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CU-BBA-Sem VI- INDUSTRIAL RELATIONS AND LABOUR LAW

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BACHELORS OF BUSINESS ADMINISTRATION SEMESTER VI INDUSTRIAL RELATIONS AND LABOUR LAWS


First Published in 2022 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 2 CU IDOL SELF LEARNING MATERIAL (SLM)


CONTENT UNIT 1: INDUSTRIAL RELATIONS UNIT 2: ROLE OF GOVERNMENT IN INDUSTRIAL RELATIONS UNIT 3: TRADE UNION UNIT 4: INDUSTRIAL DISPUTES UNIT 5: THE INDUSTRIAL DISPUTES ACT, 1947 UNIT 6: PROTECTIVE LEGISLATION UNIT 7: PROTECTIVE LEGISLATION UNIT 8: SOCIAL SECURITY LEGISLATION UNIT 9: ILO UNIT 10: COLLECTIVE BARGAINING UNIT 11: COLLECTIVE BARGAINING-1 UNIT 12: WORKERS' PARTICIPATION UNIT 13: SCHEMES UNIT 14: EMPLOYEE GRIEVANCE AND DISCIPLINE 3 CU IDOL SELF LEARNING MATERIAL (SLM)


UNIT - 1 INDUSTRIAL RELATIONS STRUCTURE 1.0 Learning Objectives 1.1 Introduction 1.2 Meaning 1.3 Importance 1.4 Concept of Industrial relations 1.5 Theories 1.6 Summary 1.7 Keywords 1.8 Learning Activity 1.9 Unit End Questions 1.10 References 1.0 LEARNING OBJECTIVES After studying this unit, you will be able to: 1. Understand the Concept and Background of Industrial Relations. 2. Know the evolution of Industrial Relations in India 1.1 INTRODUCTION Productivity in any organisation is the outcome of the joint efforts of two distinct elements namely technological and human resources. The factor of production other than labour can be manipulated easily. However, the human aspect in the organisation is the most difficult to manipulate or manage in a proper perspective. The human elements are the causes and the result of the interaction, social issues, duties, responsibilities, and other activities. The high rate of industrial growth, increased pace of technological development and complex nature of the jobs made the workforce of an organization the source of completive success. Hence, managing men has become a vital part of the present-day of management. Any negligence of the human element leads to misunderstanding between the management and workers. The results of which can be seen in the form of increased labour turnover, absenteeism, indiscipline, the decline in the quality of work done, increased cost production, and various problems in the market. 4 CU IDOL SELF LEARNING MATERIAL (SLM)


Therefore, in this context, the concept of industrial relations receives widespread attention all over the world 1.2 MEANING The term Industrial Relations comprises Industry and Relations. Industry means any productive activity in which an individual is engaged. It includes – (a) primary activities like agriculture, fisheries, plantation, forestry, horticulture, mining, etc and (b) secondary activities like manufacturing, construction, trade, transport, commerce, banking, communication, etc. Economically speaking, industry means the secondary sector where factors of production (land, labour, capital and enterprise or four M’s – men, materials, money, machines) are gainfully employed for the purpose of production, and where a business organisation exists. Relations means the relations that exist in the industry between the employer and his workforce. Different authors have defined the terms of industrial relations in a somewhat different way. 1.3 IMPORTANCE Two-fold objectives of good industrial relations are to preserve industrial peace and to secure industrial co-operation. If we have to establish industrial peace, the workers must be assured of fair wages, good conditions of work, reasonable working hours, holidays and minimum amenities of life. Industrial Relations is chiefly concerned with the management and the worker’s relations or employer-employee relations. But its scope is not limited only to this aspect. It also includes labour relations and public or community relations. The industrial relations includes four types of relations: (i) Labour relations (ii) Group relations (iii) Employer-Employee Relations (iv) Community or Public Relations. 1.4 CONCEPT OF INDUSTRIAL RELATIONS  Employer-Employee Relations The relationship that relates between the entrepreneur and the employees of a specific organization is known as the employer-employee relationship. To keep good relations, the business must treat the workers decently and should value their efforts. Additionally embracing the different human resource strategies like worker relations programs, promotions based on the performances of workers, making them productive employees the stakeholder of the organization.  Group Relations The communication and interactions between the workers having a place with various workgroups are studied under group relations.  Labor Relations 5 CU IDOL SELF LEARNING MATERIAL (SLM)


In an organization, the relationship shared by the managers and the labourers is named as work relations. It incorporates their conduct, thoughts, activities and perception against one another.  Public Relations It is also known as community relations. The communication and relationship of the organization i.e., its proprietor, the board and the employees with the general public or external bodies are known as public relations and for the long term existence in the business, each organization has to maintain cordial public tie 1.5 THEORIES The concept of industrial relations has been extended to denote the relations of the state with employers, workers and their organizations. The subject, therefore, includes individual relations and joint consultations between employers and work people at their workplace, collective relations between employers and their organizations and trade unions and the part played by the state in regulating these relations. The scenario of industrial relations is perceived differently by different people. For some, industrial relations are related to class conflict, others perceive it in terms of mutual co- operation, and still others understand it in terms of competing interests of various groups. The three popular approaches to industrial relations are the unitary approach, pluralistic approach and marxist approach. These approaches to industrial relations at a primary level are analytical categorizations and not theories having predictive values. Some of the important approaches to industrial relations are:- 1.Unitary Approach 2. Pluralistic Approach 3. Marxist Approach 4. Systems Approach 5. Oxford Approach 6. Industrial Sociology Approach 7. Action Theory Approach 8. Social Action Approach 9. Human Relations Approach 10. Gandhian Approach and 11. Human Resource Management Approach. The scenario of industrial relations is perceived differently by different people. For some, industrial relations are related to class conflict, others perceive it in terms of mutual co- operation, and still others understand it in terms of competing interests of various groups. HR managers are expected to understand these varying approaches because they provide the theoretical underpinnings for much of the role of HRM. The three popular approaches to industrial relations are the unitary approach, Pluralistic approach, and Marxist approach. These approaches to industrial relations at a primary level are analytical categorizations and not theories having predictive values. Also, authors are of the opinion that there is no one right approach, rather these approaches, individually or collectively, provide an opportunity for creating a paradigm for understanding the complexity and diversity among the various actors and players in Industrial Relation 6 CU IDOL SELF LEARNING MATERIAL (SLM)


Approach # 1. Unitary: The unitary approach is based on the strong argument that there is only one source of authority i.e., the management, which owns and controls the dynamics of decision making in issues relating to negotiation and bargaining. Under unitary approach, industrial relations are grounded in mutual co-operation, individual treatment, team-work, and shared goals. Work place conflict is seen as a temporary aberration, resulting from poor management, from employees who do not mix well with the organizational culture. Unions co-operate with the management and the management’s right to manage is accepted because there is no ‘we-they’ feeling. The underlying assumption is that everyone benefits when the focus is on common interest and promotion of harmony. Conflict in the form of strikes is not only regarded as necessary but destructive. Advocates of the unitary approach emphasize on a reactive industrial relations strategy. They seek direct negotiations with employees. Participation of government, tribunals and unions is not sought or is seen as being necessary for achieving harmonious employee relations. The unitary approach is being criticized as a tool for seducing employees away from unionism and socialism. It is also criticized as manipulative and exploitative. Approach # 2. Pluralistic: The pluralistic approach totally departs from the unitary approach and assumes that the organization is composed of individuals who form distinct groups with their own set of aims, objectives, leadership styles, and value propositions. The organization is multi structured and there will be continued tension due to conflicts within and between the various sectional groups. In contrast to the unitary approach, the pluralistic approach considers conflict between management and employees as rational and inevitable. The pluralistic approach perceives: i. Organizations as coalitions of competing interests, where the role of the management is to mediate amongst the different interest groups. ii. Trade unions as legitimate representatives of employee interests. iii. Stability in industrial relations as the product of concessions and compromises between management and unions. Legitimacy of the management’s authority is not automatically accepted. Conflict between the management and workers is understood as inevitable and, in fact, is viewed as conducive for innovation and growth. Employees join unions to protect their interests and influence decision-making by the management. Unions, thus, balance the power between the management and employees. In the pluralistic approach, therefore, a strong union is not only desirable but necessary. Similarly, society’s interests are protected by state intervention through legislation and industrial tribunals which provide orderly process for regulation and resolution of conflict. 7 CU IDOL SELF LEARNING MATERIAL (SLM)


The theories on pluralism were evolved in the mid-sixties and early seventies when England witnessed a resurgence of industrial conflicts. However, the recent theories of pluralism emanate from British scholars, and in particular, from Flanders and Fox. According to pluralists, industrial conflict is inevitable and it needs to be contained within the social mechanism of collective bargaining, conciliation, and arbitration. Approach # 3. Marxist: Also known as the ‘Radical Perspective’, the Marxist approach is based on the proposition that the economic activities of production, manufacturing, and distribution are majorly governed by the objective of profit. Marxists, like the pluralists, regard conflict between employers and employees as inevitable. However, pluralists believe that the conflict is inevitable in all organizations. Marxists see it as a product of the capitalist society. Adversarial relations in the workplace are simple one aspect of class conflict. The Marxist approach, thus, focuses on the type of society in which an organization functions. Conflict arises not only because of competing interests within the organization, but because of the division within society between those who won or manage the means of production and those who have only their labour to offer. Industrial conflict is, thus, seen as being synonymous with political and social unrest. The Marxist approach argues that for social change to take place, class conflict is required. Social change initiates strong reactions from the worker class and bridges the gap between the economically settled owners of factors of production and the economically dependent worker class. This approach views pluralism as unreal and considers industrial disputes and class conflicts as inevitable for the circular functioning of an industry. Trade unions are seen both as labour reaction to exploitation by capital, as well as a weapon to bring about a revolutionary social change. Concerns with wage-related disputes are secondary. Trade unions focus on improving the position of workers within the capitalist system and not to overthrow. For the Marxists, all strikes are political. Besides, Marxists regard state intervention via legislation and the creation of industrial tribunals as supporting management’s interest rather than ensuring a balance between the competing groups. This view is in contrast to the belief of the pluralists who argue that state intervention is necessary to protect the overall interest of society. To Marxists, the pluralist approach is supportive of capitalism, the unitary approach anathema. Consequently, enterprise bargaining, employee participation, cooperative work culture, and the like which help usher in cordial industrial relations are not acceptable to Marxists. Such initiatives are regarded as nothing more than sophisticated management techniques designed to reinforce management control and the continuation of the capitalist system. Approaches to Industrial Relations – Given by Eminent Management Thinkers: A. Prof. John T. Dunlop, Flanders, Margerison, Henry Sanders and a Few Others 8 CU IDOL SELF LEARNING MATERIAL (SLM)


