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Prepared and presented by
N. Ganesha Pandian
Assistant professor
Madurai school of management
Madurai
Content of unit 1 : Industrial relations
1. Concepts
2. Importance
3. Industrial relations problem in the public
sector
4. Growth of trade unions
5. Code of conduct
1.Co-operation
2.Conflict
Co-
operation
Conflict
 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 explains the
relationship between employees and management
which stem directly or indirectly from union-
employer relationship.
 Industrial relations are the relationships between
employees and employers within the
organizational settings.
 The term industrial relations has a broad as well
as a narrow outlook. Originally, industrial
relations was broadly defined to include the
relationships and interactions between employers
and employees
The Industrial Relation relations also called as labor - management,
employee employers relations.
 Encyclopedia Britannica “ the concept of industrial relations
has been extended ton denote the relations has been
extended to denote the relation of the state with employers,
workers and their organizations”
 ILO states that they deal with either the relationship between
state and employers & worker's organization or between the
occupational organization themselves.
Wages and job security
Dearness allowances
Bonus and promotion & opportunities
Fringe benefits
Working conditions
Health and personal issues
Safety and welfare
Non employment
Working hours
Employer-Employee
Relations
Employees
Employee
Associations
Government Courts &
Tribunals
Employer
Associations
Employers
Industrial Relations
Employees
Employers
Government Courts &
Tribunals
Employer
Associations
Trade Union
 To improve the economic conditions of
workers
 State control on industries for regulating
production and promoting harmonious
industrial relations
 Vesting of proprietary interest of workers in
industries where they were employed
• To Avoid disputes between management and
labor, and create a harmonizing relationship
between the groups so productivity can be
increased
• To Provide better wages and living conditions
to labor, so misunderstandings between
management and labor are reduced to a
minimum
• To bring about government control over plants
where losses are running high, or where
products are produced in the public interest.
 Uninterrupted production
 Reduction in Industrial Disputes
 High morale
 Mental Revolution
 Reduced Wastage
 Foster Industrial Peace
 Promote Industrial Democracy
EMPLOYEES
STATE
EMPLOYER
Role of Employee:
 To redress the bargaining advantage on one-on-on basis
 To secure better terms and conditions for their members
 To obtain improved status for the worker in his/her
work
 To increase implementation of democratic way of
decision making at various levels
 Creating and sustaining employee motivation
 Ensuring commitment from employees
 Negotiating terms and conditions of employment
with TU leaders
 Sharing decision making with employees
 Labor policies
 Labor laws
 Industrial tribunals
 Wage boards
 Industrial relations policy
The main reasons are as follows:
 An attitude of contempt towards the workers on the part of the
management.
 Inadequate fixation of wages or improper wage structure.
 Indiscipline
 Unhealthy working conditions at the workplace.
 Lack of human relations skills on the part of supervisors and
managers.
 Desire of workers for higher bonus, wages or daily allowances.
 Desire of employers to pay as little as possible to its workers.
 Inadequate welfare facilities.
 Dispute on sharing the gains of productivity.
 Retrenchment, dismissal and lockouts by the
management.
 Strikes by the workers.
 Inter-union rivals.
 General economic and political environment such as
rising prices, strikes by others and general indiscipline
having their effect on the employees attitudes.
 Mental inertia on the part of the management.
 Developing trust between Labor & Management
 Maintenance of Industrial Peace
 Continuous feedback & monitoring
 Professional approach
 Existence of sound, democratic TU
January 07, 2015
Source: NDTV website
New Delhi: The meeting between the
representatives of five trade unions and
Coal Secretary Anil Swarup to resolve the
coal strike remained inconclusive on
Tuesday. At the end of the over-four-hour
meeting, the union leaders said the strike
will continue today - which would be the
second day of the five-day strike.
