WHAT IS INDUSTRIAL WHAT IS INDUSTRIAL RELATIONS ?RELATIONS ?1. IR is a relationship between

management andemployees or among employees and

theirorganizations, that characteristics and

grow out ofemployment.

2. IR may be defined as the complex of inter- relations among workers, managers and government.

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Characteristics of IRCharacteristics of IR

1. An outcome of relationship in industry.

2. It create rules and regulations to maintain piece and harmony.

3. Important parts of IR are employees and their organization, employer and their association and government.

4. It has a role of management, union and government.

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Scope of Industrial Relations

Scope of Industrial Scope of Industrial RelationsRelationsIndustrial Relations scope

includes all the aspects of relations in industry such as ◦1. developing and maintaining

cordial and effective labour management relations,

◦2industrial peace and industrial democracy

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The cordial and effective labour management The cordial and effective labour management relations can be developed by-relations can be developed by-

Protecting the interest of the employees

Providing reasonable wages to employees

Providing safe and hygienic working conditions

Providing social security measuresMaintaining strong Trade UnionsCollective bargaining

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Industrial peace and democracy could be Industrial peace and democracy could be developed and maintained by:developed and maintained by:

Settlement of industrial disputes through mutual understanding and agreements

By evolving various statutory measures

By formation of various machineries such as works committee, boards of conciliation labour courts etc.

Workers participation in managementRecognizing human rights

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Objective of IRObjective of IR1. To promote and develop labor

management relation.2. To regulate the production by

minimizing industrial conflicts3. To provide opptunity to workers

to involve in decision making process with management.

4. To encourage and develop trade unions in order to improve the workers' strength.

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Role of Trade Unions in IRRole of Trade Unions in IR

1. Achieving higher wages2. To offer responsive co-operation in

improving level of production, discipline etc.

3. To promote individual and collective welfare

4. To improve working and living conditions

5. To enlarge the opportunities of promotion and training.

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Role of Employers Role of Employers OrganisationOrganisationPromote and protect of the

interest of employers engaged in Industry, Trade and Commerce.\

Advice offeringBridge between Union

Government Train and develop staff members

of concern members of Associations

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Examples of Employer’s Examples of Employer’s OrganizationsOrganizations

A. ASSOCHAM- Associated Chamber of Commerce (1920)

B. FICC- Federation of Indian Chamber of Commerce (1927)

C. IOE- International Organization of Employers (1920)

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ILO in IRILO in IRILO establish in 1919, on April 19

by Versailles Peace Conference India become member of ILO in

1919

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Objective of ILO Structure of ILO

Full employment and raising of standard of living

Adequate protection for the life and health of the workers

The assurance of educational and vocational opportunity

The International Conference

The governing bodyThe international

labor office

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Functions of ILOFunctions of ILOConditions of workChild worksMigrant workersHealth, Safety and WelfareSocial SecurityManpower organization and

Vocational Training

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Industrial Relations Industrial Relations machinery in machinery in IndiaIndiaPreventive

Machinerya)Trade Unionb) Joint Consultation

1. Work Committee

2. Joint Management Council

c) Standing Ordersd)Grievance

Proceduree)Code of Discipline

Settlement Machinerya)Conciliation

1. Conciliation Officer

2. Board of Conciliation

3. Court of Inquiry

b)Voluntary arbitrationc)Compulsory Arbitration

1. Labor Court

2. Industrial Tribunal

3. National Tribunal

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Factors influencing Factors influencing technological changetechnological change

Type of technology used.Rate of technology change Research and developmentStatus level in organisationGovernment rules.CultureMarket

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Factors influencing industrial Factors influencing industrial relation.relation.

Institutional factorsEconomic factorsSocial factors.Psychological factorsPolitical factorsGlobal factors.

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Trade UnionsTrade Unions"Trade Union" means any combination,

whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business

Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices.

