Published on November 9, 2016
1. Industrial Relations and Trade unions
2. Industrial Relations It is the relationship between employer and employee as a group. The role of different parties- employers, employee and their unions, and state in maintaining this relationship. It the mechanism of handling conflicts between employer and employee.
3. Objectives To develop harmonious relationship between operatives and management. Developing goodwill and understanding. Develop mutuality among the interests of these parties. To raise productivity To curb employee turnover and absenteeism
4. Objectives….. To avoid governments interference. To establish and nurse the growth of an Industrial Democracy (sharing of profits, managerial decisions) To avoid industrial conflict/ industrial strife
5. Obj. To eliminate- strikes, lockouts and gheraos. Development of healthy labor- management relations Maintenance of industrial peace
6. Req. of a successful I.R. Prog. Creating trust between Employees and Management Top Management support. Sound personnel policies Adequate practices should be developed by professionals Detailed supervisory training Follow-up of Results
7. Definition of Trade Union Trade unions are voluntary organizations of workers or employers formed to promote and protect their interests through collective action.
8. Trade Unions All organizations of employees including those of salaried and professional workers as well as those of manual wage earners which are known to include among their functions that the negotiating with their employers with the object of regulating conditions of employment.
9. 1926 TU Act Sec. 2 Any body who has the willingness to group together for the purpose of trade employment or terms of employment or can be united together shall be deemed to be union and as considered in TU Act 1926.
10. Nature of Trade Union According to the Trade Union Act 1926 it is a combination, whether temporary or permanent, formed (i) primarily for the purpose of regulating the relation between (a) workmen and employers or (b) between workmen and workmen, or (c) between employers and employers, or (ii) for imposing restrictive conditions on the conduct of any trade or business.
11. Nature of Trade Union The analysis reveals that Trade Union is :- 1. A combination of workers or employers. 2. Such a combination could be permanent or temporary. 3. Could include federation of two or more unions, and 4. To regulate relations among workmen, between workmen and employers or among employers themselves.
12. Features of T.U T.U are voluntary associations formed by employees to safeguard their interests through collective actions. Such associations can work at the level on individual organizations as well as apex bodies (affiliated to trade unions) Since TU are voluntary- employee has choice to join or not, TU has choice to affiliate or not to affiliate itself with an apex body of TU.
13. Features of TU in India Various types of TU- primary unions, regional unions, Central TU All major central TU are affiliated to political parties Multiplicity of TU in single plant results into inter-union rivalry Proliferation of TU results in Smaller number of membership and financial constraints
14. Features of TU in India Major decision making process is controlled by the outsiders.
15. Principles of Trade Unionism Trade unions function on the basis of three fundamental principles. Unity is strength. Equal pay for equal work or for the same job. Security of service.
16. Objectives of Trade Unions Wages & salaries Working conditions Discipline Personal policies Welfare Employee-employer relations Negotiating machinery Safeguarding organizational health and interest of the industry
17. Reasons for joining Union Dissatisfaction of employee Powerlessness Union Instrumentality
18. Why do Workers Join Trade Unions? To attain economic security- permanent employment with higher salary and benefits. To improve their bargaining power To inform worker’s views, ideas aims and dissatisfaction to the management. To satisfy social needs. To secure power. Betterment of Relationships.
19. TU movement in India TU activities started with the formation of Bombay Mill Association in 1890. Followed by many other TU at Calcutta and Madras . First World War- ILO International Labor Organization (1919) and Swaraj movement etc. facilitated the TU movement All India Trade Union Congress
20. TU movement in India Formation of AITUC prompted the formation of number of TU In 1926 Trade Union Act was enacted to provide legal status to union activities and registration of unions. 1920s due to ideological differences many left AITUC and formed National Trade Union Federation.
21. TU movement in India During Second World War strikes and lockouts were banned under the Defence of Indian Rules. After the independence, the growth of TU followed the pattern of development of political parties. Congress Party formed- Indian National Trade Union Congress (INTUC) 1947
22. TU movement in India Praja Socialist Party formed- Hind Mazdoor Sabha 1948. Then Proliferation of political parties Presently more active TU are--- INTUC- Congress party AITUC- Communist party Center of Indian TU- Communist (Marxists) Bharatiya Mazdoor Sangh9 BJP etc.
23. Present Central Trade Union Organizations All India Trade Union Congress (AITUC) 1920 Bharatiya Mazdoor Sangh (BMS) Hind Mazdoor Sabha (HMS) 1948 Indian Federation of Free Trade Unions (IFFTU) National Front of Indian Trade Unions (NFITU) National Labor Organization (NLO) Trade Unions Co-ordination Centre (TUCC)
24. Functions of TU Functions relating to members Functions relating to organization Functions relating to union activities Functions relating to society
25. Functions of Trade Union The basic functions of trade unions is to protect and promote the interest of the workers and conditions of their employment. 1. Militant Functions 2. Fraternal Function 3. Political functions 4. social functions
26. Militant/Protective Functions Achieve higher wages and better working conditions. Raise the status of workers as a part of industry and Protect labour against victimization and injustice.