January 07, 2015
Source: NDTV website
Definitions:
According to Dale Yoder define Trade
union as “ A trade union is a continuous
association of wage-earners for the
purpose of maintaining or improving the
conditions of their working lives”
“A trade union is any combination, whether
temporary or permanent, formed primarily
for the purpose of regulating relations
between workers and employers or
between workmen and workmen or
between employer and employer or for
imposing restrictive conditions on the
conduct of any trade or business , and
includes any federation of two or more
trade unions”
 As defined in Trade union act 1926 “had a
wide coverage not merely confined to only
those person who are employed to do any
manual, skilled, unskilled, supervisory,
technical, operational or clerical work.
They are employed in trade”.
Trade union act 1926, primary objective of
trade union
1. To regulate the relations :a,between
employers ; b,among workers ; c,
between employers and workmen.
2. To impose restrictive conditions on the
conduct of any trade or business.
Security of employment
Fair wages
To get a common platform
Principle of unity
Functions relating to members
Functions relating to organizations
Functions relating to union
Functions relating to society
Uneven growth (industry wise and area
wise)
Small size of unions
Financial weakness
Multiplicity of unions and inter union rivalry
Leadership issues
Politization of unions
Problem of recognition of trade unions
An outdated TU law
 BMS – Bharathiya mazdoor sangh
 INTUC – Indian national trade union congress
 AITUC – All India Trade union congress
 HMS – Hind mazdoor sangh
 CITU – Centre of Indian trade union
 UTUCLS – united trade union centre – Lenin Sarani
 UTUC - united trade union centre
 AICCTU – All India central council of trade union
 TUCC – Trade union co-ordination committee
 SEWA – self employed women’s associations
 LPF – Labor progressive federation
 NIFTU – National front of Indian trade unions
 CDHN – community development and Health centre
History of Trade union movement classified
under six periods
 Pre – 1918
 1918 – 1924
 1925 – 1934
 1935 – 1938
 1938 – 1946
 1947- since
1860 Bengal
led by Dinbandhu mitra
(indigo commission)
1875 Bombay
Sardoji shapuri
(Poor working condition)
1881 Factories act enacted
(No provisions for child labor and women)
1884 Factories commission
&
N.M Lokhande (Conference of factory workers)
1890 (Bombay mill hands association)
post 1890 (several labor associations formed and
strikes erupted)
Witnessed formation of large number of TU
s
Important Trade unions are:
1. Madras labor union
2. Ahmadabad textile labor association
3. Indian seamen’s association
4. Calcutta Clerks’ Union
5. All India Postal and RMS association
1. Economic condition of workers (great
demand for Indian products, so prices raised
not wages)
2. Political condition prevailed in country
(Independence struggle started)
3. Worker’s revolution in Russia (First worker’s
state in world)
4. Worldwide unrest in post war period
5. 1919 ILO formed – NM Joshi appointed as
representative without consultation of unions
6. AITUC formed
1924 AITUC split into leftist and rightist
wings
1929 , a wing of AITUC – AITUF
Remarkable decrease in industrial conflict
Trade dispute act enacted (Prohibiting
strikes and lockouts)
(Trade union act and Trade dispute act)
1935 (revival of trade unions)
(AIRTUC merged with AITUC)
1938 (AITUF merged with AITUC&NTUC)
reasons behind revival,
Congress party
1. Bombay Industrial dispute act enacted
2. Compulsory recognition of unions by employer
3. Giving the rights to workers to get their case represented
4. Setting up of an industrial court
5. Prohibition of strikes and lockouts
 period of II world war, AITUC split up due
to nationalist movement, period of
unemployment
Government used, Defense of India rules
1942 remained in force, coercive method
in industrial dispute settlement
1946 (Bombay industrial relations act
enacted)
1947 (INTUC formed after
independence)
Industrial dispute act enacted
1948 (socialist party formed HMS)
1949 (UTUC formed)
 It specifies various obligations for the management
and the workers with the objective of promoting
cooperation between their representatives.
 To maintain harmonious relations and promote
industrial peace, a Code of Discipline has been laid
down which applies to both public and private
sector enterprises
 Maintain peace and order in industry.
 Promote constructive criticism at all levels of management
and employment.
 Avoid work stoppage in industry.
 Secure the settlement of disputes and grievances by a
mutually agreed procedure.
