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Industrial Relations
Chapter One
Introduction
Industrial Relations : Introduction
• Labour management relation, employee
employer relations, union management relations,...
Three main participants in IR
• Workers and their organisation: trade union
• Employers and their organisation: Associatio...
Pakistani Constitution and IR
Constitutional rights : adequate means of livelihood,
equal pay for equal work, similar work...
Contd…
5
Article 37(e) makes provision for securing just and humane conditions of
work ensuring that children and women ar...
The Modern IR Concept
Old
Classical
Modern
Ownership Focus Means Result /
End
Factory
owners
Govt & Big
Business
Houses
Go...
Objectives of IR
• Develop and retain employee-employer relationship.
• To enhance the economic status of the worker by
im...
Objectives of IR cont…….
• To provide an opportunity to the workers to have
a say in the management and decision-making.
(...
Factors of industrial relations
• The employer
• Workmen, union
• Government, and
• The consumer
© Dr. Parikshit Joshi 9
Conditions for Good IR
• Past record of IR
• Satisfaction of economic needs of workers
• Social and psychological needs of...
Contd…
• Education, training and development
• Inter-personal relations
11
Causes of poor IR
• Nature of work
• Political nature of labor unions
• Level of wages
• Occupational instability
• Unheal...
Effects of poor IR
• Multiplier effect
• Resistance to change
• Declines in normal working
• Frustration and social cost
©...
Factors affecting Industrial Relations
• Institutional Factors – State policy, labour
laws, collective bargaining agreemen...
• Technological Factors – introduction of new
and improved technology
• Psychological Factors – owners attitude,
perceptio...
• The state has direct interest in preserving
industrial peace in the country.
• To promote healthy growth of trade unions...
• Changing role of state Govt.
– Laissez Faire: During 19th century govt played a
laissez faire role in industrial relatio...
• Tripartism: Consultancy.
• Encouragement of Voluntarism: govt given code
of discipline, code of conduct and code of
effi...
Some current IR issues
• Minimum wages
• Flexible performance pay
• Cross-cultural management
• Dispute prevention
• IR/HR...
Contd…
• Women
• Migration
• Human Resource Management
• Transition economies
© Dr. Parikshit Joshi 20
• Thank You
© Dr. Parikshit Joshi 21
Evolution of IR in India
• Employee – employer relationship
• Employers are the people who own the
instrument and material...
• In India occupations were carried on by small
manufacturers in their cottages, mostly on
hereditary basis.
• Slavery was...
• Industrial relations is a by product of industrial
revolution , it originates from excessive
exploitation of workers by ...
• Other events which accelerated the pace of
industrial relations:
– Success of Russian Revolution in 1917
– Formulation o...
• By the end of 19th century and start of 20th
century govt. started paying attention towards
inhuman working conditions o...
• After Independence Industrial Dispute Act, 1947
• Which laid down a comprehensive dispute
settlement machinery to be app...
TRADE UNIONS
• "Trade Union" means any combination, whether
temporary or permanent, formed primarily for the
purpose of re...
Objectives
• Representation
• Negotiation
• Voice in decisions affecting workers
• Member services
(a) Education and train...
Functions of Trade unions
(i) Militant functions
a) To achieve higher wages and better working
conditions
b) To raise the ...
(ii) Fraternal functions
• To take up welfare measures for improving the
morale of workers
• To generate self confidence a...
Importance Of Trade Unions
• Trade unions help in accelerated pace of economic
development in many ways as follows:
– by h...
Contd….
Social responsibilities of trade unions include:
• promoting and maintaining national
integration by reducing the ...
Trade Unionism In India
Indian trade union movement can be divided
into three phases.
* The first phase (1850 to1900)
* Th...
Trade Union Act 25 March 1926
• The trade Unions Act, 1926 provides for registration
of trade unions with a view to render...
At present there are twelve Central Trade
Union Organizations in India:
• All India Trade Union Congress (AITUC)
• Bharati...
