PMF23

MEASI INSTITUTE OF MANAGEMENT
CHENNAI-14
Approved by All India Council of Technical Education and
Affiliated to the University of Madras, ISO 9001:2015 Certified Institute
INDUSTRIAL AND LABOUR RELATIONS

COURSE MATERIAL
MI. Anees Fathima, Asst. Professor, MIM

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VISION & MISSION STATEMENTS
VISION;
 To emerge as the most preferred Business School with Global recognition by producing most
competent ethical managers, entrepreneurs and researchers through quality education.
MISSION;
 Knowledge through quality teaching learning process; To enable the students to meet the
challenges of the fast challenging global business environment through quality teaching learning
process.
 Managerial Competencies with Industry institute interface; To impart conceptual and
practical skills for meeting managerial competencies required in competitive environment with
the help of effective industry institute interface.
 Continuous Improvement with the state of art infrastructure facilities; To aid the students in
achieving their full potential by enhancing their learning experience with the state of art
infrastructure and facilities.
 Values and Ethics; To inculcate value based education through professional ethics, human values
and societal responsibilities.
PROGRAMME EDUCATIONAL OBJECTIVES (PEOs)

PEO 1; Placement; To equip the students with requisite knowledge skills and right attitude
necessary to get placed as efficient managers in corporate companies.
PEO 2; Entrepreneur; To create effective entrepreneurs by enhancing their critical thinking,
problem solving and decision-making skill.
PEO 3; Research and Development; To make sustained efforts for holistic development of the
students by encouraging them towards research and development.
PEO4; Contribution to Society; To produce proficient professionals with strong integrity to
contribute to society.
Program Outcome;
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PO1; Problem Solving Skill; Apply knowledge of management theories and practices to solve
business problems.
PO2; Decision Making Skill; Foster analytical and critical thinking abilities for data-based
decision making.
PO3; Ethical Value; Ability to develop value based leadership ability.
PO4; Communication Skill; Ability to understand, analyze and communicate global, economic,
legal and ethical aspects of business.
PO5; Individual and Leadership Skill; Ability to lead themselves and others in the achievement
of organizational goals, contributing effectively to a team environment.
PO6; Employability Skill; Foster and enhance employability skills through subject knowledge.
PO7; Entrepreneurial Skill; Equipped with skills and competencies to become an entrepreneur.
PO8; Contribution to community; Succeed in career endeavors and contribute significantly to

the community.

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Subject Subject Name L T P S C

Code
PMF23 INDUSTRIAL AND LABOUR RELATIONS 3 0 0 1 3
Course Objectives
C1 To familiarize the students to the basic concepts of Industrial Relations in order to aid
in understanding how an industry functions.
C2 To provide insights on Industrial Harmony and Conflicts.
C3 To throw light on LabourRelations, Joint consultation.
C4 To explicate on Trade Union, Problems and role of Indian Trade Unions.
C5 To elucidate on Collective Bargaining, Tripartite Machinery.
SYLLABUS
Unit. Details Hours
No.
Industrial Relations: The changing concepts of Industrial
Unit I relations- Factors affecting employee stability. Application on 9
Psychology to Industrial Relations. Codes of Conduct.
Industrial Harmony and Conflict: Harmonious relations in
industry- importance and means; cause of industrial disputes-
Machinery for settling of disputes- Negotiation- Conciliation-
Unit II Mediation- Arbitration and Adjudication- Strikes- Lock-outs- 9
Layout and Retrenchment codes of discipline- Grievance
procedure-Labour management co-operation; Worker’s
participation in management.
Labour Relations: Changing concept of management
labourrelations- Statute laws- Tripartite conventions- development
of the idea of social justice- limitation of management prerogatives
Unit III 9
increasing labour responsibility in productivity.
Joint Consultation; Principal types- Attitude of trade unions and
management- Joint consultation in India.
Trade Unions: Trade Unions and their growth- economic- social
and political conditions leading to the development of trade
unionism- Theories of trade unionism- Aim and objectives of trade
unions- Structure and governing of trade unions.
Unit IV Problems and Role of Indian Trade Unions; Recognition and 9
leadership- Finances and Membership- Compulsory versus free
membership- Political activities- Welfare- Legislation- Majority
and Minority unions- Social responsibilities- positive role in
economic and social development.
Collective Bargaining: Meaning- Scope- Subject matter and
parties- Methods and tactics- Administrations of collective
bargaining agreements- Fair and unfair labor practice.
Unit V 9
Tripartite Machinery; At the center and in the states- I.L.O. – Its
functions and role in labor movement – Industrial health and
safety- Industrial legislations.
TOTAL HOURS 45
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Reference Books
Bray, M. and Walsh, J., Industrial Relations; A Contemporary Approach, Tata McGraw
1.
Hill Education, 2011.
Monappa, Nambudri and Selvaraj, Industrial Relations and Labour Laws, 2nd Edition,
2.
Tata McGraw-Hill, 2012.
Sen, R., Industrial Relations; Text and Cases, 2nd Edition, Macmillan Publishers India,
3.
2009.
Sinha, S.I. and Sankar, P., Industrial Relations, Trade Unions and Labor Legislation,
4.
Pearson, 2003.
5. Sivarethinamohan, Industrial Relations and Labour Welfare, PHI Learning, 2010.
6. VenkataRatnam, C. S., Industrial Relations, Oxford University Press, 2006.
E-Sources
1. http://www.bvimsr.com/documents/publication/2009V1N1/16.pdf
https://www.researchgate.net/publication/260473548_Emerging_Trends_in_Employme
2.
nt_Relations_in_India
http://www.icmrindia.org/Short%20Case%20Studies/Human%20Resource%20Manage
3.
ment/CLHR048.htm
4. https://www.scribd.com/document/284767698/Lecture-Notes-of-Industrial-Relations
5. http://mbaexamnotes.com/industrial-relations-and-labour-laws.html
Assessment Tools Used
1. Assignments 6. Group Discussions
2. Internal Assessment Tests 7. Management games
3. Model Exam 8. Role play
4. Seminar 9. Simulation
5. Case studies 10. Synetics
Content Beyond Syllabus
1. Impact of Globalization &Information Technology on IR.
Role of Human Resource Development in Developing Industrial Relation- Industrial
2.
Relation Democracy, Industrial peace.
Disciplinary Action Communication – Suspension Orders, show cause, Notices, memo,
3.
charge sheet, warning, letter of termination & dismissal
4. Challenges of modern Industrial relations manager.
Additional Reference Books
1. Industrial &Labor Laws – S P Jain
2. Labor Laws for managers – B D Singh
3. Industrial &Labor Law- S.P. JainDhanpatrai& Co.
4. Industrial Relations – ArunMonappa
Collective Bargaining and Industrial -Kochan, T.A. & Katz Henry, Homewood,
5.
Illinois, Richard D Irish, 2nd edition, 1988.
Course Outcomes
Program
CO. No. On completion of this course successfully students will Outcomes
(PO)
C323.1 Familiarize the students to the basic concepts of Industrial Relations. PO4, PO6
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Possess knowledge on Industrial Harmony and Conflicts. PO1, PO2,

C323.2
PO3, PO5, PO6
C323.3 Have insights on Labor Relations, Joint Consultation. PO5, PO6
C323.4 Learn about Trade Union, Problems and role of Indian Trade Unions. PO6
Have better understanding on Collective Bargaining, Tripartite PO4, PO6
C323.5
Machinery.

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UNIT I - INDUSTRIAL RELATIONS

Industrial Relations: The changing concepts of Industrial relations- Factors affecting employee stability.
Application on Psychology to Industrial Relations. Codes of Conduct.
Industrial Relations:
Meaning
In the broad sense, industrial relations cover all such relationships that a business enterprise maintains
with various sections of the society such as workers, state, customers and public who come into its
contact.
In the narrow sense, it refers to all types of relationships between employer and employees, trade
union and management, works and union and between workers and workers. It also includes all sorts of
relationships at both formal and informal levels in the organization.
Definition:
The term ‘industrial relations’ has been variously defined. J.T. Dunlop defines industrial relations as “the
complex interrelations among managers, workers and agencies of the governments”. According to Dale
Yoder “industrial relations is the process of management dealing with one or more unions with a view to
negotiate and subsequently administer collective bargaining agreement or labour contract”.
CONCEPT OF INDUSTRIAL RELATIONS
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are)
engaged”. By “relations” we mean “the relationships that exist within the industry between the employer
and his workmen.”
The term industrial relations explain the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers within the organizational
settings. Industrial relations are basically the interactions between employers, employees and the
government, and the institutions and associations through which such interactions are mediated. The term
industrial relations have a broad as well as a narrow outlook. Originally, industrial relations were broadly
defined to include the relationships and interactions between employers and employees. From this
perspective, industrial relations covers all aspects of the employment relationship, including human
resource management, employee relations, and union-management (or labour) relations. Now its meaning
has become more specific and restricted.

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The relationships which arise at and out of the workplace generally include therelationships between
individual workers, the relationships between workers and their employer, the relationships between
employers, the relationships employers and workers have with the organizations formed to promote their

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respective interests, and the relations between those organizations, at all levels. Industrial Relations also
includes the processes through which these relationships are expressed (such as, collective bargaining,
workers’ participation in decision-making, and grievance and dispute settlement), and the management of
conflict between employers, workers and trade unions, when it arises.
Significance of Industrial Relations
Maintenance of harmonious industrials relations is on vital importance for the survival and growth of the
industrials enterprise. Good industrial relations result in increased efficiency and hence prosperity,
reduced turnover and other tangible benefits to the organization. The significance of industrial relations
can be summarized as below:
1. It establishes industrial democracy:Industrial relations means settling employees problems through
collective bargaining, mutual cooperation and mutual agreement amongst the parties i.e., management
and employees’ unions. This helps in establishing industrial democracy in the organization which
motivates them to contribute their best to the growth and prosperity of the organization.
2. It contributes to economic growth and development: Good industrial relations lead to increased
efficiency and hence higher productivity and income. This will result in economic development of the
economy.
3. It improves morale of the work force: Good industrial relations, built-in mutual cooperation and
common agreed approach motivate one to contribute one’s best, result in higher productivity and hence
income, give more job satisfaction and help improve the morale of the workers.
4. It ensures optimum use of scare resources: Good and harmonious industrial relations create a sense of
belongingness and group-cohesiveness among workers, and also a congenial environment resulting in
less industrial unrest, grievances and disputes. This will ensure optimum use of resources, both human
and materials, eliminating all types of wastage.
5. It discourages unfair practices on the part of both management and unions: Industrial relations involve
setting up machinery to solve problems confronted by management and employees through mutual
agreement to which both these parties are bound. This results in banning of the unfair practices being
used by employers or trade unions.
6. It prompts enactment of sound labour legislation: Industrial relations necessitate passing of certain
labour laws to protect and promote the welfare of labour and safeguard interests of all the parties against
unfair means or practices.
7. It facilitates change: Good industrial relations help in improvement of cooperation, team work,
performance and productivity and hence in taking full advantages of modern inventions, innovations and
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other scientific and technological advances. It helps the work force to adjust themselves to change easily
and quickly.

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Objectives of Industrial Relations

1. To bring better understanding and cooperation between employers and workers.
2. To establish a proper channel of communication between workers and management.
3. To ensure constructive contribution of trade unions.
4. To avoid industrial conflicts and to maintain harmonious relations.
5. To safeguard the interest of workers and the management.
6. To work in the direction of establishing and maintaining industrial democracy.
7. To ensure workers’ participation in decision-making.
8. To increase the morale and discipline of workers.
9. To ensure better working conditions, living conditions and reasonable wages.
10. To develop employees to adapt themselves for technological, social and economic changes.
11. To make positive contributions for the economic development of the country.
Scope
The scope of industrial relations includes all aspects of relationships such as bringing cordial and healthy
labour management relations, creating industrial peace and developing industrial democracy.
The cordial and healthy labour management relations could be brought in-
• by safeguarding the interest of the workers;
• by fixing reasonable wages;
• by providing good working conditions;
• by providing other social security measures;
• by maintaining healthy trade unions;
• by collective bargaining.
The industrial peace could be attained –

• by setting industrial disputes through mutual understanding and agreement;
• by evolving various legal measure and setting up various machineries such as Works Committee, Boards
of Conciliation, Labour Courts etc.
The industrial democracy could be achieved –
• by allowing workers to take part in management; and
• by recognition of human rights.

