industrial relations & trade union

INDUSTRIAL RELETIONSCOMMONELY DENOTES THAT

‘employees – employers relations’in both organised and unorganised sectors.

Basically, relations between:Management

workers

trade unions

1by Dr.M.Latha Natarajan

Features of I.R. Existance of 2 parties ( management and labour ) Charatertised by both conflict and cooperation (techniques of workplace, political environment,

national labour policy, attitude of trade union,etc.) Includes vital environmental issues Involves the study of conditions to labour,

management cooperation. I.R. also study the laws, rules, regulations,

agreements,etc. I.R. includes: social science,

humanities , behavioural science, laws,etc.


Important factors;1) Institutions = govt. employers,

trade union employers, govt bodies, labour court,etc.

2) Character = To study the role of workers, unions and employers.

3) Methods = Collective bargaining, workers participation, discipline, procedures, union regulations,etc.

4) Contents = Employment conditions, pay, working hours, leave, health, safety and welfare measures.


DEFINITION: according to ‘Dunlop’“ I.R. may be defined as the complex of

inter-relations among workers, managers &government.Importance / Impact of I.R.

1.Lead to mental revolution2.Conductive environment for new programs3.High employee morale4.Reduces industrial disputes5.Reduce wastages.


Scope of I.R.This assignment of people not only

influences labour relations but also the social, economical, political, & moral links of whole community.

It includes: i) Labour relationsii) Employers-Employee relationsiii) Group relationsiv) Community or public

relations


The main aspects of I.R.1) Promotion & Development of healthy labour &Management. Responsible trade union, job security effectiveworkers participation in management, collectivebargaining, welfare work, etc.2) Maintenance of industrial peace

Prevention & settlement of industrial disputes3) Development of industrial democracy

establishment of shop councils &joint management councils , recognition of human rights, proper work environment.


Factors affecting I.R.1.Insitutional factors

*labour laws *collective bargaining agreements*labour unions *employers organisations,*state

policy etc.2.Economic factors

*Type of ownership,* domestic or MNC *source of

labour * wages between groups * level ofemployment.

3.Social factors*social groups *social status *Social values *norms.


4)Technological factors*work methods *Type of techniques used*Technological change *R&D Activities

5)Psychological factors*owners attitude *Perception of workers

*workersattitude towards work *Motivation *Morale

*interest*dissatisfaction

6)Political factors*poiltical institutions *system of govt. *

attitude of govt.8by Dr.M.Latha Natarajan

7)Enterprise – related factors*management style *value system

*organisational health *organisational climate *competition *adoptability of change *various policies of HRM8)Global factors

*International relations *Global conflicts *GlobalCulture *economical trading policies

*internationaltrade agreements *international labour

agreements


Components of I.R. systemAn I.R. system is made up of

certain institutions: Workers and their institutions ^ Bulk of work, work monotonous,

unhygienicwork environment, close control by managers,dissatisfaction with the system

^ workers form trade unions – to safeguard the interest of workers_ better wages _ good working conditions_ To get all rights.


The management_ Jobs, terms and conditions of employment_ Mgt. styles, and quality of relations

_ RENSIS LIKERT styles exploitative authority system

(Commodity)benevolent authority system (child)consultative authority system (co, union)participative authority system (friend)

The governmentProtective legislations

Grievance handling machinery11by Dr.M.Latha Natarajan

Organisations for Industrial relations

Success of I.R. program in an enterprise1.ability of human resource2.man-management policies

two kinds of I.R. personnel'si) Line managers:- who are directly responsible for production.---Decide, control, executive.ii) Staff managers (HR):- who function mainly in an advisory capacity.---Guide, advise, counsel.

* A line role -An coordinator role - a staff role


Dimensions of I.R. work Procurement – recruitment and selection of

employees Development – training & development,

career planning, performance appraisal Compensation – pay compensation & fringe

benefits. Integration – Motivation, industrial relations,

grievance handling, collective bargaining, workers participation in management.

Maintenance – Health & safety, communication,

Counseling.13by Dr.M.Latha Natarajan

Separation – Retirement, lay-off, discharge Welfare measures. Management of social security program. Maintenance of employee records. Undertaking studies in the field of HRM /

IR. Public relations – HRM Consultant, govt.,

outside agencies.


Pre – requisites of successful I.R. program

Top management support. Developing sound HRM & IR Policies Development of sound HRM & IR practices Provision of adequate supervision and

training. Follow up of results


Perspectives / Approaches to I.R.

Approaches are:1. Psychological Approach to I.R.-I.R. deeply rooted in perception & attitude-A study by ‘Mason Harie’

‘Executives’ Two groups of behaviour ‘Union

leader’

Concludes, -conflicts between ‘labour & management’ -negative perception -even honest party is looked with suspicion


2)Sociological approach to I.R.

