workers Participation in Management (WPM):

8) Meaning Participative management/ Workers Participation in Management
(WPM): Participative management offers all employees opportunities to contribute to
workplace policies and decisions that achieve business goals while promoting career
satisfaction.
Participative (or participatory) management, otherwise known as employee involvement
or participative decision making, encourages the involvement of stakeholders at all levels
of an organization in the analysis of problems, development of strategies, and
implementation of solutions. Employees are invited to share in the decision-making
process of the firm by participating in activities such as setting goals, determining
work schedules, and making suggestions.

9) Features of Participation/ Participative management/ Workers Participation

in Management (WPM)::
i) Provides higher status to employees: Employees are given a chance to participate in
the decision making process of the organization. This empowers the employees.
ii) Provides psychological satisfaction to employees: Employees are allowed to express
their views and their views are given due consideration. Management even frames some
policies according to their expectations.
iii) Universally recognized concept: Participative Management is followed and practiced
in many countries.
iv) Brings employees and management closer: Participative Management
facilitates meaningful communication and ensures cordial relations.
v) Beneficial to both parties: Participative Management is beneficial to both parties;
organization and employees. Through participative management, both the parties are satisfied.

10) Scope of Participative management/ Workers Participation in Management

(WPM): The scope of workers’ involvement in managerial decision-making may extend to
i) social, ii) economic/ financial and iii) personnel decision making depending upon the
requirements of the organization.
i) Social Decision-Making: It refers to employee involvement in decision making
regarding hours of work, rules and regulations at workplace, welfare measures,
workers’ safety, employee welfare, health and sanitation. In this category, employees have a
say in decisions in these areas. They may take an advantage of their liberty and
sometimes, can dominate the management. Here the concept of bounded or restricted
participation can work well.
ii) Economic/Financial Decision-Making: It includes involvement of employees on
various financial or economic aspects such as the methods of manufacturing, cost cutting,
automation, shut-down, mergers and acquisition and lay-offs. Inviting ideas from
employees on various issues like how to cut down the operating cost can work wonders.
iii) Personnel Decision-Making: The employees’ participation in personnel decision-
making refers to their involvement in various management processes including
recruitment and selection, work distribution, promotions, demotions and transfers,
grievance handling, settlements, voluntary retirement schemes and so on. Participation
of employees in these processes can safeguard their interests and motivate them to work
hard for the betterment of self as well as the organization.

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11) Objectives / Advantages of Participative management/ Workers Participation

in Management (WPM):

(i)To Make Best Use of Human Capital: Participative management does not
restrict organizations to exploit only physical capital of employees. Rather it makes the
best use of human intellectual and emotional capital. It gives employees an opportunity to
contribute their ideas and suggestions to improve business processes and create a better
working environment.
ii) To Meet the Psychological Needs of Employees: When employees participate in
decision making process, it gives them a psychological satisfaction. It is a simple force that
drives them to improve their performance, create a proper channel of communication and
find practical solutions to design better organizational processes.
iii) To Retain the Best Talent: Participatory management is one of the most
effective strategies to retain the best talent in the industry. It gives employees a sense
of pride to participate in organizational decision making process. Once they are valued by
their seniors, they stick to the organization and become management’s partners in meeting
specific goals and achieving success.
iv) To Increase Industrial Productivity: In today’s competitive world, motivation,
job security and high pay packages are not enough to increase industrial productivity.
Ladership, flexibility, delegation of authority, industrial democracy and
employee participation in decision making are important to increase annual turnover of any
organization.
v) To maintain Industrial Peace and Harmony: when employees participate in
decision making process, he will feel pride. It leads to maintain good relationship between
employees and employers. When there is cordial relationship among employees and
employers then there will be Industrial peace and harmony
vi) To Maintain a Proper Flow of Communication: Two-way communication plays
an important role in the success of any organization. Employee participation in decision
making ensures proper flow of communication in the organization. Everyone contributes
their best and tries to strengthen the organization by contributing their best to improve
business processes.