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ObjectivesObjectives

Representation Negotiation Voice in decisions affecting

workers Member services (a) Education and training (b) Legal assistance (c) Financial discounts (d) Welfare benefits

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Functions of Trade unionsFunctions of Trade unions(i)  Militant functions(a) To achieve higher wages and

better working conditions(b) To raise the status of workers

as a part of industry(c) To protect labors against

victimization and injustice

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(ii) Fraternal functions (ii) Fraternal functions To take up welfare measures for

improving the morale of workersTo generate self confidence among

workersTo encourage sincerity and discipline

among workersTo provide opportunities for promotion

and growthTo protect women workers against

discrimination

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Importance Of Trade Importance Of Trade UnionsUnionsTrade unions help in accelerated pace of

economic development in many ways as follows:

by helping in the recruitment and selection of workers.

by inculcating discipline among the workforceby enabling settlement of industrial disputes in

a rational mannerby helping social adjustments. Workers have to

adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

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Contd….Contd….

Social responsibilities of trade unions include:

promoting and maintaining national integration by reducing the number of industrial disputes

incorporating a sense of corporate social responsibility in workers

achieving industrial peace

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Trade Unionism In India Trade Unionism In India

Indian trade union movement can be divided into three phases.

* The first phase (1850 to1900)

* The second phase (1900 to 1946)* The third phase (in 1947).

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By 1949, four central trade union organizations were functioning in the country:

The All India Trade Union Congress,(A.I.T.U.C)

The Indian National Trade Union Congress, (I.N.T.U.C)

The Hindu Mazdoor Sangh,(H.M.S) andThe United Trade Union Congress

(U.T.U.C)23

Trade Union Act 25 March Trade Union Act 25 March 19261926The trade Unions Act, 1926 provides for

registration of trade unions with a view to render lawful organisation of labour to enable collective bargaining. It also confers on a registered trade union certain protection and privileges.

The Act extends to the whole of India and applies to all kinds of unions of workers and associations of employers, which aim at regularizing labor management relations. A Trade Union is a combination whether temporary or permanent, formed for regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers.

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Trade unions in IndiaTrade unions in India

The Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor markets consist of three sectors:

The rural workers, who constitute about 60 per cent of the workforce.

Organized sector, which employs 8 per cent of workforce, and

The urban informal sector (which includes the growing software industry and other services, not included in the formal sector) which constitutes the rest 32 per cent of the workforce.

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At present there are twelve Central Trade Union Organizations 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)

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Reasons for Joining Trade Reasons for Joining Trade UnionsUnions

Greater Bargaining PowerMinimize DiscriminationSense of SecuritySense of Participation Sense of BelongingnessPlatform for self expression Betterment of relationships

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Causes of Industrial DisputesCauses of Industrial Disputes

The causes of industrial disputes can be broadly classified into two categories:

economic causes The economic causes will include issues relating to

compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments.

non-economic causes The non economic factors will include

victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc.

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Analysis of Industrial Analysis of Industrial DisputesDisputes

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.

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StrikesStrikes

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. When workers collectively cease to work in a particular industry, they are said to be on strike.

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According to Industrial Disputes Act 1947, a strike is “a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment”.

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Causes of strikesCauses of strikesStrikes can occur because of the following reasons:Dissatisfaction with company policySalary and incentive problems Increment not up to the mark Wrongful discharge or dismissal of workmenWithdrawal of any concession or privilegeHours of work and rest intervals Leaves with wages and holidaysBonus, profit sharing, Provident fund and gratuity Retrenchment of workmen and closure of

establishment Dispute connected with minimum wages

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TYPES OF STRIKETYPES OF STRIKEEconomic Strike Stoppage of work

due to conflict over wages or other economic related issues

Sympathetic Strike In a sympathy strike, other unions in the same industry, or employed by the same company, will strike at the same time

General Strike  is one in which all or most workers in an entire region or country go on strike together, regardless of union affiliation

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Sit down Strike mployees show up to their place of employment, but they refuse to work. They also refuse to leave, 

Slow Down Strike All the union employees continue coming to work on time, and they continue to perform their jobs, but they do them more slowly.

Sick-out (or sick-in ) :All, or a significant number of union members call in sick on the same day. They haven't broken any rules, because they just use sick leave that was allotted to them.

Wild cat strikes A wildcat strike is a strike that is not approved by the labor union

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LockoutsLockouts

A lockout is a work stoppage in which an employer prevents employees from working. It is declared by employers to put pressure on their workers. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers’ weapon while a strike is raised on part of employees.

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PICKETINGPICKETING When workers are dissuaded from

work by stationing certain men at the factory gates, such a step is known as picketing.

