UNIT-V Managing Industrial Relations
UNIT-5 MANAGING INDUSTRIAL RELATIONS
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5.1 Trade Unions
an organized association of workers in a trade, group of trades, or profession, formed
to protect the workers interest
The trade union, through its leadership, bargains with the employer on behalf of union
members and negotiates labor contracts (collective bargaining) with employers. The
most common purpose of these associations or unions is "maintaining or improving
the conditions of their employment“
Definition:
Dale Yoder defined a trade union means “an association of employees, formed and
maintained for the specific purpose of protecting and advancing the member’s economic
interests in connection with their daily work”.
Indian Trade Union Act, 1926, defined trade union as “any combination, whether
temporary or permanent, formed primarily for the purpose of regulating the relations between
workmen and employers or between workmen and workmen, between employees and
employer’s
Types of Trade Unions:
Industrial Unions: members work in the same industry eg banking (IBOA) or
nursing,(INO Irish Nurses Organisation)
Craft Unions: members belong to a particular trade and have served an
apprenticeship eg Brick and Stonelayers Trade union
White Collar Unions: members are usually professional eg teachers unions ASTI,
TUI, INTO
General Unions: members come from a variety of occupations eg SIPTU (Services,
Industrial, Professional and Technical Union)
Why do workers join trade unions/ Need for trade unions
Securing permanent employment with higher salary and benefits in order to have
economic security.
To improve their bargaining power and balance it with that of the management.
To ventilate the worker’s grievances to the management.
To inform worker’s views, aims, ideas and dissatisfaction/frustrations to the
management.
UNIT-V Managing Industrial Relations
To secure protection from unexpected economic needs like illness, accidents, injury
etc. 2
To satisfy their social needs, psychological needs, needs for belongingness
To secure power.
Functions of Trade Unions
The basic function of unions are to protect and promote the interest of the workers
and conditions of their payment.
The functions of trade unions can be divided into 5 categories.
1. Militant or intra-mural functions
2. Fraternal or extra-mural functions
3. Social functions
4.Political functions
5.Ancillary functions
a. Communication b. Welfare activities c. Education d. Research.
1. Militant Or Intra-Mural Functions :These functions include protecting the
worker’s interests. i.e.,Hike in wages ,Providing more benefits, Job security through
collective bargaining and direct action such as strikes, gheraos etc.,
2. Fraternal functions :These includes
To take up welfare measures for improving the morale of workers
To generate self confidence among workers
To encourage sincerity and discipline among workers
To provide opportunities for promotion and growth
To protect women workers against discrimination
At present there are twelve Central Trade Union Organizations in India:
All India Trade Union Congress (AITUC)
Bharatiya Mazdoor Sangh (BMS)
Centre of Indian Trade Unions (CITU)
Hind Mazdoor Kisan Panchayat (HMKP)
Hind Mazdoor Sabha (HMS)
Indian Federation of Free Trade Unions (IFFTU)
Indian National Trade Union Congress (INTUC)
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National Front of Indian Trade Unions (NFITU)
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National Labor Organization (NLO)
Trade Unions Co-ordination Centre (TUCC)
United Trade Union Congress (UTUC) and
United Trade Union Congress - Lenin Sarani (UTUC - LS)
The Indian National Trade Union Congress:
The INTUC came into existence on May 4,1948 as a result of the resolution passed by the
Central Board of Hindustan Mazdoor Sevak Sangh (HMSS) on 17 November, 1947.
A conference was held under the chairmanship of its president Sardar Vallabhbhai
Patel, which was inaugurated by J. B. Kripalani on May 3, 1947 and was attended by
J.L.Nehru, Jagjiwan Ram, R.S.Shukla, Hare Krishna Mehtab, Kamala
Devi Chattopadhyaya, Aruna Asaf Ali, Ashok Mehta and S.C.Banerjee (the grand old
man of labour in Bengal)
Objectives:
(i) to establish an order of society which is free from hindrances to an all round
development of its members
(ii) to place industry under national ownership
(iii) to secure increasing association of members in the administration of industry
(iv) to organize society in such a manner as to ensure full employment
(v) to promote social, civic and political interest of workers, etc
All-India Trade Union Congress (AITUC)
It was established as a result of a resolution passed by the organized workers of
Bombay in a conference, which was attended by Motilal Nehru, M.A.Jinnah, Annie
Besant, and Patel, on 31st October, 1920. Its first president was Lala Lajpat Rai
Objectives:
(i) to establish a socialist state in India
(ii) to socialise and nationalise means of production, distribution and exchange
(iii) to ameliorate the economic and social conditions of the working class
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Types of Industrial conflicts
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1.Strikes
2. Lockouts
Stay away strike
Stay-in strike or sit-down strike
Tools down, pen down or mouth shut strike.
