Industrial Relations and Labour Welfare

 

 

 

 

INTRODUCTION CONCEPT OF INDUSTRIAL RELATIONS TRADE UNION AND ITS IMPORTANCE TREND IN NUMBER OF REPORTING FACTORIES – EMPLOYMENT TRADE UNION – CONCEPT 1.5.1 A few commonly cited definitions trade union are 1.5.2 General Features of Trade Unions 1.5.3 Functions of Trade Unions GROWTH AND DEVELOPMENT OF THE TRADE UNION MOVEMENT 1.6.1 Social Welfare period, from 1875 to 1918 1.6.2 Early Trade Union period, from 1918 to 1924 1.6.3 Left-wing Trade Unionism period, from 1924 to 1934 1.6.4 Trade Unions’ Unity period – 1935 to 1938 1.6.5 Second World War period – 1939 to 1945 1.6.6 Post – independence period – 1947 to 2000 FUNCTIONS OF TRADE UNIONS FUNCTIONS OF TRADE UNIONS IN INDIA TYPES AND STRUCTURE OF TRADE UNIONS 1.9.1 The Union Classified According to Purpose 1.9.2 Union Classified on the Basis of Membership Structure CRAFTS VERSUS INDUSTRIAL UNIONS ALL INDIA CENTRAL COUNCIL OF TRADE UNIONS (AICCTU) 1.11.1 Aims and Objectives

CODES OF CONDUCT – TRADE UNIONS 1.12.1 Labour conditions in India 1.12.2 The possible effects of CCC 1.12.3 General conclusions 1.12.4 About every meeting some distinct remarks were made ix

1 1 13 13 15 15 16 19 20 21 22 23 23 23 24 25 26 29 29 31 33 34 35 36 37 38 39 39

1.13

1.14

THE INDIA COMMITTEE OF THE NETHERLANDS (ICN) 1.13.1 Organisation 1.13.2 Awareness Raising 1.13.3 Campaigns 1.13.4 Social labels and codes of conduct 1.13.5 Co-operation CONCLUSION

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UNIT II INDUSTRIAL CONFLICTS 2.1 2.2 2.3 2.4

2.5 2.6

2.7

2.8

INTRODUCTION INDUSTRIAL DISPUTE CERTAIN ASPECTS OF INDUSTRIAL DISPUTES ARE DISCUSSED AS BELOW GOVERNMENT MACHINERY TO RESOLVE INDUSTRIAL DISPUTES 2.4.1 Introduction 2.4.2 A. Conciliation 2.4.3 B. Arbitration 2.4.4 C. Adjudication MEDIATION 2.5.1 Kinds of Mediator CONCILIATION 2.6.1 Qualities of Conciliator 2.6.2 Role of the Conciliator 2.6.3 Sequential Pattern of Conciliation ARBITRATION 2.7.1 Concept 2.7.2 Types of Arbitration REFERENCE OF DISPUTE TO ARBITRATION UNDER INDUSTRIAL DISPUTES ACT, 1947 2.8.1 Qualification of Arbitrators 2.8.2 Procedure for Investigation 2.8.3 Submission of Award 2.8.4 Criticism of Compulsory Arbitration x

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2.9 2.10

2.11 2.12 2.13

2.8.5 National Arbitration Promotion Board ADJUDICATION 2.9.1 Types of Adjudication INDUSTRIAL TRIBUNALS 2.10.1 Constitution 2.10.2 Jurisdiction 2.10.3 National Tribunals MODEL PRINCIPLES FOR REFERENCE OF DISPUTES TO ADJUDICATION COMMENCEMENT AND CONCLUSION OF PROCEEDINGS Central Industrial Relations Machinery in India

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UNIT III LABOUR WELFARE 3.1 3.2 3.3

3.4 3.5 3.6

3.7 3.8

3.9

INTRODUCTION WELFARE AND WORKING CONDITIONS IMPORTANCE OF LABOUR WELFARE 3.3.1 A – Labour 3.3.2 B –Training 3.3.3 C – Employment 3.3.4 D – Special Employment Scheme WELFARE MEASURES – VOLUNTARY STATUATORY WELFARE MEASURES

NON-STATUTORY WELFARE MEASURES 3.6.1 Non-statutory Welfare in Indian Industry: Some Examples 3.6.2 Comments on Non-Statutory Welfare 3.6.3 Non-Statutory Welfare: A Model WORK ENVIRONMENT 3.7.1 Arousal Hypothesis LABOUR WELFARE FUNDS 3.8.1 Tripartite Labour Welfare Fund Advisory Committee 3.8.2 Conclusion WORKER’S EDUCATION AND TRAINING SCHEMES 3.9.1 Worker’s Education: Concept xi