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Approaches to Industrial Relations
Industrial conflicts are the results of several socio-economic, psychological and political factors. Various
lines of thoughts have been expressed and approaches used to explain his complex phenomenon. One
observer has stated, “An economist tries to interpret industrial conflict in terms of impersonal markets
forces and laws of supply demand. To a politician, industrial conflict is a war of different ideologies –
perhaps a class-war. To a psychologist, industrial conflict means the conflicting interests, aspirations,
goals, motives and perceptions of different groups of individuals, operating within and reacting to a given
socio-economic and political environment”.
Psychological approach: According to psychologists, problems of industrial relations have their origin in
the perceptions of the management, unions, rank and file workers. These perceptions may be the perceptions
of persons, of situations or of issues involved in the conflict. The perceptions of situations and issues differ
because the same position may appear entirely different to different parties. The perceptions of unions and of
the management of the same issues may be widely different and, hence, clashes may arise between the two
parties. Other factors also influence perception and may bring about clashes.
Sociological approach:Industry is a social world in miniature. The management goals, workers’ attitudes,
perception of change in industry, are all, in turn, decided by broad social factors like the culture of the
institutions, customs, structural changes, status-symbols, rationality, acceptance or resistance to change,
tolerance etc. Industry is, thus inseparable from the society in which it functions. Through the main function
of an industry is economic, its social consequences are also important such as urbanization, social mobility,
housing and transport problem in industrial areas, disintegration of family structure, stress and strain, etc. As
industries develop, a new industrial-cum-social pattern emerges, which provides general new relationships,
institutions and behavioural pattern and new techniques of handling human resources. These do influence the
development of industrial relations.
Human relations approach: Human resources are made up of living human beings. They want freedom of
speech, of thought of expression, of movement, etc. When employers treat them as inanimate objects,
encroach on their expectations, throat-cuts, conflicts and tensions arise. In fact major problems in industrial
relations arise out of a tension which is created because of the employer’s pressures and workers’ reactions,
protests and resistance to these pressures through protective mechanisms in the form of workers’
organization, associations and trade unions.
Factors Affecting Industrial Relations

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External Factors
The history of industrial relations goes back to when workers felt that employer actions or market conditions
caused them to have an unequal share of power in their relationship with their employer. Workers turned to
collective bargaining in the public and private sectors to get better wages and working conditions from their
employer's representatives. Today, there are many laws ensuring that U.S. workers
receive a minimum wage and safe working environments. More labor regulation later decreased the need for
collective bargaining.
Internal Factors
Another way to look at industrial relations is the impact of the company's human resources practices. These
might include low productivity, absenteeism, high employee turnover, low job security, unsatisfactory or
unsafe working environments, failure to recognize performance in pay plans, and lack of motivation,
according to the International Labour Organisation. Small-business owners can address these problems by
updating their HR practices and firing managers who create these problems. They can also address employee
motivation, including rolling out more opportunities for training and advancement, pay for performance,
performance incentives and worker recognition programs.
Work Climate
You can set up the most research-based HR policies in your firm, but employees will still judge the company
by how it feels to work there. Look at how your leadership style affects employees and how your managers
manage employees. If there are problems with worker performance among many workers or other indicators
such as high turnover or absenteeism, you need to study what's causing those conditions. Start by introducing
a new HR goal, such as introducing flexibility and participation into your management model; give managers
and workers more authority to decide how to accomplish their goals.
Employee Attitudes
You can use an employee survey to study the sources of conflict or dissatisfaction in employees. They will
have a wide range of attitudes about working for you. It's important to determine if they respect you as a
leader and care about the company. These are signs of good employee relations and will usually produce
better performance. Employees who love the company can often perform well even when faced with tough
economic conditions, which may give them a bigger workload and fewer pay increases.
Application on psychology to industrial relations:

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Industrial-Organizational(called as I-O) Psychologists recognize the interdependence of individuals,

organizations, and society, and they recognize the impact of factors such as increasing government
influences, growing consumer awareness, skill shortages, and the changing nature of the workforce. I-O
Psychologists facilitate responses to issues and problems involving people at work by serving as advisors and
catalysts for business, industry, labor, public, academic, community, and health organizations.
They are: Scientists who derive principles of individual, group, and organizational behavior through
research;Consultants and staff psychologists who develop scientific knowledge and apply it to the solution of
problems at work; and Teachers who train in the research and application of Industrial-Organizational
Psychology.
PSYCHOLOGISTS AS SCIENTISTS AND PROFESSIONALS:

Scientific aspects of I-O Psychology include both applied and basic science. Applied aspects are oriented
around scientific solutions to human problems at work.Basic aspects are quite variable, following the
investigator's interests. Examples include research on methods of behavioral measurement, communication,
motivation, social interaction, and leadership. Professional aspects of I-O Psychology include personnel
research, training and development, psychological testing research, counseling and consulting, advising
management, setting personnel policy, human resource planning, organizational development and analysis,
and other human resource functions.
I-0 PSYCHOLOGISTS WORK WITH ORGANIZATIONS IN THE AREAS OF:
➢
Selection and Placement Developing assessment tools for selection, placement, classification, and
promotion of employees Validating test instruments Analyzing job content Developing and
implementing selection programs Optimizing placement of personnel Identifying management potential.
➢
Training and Development Identifying training and development needs Formulating and implementing
technical training and management development programs Evaluating the effectiveness of training and
development programs relative to productivity and satisfaction Planning careers.
➢
Organizational Development Analyzing organizational structure Maximizing the satisfaction and the
effectiveness of individuals and work groups Facilitating organizational change.
➢
Performance Measurement Developing criteria Measuring utility Evaluating organizational
effectiveness.
➢
Quality of Work life Enhancing the productive outputs of individuals Identifying factors associated with
job satisfaction Redesigning jobs to make them more meaningful.
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➢
Consumer Psychology Assessing consumer preferences Identifying consumer reactions to new products
Developing market segmentation strategies.
➢
Engineering Psychology Designing work environments Optimizing person-machine effectiveness
Developing systems technologies
WORKING WITH INDUSTRIAL ORGANIZATIONAL PSYCHOLOGISTS TYPICAL

APPROACH OF CONSULTING I-0 PSYCHOLOGISTS:
➢
I-O Psychologists will want to have their own look at the situation, usually on the premises of the
organization. Their diagnosis may include a redefinition of the problem.
➢
Their preliminary inquiries should enable them to estimate the time the project will take on their part and
on the part of the organization' s staff, after which they will present an estimate of the cost.
➢
They should discuss the steps they plan to take, what organizational resources they may have to use, and
the outline of methods and procedures to be employed.
➢
They should check over the results of their program and plan the organization's follow-up procedures as
well.
➢
Qualified psychologists avoid making extravagant promises of overnight miracles or short-cut cures.
They are more likely to underestimate outcomes than to guarantee results.
EVALUATING A PSYCHOLOGIST'S EXPERIENCE:

➢
To help in the selection of a psychologist, review his or her professional services or research projects
performed.
➢
When were they performed?
➢
Are the references appropriate, reputable, discriminating? Has the psychologist in fact conducted the
research projects, or did other members of the psychologist's firm complete them?
I-0 PSYCHOLOGISTS WILL NEED FROM THE ORGANIZATION:

➢
Whether as consultants or staff members, I-O psychologists will need a realistic budget, supporting
personnel, and cooperation from the organization.

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➢
Less obvious are certain organizational conditions for the effective practice of psychology. I-O
psychologists will operate best in an organizational setting that: has broad and realistic expectations for
the role of psychology; situates psychologists where they have effective communications with key
executives;enables psychologists to report to an organizationally effective manager, one who is open to
contributions from the application of psychology; and recognizes staff members' professional
obligations, such as publication and participation in professional activities.

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UNIT II - INDUSTRIAL HARMONY AND CONFLICT
Industrial Harmony and Conflict: Harmonious relations in industry- importance and means; cause of
industrial disputes- Machinery for settling of disputes- Negotiation- Conciliation- Mediation-Arbitration and
Adjudication- Strikes- Lock-outs- Layout and Retrenchment codes of discipline-Grievance procedure-Labour
management co-operation; Worker’s participation in management.
IMPORTANCE OF HARMONIOUS INDUSTRIAL RELATIONS

There has been a phenomenal growth in employment, wages, benefits, working conditions, status of the
worker, educational facilities etc, with the growth and spread of industry.
The maintenance of harmonious industrial relations so as to maintain higher productivity to fulfill the goals
of the Five Year Plans in India.
The investment in and the scope of industries in India have been growing plan after plan .Much of the
success or failure of Indian Five Year Plans would be dependent on the maintenance of harmonious
employee-employer relations.
Frequent industrial conflicts not only affect the management and labor but also tend to impoverish the
community as a whole.
They lead to wastage, formant class hatred .embitter mutual relations and inflict damages on the progress of
the nation.
They affect production and national income in an adverse manner .They also clog the progress and
development of the nation .
Need for Industrial Peace:

The objectives of maintenance of industrial peace is not only find out ways and means to solve conflicts. To
settle differences and to secure the unreserved cooperation of and goodwill among different groups in
industry with a view to drive their energies.
Interest towards economically viable commercially feasible ,financially profitable and socially desirable
channels.
It also aims at the development of a sense of mutual confidence ,dependence and respect and at the same time
encouraging them to come to closer to each other for removing misunderstanding ,redressing grievances ,if
any. In a peaceful atmosphere and with open mind and fostering industrial pursuits for mutual benefits and
social progress. But the maintenance of congenial industrial relations ,particularly in a democratic society
like ours is not only a significant task but also a complicated one.

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Causes of Industrial Disputes

The causes of industrial conflict or disputes have been much varied. These may be described partly a
psychological or social and partly political, but predominantly economic. Some important factors
responsible for industrial conflict and poor industrial relations many be briefly stated as follows:
Mental inertia on the part of both management and labour.
Lack of proper fixation of wages in conformity with cost of living and a reasonable wage structure
generally.
Bad working conditions.
Lack of competence or training on the part of first-line supervision as well management at upper levels
in the practice of human relations.
Assignment of unduly heavy work-loads to worker, unfair labour practices (such as victimization or
undue dismissal).
Lack of strong and healthy trade unionism, lack of a proper policy of union recognition and inter-union
rivalries.
A fall in the standard of discipline among employees largely due to wrong or improper leadership, often
resulting in insubordination or disobedience on the part of employees.
Difference in regard to sharing the gains of increased
productivity. Inadequate collective bargaining agreements.
Legal complexities in the industrial relations machinery or settlement of industrial disputes.
Lack of necessary changes in the working of government in accordance with changing needs and
circumstances.
Combination of too much law and too little respect for law even at high
levels. Political environment of the country; and
Machinery for Prevention and Settlement of Industrial Relations

The machinery for prevention and settlement of the disputes has been given in the following figure:

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Machinery for Prevention and Settlement of Industrial Relations
Government Statutory
Voluntary Methods Machinery Measures
State
Code of Tripartite Worker’s Collective I.D. Act, 1947 Acts
Machiner
Discipline y Participation Bargaining
Labour Administration
(States & Central Levels)

Conciliati Court of Adjudicati
Works on Voluntary Enquiry on
Committ
ee Arbitration
Nation
Conciliation Conciliation Labour Industrial al
Tribun
Officers Board Court Tribunal al
GOVERNMENT MACHINERY TO RESOLVE INDUSTRIAL DISPUTES

The main object of the Industrial Disputes Act is the investigation of and management of industrial
disputes.One of the principal aims of the Industrial Disputes Act is to harmonies the conflicting interest of
employers and employees engaged in industrial establishments as defined in the Act.
The various methods and machinery under the industrial disputes act can be classified as under the following
heads:
(I) Conciliation
a. Works committee
b. Conciliation officer

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c. Board of conciliation
(II) Arbitration
d. Court of inquiry
(III) Adjudication
e. Labour court
f. Industrial tribunal and
g. National tribunal
(I)Conciliation:
Conciliation may be described as “The practice by which the services of neutral third party are used in a
dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an
amicable settlement or agreed solution.
As a process of peace-making in industrial relations, conciliation aims to bring about the speedy settlement of
disputes without resorting to strikes or lock-outs, and to hasten the termination of work-stoppages when these
have occurred.
Various methods of conciliation are discussed below:
(a) Works committee (Section 3): the following are the objectives of the works
Committee:
(1) To promote measure for securing and preserving good relations between employer and employees.
(2) To strive for minimizing the difference of opinion in regard to matters of mutual interest between the
employees and the employer. It is meant to create a sense of partnership or comradeship between the
employers and workmen.
The decision of works committee is neither agreement nor compromise. Further it is neither binding on the
parties nor enforceable under the act. It may however by noted that the works committee is entitled to:
(a) Discuss grievances arising out of the disciplinary action, or

(b) Take up such matters which fall under the purview of Standing orders, or
(c) Enter into agreement with the employer on changes in conditions of service, or
(d) Supplant or supersede the unions for the purpose, of collective bargaining.
(b) Conciliation Officer (Section 4):
Under the act, the appropriate government is empowered to appoint desired number of conciliation officers,
by notification in the Official Gazette, for the settlement of industrial disputes.

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The number of Conciliation Officers to be appointed is determined by the appropriate government, taking
into account the volume of work and the quality of industrial disputes that actually exist or may arise. A
Conciliation Office may be appointed for a specified area or for specified industries of for one or more
specified industries and either permanently or for a specified area or for specified industries or for one or
more specified industries and either permanently of for a limited time.
His duty is to induce the parties to come to a fair and amicable decision on matters in dispute. He is an
independent person who investigates the dispute and all matters affecting thereto. He is not an adjudication
body but is merely a suggesting body. He goes from camp to camp and finds out the greatest common
measures of agreement. He is charged with the duty of mediating in and promoting settlement of industrial
disputes.
Duties of the Conciliation Officer: The Act provides (under Sec.12) that (i) if anIndustrial dispute exist or
is apprehended in a public utility industry, the Conciliation Officer shall hold conciliation proceedings: and
(ii) in case of other industry, his power is discretionary, I.e. he may or may not hold such proceedings.
The Conciliation Officer has wide powers of making investigation without delay, into an industrial dispute
and all matters affecting the merits and rights of settlement thereof and may do all such things as he thinks
fit, to induce the parties to come to a fair and amicable settlement of the dispute.
Board of conciliation (Section 5): A board of conciliation is constituted as an adhoc body by the
appropriate government. Its purpose is to medicate and to induce the parties to come to a fair and amicable
settlement, so the appropriate government is not empowered to constitute a Board for the purpose of
referring criminal proceedings. The board cannot enforce an award. It also cannot thrust upon the contending
parties its own terms and conditions of settlement. It can take action only when a dispute has been referred to
it by the government.
The board may be constituted by the appropriate government by notification in theOfficial Gazette. It shall
consist of a chairman (who shall be an “independent person: i.e. not connected with the dispute or with any
industry directly affected by such dispute) and two or four members, as the government thinks fit, who shall
be appointed to represent the party. If any party fails to recommend any name within the prescribed time, the
appropriate government shall appoint such persons as it thinks fit to represent to party. The act requires that
the appointment of board of conciliation together with the names of persons constituting it shall be notified in
the Official Gazette. The notice to the employer shall be sent to him personally or if the employer is an
incorporated body to the agent, manager or the principle officer of such corporation.