1. A. Prof. John T. Dunlop – Systems Approach in “Industrial Relations Systems” 1958: Among the contributions, the most outstanding has been that of Harvard University. His systems treatment deserves special mention in view of its wider applicability. His book Industrial Relations Systems (1958) was a pioneering volume in which he presented an analytical framework of industrial relations. Dunlop defines an industrial relations system in the following way – An industrial relations system at any one time in its development is regarded as comprised of certain actors, certain contexts, an ideology, which binds the industrial relations system together, and a body of rules created to govern the actors at the workplace and work community. There are three sets of independent variables – the ‘actors’, the ‘contexts’ and the ‘ideology’ of the system. The actors are – (a) hierarchy of managers and their representatives in supervision, (b) a hierarchy of workers (non-managerial) and any spokesmen, and (c) specialised governmental agencies (and specialised private agencies created by the first two actors) concerned with workers, enterprises, and their relationships. The contexts are the environment in which the actors are interacting with each other at various levels and the ideology is their philosophy of industrial relations. 2. Flanders – the Oxford Approach: According to this approach, the industrial relations system is a study of institutions of job regulations and the stress is on the substantive and procedural rules as in Dunlop’s model. Flanders, the exponent of this approach, considers every business enterprise a social system of production and distribution, which has a structured pattern of relationships. The “institution of job regulation” is categorised by him as internal and external – the former being an internal part of the industrial relations system such as code of work rules, wage structure, internal procedure of joint consultation, and grievance procedure. He views trade unions as an external organisation and excludes collective agreements from the sphere of internal regulation. According to him, collective bargaining is central to the industrial relations system. The “Oxford Approach” can be expressed in the form of an equation – r = f (b) or r = f (c) where, r = the rules governing industrial relations b = collective bargaining c = conflict resolved through collective bargaining. The “Oxford Approach” can be criticised on the ground that it is too narrow to provide a comprehensive framework for analysing industrial relations problems. It over emphasises the significance of the political process of collective bargaining in and gives insufficient weight to the role of the deeper influences in the determination of rules. Institutional and power factors are viewed as of paramount importance, while variables such as technology, market, status of the parties, and ideology, are not given any prominence. 9 CU IDOL SELF LEARNING MATERIAL (SLM)


3. Margerison – the Industrial Sociology Approach: G. Margerison, an industrial sociologist, holds the view that the core of industrial relations is the nature and development of the conflict itself. Margerison argued that conflict is the basic concept that should form the basis of the study of industrial relations. The author criticised the prevalent approach to industrial relations, which was more concerned with studying the resolution of industrial conflict than its generation; with the consequences of industrial disputes than on their causes. According to this school of thought, there are two major conceptual levels of industrial relations. One is the intra plant level where situational factors, such as job content, work task and technology, and interaction factors produce three types of conflict – distributive, structural, and human relations. These conflicts are being resolved through collective bargaining, structural analysis of the socio-technical systems and man-management analysis respectively. The second level is outside the firm and, in the main, concerns with the conflict not resolved at the intra-organisational level. However, this approach rejects the special emphasis given to rule determination by the “Systems and Oxford models”. In its place, it suggests a method of inquiry, which attempts to develop sociological models of conflicts. 4. Henry Sanders – the Action Theory Approach: Like the systems model, the action theory approach takes the collective regulation of industrial labour as its focal point. The actors operate within a framework, which can at best be described as a coalition relationship. The actors, it is claimed, agree in principle to cooperate in the resolution of the conflict, their cooperation taking the form of bargaining. Thus, the action theory analysis of industrial relations focuses primarily on bargaining as a mechanism for the resolution of conflicts. Whereas, the systems model of industrial relations constitutes a more or less comprehensive approach, it is hardly possible to speak of one uniform action theory concept. 5. Karl Marx – the Marxist Approach: The class conflict analysis of industrial relations derives its impetus from Marxist social thinking and interpretation. Marxism is essentially a method of social enquiry into the power relationships of society and a way of interpreting social reality. The application of Marxian theory as it relates to industrial relations derives indirectly from later Marxist scholars rather than directly from the works of Marx himself. Industrial relations, according to Marxists, are in the first instance, market-relations. To Marxists, industrial relations are essentially politicised and part of the class struggle. For Marxists industrial and employee relations can only be understood as part of a broader analysis of capitalist society in particular the social relations of production and the dynamics 10 CU IDOL SELF LEARNING MATERIAL (SLM)


of capital accumulation. As Marx himself put it, “the mode of production in material life determines the general character of the social, political and spiritual process of life.” The Marxist approach is primarily oriented towards the historical development of the power relationship between capital and labour. It is also characterised by the struggle of these classes to consolidate and strengthen their respective positions with a view to exerting greater influence on each other. In this approach, industrial relations is equated with a power- struggle. The price payable for labour is determined by a confrontation between conflicting interests. The capitalist ownership of the enterprise endeavour to purchase labour at the lowest possible price in order to maximise their profits. The lower the price paid by the owner of the means of production for the labour he employs, the greater is his profit. The Marxist analysis of industrial relations, however, is not a comprehensive approach as it only takes into account the relations between capital and labour. It is rather, a general theory of society and of social change, which has implications for the analysis- of industrial relations within what Marxists would describe as capitalist societies. 6. Kerr – the Pluralist Approach: Pluralism is a major theory in labour-management relations, which has many powerful advocates. The focus is on the resolution of conflict rather than its generation, or, in the words of the pluralist, on ‘the institutions of job regulation.’ Kerr is one of the important exponents of pluralism. According to him, the social environment is an important factor in industrial conflicts. The isolated masses of workers are more strike-prone as compared to dispersed groups. When industrial jobs become more pleasant and employees’ get more integrated into the wider society, strikes will become less frequent. Ross and Hartman’s cross national comparison of strikes postulates the declining incidents of strikes as societies industrialise and develop appropriate institutional framework. They claim that there has been a decline in strike activity all over the world in spite of an increase in union membership. The theories on pluralism were evolved in the mid-sixties and early seventies when England witnessed a dramatic resurgence of industrial conflicts. However, the recent theories of pluralism emanate from British scholars, and in particular from Flanders and Fox. According to Flanders, conflict is inherent in the industrial system. He highlighted the need for a formal system of collective bargaining as a method of conflict resolution. Fox distinguishes between two distinct aspects of relationship between workers and management. The first is the market relationship, which concerns with the terms and conditions on which labour is hired. This relationship is essentially economic in character and based on contracts executed between the parties. 11 CU IDOL SELF LEARNING MATERIAL (SLM)


The second aspect relates to the management’s dealing with labour, the nature of their interaction, negotiations between the union and management, distribution of power in the organisation, and participation of the union in joint decision-making. The major critics of the pluralist approach are the Marxists according to whom exploitation and slavery will continue unabated in the institutional structure of pluralism. The only difference is that in such a social structure, the worker will be deemed to be a better-paid wage slave. 7. Max Weber – the Social Action Approach: The social action approach of Weber has laid considerable importance to the question of control in the context of increasing rationalisation and bureaucratization. Closely related to Weber’s concern related to control in organisations was his concern with “power of control and dispersal”. Thus, a trade union in the Weber’s scheme of things has both economic purposes as well as the goal of involvement in political and power struggles. Some of the major orientations in the Weberian approach have been to analyse the impact of techno-economic and politico-organisational changes on trade union structure and processes, to analyse the subjective interpretation of workers’ approaches to trade unionism and finally to analyse the power of various components of the industrial relations environment – government, employers, trade unions and political parties. Thus, the Weberian approach gives the theoretical and operational importance to “control” as well as to the power struggle to control work organisations – a power struggle in which all the actors in the industrial relations drama are caught up. 8. Elton Mayo with Roethlisberger, Whitehead, W. F. Whyte and Homans – the Human Relations Approach: In the words of Keith Davies, human relations are “the integration of people into a work situation that motivates them to work together productively, cooperatively and with economic, psychological and social satisfactions.” According to him, the goals of human relations are – (a) to get people to produce, (b) to cooperate through mutuality of interest, and (c) to gain satisfaction from their relationships. The human relations school founded by Elton Mayo and later propagated by Roethlisberger, Whitehead, W. F. Whyte and Homans offers a coherent view of the nature of industrial conflict and harmony. The human relations approach highlights certain policies and techniques to improve employee morale, efficiency and job satisfaction. It encourages the small work group to exercise considerable control over its environment and in the process helps to remove a major irritant in labour-management relations. But there was reaction against the excessive claims of this school of thought in the sixties. 12 CU IDOL SELF LEARNING MATERIAL (SLM)


Some of its views were criticised by Marxists, pluralists, and others on the ground that it encouraged dependency and discouraged individual development, and ignored the importance of technology and culture in industry. Taking a balanced view, however, it must be admitted that the human relations school has thrown a lot of light on certain aspects such as communication, management development, and acceptance of work place as a social system, group dynamics, and participation in management. 9. M K Gandhi – The Gandhian Approach: Gandhiji can be called one of the greatest labour leaders of modern India. His approach to labour problems was completely new and refreshingly human. He held definite views regarding fixation and regulation of wages, organisation and functions of trade unions, necessity and desirability of collective bargaining, use and abuse of strikes, labour indiscipline, and workers participation in management, conditions of work and living, and duties of workers. The Ahmedabad Textile Labour Association, a unique and successful experiment in Gandhian trade unionism, implemented many of his ideas. Gandhiji had immense faith in the goodness of man and he believed that many of the evils of the modern world have been brought about by wrong systems and not by wrong individuals. He insisted on recognising each individual worker as a human being. He believed in non- violent communism, going so far as to say that “if communism comes without any violence, it would be welcome.” Gandhiji laid down certain conditions for a successful strike. These are – (a) the cause of the strike must be just and there should be no strike without a grievance; (b) there should be no violence; and (c) non-strikers or “blacklegs” should never be molested. He was not against strikes but pleaded that they should be the last weapon in the armoury of industrial workers and hence, should not be resorted to unless all peaceful and constitutional methods of negotiations, conciliation and arbitration are exhausted. His concept of trusteeship is a significant contribution in the sphere of industrial relations. According to him, employers should not regard themselves as sole owners of mills and factories of which they may be the legal owners. They should regard themselves only as trustees, or co-owners. He also appealed to the workers to behave as trustees, not to regard the mill and machinery as belonging to the exploiting agents but to regard them as their own, protect them and put to the best use they can. In short, the theory of trusteeship is based on the view that all forms of property and human accomplishments are gifts of nature and as such, they belong not to any one individual but to society. Thus, the trusteeship system is totally different from other contemporary labour relations systems. It aimed at achieving economic equality and the material advancement of the “have-nots” in a capitalist society by non-violent means. 13 CU IDOL SELF LEARNING MATERIAL (SLM)