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.

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Contd….Contd….

The purpose of picketing is: to stop or persuade workers not

to go to workto tell the public about the striketo persuade workers to take their

union's side

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GHERAOGHERAO

Gherao 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.

The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins.

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Contd…Contd…The main object of gherao is to

inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent.

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Measures for Improving Industrial Measures for Improving Industrial Relations Relations Workers’ Participation in Management

Mutual Accommodation The approach must be of mutual

“give and take rather than “take or leave.” The management should be willing to co-operate rather than blackmail the workers.

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Contd…Contd…Sincere Implementation of Agreements

Sound Personnel PoliciesGovernment’s Role Progressive Outlook

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LEGAL FRAMEWORK OF INDUSTRIAL RELATIONS IN

INDIA

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The government of India has also given some legislative provisions at workplace. All there labour legislations are based on the recommendation of ILO (International Labour Oraganisation) to which India is a member country.

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1. Role of International labour 1. Role of International labour OrganisationOrganisationThe ILO is a tripartite organisation consisting

of representatives of the government employers and workers of the member countries. India has been an active member of the ILO.

As one of the ten countries of “chief industrial important: India holds an elective seat on ILOs’ governing body. It is a member of 5 committees of the governing body.

Programme, finance and administrative. Legal issue and internal labour standard. Employment and social policy Technical cooperation Sectoral and technical meetings and related issues.

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The main purpose and The main purpose and function of ILO function of ILO The regulation of labour supply.The prevention, protection and

adequate living wage.The protection health, wealth,

education and communication.Permission for old age and injury.Recognition of the freedom of

association.

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The fundamental principle ILO:-Labour is not a commodity.Poverty anywhere constitutes a change to

prosperity everywhere. ILO major three directionsEstablishment of tripartite international

committees.The holding of regional conferencesThe development of operational activities.

ILO conventions in India (1994) The ILO 176 conventions out of which it

has satisfied 36 conventions. ILO conventions emphasis- Basic human rights, employment migrant workers etc.

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2.2. Labour Legislations in Labour Legislations in India India a) The trade union Act 1926 It is the only legal framework

for the trade union movement in the country. It legalizes the formation of trade unions by conceding to workmen their right of association and organizing unions. It permits any 7 persons to term their union and get it registered under the act. Registration of union is optimal and not compulsory.

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b) The Industrial Employment Act 1946, (Standing order)-

The Act clearly says the “Standing orders” shall deal with the conditions of employment of workers in an industrial establishment.

The main aims of the act:- To define with sufficient precisions, the principal conditions of employment in industrial establishments under them and to make the said conditions known to workmen employed by them. To regulate standards of conduct of the employers and employee that labour-management relations could be improved. Maintain discipline, harmonious working conditions, duties and responsibilities of employers and employee. Etc.

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c) The Industrial Disputes Act 1947.On the basis of the judgments given time to

time, by the Supreme Court, the principle objectives of the act may be stated as follows:-

Good relations between employees and employers.

To prevent illegal strikes and lockouts.To provide relief to workmen in matters of

lay-offs, retrenchment, wrong dismissals and motiveness.

To give the workmen the right of collective bargaining and promote conciliation.

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d) The payment of wages of Act 1936.

Under this act the employers determined the mode and manner of wage payment as they liked. Even when paid in cash, wages were paid in illegal tender and in the form of deprecated currency.

e) The Minimum Wages Act 1948 This act is to secure the welfare of the

workers in a competitive market by providing a minimum rate of wages in certain employments. Under this act provide- education, social and medical requirements.

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f) The factories Act 1948 This act come into force on April 1st

1949. The main aims of this act t secure health, welfare, proper using hours, leave and other benefits for workers employed in factories.

g) The payment of Bonus Act 1965 The Bonus act is the outcome of the

recommendation made by the impartite commission, which was set by the government of India way back in 1961. the main aims to outline the principles of payment of bonus according to perfect formula . to provide machinery for enforcement of bonus etc.

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Grievance ProcedureGrievance ProcedureGrievance :- the term

grievance means “any discontent or dissatisfaction” According to Mandy and Neo:- “Employees dissatisfaction or feeling of personal injustice relating to his or her employment.”