Employer’s Organisation
• Employers' Organizations are institutions set
up to organize and advance the collective
interest...
• Employers’ organizations are a critical component
of any social dialogue process, which can help to
ensure that national...
• Its task is to maintain close and direct
relations with employers' organizations in
member States, to make the ILO's res...
Problems of Trade Union
• Multiplicity of Trade Unions and Inter-union
rivalry
• Small Size of Unions
• Financial Weakness...
International Labour Organisation(ILO)
• Established in April 11, 1919 by the Versailles
Peace Conference as an autonomous...
Objectives of ILO
• Full employment and the raising of standards
of living.
• Workers must be given that employment in
whi...
• Policies in regards to wages and earnings bonus
and minimum wages.
• Right of collective bargaining.
• Social security m...
• Since 1945 ILO has expanded its working in
three major directions:
1) The establishment of Tripartite International
Comm...
ILO Membership
• Today the ILO comprises 183 Member States.
• In addition to the States which were Members of
the Internat...
Organisational Structure
• ILO is a tripartite organisation consisting of
representatives of the governments,
employers an...
International Labour Conference
• The ILC sessions held once a year and is the
policy making organ of ILO
• Each member co...
The Governing Body
• Governing body is the chief executive body of
the organisation and meets several times a
year to form...
The International Labour Office
• The International Labour office functions as
the secretariat of the ILO.
• Its main func...
Major Activities of ILO
• Creation of International standards of Labour
• Employment Creation
• Collection and Distributio...
THANK YOU………
© Dr. Parikshit Joshi 51
Warm Regards:
Dr. Parikshit Joshi
Assistant Professor
Department of Management Scien...
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  1. 1. Industrial Relations Chapter One Introduction
  2. 2. Industrial Relations : Introduction • Labour management relation, employee employer relations, union management relations, personal relations, human relations and so on. • IR is the relationship between employees and management in the day - to - day working of industry . • IR describe relationships between management and employees or among employees and their organisations that characterise or grow out of employment. 2
  3. 3. Three main participants in IR • Workers and their organisation: trade union • Employers and their organisation: Associations • Government: plays an increasing role in IR by protecting the interest of employees and employers. 3
  4. 4. Pakistani Constitution and IR Constitutional rights : adequate means of livelihood, equal pay for equal work, similar working conditions, living wages, etc. • Article 11 of the constitution prohibits all forms of slavery, forced labour & child labour; • Article 17 provides for a fundamental right to exercise the freedom of associated form unions; • Article 18 proscribes the right of its citizens to enter upon any lawful profession or occupation and to conduct any lawful trade or business; • Article 25 lays down the right to equality before the law and prohibition of discrimination on the grounds of sex alone; 4
  5. 5. Contd… 5 Article 37(e) makes provision for securing just and humane conditions of work ensuring that children and women are not employed in vocations unsuited to their age or sex & for maternity benefits for women in employment
  6. 6. The Modern IR Concept Old Classical Modern Ownership Focus Means Result / End Factory owners Govt & Big Business Houses Govt/ Private/ Trust/ MNC Production and HR Developme nt Policy to retain employees Labour Unions Owners hold top Positions Production & Employment Production Only two layers Hire and Fire Feeling of belongingness 6
  7. 7. Objectives of IR • Develop and retain employee-employer relationship. • To enhance the economic status of the worker by improving wages, benefits and by helping the worker in evolving sound budget. • To regulate the production by minimizing industrial conflicts through state control. • To socialize industries by making the government as an employer. 7
  8. 8. Objectives of IR cont……. • To provide an opportunity to the workers to have a say in the management and decision-making. (workers participation in decision making) • To improve workers as strength with a view to solve their problems through mutual negotiations and consultation with the management. • To avoid industrial conflict and their consequences • To extend and maintain industrial democracy. 8
  9. 9. Factors of industrial relations • The employer • Workmen, union • Government, and • The consumer © Dr. Parikshit Joshi 9