Gandhiji realised that relations between labour and management can either be a powerful stimulus to economic and social progress or an important factor in economic and social stagnation. According to him, industrial peace was an essential condition not only for the growth and development of the industry itself, but also in a great measure, for the improvement in the conditions of work and wages. At the same time, he not only endorsed the workers’ right to adopt the method of collective bargaining but also actively supported it. He advocated voluntary arbitration and mutual settlement of disputes. He also pleaded for perfect understanding between capital and labour, mutual respect, recognition of equality, and strong labour organisation as the essential factors for happy and constructive industrial relations. For him, means and ends are equally important. 10. Human Resource Management Approach: The term, human resource management (HRM) has become increasingly used in the literature of personnel/industrial relations. The term has been applied to a diverse range of management strategies and, indeed, sometimes used simply as a more modern, and therefore more acceptable, term for personnel or industrial relations management. Some of the components of human resource management are – (a) human resource organisation; (b) human resource planning; (c) human resource systems; (d) human resource development; (e) human resource relationships; (f) human resource utilisation; (g) human resource accounting; and (h) human resource audit. This approach emphasises individualism and the direct relationship between management and its employees. Therefore, it questions the collective regulation basis of traditional industrial relations. Approaches to Industrial Relations – 4 Main Approaches: Human Relations Approach, Psychological Approach, Gandhian Approach and Sociological Approach Industrial relation issues are complex and multifarious. They are the results of social, cultural, economic, political and governmental factors. An economist interprets industrial conflict in term of impersonal market forces, a psychologist interprets in term of individual goals, and organisational goals motivation, etc., similarly a sociologist interprets from his own view point But the study of industrial relations should be from the multi-disciplinary approach. 1. Human Relations Approach to Industrial Relations: Human resources are made up of living human beings and not machines. They need freedom of speech, of thought, of expression of movement and of control over their timings. This approach implies that relationship between employees and employers are between two human beings, the human relations include the relationship during the out of employment situations also. 2. Psychological Approach to Industrial Relations: According to psychologists issues to industrial relations have the differences in the perception of management, unions and rank and file of workers. The perpetual differences arise due to 14 CU IDOL SELF LEARNING MATERIAL (SLM)


differences in personalities, attitudes, etc. Similarly, factors like motivation, leadership, group versus individual goals, etc., are responsible for industrial conflicts. 3. Gandhian Approach to Industrial Relations: Mahatma Gandhi’s views on industrial relation are based on his fundamental principles of truth, non- possession. Under the principle of non-violence and truth, Gandhi meant a peaceful co-existence of capital and labour. Trusteeship implies cooperation between capital and labour. 4. Sociological Approach to Industrial Relations: Industry is a social world in miniature, organisations are communities of individuals and groups with differing personalities, educational and family backgrounds, emotions, sentiments, etc., these differences in individuals create problems of conflict and competition among the members of industrial societies. Approaches to Industrial Relations – Multidisciplinary Approaches are: Psychological Approach, Sociological Approach, Human Relations Approach & Gandhian Approach Issues in the field of Industrial Relations are complex, demanding, and multidisciplinary in nature. Several factors such as – social, cultural, political and government can affect the dynamics of Industrial Relations. (1) Psychological Approach: This approach considers each member of the industry as an individual with his/her own unique set of beliefs, values and personality. Such individual differences serve as potential factors affecting the morale, motivation, productivity, and interpersonal relationships at work. (2) Sociological Approach: The industry has society like characteristics and community alike features in terms of relationship dynamics, hierarchy, and transactions. (3) Human Relations Approach: The Human Relations approach considers human beings as having the right and freedom of thought and action. The focus of this approach is on the relationship and transaction between the management and the workers. The main proponent of the Human Relations approach is Keith Davis. In his opinion, the goals of this approach is to ensure collectivism among the members for efficient production through extensive coverage of mutual interests. (4) Gandhian Approach: Mahatma Gandhi stated, “After a great deal of experience it seems to me that those who want to become passive resisters for the service of the country have to observe – (i) perfect chastity (ii) adopt poverty (iii) follow truth and (iv) cultivate fearlessness.” He laid great stress on non-violence (ahimsa) as a symbol of strength and believed that non- violence alone has the capacity to solve all problems. He emphasized on the peaceful co- existence of capital and labour. In his opinion, strikes should be avoided and voluntary arbitration should be used whenever and where possible. 15 CU IDOL SELF LEARNING MATERIAL (SLM)


Approaches to Industrial Relations – 3 Important Approaches: Unitary Approach, Pluralistic Approach Marxist Approach Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without labour management. So that, it is the interest of all to create and maintain good relations between employers and employees. Generally, industrial relations means the relationships between employers and employees in industrial organisations. But, in the broad sense, the term industrial relations includes the relations between the various unions between the state and the unions as well as those between the employers and the government. Relations of all these associated in industry may be called industrial relations. It also involve the study of how people get on together at their work, what difficulties arise between them, how relations among them are regulated and what organisations are set up to protect different interest. According to Encyclopaedia Britannica, “The concept of industrial relations has been extended to denote the relations of the state with employers, workers and their organizations. The subject, therefore, includes individual relations and joint consultations between employers and work people at their workplace, collective relations between employers and their organizations and trade unions and the part played by the state in regulating these relations.” There are three approaches: (i) Unitary Approach (ii) Pluralistic approach (iii) Marxist Approach. Approach # 1. Unitary: Under this approach, mutual cooperation, team spirit and shared goals play a significant role. Any conflict is seen as a result of a temporary aberration resulting from poor management. Direct negotiation with workers is encouraged. This approach is criticised as a tool for seducing workers away from unionism/socialism. It is also criticised as manipulation and exploitation. Approach # 2. Pluralistic: This approach perceives organisation as a coalition of competing interest between management and different groups, trade unions as legitimate representative of employee’s interests and stability in Industrial Relation as the product of concessions and compromises between management and workers. Unions, therefore balance the power between management and employees. Therefore, strong unions are desirable and necessary. Approach # 3. Marxist: This approach also regards conflict between employers and employees inevitable. Marxists consider conflict as a product of the capitalistic society – the gap between “Haves and Have Not’s”. Trade Unions focus on improving the position of workers but workers’ participation in management, cooperative work culture etc., are not acceptable to the Marxis 16 CU IDOL SELF LEARNING MATERIAL (SLM)


1.6 SUMMARY  Labour market is significant and the most sensitive issue in our nation. While making labour reforms the officials need to consider the interest of all the stakeholders related to it. It ought not so to happen that the change impacts any of the party in a manner which isn’t so acceptable or desirable. The perspective of workers needs to change and be more acceptable with regard to changes. Let them be aware that every change will not result in the loss of jobs for them or their fellow members.  The Union Government as a major aspect of labour law reforms has embraced the drive to rationalize 38 Labor Acts by outlining 4 labour codes viz Code on Wages, Code on Social Security, Code on Industrial Relations and Code on Occupational Safety, well being and working conditions. The codification of labour Laws will eliminate an assortment of definitions and specialists promoting simplicity of compliance without compromising wage security and social security to all the workers. Trusting that this will bring updates which are applicable in the present time and the changes or reforms are not made for the sake of it.  The Supreme Court of India assumed a significant job especially in ensuring the interest of helpless local workers by ignoring the strict legally binding laws and gave social justice to them. The role played by the Judiciary in giving justice and furthermore to the maintenance of good labour and the management relations. There is no uncertainty that justice alone can maintain relations between the representatives and employers and by which a country can accomplish productivity and industrial peace and harmony.  Industrial Relations is essential for achieving democracy as it allows the workers to take part in the management, which helps to ensure and protect the human rights of individuals. In today’s world, the organizations realize that Human Resource is the biggest asset and are adopting policies like job rotation, competence building etc which promotes the overall development of the workers and hence it helps in maintaining and establishing good relations at the workplace 1.6 KEYWORD  Board representation: It was the view of many in the Indian Independence Movement, including Mahatma Gandhi, that workers had as much of a right to participate in management of firms as shareholders or other property owners.[29] Article 43A of the Constitution, inserted by the Forty-second Amendment of the Constitution of India in 1976,[6] created a right to codetermination by requiring the state to legislate to \"secure the participation of workers in the management of 17 CU IDOL SELF LEARNING MATERIAL (SLM)


undertakings\". However, like other rights in Part IV, this article is not directly enforceable but instead creates a duty upon state organs to implement its principles through legislation (and potentially through court cases). In 1978 the Sachar Report recommended legislation for inclusion of workers on boards, however this had not yet been implemented.[30] The Industrial Disputes Act 1947 section 3 created a right of participation in joint work councils to \"provide measures for securing amity and good relations between the employer and workmen and, to that end to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters\". However, trade unions had not taken up these options on a large scale. In National Textile Workers Union v Ramakrishnan[31] the Supreme Court, Bhagwati J giving the leading judgment, held that employees had a right to be heard in a winding up petition of a company because their interests were directly affected and their standing was not excluded by the wording of the Companies Act 1956 section 398. It is repealed by the Industrial Relations Code, 2020.  Collective action The Industrial Disputes Act 1947 regulates how employers may address industrial disputes such as lockouts, layoffs, retrenchment etc. It controls the lawful processes for reconciliation, adjudication of labour disputes. According to fundamental rules (FR 17A) of the civil service of India, a period of unauthorised absence- (i) in the case of employees working in industrial establishments, during a strike which has been declared illegal under the provisions of the Industrial Disputes Act, 1947, or any other law for the time being in force; (ii) in the case of other employees as a result of action in combination or in concerted manner, such as during a strike, without any authority from, or valid reason to the satisfaction of the competent authority; shall be deemed to cause an interruption or break in the service of the employee, unless otherwise decided by the competent authority for the purpose of leave travel concession, quasi- permanency and eligibility for appearing in departmental examinations, for which a minimum period of continuous service is required  Industrial Relations Code, 2020 The Industrial Relations Code, 2020 consolidated and amended the laws relating to Trade Unions, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes. The act combines and simplifies 3 Central Labour Laws  Equality Article 14 states everyone should be equal before the law, article 15 specifically says the state should not discriminate against citizens, and article 16 extends a right of \"equality of opportunity\" for employment or appointment under the state. Article 23 prohibits all 18 CU IDOL SELF LEARNING MATERIAL (SLM)