79 80 80 81 82 88 88 88 90 94 94 94 95 98 100 101 101 103 104 104

3.10

3.11

3.9.2 Objective of Workers’ Education 3.9.3 Techniques of Workers Education 3.9.4 Workers’ Education in India 3.9.5 The Scheme for Workers’ Education 3.9.6 Three Levels of Workers’ Education 3.9.7 Special Category Programmes WORKERS’ TRAINING: CONCEPT 3.10.1 Training Schemes of DGET EVALUATION OF THE TRAINING SCHEMES

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UNIT – IV INDUSTRIAL SAFETY 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11

4.12 4.13 4.14

INTRODUCTION FEATURES OF SAFETY ORGANIZATION SAFETY COMMITTEES ACCIDENT PREVENTION PROGRAMME ROLE OF SAFETY DIRECTOR STATUTORY SAFETY PROVISIONS WORKERS’ HEALTH 4.7.1 Statutory Health Measures HAZARDOUS PROCESSES STATUTORY REQUIREMENTS FOR HAZARDOUS MANUFACTURING PROCESS OCCUPATIONAL HAZARDS 4.10.1 Match and firecracker industry in Sivakasi, Tamilnadu OCCUPATIONAL HEALTH PROBLEMS 4.11.1 Gem polishing Industry, Jaipur, Rajshtan 4.11.2 Hand made Carpet Weaving Industry, Mirzapur & Bhadoi, Uttarpradesh MENTAL HEALTH PROBLEMS 4.12.1 Slate – Stone Mines and Industry NOTIFIABLE DISEASES PSYCHOLOGICAL COUNSELLING 4.14.1 Councelling Methodology 4.14.2 Employment settings xii

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UNIT – V WELFARE OF SPECIAL CATEGORIES OF LABOUR 5.1 5.2 5.3 5.4 5.5

5.6

CHILD LABOUR 5.1.1 Constitutional Rights of a Child THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986 INITIATIVES TOWARDS ELIMINATION OF CHILD LABOUR – ACTION PLAN AND PRESENT STRATEGY FOCUSING OF GENERAL DEVELOPMENTAL PROGRAMMES

FOR BENEFITING CHILD LABOUR THE COVERAGE OF THE NCLP SCHEME HAS INCREASED FROM 12 DISTRICTS IN 1988 TO 100 DISTRICTS IN THE 9TH PLAN TO 250 DISTRICTS DURING THE 10TH PLAN. THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

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UNIT I

INDUSTRIAL RELATIONS Learning Objectives After going though this unit you should be in a position to explain the following terminologies: • Concept of Industrial Relations • Importance of IR • Labour Turnover • Absenteeism • Trade Union • Codes of Conduct 1.1 INTRODUCTION Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labours and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labour) and employers (management). 1.2 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. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated.

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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. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labour-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. The relationships which arise at and out of the workplace generally include the relationships 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 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. The industrial situation as reflected in the statement of mandays lost on account of strikes and lockouts has shown improvement in recent years. Despite increase in the number of strikes and lockouts in 1997 compared to 1996, the mandays lost due to these agitations have actually declined. The total number of strikes and lockouts increased from 1166 in 1996 to 1305 in 1997, but the mandays lost on account of these strikes and lockouts declined from 20.3 million in 1996 to 17 million in 1997 (Table 1.1). Among the states, Andhra pradesh, Tamil Nadu, Gujarat and West Bengal recorded most of the agitations. Cotton textiles, engineering and jute hemp and Mesta textiles were the industrial groups which witnessed maximum loss of mandays on account of strikes and lockouts. Wage and wage related issues, personnel issues, retrenchment and indiscipline have been identified as major reasons behind strikes and lockouts. Protests against privatization and entries of multinationals are issues that have gained importance in recent years. The steady improvement in industrial relations has been possible mainly because of the Government’s proactive role through timely and effective conciliation of industrial disputes and involvement of the social partners at various bipartite-tripartite fora for the formulation of labour and industrial policies. One important issue, which needs to be addressed, is the extant labour laws especially Industrial Disputes Act (IDA) 1947, which governs lay off, retrenchment and closure. Central and State Governments have often been inhibited in granting necessary permissions for closure, even when economic compulsions justified granting of such permissions. It has often been observed that the present legal provisions and procedures restrict labour market flexibility and thereby discourage growth of employment. A thorough review of the provisions of the IDA and other labour legislations 2

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is called for to impart greater flexibility to the labour market and thereby encourage more employment.