  10. 10. Conditions for Good IR • Past record of IR • Satisfaction of economic needs of workers • Social and psychological needs of workers • Off-the-job conditions of workers • Strong and enlightened labor unions • Negotiations skills & attitudes of workers and management • Public policy & legislation 10
  11. 11. Contd… • Education, training and development • Inter-personal relations 11
  12. 12. Causes of poor IR • Nature of work • Political nature of labor unions • Level of wages • Occupational instability • Unhealthy behavioral climate • Unfair practices • Outdated and outmoded laws © Dr. Parikshit Joshi 12
  13. 13. Effects of poor IR • Multiplier effect • Resistance to change • Declines in normal working • Frustration and social cost © Dr. Parikshit Joshi 13
  14. 14. Factors affecting Industrial Relations • Institutional Factors – State policy, labour laws, collective bargaining agreement, labour unions. • Economic Factors – type of business organization sole proprietorship, partnership, MNC, Govt Economic Policies, labour supply in market. • Social Factors – Cast, colour, social values, norms, social status 14
  15. 15. • Technological Factors – introduction of new and improved technology • Psychological Factors – owners attitude, perception of workforce, motivation, morale. • Political Factors – political system, system of government political philosophy, attitude of government towards trade unions. • Global Factors – international relations, global conflicts, international labour agreements. 15
  16. 16. • The state has direct interest in preserving industrial peace in the country. • To promote healthy growth of trade unions and set up a well organised industrial relations to achieve industrial peace and prosperity. • Industrialized developed and underdeveloped economies steps have been taken by the state to promote a healthy growth of trade union. • The state intervention has been deemed necessary because there are numerous labour organizations which are relatively weak and all employers cannot be trusted. Role of State in IR 16© Dr. Parikshit Joshi
  17. 17. • Changing role of state Govt. – Laissez Faire: During 19th century govt played a laissez faire role in industrial relations . Under this the workers and employees were left alone to manage their affairs. – Paternalism: By the end of 19th century laissez faire was replaced by paternalism. Thinkers like Robert, Rusin and others attract the attention of Govt and public towards inhuman working conditions of factories & mine workers. Govt has also set up a royal commission on labour. 17© Dr. Parikshit Joshi
  18. 18. • Tripartism: Consultancy. • Encouragement of Voluntarism: govt given code of discipline, code of conduct and code of efficiency and welfare. • Interventions: Government also plays an interventions role, in the form of conciliation and adjudication. • Employer: Government also plays the role of employer. 18
  19. 19. Some current IR issues • Minimum wages • Flexible performance pay • Cross-cultural management • Dispute prevention • IR/HRM training • Balancing efficiency with equity and labour market flexibility • Freedom of association, labour rightsand changing patterns of work © Dr. Parikshit Joshi 19
  20. 20. Contd… • Women • Migration • Human Resource Management • Transition economies © Dr. Parikshit Joshi 20
  21. 21. • Thank You © Dr. Parikshit Joshi 21
  22. 22. Evolution of IR in India • Employee – employer relationship • Employers are the people who own the instrument and material of production and employ the workers. • Relationship between employee-employer was informal, personal and intimate since the business and industrial establishments were small. • The growth of the giant sized joint stock companies and business corporations, which employed thousands of workers changed the relationships. 22
  23. 23. • In India occupations were carried on by small manufacturers in their cottages, mostly on hereditary basis. • Slavery was common. • Master-slave relations later on converted to master-servant. • The Indian craft and arts were badly damaged during the invasions of foreign invaders, which lasted about 700 years • After invasion of East India Company in 1883, the British Industrialist developed some industries (cotton, jute, railways plantation, coal mines, etc.) 23
  24. 24. • Industrial relations is a by product of industrial revolution , it originates from excessive exploitation of workers by the owners of industries. • Trade unions were resisted and crushed by employers. • The first world war is the first milestone enroute to industrial relations in India. • After war prices of consumer good goes up and workers were unable to afford it. 24