12) Methods/forms of Participative management/ Workers Participation in

Management (WPM):
The following are the forms of workers participative in management:
1) Suggestion method: Participation of workers can take place through suggestion method.
 Under this method workers are invited and encouraged to offer suggestions
for improving the working of the enterprise.
 A suggestion box is installed and any worker can write his suggestions and drop
them in the box.
 Periodically all the suggestions are scrutinized by the suggestion committee
or suggestion screening committee.
 The committee is constituted by equal representation from the management and
the workers.
 The committee screens various suggestions received from the workers.
Good suggestions are accepted for implementation and suitable awards are given to the
concerned workers.
 Suggestion schemes encourage workers’ interest in the functioning of an enterprise

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2) Works committee:
 Under the Industrial Disputes Act, 1947, every establishment employing 100 or more
workers is required to constitute a works committee. Such a committee consists of equal
number of representatives from the employer and the employees.
 The main purpose of works committee is to maintain good relations between the
employer and the employees.
Functions of works committee: Works committee deals with matters of day-to-day
functioning at the shop floor level. Works committees are concerned with:
 Safety measures, accident prevention mechanisms etc.
 Conditions of work: such as ventilation, lighting and sanitation.
 Amenities: such as drinking water, canteens, dining rooms, medical and health services 
Educational and recreational activities.

3) Joint Management Councils: Under this system Joint Management Councils are
constituted at the plant level.
 These councils were setup as early as 1958.
 There should be at least 500 employees working in an Industry to start joint
management council
 The objective of joint management council is to maintain good relations between the
employer and the employees.
 These councils consist of equal number of representatives of the employers and
employees.
 The council discusses various matters relating to the working of the industry.
 This council is entrusted with the responsibility of administering welfare measures,
supervision of safety and health schemes, scheduling of working hours, rewards for
suggestions etc.
 Wages, bonus, personal problems of the workers are outside the scope of Joint
management councils.
 The council is to take up issues related to accident prevention, management of canteens, water,
meals, revision of work rules, absenteeism, indiscipline etc.
4) Work directors:
 Under this method, one or two representatives of workers are nominated or elected to the
Board of Directors
 This is the full-fledged and highest form of workers’ participation in management. The basic
idea behind this method is that the representation of workers at the top- level would
usher Industrial Democracy, congenial employee-employer relations and safeguard the
workers’ interests
5) Co-partnership:
 Co-partnership involves employees’ participation in the share capital of a company in which
they are employed.
 By virtue of their being shareholders, they have the right to participate in the
management of the company. Shares of the company can be acquired by workers
making cash payment or by way of stock options scheme.

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 INDUSTRIAL RELATIONS (U8BA6001)

Unit-V-Indian Factories Act, 1948

1) Meaning of factory: Factory means any premises including the precincts thereof:
(i)Whereon 10 or more workers are working or were working on any day of the
preceding 12months in any part of which a manufacturing process is being carried on
with the aid of power.
(ii)Whereon 20 or more workers are working or were working on any day of the
preceding 12months in any part of which a manufacturing process is being carried on
without the aid of power.

2) Objectives of Indian Factories Act, 1948:

Objectives of Indian Factories Act, 1948 are as follows:

i) To improve Health, Safety and Welfare of the workmen.

ii) To regulate by imposing restriction as to hours of work including rest and
provisions for availing of leave.
iii) To make stringent provisions as regards employment of women and young
persons and duration of their work.

3) What is manufacturing process?

Manufacturing/production process consist of conversion of raw-materials in to semi-

finished goods and conversion of semi-finished goods in to finished goods.

4) What do you mean by power?

Power means mechanical or electrical energy transmitted as a step or aid to carry out
manufacturing process and it is not the energy which is generated by human or animal agency.

5) Who is a worker?

A worker is a person who is engaged to perform work under a contract of service. Contract
of service represents a relationship formed between an employer and employee but in the
context of the act.

6) Who is an occupier?

Any person who has ultimate control and management over the affairs of the factory will
be deemed to be an occupier.

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7) Discuss briefly Health, Safety and welfare measures adopted under the factories act
1948 (or) What are the provisions of Indian factories act 1948 regarding Health, Safety
and welfare measures of the workers?

I) Provisions of Indian factories act 1948 regarding Health (sec 11 to 20) 1.

