industrial relations in public enterprise

8/12/2019 Industrial Relations in Public Enterprise

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INDUSTRIAL RELATIONS IN PUBLIC

ENTERPRISE & M.N.C

Presented by- ASHU

VASHISHTH

Pre-P.hd- 1stsem.


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TABLE OF CONTENTSTopic Slide. NO.

Introduction to I.R 1

Actors in I.R 2

Objectives of I.R 3

I.R in Multinational companies 4

Possible reasons for strike 5

Where lies the problem.? 6

Where the solution lies.? 7

I.R in public enterprises 8

Strikes in public sector 11

Reasons 12

suggestions 14

References. 17


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INDUSTRIAL RELATIONS

IR is concerned with RELATIONSHIPSarisingat & out of workplace, includes thePROCESSESthrough which these relationshipsare expressed, and MANAGEMENT OF

CONFLICT between employers, workers &trade unions, when it arises.

These relationships & processes are influenced

by GOVERNMENT & ITS AGENCIES throughPolicies, regulations, programmes according topolitical, social, technical, cultural & economicscharacteristics of each country.


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ACTORS IN I.R. PROCESS


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OBJECTIVES OF INDUSTRI L REL TION

To safeguard the interest of labor and management

To avoid industrial conflict or strike and develop harmonious relations

To raise productivity to a higher level

To establish and nurse the growth of an Industrial Democracy based on labor

partnership in the sharing of profits and of managerial decisions,

To eliminate strikes, lockouts and gheraos by providing reasonable wages,

improved living and working conditions, said fringe benefits.

To establish government control of such plants and units as are running at a

loss or in which productions has to be regulated in the public interest.

Improvements in the economic conditions of workers in the existing state of

industrial managements and political government.


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LABOR FORCE

Labor force in India is the second largest in the worldafter China.

Majority of the Indian labor force is in the unorganized

sector. Less than 10% works in the organized sectorthat comprises of government and other public andprivate registered companies.

.

The legendary strikes in Indian history are that ofRailway workers in 1974(largest known strike) andthe Great Bombay Textile Strike.

Labor

disputes

loss of man

hours

affects

productivityadversely


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POSSIBLE REASONS FOR STRIKES

Some of the unrest is related to the recession of 2007-08, but

many of them are in fact related to the issue of unionrecognition or managerial aversion toward unions.

. The overall policy of the companies seems to be the strategy of

creating a reserve army of cheap labor in the area, available

whenever required and vulnerable to retrenchment at unions will.

Labor flexibility is major requirement due to global competition,

and manpower utilization techniques consistent with high tech

productivity and production, and has led to increasing use of non-

regular workers.

problems relate to managerial stylessummary suspensionsand dismissals, pay cuts, intolerance for any interference in their

own production plans,

Management has also amply demonstrated insensitivity to

workers sentiments and perceptions


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WHERE LIES THE PROBLEM?

Impetus required to review Indias labor policies.

Indias labor policies were better suited for a timewhen the producer had a stable market for hisoutput, and the fledgling workforce then needed

some state support to enter an equitable contractto employment.

Today, the producer has to contend with anextremely uncertain business environment; butthe legal framework for the conditions ofemployment remains the same therebydiscouraging hiring permanent workforce.


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WHERE THE SOLUTION LIES..!!!

It is time for India to urgently undertake labor reforms

without which it cannot hope to increase the share of

manufacturing in its GDP.

End the system ofhiring through

contractors and paying

discriminatory wagesbetween workers

performing similar workin the same

organization.

Manufacturing firmsshould be made to keepall workers- others than

those performingactivities not core to the

business- on theirregular rolls

flexibility to lay-off in ahumane and transparentmanner with reasonable

advance notice.

During employment, therecould also be compulsorypayments made to an

unemployment fund ofevery worker- a la payrolltax withheld from wages-

that will serve as insurancein the event of losing his or

her job.


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I.R IN MULTINATIONAL COMPANIES IN INDIA

Multinational companies (MNCs), at the forefront of globalization,

have grown to almost more than 80,000 worldwide employing 55million people.

The last few years have seen a sharp surge in worker protests in

multinational companies across India.

In Tamil Nadu, workers at Hyundai, MRF, and Nokia went on

protest strikes In the private owned sector, pilots of Indias biggest airlines like

Jet Airways went on strike on separate occasions during 2009.

Gurgaon and Manesar near Delhi, the home of automobile

industry, have seen large scale unrest not only in the large

multinationals but in many of the subsidiaries.