Token or Protest strike
Lightening or Wild Cat Strike
Go Slow Strike
Work to rule/work to designation
Hunger strike
Bandh/General Strike
Political strike
Particular Strike
A strike is a very powerful weapon used by trade unions and other labor associations
to get their demands accepted. It generally involves quitting of work by a group of
workers for the purpose of bringing the pressure on their employer so that their
demands get accepted. When workers collectively cease to work in a particular
industry, they are said to be on strike.
A lockout is a work stoppage in which an employer prevents employees from
working. It is declared by employers to put pressure on their workers. This is different
from a strike, in which employees refuse to work. Thus, a lockout is employers’
weapon while a strike is raised on part of employees.
PICKETING
When workers are discouraged from work by stationing certain men at the factory
gates, such a step is known as picketing.
Pickets are workers who are on strike that stand at the entrance to their workplace.
It is basically a method of drawing public attention towards the fact that there is a
dispute between the management and employees.
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The purpose of picketing is:
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to stop or persuade workers not to go to work
to tell the public about the strike
to persuade workers to take their union's side
Gherao:
Gherao in Hindi means to surround
It denotes a collective action initiated by a group of workers under which members of
the management are prohibited from leaving the industrial establishment premises by
workers who block the exit gates by forming human barricades.
The workers may gherao the members of the management by blocking their exits and
forcing them to stay inside their cabins.
The main object of gherao is to inflict physical and mental torture to the person being
gheraoed and hence this weapon disturbs the industrial peace to a great extent.
5.2 Worker’s participation in management(WPM):
Worker’s participation is a system where workers and management share important
information with each other and participate in decision taking.
Definition:
“Better participation and greater responsibility in the decision making process on the part of
general workers would perhaps tend to develop in them organizational loyalty, confidence,
trust, favorable attitude towards supervisors, and a sense of involvement in the organization”.
G.D.H. Cole
Features of WPM:
Formal involvement of members
Participation in decision making
Application of upward control
Joint and continuous process
Objectives of WPM:
Greater employee satisfaction
Greater responsibility
Mutual cooperation
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Establishing democracy
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Developing an effective communication system
Facilitating changes
Workers Participation in Management in India
The workers participation in management is not new even though it got
encouragement only after independence .
In 1920 Mahatma Gandhi , observed “Employees should not regard themselves as
sole owners of mills and factories of which they may be legal owners. They should
regard themselves trustees.
In India workers participation has been introduced in four forms :
1. The Workers Committees
2. Joint Management Councils
3. Shop Councils
4. Joint Councils
Works Committees
The first labour management association started in 1947 with the passing Industrial
Disputes Act.
The Act provides that in the case of any industrial establishment in which 100 or more
workers are employed on any day in the preceding twelve months, the appropriate
government may be general or social order require
The committee was expected to discuss matters of common interest and to maintain
cordial relations between workers and employees.
Joint Management Councils
Joint Management council was a voluntary body.
Its introduction was left solely to the discretion of employers and employees.
These councils will consist of equal number of representation of workers and
management will not exceed twelve.
Objectives of JMC
Promoting cordial relations between management and workers
Developing understanding and trust between them
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Securing better welfare and other facilities
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Training them to understand and share the responsibility
Shop Councils and Joint Councils:
A new scheme for workers participation in management was adopted in october 1975.
The scheme was voluntary in nature.
It covered all manufacturing and mining industries employing 500 or more persons.
The scheme provided for setting up of shops councils at the plant level.
Shop Councils
There will be a shop for each department or one council for more departments
considering the number of workers employed there.
The representatives of employees will be nominated by the management and must be
from the unit concerned.
The number of members in the council may be decided by management in
Consultation with recognised unions.