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(II)Arbitration:
Arbitration is a means of securing an award on a conflict issue by reference to a third party. It is a process in
which a dispute is submitted to an impartial outsider who makes a decision which is usually binding on both
the parties.
(A) Court of Inquiry (section 6):
A court of inquiry is constituted, as an ad hocBody as the occasion may arise, by the appropriate
government. It can inquire into any matter connected with or relevant to industrial dispute; but not into the
dispute itself.
The constitution of the court has to notify in the Official Gazette. It may consist of one independence person
or such number of independent persons as the appropriate government thinks fit.
If there are more than two persons, one of them shall be appointed as the chairman. The appointment of court
together with the names of persons constituting it requires to be notified in the official gazette.
A court having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its
members of any vacancy in its number. The court of inquiry is not required to make any recommendations
for resolving disputes. It is seldom appointed, as it is a superfluous and ad hoc body. It has no power to
impose any settlement upon the parties. It’s merely fact finding machinery.
Its duty is to inquire into the matter referred to it by the appropriate government and to make a report on it on
the inquiry held on matters refereed to it within a period of six months from the commencement of the
enquiry. It must be signed by all the members. A member can submit a government within 30 days from its
receipt.
The section 22, 23 and 33 lays down that during the pendency of the proceeding Before a
court of inquiry, the following rights of works remain unaffected viz.
(1) The right of the worker to go on strike:
(2) The right of employer to resort to lockout and
(3) The right of employer to dismiss or otherwise to punish the worker in certain cases under section 33.
(III)Adjudication:
The ultimate legal remedy for the settlement of an unresolved dispute is its reference to adjudication by the
government. The adjudication involves intervention in the dispute by a third party appointed by the
government for the purpose of deciding the nature of final settlement.
Three tier system of adjudication:

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(a) Labour Court (Section 7) : One or more labour curt may be constituted by theAppropriate government
by notification in the Official Gazette, for adjudication on industrial disputes relating to any matter specified
in the Second Schedule of the Act, and for performing such other functions as may be assigned to them.
A labour court shall consist of one person only, to be appointed by the appropriateGovernment. Such a
person should have been, for a period of not less than 3 years, a district judge or an additional district judge
or has held any judicial office in India for not less than 7 years; or has been a presiding officer of a labour
court for not less than 5 years.
No person shall be appointed or continue in the office of the labour court if he is not an independent person,
or he has attained the age of 65 years.
The duties of the labour courts are (i) to hold adjudication proceedings expeditiously, and (ii) submit the
award to the appropriate government as soon as practicable on the conclusion of the proceedings. The labour
court usually deals with matters which arise in day-to-day working.
(D) Industrial Tribunal (section 7 A) : The appropriate government may appoint one or more Industrial
Tribunals for the adjudication of industrial disputes relating to any matter whether specified in the Second
Schedule of the Third Schedule. The matters which are in the form of new demands and give rise to
industrial disputes, which affect the working of a company or industry, are usually referred to an industrial
tribunal.
An industrial tribunal may be appointed for a limited period on an ad hoc basic or Permanently.
The matters specified in the third Schedule are:
1. Wages, including the period and mode of payment:
2. Compensatory and other allowances
3. Hours of Work and rest intervals
4. Leave with wages and holidays
5. Bones, profit sharing, provident fund and gratuity
6. Shift working otherwise than in accordance with standing orders
7. Classification of grades
8. Rules of discipline
9. Rationalization
10. Retrenchment of workmen and closure of an establishment or undertaking
11. Any other matter that may be assigned to them under Act.
(c) National Tribunal (Section 7 B): The Central Government may, by notification in the official gazette,
constitute one or more national tribunals for adjudication of industrial disputes: (i) involving questions of
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national importance; or (ii) which are of such a nature that industries in more than one state are likely to be
interested in, or affected by such, disputes.
It consists of one person only, who is an independent person and below 65 years ofAge. He should be or has
been judge of a high court or held the office of chairman or any other member of the Labour Appellate
tribunal for a period of not less than 2 years.
The Central Government may, if it thinks fit, appoint two persons as assessors toAdvice the National
Tribunal Duties of a national tribunal are to hold proceedings of industrial disputes referred to it by the
Central Government expeditiously, and to submit the award to the referred on the conclusion thereof.
When a national tribunal has been referred to, no Labour Court or Industrial tribunal shall have any
jurisdiction to adjudicate upon such a matter.
MEDIATION
Mediation’ is the ancient art of the peace-maker. It has been practiced in a number of areas when people
disagree. It is an ancient and honorable process for the settlement of disputes – disputes between two warring
nations, disputes between litigants, disputes between labour and management, and in general,
disputes between people. It has been most usefully employed to smooth out serious disagreements which
threaten the rupture of established relations, such as those between husbands and wives, among
associates and friends, and among partners in common endeavors.
Kinds of Mediator
There are three kinds of mediators, according to Prof. Pigou, namely
(i) The eminent outsider;
(ii) The non-governmental board; and
(iii) The board connected with some part of the government system of the country.
There are various advantages inaccessible to non-governmental boards but which are readily
available to the boards attached with governmental machinery of the country, because:
(i) They possess exceptional facilities for ascertaining the existence of difference at the earliest possible
moment through administrative officers;
(ii) They are endowed with greater intellectual and financial resources and can use them more liberally;
and
(iii) When mediators are sent out, they are likely to wield a modicum of power which may enable them to
work well.

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Different types of these mediators are valuable in their own spheres. But they are sometimes dangerous.
The development of pace-promoting machinery within separate industries may be checked by the actions
of the intervening body.
Forms of Disputes:
Strikes and lockouts are the most common forms of disputes.
Strike:
“Strike” means a cessation of work by a body of persons employed in any industry acting in
combination; or a concerted refusal or a refusal under a common understanding or an number of persons
who are or have been so employed to continue to work or to accept employment. The following points
may be noted regarding the definition of strike:
• Strike can take place only when there is a cessation of work or refusal to work by the workmen acting in
combination or in a concerted manner.
• If on the sudden death of a fellow-worker, the workmen acting in concert refuse to resume work, it
amounts to a strike (National Textile Workers’ Union Vs. Shree Meenakshi Mills (1951) II L.L.J. 516).
Types of Strike
• Stay-in, sit-down, pen-down strike: In all such cases, the workmen after taking their seats refuse to do
work. All such acts on the part of the workmen acting in combination, amount to a strike.
• Go-slow: Go-slow does not amount to strike, but it is a serious case of is conduct.
• Sympathetic strike: Cessation of work in the support of the demands of workmen belonging to other
employer is called a sympathetic strike. The management can take disciplinary action for the absence of
workmen. However, in Remalingam Vs. Indian Metallurgical Corporation, Madras, 1964-I L.L.J.81, it
was held that such cessation of work will not amount to a strike since there is no intention to use the
strike against the management.
• Hunger strike: Some workers may resort to fast on or near the place of work or residence of the
employers. If it is peaceful and does not result in cessation of work, it will not constitute a strike. But if
due to such a fact, even those present for work, could not be given work, it will amount to strike
(Pepariach Sugar Mills Ltd. Vs. Their Workmen).
• Lightning or wildcat strike: A wildcat strike is an unofficial strike i.e. a strike not sanctioned by the
union. Such strikes occasionally occur in violation of the no-strike pledge in collective bargaining
agreements. In such a situation union is obliged to use its best efforts to end the strike. Such strikes are

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prohibited in public utility services under Section 22 of the Industrial Disputes Act, 1947. Further, the
standing order of a company generally required for notice.
• Work-to-rule: Since there is a no cessation of work, it does not constitute a strike.
Lockout
Section 2(1) of the Industrial Disputes Act, 1947 defines “lockout” to mean the temporary closing of a
place of employment or the suspension of work, or the refusal by an employers to continue to employ any
number of persons employed by him.
lockout, thus, is the counterpart of strike – the corresponding weapon the hands of employer to resist the
collective demands of workmen or to enforce his terms. It has been held by the courts that the suspension
of work as a disciplinary measure does not amount to lockout. Similarly, temporary suspension of work
called lay-off is not lock-out.
Regulation of strikes and lock-outs
Employees do not have an unfettered right to go on strike nor do employers have such right to impost
lockout. The Industrial Disputes Act lays down several restrictions on the rights of both the parties. A
strike or lockout commenced or continued in contravention of that restriction is termed illegal and there
is serve punishment provided for the same.
Illegal strikes and lockout are of two types:
• Those which are illegal form the time of their commencement; and
• Those which are not illegal at the time of commencement but become illegal subsequently.
Section 22 and 23 of the IDA provide for certain restriction which if not followed make strikes and
lockouts illegal from their very commencement.
According to this section, no person employed shall go on strike in breach of contract-
• Without giving notice of strike to the employer, as here matter provided, within 6 week before striking;
or
• Within fourteen days of giving such notice; or
• Before the expiry of the date of strike specified in any such notice as aforesaid; or
• During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after
the conclusion of such proceedings.

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Consequences of illegal strikes and lock-outs.

1. Penalty for illegal strikes [Sec.26(1)]: Any workman who commences, continues or otherwise acts in
furtherance of a strike which is illegal, shall be punishable with imprisonment for a term which may
extend to 1 month, or with fine which may extend to Rs. 50, or with both.
2. Penalty for illegal lock-out [Sec.26(2):Any employer who commences, continues or otherwise acts in
furtherance of a lock-out which is illegal, shall be punishable with imprisonment for a term which may
extend to 1 month, or with fine which may extend to Rs. 1,000 or with both.
3. Penalty for instigation, etc. [Sec. 27]: Any person who instigates or incites others to take part in, or
otherwise acts in furtherance of, a strike or lock-out which is illegal, shall be punishable with
imprisonment for a term which may extend to 6 months, or with fine which may extend to Rs. 1,000 or
with both.
4. Penalty for giving financial aid for illegal strikes and lock-outs [Sec. 28]: Any person who
knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out
shall be punishable with an imprisonment for a term which may extend to 6 months, or with fine which
may extend to Rs. 1,000 or with both.
Layoff
Section2 (kkk) - Layoff :Lay-off means failure, refusal, or inability of a employer to give employment to
a workman whose name is on the muster rolls of his industrial establishment and who has not been
retrenched, on the account of lack of coal, lack of power, lack of raw material, over stocking of output,
failure of machinery, due to natural calamity, or due to any other connected reason.
Retrenchment
Section2 (Retrenchment)
Retrenchment means termination of service of an employee by an employer for any reason other than as a
punishment due to disciplinary action. This does not include - voluntary retirement, superannuation, non-
renewal of contract, termination on the ground of continued ill-health.
For any reason what so ever - surplus age, redundancy due to advanced machinery, slowdown in
business.
Grievances Handling
A grievance is a sign of the employees’ discontent with job and its nature. It is caused due to the
difference between employee expectation and management practice.

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Beach defines a grievance as, ‘any dissatisfaction or feeling of injustice in connection with one’s
employment situation that is brought to the notice of the management.
Julius defines a grievance as ‘any discontent or dissatisfaction, whether exposed or not, whether valid or
not, arising out of anything connected with the company which an employee thinks, believes or even
feels to be unfair, unjust and inequitable’.
A grievance is a problem submitted by an employee or by a few employees of different types. It may be
conce4ring a situation or may likely to affect the terms and conditions of employment of one worker or a
few workers.
Areas of Grievances:
Grievances resulting from working conditions
• Poor physical conditions of work place.
• Lack of proper tools, machines and equipments.
• Frequent changes in schedules or procedures.
• Rigid production standards
• Improper matching of the worker with the job.
• Poor relationship with the supervisor.
Grievances resulting from management policy and practices
• Poor payment
• Lack of job security
• Inadequate benefits such as medical benefits, leave travel concession etc.
• Leave facilities
• Seniority
• Transfer
• Promotion
• Lack of career planning and development
• Hostility towards labour union
• Defective leadership style
• Communication gap
Grievances resulting from alleged violations of

• Violation collective bargaining agreement

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• Violation of Central/State laws

