Industrial Relations

• Industrial relations means the relationships between employers and employees in industrial organisations.

• Causes of Poor Industrial Relations:

-Economic causes

-Organisational causes

-Social causes

-Psychological causes

-Political causes

Discipline Discipline may be considered as the force that

prompts individuals or groups to observe rules, regulations, standards and procedures deemed necessary for an organisation.

Causes of Indiscipline:

-Ineffective Leadership

-Lack of well defined code of conduct

-Faulty supervision

-Divide and rule policy of management

-Unfair management practices

-Lack of timely redressal of grievances

Red Hot-stove RuleDouglas McGregor has suggested this rule to guide

managers in enforcing discipline. The rule is based on

analogy between touching a red hot stove and violating

rules of discipline. When a person touches a hot stove.

1.The burn is immediate

2.He had warning as he knew that he would get burn if he touched it.

3.The effect is consistent. Everyone who touches a red hot stove would be burned.

4.The effect is impersonal. A person is burned because he touched the stove and not because of who he is.

5. The effect is commensurate with the gravity of misconduct. A person who repeatedly touches the hot stove is burnt more than one who touched it only once.

The same should be with discipline.

-The disciplinary process should begin immediately after the violation of rules/regulations is noticed.

-It must give a clear warning that so much penalty would be imposed for a given offence.

-The same kind of punishment should be consistently imposed for the same offence.

-The punishment should be impersonal i.e. it should be imposed regardless of the status of the offender.

-Punishment should be commensurate with the gravity of offence.

Disciplinary Procedure(i) Preliminary Investigation

(ii) Issue of a charge-sheet

(iii)Suspension pending enquiry

(iv)Notice of enquiry

(v) Conduct of enquiry

(vi)Recording the findings

(vii)Awarding punishment

(viii)Communicating punishment

Grievance in Industry

According to Michael J. Jucius, the term ‘grievance

means any discontent or dissatisfaction, whether

expressed or not and whether valid or not, arising

out of anything connected with the company that an

employee thinks, believes or even feels, is unfair,

unjust or inequitable”.

Causes of Grievances

• Grievances resulting from Management policies -Wage rates; overtime and incentive schemes; transfers &

promotions etc.

• Grievance resulting from working conditions -Bad physical conditions; non-availability of proper tools &

machines etc.

• Grievance resulting from personal factors -Over-ambition; egoistic personality; Impractical attitude

etc.

Grievance Procedure1.Open Door Policy -Under this procedure, employees are free to meet top

executives of the organisation and get their grievance redressed.

-Such a policy may work in small organisations, but in big organisations this may not be practical.

-Another disadvantage of this policy is that lower level executives feel bypassed.

2. Step Ladder Procedure

-The aggrieved employee has to proceed step by step in getting his grievance heard and redressed.

-Firstly, he has to present his grievance in writing to his Supervisor.

-If he is not satisfied with his decision, he may go to HoD.

-There may be a Joint Grievance Committee, if the decision of HoD is not acceptable to him.

-If committee also fails to redress his grievance, matter may be referred to the Chief Executive.

-The grievance assumes the form of a conflict if the worker is not satisfied with the decision of the Chief Executive.

-It is advisable to refer such grievance to the Voluntary Arbitration. The award of the arbitrator should be binding on both the parties.

Collective Bargaining

• Collective Bargaining refers to a process by which employers on the one hand and representatives of employees on the other, attempt to arrive at agreements covering the conditions under which employees will contribute and be compensated for their services.

Objectives of Collective Bargaining

• To maintain cordial relations between the employer and the employees.

• To protect the interests of workers through collective action and by preventing unilateral action on the part of the employer.

• To ensure the participation of trade unions in industry.

Worker’s Participation in Management

Concept - It is a process by which authority and responsibility of managing industry are shared with workers.

Importance- -Mutual Understanding

-Higher productivity

-Industrial harmony

-Industrial Democracy

-Less Resistance to change

Forms of Worker’s Participation in Management

• Suggestion scheme - Workers are encouraged to give their suggestions to management on various administrative matters and their suggestions are considered carefully and accepted, if found suitable.

• Works Committee -A works committee consists of equal number of

representatives of both employers and workers.

-It meets frequently for discussion on matters of day-to-day functioning at the shop floor level like working conditions, amenities such as drinking water, canteen etc.

-After discussion, joint decisions are taken and such decisions are binding on both the parties.

• Co-partnership – In co-partnership, workers are allowed to purchase shares of the company and thus become its co-owners. In this way, they can participate in the management of the company through their elected representatives on the Board of Directors.

• Quality circle -It is a unique concept which provides for voluntary participation by the workers in the direction of quality improvement and self-development.

• Joint Management Council

-It involves setting up of joint management councils represented by workers and management to discuss and give suggestions for improvement with regard to matters of mutual interest like labour welfare, safety measures, training etc.

-The decisions of such committees are advisory in nature and are not binding on either party.

Trade Unions According to Giri, “trade union is a voluntary organisation

of workers formed to promote and protect their interests by collective action”.

Objectives -To secure for workers fair wages in light of the cost of living.

-To assure the workers a share in the increased profitability of industry through adequate bonus.

-To improve working conditions by securing shorter working hours, better leave facilities etc.

-To protect workers against exploitation and victimization by the employer.

-To secure for workers a say in management and industrial democracy.

Problems and shortcomings of Trade Unions in India

-Small Size

-Weak Financial Position

-Political Leadership

-Multiplicity of Unions

-Inter-Union Rivalry

-Problem of Recognition

-Absence of Paid Office-Bearers

-Apathy of Members

Industrial Health • Industrial health is-

-Promotion and maintenance of physical, mental & social well being of workers in all occupations;

-Prevention among workers of ill-health caused by the working conditions;

-Protection of workers from risk resulting from factors adverse to health.