All decisions of the council must be based on consensus but not by voting.
Management has to implement the decisions within one month.
The term of shop council will be two years.
The chairman of the council will be the nominee of management and vice-chairman
shall be elected by working members amongst themselves.
Joint Councils
There was to be a joint council for every unit employing 500 or more workers.
Features :-
The members of the council must be actually engaged in the unit.
The term of the council will be two years.
The chief executive of the unit will be the chairman of and vice-chairman will be
nominated by worker members.
It shall meet at least once in a quarter.
Significance of WPM
Increase in productivity and performance.
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Improves employee involvement and participation.
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Better workforce flexibility.
Promotes cordiality in industrial relations.
Establishes goodwill and public image.
5.3 Collective Bargaining:
Definition:
Collective bargaining is a type of negotiation used by employees to work with their
employers.
During a collective bargaining period, workers' representatives approach the employer
and attempt to negotiate a contract which both sides can agree with.
Typical issues covered in a labor contract are hours, wages, benefits, working
conditions, and the rules of the workplace.
Once both sides have reached a contract that they find agreeable, it is signed and kept
in place for a set period of time, most commonly three years.
The final contract is called a collective bargaining agreement, to reflect the fact
that it is the result of a collective bargaining effort.
The parties often refer to the result of negotiation as a Collective Bargaining
Agreement (CBA) / as a Collective Employment Agreement (CEA).
Collective Bargaining Process
In many companies, agreements have a fixed time scale and a collective bargaining
process will review the procedural agreement when negotiations take place on pay
and conditions of employment.
(1) Prepare:
This phase involves composition of a negotiation team.
The negotiation team should consist of representatives of both the parties with
adequate knowledge and skills for negotiation.
In this phase both the employer’s representatives and the union examine their own
situation in order to develop the issues that they believe will be most important.
A correct understanding of the main issues to be covered and intimate knowledge of
operations, working conditions production norms and other relevant conditions is
required.
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(2) Discuss :
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The parties decide the ground rules that will guide the negotiations.
An environment of mutual trust and understanding is also created so that the
collective bargaining agreement would be reached.
(3) Propose:
It involves the initial opening statements and the possible options that exist to resolve
them. In a word, this phase could be described as ‘brainstorming’. The exchange of
messages takes place and opinion of both the parties is sought.
(4) Bargain:
Negotiations are easy if a problem solving attitude is adopted.
This stage comprises the time when ‘what ifs’ and ‘supposals’ are set forth and the
drafting of agreements take place.
(5)Settlement:
Once the parties are through with the bargaining process, a consensual agreement is
reached upon wherein both the parties agree to a common decision regarding the
problem or the issue.
This stage is described as consisting of effective joint implementation of the
agreement through shared visions, strategic planning and negotiated change.
Forms of Bargaining Structures
One company dealing with a single union
Several companies dealing with single union
Several unions dealing with a single company
Several companies dealing with several unions
5.4 Grievances:
Meaning & Definition:
A grievances is a feeling of discontent or dissatisfaction or distress or suffering
among workers. When employee feels that injustice has been done to them it becomes
grievance.
“Any dissatisfaction or feeling of injustice in connection with one’s employment
situation that is brought to the notice of the management.”-Beach
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Features:
A grievance reflects dissatisfaction among workers concerning any aspect of the
organisation.
Dissatisfaction must arise out of employment only.
It may be out of real or imaginary causes.
A grievance arise only if employee feels that injustice has been done to him
Characteristics of Grievances:
Factual-: When employee feels that some of the benefits promised to him at the time
of appointment have not been given by the employer it becomes factual grievance.
Imaginary-: The employee feel that the organisation does not respond to his requests,
this is the case of an imaginary grievance.
Disguised-: The basic requirements of the employees may be attended but
psychological needs such as need for recoginition, affection, proper achievement may
not be taken care of. These cause disguised grievances.
Causes or Sources of Grievances:
Employment Conditions like wage rates etc.
Working Environment
Difference of opinion of management & employees
Supervision
Work Group
Miscelleanous
Steps for Grievance Handling :
Grievance sholud be clear so that it is easy to find solution.
Once the issue is clear all relevant facts should be collected,employee’s viewpoint &
supervisor’s reaction should be collected.