Recently, strike commenced at CD-maker Moser Baers Noida unit

where, workers are demanding a revision in wages and bonuses.


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I.R RELATIONS IN PUBLIC ENTERPRISE Public enterprise means an activity of a business

character owned and managed by the Government;

Central, State or local, providing goods and services for

a price.

The main aim of the public sector was not profit, but

public service.


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PSES(PUBLIC SECTOR ENTERPRISES List of top 9 PSEs(Public Sector Enterprises) having the highest

profits........

LIST OF NAVRATNA PSEs

1. Bharat Heavy Electricals Ltd.2. Bharat Petroleum Corporation Ltd.

3. Gas Authority of India Ltd.

4. Hindustan Petroleum Corporation Ltd.

5. Indian Oil Corporation Ltd.

6. Mahanagar Telephone Nigam Ltd.

7. National Thermal Power Corporation Ltd.

8. Oil & Natural Gas Corporation Ltd.

9. Steel Authority of India Ltd.


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THE ROLE OF GOVERNMENT

Government became an active intervener with passage

of number of new laws, beginning with the IndustrialDispute Act of 1947.

The Governments industrial relations policy is part of itsbroader labor policy, which has been stated by the

National Commission on Laborin terms of its mainpostulates.

The main tenets of the policy are:

Primacy to the maintenance of industrial peace ;

Encouragement of mutual settlement, collectivebargaining and voluntary arbitration;

Recognition of the workers right to peaceful directaction, i.e. strike; and

Tripartite consultation.


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STRIKES IN PUBLIC SECTOR On 10,feb 2014, Bank employees under the banner of United Forum of

Bank Unions (UFBU) will observe two-day strike to press for theirdemands regarding wage revision and other related issues.

On December 18 2013 as trade unions of Public sector banks

have decided to go on day-long striketo press for wagerevision and other demands.

Earlier Employees of public sector banks have gone on two-

day nationwide strike on Wednesday, August 22, 2012,opposing banking sector reforms and outsourcing of non-coreactivities.

Source: http://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-
http://economictimes.indiatimes.com/topic/strikehttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://indiatoday.intoday.in/gallery/public-sector-banks-go-on-two-day-strike/1/7634.htmlhttp://economictimes.indiatimes.com/topic/strike


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REASONS FOR POOR INDUSTRIAL RELATION.

Researchers have found out that the following are thereasons for poor industrial relation.

the major reason for the industrial unrest is the delayin dispute settlement and the policies of governmentand the respective enterprises

unhealthy working conditions. indiscipline;

lack of human relations skill on the part ofsupervisors and other managers;

desire on the part of the workers for higher bonus or

D.A. and the corresponding desire of the employers togive as little as possible;

inappropriate introduction of automation withoutproviding the right climate and training.


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SUGGESTIONS TO IMPROVE THE INDUSTRIAL

RELATIONS BETWEEN THE MANAGEMENT AND

THE LABOR AND TO AVOID STRIKES IN THE PUBLIC

SECTOR. The Government should not take the recognition back at the time ofstrike and should come forward for the discussion of the demand.

An effective two way channel of communication should be there.

Though, there is proper down-ward communication in the Public Sector,

there is greater need to improve upward communication.

By delegating authorities to workers and by workers participation

in the management

Proper social security schemes should be implemented.

To solve the problem of multiplicity of trade unions which exist in many

public sector, the management should recognize a majority union as abargaining agent in the public sector. It must be decided by a proper

procedure and with the assistance of labor commissioner.

Mostly disputes arise in the public sector due to wages. This economic

cause of dispute can be removed, to a large extent, by enforcing

minimum wages .


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REFERENCES

Nitesh.R.De, an action plan for effective industrial relations in public

sector, indian journal of industrial relatons,vol-8, no.3(1972).

Dr.Jitendra kumar sharma, INDUSTRIAL RELATIONS IN PUBLIC

SECTOR AND THEIR DETERMINANT , global management

conferencebali, indonesia, april-may 2010.

Yogesh kumar & a.K.Mishra, MEASURING HUMAN RESOURCE

FUNCTIONS : A COMPARISON Of public sector and private sector

organisations , SMS Varansi, vol.vii, june 2011.

Arun Monappa, Industrial relations Tata McGrawhill publications, 1985

REPORT OF THE COMMITTEE ON HR ISSUES OF PUBLIC SECTORBANKS, June, 2010

Http://indiatoday.Intoday.In/gallery/public-sector-banks-go-on-two-day-

strike/1/7634.Html
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