27. Fraternal Functions Providing financial and non-financial assistance to workers Extension of medical facilities during sickness and casualties. Provision of education, recreation, and housing facilities. Provision of religious and social benefits. To provide opportunities for promotion and growth.
28. Political Functions Affiliating the union to a political party Helping to enroll the members, collecting donations Seeking the help of political parties during periods of strikes & lockouts
29. Social Functions Carrying out social service activities Discharging social responsibilities through various sections of the society like educating the customers
30. Problems for Trade Union GrowthProblems for Trade Union Growth a) Off-Centering Labour b) Segmentation of Workforce c) Core / Periphery d) Employment Instability e) Investment Attraction f) Individualization of Labour Relations g) Labour Cost Cutting h) Leadership Credibility/ Inside vs. Outside leadership i) Failure of Institutions
31. Trade Union Act, 1926 Allows employees the right to form and organize unions. Min 7 persons is required to form their union and get it registered under this act. If union has been existing for more than 1 year the statement of asset and liability must be shown. The application must contain 1. Name, occupation and address of members. 2. Name of union, its head office details. 3. Details about office bearers
32. Grievance Management
33. Grievance Grievance refers to any discontent or dissatisfaction, whether expressed or not and valid or not, arising out of anything connected with the company that an employee thinks, believes or even feels, is unfair, unjust or inequitable.
34. 3 Cardinal principles of grievance settlement Settlement at the lowest level Settlement as quickly as possible Settlement to the satisfaction of the aggrieved
35. Steps in handling grievances Define the nature of the grievance Collect all the facts (how, where, when, why, whom) Establish tentative solutions to the grievance Collect additional information to check the validity Apply the solution Follow-up (casual observation, direct interaction , general discussion, feedback from other employees)
36. Principles of handling grievance Fair demonstration of grievance procedure Definite and clear Simple It should function promptly and speedily Right attitude of supervisor Confidence of supervisors Long run implications of the decision
37. Causes of grievances Wages and working conditions supervision Management policies and practices Maladjustment of employee
38. Identification of Grievances Exit interview Gripe box system opinion surveys open door policy
39. Grievance procedure The grievance procedure is a problem- solving, dispute-settling machinery which has been set up following an agreement to that effect between labor and management.
40. Steps in Grievance Procedure Step 1- Aggrieved employee explains his grievance to his immediate supervisor. Step 2- Here grievance handled by the sectional/departmental head.Or representative of industrial relations/personal department.
41. Steps in Grievance Procedure Step 3- Grievance committee (having members from both management and union) Step 4- Senior manager or personnel manager along with senior union representative arrives at the decision to refer the matter for arbitration.
42. Steps in Grievance Procedure Step 5- Arbitrator is appointed with the mutual consultation of management and union or the employee.
43. Model grievance procedure 1958 Step 1- An aggrieved employee shall first present his grievance verbally in person to the officer designated by the management for this purpose. An answer shall be given to him within 48 hours of the presentation of the complaint.
44. Model grievance procedure 1958 Step 2- Aggrieved, in person and/or accompanied by his departmental representative present his grievance to the HOD designated by the management for the purpose of handling grievances Decision should be given within 3 days
45. Model grievance procedure 1958 Step 3- Grievance committee (recommendations within 7 days) In the case of difference of opinion within the committee, matter is send to the manager on which he has to give recommendations within 3 days.
46. Model grievance procedure 1958 Step 4- Appeal to the management for revision. Worker has the right, if he desires , to take a union official along with him. Decision should be made within a week from the date of receipt.
47. Model grievance procedure 1958 Step 5- If no agreement is possible, the union and management may refer the grievance to voluntary arbitration within a week from the date of receipt.
48. Important points No interference from the formal conciliation machinery, till all the steps in the grievance handling procedure have been exhausted. If the grievance arise out of an order, the said order shall be complied first.
49. Important points The workers representatives on the grievance committee shall have the right to assess any document connected to the matter. Management has the right to refuse if the document is confidential. But then that document shall not be used against the worker in due course.
50. Important points 72 hours time difference should be there within one step and the other. In calculating time intervals, holidays shall not be reckoned Management shall provide the necessary clerical and other assistance for a smooth functioning of the grievance machinery.
51. Constitution of grievance committee In case where the union is recognized 2 representatives of the management a union representative a union departmental representative
52. Constitution of grievance committee Incase where the union is not recognized or there is no union but a workers committee 2 representatives of management representative of the department secretary or VP of the works committee Max. no. of members of grievance committee should not exceed 6