trafficking and forced labour, while article 24 prohibits child labour under 14 years old in a factory, mine or \"any other hazardous employment\".  Sexual Orientation and Gender Identity The Transgender Persons (Protection of Rights) Act, 2019 bans discrimination on the basis of gender identity in employment. Furthermore, the following judicial orders ban discrimination on the basis of sexual orientation in employment. Navtej Singh Johar v. Union of India, Sexual orientation is protected under the right to privacy and LGBT rights are protected by the Indian constitution under Article 15. Pramod Kumar Sharma v. State of Uttar Pradesh, prohibits discrimination and firing from employment on the grounds of sexual orientation.  Caste Discrimination The Scheduled Caste and Scheduled Tribe (Prevention of Atrocities) Act, 1989 bans discrimination on the basis of caste including in employment and pursuance of profession or trade. The legislation has often been called the \"world's most powerful anti-discrimination law\". Migrant workers Interstate Migrant Workmen Act 1979, It is now replaced by the Occupational Safety, Health and Working Conditions Code, 2020 Vulnerable groups Bonded Labour System (Abolition) Act 1976, abolishes bonded labour, but estimates suggest that between 2 million and 5 million workers still remain in debt bondage in India. Domestic workers in India Child labour in India is prohibited by the Constitution, article 24, in factories, mines and hazardous employment, and that under article 21 the state should provide free and compulsory education up to a child is aged 14. However, in practice, the laws are absolutely not enforced. 1.7 LEARNING ACTIVITY 1. Explain the meaning of Industrial relations. 2. Importance of Industrial relations. 3.Explain Employer- Employee relation. 4. what is the importance of Group relations. 5. Explain Public Relations. 19 CU IDOL SELF LEARNING MATERIAL (SLM)


1.8 UNIT END QUESTIONS A. Descriptive Questions Long Questions 1. Explain the concept of Industrial relations 2. Explain the various theories of Industrial relations 3. Explain the Unitary Approach. 4. Explain the Pluralistic Approach 5. Explain Marxist Approach 6. Explain Systems Approach 7. Explain Action Theory Approach Short Questions 1. Explain Social Action Approach 2. Explain Human relations Approach. 3. Explain Gandhian approach 4. Explain Human Resource management approach 5. Explain the theory given by Prof. John T. Dunlop 6. Explain the theory given by Flanders Margerison. 7. Explain the theory given by Henry Sanders 8. Explain theory by M.K. Gandhi B. Multiple Choice Questions 1. Industrial relations are used to denote the collective relationships between management and the workers. (a) True (b) False 2. Which of the following is usually not an objective of industrial relations? 20 CU IDOL SELF LEARNING MATERIAL (SLM)


(a) Connectedness (b) Collective wisdom (c) Conflict prevention (d) None of these 3. Identify the major actor of industrial relations from the following. (a) Employers (b) Unions (c) Government (d) All of these 4. That the authority rests solely with the management with no right to anyone to challenge it is the basis of the (a) Pluralist approach (b) System approach (c) Unitary approach (d) Social action approach 5. The balance of power is not vested with any one group; rather, it is maintained between the parties to the industrial relations.” This is the essence of the (a) Pluralist approach (b) System approach (c) Unitary approach (d) Social action approach 6. That the behaviour, actions and role of the individuals are primarily shaped by the cultures of the society is the basic assumption in the (a) Pluralist approach (b) System approach 21 CU IDOL SELF LEARNING MATERIAL (SLM)


(c) Unitary approach (d) Social action approach 7. Industrial relations mean relationship between management and employees and their organization that characterize or grow out of employment. (a) True (b) False 8. “Organizations are made up of people and the success of management lies in its dealings with these people.” This is the fundamental of the (a) Marxist approach (b) Gandhian approach (c) Human relations approach (d) Giri approach 9. Maintenance of harmonious industrials relations is on vital importance for the survival and growth of the industrials enterprise. (a) True (b) False 10. In explaining why employees join unions, what term is used to describe employee dissatisfaction with their work situation? (a) The frustration-aggression thesis. (b) Interactions explanation. (c) The rational choice explanation. (d) None of these ANSWERS: 22 Q-1 a, Q-2 d, Q-3 d, Q-4 c, Q-5 a, Q-6 b, Q-7 a, Q-8 c, Q-9 a, Q-10 a CU IDOL SELF LEARNING MATERIAL (SLM)


1.9 REFERENCES 1. Industrial relations - Arun Monappa - Tata McGraw hill-2000 2. Industrial Relations, Trade Unions, and Labour Legislation, PRN Sinha, Pearsons educations 2000 3. Industrial relations and trade unions – P R N Sharma – Pearsons educations, Singapur 4. Dynamics of industrial relations – Mamoria, Gankar – Himalaya Publishing House-2003 5. Industrial relations and Labour legislations- M.R. Sreenivasan 6. Industrial relations : Theory and Practice- Edited by Trevor Cplling and Mike Terry, Third Edition 7. Industrial Relations and Labour Law: A.M. Sarma 8. www.mbaknol.com 9. www.economicsdiscussion.net 23 CU IDOL SELF LEARNING MATERIAL (SLM)


UNIT – 2 STRUCTURE 1.0 Learning Objective Missing full Unit 24 CU IDOL SELF LEARNING MATERIAL (SLM)


UNIT - 3 TRADE UNION STRUCTURE 3.0 Learning Objectives 3.1 Introduction 3.2 Objectives 3.3 Functions 3.4 Problems of Indian Trade Unions 3.5 The Trade Union Act, 1926 3.6 Summary 3.7 Keywords 3.8 Learning Activity 3.9 Unit End Questions 3.10 References 3.0 LEARNING OBJECTIVES After the end of this unit you will learn about:  Objectives of Trade Union  Functions of Trade Union  Problems of the Trade Union  Also learn about the Trade Union Act, 1926 3.1 INTRODUCTION Trade unions are connections of workers or organization, which consists of labor, workers or employees to fulfill their demands and for better scenarios at their work place. These are also known as labor unions. A labor union or a trade union, is a company of workers who have came together to attain goals in fields such as wages & working conditions. The union makes sure to discuss the contracts & conditions with employers & keep them satisfied & protect them from unsafe working environment. These unions are only present to deal with the issues faced by the workers. These issues can be of any nature like pay, timings, work rules etc. Trade unions are governed by different laws in different countries. With privileges or rights of the 25 CU IDOL SELF LEARNING MATERIAL (SLM)


trade unions provided by law of trade unions, it should perform certain duties with respect to workers. The main goal of trade unions is collective bargaining. In India, these unions can only be formed by people actively involved in trade or business. 3.2 OBJECTIVES a. Negotiating machinery- Trade union act as a negotiating machinery. By collective bargaining they will aim at reaching an agreement that will regulate working conditions. b. Wages and salaries- It is the issue which attracted major attention of trade unions. Often management has certain policies which determine the wages of the employees. But differences may arise in process of implementation of those. Active role is played by trade unions in bargaining the pay scale in the unorganised sector. c. Working conditions-Another important aim of the trade unions is to improve the working conditions of the workers. They negotiate with management to provide basic facilities to safeguard the health of workers. These facilities include lighting and ventilation, sanitation, safety equipment while discharging hazardous duties, refreshment, proper working hours, social security benefits and other welfare measures. d. Discipline- Often management imposes unilateral acts and disciplinary policies on the workers. Trade unions intervene in these cases and protect the workers from the clutches of the management. Often management penalises workers by means of transfers, suspension, dismissal etc. In those cases trade union usually protects the workers and fight against the injustice done to him. e. Personal Policies-Trade unions often negotiate with the management with respect to personal policies. These include recruitment, selection, promotion, transfers, training etc. f. Welfare-Trade unions look after the welfare of the workers. They act as a guide. They provide consultation and help workers to overcome their problems. Through collective bargaining, they make management aware of the difficulties faced by the workers related to sanitation, hospitals, schools and colleges for their children etc. g. Employee employer relation- In order to work in peace harmonious relation is required between the management and the workers. But often one sided policies and decisions affect the harmony. This may lead to serious conflict between the employer and the workers. Trade union tries to solve the conflict through negotiations with the management. h. Safeguarding organisational health and the interest of the industry- An organisation must have an attitude to address the grievances of the employees and takes step accordingly. 26 CU IDOL SELF LEARNING MATERIAL (SLM)