• Violation of common rules
Grievances resulting from personal maladjustment
• Over ambition
• Excessive self-esteem
Methods of Identifying Grievances:
The following methods can help the employer to identify the grievances:
1. Directive observation: Knowledge of human behavior is requisite quality of every good manager. From
the changed behavior of employees, he should be able to snuff the causes of grievances. This he can do
without its knowledge to the employee. This method will give general pattern of grievances. In addition
to normal routine, periodic interviews with the employees, group meetings and collective bargaining are
the specific occasions where direct observation can help in unfolding the grievances.
2. Grip boxes: The boxes (like suggestion boxes) are placed at easily accessible spots to most employees in
the organization. The employees can file anonymous complaints about their dissatisfaction in these
boxes. Due to anonymity, the fear of managerial action is avoided. Moreover management’s interest is
also limited to the free and fair views of employees.
3. Open door policy: Most democratic by nature, the policy is preached most but practiced very rarely in
Indian organizations. But this method will be more useful in absence of an effective grievance procedure;
otherwise the organisation will do well to have a grievance procedure. Open door policy demands that
the employees, even at the lowest rank, should have easy access to the chief executive to get his
grievances redressed.
4. Exit interview: Higher employee turnover is a problem of every organisation. Employees leave the
organisation either due to dissatisfaction or for better prospects. Exit interviews may be conducted to
know the reasons for leaving the job. Properly conducted exit interviews can provide significant
information about the strengths and weaknesses of the organisation and can pave way for further
improving the management policies for its labour force.
Steps in handling grievances
It is important that grievance must be handled in a systematic manner. The following steps should be
taken in handling grievances:
1. Defining, describing or expressing the nature of the grievances as clearly and fully as possible;
2. Gathering all facts that serve to explain when, how, where, to whom and why the grievance occurred;
3. Establishing tentative solutions or answers to the grievances;
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4. Gathering additional information to check the validity of the solutions and thus ascertain the best possible
solution;
5. Applying the solution, and
6. Following up the case to see that it has been handled satisfactorily and the trouble has been eliminated.
Principles or Guidelines for Grievance Handling
1. In handling grievances, a considerable amount of time must be spent in talking to employees; gathering
data from them and passing on various types of information. Such talks to be most effective, should
conform to definite patterns and adhere to well tested rules.
2. The manager must seek to develop an attitude towards employees that should be helpful in gaining their
confidence. The management should also display a sincere interest in the problems of employees and
their constructive willingness to be to help to them with a view to gain not only their confidence but also
their utmost loyal by and genuine cooperation.
3. The procedure adopt by the management in handling the grievances must be apparent.
4. Grievances should be handled in terms of their total effect on the organization and not solely their
immediate or individual effect.
Grievance handling procedures
Grievance procedure is the most significant channel through which dissatisfaction of employees can be
communicated to management. A grievance procedure is an ordered multistep process that the employer
and employee jointly use to redress grievances and resolve disputes that arise. Thus a formal procedure
which attempts to resolve the differences of parties involved, in an orderly, peaceful and expeditious
manner, may be defined as grievance procedure or grievance redressed machinery. The steps in this
machinery vary from organization to organization.
For handling grievances, as a first step, the management is required to designate the persons for each of
the various departments to be approached by the works and the department heads for handling grievances
as the second step. A Grievance Committee may also be constituted with representatives of workers and
management. The model grievance producer give the various steps through which a grievance should be
processed.
First, the grievance is taken to the departmental representative of the management who has to give an
answer within 48 hours. Failing this, the aggrieved worker/ employee can beet the departmental head
along with the departmental representative of the management and this step is allotted three days. Above
this, the grievance is taken up by the Grievance Committee which should make its recommendations to
the manager within seven days. The final decision of the management has to be communicated to the
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workers or employee concerned within three days of the Grievance Committee’s recommendations. If the
employee is not satisfied, he can make an appeal for revision and the management has to communicate its
decision within a week. In the case of non-settlement, the grievance may be referred to voluntary
arbitration. The formal conciliation machinery will not be invoked till the final decision of the top
management has been found unacceptable by the aggrieved employee.
In the case of any grievance arising out of discharge or dismissal, the workman or employee has the right
to appeal either to the dismissing authority or to a senior authority specific by the management within a
week from the date of dismissal or discharge.
Although the grievance procedure gives the employees opportunity to raise their grievances to the highest
possible level of management, yet they should be resolved as close as possible to their source. The main
object of grievance procedure is to resolve the grievance at earliest possible stage. The management must
convince itself that justice is not only done, but seen to be done and the presence of a trade union
representative with the aggrieved party helps to ensure fair play not only for the employee concerned, but
also for his management.
Employee Discipline
Discipline may be defined as an attitude of mind which aims at inculcating restraint, orderly behavior and
respect for and willing obedience to a recognized authority. In any industry discipline is a useful tool for
developing, improving and stabilizing the personality of workers. Industrial discipline is essential for the
smooth running of an organisation, for increasing production and productivity, for the maintenance of
industrial peace and for the prosperity of the industry and the nation. It is a process of bringing
multifarious advantages to the organisation and its employees.
Code of Discipline
The Fifteenth Indian Labour Conference discussed the question of discipline in industry and lain down
the following general principles:
• There should be no lock-out or strike without notice.
• No unilateral action should be taken in connection with any industrial matter.
• There should be no recourse to go-slow tactics.
• No deliberate damage should be caused to plant or property.
• Acts of violence, intimidation, coercion or instigation should not be resorted to.
• The existing machinery for settlement of disputes should be utilized.
• Awards and agreements should be speedily implemented.

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• Any agreement which disturbs cordial industrial relations should be avoided.

The Code embodies four parts. Part I contains the duties and responsibilities of employees, workers and
the government in maintaining discipline in industry. Part II enlists the common obligations of
management and unions. Part III deals with the obligations of management only, while Part IV relates to
those of the unions only. In additions, Annexure-A to the Code embodies the national level agreement on
the criteria for the recognition of unions. A supplementary document contains the rights of recognized
unions and a model grievance procedure. Thus, the Code is highly comprehensive and ethical in its
approach to the industrial relations system. It has been reproduced below.
Part –I:To maintain discipline in industry (both in public and private sectors)
There has to be: (i) a just recognition by employers and workers of the rights and responsibilities of either
party, as defined by the laws and agreements (including bipartite and tripartite agreements arrived at all
levels from time to time); and ii) a proper and willing discharge by either party of its obligation
consequent on such recognition.
Part – II: To ensure better discipline in industry, management and union(s) agree
• that no unilateral actions should be taken in connection with any industrial matter and that disputes
should be settled at appropriate level;
• That the existing machinery for settlement of disputes should be utilized with the utmost expedition.
• that there should be no strike or lock-out without notice;
• that affirming their faith in democratic principles, they bind themselves to settle all future differences,
disputes and grievances by mutual negotiation, conciliation and voluntary arbitration;
• that neither will have recourse to (a) coercion, (b) intimidation, (c) victimization, and (d) go-show;
• that they will avoid (a) litigation, (b) sit-down and stay-in-strikes, and (c) lock-outs;
• that they will promote constructive cooperation between their representatives at all levels and as between
workers themselves and abide by the spirit of agreements mutually entered into;
• that they will establish upon a mutually agreed basis a Grievance Procedure which will ensure a speedy
and full investigation leading to settlement;
• that they will abide by various stages in the Grievance Procedure and take no arbitrary action which
would by-pass this procedure; and
• That they will educate the management personnel and workers regarding their obligations to each other.
Part-III Management agrees
• not to increase work-loads unless agreed upon or settled otherwise;

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• not to support or encourage nay unfair labour practice such as: (a) interference with the right of
employees to enroll or continue as union members; (b) discriminations, restraint or coercion against any
employee because of recognized activity of trade unions; and (c) victimization of any employee and
abuse of authority in any form;
• to take prompt actions for (a) settlement of grievance, and (b) implementation of settlements, awards,
decisions and orders;
• to display in conspicuous places in the undertaking the provision of this Code in local language(s);
• to distinguish between actions justifying immediate discharge and those where discharge must e preceded
by a warning, reprimand, suspension or some other form of disciplinary action and to arrange that all
such disciplinary action should be subject to an appeal through normal Grievance Procedure;
• to take appropriate disciplinary action against its officers and members in cases where enquiries reveal
that they were responsible for precipitate action by workers leading to indiscipline; and
• To recognize the unions in accordance with the criteria (Annexure A given below) evolved at the 16th
session of the Indian Labour Conference held in May, 1958.
Part-IV: Union(s) agrees
• not to encourage any form of physical duress;
• not to permit demonstrations which are not peaceful and not to permit rowdyism in demonstration;
• that their members will not engage or cause other employees to engage in any union activity during
working hours, unless as provided for by law, agreement or practice;
• to discourage unfair labour practices such as: (a) negligence of duty, (b) careless operation, (c) damage to
property, (d) interference with or disturbance to normal work, and (e) insubordination;
• to take prompt actions to implement awards, agreements, settlements and decisions;
• to display in conspicuous places in the union offices, the provision of this Code in the local language(s);
and
• to express disapproval and to take appropriate action against office bearers and members for indulging in
action against the spirit of this Code.
The Code does not have any legal section but the following moral sanctions are behind it:
1. The Central Employers’ and Workers’ Organizations shall take the following steps against their
constituent units guilty of breaches of Code:
• to ask the unit to explain the infringement of the Code;

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• to give notice to the unit to set right the infringement within a specific period;
• to warn, and in case persistent violation of the Code; and
• not to give countenance, in any manner, to non-members who did not observe the Code; and
• Not to give countenance, in any manner, to non-members who did not observe the Code.
2. Grave, willful and persistent breaches of the Code by any party should be widely publicized.
3. Failure to observe the Code would entail derecognition normally for a period of one year-this period may
be increased or decreased by the implementing Committee concerned.
4. A dispute may not ordinarily be referred for adjudication if there is a strike or lockout without proper
notice or in breach of the code as determined by an Implementation.
Workers’ Participation in Management

Workers participation in management is in essential ingredient of industrial democracy. The concept of
workers participation in management is based in “Human Relations” approach to management which
brought about new set of values to labour and management.
Traditionally, the concept of Workers’ Participation in Management (WPM) refers to participation of
non-managerial employees in the decision-making process of the organisation.
Objectives
The scheme has economic, psychological, ethical and political objectives.
• Its psychological objective of the scheme is to secure full recognition of the workers. Association of
worker with management provides him with a sense of importance, involvement and a feeling of
belongingness. He considers himself to be an indispensable constituent of the organisation.
• Socially, the need for participation arises because modern industry is a social institution with the interest
of employer, the share-holders, the community and the workers equally invested in it.
• The ethical objective of participation is to develop workers free personality and to recognize human
dignity.
• The political objective of participation is to develop workers conscious of their democratic rights on their
work place and thus bring about industrial democracy.
Levels of Participation
1. Information participation: It ensures that employees are able to receive information and express their
views pertaining to the matters of general economic importance.

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2. Consultative participation: Here works are consulted on the matters of employee welfare such as work,
safety and health. However, final decision always rests at the option of management and employees’
views are only of advisory nature.
3. Associative participation: It is extension of consultative participation as management here is under moral
obligation to accept and implement the unanimous decisions of employees.
4. Administrative participation: It ensure greater share of works in discharge of managerial functions.
Here, decision already taken by the management come to employees, preferably with alternatives for
administration and employees have to select the best from those for implementation.

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- LABOUR RELATIONS AND JOINT CONSULTATION

Labour Relations: Changing concept of management labour relations- Statute laws- Tripartite
conventions- development of the idea of social justice- limitation of management prerogatives increasing
labour responsibility in productivity.
Joint Consultation: Principal types- Attitude of trade unions and management- Joint consultation in
India.
LABOUR RELATIONS
Labor relation was considered as a relationship between employees and employers. But these days, this
has become a burning issue consisting of the relationship between workers, employers and social
environment of the organization.
(or)
Labor relation or employee relation or industrial relation is a system that makes the social dialogue
between employees, employers and society/government. It refers to all means of relationship between
management and employees, unions and management, unions and employees and between the employees
themselves.
➢
CONCEPT OF LABOUR RELATIONS
• Traditionally, labor relation was considered as a relationship between employees and employers.
• But these days,this has become a burning issue consisting of the relationship between workers, employers
and social environment of the organization.
• It is a dynamic socio-economic process that makes a social dialogue possible among employees,
employers and the organizational social environment.
• The primary focus of it should be on grievance handling, industrial dispute, and interpretation labor laws,
etc.
• It provides a context in which organizational rules and regulations are framed so that organizational roles
assigned to members are performed.
• Hence, labor relation or employee relation or industrial relation is a system that makes the social dialogue
between employees, employers and society/government.
• It refers to all means of relationship between management and employees, unions and management,
unions and employees and between the employees themselves.
• It is a joint effort of these major influences that produce a harmonious industrial relations between them.
But it is multidimensional force that is influenced by the external forces economic, social, cultural,
political, legal, technological and occupational forces.
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• The primary concern of labor relations is to promote a healthy and harmonious relationship between
employees and the employers.
• Beside management and workers, the government is another important factor that influences
organizational affairs through legal and administrative measures.
• In this way, this harmonizes the divergent and conflicting interests of these parties through a consolidated
dialogue.
➢
STATUTE LAWS
The body of law consisting of written laws adopted by a legislative body. Statute law is often
contrasted with case law, which originates from decisions of the appellate courts; and with constitutional
law, based on a country’s written constitution.
➢
TRIPARTITE CONVENTION
Labour policy in India has been evolving in response to the specific needs of the situation in relation
to industry and the working class and has to suit the requirements of planned economy. A body of
principles and practise has grown up as a product of joint consultation in which representatives of
government, the working class and the employers have been participating at various level.
IMPORTANT OF TRIPARTITE BODIES
1. THE INDIAN LABOUR CONFERENCE (I.L.C)
2. THE STANDING LABOUR COMMITTEE (S.L.C)
3. THE COMITTEE ON CONVENTION
4. THE INDUSTRIAL COMITTEE
5. OTHER BOBIES OF TRIPARTITE
1.THE INDIAN LABOUR CONFERENCE AND STANDING LABOUR COMMITTEE
Both I.L.C and S.L.C are two important constituent of tripartite bodies.
The objects of the Indian labour conference
a) To promote uniformity in labour legislation
b) To lay down a procedure for the settlement of industrial disputes
c) To discuss all matter of all India importance as between employers and employees.
The function of the ILC is to "advise the govt of India on any matter referred to it for advise, taking into
account suggestion made by the provincial government, the state and representative of the organisation of
workers and employers"
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The standing labour committee(SLC)main function is to "consider and examine such question as may be
referred to it by the plenary conference or the central govt ,and to render advice taking into account the
suggestion made by various government, workers and employers".
2.COMMITTEE ON CONVENTION
This is a three-man tripartite committee set up 1954.The object was(a)"to examine the ILO
convention and recommendation which have not so far been ratified by india and(b)to make suggestion
with regard to a phased and speedy implementation of ilo standards".
3.INDUSTRIAL COMMITTEES
The eighth session of the ILC(1947) decided to set up industrial committee "to discuss various
specific problems special to the industries covered by theem and submit their report to the conference
,which would co-ordinate their activities."
VARIOUS INDUSTRIAL COMMITTEE:
1. Committee on N.T.C Turnaround
2. Committee on plantation
3. Commenting on the working of industrial committee
4.OTHER TRIPARTITE COMMITTEES
(a) Steering committee on wages
(b) Central implementation and evaluation machinery
(c) Central boards of workers education
(d) National productivity council
➢
SOCIAL JUSTICE
The fair and proper administration of laws conforming to the natural laws that all persons, irrespective of
ethnic origin, gender, possessions, race, religion, etc., are to be treated equally and without prejudice.
Concept of social justice

1. THE CONCEPT OF SOCIAL JUSTICE
• The concept of social-economic Justice is a living concept and gives substance to the rule of law and
meaning and significance to the ideal of a welfare State.
• The Indian constitution is an illustration of the forces at work in socio-economic Jurisprudence.