  25. 25. • Other events which accelerated the pace of industrial relations: – Success of Russian Revolution in 1917 – Formulation of ILO – AITUC was established in 1920 – In 1924 labour party Government formed in U.K. – The Indian Trade Union Act 1926 – Royal commission on Labour (1929-31) was formed. 25
  26. 26. • By the end of 19th century and start of 20th century govt. started paying attention towards inhuman working conditions of mine & factory workers. • British Government set up a Royal Commission on labour (1929-1931) to conduct a study on the working conditions of Indian Labour. • As a result of the same conciliation and adjudication were formulated. 26
  27. 27. • After Independence Industrial Dispute Act, 1947 • Which laid down a comprehensive dispute settlement machinery to be applicable to all states and passed three important Central Labour Laws: – The Minimum Wages Act 1948, – The Employees State Insurance Act 1948 – The Employees Provident Funds Act 1952 • Five year plans of India • In 1969 first National Commission on Labour was formed and many banks, sick textile mills, sick steel plants were nationalized. • New Economic Policies in 1991 27
  28. 28. TRADE UNIONS • "Trade Union" means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business • Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices. 28
  29. 29. Objectives • Representation • Negotiation • Voice in decisions affecting workers • Member services (a) Education and training (b) Legal assistance (c) Financial discounts (d) Welfare benefits 29
  30. 30. Functions of Trade unions (i) Militant functions a) To achieve higher wages and better working conditions b) To raise the status of workers as a part of industry c) To protect labors against victimization and injustice 30
  31. 31. (ii) Fraternal functions • To take up welfare measures for improving the morale of workers • To generate self confidence among workers • To encourage sincerity and discipline among workers • To provide opportunities for promotion and growth • To protect women workers against discrimination 31
  32. 32. Importance Of Trade Unions • Trade unions help in accelerated pace of economic development in many ways as follows: – by helping in the recruitment and selection of workers. – by inculcating discipline among the workforce – by enabling settlement of industrial disputes in a rational manner – by helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment. 32
  33. 33. Contd…. Social responsibilities of trade unions include: • promoting and maintaining national integration by reducing the number of industrial disputes • incorporating a sense of corporate social responsibility in workers • achieving industrial peace 33
  34. 34. Trade Unionism In India Indian trade union movement can be divided into three phases. * The first phase (1850 to1900) * The second phase (1900 to 1946) * The third phase (in 1947). 34
  35. 35. Trade Union Act 25 March 1926 • The trade Unions Act, 1926 provides for registration of trade unions with a view to render lawful organisation of labour to enable collective bargaining. It also confers on a registered trade union certain protection and privileges. 35
  36. 36. At present there are twelve Central Trade Union Organizations in India: • All India Trade Union Congress (AITUC) • Bharatiya Mazdoor Sangh (BMS) • Centre of Indian Trade Unions (CITU) • Hind Mazdoor Kisan Panchayat (HMKP) • Hind Mazdoor Sabha (HMS) • Indian Federation of Free Trade Unions (IFFTU) • Indian National Trade Union Congress (INTUC) • National Front of Indian Trade Unions (NFITU) • National Labor Organization (NLO) • Trade Unions Co-ordination Centre (TUCC) • United Trade Union Congress (UTUC) and • United Trade Union Congress - Lenin Sarani (UTUC - LS) 36© Dr. Parikshit Joshi
  37. 37. Employer’s Organisation • Employers' Organizations are institutions set up to organize and advance the collective interests of employers. • They are crucial for shaping an environment conducive to competitive and sustainable enterprises that can contribute to economic and social development, and by providing services that improve and guide individual performance of enterprises. 37© Dr. Parikshit Joshi
  38. 38. • Employers’ organizations are a critical component of any social dialogue process, which can help to ensure that national social and economic objectives are properly and effectively formulated and enjoy wide support among the business community which they represent. • As one of the three constituents of the ILO, employers' organizations have a special relationship with the Organization. The ILO's Bureau for Employers' Organizations - a specialized unit within the ILO Secretariat - is responsible for the nurturing and development of that relationship 38© Dr. Parikshit Joshi