The individual : social group :various individual & group

Different personalities, education, family base, emotions, likes, dislikes, attitudes, behaviour, etc.

Differences in individual attitudes, behaviuor, conflicts,Competition

Problems in I.R.Social consequences


3)Human relations approachHuman relations characters

emotions, perceptions, attitude, personality etc,

Poor HRM practices, heavy workloadNeeds of individuals, Autocratic leadership

* Work satisfaction * Positive motivation * Democratic leadership style * Development of group effectiveness 18by Dr.M.Latha Natarajan

4)Socio – ethical approach to I.R.Good I.R. Maintain both labour &

management Mutual cooperation Greatest understanding

The study group observed that, maximum productivity Economical development proper role in workplace sound unionism good cooperation Proper grievance handling machinery 19by Dr.M.Latha Natarajan

5)Gandhian approach to I.R.

-Fundamental principles = truth, Non –violence & Non – possession.- Gandhiji has accepted the workers have

“right to strike”but peaceful & non – violent

manner.only for reasonable demandsavoid strike as far as possibleavoid formation of union


6)System approach of I.R.“John Dunlop” developed this approach

Environmental forces Participants in the system Outputs

i) Participants in the system- Workers and their organisations, management,

specialised government agencies like labour court.

1.marketing or budgetary2. Technology

3.Distribution of power in society

UnionManagementGovernment

Rules of the workplace


ii) An ideological linking

set of ideas and beliefs – helps to integrate the system together as an entity.

iii) The environmentcomponents are:

a) Technological characteristics - skill of workers, work method, modern

technology & control over their work.

b) Market or environment constrains - demand and value of production.

c) The locus & balance of power - worker’s organisation, employer & the govt.

- Conflicts (Less mature: More mature)


Trade Unionism

Webb: TU is a “continuous association of wage earners for the purpose of maintaining or improving the conditions of their working lives”.

V.V.Giri : TU is such an “organisation which is created voluntarily on the basis of collective strength to secure the interacts of workers”.

Functions / Role of Trade Unions:- Improving working conditions Secure fair wages Responsive cooperation in improving production,

productivity, Discipline & high standard of quality.. 23by Dr.M.Latha Natarajan

Enlarge opportunities for promotion & training. Promote identity of workers interest with their industry Broadening employee’s understanding to facilitate

technology advances. Promote individual & collective welfare. Provide educational, cultural & recreational facility. To safeguard security of tenure and improve service conditions. Install a sense of responsibility towards organisation &

community. Fulfill social responsibilities Influence socio- economic policies of community

through active participation.


Origin & Growth of TU Movement in India

1)Social welfare Period (1875 – 1918)# Industrialisation Large scale production

Social evils – exploitation, poor working conditions, women & child

labour, etc.# Sorabji & Shapurji (1875), N.M.Lokhanday(1884) –

these Workers drew the govt. attention to work conditions & demanded a legislation to protect their interest. # First Bombay factory commission was established in

1875 – Indian factories Act,1881, was passed & then amended in 1891 & 1922

# origin for TU Era of Indian Factories – cotton mill in Bombay (1854), Jute mill in Bengal (1855) were established


# Second Bombay Factory Commission (1884) was set up to analyze problems of Factories Act, 1881

# Workers Mass Meet ( 21, April, 1890) with 10,000 workers & a memorial signed by 17,000 workers demanded full day’s rest ( Saturday working hours up to 6.30pm, 30 min rest at noon, disabled compensation – infant labour movement).

# Mill owners agreed for weakly holiday to workers which was success to TU movement – Bombay Millhands Association “Dinbhandhu” newspaper to educate workers, express legitimate grievances

# Amalgamated society of Railway servants of India & Burma - first registered union

# Printers union of Calcutta(1905), Bombay postal union Calcutta and Madras (1907), Kamgar hitwardhah sabha in (1909), Social service leagul(1910)


# First World War – Employers organ’s formed (1879 – 1881) Bombay & Bengal Chambers of Commerce, Bombay Mill Owners Association, Calcutta Traders Association, British Indian Association, Indian Jute manufacturer Association & Indian Chambers of Commerce – disbanded when their profit motive was met.

# Labour movement bill 1918 used moderate methods – investigate, petition, legal enactments. Commission. This is period of “ temporary organizations” & “ labour movement”

2) Early TU period ( 1918 – 1924)# Leadership of TU: social workers – politicians# Movement permanent roots after World war I due

to – after war effects, Swaraj movements ( employer & employee gap widened), success of Russian revolution, 1917, ILO established in 1919(dignity to working class opportunity representative – annual conference) - Gandhi’s non-cooperation movement & support for employees. 27by Dr.M.Latha Natarajan

# Many unions formed – seamen, press, postman port trust, railway, textiles, etc.,

# First organised union in 1918, - ‘ Madras Textile Union’ – by B.P.Wadia – mid day break extended to 1 hour, co-operative society, library.