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• It sets out the Directive principles of State Policy fundamental to the governance of the country and
spells out a social order in which Justice, Social, economic and political, shall inform all the Institutions
of National life.
2. Social Justice in Civil Society:
• By Rousseau of the Original Civil Society where the difference and disparities, in course of time, became
so gruesome that a demand for Social Justice was a natural outcry of mankind in general.
3. Social Justice under the Constitution of India:
• A picture of the constitution will give us the right perspective for appreciation of the scope and place of
Social Justice as an aspiration of the Nation The former chief Justice of India, P.N. Bhagwati Inter-alia
observed: "Today a vast social revolution is taking place in the judicial process, the law is fast changing
and the problems of the poor are coming to the forefront.
4. Origin of Social Justice and Jurisprudence:

• The greatest Contribution of Ehrlich to Sociological School of Jurisprudence lies in scientific approach to
Study of Law in its Social Context and his emphasis on relation between law and the life of the Society.
5. Sociological approach of social justice:
• According to Roscoe pound “Sociological Approach should ensure that making Interpretation and
application of Laws take account of Social facts”.
• (i) To achieve this target there should be a factual study of the social effects of legal administration.
• (ii)Social Investigation as preliminaries to legislation
6. Position of Social Justice Pre Independence of India:
• The position of Social Justice in ancient time.
• The position of Social Justice in medieval time.
• The position of Social Justice in modern time.
7. Position of social justice Post Independence of India:
• After the independence, social legislation gained a new impetus.
• The rule of law and the legal system were strengthened considerably.
• The Constitution of India became the main inspiration for making a variety of legislations.
8. Jurisprudential perspective of social justice:
• With the independence of India, a new Constitution was adopted for the country embodying the social
philosophy and economic values towards attainment of an egalitarian welfare State
9. Social justice:
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• Developments leading to the constitutional safeguards:

• The quest for social justice in India began more than a century ago.
• When the Indian National Congress was formed in 1885 the desire of the Indians was to have the same
rights and privileges enjoyed by the British citizens in the United Kingdom without any discrimination
whatsoever.
10. The constitutional perspective of social justice:
• The framers of Constitution realized that unless unequal are treated unequally the socio-economic,
political, regional and gender gaps could not be bridged.
• The compelling social situation led to the creation of special provisions in the Constitution for the
advancement of socially and economically backward classes of citizens.
11. Social justice under the constitution of India:
• The Constitution of India has solemnly promised to all its citizens justices-social, economic and political;
liberty of thought expression, belief, faith and worship; equality of status and of opportunity; and to
promote among the all fraternity assuring the dignity of the individual and the unity of the nation.
IMPORTANCE OF SOCIAL JUSTICE

Social justice embodies essential principles of equity and access to all opportunities in society in
accordance with democratic principles and respect for all persons and points of view
• We commit our self to promoting equity, opportunity, and social justice through the college’s operations
and its mission related to teaching research and service.
• Social justice is a term that is used to describe economic quality.
• Social justice is where justice is found in every aspect of society within a country or organization.
• Social justice is proper and fair applying of laws that are conform to the natural law of all nations.
• Advanced studies in teaching and learning program places and emphasis on social justice throughout the
program, but particularly in the course, education and culture.
• Early childhood education program emphasizes social justice across its courses and field experiences.
• Creating opportunities for educational outreach research and development of innovative.
• Educational media products between faculty, students, artists entrepreneurs, grassroots and non-profit
organizations among others.

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• Providing access to quality educational media products that the target children of colour economically
challenged , first generation college students and other diverse or traditionally underserved populations in
k-12. Higher education and on-formal learning environments.
• The fair and proper administration of laws conforming to the natural law that all persons irrespective of
ethnic origin gender, possessions race ,religion etc are to be treated equally and without prejudice.
• Functionally ,’justice is a set of universal principles which guide people in judging what is right and what
is wrong ,no matter what the culture and society they live in.
• Social justice encompasses economic justice. Social justice is the virtue which guides us in creating those
organized human interactions
• When justly organized, provide us with access to what is good for the person both individually and in our
associations with others
• Social justice also imposes on each of us a personal responsibility to work with others to design and
continually perfect our institutions as tools for personal and social development
• Economic justice which touches the individual person as well as the social order, encompasses the moral
principles which guide us in design our economic institutions, these institutions determine how each
person earns a living enters into contracts, exchanges goods and services with others.
➢
MANAGEMENT PREROGATIVE
Managerial Prerogatives are considered natural rights that allow employers to manage their employees.
They are the discretionary powers left at any moment in the hands of managers. Every act which a
manager or his subordinates can lawfully do, without the consent of the worker organization, is done by
virtue of this prerogative.
MOST COMMON MANAGEMENT PREROGATIVES:
1. THE RIGHT TO HIRE
2. THE RIGHT TO DISMISS
3. THE RIGHT TO TRANSFER
4. THE RIGHT TO PROMOTEAND DEMOTE
5. THE RIGHT TO DISCIPLINE
6. THE RIGHT TO LAY DOWN POLICIES
7. THE RIGHT TO ESTABLISHWORKING HOURS
8. THE RIGHT TO ORGANIZE AND REORGANIZE

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9. THE RIGHT TO REASONABLE RETURN ON INVESTMENT

10. THE RIGHT TO EXPANISON AND GROWTH
1.THE RIGHT TO HIRE:
• The company has the exclusive right to purchase labour from any person whom it chooses. Thus ,the
transferee in good faith of a business establishment has no obligation to absorb employees of the
transferor and to continue on employing them.
2.THE RIGHT TO DISMISS
• The company has the right to dismiss employees in accordance with the causes and procedures
established by law.T
• his particular right must be exercised with caution and without abuse of discretion because termination
affects the right of the worker to securit of tenure.
3. THE RIGHT TO TRANSFER
The company has the right to transfer an employee from one to another office within the business
establishment provided that there is no demotion in rank salary ,benefits and other privileges.
This is a privilege inherent in the employers right to control and conduct its business enterprise and
conduct of its business operation to achieve its purpose. It cannot be denied to the employer.
4. THE RIGHT TO PROMOTE AND DEMOTE

The company has the right to promote employees.promotion:scalar ascent of an employee to another
position higher in rank or salary.The right to promote carries with it the right to demote.
5. THE RIGHT TO DISCIPLINE
The right of the employer to subject his employees to disciplinary measures and the need for discipline
have been judically noticed.
6. THE RIGHT TO LAY DOWN POLICIES
Establish working hours,and to organise and reorganise in general terms,an employer is free to regulate
,according to his own discretion and judgment,all aspect of employment ,including work assignment
,working method ,time place,and the manner or work,tools to be used ,processes to be
followed,supervision of workers and working regulation.
Joint consultation
Joint consultation A formal system of communication between the management of an organization and
the employees' representatives used prior to taking decisions affecting the workforce, usually effected
through a joint consultative committee.

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(or)
Joint consultation, or cooperation between employers and employees, is prescribed either in the Act on
Co-operation within Undertakings, in sect oral agreements between the central confederations or in
sect oral agreements, depending on the industry
Purpose of joint Cosultation:
• To further co-operation between the employer and the personnel and among members of personnel
• To provide personnel with the opportunity to influence matters relating to their work and workplace and
• To develop the operations of companies and corporations and their working conditions
Joint consultation aims to promote a positive atmosphere at work, enable change and increase the
personnel’s readiness to accept change. These objectives are best achieved by continuous negotiation
between the employees and the employer.
Joint consultation is an essential part of successful management. Providing information and
communicating the objectives and achievements of joint consultation to the personnel is vitally important
– before and after the cooperation procedure.
Matters discussed
The purpose of joint consultation is to allow personnel to participate in decision-making before the matter
is settled, that is, already at the preparatory stage. At this stage, it is still possible to discuss the grounds
for and effects of the matter in question and any alternatives there may be.
According to the Act on Co-operation within Undertakings and the joint consultation agreements, the
employer must inform the personnel of issues such as the company’s development perspectives and
economic situation, and provide sufficient information to enable the matter to be dealt with. The Act and
both the agreements concluded by the central confederations and sect oral agreements also contain more
detailed information on what additional matters are to be settled by means of the joint consultation
procedure.
Parties
The parties to joint consultation are the employer and the personnel. Joint consultation can be either
direct or representative.
Direct joint consultation
Issues about work and the activities of the work community may be discussed by the supervisors and
personnel. Joint meetings are arranged at the workplace for this purpose. Direct joint consultation is also
a part of daily routines, management and good supervisory work.
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Representative joint consultation

Instead of direct communication, joint consultation may be carried out by a separately appointed
cooperation body, to which the personnel elect their own representatives. Personnel representatives are
usually shop stewards and occupational safety delegates.
ATTITUDE OF TRADE UNIONS AND MANAGEMENT
Joint training is proided to those management and union representatives who are,or will be,part of the
consultation committee.The program can be tailored to meet the particular needs of the parties.A short
program can be completed in 3 hours with a complete program requiring a full day.
Benefits of effective joint consultation committees for management:
• The establishment of the means for improved communication with the union.
• An opportunity to discuss operational issues in a problem solving manner.
• A more postive labour management relationship.
• An opportuinty to respond to constructive suggestions and valid complaints.
For the union:
• An opportunity for ongoing communication with management.
• An opportunity to provide constructive input into operational problems.
• An avenue to express employee and union concerns.
• An opportunity to resolve ongoing issues.
FUNCTIONS OF THE JOINT CONSULTATION COMMITTEE:

4 The Comhairle and Trade Unions shall plan to develop a fair and progressive employment agenda to
support innovative quality service delivery. This principle will underpin all of the committee’s
agreements and activities. The functions of the committee are as follows:
(1) To support and develop a local framework which will contribute to the development of a highly
skilled and motivated workforce.
(2) To negotiate sustainable local collective agreements on employment related matters.
(3) To promote the support of the application of such agreements for the Comhairle and its employees.
(4) To promote co-operation between employers and recognised unions throughout the Comhairle.
(5) To support the promotion of equality and the elimination of discriminatory practices in employment.
(6) To support the development and adoption of local codes of practice to cover the conduct and
obligations of employees and employers.

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(7) To support the development and implementation of training and development initiatives and to
ensure their integration into broader employee development strategies.
(8) To provide a local conciliation service for the resolution of disputes.
(9) To undertake any activity incidental to the above.
JOINT CONSULTATION IN INDIA

THE MACHINERY FOR JOINT CONSULTATION AND COMPULSORY ARBITRATION
The Scheme for Joint Consultation and Compulsory Arbitration for the Central Government Employees
was introduced in the year 1966 on the lines of the Whitely Councils of the United Kingdom. To promote
harmonious relations between the government and its employees.
o To secure the greatest measure of cooperation between the government in its capacity as employer and
the general body of its employees in matters of common concern; and
o To increase the efficiency of the public services, through a collaborative endeavour, to narrow the area of
“unresolved differences” and widen the ambit of agreement on substantive issues of common concern.
The JCM scheme provides for a three tier machinery:-
(i) the National Council as the apex body; (chaired by the Cabinet Secretary)
(ii) Departmental Councils at the level of individual Ministries / Departments including their attached and
subordinate offices and (chaired by respective Secretaries)
(iii) Regional / Office Councils to deal with mainly the local problems at the level of each individual
office, depending on its structure. (chaired by Head of office of respective organisations) The scope of
the JCM Scheme includes all matters relating to:
o conditions of service and work,

o welfare of the employees and
o improvement of efficiency and standards of work, provided, however, that
(i) in regard to recruitment, promotion and discipline, consultation is limited to matters of general
principles; and
(ii) individual cases are not considered.
Under the scheme, there have been continuous interactions with staff unions at the national level as well
as at the departmental level and a number of important issues have been resolved amicably through

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mutual discussions. Forty five meetings of the council have been held since the inception of the scheme
in 1966.
Standing Committee - There have been frequent interactions with the staff side through the meetings of
the Standing Committee of National Council (JCM). Many issues of the employees of the major
ministries / departments like Ministry of Railways, Ministry of Defence and Department of Posts have
been resolved through negotiations and interactions with the unions / federations at the departmental
level.
During the year 2008, a meeting of Standing Committee of the National Council (JCM) has been held on
7 March,2008. A special Standing Committee meeting to discuss the items relating to 6th Central Pay
Commission was held on 7 May, 2008. A meeting under the Chairmanship of Cabinet Secretary was held
on 17 May. 2008 with the Standing Committee members to discuss issues relating to the 6th Central Pay
Commission.
Arbitration - An important feature of the JCM Scheme is the provision for arbitration in cases where
there is no agreement on an issue between the official side and the staff side on matters relating to:-
o pay and allowances;
o weekly hours of work; and
o leave of a class or grade of employees.
Board of Arbitration (BOA) - A Board of Arbitration (BOA) comprising a chairman (who is an
independent person) and two members,(nominated one each by staff side and official side) is functioning
under the administrative control of the Ministry of Labour. Awards of the Board of Arbitration are
binding on both the sides, subject to the over-riding authority of the Parliament to reject or modify the
awards. Under JCM scheme, 259 references have been made to the Board so far, for settlement. Out of
these 257 have been decided by BOA. Most of the awards which were in favour of the employees, have
been implemented, except a few which could not be accepted due to adverse affect on national economy /
social justice.