This will reduce the rate of absenteeism and will improve employee relations. Trade unions may achieve employee satisfaction by working effectively. They will help in reducing the rate of absenteeism. The systematic grievance settlement procedures will help in maintaining harmonious industrial relations. This will lead to improvement in level of production and productivity. There will be more discipline and work life will improve 3.3 FUNCTIONS Some of the most important functions of the trade union are as follows: i. Increasing Co- operation and Well-being among Workers ii. Securing Facilities for Workers iii. Establishing Contacts between the Workers and the Employers iv. Trade Unions working for the Progress of the Employees v. Safeguarding the Interests of the Workers vi. Provision of Labor Welfare. i. Increasing Co-operation and Well-being among Workers: The modern industry is complex and demands specialization in jobs. This results in extreme division of labor, which leads to the growth of individualism and development of impersonal and formal relationships. There is no common unifying bond among the workers. It is in this context that the trade unions come into the picture and they promote friendliness and unity among the workers. Besides this, the trade unions also discuss the problems, which are common to all the workers. It is a platform where workers come together and know each other. The trade unions also provide some kind of entertainment and relaxation to the workers. ii. Securing Facilities for Workers: Most of the industrialists are not very keen on providing the facilities and proper working conditions to the workers. They are more interested in getting their work done to the maximum extent. In such conditions, trade unions fight on behalf of the workers and see that the facilities have been provided by the management. iii. Establishing Contacts between the Workers and the Employers: In present days, there are many industries, which have grown into giants. A single unit in a particular industry may employ hundreds of employees. Many times a worker or employee may not have a chance to see their managers. In this situation, the workers are not able to express their grievances before their employers, and even the management does not know the difficulties faced by the workers. The trade unions play an important role in bringing to the notice of the employers the diffi- culties and grievances of the employees. They try to arrange face-to-face meetings and thus try to establish contacts between the employees and the employers. iv. Trade Unions working for the Progress of the Employees: The trade unions try to improve the economic conditions of the workers by representing their cases to the employers and try to get adequate bonus to the workers. 27 CU IDOL SELF LEARNING MATERIAL (SLM)


v. Safeguarding the Interests of the Workers: Most of the industries try to exploit the workers to the maximum. They do not provide any benefits such as increasing their wages, granting sick leaves, giving compensation in case of accidents, etc. The workers are not made permanent even after many years of service and in some cases they are removed from service summarily. The trade unions provide security to the employees in such situations. vi. Provision of Labor Welfare: The economic conditions of the industrial workers in India are very poor. The standard of living is very low. A majority of industrial workers in India are illiterate or semi-literate. It is the responsibility of the trade unions to get them proper housing facilities and promote the socio-economic welfare of the laborers. The trade unions also try to arrange educational facilities for the children of the workers. 3.4 PROBLEMS OF INDIAN TRADE UNION Trade Unions in India have never had an easy way around anything. It has been an endless battle to simply get their voices heard let alone have them be acknowledged. The constant pressure that entails this vicious circle of the life of workmen is almost never-ending. These unions are clouded by challenges that are discussed in detail below: 1. Leadership It is a larger known fact that some Trade unions are politically influenced. The trade unions in India are often controlled by politicians and lawyers. Consequently, this acts as a major deterrent as these individuals often have zero to least experience when it comes to physical work. They do not relate to the plight of the workers, due to which it gets difficult for them to run these unions with honesty. Their driving force is quite different from that of the workers as they are usually politically driven. The primary reason for these unions being led by these intellectuals is that the members of the unions are usually illiterate. They have a poor command over language which expressly deems them to be bad orators, which is a hindering factor as one of the requirements of being a leader would be this. Another crucial drawback is that the Trade Union Act does not curtail ‘outsiders’ from being a part of trade unions, promoting outside leadership. This can seriously hamper internal growth. 2. Financial Troubles As with every other body or association, the trade unions require funds to work smoothly and effectively. This often poses a problem because the unions need to conduct events and programs related to the services promised to the members. A union that is interested in increasing its membership often has a low subscription rate and may not even collect regular subscriptions. It was observed by the National Commission of labour that union organisers often do not claim anything higher nor do the workers feel like contributing more because the services rendered by the unions do not deserve a higher fee. The unions must bear the 28 CU IDOL SELF LEARNING MATERIAL (SLM)


payment of salaries to office staff, allowances to office bearers, expenditure of annual meeting/convention expenses, rents, printing, stationery and postage etc. It gets hard to balance the expenditure and income. 3. Small Size of Union Despite the significant increase in the number of unions in India, it was not accompanied by an increase in membership. In fact, a trend of decline in membership has been observed. The formation of new unions has become inversely proportionate to its size. The average membership per union is still at 800, while it is quite large in other nations like the USA and the UK. A contributing factor to the timid size of the unions would be Trade Unions Act. According to the act, a minimum requirement of seven members is sufficient for the establishment and registration of the trade unions. This can prove to be fatal to the existing trade unions comprising of a smaller number of members as they might not have an impact on the management when it would come to put forth their grievances. It is also pertinent to note that the smaller the size of the union, the harder it is to generate funds for legal assistance or union activities. 4. Multiplicity of Unions The leaders who pledged for the formation of these unions must’ve dreamt of an India where the formation of the unions would multiply gradually leading to better efficacy in collective bargaining. On the contrary, the formation of multiple trade unions at a rapid pace has only proved to be a curse to the Indian Society as comes with it is the politics and the main objective i.e., the welfare of the workers have gotten sidelined. The scenario encircling the trade unions has simply resulted in ‘the survival of the fittest’. The trade union movement is becoming weak due to the constant fight for securing managements support and wider recognition. A humungous problem that cannot be ignored with respect to this is that most unions have always been under the shadow of political parties. And when the parties break up, the unions split too causing a multiplicity of parties. Due to the change in leadership of these parties, there are frequent changes in the leadership and functioning of the unions as well. All these factors may prove detrimental to the growth of these unions as there’s no opportunity for consistency to prevail. 5. Intra Union Rivalry As discussed above, multiple unions can do no good to the Trade Union movement. Apart from the abovementioned reasons, a grave problem created due to the multiplicity of unions is intra union rivalry. This rivalry shatters the objective behind the formation of unions. They might adopt various approaches which may not prove to be beneficial for the workmen. They might contest strikes by a rival union on baseless and vague grounds just to hinder their activities. This is a potent cause for the weakening of the trade union movement. The employers benefit greatly from intra union rivalry as it is easier to pit one union against the other due to the preexistence of feud. By doing so the crux of the matter is sidelined and the bargaining is either prolonged or put to a halt. This hinders the concept of portraying a united front and instead aids the employers to play divide and rule. 29 CU IDOL SELF LEARNING MATERIAL (SLM)


6. Politicization The political influence on Trade Unions is affluent in India and has been intertwined with politics since the Indian struggle for freedom. Initially, the unions benefited under the effectual and beneficial guidance of the political leaders, but in the long run, it defied the purpose of trade unions, the unity amongst the working class. A split in the parent political party due to ideological differences would instantly result in the split in the corresponding trade union. This had been observed several times in the past. This was first observed when the oldest trade union in India, the All India Trade Union Congress (AITUC) split into the All India Trade Union Federation (AITUF) towards the end of the 1920s. A primary cause for the fragmentation and formation of multiple trade unions is the lack of interest by the political leaders associated with their respective trade unions in the primary goal of the union. Frequent fragmentations cannot be considered healthy as they instantly give rise to intra union rivalry and exploitation of the disunity among workers by the employers. 7. Illiteracy A major problem that setbacks not just the progress of workers, but that of the entire nation is illiteracy. A large proportion of the Indian workers are illiterately resulting in exploitation by the union leaders. Due to their ignorance, they are often manipulated into working for the benefit of the political parties even if it jeopardizes worker unification. They are turned into mere political puppets in hands of outside leadership which not only deters their goal but defeats the purpose of the formation of the trade union. When illiteracy and ignorance of the workers are coupled, they are divided on the grounds of caste, race, religion, gender, etc. by the leadership for their personal political gains. The image of the trade unions will be shattered in the eyes of the masses if their primary goal of formation would be to work for the political parties behind the scenes. It would ultimately lead to the weakening of their bargaining power and not being taken seriously by the employers. 8. Apathy of workers and Role of management The previous problem leads us to the discussion of the following problem. The workers often juggle between their jobs and working effectively for the trade unions. They are often torn between working diligently either for the trade unions or at their place of work. This is due to the fact that the employment earns them a living while the trade union is an opportunity for them to voice their problems. Due to this, the workers lack showing interest in the union work unless the matter is of grave importance. Many times, the management exploits the workers’ dilemma to their own advantage. The management is of the opinion that the presence of the union simply drives a wedge between the management and the employees. They tend to blame the union for low productivity or efficiency on part of employees, deferment of work, lack of goodwill amongst customers, etc. Conclusion: The growth of trade unions in India with respect to development is not proportionate to its growth in terms of size. It’s far from reaching its utmost goal of securing unity, peace and harmony amongst the unions and simultaneously battling for their rights, problems and 30 CU IDOL SELF LEARNING MATERIAL (SLM)


development. A common trend of non-registration of trade unions has been observed in many nations especially in India. This may prove to be a hindrance in the path of achievement of goals of the unions as registration may be considered a bare minimum. Registration has drastic impacts on the working of a union that is still not fully understood by workers. In the case of B. Srinivasa Reddy v. Karnataka Urban Water Supply & Drainage Board Employees’ Association[ii] it was held that an unregistered trade union may not have any rights under Trade Unions Act or even the Industrial Disputes Act. In fact, under the Industrial Disputes Act, 1947, and the Industrial Employment (Standing Orders) Act, 1946, labour unions are defined as unions that are registered under the Trade Unions Act. Therefore, it is the need of the hour to make workers aware of this criterion as the entire existence of the trade unions depends on their mere existence. Collective bargaining is the primary means of the trade unions to resolve issues amicably with the employers must be laid emphasis on in the coming times. As with the changing laws and constant amendments, this basic ’tool’ of the workmen must not be forbidden. 3.5 THE TRADE UNION ACT,1926 Introduction Before the emergence of industrialization on a massive scale, there were personal contracts between the workers and employers. Therefore, no requirement for the evolution of any machinery governing the relationship between workers and employers arose until then. But after the establishment of modern factory system this relationship lost its significance due to large scale industrialization which enticed employers to reduce the cost of production in order to withstand the cut-throat competition in the market and maximize their profit by using technologically more sophisticated means of production which in turn resulted in the rise of a new class of workers who were completely dependant on the wages for their survival which changed the existing employer and employee relationship in which the employees were exploited by their employers. The conflict of interest between workers and employers and the distress of workers resulted in the growth of various trade unions. A trade union is an organized group of workers who strive to help the workers in the issues relating to the fairness of pay, good working environment, hours of work and other benefits that they should be entitled to instead of their labour. They act as a link between the management and workers. In spite of being newly originated institutions, they have turned into a powerful force because of their direct influence on the social and economic lives of the workers. To control and manage the working of these trade unions different legislations regulating the same required. In India Trade Unions Act of 1926 is a principal Act for controlling and managing the working of trade unions. The present article aims at explaining and bringing forth various aspects of the Act. 31 CU IDOL SELF LEARNING MATERIAL (SLM)