 Avoiding litigation.
 Facilitate a free growth of trade unions.
 Eliminate all forms of coercion, intimidation and violations of
rules and regulations governing industrial relations.
 There should be no strike or lockout without prior notice.
 No unilateral action should be taken in connection with any
industrial matter.
 Employees should not follow go slow tactic.
 No deliberate damage should be caused to a plant or property
 Acts of violations, intimidation and coercion should not be
resorted
 The existing machinery for the settlement of disputes should
be utilized.
 Actions that disturb cordial relationships should be avoided.
A dispute between workers and employers
which is connected with one or more of the
following terms and conditions of
employment, engagement or non
engagement or termination or suspension
of employment of workers, allocation of
work, discipline, membership or non-
membership of union, union facilities and
management union procedures.
 Written verbal warning
 Written warning
 Suspension
 Demotion
 Dismissal
Approaches:
1. Hot stove rule
2. Progressive discipline
3. Counseling approaches
According to ILO, Collective bargaining
defined as negotiations about working
conditions and terms of employment
between an employer and a group of
employer or more employers’ organization
on one hand, one or more representatives
of workers organization on another hand to
reach agreement.
Employers’ association
Employees’ association
Bargaining agent
Those which set out standards of
employment which are directly applicable
to relations between an individual
employer worker ex(wages)
Those which regulate the relations
between parties to agreement themselves
and have no bearing on individual relations
between employer and worker
ex(grievance procedure)
To establish and build union recognition as
an authority in the work place
To raise workers standard of living
Industrial peace and harmony; democratic
way
Settling of disputes
Defending and promoting worker’s interest
Freedom of Association
Strong and stable trade unions
Recognition of trade unions
Willingness to Give an take
Absence of unfair labor practices or
vitimizations
Part - A
1. State the importance of industrial relations?
2. Define “trade union”?
3. Explain the few issue relating to the industrial
relations in public sector organizations?
4. Define “Industrial relations”?
5. Define “Public sector”?
6. What is code of conduct?
7. State the benefits of trade union?
8. List the objectives and functions of Industrial
relations?
9. Mention a few recognised trade unions in India?
Part –B
1. Industrial relations and importance
2. History and growth of trade union in
India?

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Unit 1 industrial relations

  • 1. Prepared and presented by N. Ganesha Pandian Assistant professor Madurai school of management Madurai
  • 2. Content of unit 1 : Industrial relations 1. Concepts 2. Importance 3. Industrial relations problem in the public sector 4. Growth of trade unions 5. Code of conduct
  • 4.  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.”
  • 5.  The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union- employer relationship.  Industrial relations are the relationships between employees and employers within the organizational settings.  The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was broadly defined to include the relationships and interactions between employers and employees
  • 6. The Industrial Relation relations also called as labor - management, employee employers relations.  Encyclopedia Britannica “ the concept of industrial relations has been extended ton denote the relations has been extended to denote the relation of the state with employers, workers and their organizations”  ILO states that they deal with either the relationship between state and employers & worker's organization or between the occupational organization themselves.
  • 7. Wages and job security Dearness allowances Bonus and promotion & opportunities Fringe benefits Working conditions Health and personal issues Safety and welfare Non employment Working hours
  • 8. Employer-Employee Relations Employees Employee Associations Government Courts & Tribunals Employer Associations Employers Industrial Relations Employees Employers Government Courts & Tribunals Employer Associations Trade Union
  • 9.  To improve the economic conditions of workers  State control on industries for regulating production and promoting harmonious industrial relations  Vesting of proprietary interest of workers in industries where they were employed
  • 10. • To Avoid disputes between management and labor, and create a harmonizing relationship between the groups so productivity can be increased • To Provide better wages and living conditions to labor, so misunderstandings between management and labor are reduced to a minimum • To bring about government control over plants where losses are running high, or where products are produced in the public interest.