Cleanliness[sec.11]
 The working conditions should be clean and safe.
 Clean the floor at least once a week by washing, or by some effective method.
 Effective means of drainage shall be provided.
 White wash every 14 weeks
 Paint / varnish every 5 years
2. Disposal of wastes and effluents [sec.12]
 There should be proper arrangements or disposal of wastes and effluents.
 Follow state govt. rules…
3. Ventilation & Temperature [sec.13]
 Proper level of ventilation temperature and humidity must be maintained.
 Make provisions for reducing excess heat.
4. Dust and fume [sec.14]
 Effective measures should be taken to prevent inhalation or accumulation of dust & fume.
 If any exhaust appliance is necessary for, it shall be applied as near as possible to the point
of origin of the dust, fume or other impurity.
5. Artificial Humidification [sec.15]
 Factories in which the humidity of the air is artificially increased (like in textile units), keep
it in limits.
 The water used for artificial humidification to be clean. 6.
Overcrowding [Sec.16]
 14.2 cubic metres space per worker. While calculating this space, space above the
worker beyond 4.2 meters will not be taken into account.
 Notice specifying the maximum number of workers, which can be employed in any work
room shall be displayed in the premises.
7. Lighting[Sec17]
 Sufficient & suitable lighting in every part of factory. There should natural lighting as far as
possible.
 All glazed windows and skylights used for the lighting of the workroom shall be kept clean.
 Formation of shadows to such an extent as to cause eye-strain or the risk of accident to any
worker shall be prevented.
8. Drinking water[Sec.18]
 There should be drinking water (wholesome water)
 Drinking points to be marked as drinking water. They should be at least 6 meters away from
wash room/urinal/ latrine/spittoons.
 250 workers are working, then have cool water facility also.
9. Latrines and Urinals[Sec.19]
 There should be separate – for male and female.

 Proper cleaning should be there.

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T. HABEEBUR RAHMAN MBA.,M.Phil.,Ph.D | Asst.Prof.of Business Administration, Islamiah college (Autonomous)-Vaniyambadi
 INDUSTRIAL RELATIONS (U8BA6001)

10. Spittoons[Sec.20]
 There should be sufficient number of spittoons.
 No person shall spit within the premises of a factory except in the Spittoons provided for the
purpose
 Whoever spits in contravention shall be punishable with fine not exceeding five rupees

II) Provisions of Indian factories act 1948 regarding Safety (sec 21 to 41)
1. Fencing of Machinery [Sec.21]
 Every dangerous parts must be securely fenced.
 The State Government may by rules prescribe such further precautions.
2. Machines in motions [Sec.22]
 Examination of machinery in motion only by a specially trained adult male worker wearing
tight fitting clothing.
 No women or child should be allowed to work.
3. Employment of young persons on dangerous machines [Sec.23]
 No young person should be allowed to work on dangerous machines (unless he has been
trained, and is under supervision).
4. Striking gears[Sec.24]
 There should be suitable striking gears etc. to switch off the power, so that if there is any
emergency, problem can be solved
5. Self-acting machines[Sec.25]
 Make sure that no person should walk in a space within 45 cm from any fixed structure which is
not a part of machine.
6. Casing of new machines[Sec.26]
 All machinery driven by power & installed should be so sunk, encased or otherwise
effectively guarded as to prevent danger.
7. Cotton openers[Sec.27]
 No women and children are allowed to work on cotton openers.
8. Hoists and lifts[Sec.28]
 Every hoist and lift should be in good condition, and properly checked.
 The maximum load it can carry – must be clearly mentioned.
 The gates should be locked by interlocking / safe method (it should not open in
between).
9. Lifting machines, chains, ropes & lifting tackles[Sec.29]
 Cranes & lifting machines, etc. to be of good construction & to be examined once in every 12
month.
 Cranes and lifting machines not to be loaded beyond safe working load
10. Revolving machines[Sec.30]
 Maximum safe speed must be mentioned for each machine.
 Speed indicated in notices should not to be exceeded.
11. Pressure plant[Sec.31]
 There should be safe working pressure on pressure plants.
 Effective measures should be taken to ensure that the safe working pressure is not
exceeded.
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T. HABEEBUR RAHMAN MBA.,M.Phil.,Ph.D | Asst.Prof.of Business Administration, Islamiah college (Autonomous)-Vaniyambadi
 INDUSTRIAL RELATIONS (U8BA6001)