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UNIT IV - TRADE UNIONS ANDPROBLEMS AND ROLE OF INDIAN TRADE UNIONS
Trade Unions: Trade Unions and their growth- economic- social and political conditions leading to the
development of trade unionism- Theories of trade unionism- Aim and objectives of trade unions-Structure
and governing of trade unions.
Problems and Role of Indian Trade Unions: Recognition and leadership- Finances and Membership-
Compulsory versus free membership- Political activities- Welfare- Legislation- Majority and Minority
unions- Social responsibilities- positive role in economic and social development.
Trade Unions
The term ‘Trade Union’ has been defined in various ways because of wide differences in the use of this
term in different countries. Of all the definitions of a trade union, the classic definition of the Webbs has
been most popular. According to them a trade union is “a continuous association of wage-earners for the
purpose of maintaining or improving the condition of their working lives”. Since this definition does not
cover all the extensions of trade union activities in modern times, a trade union with some modification
may be redefined as “a continuous association of wage-earners or salaried employees for maintaining the
conditions of their working lives and ensuring them a better and healthier status in industry as well as in
the society”.
Functions of Trade Unions
• Functions relating to members
• Functions relating to organization
• Functions relating to the union; and
• Functions relating to the society.
GROWTH AND DEVELOPMENT OF THE TRADE UNION
MOVEMENT
The growth and development of the labour movement, and for that part of the trade
unions, in India, can be divided into following periods, each of them revealing different tendencies that
mark it from others.
1. Social Welfare period, from 1875 to 1918
2. Early Trade Union period, from 1918 to 1924
3. Left-wing Trade Unionism period, from 1924 to 1934
4. Trade Unions’ Unity period from 1935 to 1938
5. Second World War period from 1939 to 1945
6. Post – independence period from 1947 to date

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Social Welfare Period (1875-1918)

* The development of industries led to large-scale production on the one hand and social evils like
employment and exploitation of women and child labour and the deplorable workable conditions, the
government’s attitude of complete indifference in respect of protection of labour from such evils, on the
other.
Early Trade Union Period (1918-1924)

* The year 1918 was an important one for the Indian trade union movement.
* The industrial unrest that grew up as a result of grave economic difficulties created by war. The rising
cost of living prompted the workers to demand reasonable wages for which purpose they united to take
resort to collective act
Left-Wing Unionism Period (1924-1934)
* In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution, conviction and
imprisonment of many communist leaders. The rapid growth of the trade unionism was facilitated by
several factors
Trade Union’s Unity Period (1935-1938)
* In mid-thirties the state of divided labour movement was natural thought undesirable and soon after the
first split, attempts at trade union unity began to be made through the efforts of the Roy Group on the
basis of ‘a platform of unity’.
Second World War Period (1939-1945)
* The Second World War, which broke out in September 1939, created new strains in the united trade
union movement.
* Hence, again a rift took place in 1941 and the Radicals left the AITUC with nearly 200 unions with a
membership of 3, 00,000 and formed a new central federation known as the Indian Federation of Labour
The Post-Independence Period (From 1947 to-date)
* As pointed out earlier, when attempts to restructure the AITUC failed, those believing in the aims and
ideals other than those of the AITUC separated from the organization and established the Indian National
Trade Union Congress (INTUC) in May, 1947

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Aim and objectives of trade unions

AIM:
Early labor unions attempted to organize workers in order to obtain safe working conditions, better
wages, and shorter working hours in the day. Some unions believed it was necessary to accomplish those
goals through the political process. Other unions met in secret and did not want owners of industry or
companies to know they existed. Some thought only violence would accomplish their goals. As labor
unions grew, they became important voting blocs. Most unions started out trying to obtain the "bread and
butter" issues--better wages, safe working conditions, and fewer hours. These goals spread to include
medical leave without a deduction in pay; pensions provided by owners and workers; medical insurance
paid for by owners and workers; laws against child labor; support for free public education, protection of
political and civil rights of workers; and the right to hold collective bargaining elections, so that the
workers could vote to join a union or not.
OBJECTIVES
Representation
Trade unions represent individual workers when they have a problem at work. If an employee feels
he is being unfairly treated, he can ask the union representative to help sort out the difficulty with the
manager or employer. Unions also offer their members legal representation.
Negotiation
Negotiation is where union representatives, discuss with management, the issues which affect people
working in an organization. There may be a difference of opinion between management and union
members. Trade unions negotiate with the employers to find out a solution to these differences. Pay,
working hours, holidays and changes to working practices are the sorts of issues that are negotiated.
• Member services
During the last few years, trade unions have increased the range of services they offer their members.
These include:
• Education and training - Most unions run training courses for their members on employment rights,
health and safety and other issues. Some unions also help members who have left school with little
education by offering courses on basic skills and courses leading to professional qualifications.
• Legal assistance - As well as offering legal advice on employment issues, some unions give help
with personal matters, like housing, wills and debt.
• Financial discounts - People can get discounts on mortgages, insurance and loans from unions.

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• Welfare benefits - One of the earliest functions of trade unions was to look after members who hit
hard times. Some of the older unions offer financial help to their members when they are sick or
unemployed.
Union Classified on the Basis of Membership Structure
The unions have also been classified according to variations in the composition of their members. On
this basis, four types of unions have been recognized, namely, craft unions, staff unions, industrial
unions, and general unions.
Craft Union
It is an organization of workers employed in a particular craft or trade or in a single or two or three
related trades/crafts/occupations. Such organizations link together those workers who have similar skills,
craft training and specialization. “Historically speaking, it were the craft unions that lent stability to the
trade union movement because of their relative stability in employment and higher earnings.” the craft
unions are mostly found amongst non-manual employees and professional workers.
Staff Union
The term “staff union” is popularly used to refer both craft and industrial unions. It is an organization or
rather a form of organization based on the sense of 72 common status and common need for help. It
implies communality of outlook and presupposes some solidarity between workers of different trades.
The staff union seeks to recruit members from of non-manual sectors including clerks, supervisors,
draughtsmen, computerises, operators, technicians, managers etc.
Industrial Union
It is an organization of workers which links all craftsmen and skilled workers in any one industry (such as
coal, engineering, plantation, textiles) regardless of the differences in craft, skill, grade, position or sex.
The common bond here is the industry in which the workers are employed. It is organized upon an
industry-wise rather than a craft-wise basis. The membership is large; and it makes workers class-
conscious and increases the feeling of solidarity among them.
General Union
It is that organization which covers various industries and labourers having different types of skills. The
objectives of these unions are all embarrassing in character. They have numerical superiority, for they are
open to all classes of workers; and this is the source of their strength. From the point of view of
solidarity, this type is ideal.

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Recognition of trade unions

The recognition of trade unions by employers was felt to ensure that appropriate modes of collective
bargaining took place and that the agreements were collectively reached and mutually observed.
Collective agreements to settle disputes can be reached with or without recourse to the conciliation
machinery set up by the legislation. A bi-party agreement between one trade union and management is
not a binding on members of another or other union(s). However, if a settlement is arrived in the course
of conciliation proceedings, then it is a binding as mentioned under section 18 of Industrial Disputes Act,
not only on the actual parties making the settlement but also on all other members concerned, present or
future. When parties do not reach a settlement and the matter is forwarded for arbitration or adjudication,
then the award (An interim or final determination of any industrial dispute by any labour court or
industrial tribunal) of the arbitrator or adjudicator is binding on all parties concerned.
Membership Verification: An official of the labour department of the state or central government visits
the establishment, obtains the manpower list from the management and asks each employee individually
whether or not they wish to become members of a union and if so, which union. Based on the responses,
the membership claim of all unions is verified to identify which union has the support of the majority of
employees. This becomes the criteria for selecting the sole bargaining agent in an establishment. This
exercise is carried out once in a few years.
Check-off: Under check-off employees are asked to state in writing whether or not they belong to a
union and if they do, they to which union. Along with this, employees should also undertake in
writing that they are willing to have union membership deducted from their salary. The check-off
system helps management to know how many members each union has and who they are whereby
enabling them to make an assessment of the relative strength of unions for the purpose of recognition
and also, such information can be used to pressurize workers to stop patronizing unions which are not
in the good books of the management.
Secret Ballot: A more democratic method, election by secret ballot, enables employees to exercise
their option secretly, without fear or favor. The entire process takes place in the overall supervision of
the Chief Labour Commissioner. There are two types of secret ballots:
• Panel: In panel type, the union formed can be a mix of electing members from different parties. For
example, a union may be formed with president from one union, secretary from other union and
treasurer from a third union.
• Banner: In banner type, employees vote for a single union i.e. all positions are held by electing
members of same union.
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Code of Discipline: The fifteenth session of the Indian Labour Conference held in Nainital in 1957
discussed the recognition of trade unions and evolved the Code of Discipline laying down the criteria
for trade union recognition. These criteria continue to provide the basis for the recognition of unions
in certain central public sector organizations till date.
Theories of Trade Unionism
There is no one theory of Trade Unionism, but many contributors to these theories are revolutionaries
like Marx and Engels, Civil servants like Sydney Webb, academics like Common and Hoxie and
labour leader like Mitchall. Important theories of trade unionism are as follows.
1. Political Revolutionary Theory of Labour Movement of Marx and Engels: This theory is based on
Adam Smiths theory of labour value. Its short run purpose is to eliminate competition among labour, and
the ultimate purpose is to overthrow capitalist businessman. Trade union is pure simple a class struggle,
and proletarians have nothing to lose but their chains and they a world to win.
2. Webbs Theory of Industrial Democracy: Webb’s book ‘Industrial democracy’ is the Bible of trade
unionism. According to Webb, trade unionism is an extension of democracy from political sphere to
industrial sphere. Webb agreed with Marx that trade unionism is a class struggle and modern capitalist
state is a transitional phase which will lead to democratic socialism. He considered collective bargaining
as the process which strengthens labour.
3. Cole’s Theory of Union Control of Industry: Cole’s views are given in his book “World of Labour”
1913. His views are somewhere in between Webb and Marx. He agrees that unionism is class struggle
and the ultimate is the control of industry by labour and not revolution as predicted by Marx.
4. Common’s Environment Theory: He was skeptical of generalisations and believed only that which
could be proved by evidence. He agreed that collective bargaining was an instrument of class struggle,
but he summarised that ultimately there will be partnership between employers and employees.
5. Mitchell’s Economic Protection Theory of Trade Unionism: Mitchell, a labour leader, completely
rejected individual bargaining. According to him unions afford economic protection to.
6. Simons Theory of Monopolistic, anti-Democratic Trade Unionism: He denounced trade unionism

as monopoly founded on violence. And he claimed monopoly power has no use save abuse.