Significance of Industrial Health:• To maintain and improve productivity and quality of work.

• To minimize absenteeism and labour turnover.

• To reduce industrial unrest, indiscipline and accidents.

• To improve employee motivation & morale.

• To reduce spoilage and cost of operations.

Industrial Health Programme• Maintenance of satisfactory sanitation & hygiene in the

factory.• Vaccination programmes for prevention of communicable

diseases.• Maintenance of confidential medical records.• Health education for employees.• Proper medical examination of every new employee.• Annual medical check up of those exposed to occupational

hazards/diseases.• Employment of physicians and nurses.• Proper first aid treatment for occupational & non-

occupational ailments.• Adequate emergency care & hospitalization facilities.

Industrial Safety Industrial Safety refers to the measures undertaken by the

organisation to ensure protection to workers, to prevent industrial accidents and to ensure regular flow of work.

Measures to Ensure Industrial Safety -Safety Committee -Equipment Redesign

-Safety training -Proper Clothing

-Material Handling Equipments -Clean Floors

-Guarding of Machines -Safety Campaign

-Maintenance of Plant -Safety Education

-Regular Inspection -Role of Government

Employee WelfareEmployee welfare entails all those activities of the

employers which are directed towards providing

the employees with certain facilities and services

in addition to wages or salaries.

Objectives:• To provide better life and health to the workers.• To make the workers satisfied and efficient.• To relieve workers from industrial fatigue and to improve

over all conditions of living of the workers.

Types of Welfare Services

Welfare services may be basically of three types:

1.Economic services-pension, loan facilities etc.

2.Recreational services- Indoor & out door games facilities; provision for reading rooms, radio, television etc.

3.Facilitative services -Canteen, rest rooms and lunch rooms

-Housing facilities

-Medical facilities

-Washing facilities

-Educational facilities

-Leave travel concession

Industrial Disputes

• According to Industrial Disputes Act, 1947, “an industrial dispute means any dispute or difference between employers and employers, or between employers and workmen or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person”.

Industrial disputes take place in several forms:

-Strike: A strike means a cessation of work by a body of persons employed in any industry, acting in combination or a concerted refusal under a common understanding, of a number of persons who are or have been so employed to continue to work or to accept employment.

-Gherao: It means encircling the employer or his representative. The blockade is meant to restrict the movement of the person so as to put pressure on him or her for accepting the demands of workers.

-Picketing: In this method, workers are dissuaded from reporting for work by certain provisions stationed at the gate of the factory. It is primarily a method of drawing public attention towards the dispute.

-Lockout: Lockout means the closing of a place of business of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.

-Layoff: Layoff means the failure, refusal or inability of an employer on account of shortage of coal/power or raw materials or the accumulation of stocks or the breakdown of machinery or for any other reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.

-Retrenchment: It means permanent termination of an employee’s services for economic reasons in a going concern. It is termination due to redundancy of workforce.

Causes of Industrial Disputes

Wages and Allowances Bonus Leave and hours of work Indiscipline and violence Other reasons -modernization of plant

-non-recognition of unions

-working condition of workers

-behaviour of supervisors

Settlement of Industrial Disputes

• Conciliation: Conciliation is the process by which representatives of workers and employers are brought together before a third party with a view to persuade them to arrive at an agreement through mutual discussion between them.

The ID Act, 1947 provides for the appointment of following conciliation machinery:

(i) Conciliation Officer: The main duty of conciliation officer shall be to mediate in and promote the settlement of industrial disputes.

(ii) Board of Conciliation: -The board shall consist of a chairman and two or four

other members, as the appropriate Government thinks fit.

-The duties of a board of conciliation are:

(a) where a dispute has been referred, it shall endeavour to bring about a settlement of the same.

(b) if no settlement is arrived at, the Board shall send a report to the appropriate government stating the facts, the steps taken, the reasons why no settlement was arrived at and its recommendation for the dispute.

• Arbitration: It is a process in which a neutral third party listens to the disputing parties, gathers information and then takes a decision which is binding on both the parties.

• Courts of Inquiry: The appropriate government may constitute a Court of Inquiry for inquiring into any matter appearing to be connected with an industrial dispute. It is a fact finding body and is not required to make recommendations for the settlement of an industrial dispute.

• Adjudication: It is the ultimate legal remedy for the settlement of industrial disputes. Adjudication means intervention of a legal authority appointed by the Government to make a settlement which is binding on the parties. The ID Act, 1947 provides for a three tier system of adjudication:

(i) Labour Court: A labour court shall consist of one person only to be appointed by the appropriate government. It is the duty of the labour court to adjudicate upon the industrial disputes relating to matters like-

-The application and interpretation of standing orders.

-Dismissal of workmen including reinstatement of, grant of relief to workmen wrongfully dismissed.

-Illegality of a strike or lock-out.

(ii) Industrial Tribunal: The Industrial Tribunal shall consist of one person only to be appointed by the appropriate government. It is the duty of Industrial Tribunal to adjudicate industrial disputes relating to matters like:

-Wages and other allowances;

-Hours of work and rest intervals;

-retrenchment of workmen

(iii) National Tribunal: The central government may constitute one or more National Industrial Tribunal for the adjudication of industrial disputes:

(a) involving questions of national importance; or

(b) which are of such a nature that industries in more than one state are likely to be interested in, or are affected by, such disputes.