  39. 39. • Its task is to maintain close and direct relations with employers' organizations in member States, to make the ILO's resources available to them and to keep the ILO constantly aware of their views, concerns and priorities. 39© Dr. Parikshit Joshi
  40. 40. Problems of Trade Union • Multiplicity of Trade Unions and Inter-union rivalry • Small Size of Unions • Financial Weakness • Leadership Issues • Politics involved in Trade Unions • Problems of Recognition of Trade Unions. 40© Dr. Parikshit Joshi
  41. 41. International Labour Organisation(ILO) • Established in April 11, 1919 by the Versailles Peace Conference as an autonomous body associated with the League of Nations. • Its first assembly took place in Washington on April 29,1919 • There were 45 members of the ILO in 1919. • India has been a member of the ILO since its inception. 41© Dr. Parikshit Joshi
  42. 42. Objectives of ILO • Full employment and the raising of standards of living. • Workers must be given that employment in which they can have the satisfaction of giving the fullest measure of their skill and make their contribution to the common well being. • Facilities for training and the transfer of labour including migration for employment and settlement. 42© Dr. Parikshit Joshi
  43. 43. • Policies in regards to wages and earnings bonus and minimum wages. • Right of collective bargaining. • Social security measures and medical care • Adequate protection by the life and health of workers in all occupations. • Provision for child welfare and maternity protection • Provision of adequate nutrition, housing and facilities for recreation and culture • The assurance of educational and vocational opportunity. 43© Dr. Parikshit Joshi
  44. 44. • Since 1945 ILO has expanded its working in three major directions: 1) The establishment of Tripartite International Committees to deal with problems of some of the major industries 2) The holding of regional conferences and meetings of experts to study special regional problems particularly those of underdeveloped region. 3) The development of operational activities 44© Dr. Parikshit Joshi
  45. 45. ILO Membership • Today the ILO comprises 183 Member States. • In addition to the States which were Members of the International Labour Organization on 1 November 1945, any original member of the United Nations and any State admitted to membership of the United Nations by a decision of the General Assembly may become a Member of the ILO. • Communicating to the Director-General its formal acceptance of the obligations of the Constitution of the Organization. 45© Dr. Parikshit Joshi
  46. 46. Organisational Structure • ILO is a tripartite organisation consisting of representatives of the governments, employers and workers of member countries in the ratio of 2:1:1. • Three main organs of ILO: i. The International Labour Conference ii. The Governing Body iii. The International Labour Office 46© Dr. Parikshit Joshi
  47. 47. International Labour Conference • The ILC sessions held once a year and is the policy making organ of ILO • Each member country is represented by four member delegates – two representing the Government, one representing the employers and on one representing the workers. • Principal function is to formulate international social standards in the form of International Labour Conventions and Recommendations. 47© Dr. Parikshit Joshi
  48. 48. The Governing Body • Governing body is the chief executive body of the organisation and meets several times a year to formulate policy for effective programming of work and setting of agenda for the annual conference. • Membership of 40. • 20 Government representatives, 10 employers representatives and 10 representatives of employees 48© Dr. Parikshit Joshi
  49. 49. The International Labour Office • The International Labour office functions as the secretariat of the ILO. • Its main functions are preparation of the documents on varied items of the agents of the meeting of the conference collection and distribution of information on all subjects. 49© Dr. Parikshit Joshi
  50. 50. Major Activities of ILO • Creation of International standards of Labour • Employment Creation • Collection and Distribution of Information and Publication • Research & Studies • Training • Improvement of Working conditions and working environment 50© Dr. Parikshit Joshi
  51. 51. THANK YOU……… © Dr. Parikshit Joshi 51 Warm Regards: Dr. Parikshit Joshi Assistant Professor Department of Management Science Sri Ram Murti Smarak College of Engg. & Technology Bareilly (U.P.), India E-mail: mannu.pj@gmail.com Blog: www.joshimannu.blogspot.com

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