History of Trade Unionism in India In India trade unions have developed into an important platform for putting up the demands of the workers. They have also turned into one of the most influential pressure groups, which is an aggregate seeking to influence the government in framing legislation in favour of workers without aspiring to become part of the government. As an organized institution, trade unionism took its concrete shape after the end of World War 1. The trade unions in India are essentially the product of modern large scale industrialization and did not grow out of any existing institutions in society. The need for an organized trade union was first realized in 1875 by various philanthropists and social workers like Shri Sorabji Shapaji Bengali and Shri N.M. Lokhandey whose constant efforts resulted in the formation of trade unions like The Printers Union of Calcutta (1905), the Bombay Postal Union (1907). The setting up of textile and mill industries at the beginning of the 19th century in the presidency towns of Bombay, Madras, and Calcutta gave impetus to the formation of industrial workforce association in India. The Bombay Mill-Hands Association, founded by N.M. Lokhande in 1890 is the first labour association of India. The following years saw the rise and growth of several other labour associations and unions in India like the Madras Labour Union which is the first properly registered trade-union founded by B.P. Wadia in the year 1918, in the year 1920 the country saw the growth of the Ahmedabad Textile Labourer’s Association in Gujarat which turned into a union under the guidance of Mahatma Gandhi and is considered to be one of the strongest unions in the country of that time because of the unique method of arbitration and conciliation it had devised to settle the grievances of the workers with the employers. Since the union followed the ideals of truth and nonviolence laid down by Mahatma Gandhi it was able to secure justice to the workers in a peaceful manner without harming the harmony in the society. In the same year, the first trade union federation All India Trade Union Congress (AITUC) saw the light of the day, it was formed after the observations made by the International Labour Organization which highlighted the influence of politics on trade unions and associations and how the same is detrimental for any economy to prosper. The importance of the formation of an organized trade union was realized by nationalist leaders like Mahatma Gandhi who to improve the employer and worker relationship gave the concept of trusteeship which envisaged the cooperation of the workers and employers. According to the concept, the people who are financially sound should hold the property not only to make such use of the property which will be beneficial for themselves but should make such use the property which is for the welfare of the workers who are financially not well placed in the society and each worker should think of himself as being a trustee of other workers and strive to safeguard the interest of the other workers. Many commissions also emphasized the formation of trade unions in India for eg. The Royal Commission on labour or Whitley commission on labour which was set up in the year 1929- 30 recommended that the problems created by modern industrialization in India are similar to 32 CU IDOL SELF LEARNING MATERIAL (SLM)


the problems it created elsewhere in the world and the only solution left is the formation of strong trade unions to alleviate the labours from their miserable condition and exploitation. Development of Trade Union Law in India Labour legislation in India has a key impact on the development of industrial relations. The establishment of social justice has been the principle of all the labour legislation in India. The establishment of the International Labour Organization to uplift the condition of labour all over the world gave further impetus to the need for well-framed labour legislation in the country. Several other internal factors like the Swaraj movement of 1921-24, the royal commission on labour also paved the way for various labour laws and also encouraged the framers of the constitution to incorporate such laws in the constitution which will benefit the labourers. Under the constitution, labour is the subject of the concurrent list and both centre and state can make laws related to the subject. The different legislation on labour in the country are as follows: Apprentices Act, 1961: The object of the Act was the promotion of new manpower at skills and improvement and refinement of old skills through practical and theoretical training. Contract Labour (Regulation and Abolition) Act, 1970: The object of the Act was the regulation of employment of contract labour along with its abolition in certain circumstances. Employees’ provident funds and misc. Provision Act, 1952: The Act regulated the payment of wages to the employees and also guaranteed them social security. Factories Act, 1948: The Act aimed at ensuring the health of the workers who were engaged in certain specified employments. Minimum wages Act, 1948: The Act aimed at fixing minimum rates of wages in certain employments. Trade Union Act, 1926: The Act provided for registration of trade unions and defined the laws relating to registered trade unions. Indian Trade Union (Amendment) Act, 1947 The labours, especially the ones who work in the unorganized sectors lack the capacity to bargain and this becomes a major reason for their exploitation. The Right of collective bargaining is provided only to those trade unions which are registered but in India, there are legislations regarding the recognition of trade unions but there is no single legislation on registration of trade unions. Realizing the need of having central legislation for registration of trade unions, the parliament passed the Indian Trade Union (Amendment) Act in the year 1947. The said Act sought to introduce Chapter III-A into the Trade Union Act, 1926, which enumerated the conditions required for mandatory recognition of any trade union. however, this Act was never brought to force Therefore, the mandatory recognition of trade unions is not present under any law in force in India. Registration of Trade Unions The Trade Union Act of 1926 was passed in the year 1926 but it came into effect in the year 1927. The Act contains the provisions related to registration, regulation, benefits, and 33 CU IDOL SELF LEARNING MATERIAL (SLM)


protection for trade unions. Section 3 to Section 14 of Chapter 2 of the Act deals with the registration of trade unions in the territory of India. Section 3: Appointment of Registrars Section 3 of the Act empowers the appropriate government to appoint a person as the registrar of a trade union. The appropriate government can also appoint as many additional and deputy registrars in a trade union as it deems fit for carrying on the purposes of the Act. Section 4: Mode of Registration Section 4 of the Act provides for the mode of registration of the trade union. According to the Section, any seven or more than seven members of a trade union may by application apply for the registration of the trade union subject to the following two conditions: At Least 7 members should be employed in the establishment on the date of the making of the application. At Least 10% or a hundred members whichever is less, are employed in the establishment should be a part of it on the date of making the application. Section 6: Provisions to be contained in the rules of a Trade Union Section 6 of the Act enlists the provisions which should be contained in the rules of trade union and it provides that no trade union shall be recognized unless it has established an executive committee in accordance with the provisions of the Act and its rules specify the following matters namely: Name of the trade union; The object of the establishment of the trade union; Purposes for which the funds with the union shall be directed; A list specifying the members of the union shall be maintained. The list shall be inspected by office bearers and members of the trade union; The inclusion of ordinary members who shall be the ones actually engaged or employed in an industry with which the trade union is connected; The conditions which entitle the members for any benefit assured by the rules and also the conditions under which any fine or forfeiture may be imposed on the members; The procedure by which the rules can be amended, varied or rescinded; The manner within which the members of the manager and also the alternative workplace bearers of the labour union shall be elective and removed; The safe custody of the funds of the labour union, an annual audit, in such manner, as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the workplace bearers and members of the labour union, and; The manner within which the labour union could also be dissolved. Section 7: Power to call for further particulars and require alteration of the name Section 7 of the Act furnishes upon the registrar power to call for information in order to satisfy himself that any application made by the trade union is in compliance with the Section 34 CU IDOL SELF LEARNING MATERIAL (SLM)


5 and 6 of the Act. in matters where the discrepancy is found the registrar reserves the right to reject the application unless such information is provided by the union. This Section also confers power to the registrar to direct the trade union to alter its name or change the name if the registrar finds the name of such union to be identical to the name of any other trade union or if it finds its name to so nearly resemble the name of any existing trade union which may be likely to deceive the public or members of either of the trade union. Section 8: Registration According to Section 8 of the Act, if the registrar has fully satisfied himself that a union has complied with all the necessary provisions of the Act, he may register such union by recording all its particulars in a manner specified by the Act. Section 9: Certificate of Registration According to Section 9 of the Act, the registrar shall issue a registration certificate to any trade union which has been registered under the provision of Section 8 of the Act and such certificate shall act as conclusive proof of registration of the trade union. Section 9A: Minimum requirement related to the membership of a Trade Union Section 9A of the Act lays down the minimum number of members required to be present in any union which has been duly registered, the Sections mandates that a trade union which has been registered must at all times should continue to have not less than 10% or one hundred of the workmen, whichever is less, subject to a minimum of seven, engaged or utilized in an institution or trade with that it’s connected, as its members. Section 10: Cancellation of Registration The registrar, according to Section 10 of the Act has the power to withdraw or cancel the registration certificate of any union in any of the following conditions: On an application made by the trade union seeking to be verified in such manner as may be prescribed; If the registrar is satisfied with the fact that the trade union has obtained the certificate by means of fraud or deceit; If the trade union has ceased to exist; If the trade union has wilfully and after submitting a notice to the Registrar, has contravened any provision of the Act or has been continuing with any rule which is in contravention with the provisions of the Act; If any union has rescinded any rule provided under Section 6 of the Act. Section 11: Appeals 35 CU IDOL SELF LEARNING MATERIAL (SLM)


According to Section 11 of the Act, any union which is aggrieved by a refusal to register or withdrawal of registration made by the registrar can file an appeal: In any High Court, if the head office of the trade union is located in any of the presidency towns; In any labour court or industrial tribunal, if the trade union is located in such a place over which the labour court or the trade union has jurisdiction; If the head office of the trade union is situated in any other location, an appeal can be filed in any court which is not inferior to the Court of an additional or assistant choose of a principal Civil Court of original jurisdiction. Section 12: Registered office Section 12 of the Act lays down that all communications and notices to any trade union must be addressed to its registered office. If a trade union changes the address of its registered office, it must inform the same to the registrar within the period of fourteen days in writing and the registrar shall record the changed address in the register mentioned under Section 8 of the Act. Section 13: Incorporation of Registered Trade Union Section 13 of the Act states that every trade union which is registered according to the provisions of the Act, shall: Be corporate by the name under which it is registered. have perpetual succession and a common seal. Power to contract and hold and acquire any movable and immovable property. By the said name can sue and be sued. Rights and Liabilities of Registered Trade Unions Section 15 to Section 28 elucidates the rights which a registered trade union has and also the liabilities which can be imposed against it. Section 15: Objects on which general funds may be spent Section 15 of the Act lays down the activities only on which a registered trade union can spend its funds. These activities include: Salaries to be given to the office-bearers. The cost incurred for the administration of the trade union. Compensation to the workers due to any loss arising out of any trade dispute. Expenses incurred in the welfare activities of the workers. Benefits conferred to the workers in case of unemployment, disability, or death. The cost incurred in bringing or defending any legal suit. Publishing materials with the aim of spreading awareness amongst the workers. Education of the workers or their dependents. Making provisions for medical treatment of the workers. Taking insurance policies for the welfare of the workers. 36 CU IDOL SELF LEARNING MATERIAL (SLM)