# 17 unions formed – 1917 to 1919

# In 1920 – spinners, weavers union & textile labour association were formed by Gandhi;s initiation with his ideology.

# 30, October, 1920 representatives of 64 TU established AITUC under chairmanship of Lala Lajpat Rai with (1,40,854 members) supported by many Congress leaders – delegated for ILO, coordinate individual TU’s.

# Affiliation – 125 TU – 2.5 lakhs members

# Other All Indian organizations – 1922, Railway men’s Federation – postal & telegraph employees –recognised by Railway & Postal boards. 28by Dr.M.Latha Natarajan

# Agitation: TU Act requested – 1920 – N.M.Joshi – Father of Trade Unionism – TU Act, 1926.

# 75% unions formed during this era died.

3) Left Wing Unionism Period ( 1924 – 1934):# 1924 – union’s long & violent strike – communist leaders arrest,

conviction – AITUC emerged as sole representative of Indian Employees,

# 1926 – 1928 – peasants parties united in to All India party – left influence impetus – TU opted left-wing leadership

# Communists regained influence in TU by forming “Girni Kamgar union’s (cotton employees) – ‘GIP Railway men’s union’. The communists entrenched in Bombay, Delhi, Calcutta,Ahemdabad.

# 2 parties – Rightists / Leftists.

# Compromise with communists unacceptable - moderates .

# 24 unions came from AITUC and formed AITUF.


# 1931 – another rift in AITUC, Calcutta session - Difference

of opinion between communists & leftists – so communists framed ‘Red TU congress’ (RTUC).

4) Trade Unions Unity Period (1935 – 1938)# Attempts – TU Unity ,efforts by M.N.Roy group This federation of at Bombay formed a trade union

committee in1932. This committee conclusions agreeable to both wings

of labour – AITUC and AITUF.# NFL (National Federation of Labour + AIRF and AITUC

joined and named as a national Trade Union Federation (NTUF)

# The efforts of V.V.Giri, the path for unity was in 1938 in Nagpur when AITUC decided to associate with NTUF; thus AITUC once again became the sole representative of organised labour. 30by Dr.M.Latha Natarajan

5) Second world war period (1939 – 1945)# 1939-II world war – strains in Indian TU movement –

Therefore one group led by Radical Democracy party wanted AITUC to participate in war to support British – another group opposed this.

So in 1941, Radicals left AITUC unit about 200 unions & forward Indian Federations of Labour (IFL)

# IFL recognized by govt. & financial aid has given# Communist supported war – released from jail# Congressits & Socialists – Quit India cry arrested. # AITUC – now non-communists strength picked.# Later periods of war – rivalry : AITUC & IFL# AITUC membership picked with 601 unions affiliating

to –IFL is losing.# AT the end of the war – 3 main political groups existsi) AITUC ii) IFL iii) Socialists building – Ahmedabad &

Jamshedpur. 31by Dr.M.Latha Natarajan

6) Post Independence period (1947 onwards)

# Restructuring of AITUC failed – therefore protestors of AITUC ideals formed INTUC in 1947,by a pro-Gandhi wing in congress ; Hindustan Mazdoor Sevak sangh (HMSS).

# INTUC – supported by Vallabhai Patel.# INTUC joined ICFTU (International confederation of free

TU), picked strength – AITUC was losing due to approach of INTUC to solve labour problem.

# 1948 congress out socialists = ‘Hindustan Mazdoor sabha’ (HMS) – free from govt & political domination.

# 1949 Socialists out leftwing trade unionists =UTUC (United trade union congress)

# 11949 TU spilt into : INTUC-associated with congress, HMS- socialist party, AITUC – communists, UTUC revolutionary socialists party.


# 1954 : attempts to unite TU communists divided into ‘BMS’ formed, a non-political TU.

# 1970 : AITUC rift – communists divided into CPI & CPM . CPI & CPM started CITU (centre for Indian TU)

# 1972 : congress spilt – INTUC under ruling congress & organisation congress formed NLO

# Post independence period – TU rivalries – based on political / ideological differences.

7) Present Scenario# TU allied with one political party each – hand maids –

TU rivalries.# TU – gained status – influence public policy, industrial

legislations.# Changes in unionism pattern – least interest in purely

political matters – need to consolidate the gains.33by Dr.M.Latha Natarajan

Central Trade Unions:1)Indian National Trade Union Congress (INTUC)2)All India Trade Union Congress (AITUC)3)United Trade Union Congress (UTUC)4)Bharatia Mazdoor Snagh (BMS) 5)National Front of Indian Trade Union (NFITU)6)Centre for Indian Trade Union (CITU)


industrial relations & trade union

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