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According to Chandra:- The following area were course of employee grievance.:-

Promotions, 2) Amenities, 3) Continuity of service, 4) Compensation, 5) Disciplinary action, 6) fines, 7) Leaves, 8) Medical benefits, 9) Increments, 10) Nature of job, 11) payment, 12) Recovery of duties etc.

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Grievance procedure in Grievance procedure in Indian industry Indian industry :- :-

In India settlement of grievance did not receive adequate attention in the legislative framework till the enactment of industrial employment act 1946, & the factory act 1948. The industrial employment act provides that every establishment employing 100 or more workers should frame standing orders which should contain a many other matters, provision for means of redressal for workmen against unfair treatments or wrongful actions by employer or his agents or servants.

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Grievance ProcedureGrievance Procedure

Managing grievance covers 5 steps:-

1.Receiving and defining the nature of the dissatisfaction

2.Getting the facts.3.Analyzing the facts and reaching

a decision.4.Applying the answer5.Follow-up.

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The major determinate of The major determinate of grievance grievance A) Management practices:

The behaviour of supervisor, peer’s group can cause grievance.

The improper division of work among employees lead to employee grievance.

The autocratic organizational environment can cause grievance.

Employer compensation, overtime, role clarity, leave.

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B) Union Practices:

Motivating employeesLobbying for numerical strength &

support. C) Individual personality Trait

1. Narrow Attitude2. Highly educated workers.

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DisciplineDiscipline Discipline is very essential for a healthy

industrial atmosphere and the achievement of organisational goals. Discipline in industry may be described as willing cooperation and observance of the rules and regulations of the organisation. Discipline is essential to a democratic way of life.

According to Brembless: “ Discipline does not mean a strict and technical observation of rigid rules and regulations. It simply means working, co-operating and behaving in a normal & orderly way, as any responsible person would except an employee to do”

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Positive aspects:- Positive discipline can be achieved

through rewards and effective leadership. Positive discipline promotes cooperation and coordination with a minimum of formal organisation. It reduces the need for personal supervision required to maintain standards.

Negative aspects: Negative discipline is traditional concept

and is identified with ensuring that subordinates adhere strictly to the rules and punishment, is meted out in the event of indiscipline.

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Importance of Discipline Importance of Discipline in industry. in industry.

To ensure that employers & employee recognize each others rights and obligations.

To promote constructive cooperation between the parties concerned at all levels.

To maintain discipline in industry.To secure settlement of disputes &

grievances by negotiation, conciliations voluntary arbitration.

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To eliminate all forms of coercion violence in industrial relation.

To avoid work stoppages.To facilitate the free growth of

trade unions.Respect for the human

personality.Management personnel should

set high standards.

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In India, the problem of industrial discipline was debated by the Indian Labour Conference held in1957. A sub-committee was appointed to draft a model code of discipline, which would be acceptance to all. Indian Labour Conference discussed 3 draft codes including:-

1.  A ‘Code of Conduct’ to regulate inter-union relations.

2. A ‘ Code of Discipline’ to regular labour management relations.

3. A ‘ Code of Efficiency and welfare’ for laying down norms of productivity and labour welfare. The four central organisation of labour then representing an Indian labour conference including (INTUC, AITUC, HMS, UTUC) agreed to comply with the code. The adoption of ‘code of discipline ‘ was announced in June 1958.

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Importance of code of Importance of code of discipline in industry.discipline in industry.Maintaining peace and order in industry.Recognize the rights and responsibility of

each other. It prohibits strikes and lock-outs.Facilitating a free growth of trade unions.Settlements of disputesUnion will discourage of duty damage to

property, careless operation in subordination and other unfair labour practices on the part of workers.

Avoiding work stoppages in industry.

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COLLECTIVE BARGAINING COLLECTIVE BARGAINING

Collective bargaining is concerned with relations between unions representing employees and employer. It involves the process of union organisation of employees, negotiation, administration, hours of work, engaging in concerned economic action and disputes settlement procedure.

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Importance of collective Importance of collective bargaining:-bargaining:-1. Collective bargaining increases the morale and

productivity of employees.

2. Effective collective bargaining machinery strengths the trade union management.

3. Collective bargaining opens up the channels of communication between the top and bottom levels of the organisation, which may be difficult otherwise.