The Section also provides that the reason of non-contribution to the said fund and also a contribution to the fund can not be made as a criterion for admission into the union. Section 16: Constitution of a Separate Fund for Political purposes Section 16 provides that a trade union, in order to promote the civic and political interests of its members can constitute a separate fund from the contributions made separately for the said purposes. No member of the union can be compelled to contribute to the fund. Section 17: Criminal conspiracy in Trade Disputes Section 17 of the Act states that no member of a trade union can be held liable for criminal conspiracy mentioned under sub Section 2 of Section 120B regarding any agreement made between the members of the union in order to promote lawful interests of the trade union. Section 18: Immunity from civil suits in certain cases Section 18 of the Act immunes the members of trade union from civil or tortious liabilities arising out of any act done in furtherance or contemplation of any trade disputes. For example. in general, a person is subject to tortious liability for inducing any person to breach a contract. But, the trade unions and its members are immune from such liabilities provided such inducement is in contemplation or furtherance of any trade disputes. Further, the inducement should be awful and should not involve any aspect of any violence, threat or any other illegal activity. Section 19: Enforceability of agreement According to Section 25, any agreement in restraint of trade is void. But under Section 19 of the Trade Unions Act, 1926 any agreement between the members of a registered trade union in restraint of trade activities is neither void nor voidable. However such right is available only with the registered trade unions as the unregistered trade unions have to follow the general contract law. Section 20: Right to inspect the books of Trade Union According to Section 20 of the Act, the account books and the list of the members of any registered trade union can be subjected to inspection by the members of the trade union at such times as may be provided under the rules of the trade union. Section 21: Rights of minors to membership of Trade Union Section 21 provides that a person who is above 15 years of age can be a member of any trade union and if he becomes a member he can enjoy all the rights conferred upon the members of the trade union subject to the conditions laid down by the trade union of which he wants to be a part of. Section 21-A: Disqualifications of office-bearers of Trade Union Section 21A of the Act lays down the conditions the fulfilment of which disqualifies a person from being a member of the trade union. The conditions laid down in the Act are as follows: If the member has not attained the age of majority If he has been convicted by any of the courts in India for moral turpitude and has been sentenced to imprisonment unless a period of five years has elapsed since his release. Section 22: Proportion of office-bearers to be connected with the industry 37 CU IDOL SELF LEARNING MATERIAL (SLM)


Section 22 of the Act mandates that not less than half of the members of the trade union should be employed in the industry or work with which the trade union is connected. For example trade union is made for the welfare of the agricultural labourers then, as per this Section half of the members of such a trade union should be employed in agricultural activities. Section 23: Change of name Section 23 states that any registered union is free to change its name provided it does so with the consent of not less than 2/3rd of its members and subject to the fulfilment of the conditions laid down in Section 25 of the Act. Section 24: Amalgamation of Trade Unions Section 24 lays down that two or more trade unions can join together and form one trade union with or without dissolution or division of the fund. Such amalgamation can take place only when voting by half of the members of each trade union has been effectuated and that sixty per cent of the casted votes should be in favour of the proposal. Section 25: Notice of change of name or amalgamation Section 25 of the Act provides that: A notice in writing of every change of name and of every amalgamation which is duly signed by the Secretary and by seven members of the Trade Union changing its name, and, in the case of an amalgamation, by the Secretary and by seven members of each and every Trade Union which is a party thereto, should be sent to the Registrar. If the Registrar feels that the proposed name is identical with the name of any other existing Trade Union or, it so nearly resembles such name as it is likely to deceive the public or the members of either Trade Union, the Registrar may refuse to register the change of name. If the Registrar of the State in which the head office of the amalgamated Trade Union is situated is satisfied that the provisions of this Act have complied with the amalgamation shall be given effect from the date of such registration. Section 27: Dissolution Section 27 of the Act talks about the dissolution of a firm as follows: If a registered trade union has been dissolved, a notice of such dissolution which must be signed by seven members and by the Secretary of the Trade Union should be served to the registrar within 14 days of such dissolution and if the registrar is satisfied that the dissolution has been effected in accordance with the rules laid down by the trade union may register the dissolution. Where a union has been dissolved but its rules do not lay down the way in which the fund is to be distributed after its dissolution, the registrar may distribute the funds in any prescribed manner. Section 28 : Returns Section 28 provides that each trade union should send the returns to the registrar annually on or before such a day as may be prescribed by the registrar. The return includes: General statement 38 CU IDOL SELF LEARNING MATERIAL (SLM)


Audit report All the receipts and expenditure incurred by the trade union Assets and liabilities of the firm on the 31st day of December Sub-Section 2 of the Section provides that along with the general statement a copy of the rules of the trade union corrected up to the date of dispatch thereof and a statement indicating all the changes made by the union in the year to which the statement is referred to be sent to the registrar. Whenever any registered trade union alters its rules, such alterations should be conveyed to the registrar in a period of not less than 15 days from making such alterations. Regulations Section 29 to Section 30 of Chapter 4 of the Act lays down the regulations which shall be imposed on the trade union. Section 29: Power to make regulations Section 29 of the Act confers the right on the appropriate government to make provisions in order to ensure that the provisions of the Act are fairly executed. Such regulations may provide for any or all of the matters, which are as follows: The manner in which a trade union or its rules shall be registered; The manner in which the registration of a trade union has to be transferred which has changed its head office; The manner of appointment and qualification of the person who shall audit the accounts of the registered trade union; Circumstances under which the documents kept by the registrar shall be allowed to be inspected and also the fees that shall be levied in lieu of the inspection so made. Section 30: Publication of Regulations Section 30 states that: The power of making regulations conferred to the government is subject to the condition that such regulation has been made after the previous publication.; The date from which the regulation shall be given effect shall be specified in accordance with clause (3) of Section 23 of the General Clauses Act, 1897, and the date should not be less than three months from the date on which the draft of the proposed regulations was published for general information; The regulations which are made must be specified in the official gazette of India and it shall have the effect of an enacted law. Penalties and Procedure Section 31 to Section 33 of the Trade Union Act lays down the penalties and the procedure of its application upon a trade union which is subject to such penalty. Section 31: Failure to submit returns Section 31 states that: 39 CU IDOL SELF LEARNING MATERIAL (SLM)


If any trade union was required to send any notice, statement or any document to the registrar under the Act and if the rule did not prescribe a particular person in the union to provide such information then in case of default each member of the executive shall be imposed with the fine extendible to five rupees. In case of continuing default, the fine may be extended to five rupees a week. If any person willfully makes or causes to be made any false entry or omission in the general statement required under Section 28 of the Act shall be punishable with fine extendible to 500 rupees. Section 32: Supplying false information regarding Trade Unions Article 32 states, the following: Any person who in order to deceive a member of any trade union or any other person who purports to be the part of the trade union, Gives a copy of the document with the pretext of it containing the rules of a trade union. Which he knows or has reason to believe that it is not a correct copy of such rules and alteration and, Any person with the like intent give the copy of any document purporting it to be a copy of the rules of a registered trade union which in reality is an unregistered union, Shall be imposed with fine which may extend to two hundred rupees. Section 33 : Cognizance of offences Section 33 contains the provisions with respect to the cognizance of offence. It says that no court which is inferior to presidency magistrate or magistrate of the first class shall try an offence under the Act. courts can take cognizance of the offences under the Act only in the following cases: When the complaint has been made with the previous sanction of the registrar When a person has been accused under Section 32 of the Act, he shall be tried within six months of the commission of the alleged offence. 3.6 SUMMARY  Trade Union Act of 1926 is welfare legislation that has been enacted to protect the workers in the organized and unorganized sector from inhuman treatment and protection of their human rights. As such the legislation contains the provisions for registration, regulation, benefits, and protection for trade unions. Thereby, benefitting the workers.  Trade unions are important organs for the democratic development of any country as it puts up the needs and demands of the workers by collective bargaining. Collective bargaining is an important aspect of the employer-employee relationship.  However, collective bargaining is not provided to all the trade unions but is only provided to those trade unions which are recognized. Therefore, the demand for 40 CU IDOL SELF LEARNING MATERIAL (SLM)


mandatory recognition of trade union which has not been provided under the Trade Union Act 1926 has been raised time and again by the workers.  Today, the growth of media has resulted in the empowerment of trade unions and they have turned into influential pressure groups not only in industrial sectors but also in agricultural and other allied sectors. 3.6 KEYWORDS  \"prescribed\" means prescribed by regulations made under this Act;  \"registered office\" means that office of a Trade Union which is registered under this Act as the head office thereof;  \"registered Trade Union\" means a Trade Union registered under this Act;  \"Registrar\" means-- (i) a Registrar of Trade Unions appointed by the appropriate Government under section 3, and includes any Additional or Deputy Registrar of Trade Unions; and (ii) in relation to any Trade Union, the Registrar appointed for the State in which the head or registered office, as the case may be, of the Trade Union is situated  \"trade dispute\" means any dispute between employers and workmen or between workmen and workmen, or between employers and employers which is connected with the employment or non-employment, or the terms of employment or the conditions of labour, of any person, and \"workmen\" means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises; and  \"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, and includes any federation of two or more Trade Unions: Provided that this Act shall not affect-- (i) any agreement between partners as to their own business; (ii) any agreement between an employer and those employed by him as to such employment; or Appointment of Registrars.  Appointment of Registrars.- 1*[(1)] 2*[The appropriate Government] shall appoint a person to be the Registrar of Trade Unions for 3*[each State]. 4*[(2) The appropriate Government may appoint as many Additional and Deputy Registrars of Trade Unions as it thinks fit for the purpose of exercising and discharging, under the superintendence and direction of the Registrar, such powers and functions of the Registrar under this Act as it may, by order, specify and define the local limits within which any such 41 CU IDOL SELF LEARNING MATERIAL (SLM)


