MANAGEMENT OF INDUSTRIAL RELATIONS

MANAGEMENT OF MANAGEMENT OF INDUSTRIAL RELATIONSINDUSTRIAL RELATIONS

INDUSTRIAL RELATIONS AND THE STATE,INDUSTRIAL RELATIONS AND THE STATE, LEGAL FRAME WORK OF INDUSTRIAL LEGAL FRAME WORK OF INDUSTRIAL

RELATIONSRELATIONS

UNIT - II

Industrial RelationsIndustrial Relations

Definition:Definition: According to J.T. Dunlop industrial relations are According to J.T. Dunlop industrial relations are

“the complex interrelations among managers, “the complex interrelations among managers, workers and agencies of the governments”. workers and agencies of the governments”.

According to Dale Yoder “industrial relations is According to Dale Yoder “industrial relations is the process of management dealing with one the process of management dealing with one or more unions with a view to negotiate and or more unions with a view to negotiate and subsequently administer collective bargaining subsequently administer collective bargaining agreement or labor contract” agreement or labor contract”

What is a state…….?What is a state…….?

‘‘A set of institutions, comprising the legislature, A set of institutions, comprising the legislature, the executive, central administration, the the executive, central administration, the judiciary, the police and local government … in judiciary, the police and local government … in it.it.

It is the institutional system of political domination It is the institutional system of political domination with a monopoly over the legitimate use of with a monopoly over the legitimate use of violence and over taxation and money supply’ violence and over taxation and money supply’

(Hill 1981: 239)(Hill 1981: 239)

What is a state…….?What is a state…….?

The State has ‘the monopoly of physical violence’ The State has ‘the monopoly of physical violence’ in society (Castells 2000)in society (Castells 2000)

As well as underpinning relationships of power As well as underpinning relationships of power through this and through legislation it embodies through this and through legislation it embodies ‘symbolic violence’ through ideology ‘symbolic violence’ through ideology conditioning human values and shaping conditioning human values and shaping perceptions and notions of legitimacy (Gramsci perceptions and notions of legitimacy (Gramsci and hegemonic power)and hegemonic power)

Need of State Intervention in Need of State Intervention in Industrial RelationsIndustrial Relations

In a developing country like India, state intervention has In a developing country like India, state intervention has been deemed necessary because:been deemed necessary because:

The labor organizations were relatively weak. The labor organizations were relatively weak.

When the labor situation worsens or the law and order When the labor situation worsens or the law and order situation gets out of hand, the state cannot be situation gets out of hand, the state cannot be expected to be a silent spectator. As the guardian of expected to be a silent spectator. As the guardian of the people and of the economy of the country, it has to the people and of the economy of the country, it has to intervene and adopt industrial relations policies which intervene and adopt industrial relations policies which are likely to ensure social justice and industrial peace.are likely to ensure social justice and industrial peace.

Need of State Intervention in Need of State Intervention in Industrial RelationsIndustrial Relations

The directive principles of the constitution enjoin upon the The directive principles of the constitution enjoin upon the state to establish a welfare state and to look after the state to establish a welfare state and to look after the interests of the weakest sections of society, including the interests of the weakest sections of society, including the handicapped. handicapped.

The federal (central) nature of the constitution has made it The federal (central) nature of the constitution has made it imperative (very important) for the state to intervene in labor imperative (very important) for the state to intervene in labor matters to ensure smooth and continuing production.matters to ensure smooth and continuing production.

Therefore, to meet the above stated demands for the intervention of Therefore, to meet the above stated demands for the intervention of the state, the launching of the various five year plans is done since the state, the launching of the various five year plans is done since 1951, which are aimed at bringing about an all-round development 1951, which are aimed at bringing about an all-round development of the country, set certain targets to be achieved in the field of of the country, set certain targets to be achieved in the field of production. production.

Role of state in industrial relationsRole of state in industrial relations

It was considered essential that industrial / economic It was considered essential that industrial / economic development should progress smoothly during the development should progress smoothly during the planning era. The implementation of the targets planning era. The implementation of the targets necessitated industrial peace, i.e. necessitated industrial peace, i.e.