12. Floors, Stairs etc.[Sec.32]

 All floors, steps, stairs, passages & gangways should be of sound construction & properly
mentioned.
13. Pits, sumps, openings in floors etc. [Sec.33]
 Pits, sumps etc. should be securely covered or fenced.
14. Excessive weights [Sec.34]
 No person should be employed to hold more weight than the person can hold.
15. Protection of eyes [Sec.35]
 Provide goggles if workers have to work on something stretching to the eyes.
16. Dangerous fumes etc [Sec.36]
 Prohibited to employ workers in places where dangerous gas / fume is present.
 Practicable measures should be taken for removal of gas, fume, etc.
17. Explosive or inflammable dust, gas, etc. [Sec.37]
 Take all measures for safety and to prevent explosion on ignition of gas, fume etc.
18. Precautions in case of fire [Sec.38]
 There should be separate exit for cases of fire.
 There should be facilities for extinguishing fire.
19. Role of inspector [Sec.39,40]
 Section 39, 40 and 40A talk about various roles that have been assigned to the inspector.
 He may call for details regarding building, machines etc.
20. Safety officer [Sec.40B]
 If 1000 or more workers are employed, appoint a separate safety officer.
21. Power to make rules to supplement the above provisions [Sec.41]
 The State Government may make rules requiring the provision in any factory of such further
devices & measures for securing the safety of persons employed therein as it may deem
necessary.
III) Provisions of Indian factories act 1948 regarding Welfare (sec 42 to 50)
1. Washing facilities[Sec.42
 There should be washing facilities in every factory for the workers–separate for male and
female workers-properly screened.
 Conveniently accessible and shall be kept clean.
2. Facility for storing and drying of clothing [Sec.43]
 There should be facility so that worker can place their cloth not worn during the
manufacturing process.
 There should be facility so that worker can dry their wet cloth.
3. Facilities for sitting[Sec.44]
 Suitable arrangements for sitting shall be provided and maintained for all workers obliged
to work in a standing position
 If the worker can do the work by sitting, - there should be sitting arrangement for the worker.
4. First-aid appliances[Sec.45]
 There should be at least 1 first aid box for every 150 workers.
 It should have the prescribed contents.
 A responsible person should hold a certificate on first aid treatment.
 An ambulance room should be there if the number of workers is more than 500.
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T. HABEEBUR RAHMAN MBA.,M.Phil.,Ph.D | Asst.Prof.of Business Administration, Islamiah college (Autonomous)-Vaniyambadi
 INDUSTRIAL RELATIONS (U8BA6001)
5. Canteen[sec.46]
 If the number of workers is more than 250, the govt. may make rules for canteen.
 The govt. may make rules regarding foodstuff, construction, furniture, equipment of the
canteen.
6. Shelter, rest room, lunch room[Sec.47]
 When 150 workers are working, there should be rest rooms, lunch room, etc.
 Such places should be having drinking water facilities etc.
7. Creches [Sec.48]
 If the number of women workers is more than 30, there should be the creches.
 It should be sufficiently lighted, ventilated & to be under the charge of trained women
8. Welfare Officer[Sec.49]
 If the number of workers is 500 or more, there should be a welfare officer to look after the
welfare of the workers.

8) Explain briefly about Working hours Of Adults in a factory?

 Sec.51-Weekly hours not more than 48 hours a week
 Sec.52-First day of the week i.e. Sunday shall be a weekly holiday
 Sec.53-Compensatory holidays: Where a weekly holiday is denied he shall be
allowed to avail the compensatory holiday within a month.
 Sec.54-Daily working hours- no adult worker shall be allowed to work in a factory for more
than nine hours in any day
 Sec.55-Intervals for rest-no worker shall work for more than 5 hours before he has had
an interval for rest of at least 1/2 an hour. Inspector may increase it up to six hours.

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T. HABEEBUR RAHMAN MBA.,M.Phil.,Ph.D | Asst.Prof.of Business Administration, Islamiah college (Autonomous)-Vaniyambadi