ROLE OF TRADE UNIONS IN BREEDING POOR

INDUSTRIAL RELATIONS

Presented by:Anoop Kumar 08HR012

WHAT ARE TRADE UNION

Trade Union definition: a trade union is an ongoing association of wage

earners with the purpose of maintaining or improving their working conditions (Webb and Webb, 1894)  

Dale Yoder has defined trade union as a continuing long – term association of employees formed and maintained for the specific purpose of advancing and protecting the interests of members in their working relationships.

A trade union is a continuous association of workers which is formed with the purpose of protecting the interests of workers.”

Phases of Trade Union

The first phase (1850 to1900)During this phase the inception of trade unions took place. During this period, the working and living conditions of the labor were poor and their working hours were long. Capitalists were only interested in their productivity and profitability.

The second phase (1900 to 1946)This phase was characterized by the development of organized trade unions and political movements of the working class. Between 1918 and 1923, many unions came into existence in the country.

The third phase began with the emergence of independent India (in 1947).

Trade Unions at present 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)

Features of trade unions

It is an organisation formed by employees or workers. It is formed on a continuous basis. It is a permanent body

and not a casual or temporary one. It is formed to protect and promote all kinds of interests –

economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic.

It includes federations of trade unions also. It achieves its objectives through collective action and

group effort.

OBJECTIVES

Better Wages Better Working conditions Bonus Resist unsuitable schemes Secure welfare Project Interests of workers Social Welfare Organisational growth and stability Functions Militant Fraternal

Structure of Trade Unions

Plant level Unions: The first level in the structure from below is the plant level union. This comprises the unions in one organisation or factory.

Local level Federations:This is the second level in the structure from below. The local trade union federation holds together the plant level unions at the local level in a particular craft and industry.

Regional level federations: These are the organisations of all the constituent unions in a particular state or region.

National level federations :These are national level bodies to which plant level unions, local unions or regional level unions may get affiliated. These are the apex bodies at the top of the structure. They act as coordinating bodies.

Diagramatic representation

National Level Federations Regional Level Federations Local Level Federations Plant Level Federations

1. Militant Functions • To achieve higher wages and better working

conditions• To raise the status of workers as a part of industry• To protect labors against victimization and injustice 2. 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

Functions Of Trade Unions

Criticism of Trade Unions by Employers

•Lack of education

•May not welcome change

•Strike on Illogical basis

•Creation of Artificial scanity of labour

•Undue demands relating to wages

Problems and Weaknesses of Trade Unions

•Uneven growth

•Limited membership

•Multiplicity of unions

•Outside leadership

•Financial problems

•Indifferent Attitude of workers

Suggestions for Healthy growth of Unions

•One Union Per Industry

•Paid Union Officials

•Development of Internal Leadership

•Recognition of Trade Unions

•Improved Financial condition

1. Create Unemployment. If labour markets are competitive, higher wages will cause unemployment. Trades unions can cause wages to go above equilibrium through the threat of strikes e.t.c. However when the wage is above the equilibrium it will cause a fall in employment.

2. Ignore non MembersTrades unions only consider the needs of its members, they often ignore the plight of those excluded from the labour markets, e.g. the unemployed.

3. Lost Productivity.If unions go on strike and work unproductively (work to rule) it can lead to lost sales and output. Therefore their company may go out of business and be unable to employ workers at all.

Problems of Trades Unions.

4. Wage Inflation.If unions become too powerful they can bargain for higher wages, above the rate of inflation. If this occurs it may contribute to general inflation. Powerful trades unions were a significant cause of the UK's inflation rate of 27% in 1979The benefits of trades unions depends on their circumstances. If they face a monopsony employer they can help counterbalance the employers market power. They can increase wages without causing unemployment.

If unions become too powerful and they force wages to be too high, then they may cause unemployment and inflation

It also depends on whether they cooperate with firm or not on increasing productivity.

Contd...

Industrial Relations

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. 

Actors in the IR system

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these

Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts.

Diagramatic representation of IR System

Management-labor relationship

Three key factors to be considered in conducting an analysis of the management-labor relationship:

Environmental or external economic, technological, political, legal and social forces that impact employment relationships.

Characteristics and interaction of the key actors in the employment relationship: labor, management, and government.

Rules that are derived from these interactions that govern the employment relationship.

Objectives of industrial relations system

 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.

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.

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

Objectives

To establish and promote 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.

To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.

To improve the economic conditions of workers in the existing state of industrial managements and political government.

Socialization of industries by making the state itself a major employer Vesting of a proprietary interest of the workers in the industries in

which they are employed.

Industrial Disputes

The number of industrial disputes in country has shown slow but steady fall over the past ten years. In 1998, the total number of disputes was 1097 which fell by more than half to 440 in 2006.It is being estimated that this trend will continue in 2007 as well

Industrial Disputes

Causes Of Industrial Disputes

Wages and allowance: In 2002, 21.4% of disputes were caused by demand of higher wages and allowances.

Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively.

Indiscipline and violence: From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003.

Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively.

Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and working hours.

Miscellaneous: The miscellaneous factors include

  -   Inter/Intra Union Rivalry  -   Charter of Demands  -   Work Load  -   Standing orders/rules/service conditions/safety measures  -   Non-implementation of agreements and awards etc.

Latest Industrial Disputes

Jet Airways Air India Arcelor Mittal (search in Detail for above these Or if if u find

any more cases u can add to it)

Impact of Industrial Disputes

Strikes

A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted

Lockouts

 Acc to Industrial Disputes Act 1947, lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.

PICKETINGWhen workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets are workers who are on strike that stand at the entrance to their workplace. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. 

The purpose of picketing is: 

to stop or persuade workers not to go to work

to tell the public about the strike

to persuade workers to take their union's side

GHERAOGherao in Hindi means to surround. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades.

Analysis Of Strikes and Lockouts

Prohibition of Strikes and Lock-Outs

Employees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947. Employees, who are working in a public utility service, cannot go on a strike without giving a notice of strike within the six weeks before striking. 

Illegal Strikes and Lock-Outs A strike or a lock-out is illegal if it is declared in noncompliance with the section 22 (as defined above) of Industrial Disputes Act 1947, that is, if the notice period is not served or if the strike is held within the fourteen days of issuing the notice of strike. If a strike or lockout has already taken place and is being referred to a Board, the continuance of such a strike or lock out is not illegal provided it is in compliance with the provisions of act. 

Penalty for Illegal Strikes and Lock-outsA workman who is involved in an illegal strike can be penalized with imprisonment for a term extendable to a month or with a fine or fifty rupees or both. In similar way, an employer who initiates and continues a lockout is punishable with imprisonment extendable to a month or with a fine of one thousand rupees or both

Collective Bargaining

Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry

ILO has defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment/industrial relations with one another

collective bargaining:

It is a collective process in which representatives of both the management and employees participate. 

It is a continuous process which aims at establishing stable relationships between the parties involved. 

It not only involves the bargaining agreement, but also involves the implementation of such an agreement. 

It attempts in achieving discipline in the industry  Itis a flexible approach, as the parties involved have

to adopt a flexible attitude towards negotiations.

The collective bargaining process

Prepare Discuss Propose Bargain Settlement

Measures For Improving Industrial Relations

Strong and Stable Union Mutual Trust Workers’ Participation in Management Mutual Accommodation Sincere Implementation of Agreements Sound Personnel Policies Government’s Role Progressive Outlook

Healthy industrial relations

 Uninterrupted production Reduction in Industrial Disputes · High morale Mental Revolution Reduced Wastage