No strikesNo strikes No lockoutsNo lockouts No stoppages of work so that production can go on unhampered.No stoppages of work so that production can go on unhampered.

In the circumstances mentioned above, state intervention In the circumstances mentioned above, state intervention to bring about a settlement of industrial disputes has to bring about a settlement of industrial disputes has become essential. become essential.

StrikesStrikes

Strikers gathering in Tyldesley in the 1926 General Strike in the U.K.

LEGAL FRAME WORK LEGAL FRAME WORK

OFOF

INDUSTRIAL RELATIONSINDUSTRIAL RELATIONS

Industrial Relations Act, 1946 Industrial Relations Act, 1946

An act to make further and better provision for promoting An act to make further and better provision for promoting harmonious relations between workers and their employers harmonious relations between workers and their employers and for this purpose to establish machinery for regulating and for this purpose to establish machinery for regulating rates of remuneration and conditions of employment and for rates of remuneration and conditions of employment and for the prevention and settlement of trade disputes, and to the prevention and settlement of trade disputes, and to provide for certain other matters connected with the matters provide for certain other matters connected with the matters aforesaid. [27aforesaid. [27th Augustth August, 1946.] , 1946.]

This Act shall come into operation on the day This Act shall come into operation on the day appointed for the purpose by order of the Minister. appointed for the purpose by order of the Minister.

Industrial Relations Act, 1946 (ctd…)Industrial Relations Act, 1946 (ctd…)

Interpretation:Interpretation:

In this Act, unless the context otherwise requires — In this Act, unless the context otherwise requires —

"award" means an award made by a Court; "award" means an award made by a Court;

"collective agreement" means an agreement as to industrial "collective agreement" means an agreement as to industrial matters; matters;

"Commissioner" means the Commissioner for Labour "Commissioner" means the Commissioner for Labour appointed under section 3 of the Employment Act (Cap. 91), appointed under section 3 of the Employment Act (Cap. 91),

and includes a Deputy Commissioner for Labour, and includes a Deputy Commissioner for Labour,

a Principal Assistant Commissioner for Labour and an a Principal Assistant Commissioner for Labour and an Assistant Commissioner for Labour under that Act; Assistant Commissioner for Labour under that Act;



In this Act, unless the context otherwise requires In this Act, unless the context otherwise requires ——

"conciliation officer" means a conciliation officer "conciliation officer" means a conciliation officer appointed under section 28; appointed under section 28;

"Court" means an Industrial Arbitration Court "Court" means an Industrial Arbitration Court established under section 3; established under section 3;



In this Act, unless the context otherwise requires —In this Act, unless the context otherwise requires —

The expression “The expression “the Ministerthe Minister” means the Minister for Industry and ” means the Minister for Industry and Commerce;Commerce;

The word “The word “prescribedprescribed” means prescribed by regulations made by the ” means prescribed by regulations made by the Minister under this Act; Minister under this Act;

The expression “The expression “registered joint industrial councilregistered joint industrial council” has the meaning given ” has the meaning given to it by section 59 of this Act;to it by section 59 of this Act;

The expression “The expression “trade disputetrade dispute” means any dispute or difference between ” means any dispute or difference between employers and workers or between workers and workers connected with employers and workers or between workers and workers connected with the employment or non-employment, or the terms of the employment, or the employment or non-employment, or the terms of the employment, or with the conditions of employment, of any person;with the conditions of employment, of any person;



In this Act, unless the context otherwise requires —In this Act, unless the context otherwise requires — the expression “the expression “trade uniontrade union” means a trade union which is the holder of a ” means a trade union which is the holder of a

negotiation licence granted under the Trade Union Act, 1941 (No. 22 of negotiation licence granted under the Trade Union Act, 1941 (No. 22 of 1941).1941).