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Considering the radical changes that have taken place in the domestic industrial scenario and the labour market, the Government has decided to set up the Second National Commission on Labour to suggest among others, rationalization of the existing laws in the organized sector so as to make them more relevant and appropriate in the changing context of globalization and opening up of the Indian economy.

MEANING AND DEFINITION OF INDUSTRIAL RELATION The relationship between Employer and employee or trade unions is called Industrial Relation. Harmonious relationship is necessary for both employers and employees to safeguard the interests of the both the parties of the production. In order to maintain good relationship with the employees, the main functions of every organization should avoid any dispute with them or settle it as early as possible so as to ensure industrial peace and higher productivity. Personnel management is mainly concerned with the human relation in industry because the main theme of personnel management is to get the work done by the human power and it fails in its objectives if good industrial relation is maintained. In other words good Industrial Relation means industrial peace which is necessary for better and higher productions.

Other commonly referred definitions: i. Industrial Relation is that part of management which is concerned with the manpower of the enterprise – whether machine operator, skilled worker or manager. ii. Industrial Relation is a relation between employer and employees, employees and employees and employees and trade unions. – Industrial dispute Act 1947 iii. While moving from jungle of the definitions, here, Industrial Relation is viewed as the “process by which people and their organizations interact at the place of work to

Establish the terms and conditions of employment.” The Industrial Relation relations also called as labor – management, employee-employers relations. A few notable features pertaining to Industrial Relations are as under: 1. Industrial Relation do not emerge in vacuum they are born of employment relationship in an industrial setting. Without the existence of the two parties, i.e., labour and management, this relationship cannot exist. It is the industry, which provides the environment for industrial relations.

2. Industrial Relation are characterized by both conflict and co-operations. This is the basis of adverse relationship. So the focus of Industrial Relations in on the study of the attitudes, relationships, practices and procedure developed by the contending parties to resolve or at least minimize conflicts. 3

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3. As the labor and management do not operate in isolations but are parts of large system, so the study of Industrial Relation also includes vital environment issues like technology of the workplace, country’s socio-economic and political environment, nation’s labor policy, attitude of trade unions workers and employers. 4. Industrial Relation also involve the study of conditions conductive to the labor, managements co-operations as well as the practices and procedures required to elicit the desired co-operation from both the parties.

5. Industrial Relations also study the laws, rules regulations agreements, awards of courts, customs and traditions, as well as policy framework laid down by the governments for eliciting co-operations between labor and management. Besides this, it makes an in-depth analysis of the interference patterns of the executive and judiciary in the regulations of labor–managements relations. In fact the concepts of Industrial Relations are very broad-based, drawing heavily from a variety of discipline like social sciences, humanities, behavioral sciences, laws etc.

Industrial Relation encompasses all such factors that influence behavior of people at work. A few such important factors are details below: 1. Institution: It includes government, employers, trade unions, unions’ federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. 2. Characters : It aims to study the role of workers unions and employers’ federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc.

3. Methods : Focus on collective bargaining, workers’ participation in the Industrial Relation schemes, discipline procedure, grievance re-dressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc.

4. Contents : Includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers’ participation in management, collective bargaining, etc.,

Objectives of Industrial Relation: A. To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.

B. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country. 4

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C. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.

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D. To establish and nurse the growth of an Industrial Democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well.

E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits. F. To establish government control of such plants and units as are running at a loss or in which productions has to be regulated in the public interest. G. Improvements in the economic conditions of workers in the existing state of industrial managements and political government.

H. Control exercised by the state over industrial undertaking with a view to regulating production and promoting harmonious industrial relations. I. Socializations or rationalization of industries by making he state itself a major employer J. Vesting of a proprietary interest of the workers in the industries in which they are employed. The main aspects of Industrial Relations are:i.

Labor Relations, i.e. relations between union and management

ii. Employer-employees relations, i.e. relations between management and employees iii. Group relations, i.e. relations between various groups of workmen iv. Community or Public relations, i.e. relations between industry and society. v. Promotions and development of healthy labor-managements relations. vi. Maintenance of industrial peace and avoidance of industrial strife vii. Development of true industrial Democracy

Effects of poor Industrial Relations Poor Industrial Relation produces highly disquieting effects on the economic life of the country. We may enumerate the ill-effects of poor Industrial Relations as under: 1.