  • 11.  Uninterrupted production  Reduction in Industrial Disputes  High morale  Mental Revolution  Reduced Wastage  Foster Industrial Peace  Promote Industrial Democracy
  • 13. Role of Employee:  To redress the bargaining advantage on one-on-on basis  To secure better terms and conditions for their members  To obtain improved status for the worker in his/her work  To increase implementation of democratic way of decision making at various levels
  • 14.  Creating and sustaining employee motivation  Ensuring commitment from employees  Negotiating terms and conditions of employment with TU leaders  Sharing decision making with employees
  • 15.  Labor policies  Labor laws  Industrial tribunals  Wage boards  Industrial relations policy
  • 16. The main reasons are as follows:  An attitude of contempt towards the workers on the part of the management.  Inadequate fixation of wages or improper wage structure.  Indiscipline  Unhealthy working conditions at the workplace.  Lack of human relations skills on the part of supervisors and managers.  Desire of workers for higher bonus, wages or daily allowances.  Desire of employers to pay as little as possible to its workers.
  • 17.  Inadequate welfare facilities.  Dispute on sharing the gains of productivity.  Retrenchment, dismissal and lockouts by the management.  Strikes by the workers.  Inter-union rivals.  General economic and political environment such as rising prices, strikes by others and general indiscipline having their effect on the employees attitudes.  Mental inertia on the part of the management.
  • 18.  Developing trust between Labor & Management  Maintenance of Industrial Peace  Continuous feedback & monitoring  Professional approach  Existence of sound, democratic TU
  • 19. January 07, 2015 Source: NDTV website
  • 20. New Delhi: The meeting between the representatives of five trade unions and Coal Secretary Anil Swarup to resolve the coal strike remained inconclusive on Tuesday. At the end of the over-four-hour meeting, the union leaders said the strike will continue today - which would be the second day of the five-day strike. January 07, 2015 Source: NDTV website
  • 21. Definitions: According to Dale Yoder define Trade union as “ A trade union is a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their working lives”
  • 22. “A trade union is any combination, whether temporary or permanent, formed primarily for the purpose of regulating relations between workers and employers or between workmen and workmen or between employer and employer or for imposing restrictive conditions on the conduct of any trade or business , and includes any federation of two or more trade unions”
  • 23.  As defined in Trade union act 1926 “had a wide coverage not merely confined to only those person who are employed to do any manual, skilled, unskilled, supervisory, technical, operational or clerical work. They are employed in trade”.
  • 24. Trade union act 1926, primary objective of trade union 1. To regulate the relations :a,between employers ; b,among workers ; c, between employers and workmen. 2. To impose restrictive conditions on the conduct of any trade or business.
  • 25. Security of employment Fair wages To get a common platform Principle of unity
  • 26. Functions relating to members Functions relating to organizations Functions relating to union Functions relating to society
  • 27. Uneven growth (industry wise and area wise) Small size of unions Financial weakness Multiplicity of unions and inter union rivalry Leadership issues Politization of unions Problem of recognition of trade unions An outdated TU law
  • 28.  BMS – Bharathiya mazdoor sangh  INTUC – Indian national trade union congress  AITUC – All India Trade union congress  HMS – Hind mazdoor sangh  CITU – Centre of Indian trade union  UTUCLS – united trade union centre – Lenin Sarani  UTUC - united trade union centre  AICCTU – All India central council of trade union  TUCC – Trade union co-ordination committee  SEWA – self employed women’s associations  LPF – Labor progressive federation  NIFTU – National front of Indian trade unions  CDHN – community development and Health centre
  • 29. History of Trade union movement classified under six periods  Pre – 1918  1918 – 1924  1925 – 1934  1935 – 1938  1938 – 1946  1947- since
  • 30. 1860 Bengal led by Dinbandhu mitra (indigo commission) 1875 Bombay Sardoji shapuri (Poor working condition) 1881 Factories act enacted (No provisions for child labor and women) 1884 Factories commission & N.M Lokhande (Conference of factory workers) 1890 (Bombay mill hands association) post 1890 (several labor associations formed and strikes erupted)