(1) In this Act (except Part VI) the word “(1) In this Act (except Part VI) the word “workerworker” means any ” means any person of the age of fourteen years or upwards who has entered person of the age of fourteen years or upwards who has entered into or works under a contract with an employer whether the into or works under a contract with an employer whether the contract be for manual labour, clerical work, or otherwise, be contract be for manual labour, clerical work, or otherwise, be expressed or implied, oral or in writing, and whether it be a expressed or implied, oral or in writing, and whether it be a contract of service or of apprenticeship or a contract personally to contract of service or of apprenticeship or a contract personally to execute any work or labour, other than—execute any work or labour, other than—


((aa) a person who is employed by or under the State, ) a person who is employed by or under the State,

((bb) a teacher in a secondary school, or) a teacher in a secondary school, or

((cc) a teacher in a national school, or) a teacher in a national school, or

((dd) a person who is employed by a local authority in any office ) a person who is employed by a local authority in any office or or employment, or employment, or

((ee) an officer or servant of a vocational education committee, or ) an officer or servant of a vocational education committee, or

((ff) an officer or servant of a committee of agriculture, or () an officer or servant of a committee of agriculture, or (gg) an ) an officer of a officer of a school attendance committee, or school attendance committee, or

((hh) an agricultural worker, within the meaning of the ) an agricultural worker, within the meaning of the Agricultural Wages Act, 1936 (No. 53 of 1936).Agricultural Wages Act, 1936 (No. 53 of 1936).


For the purposes of this section, each of the following For the purposes of this section, each of the following bodies (whether corporate or unincorporated) shall be a local bodies (whether corporate or unincorporated) shall be a local authority—authority—

(A)(A)a council of a county, a council of a county, a corporation of a county or other borough, a corporation of a county or other borough, a council of an urban district, a council of an urban district, a public assistance authority, a public assistance authority, the commissioners of a town, the commissioners of a town, a port sanitary authority,a port sanitary authority,

((BB) ) a committee or joint committee or board or joint board appointed a committee or joint committee or board or joint board appointed (whether before or after the passing of this Act) by or under statute (whether before or after the passing of this Act) by or under statute to perform the functions or any of the functions of one or more of to perform the functions or any of the functions of one or more of the bodies mentioned in paragraph (the bodies mentioned in paragraph (aa) of this subsection, and) of this subsection, and

Industrial Relation PolicyIndustrial Relation Policy

Prior to 1991, the industrial relations system in India Prior to 1991, the industrial relations system in India sought to control conflicts and disputes through sought to control conflicts and disputes through excessive labor legislations. excessive labor legislations.

These labor laws were protective in nature and These labor laws were protective in nature and covered a wide range of aspects of workplace covered a wide range of aspects of workplace industrial relations like laws on health and safety of industrial relations like laws on health and safety of labors, layoffs and retrenchment policies, industrial labors, layoffs and retrenchment policies, industrial disputes and the like. disputes and the like.

The basic purpose of these laws was to protect labors. The basic purpose of these laws was to protect labors.

However, these protectionist policies created an However, these protectionist policies created an atmosphere that led to increased inefficiency in firms, atmosphere that led to increased inefficiency in firms, over employment and inability to introduce efficacy. over employment and inability to introduce efficacy.

Industrial Relation Policy (ctd…)Industrial Relation Policy (ctd…)

With the coming of globalization, the 40 year old policy With the coming of globalization, the 40 year old policy of protectionism proved inadequate for Indian industry of protectionism proved inadequate for Indian industry to remain competitive as the lack of flexibility posed a to remain competitive as the lack of flexibility posed a serious threat to manufacturers serious threat to manufacturers

With the advent of liberalization in1992, the industrial With the advent of liberalization in1992, the industrial relations policy began to change. Now, the policy was relations policy began to change. Now, the policy was tilted towards employers. tilted towards employers.

Employers opted for workforce reduction, introduced Employers opted for workforce reduction, introduced policies of voluntary retirement schemes and flexibility policies of voluntary retirement schemes and flexibility in workplace also increased. in workplace also increased.

Thus, globalization brought major changes in Thus, globalization brought major changes in industrial relationsindustrial relations policy in India. The changes can be policy in India. The changes can be summarized as follows: summarized as follows:


Collective bargaining in India has mostly been Collective bargaining in India has mostly been decentralized, but now in sectors where it was not so, decentralized, but now in sectors where it was not so, are also facing pressures to follow decentralization.are also facing pressures to follow decentralization.

Some industries are cutting employment to a significant Some industries are cutting employment to a significant extent to cope with the domestic and foreign extent to cope with the domestic and foreign competition e.g. pharmaceuticals. competition e.g. pharmaceuticals.