Multiplier effects: Modern industry and for that matter modern economy are interdependent. Hence although the direct loss caused due to industrial conflict in any one plant may not be very great, the total loss caused due to its multipliers effect on the total economy is always very great.

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2.

Fall in normal tempo: Poor Industrial Relations adversely effect the normal tempo of work so that work ar below the optimum level. Costs build up. Absenteeism and labor turnover increase. Plants discipline breaks down and both the quality and quality of production suffer.

3.

Resistance of change: Dynamic industrial situation calls for change more or less continuously. Methods have to be improved. Economics have to be introduced. New products have to be designed, produced and put in the market. Each of these tasks involves a whole chain of changes and this is resisted bitterly if these are industrial conflict.

4.

Frustration and social cost: Every man comes to the work place not only to earn a living. He wants to satisfy his social and egoistic needs also. When he finds difficulty in satisfying these needs he feels frustrated. Poor Industrial Relations take a heavy toll in terms of human frustration. They reduce cordiality and aggravate social tension.

Suggestions to Improve Industrial Relation a. Both management and unions should develop constructive attitudes towards each other b. All basic policies and procedures relating to Industrial Relation should be clear to everybody in the organization and to the union leader. The personnel manager must make certain that line people will understand and agree with these policies. c. The personnel manager should remove any distrust by convincing the union of the company’s integrity and his own sincerity and honesty. Suspicious, rumors and doubts should all be put to rest.

d. The personnel manager should not vie with the union to gain workers’ loyal to both the organization. Several research studies also confirm the idea of dual allegiance. There is strong evidence to discard the belief that one can owe allegiance to one group only.

e. Management should encourage right kind of union leadership. While it is not for the management to interfere with union activities, or choose the union leadership, its action and attitude will go a long way towards developing the right kind of union leadership. “Management gets the union it deserves” is not just an empty phrase. Managements

IMPORTANCE OF INDUSTRIAL RELATIONS: The healthy industrial relations are key to the progress. Their significance may be discussed as under – 1.

Uninterrupted Production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There 6

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is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.

2.

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Reduction in Industrial Disputes Good industrial relation reduces the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.

3.

4.

5.

6.

High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a coowner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.

Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer’s authority. It will naturally have impact on production because they recognize the interest of each other.

New Programmes New programmes for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs. Reduced Wastage

Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

Thus, from the above discussion, it is evident that good industrial relation is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work.

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An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND HUMAN RELATIONS: The term “Industrial Relations” is different from “Human Relations”. Industrial relations refer to the relations between the employees and the employer in an industry. Human relations refer to a personnel-management policy to be adopted in industrial organizations to develop a sense of belongingness in the workers improves their efficiency and treat them as human beings and make a partner in industry.

Industrial relations cover the matters regulated by law or by collective agreement between employees and employers. On the other hand, problems of human relations are personal in character and are related to the behavior of worker where morale and social elements predominated. Human relations approach is personnel philosophy which can be applied by the management of an undertaking. The problem of industrial relations is usually dealt with a three levels – the level of undertaking, the industry and at the national level. To sum up the term “Industrial Relations” is more wide and comprehensive and the term “Human Relations” is a part of it.

Determining factors of industrial relations Good industrial relations depend on a great variety of factors. Some of the more obvious ones are listed below: 1.

History of industrial relations No enterprise can escape its good and bad history of industrial relations. A good history is marked by harmonious relationship between management and workers. A bad history by contrast is characterized by militant strikes and lockouts. Both types of history have a tendency to perpetuate themselves. Once militancy is established as a mode of operations there is a tendency for militancy to continue. Or once harmonious relationship is established there is a tendency for harmony to continue.

2.

Economic satisfaction of workers Psychologists recognize that human needs have a certain priority. Need number one is the basic survival need. Much of men conducted are dominated by this need. Man works because he wants to survive. This is all the more for underdeveloped countries where workers are still living under subsistence conditions. Hence economic satisfaction of workers is another important prerequisite for good industrial relations.

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3.

Social and Psychological satisfaction Identifying the social and psychological urges of workers is a very important steps in the direction of building good industrial relations. A man does not live by bread alone. He has several other needs besides his physical needs which should also be given due attention by the employer. An organization is a joint venture involving a climate of human and social relationships wherein each participant feels that he is fulfilling his needs and contributing to the needs of others. This supportive climate requires economic rewards as well as social and psychological rewards such as workers’ participation in management, job enrichment, suggestion schemes, re-dressal of grievances etc.

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Off-the-Job Conditions An employer employs a whole person rather than certain separate characteristics. A person’s traits are all part of one system making up a whole man. His hom