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7. Perlman’s Theory of the “Scarcity Consciousness” of Manual Workers: He rejected the idea of
class consciousness as an explanation for the origin of the trade union movement but substituted it with
what he called job consciousness.
According to him, ‘working people in reality felt an urge towards collective control of their
employment opportunities, but hardly towards similar control of industry.’ Perlman observed that
three dominant factors emerged from the rich historical data:
1. The capacity or incapacity of the capitalist system to survive as a ruling group in the face of
revolutionary attacks (e.g., failure in Russia).
2. The source of the anti-capitalist influences being primarily from among the intellectuals in any
society.
3. The most vital factor in the labour situation was the trade union movement. Trade unionism, which is
essentially pragmatic, struggles constantly not only against the employers for an enlarged opportunity
measure in income, security and liberty in the shop and industry, but struggles also, whether
consciously or unconsciously, actively or passively, against the intellectual who would frame its
programmes and shape its policies.
8. Tannenbaum’s Theory of Man Vs. Machine: According to him Union is formed in reaction to
alienation and loss of community in an individualistic and unfeeling society. In his words, the union
returns to the workers his society, which he left behind him when he migrated from a rural
background to the anonymity of an urban industrial location. The union gives the worker a fellowship
and a value system that he shares with others like him. Institutionally, the trade union movement is an
unconscious
effort to harness the drift of our time and reorganise it around the cohesive identity that men working
together always achieve.
MAJORITY AND MINORITY
A majority-minority or minority-majority area is a term used in the United States to refer to
a jurisdiction in which one or more racial and/or ethnic minorities (relative to the
whole country's population) make up a majority of the local population. The first known use of
the term in this context was in 1978, but it may date back further.
United States of America
In the United States of America majority-minority or minority-majority area is a United States
state or jurisdiction whose population is composed of less than 50% non-Hispanic whites. Racial data
is derived from self-identification questions on the U.S. Census and on U.S. Census Bureau estimate
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South Africa
• Whites and Coloured South Africans are a majority in some parts of South Africa while being a
minority in South Africa overall.
England
• White British (mainly English people) are a minority in London (43.7%) English people are also a
minority in the settlements of Luton, Slough, Leicester and Birmingham.
Australia
• European Australians are a minority in some western suburbs of Sydney. 64% of Cabramatta is made
up of Eastern Asians, which makes it the largest non-European suburb in Australia The Middle
Eastern ancestry leads in suburbs such as, Fairfield, Lakemba, Punchbowl,Bankstown and Auburn
(and their surrounds).
Fiji
• Fiji did not have any racial or ethnic group comprise a majority from the 1930s to the 1990s, with the
exception of the 1960s and possibly early 1970s
India
• Muslims are a majority in the Lakshadweep and Jammu and Kashmir states/territories of India, and in
some other districts of India. However, Muslims are a minority in India overall.
ROLE IN ECONOMIC AND SOCIAL DEVELOPMENT

Socioeconomics (also known as socio-economics or social economics) is the social science that
studies how economic activity affects and is shaped by social processes. In general it analyzes how
societies progress, stagnate, or regress because of their localor regional economy, or the global
economy.
Socioeconomics is sometimes used as an umbrella term with different usages. The term 'social
economics' may refer broadly to the "use of economics in the study of society. More narrowly,
contemporary practice considers behavioral interactions of individuals and groups through social
capital and social "markets" (not excluding for example, sorting by marriage) and the formation of
social norms. In the latter, it studies the relation of economics to social values.
A distinct supplemental usage describes social economics as "a discipline studying the reciprocal
relationship between economic science on the one hand and social philosophy, ethics, and human
dignity on the other" toward social reconstruction and improvement[4] or as also emphasizing
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multidisciplinary methods from such fields as sociology, history, and political science.[5] In
criticizing mainstream economics for its alleged faulty philosophical premises (for example the
pursuit of self-interest) and neglect of dysfunctional economic relationships, such advocates tend to
classify social economics as heterodox.
Legislation of trade union
Trade unions were finally legalised in 1872, after a Royal Commission on Trade Unions in 1867
agreed that the establishment of the organizations was to the advantage of both employers and
employees.
This period also saw the growth of trade unions in other industrializing countries, especially the United
States, Germany and France.
In the United States, the first effective nationwide labor organization was the Knights of Labor, in 1869,
which began to grow after 1880. Legalization occurred slowly as a result of a series of court decisions.
The Federation of Organized Trades and Labor Unions began in 1881 as a federation of different unions
that did not directly enroll workers. In 1886, it became known as the American Federation of Labor or
AFL.
In Germany the Free Association of German Trade Unions was formed in 1897 after the conservative
Anti-Socialist Laws of Chancellor Otto von Bismarck were repealed.
In France, labor organization was illegal until 1884. The Bourse du Travail was founded in 1887 and
merged with the Fédération nationale des syndicats (National Federation of Trade Unions) in 1895 to
form the General Confederation of Labour (France).
Advantages of Trades Unions:
1. Increase wages for its members: Industries with trade unions tend to have higher wages than non-
unionized industries.
2. Counterbalance Monopsony Power:If a trade union bargains for W3, it does not create
unemployment, but employment. In the face of Monopsony employers, Trades Unions can increase
wages and increase employment. Monopsony employers are those who have market power in setting
wages and employing workers. Traditionally, monopsonies occur when there is only 1 firm in a town, or
type of employment. However, in modern economies, many employers have a degree of market power
(monopsony).
3. Represent Worker: Trades Unions can also protect workers from exploitation, and help to uphold
health and safety legislation. Trades unions can give representation to workers facing legal action.

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4. Productivity deals: Trades Unions can help to negotiate productivity deals. This means they help the
firm to increase output; this enables the firm to be able to afford higher wages. Trades unions can be
important for implementing new working practices which improve productivity.
5. Important for Service Sector: Modern economies have seen a fall in trade union power. This is
because of a decline in manufacturing and rise in service sector employment. Service sector jobs tend to
more likely to be part time and temporary; unions are needed to protect workers in these kind of jobs.

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COLLECTIVE BARGAINING AND TRIPARTITE MACHINERY
Collective Bargaining: Meaning- Scope- Subject matter and parties- Methods and tactics-
Administrations of collective bargaining agreements- Fair and unfair labour practice.
Tripartite Machinery: At the center and in the states- I.L.O. – Its functions and role in labour
movement
– Industrial health and safety- Industrial legislations.
Collective Bargaining
Collective bargaining is a source of solving the problems of employees in the work situation
collectively. It provides a good climate for discussing the problems of workers with their employers.
The employees put their demands before the employers and the employers also give certain
concession to them. Thus it ensures that the management cannot take unilateral decision concerning
the work ignoring the workers. It also helps the workers to achieve responsible wages, working
conditions, working hours, fringe benefits etc.
Meaning
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
counter-proposals, offers and counter-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 principles between the employers and
employees.
Definition
Richardson says, “Collective bargaining takes place when a number of work people enter into
negotiation as a bargaining unit with an employer or a group of employers with the object of
reaching agreement on conditions of the employment of the work people”.
Scope of collective bargaining:
1. The scope of collective bargaining is very wide. Any matter defining the relationship between the
management and workers may form a part of it.
2. Broadly two types of issues may involved in collective bargaining:
Economic provision: it includes those provisions which affects the economic, financial, and
professional aspects of workers.(working conditions, rules and regulations)

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Political provisions or issues: these provisions relates to the general administration such as division
of authority and responsibility, workers participation in management and power to challenge the
decision
taken by the management.
Other items being a part of collective bargaining:
1. Allowances and leave rules
2. Wage and salary structure
3. Wage incentive scheme
4. Lay off and retrenchment of workers
5. Demotion, promotion transfer
6. Grievances procedure
7. Safety and health facilities
8. Scheme of bonus, profit sharing
9. Maintenance of discipline
10. Medicaland compensation schemes, etc.
Features of collective bargaining:
1. It is a group action
2. It is flexible and mobile, and not fixed or static
3. It is a two- party process
4. It is a continuous process
5. It is dynamic and not static
6. It is an art
7. It is industrial democracy at work
8. It is a complementary process
Subject matter and parties
Definition;
The collective bargaining agreement bears in its many provisions the imprints of decades of activity
contending for labour equality recognition of the notion underlying collecting negotiations indeed in
the collective bargaining agreement is to be found a culminating purpose of labour activity
*In bargaining process the main actors are employees, employers and their
associations *The main focus of the rules is on the terms and conditions of
employments
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*The essence of collective bargaining lies in the readiness of the two parties to a dispute to reach an
agreement or mutually satisfying settlement it is concerned about the emotions of the people
involved in its as well as with the logic of their interests
*It is carried out on a collective as distinct from an individual basis that is collective bargaining by
group of people
*Collective bargaining is a “civilized bipartite confrontation ‘’between the workers and
management with a view to arriving at an agreement for the object is not ‘welfare’ but
‘compromise’.
Importance of collective bargaining:
Importance to the employees:
Collective bargaining develops a sense of self respect and responsibility among the employees.
• It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group.
• Collective bargaining increases the morale and productivity of employees.
• It restricts management’s freedom for arbitrary action against the employees. Moreover, unilateral
actions by the employer are also discouraged.
• Effective collective bargaining machinery strengthens the trade unions movement.
• The workers feel motivated as they can approach the management on various matters and bargain
for higher benefits.
• It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the
adjustment of wages and employment conditions to economic and technological changes in the
industry, as a result of which the chances for conflicts are reduced.
Importance to employers:
1.It become easier for the management to resolve issues at the bargaining level rather than taking up
complaints of individual workers.
2. Collective bargaining tends to promote a sense of job security among employees and thereby
tends to reduce the cost of lobor turnover to management.
3. Collective bargaining opens up the channel of communication between the workers and the
management and increases workers participation in decision making.
4. Collective bargaining plays a vital role in settling and preventing industrial disputes.
The Advantages of Collective Bargaining
1. Provides Security To Workers

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Since collective bargaining contracts are legally binding agreements, the employees can be sure of
their work conditions. As long as all terms are followed, the management cannot go back or change
any of the condition.
2. Prohibits Strikes
This is the security that is provided to the management. Collective bargaining agreements prevent
any employees from striking or not working to try to get different benefits. Strikes can cause huge
problems within a company, so this is a big draw for management to use collective bargaining.
3. Gives Employees a Voice
All of the employees that the agreement will affect are allowed to have a say in the conditions. All
voices are heard, which promotes a much better moral in the workplace. This also ensures that the
wants and needs of the majority are met.
4. Reduces Bias and Favoritism
All too often you hear stories of someone getting additional benefits simply because of their relationship
with their boss or other irrelevant things. This is greatly reduced, and possibly eliminated, with the use
of collective bargaining. It evens the playing field for all employees.
5. Stabilizes The Business

Without the fear of layoffs, or wage cuts, people feel much more stable in their job and position at a
company. The stability also comes in for the management because they can easily determine budgets
because all wages and benefits are clearly laid out.
The Disadvantages of Collective Bargaining

1. Not All People Will Agree
Collective bargaining cater to the needs of the many and disregard the few. The terms in the agreement
could negatively affect employees who have special circumstances or simply do not agree. In this case,
these employees have no say.
2. A Loss of Authority
When employees know exactly how much power management has, and has a say in the things that they
can and cannot do, their role as the authority figure is greatly diminished. Respect suffers immensely
when collective bargaining is used.

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3. Bureaucracy Takes Forever

Collective bargaining involves the use of bureaucratic systems. This extends the time that it takes to
make decisions and implement any new policies into the work place, causing time and money for the
company.
4. Reduces Managements Hand In Business

Constructive development is hugely hindered when collective bargaining is use. If a policy or term of
the agreement truly needs to be revised or removed, it is nearly impossible to do so. The contract are
generally multi year, which means that this time has to be waited before the changes can be made.
5. Equalized Pay Causes Problems

When you make benefits and pay the same across the board you are begging for issues. Workers
who have worked at the company longer or who are much more skilled than other workers, will feel
taken advantages of with equalized pay that collective bargaining results in.
Methods of collective bargaining:
1. Conjunctive / distributive bargaining
2. Co-operative/ integrative bargaining
3. Productivity bargaining
4. Composite bargaining
5. Concessionary bargaining
Collective bargaining agreements at different levels
.On the basis of the level (in which collective bargaining takes place) it can be classified as:
1. Plant level bargaining
2. Industry level bargaining
3. National level bargaining
1. Plant level bargaining
• It is the micro level bargaining. It takes place in the particular unit between the management and the
trade unions of that unit.
2. Industry level bargaining

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• Several unions of the same industry form and association and negotiate with the employers.
3. National level bargaining

• In this, the representatives of trade unions and employers at the national level will negotiate.
Process of collective bargaining:
The collective bargaining process involves five core steps:
1. Preparation – Choosing a negotiation team and representatives of both the union and employer.
Both parties should be skilled in negotiation and labor laws, and both examine available information
to determine whether they have a strong standing for negotiation.
2. Discussion – Both parties meet to set ground rules for the collective bargaining negotiation process.
3. Proposal – Both representatives make opening statements, outlining options and possible solutions
to the issue at hand.
4. Bargaining – Following proposals, the parties discuss potential compromises, bargaining to create
an agreement that is acceptable to both parties. This becomes a “draft” agreement, which is not
legally binding, but a stepping stone to coming to a final collective bargaining agreement.
5. Final Agreement – Once an agreement is made between the parties, it must be put in writing,
signed by the parties, and put into effect.
Process of negotiation during Bargaining

The process of collective bargaining consists of two stages,
(i) The negotiation state, and
(ii) The contract administration.
i. Negotiation Stage
❖
At the negotiation stage certain proposals are put forward for mutual agreement after careful
consideration. The negotiation stage consists of three steps.
• Preparation for negotiation
• Negotiation procedure
• Follow up action
a) Preparation for negotiation

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❖
First the union will submit their fresh contract to the management before the expiry of existing
contract (usually 30 to 60 days before the expiry). Both the management and unions will take
considerable time to the preparation and negotiation.
❖
They collect the required data relating to large number of issues such as wage, salary, seniority,
overtime allowance, the cost of living, the policies of trade unions and management, nature of
agreement in other companies etc.
❖
The company will collect such information its internal sources – such as balance sheet, contract
agreements, market research reports, Govt. reports etc. The trade union also collects such data
from their own central organisation, research staff from various Department etc.
b) Negotiation technique or procedure
❖
In this step, a negotiation committee is to be formed by both the parties. From the management
side the representative include the chief executives. The unions is represented by the leaders and
centrals leaders. The committee consists of three to six members.
❖
The demands are classified as demands which need bargaining and demands which may be
rejected. During negotiations, normally the easier demands are taken up first. Both parties
should have a
“bargaining cushion”, and make counter proposals. For example, a demand for wage increase by
the union, may be accompanied by a counter proposal for increase in production by the
management. Such negotiations go on till the “point of no return” is being reached. A rigid or
irrevocable stance should always be avoided.
c) Follow-up action
At this stage, the agreement is printed and circulated among all the employees. The supervisors
will be enlightened about the agreements for their effective implementation.
ii. Contract Administration

Agreement will be useful if they are executed properly. As observed by Profs. Williamson and
Harries,
“if anything is more important to industrial relations than the contract itself, it is the
administration of the contract”.
Prof. Campo has laid down the following general principles for administering the contact
effectively;
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• Cooperation between both the parties is essential. Both the parties should have a tolerant attitude
towards each other and have a spirit of accommodation and goodwill.
• Proper procedure should be adopted for the redressed of grievances by providing opportunity to
exchange views.
• When a conference over the redressal of grievance reaches an impasse, the grievance should be
referred to arbitration.
• Both the parties should honor the commitment.
5. To discharge or dismiss workmen-
(a) by way of victimisation;
(b) not in good faith, but in the colourable exercise of the employer's rights;
(c) by falsely i by falsely implicating a workman in a criminal case on false

evidence or on concocted connected evidence;
(d) for patently false reasons;
(e) on untrue or trumped up allegations of absence without leave;
(f) in utter dii in utter disregard of the principles of natural justice in the conduct of
domestic enquiry or with undue haste;
(g) for misconduct of a minor or technical character, without having any regard
to the nature of the particular misconduct or the past record or service of the
workman, thereby leading to a disproportionate punishment.
6. To abolish the work of a regular nature being done by workmen, and to give such work to
contractors as a' measure of breaking a strike.
7. To transfer a workman mala fide from one place to another, under the guise of following
management policy.
8. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond,
as a pre-condition to allowing them to resume work.
9. To show favouritism or partiality to one set of workers regardless of merit.