On the other hand, in other industries where the On the other hand, in other industries where the demand for employment is increasing are experiencing demand for employment is increasing are experiencing employment growths. employment growths.

In the expansionary economy there is a clear shortage In the expansionary economy there is a clear shortage of managers and skilled labor.of managers and skilled labor.


The number of local and enterprise level unions has The number of local and enterprise level unions has increased and there is a significant reduction in the increased and there is a significant reduction in the influence of the unions.influence of the unions.

Under pressure some unions and federations are Under pressure some unions and federations are putting up a united front e.g. banking.putting up a united front e.g. banking.

Another trend is that the employers have started to Another trend is that the employers have started to push for internal unions i.e. no outside affiliation.push for internal unions i.e. no outside affiliation.

HR policies and forms of work are emerging that HR policies and forms of work are emerging that include, especially in multi-national companies, multi-include, especially in multi-national companies, multi-skills, variable compensation, job rotation etc. skills, variable compensation, job rotation etc.


These new policies are difficult to implement in place of These new policies are difficult to implement in place of old practices as the institutional set up still needs to be old practices as the institutional set up still needs to be changed.changed.

HRM is seen as a key component of business strategy. HRM is seen as a key component of business strategy.

Training and skill development is also receiving Training and skill development is also receiving attention in a number of industries, especially banking attention in a number of industries, especially banking and information technology.and information technology.

Labor LawLabor Law

Also called Also called labor lawlabor law or or employment law.employment law. It is the body of It is the body of

laws, laws, administrative rulings, and precedents which administrative rulings, and precedents which

address the legal rights of, and address the legal rights of, and restrictions on, working people and their restrictions on, working people and their

organizations. organizations.

it mediates many aspects of the relationship between it mediates many aspects of the relationship between trade unions, employers and employees. trade unions, employers and employees.

Categories of labour lawCategories of labour law

categories of labour lawcategories of labour law

collective labour lawcollective labour law individual labour lawindividual labour law

relates to the relates to the tripartite relationship tripartite relationship between between

employee, employee,

employer and employer and

unionunion

It It concerns concerns

employees' rights at employees' rights at work and through the work and through the contract for work.contract for work.

Individual labour lawIndividual labour law

It consists the following aspectsIt consists the following aspects

Contract of employmentContract of employment

Minimum wageMinimum wage

Working timeWorking time

Health and safetyHealth and safety

Anti-discriminationAnti-discrimination

Unfair dismissalUnfair dismissal

Child labourChild labour

Child labourChild labour

Two girls wearing banners in Yiddish and English with the slogan "Abolish child slavery!!" at the 1909 May Day parade in New York City

Collective labour lawCollective labour law

Collective labour law concerns the tripartite Collective labour law concerns the tripartite relationship between employer, employee and relationship between employer, employee and trade unions. It contains the legal aspects trade unions. It contains the legal aspects regarding regarding

i) Trade unionsi) Trade unions ii) Strikesii) Strikes iii) Picketsiii) Pickets iv) Workplace involvementiv) Workplace involvement v) Co-determinationv) Co-determination

Trade unions, sometimes called "labour Trade unions, sometimes called "labour unions"unions"

International Labour OrganizationInternational Labour Organization

The International Labour Organization (ILO), whose The International Labour Organization (ILO), whose headquarters are in Geneva, is one of the oldest headquarters are in Geneva, is one of the oldest surviving international bodies, and the only surviving surviving international bodies, and the only surviving international body set up at the time of the League of international body set up at the time of the League of Nations following the First World War. Nations following the First World War.

Its guiding principle is that "labour is not a commodity" Its guiding principle is that "labour is not a commodity" to be traded in the same way as goods, services or to be traded in the same way as goods, services or capital, and that human dignity demands equality of capital, and that human dignity demands equality of treatment and fairness in dealing within the workplace. treatment and fairness in dealing within the workplace.

Date post:	29-Jan-2016
Category:	Documents
Upload:	chakravarti-chakri
View:	13 times
Download:	0 times

MANAGEMENT OF INDUSTRIAL RELATIONS

Documents