  • 31. Witnessed formation of large number of TU s Important Trade unions are: 1. Madras labor union 2. Ahmadabad textile labor association 3. Indian seamen’s association 4. Calcutta Clerks’ Union 5. All India Postal and RMS association
  • 32. 1. Economic condition of workers (great demand for Indian products, so prices raised not wages) 2. Political condition prevailed in country (Independence struggle started) 3. Worker’s revolution in Russia (First worker’s state in world) 4. Worldwide unrest in post war period 5. 1919 ILO formed – NM Joshi appointed as representative without consultation of unions 6. AITUC formed
  • 33. 1924 AITUC split into leftist and rightist wings 1929 , a wing of AITUC – AITUF Remarkable decrease in industrial conflict Trade dispute act enacted (Prohibiting strikes and lockouts) (Trade union act and Trade dispute act)
  • 34. 1935 (revival of trade unions) (AIRTUC merged with AITUC) 1938 (AITUF merged with AITUC&NTUC) reasons behind revival, Congress party 1. Bombay Industrial dispute act enacted 2. Compulsory recognition of unions by employer 3. Giving the rights to workers to get their case represented 4. Setting up of an industrial court 5. Prohibition of strikes and lockouts
  • 35.  period of II world war, AITUC split up due to nationalist movement, period of unemployment Government used, Defense of India rules 1942 remained in force, coercive method in industrial dispute settlement 1946 (Bombay industrial relations act enacted)
  • 36. 1947 (INTUC formed after independence) Industrial dispute act enacted 1948 (socialist party formed HMS) 1949 (UTUC formed)
  • 37.  It specifies various obligations for the management and the workers with the objective of promoting cooperation between their representatives.  To maintain harmonious relations and promote industrial peace, a Code of Discipline has been laid down which applies to both public and private sector enterprises
  • 38.  Maintain peace and order in industry.  Promote constructive criticism at all levels of management and employment.  Avoid work stoppage in industry.  Secure the settlement of disputes and grievances by a mutually agreed procedure.  Avoiding litigation.  Facilitate a free growth of trade unions.  Eliminate all forms of coercion, intimidation and violations of rules and regulations governing industrial relations.
  • 39.  There should be no strike or lockout without prior notice.  No unilateral action should be taken in connection with any industrial matter.  Employees should not follow go slow tactic.  No deliberate damage should be caused to a plant or property  Acts of violations, intimidation and coercion should not be resorted  The existing machinery for the settlement of disputes should be utilized.  Actions that disturb cordial relationships should be avoided.
  • 40. A dispute between workers and employers which is connected with one or more of the following terms and conditions of employment, engagement or non engagement or termination or suspension of employment of workers, allocation of work, discipline, membership or non- membership of union, union facilities and management union procedures.
  • 41.  Written verbal warning  Written warning  Suspension  Demotion  Dismissal Approaches: 1. Hot stove rule 2. Progressive discipline 3. Counseling approaches
  • 42. According to ILO, Collective bargaining defined as negotiations about working conditions and terms of employment between an employer and a group of employer or more employers’ organization on one hand, one or more representatives of workers organization on another hand to reach agreement.
  • 44. Those which set out standards of employment which are directly applicable to relations between an individual employer worker ex(wages) Those which regulate the relations between parties to agreement themselves and have no bearing on individual relations between employer and worker ex(grievance procedure)
  • 45. To establish and build union recognition as an authority in the work place To raise workers standard of living Industrial peace and harmony; democratic way Settling of disputes Defending and promoting worker’s interest
  • 46. Freedom of Association Strong and stable trade unions Recognition of trade unions Willingness to Give an take Absence of unfair labor practices or vitimizations
  • 47. Part - A 1. State the importance of industrial relations? 2. Define “trade union”? 3. Explain the few issue relating to the industrial relations in public sector organizations? 4. Define “Industrial relations”? 5. Define “Public sector”? 6. What is code of conduct? 7. State the benefits of trade union? 8. List the objectives and functions of Industrial relations? 9. Mention a few recognised trade unions in India?
  • 48. Part –B 1. Industrial relations and importance 2. History and growth of trade union in India?