4. It is easier for the management to resolve issues at the bargaining table rather than taking up complaints of employees individually.

5. Collective bargaining leads to industrial peace in the country.

6. Collective bargaining is a continuous process.

7. Collective bargaining maintains harmonious relationship.

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Methods of collective Methods of collective Bargaining:-Bargaining:-

◦ Company bargaining between representatives of union and management.

◦ National bargaining may occurs at the level of industry between the representatives of a union or a federation of employer’s association.

◦ Effort bargaining where the amount of work to be accomplished for a predetermined wage becomes negotiable alike the wage itself.

◦ Productivity bargaining irrespective of financial system involved.

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Formal = basic wage rate, condition of work.

Informal = financial incentives, disciplines, work practices.

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Process of collective bargaining

Collective bargaining has two facts:

1. The negotiation state.2. The stage of contract

administration.

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A) A) Negotiation state:- Negotiation state:- 1) Preparation for negotiation :- Under first step prepare specific proposal for

changes in the contract language. Prepare statistical displays and supportive date for use in negotiations. The attitude and desirous of the employees.

2) Identify Bargaining issues:- it is divides in 4 categories.

Wages related issues, supplementary economic benefits, institutional issues, administrative issues.

3) Negotiating:- means bargaining the success of negotiation depends are skills and abilities of the negotiators.

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B) Contract Administration:- When the process of negotiation

has been completed, it is time to sign the contract, the terms of which must be sincerely observed by both the parties.

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Some important prerequisites Some important prerequisites for collective bargaining to for collective bargaining to

make successful:make successful:1. It is important for the management to

recognize the union and to bargain in more good faith.

2. Both the management and union should be able to identify grievance, safety and hygiene problem on a routine basis.

3. Trade union encourages internal union democracy and have periodic consultations with the rank & file members.

4. The negotiating teams should have open minds; to listen & appreciate the other’s concern & point of new and also show flexibility in making adjustments to the demand made.

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Total Quality Management Total Quality Management (TQM) (TQM) TQM “Total Quality Management” is an approach to

improving the effectiveness and flexibility of business as a whole. It is essentially a way of organizing and involving the whole organisation every department, every activity, every single person at every level”

 TQM is a programmatic long-term approach, it is initiated and driven by top management.

Quality: Quality is fitness for use. Quality means best for certain customer condition. These conditions are:-the actual use and the selling price of the product.

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The basic pattern of The basic pattern of Quality costQuality cost Quality costs are a measure of all costs associated with achievement of product quality. The measurement of these costs helps to:-

 Highlights to all employees the important of product & service quality to business profitability.

Form a basis for decision making. Identify area which need immediate attention &

improvement . Measure the effect of action taken. Budget the expenditure for accomplishing the QM

Program . For achieving these purpose an understanding of

quality costs and a program for evaluating there is required.

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Quality cost in Quality cost in manufacturing are divide manufacturing are divide intointo1. Prevention Costs:- This category involves all those activities aimed at preventing defects, defective products and errors, on the one hand and building acceptable quality into products and services on the other. It includes designing, maintaining, implementing auditing.

2. Appraisal Costs:- Those costs incurred in attempting to measure the extent to which QM objectives are met. This category involves all activities measuring, inspecting, testing and auditing products and performance to determine confirmation, standards of performance & specification. It includes performance of employees, performance of equipment and machines, laboratory tests, quality audits, testing, sampling.

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3. Failure Costs:- Divide in two parts.a) Internal failure costs:- There are the

costs which are incurred because of defects in the product before its shipment to a customer. These include:

Scrap and rework.Downtime costs,

 b)External Failure Costs:- There represent all costs incurred on defective products after it is deliberated to a customer.

Investigating and solve problemLiability and penalties costs.

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The role of vendors in QM The role of vendors in QM (Quality Management)(Quality Management)

Vendors mean one who sells. Vendors play a important role in quality management. Vendor’s role for setting the standards for quality because vendors know customer requirements actions, behaviour and attitudes.

1.  It role setting the standards for quality.2. It role meeting the requirements in specific time.3. Vendors attend QM seminars.4. Vendors maintain coordination function in QM

operations.5. Vendors carry out the main objective of customer

satisfaction.6. Its role is continuous improvement in quality

management system.

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