Before giving final decision the mgt.should see the reaction of both the parties on the
same decision in the past.
Decision is then conveyed to the concerned person.
Last step is to see whether employee is satisfied with decision.
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Methods to Anticipate Grievances:
Observations
Grievance Procedure
Exit Interview
Opinion Surveys
Gripe Boxes
Open Door Policy
5.5 Work Hazards and safety measures:
Creating a safe workplace
When we refer to hazards in relation to occupational safety and health the most commonly
used definition is ‘A Hazard is a potential source of harm or adverse health effect on a person
or persons’.
1. Providing and maintaining safe machines and systems of work for supported
employees
2. Organising the safe use of dangerous goods and hazardous chemicals Controlling
hazards such as dust, noise and fumes
3. Providing hygiene facilities such as toilets and change rooms
4. A safety tag used to tagout equipment.
Hygienic work practices:
1. Providing information on hazards to ensure all supported employees have a clear
understanding
2. Providing instruction, training and supervision to supported employees
3. Monitoring your work area and employee health
4. Maintaining information and records on health and safety
5. Supporting an injured supported employee’s return to work
5.6 Industrial Accidents
An industrial accident is an unexpected occurrence which interrupts the progress of work in
an industrial establishment”.
Causes of Accidents:
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1. Unsafe conditions(Work related causes): Improper equipment, Defective
equipment, unsafe storage, overloading, Inadequate safety devices, wrong and faulty 12
layout, bad location, insufficient light, improper ventilation, poor house keeping
The other work related causes of accidents are:
a. Job itself
b. Work schedules
c. Psychological climate of the work place
2. Unsafe Acts: Operating without authority ,Throwing materials on the floor
carelessly.Operating or working at unsafe levels of speed, either too fast or too slow.Making
safety devices inoperative by removing, adjusting, disconnecting them. Using equipment
unsafely,Lifting improperly,Cleaning , adjusting, oiling, repairing , moving a dangerous
equipment,Personal characteristics.
3. Other causes
These causes arise out of unsafe situational and climate conditions such as bad working
conditions, rough and slippery floors, excessive glare, heat, humidity, dust and fume, very
long hours of work, noise, carelessness in the handling of such inflammable materials such as
gasoline, solvents, oil and grease
Certain broad conclusions
1. Young, untrained and new workers generally sustain injuries more frequently than
older, trained and experienced employees.
2. Those addicted to alcoholism and drugs , and those who suffer from boredom and
fatigue , generally account for a higher rate of accidents.
3. Unmarried employees generally have more accidents than married employees
4. Accidents are more frequent during the night shift.
5. Woman employees have a better safety record than their male counterparts.
6. Workers who work under stress or who feel their jobs are threatened or insecure,
seem to have more accidents than those who do not.
Occupational Hazards and Risks
Occupational health hazards may be classified into
1. Chemical substances, such as carbon monoxide, carbon dioxide, nitrogen oxide, sulphur
dioxide, hydrocarbons, ozone, sulphuric acid, acetic cid, fumeric acid, tannic acid, limes and
alkalis cause injury when they are absorbed by the skin or when they are inhaled
Workers may suffer from respiratory diseases, skin diseases, allergy, heart disease, cancer
and neurological disorders.
UNIT-V Managing Industrial Relations
Gases, fumes an dust raised by grinding and crushing of stones or minerals may be inhaled by
workers cause a serious injury or even death. Coalminers often suffer from what is known as 13
“black lung” disease.
2. Biological hazards
Diseases which are caused by bacteria, fungi, viruses, insects, excessive drinking, allergies,
brain fever, emotional stresses and strains.
3. Environmental Hazards
It may include radiation, noise, vibrations, shocks and improper atmospheric conditions .It
may cause redness of eyes and pain, genetic disorders, cancer, sterility or even death.
4. Atmospheric Conditions: These are included such hazards as arising from
inadequate ventilation, improper lighting, to very high or very low temperature in the
work place. Inadequate ventilation and improper lighting impair vision, leading to the
inefficiency which results from imperfect visibility, headaches and eye strain. In hot
and moist conditions, heavy physical and mental work exhausts a worker. Excessive
heat may cause burns, heat strokes, heat cramp and increased accident rates.