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10. To employ workmen as "badlis", casuals or temporaries and to continue them as such for
years, with the object of depriving them of the status and privileges of permanent
workmen.
11. To discharge or discriminate against any workman for filing charges or testifying against
an employer in any enquiry or proceeding relating to any industrial dispute.
12. To recruit workmen during a strike which is not an illegal strike.
13. Failure to implement award, settlement or agreement.
14. To indulge in acts of force or violence.
15. To refuse to bargain collectively, in good faith with the recognised trade unions.
16. Proposing or continuing a lock-out deemed to be illegal under this Act.
II.- On the part of workmen and trade unions of workmen
1. To advise or actively support or instigate any strike deemed to be illegal under this Act.
2. To coerce workmen in the exercise of their right to self-organisation or to join a trade union or
refrain from joining any trade union, that is to say:-
(a) for a trade union or its members to picketing in such a manner that non-striking workmen are
physically debarred from entering the work places;
(b) to indulge in acts of force or violence or to hold out threats of intimidation in connection with
a strike against non-striking workmen or against managerial staff.
3. For a recognised union to refuse to bargain collectively in good faith with the employer.
4. To indulge in coercive activities against certification of a bargaining representative.
5. To stage, encourage or instigate such forms of coercive actions as wilful " go slow", squatting on
the work premises after working hours or "gherao" of any of the members of the managerial or

CHENNAI-14
other staff.
6. To stage demonstrations at the residences of the employers or the managerial staff members.
7. To incite or indulge in wilful damage to employer's property connected with the industry.
8. To indulge in acts of force or violence or to hold out threats of intimidation against any workman with
a view to prevent him from attending work.]
Tripartite machinery
Tripartite machinery consists of various bodies like Indian Labour Conference, the Standing Labour
Committee, the International Committees, the Central Implementation and Evaluation Committee and the
Committee on conventions. Generally, these committees include representatives from centre and the states,
and the same number of workers’ and employers’ organisations. These various committees are basically of
advisory nature, yet they carry considerable weight among the government, workers and employers.
Purpose of tripartite bodies:
1. Bring the aggravated parties together for mutual settlement of differences, and encourage a spirit of
cooperation and goodwill.
2. Promote uniformity in labor laws and legislation.
3. Discuss all matters of All india importance as between employers and employees.
4. Determine a plan for settlement for all disputes.
Evolution of tripartite bodies:
1. Indian labour conference(ILC)
2. Standing labour conference(SLC)
3. Committee on conventions
4. Industrial committees
5. Other tripartite committees
International Labour Organisation (ILO)
The International Labour Organisation (ILO) was set up in 1919 by the Versailles Peace Conference as an
autonomous body associated with the League of Nations. The ILO was the only international organisation
that survived the Second World War even after the dissolution of its parent body. It became the first
specialized agency of the United Nations in 1946 in accordance with an agreement entered into between the
MI. Anees Fathima, Asst. Professor, MIM 66

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two organizations. India has been a member of the ILO since its inception. A unique feature of the ILO, as
distinct from other international institutions, is its tripartite character.
The aim and objectives of ILO are set out in the preamble to its Constitution and in the Declaration of
Philadelphia (1944) which was formally annexed to the Constitution in 1946.
The preamble affirms that universal and lasting peace can be established only if its is based upon social
justice, draws attention to the existence of conditions of labour involving injustice, hardship and
privation of a large number of people, and declares that improvement of these conditions is urgently
required through such means as the regulation of hours of work, prevention of unemployment, provision
of an adequate living wage, protection of workers against sickness, disease, and injury arising out of
employment, protection of children, young persons and women, protection of the interests of migrant
workers, recognition of the principle of freedom of association, and organisation of vocational and
technical education.
Function Of ILO:
Following are the main functions of the International Labour Organization:
▪
The ILO sets international labor standards and conventions and offers recommendations. The aim is to
provide basic rights, such as banning forced labor, equality at the workplace with regard to gender and
race, right of collective bargain and the right to organize.
▪
It offers technical assistance to member nations in the form of vocational training facilities. The ILO
sends experts to its member counties to provide consultation on technical matters.
▪
The International Labour Office holds three meetings per year (in March, June and November). This
governing body of the ILO.
▪
Regulates the efficacy of the organization’s policy.
▪
Adopts budget and draft programs to be submitted to the conference.
ROLES OF ILO:
• Full employment & raising standard of living
• Ensure employment, in which workers are in should get satisfaction
• Facilities for training & transfer of labour-migration for employment & settlement
• Policies with wages, hours & condition of work
• Effective recognition of the right of collective bargaining

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• Protection of life & health of workers

• Provision for child welfare & maternity protection
• Provision for adequate nutrition, housing
• Assurance of equality of education & vocational opportunity.
Industrial Health
The greatest activity over the past few decades, in so far as employees benefits are concerned, has
occurred in the areas of health and social security. Industrial health is comparatively an new system of
public health and preventive medicine practiced among industrial groups with the specific object of
improving their health and preventing the occurrence of disease as well as injury to them.
Obviously employees in the modern industrial setting are subject to various types of health hazards and
occupational diseases.
According to one view, the normal health hazards may be caused by-
• Chemical substances at the work place such as carbon monoxide, carbon dioxide, sulphur dioxide,
sulphuric acid, acetic acid etc. When they are inhaled or absorbed by the skin which may result in acute
or chronic sickness including respiratory or heart diseases, cancer and neurological disorders they may
shorten life expectancy;
• Biological factors including sickness caused by bacteria, fungi, viruses, dietary deficiencies, allergies,
emotional strains due to fear, anxiety etc. and
• Environmental factors including illness due to radiation, noise, vibrations and shocks or atmospheric
conditions such as inadequate ventilation, lighting arrangement or very high or low temperature at the
work place.
While exposure of workers to radiation may cause cataract, vibration and shocks may cause nerve injury
and inflammation of tissues of he joints of the operative’s hands and improper lighting may impair the
employee’s vision, it has been pointed out that many manufacturing processes are accompanied by such
noise as is capable of not only impairing the hearing of a workers but also of making it difficult for him
to hear any warning of an impending danger.
Besides such health hazards, various occupational diseases may also be caused as a result of the physical
conditions and the presence of poisonous and non-poisonous dust and toxic substances in the

CHENNAI-14
atmosphere during the process of manufacturing or extraction. Such diseases are usually slow to develop
and generally cumulative in their effects.
Employee Safety Programme
A safe hygienic work environment is the basic and common requirement of every employee irrespective
of his position or status in the organization. And it is the moral as well as legal responsibility of every
employer to provide a workplace to its employees which is not hazardous to their physical or mental
health. Human engineering or ergonomics which the study of work and of work methods can help the
organizations in protecting their employees against the dangers of accidents and industrial diseases. Very
minor accidents may create major industrial disputes. Therefore, designing and operations of man,
machine environment scientifically will ensure mental and physical rest to the human beings. Scientific
management, therefore, is a necessity for the organizations at it will strengthen industrial relations and
will enhance job satisfaction.
Elimination of hazards
Although complete elimination of all hazards is virtually impossibility but following steps can be taken
to help reduce them:
• Job safety analysis: All job procedures and practices should be analyzed by an expert to discover
hazards. He should then suggest changes in their motion patterns, sequence and the like. For example, he
may discover that a particular reach over a machine could easily result in a loss of balance and injury or
he may discover that a corner of a fixture is sharp enough to cut the hands of the worker. On the basis of
job safety analysis the expert should also determine any special qualifications needed by an individual to
perform the job. These qualifications may be later incorporate in the job specifications.
• Placement: a poorly placed employee is more apt to incur injury that a properly place employee.
Employees should be placed on jobs only after carefully estimating and considering the job requirements
with those which the individual apparently possesses.
• Personal protective equipment: Endless variety of personal safety equipment is available nowadays
which can be sued to prevent injury.
• Safeguarding Machinery:Guards must be securely fixed to all power driven machinery.
• Material handling: Though often ignored, the careless handling of heavy and inflammable materials is
an important source of several injuries and fire.

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• Hand tools: Minor injuries often result from improperly using a good tool or using a poorly designed
tool. Therefore, close supervision and instruction should be given to the employees on the proper tool to
use and the proper use of the tool.
• Maintenance: Worn-out machinery, machinery guards and attachments, old and out-of-date fire fighting
equipment also contribute to serious hazards. They often give employee a false sense of security and
protection.
• Layout and design: A good plant layout and design can go long way in preventing accidents,
construction of fireproof walls, adequate fire escapes, aisles, and storage space, doorways and
passageways, location of hazardous items above employee reach, provision for non-skid floor, protection
of radiators by grills can do much to reduce accidents.
• Housekeeping: Good housekeeping does not include only tidy and clean floors and machines; other
items such as dirty windows, dusty lights and dirty reflectors which reduce the effectiveness of lighting
can also result in employee injury.
• Falls: Another major source of industrial injury is tripping over subjects, slipping on floors and falling
on to another level. Many dangers lurk in stacking and storing. Piles may not be properly constructed
and may subsequently collapse. Periodic inspection can help prevent many accidents stemming directly
from these causes.
Industrial legislations and regulations:
1.Fair work legislations, regulations and rules
2.Registered organisations legislation and regulations
3.Related legislations and regulations
4.Small business fair dismissal code
5.Transitional and amending legislations and regulations
6.Fair work (state declarations) endorsements.

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MEASI INSTITUTE OF MANAGEMENT

INDUSTRIAL AND LABOUR RELATIONS

MI. Anees Fathima, Asst. Professor, MIM

VISION & MISSION STATEMENTS

PROGRAMME EDUCATIONAL OBJECTIVES (PEOs)

PO3; Ethical Value; Ability to develop value based leadership ability.

PO8; Contribution to community; Succeed in career endeavors and contribute significantly to

MI. Anees Fathima, Asst. Professor, MIM

Subject Subject Name L T P S C

Possess knowledge on Industrial Harmony and Conflicts. PO1, PO2,

MI. Anees Fathima, Asst. Professor, MIM

UNIT I - INDUSTRIAL RELATIONS

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

Objectives of Industrial Relations

The industrial peace could be attained –

MI. Anees Fathima, Asst. Professor, MIM

Approaches to Industrial Relations

MI. Anees Fathima, Asst. Professor, MIM

Application on psychology to industrial relations:

Industrial-Organizational(called as I-O) Psychologists recognize the interdependence of individuals,

PSYCHOLOGISTS AS SCIENTISTS AND PROFESSIONALS:

I-0 PSYCHOLOGISTS WORK WITH ORGANIZATIONS IN THE AREAS OF:

WORKING WITH INDUSTRIAL ORGANIZATIONAL PSYCHOLOGISTS TYPICAL

EVALUATING A PSYCHOLOGIST'S EXPERIENCE:

I-0 PSYCHOLOGISTS WILL NEED FROM THE ORGANIZATION:

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

UNIT II - INDUSTRIAL HARMONY AND CONFLICT

IMPORTANCE OF HARMONIOUS INDUSTRIAL RELATIONS

Need for Industrial Peace:

MI. Anees Fathima, Asst. Professor, MIM

Causes of Industrial Disputes

Machinery for Prevention and Settlement of Industrial Relations

MI. Anees Fathima, Asst. Professor, MIM

Machinery for Prevention and Settlement of Industrial Relations

(States & Central Levels)

GOVERNMENT MACHINERY TO RESOLVE INDUSTRIAL DISPUTES

MI. Anees Fathima, Asst. Professor, MIM

(a) Discuss grievances arising out of the disciplinary action, or

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

Consequences of illegal strikes and lock-outs.

MI. Anees Fathima, Asst. Professor, MIM

Grievances resulting from alleged violations of

MI. Anees Fathima, Asst. Professor, MIM

• Violation of Central/State laws

MI. Anees Fathima, Asst. Professor, MIM

• Any agreement which disturbs cordial industrial relations should be avoided.

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

Workers’ Participation in Management

MI. Anees Fathima, Asst. Professor, MIM

MI. Anees Fathima, Asst. Professor, MIM

- LABOUR RELATIONS AND JOINT CONSULTATION