Additional or Deputy Registrar shall exercise and discharge the powers and functions so specified. (3) Subject to the provisions of any order under sub-section (2), where an Additional or Deputy Registrar exercises and discharges the powers and functions of a Registrar in an area within which the registered office of a Trade Union is situated, the Additional or Deputy Registrar shall be deemed to be the Registrar in relation to the Trade Union for the purposes of this Act.] Incorporation of registered Trade Unions.  Incorporation of registered Trade Unions.- Every registered Trade Union shall be a body corporate by the name under which it is registered, and shall have perpetual succession and a common seal with power to acquire and hold both movable and immovable property and to contract, and shall by the said name sue and be sued. 3.7LEARNING ACTIVITY 1. What are the objectives of Trade Unions. 42 2. Explain the Functions of Trade Unions 3. What are the problems faced by Indian Trade Unions 4. How does Leadership effect Trade unions in India 5. How does Financial Troubles effect Trade Unions in India 3.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions: 1. How does Multiplicity of Unions effect Trade Unions in India? 2. Explain the Intra Union Rivalry 3. How does Politicization effect Trade Unions in India? 4. Write a note on the History of Trade Unionism in India 5. Write a note on Development of Trade Union in India. 6. Note on Indian Trade union (Amendment) Act, 1947. 7. How does Registration of Trade Unions take place? Long Questions: 1. Write a note on Modes of Registration. CU IDOL SELF LEARNING MATERIAL (SLM)


2. Write a note on Appeals 3. Write a note on Incorporation of Registered Trade Unions 4. ON which Objects are General Funds spent? 5. Write a note on Constitution of a separate Fund for Political purposes 6. Write a note on Rights of Minors to membership of Trade Union. 7. Write a note on Amalgamation of Trade Union 8. Write a note on Dissolution of Trade Union. B. Multiple Choice Questions 1. The Trade Unions Act came into operation from ____. a. 1st June, 1927 b. 1st May, 1926 c. 1st June, 1926 d. None of the above 2. In which year's amendment of the act was the word ‘Indian― removed? a. 1947 b. 1960 c. 1964 d. 1962 3. The act came into force from ______. a. 1st June, 1927 b. 1st April, 1965 c. 1st May, 1960 d. 1st April, 1962 4. What is the minimum number of trade union members requires in registering themselves as a union? a. 7 b. 10 c. 5 d. 15 43 CU IDOL SELF LEARNING MATERIAL (SLM)


5. Which act in Industrial Relations defines the term trade union? a. Industrial Trade Resolution, 1962 b. Industrial Policy, 1991 c. The trade union and labour relations (consolidation) Act, 1992 d. The industrial Employment Act, 1946 Answers 1-a, 2-c, 3-b, 4-a, 5-c 3.8 REFERENCES  B.P. Guha: Wage Movement in Indian Industries: As Reflected in Collective Bargaining Agreements.  Bare Act: Trade Unions Act, 1926 along with Central Trade Unions Regulations, 1938. – Universal Law Publishing  Justice P.S. Narayana: The Trade Unions Act, 1926  https://indiankanoon.org/doc/1903729/  https://indiankanoon.org/doc/1897847/  http://www.nishithdesai.com/fileadmin/user_upload/pdfs/Research%20Papers/India-Trade- Unions-and-Collective-Bargaining.pdf  https://study.com/academy/lesson/what-is-collective-bargaining-definition-process- quiz.html 44 CU IDOL SELF LEARNING MATERIAL (SLM)


UNIT – 4 INDUSTRIAL DISPUTES STRUCTURE 4.0 Learning Objectives 4.1 Introduction 4.2 Meaning 4.3 Nature and causes of Industrial Dispute 4.4 Summary 4.5 Keywords 4.6 Learning Activity 4.7 Unit End Questions 4.8 References 4.0 LEARNING OBJECTIVE After the end of this unit you will learn about:  The meaning of Industrial Dispute  Understand the nature of Industrial Dispute  Learn about the causes of Industrial dispute. 4.1 INTRODUCTION Industrialization in a country has always contributed to employment, contribution to national income, per capita income, exports and economic development on one side and industrial disputes on the other. It has always been the case of mixed blessing. The conflict of interest between management and labour is what leads to industrial disputes. The management has a goal of profit maximization and on the other hand the workers expect rise in income, security of job, protection o f their skills, improvement in their status and in the working conditions. Those who control the factors of production require strict administration, closer supervision, and maintenance of strict discipline and implementation o f rules, code of conduct and code of discipline. Whereas the workers demand a share in capital, voice in management, freedom of expression, participation in management and dignity of employees. So the people that control the factors of production and people that produce always have different or conflicting interest which gives birth to industrial disputes. According to the Industrial Dispute Act, 1947. Section 2 (K) “Industrial Disputes mean any dispute or difference between employers 45 CU IDOL SELF LEARNING MATERIAL (SLM)


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”. 4.2 MEANING According to the Industrial Dispute Act, 1947. Section 2 (K) “Industrial Disputes mean 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 can be classified into four major types, known as interest disputes, grievance disputes, unfair labour practices disputes and recognition disputes. INDUSTRIAL DISPUTES Interest Disputes Grievance Disputes OR Rights Disputes Unfair Labour Practices Disputes Recognition Disputes 98 Interest disputes are also called disputes of interest or economic disputes. In most cases the disputes arises from the demands or proposals for improvement in wages, benefits, job security or terms or conditions of employment. Interest disputes must be properly negotiated or bargained or compromised and test of economic power should be avoided as far as possible. These disputes should be settled through conciliation as far as possible. Grievance or Rights Disputes are also called as conflict o f rights or legal disputes. These disputes take place from day to day working relations in the undertaking. It is a protest by the workers against the act of management that deprives the rights of the employees. The grievance disputes arises out of payment of wages, fringe benefits, working hours, over time, promotions, demotions, seniority, safety, and health related aspects. If grievance dispute as are not sorted out in accordance with a procedure that is accepted by the parties it often results in disturbing the working relationship between the management and employees. The government also encourages voluntary arbitration for this type of dispute settlement. The most common Labour type of dispute is the disputes over Unfair Practices in industrial relations. The management many times discriminates against workers on the ground that they are the members of the trade union and they participate in the activities of the union. Unfair labour practice includes pressure on employees when they exercise their rights to organize, take part in union activity, refusal to bargain, recruiting new employees during a strike which is not illegal, creating an environment or actually creating an act of force or violence or stop communication etc. Such disputes can be settled through conciliation or such disputes are settled according to the normal procedure laid down under the Industrial Disputes Act 1947. Recognition Disputes arises when the management of an organisation refuses to recognize a trade union for the purpose o f collective bargaining or to represent its member employees in case of a conflict or dispute. When the management dislike a particular union it reftises to accept that trade union for the purpose of negotiations or bargaining and then it becomes a case of trade union victimization. This also happens 99 when there is already an existing trade union or it is a 46 CU IDOL SELF LEARNING MATERIAL (SLM)


case of multiple trade unions and each making a claim for recognition. Recognition Disputes also arises when a particular trade union does not have sufficient representatives. Recognition disputes are settled through the guidelines given by the government for recognition o f trade union or with the help of Code of Discipline which has been voluntarily laid down by the government. 4.3 NATURE AND CAUSES OF INDUSTRIAL DISPUTE Industrial disputes are a common feature of all industrialized economies, whether it is a capitalist economy or socialist economy or mixed economy. Industry and industrial dispute always go hand in hand infact they are the two sides of the same coin. The employees who give their services and time to the industry are interested in higher wages, good working conditions and want to have a voice in management. The employers on the other hand are more interested in profits, productivity, quality and control of cost. With both these forces acting in opposite direction there is a maximum possibility of disputes and so industrial disputes has become a major feature of industrialization. Industrial disputes may arise out of economic, political, social or from socio - economic background. At the same time the attitude of the employers and employees is also responsible to a great extent. The factors leading to industrial disputes may be industry related, management related, government related or union related. The most common causes of industrial disputes can be listed as: 1. Wages and Allowances 2. Personnel Policies 3. Retrenchment 4. Lay off 5. Leave and hours of work 6. Bonus 7. Indiscipline 8. Violence 9. Inter Union rivalry. 10. Non-implementation of awards or agreements 11. Non-fulfillment of demands 12. Workload 13. Work standards 14. Surplus labour 15. Working conditions 16. Change of manufacturing process 17. Violation of rules or codes 18. Shift working 19. Political motives 47 CU IDOL SELF LEARNING MATERIAL (SLM)


20. Closure or lockouts 21. Inability to communicate effectively 22. Refusal to recognize unions 23. Authoritarian or autocratic attitude of management. 24. Non-implementation of labour law. Whatever may be the reason for an industrial dispute what disturbs the most is the amount of loss to the nation. A developing country with pressure of population, per capita income, poor infrastructure and low standard of living cannot afford to have such out of proportion disputes and loss of mandays. The Indian Labour Year Book states that in the year 1998 the number of disputes in India in the public sector were 283 and in the private sector it was 814 that means in total there were 1,097 disputes. The numbers of mandays lost in the public sector were 7576000 and 14486000 in the private sector which means a total of 22062000 mandays were lost in a single year 1998. The magnitude of industrial disputes and mandays lost in public sector enterprises are less compared to the private sector. In many cases there is no direct action and so the mandays are not lost but when trade unions adopt strategies like go slow, tools down, pen down, work to rule etc. productivity is lost. 4.6 SUMMARY  4.7 KEYWORDS 48  CU IDOL SELF LEARNING MATERIAL (SLM)


4.8 LEARNING ACTIVITY 49 1. 2. 4.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions Long Questions 1. B. Multiple Choice Questions 1. Answers 4.8 REFERENCES CU IDOL SELF LEARNING MATERIAL (SLM)


UNIT – 5 THE INDUSTRIAL DISPUTES ACT, 1947 STRUCTURE 5.0 Learning Objectives 5.1 Introduction 5.2 Meaning 5.3 Objectives 5.4 Summary 5.5 Keywords 5.6 Learning Activity 5.7 Unit End Questions 5.8 References 5.0 LEARNING OBJECTIVE At the end of this unit you will learn about:  The meaning of Industrial dispute  Understand the objectives of Industrial dispute. 5.1 INTRODUCTION Industrial Disputes Act, 1947 is the Act that regulates the labour laws as it concerns all the workmen or all the people employed on the Indian mainland. It came into force on 1 April 1947. The capitalists or the employer and the workers always had a difference of opinion and thus, it leads to lots of conflicts among and within both of these groups. So, these issues were brought to the attention of the government and so they decided to pass this Act. This Act was formed with the main objective of bringing peace and harmony to industrial disputes between parties and solving their issues in a peaceful manner. 5.2 MEANING Definition of Industrial Dispute Industrial dispute implies any distinction of conclusion, contest, injury between the business and the representatives, or between the laborers and bosses, or between the labourers or 50 CU IDOL SELF LEARNING MATERIAL (SLM)


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